Jk Tyre & Industries Limited · NSE:JKTYRE
Jk Tyre & Industries — Q2 FY2024 Earnings Presentation
35 slides from Jk Tyre & Industries's earnings presentation, November 2023
Slide 1: Earnings Presentation - Q2FY24
Earnings Presentation - Q2FY24 EXCELERATION
Slide 2: Business Overview
K Business Overview
Slide 3: JK Tyre at a Glance
JK Tyre at a Glance Innovation at JK Tyre 40+ 19th Years of experience in tyre Ranked top tyre company manufacturing in the world ❖ Pioneer of radial technology in India and No. 1 in Truck/Bus Radial (TBR) manufacturer ❖ State-of-the-art Centralized Tech Centre at Mysore – 12 manufacturing facilitie
Slide 4: Global Manufacturing Platforms
Global Manufacturing Platforms India Annual Capacity by Product Line – Volumes in Million Kankroli, Laksar, Rajasthan – 1 Uttarakhand – 3 15.2 2.3 8.3 3.9 3.9 Banmore, Truck and Passenger 2/3 Wheeler Others Madhya Pradesh – 1 Bus Line Radial Radial Bias Mexico Mysuru, Karnataka – 3 Chennai, Hidalgo
Slide 5: Digital Marketing Initiatives
Digital Marketing Initiatives Social Media Content Marketing Google My Business 1 Consistent Social Media Presence 2 Content Oriented Digital Marketing No.1 Tyre Brand at Social Tyre Industry Highest no. of 600+ Brand Shops listed at Media in terms of Followers views at YouTube 77Mn+ Google My Busin
Slide 6: Extensive Distribution Network and Customer Connect
Extensive Distribution Network and Customer Connect Extensive Distribution Network India Distribution Network ❖ 6,000+ Dealers ❖ 500 Distributors 69 JK Tyres Truck 636 JK Tyre Steel 75 JK Re-tread ❖ Tie up with +1300 Fleet Operators Wheels & Xpress Wheels centres ❖ Tie up with 3 Oil Marketing Compan
Slide 7: Leadership Team
Leadership Team Dr. Raghupati Singhania Chairman & Managing Director Anshuman Singhania Arun K. Bajoria Anuj Kathuria A. K. Kinra Sanjeev Aggarwal V. K. Misra Managing Director Director & President – Int. President - India Financial Advisor CFO Technical Director Dr. R. Mukhopadhyay A. K. Makkar Sri
Slide 8: Strong R&D Capabilities
Strong R&D Capabilities Technology – Global Tech Centre (RPSCOE): • Centralized Tech Center in Mysore, Karnataka with more than 200 R&D and Technology Scientist and Engineers in following facilities: HASETRI - Asia's first and India’s foremost highly versatile and State-of-the-art Tyre / Elastomer I
Slide 9: Innovative Products Gaining Traction
Innovative Products Gaining Traction TBR - JUH XF & JDH XF Puncture Guard Tyre Levitas Ultra (UHP) ✓ Fuel Saver Technology Design ✓ Self-repair multiple punctures ✓ Utmost Comfort ✓ Low RRC & Low Noise ✓ Hassle-free ride throughout life ✓ Low Cabin Noise & high durability ✓ High Mileage ✓ Better Tra
Slide 10: Product Portfolio Differentiation
Product Portfolio Differentiation Smart Tyres Puncture Guard Tyres In 2019, Acquired smart tyre technology Company to revolutionize Indian tyre market – First in India to launch Tyre Pressure Monitoring System (TPMS) based on sensor technology Key Features and Benefits Reduces fuel bills by Enhances
Slide 11: Green Tyre – UX Green – Sustainable Tyre
Green Tyre – “UX Green” – Sustainable Tyre JK Tyre develops PCR Tyre with 80% sustainable, recycled & renewable material – “First Company to achieve this level” • Developed with highly sustainable materials like natural rubber, bio attributed SBR and BR, bio-based oil, recycled rubber powder, recove
