Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Q2 FY25 Earnings Presentation
35 slides from Escorts Kubota's earnings presentation, Nov 7, 2024
Slide 1: Intimation of Earning Presentation to stock exchanges
November 07, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra East, Mumbai – 400051 BSE – 500495 NSE - ESCORTS Sub: Intimation of Earning Presentation Dear Sir/ Ma’am, Please find enclosed
Slide 2: Q2 FY25 Earning Presentation
Q2 FY25 | EARNING PRESENTATION 7th November 2024 BSE: 500495 | NSE: ESCORTS 07-11-2024 Escorts Kubota Limited 1
Slide 3: Contents
CONTENTS 01 02 03 04 Company Q2 Standalone H1 Standalone Segment Wise Overview Highlights Highlights Performance 05 06 07 Shareholding Q2/H1 Annexure & Pattern Consolidated Narrations Highlights 07-11-2024 Escorts Kubota Limited 2
Slide 4: Please Note
Please Note The National Company Law Tribunal, Chandigarh Bench (NCLT) has approved the Scheme of Amalgamation of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited (Amalgamating Companies) with Escorts Kubota Limited (Amalgamated Company). The certified cop
Slide 5: Escorts Kubota Limited: Overview
Escorts Kubota Limited: Overview (Formerly Escorts Limited) Bringing World's best to India and offering India's best to the world Spreading Prosperity, Impacting Lives. 07-11-2024 Escorts Kubota Limited 4
Slide 6: Q2 Standalone Highlights – Q2FY25 YoY
Q2 Standalone Highlights – Q2FY25 YoY Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume 0.7% 0.3% -0.4% Export Tractor Volume -5.2% -20.9% -15.7% Total Tractor Volume 0.0% -0.9% -1.0% PNC Volume -17.7% -18.6% -0.9% BHL Volume 2.3% -12.1% -14.3% Mini Excavator -1.6% -12.1% -10.5
Slide 7: Q2 Standalone Highlights – EKL at a Glance
Q2 Standalone Highlights –EKL at a Glance 25,995 1,394 ₹ 211.2 Crore Tractors Volumes Construction Equipment’s Volume Revenue from Railway Equipment -0.9% -14.4% -18.4% 0.9% -9.9% -13.7% (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) ₹ 2,476.2 Crore ₹ 267.6 Crore ₹ 326.7 Crore Revenue from operatio
Slide 8: Q2 Standalone Highlights – P&L at a Glance
Q2 Standalone Highlights – P&L at a Glance YoY QoQ Particulars Unit Q2FY25 Q2FY24 Q1FY25 (Change) (Change) Revenue from Operations ₹ Cr. 2,476.2 2,464.6 2,801.0 0.5% -11.6% Material Cost % 69.2 69.9 70.1 -70 bps -90 bps Manpower Cost % 8.1 7.9 6.7 27 bps 145 bps EBIDTA ₹ Cr. 267.6 266.7 369.4 0.3% -
Slide 9: Segmental Revenue Contribution
Segmental Revenue Contribution 9% 9% 9% 15% 13% 18% Q2FY25 Q2FY24 Q1FY25 73% 76% 78% XX% Segmental Contribution to total Operating revenue 07-11-2024 Escorts Kubota Limited 8
Slide 10: Q2 - YoY Revenue up by 0.5%; EBIT up by 5.6%
Q2 - YoY Revenue up by 0.5%; EBIT up by 5.6% ₹ Cr. Revenue Revenue Key Highlights • Tractor Sales down by 0.9% at 25,995 units • Construction Equipment Sales down by 18.4% at 1,394 units • Railway Equipment revenue down by 9.9% at ₹ 211.2 Crore. CE E n lloc te ncre se ecre se ot l EBIT ₹ Cr. EBIT Ke
Slide 11: Q2 - QoQ Revenue down by 11.6%; EBIT down by 22.2%
Q2 - QoQ Revenue down by 11.6%; EBIT down by 22.2% ₹ Cr. Revenue Revenue Key Highlights • Tractor Sales down by 14.4% at 25,995 units • Construction Equipment Sales up by 0.9% at 1,394 units • Railway Equipment revenue down by 13.7% at ₹ 211.2 Crore. CE E n lloc te ncre se ecre se ot l EBIT ₹ Cr. EB
Slide 12: Q2FY25 Standalone Highlights – EKL at a Glance
Q2FY25 Standalone Highlights –EKL at a Glance ₹ 29.71 12.8% 13.1% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~73% ~68% More than ₹ 1,100 Crore Capacity Utilization Capacity Utilization Of Order Book* Tractors Construction Equipment Railway Equipment Divis