Slide 12: Key Customers
Key Customers Passenger Car Tractor Truck & Bus OTR 2 Wheeler 2 Wheeler – Electric 11
Slide 13: Strengthening OEM Presence
Strengthening OEM Presence Gaining OEM footprint and volumes across segments 12
Slide 14: EV Tyres – Future Ready
EV Tyres – Future Ready JK Tyre unveils complete range of EV-specific smart radial tyres EV Tyres range Developed a complete range of electric vehicle (EV)-specific Smart radial tyres for all categories of trucks, buses, LCVs and passenger cars in India. Ensures ultra-low Improved wet and rolling re
Slide 15: Key Marketing Initiatives
Key Marketing Initiatives LEVITAS ULTRA (UHP TYRE) - Best in class ride quality & experience - Lowest cabin noise & high cornering stability - Shortest braking distance in dry & wet conditions - Speed Rating – W and Y with 5 star fuel savings Launch of “ The Levitas Ultra (Ultra High Performance) –
Slide 16: Brand Accolades
Brand Accolades Recognised for “ET ICONIC BRANDS OF INDIA 2022” Conferred “SUPER BRANDS 2023” 15
Slide 17: Revenue Segmentation : End User Market
Revenue Segmentation : End User Market Revenue Mix by Market – Consolidated Exports 17% Exports 20% OEMs Q2FY24 Q2FY23 Replacement Replacement 23% OEMs 60% 59% 21% Revenue Mix by Product Line – Consolidated Others Others 14% 13% 2/3 Wheelers 4% 2/3 Wheelers 4% Q2FY24 Q2FY23 Truck and Truck and Bus P
Slide 18: Q2FY24 & H1FY24 Performance Review
Q2FY24 & H1FY24 Performance Review
Slide 19: Q2FY24 Financial Performance Highlights
Q2FY24 Financial Performance Highlights Consolidated Standalone (Rs. Crore) y-o-y y-o-y Q2FY24 Q1FY24 Q2FY23 Q2FY24 Q1FY24 Q2FY23 change change Turnover 3,905 3,726 3,764 4% 2,684 2,463 2,418 11% EBITDA 597 465 305 96% 395 283 181 119% Margin 15.3% 12.5% 8.1% +718 bps 14.7% 11.5% 7.5% +725 bps PBDT
Slide 20: H1FY24 Financial Performance Highlights
H1FY24 Financial Performance Highlights Consolidated Standalone (Rs. Crore) H1FY24 H1FY23 % change H1FY24 H1FY23 % change Turnover 7,632 7,414 3% 5,146 4,757 8% EBITDA 1,063 597 78% 678 357 90% Margin 13.9% 8.0% 587 Bps 13.2% 7.5% 566 Bps PBDT (Cash Profit) 831 388 114% 552 244 126% PBT 619 131 4.7x
Slide 21: Q2FY24 & H1FY24 Performance Highlights
Q2FY24 & H1FY24 Performance Highlights Key Business Highlights Q2FY24 Consolidated Financial Performance 1. Top-line has been growing consistently and has recorded INR 3,905 Cr. INR 654 Cr. INR 597 Cr. consolidated net revenues of Rs.3,905 crore. Growth 4% Growth -15% Growth 96% 2. Domestic volumes
Slide 22: Debt Movement and Financial Metrics position
Debt Movement and Financial Metrics position 0 1 2 3 4 5 6 6,000 6.00 5,412 Significant reduction in 4,940 5,000 5.33 5.00 Net Debt in H1FY24 4,483 4,518 over FY23 4,087 4.45 4,000 4.00 Net Debt to EBIDTA 3,000 3.32 3.39 3.00 H1FY24 - 2.27x 2.23 FY23 – 3.39x 2,000 1.61 1.68 2.27 2.00 1.29 1.05 Net D
Slide 23: FY23 Financial Performance Highlights
FY23 Financial Performance Highlights Consolidated Standalone (Rs. Crore) FY23 FY22 % change FY23 FY22 % change Turnover 14,681 12,020 22% 9,649 8,062 20% EBITDA 1,334 1,110 20% 806 731 10% Margin 9.1% 9.2% (10) Bps 8.4% 9.1% (70) Bps PBDT (Cash Profit) 880 691 27% 549 501 10% PBT 411 309 33% 270 26
Slide 24: FY2023 Performance Highlights (Consolidated)
FY2023 Performance Highlights (Consolidated) Key Business Highlights Q4-FY23 Consolidated Financial Performance 1. Recorded high revenues of Rs.14,681 crore, driven by INR 3,645 Cr. INR 331 Cr. INR 389 Cr. Growth 10% Growth -28% Growth 65% strong domestic demand with buoyancy witnessed in OEM Revenu
Slide 25: Growth Strategy
Growth Strategy
Slide 26: Strategic Priorities
Strategic Priorities Management remains fully committed to implement its strategy to further expand its market presence and gain market share Strengthen Product Market Position Increase Global Deleverage Maximizing Portfolio across Business Balance Sheet Benefits of Premiumization Segments Share Acq
Slide 27: Sustainability
KX Sustainability
Slide 28: Sustainability at JK Tyre
Sustainability at JK Tyre We strengthened our ESG initiatives around 5P’s sustainability platform Productivity (Resource Conservation) People Peace & (Safety & Partnership Wellbeing) 5Ps Sustainability* Poverty Protect (Standard of (Environment) living) * Conceptualized by JK Tyre 27
Slide 29: JK Tyre secured 'Best in Class' rating on ESG performance - CareEdge
JK Tyre secured ‘Best in Class’ rating on ESG performance - CareEdge JK Tyre’s ESG performance is driven by strong commitment and performance on majority themes to ensure ESG integration. JK Tyre ESG Score Vs. Avg. Industry Score 78 65 Industry Average Industry Best - JK Tyre Environment (89) – Long
Slide 30: Sustainability Initiatives at JK Tyre
Sustainability Initiatives at JK Tyre Sustainability initiatives & practices leading to resource conservation and manufacturing excellence Research & ▪ Usage of Bio sourced materials Development Led ▪ Higher usage of recycled material Product ▪ Continuous improvement in RRC ( Rolling Resistance Coef
Slide 31: Sustainability – Environment
Sustainability – Environment Safety – Reportable Incident (Nos.) Energy Consumption (GJ / Tonne) 27 22 17 11.24 10.70 10.26 10.36 9.50 9.38 8.95 6 5 4 4 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 All Plants awarded with “Sword of H
Slide 32: Sustainability – Operational Efficiencies
Sustainability – Operational Efficiencies Specific Power Consumption – Kwh / Kg Recognitions to our efforts 0.937 0.894 0.863 0.874 0.810 0.802 “Among the India’s top 30 Most Sustainable 0.783 companies, organized by Business World” 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Reducing Po
Slide 33: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) Livelihood More than 1 lac people benefitted through our projects, viz., skill building, SHGs, agricultural & livestock Enhancement development etc. Adult literacy programs in remote villages (over 50,000 beneficiaries), Mysuru prisoners (over 6,000), Education
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by JK Tyre & Industries Limited (the “Company” or “JK Tyres”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distr
Slide 35: JK Tyre & Industries Ltd.
&K Skerry ree TOTAL CONTROL JK TYRE & INDUSTRIES LTD. HEAD OFFICE | REGISTERED OFFICE AND WORKS 3, Bahadur Shah Zafar Marg, | Jaykaygram, PO-Tyre Factory New Dethi-110002 | Kankroli - 313 342, Rajasthan T:491-11-66001112 « F: +91-11-23322059 | T: 02952-302400/330011 « F: 02952-232018 CIN:L67120RJ195
JK Tyre & Industries — Q2 FY2024 Earnings Presentation on 6ix