Slide 13: H1 Standalone Highlights – H1FY25 YoY
H1 Standalone Highlights – H1FY25 YoY Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume 0.6% -2.5% -3.1% Export Tractor Volume -1.8% -24.7% -22.9% Total Tractor Volume 0.3% -3.6% -4.0% PNC Volume -10.6% -10.4% 0.1% BHL Volume 1.7% -8.6% -10.3% Mini Excavator -7.8% -23.1% -15.3%
Slide 14: H1 Standalone Highlights – EKL at a Glance
H1 Standalone Highlights – EKL at a Glance 56,365 2,776 ₹ 455.9 Crore Tractors Volumes Construction Equipment’s Volume Revenue from Railway Equipment -3.6% -12.6% -14.3% ₹ 5,277.1 Crore ₹ 637.0 Crore ₹ 630.2 Crore Revenue From Operations EBIDTA Profit After Tax 0.2% 1.5% 23.9% Up YoY Down YoY Standa
Slide 15: H1 Standalone Highlights – P&L at a Glance
H1 Standalone Highlights – P&L at a Glance Particulars Unit H1FY25 H1FY24 Variance Revenue from Operations ₹ Cr. 5,277.1 5,266.8 0.2% Material Cost % 69.7 70.7 -102 bps Manpower Cost % 7.4 7.0 37 bps EBIDTA ₹ Cr. 637.0 627.3 1.5% EBIDTA Margin % 12.1 11.9 16 bps Other Income ₹ Cr. 217.8 186.1 17.0%
Slide 16: H1 - YoY Revenue up by 0.2%; EBIT up by 4.1%
H1 - YoY Revenue up by 0.2%; EBIT up by 4.1% ₹ Cr. Revenue (YoY) Revenue Key Highlights • Tractor Sales down by 3.6% to 56,365 units • Construction Equipment Sales down by 12.6% to 2,776 units • Railway Equipment revenue down by 14.3% at ₹ 455.9 Crore. CE E n lloc te ncre se ecre se ot l EBIT (YoY)
Slide 17: H1FY25 Standalone Highlights – EKL at a Glance
H1FY25 Standalone Highlights –EKL at a Glance ₹ 57.33 14.7% 12.7% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~67% ~62% More than ₹ 1,100 Crore Capacity Utilization Capacity Utilization Of Order Book* Tractors Construction Equipment Railway Equipment Divis
Slide 18: Segment Wise Performance
Segment Wise Performance 07-11-2024 Escorts Kubota Limited 17
Slide 19: Agri Machinery Products
Agri Machinery Products Tractor Business Non-Tractor Business Agri Solution Engine Spare Parts and Service Global Sourcing 07-11-2024 Escorts Kubota Limited 18
Slide 20: Agri Machinery Products
Agri Machinery Products Business Pre-Merger Post-Merger Tractor Business 2 Brands 3 Brands (89%) (83%) Agri Solutions Engine Agri Solutions Engine Global Sourcing for Spare Parts & Service Spare Parts & Service Non- (1 Brand) (1 Brand) (2 Brand) (2 Brand) Kubota Group Tractor (17%) Business (11%) Un
Slide 21: Tractor Industry
Tractor Industry Domestic Industry (in Lakhs) -19.7% QoQ 0.6% YoY 2.6 4.7 4.7 0.7% YoY 2.1 2.1 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Export Industry (in ‘000s) -5.2% YoY -1.8% YoY 25.9 50.1 49.1 -0.5% QoQ 24.6 24.5 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 rounded off to nearest single decimal Growth De-Growt
Slide 22: EKL Tractor Business
EKL Tractor Business 15. 0% 64,0 00 15. 0% 29,0 00 Domestic 29,409 -15.8% QoQ -2.5% YoY 55,587 54,0 00 54,177 14. 0% 14. 0% 0.3% YoY 24,768 24,0 00 24,690 44,0 00 13. 0% 13. 0% 19,0 00 34,0 00 11.8% 11.8% 12. 0% 11.8% 12. 0% 14,0 00 11.5% 11.2% 24,0 00 11. 0% 11. 0% 9,00 0 14,0 00 4,00 0 10. 0% 4,00
Slide 23: Agri Machinery Product Segment Performance Q2/H1FY25 Highlights
Agri Machinery Product Segment Performance Q2/H1FY25 Highlights YoY QoQ YoY Particulars Unit Q2FY25 (Change) (Change) H1FY25 (Change) Revenue ₹ Cr. 1,884.2 5.3% -13.2% 4,055.9 3.7% EBIT % 9.1% -15 bps -252 bps 10.5% -8 bps Capacity Utilization Tractors % ~73 ~67 ROCE (Annualized) % 21.7% 26.6% ➢ Exc
Slide 24: Construction Equipments
Construction Equipments 07-11-2024 Escorts Kubota Limited 23
Slide 25: Construction Equipment Business Performance
Construction Equipment Business Performance Served Industry Performance (000’s) -2.0% YoY -0.6% YoY 17.0 31.7 31.5 16.7 12.0% QoQ 14.9 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 EKL Construction Equipment Volumes -18.4% YoY 3,30 0 1,709 3,175 3,10 0 0.9% QoQ 2,90 0 -12.6% YoY 1,382 1,394 2,776 2,70 0 2,50 0
Slide 26: Construction Equipments Performance – Q2/H1FY25 Highlights
Construction Equipments Performance – Q2/H1FY25 Highlights YoY QoQ YoY Particulars (EKL) Unit Q2FY25 (Change) (Change) H1FY25 (Change) PNC SOM % 39.9% -45 bps 45 bps 39.7% 5 bps% Mini Excavator SOM % 17.0% -204 bps 453 bps 15.2% -303 bps Compactor SOM % 3.6% -244 bps -55 bps 3.9% -13 bps BHL SOM % 1
Slide 27: Railway Equipments Mobility Solutions
Railway Equipments Mobility Solutions Of the future ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 07-11-2024 Escorts Kubota Limited 26
Slide 28: Railway Equipments Performance - Q2/H1FY25 Highlights
Railway Equipments Performance - Q2/H1FY25 Highlights YoY QoQ YoY Particulars (EKL) Unit Q2FY25 (Change) (Change) H1FY25 (Change) Revenue ₹ Cr. 211.2 -9.9% -13.7% 455.9 -14.3% EBIT % 15.2% -323 bps -524 bps 18.0% -180 bps Order Book ₹ Cr. ~1,100 ~1,100 ROCE (Annualized) % 38.6% 48.9% On 23rd October
Slide 29: Shareholding Pattern
Shareholding Pattern Shareholding Trend in % Sept'2023 Dec'2023 Mar'2024 June'2024 Sept'2024 Promoters 67.64 67.64 67.64 67.64 68.04 Institutions# 16.03 15.55 15.61 16.81 16.54 Public 14.41 14.91 14.89 13.82 13.73 Non-Promoter Non-Public 1.92 1.90 1.86 1.73 1.70 Total 100.00 100.00 100.00 100.00 100
Slide 30: Q2 Consolidated Highlights – P&L at a Glance
Q2 Consolidated Highlights – P&L at a Glance YoY QoQ Particulars Unit Q2FY25 Q2FY24 Q1FY25 (Change) (Change) Revenue from Operations ₹ Cr. 2,488.5 2,477.7 2,818.4 0.4% -11.7% Material Cost % 69.2% 70.0% 70.1% -77 bps -92 bps Manpower Cost % 8.3% 7.9% 6.8% 33 bps 148 bps EBIDTA ₹ Cr. 264.7 264.2 367.
Slide 31: H1 Consolidated Highlights – P&L at a Glance
H1 Consolidated Highlights – P&L at a Glance YoY Particulars Unit H1FY25 H1FY24 (Change) Revenue from Operations ₹ Cr. 5,306.9 5,307.4 0.0% Material Cost % 69.7% 70.7% -104 bps Manpower Cost % 7.5% 7.0% 43 bps EBIDTA ₹ Cr. 632.4 628.9 0.6% EBIDTA Margin % 11.9% 11.8% 7 bps Other Income ₹ Cr. 219.1 1
Slide 32: ESG @ EKL
ESG @ EKL Increase Gender Carbon Neutral by Diversity 2050 Maintain Highest Net Water Positive Governance Standard by 2030 Zero Landfill Rely More on Waste by 2027 Renewable Energy Escorts Kubota Limited
Slide 33: Narrations
Narrations • EKL - Escorts Kubota Limited • AG – Agri Machinery Products • FY – Fiscal Year represents the 12 months period from 1st • CE – Construction Equipment April to 31st March. • RED – Railway Equipment • Q2FY24 – Represents the 3 months period from 1st July • BHL – Backhoe Loader 2023 to 30t
Slide 34: Safe Harbor
Safe Harbor Certain statements in this document may include forward-looking comments and information concerning the comp ny’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors tha
Slide 35: Thank You
THANK YOU Contact Details Investor Relations Escorts Kubota Ltd. (CIN: L74899HR1944PLC039088) Corporate Centre 15/5 Mathura Road, Faridabad – 121003 Phone: +91 129 2250222 www.escortskubota.com Email - Investor.relation@escortskubota.com 07-11-2024 Escorts Kubota Limited 34