India Nippon Electricals Limited · NSE:INDNIPPON
India Nippon Electricals — Investor Presentation (March 2024)
40 slides from India Nippon Electricals's investor presentation, Mar 20, 2024
Slide 1: Cover letter to stock exchanges
March 20, 2024 National Stock Exchange of India Limited BSE Limited th Exchange Plaza, 5 Floor, Plot no C 1, Phiroze Jeejeebhoy Towers G Block, IFB Centre, Bandra Kurla Complex, Dalal Street Bandra (East), Mumbai - 400051 Mumbai - 400 001 Scrip: INDNIPPON Scrip: 532240 Sub: Investor Presentation Dea
Slide 2: Investor Presentation March 2024
I N V E S TO R P R E S E N TAT I O N March 2024
Slide 3: Table of Contents
TABLE OF CONTENTS Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 2 INVESTOR PRESENTATION
Slide 4: Snapshot
SNAPSHOT 39 Years 3 1 Tier 1 1,605+ Of State of the Supplier to Major Employees Experience Manufacturing Art Research Auto OEM’s Plants Center 11.08% 30%+ Debt Free INR 1,208 Cr Consistent 3 Year Revenue Dividend Payout CAGR Market Cap* track record * As on Dec 31, 2023 3 INVESTOR PRESENTATION
Slide 5: Company Overview
COMPANY OVERVIEW § India Nippon Electricals Limited (INEL) was incorporated in 1984 and converted into a joint venture in 1986 Revenue (INR Mn) & EBITDA Margins (INR Mn) between Lucas Indian Service Limited, a wholly-owned subsidiary of Lucas-TVS Limited, and MAHLE Electric Drives Japan Corporation,
Slide 6: Company Overview
Company Overview
Slide 7: Journey
JOURNEY 1984-1988 1989-1993 1994-1998 1999-2003 2004-2008 2009-2013 2014-2018 2018-2023 2023 • Incorporation of • Introduction of • Export of ignition • Supply of Ignition Commencement of Expanded into onwards • Supply of FWM & RR • • Started supplies • the Company electronic ignition coils to Japan
Slide 8: Eminent Leadership
EMINENT LEADERSHIP Mr. T.K Balaji Mr. Arvind Balaji - Chairman - Managing Director § Mr. Arvind Balaji, (DIN 00557711), was appointed as director of the § Mr. T. K. Balaji, (DIN 00002010), was appointed as a Director on the Board of the Company w.e.f 25th October, 2008 and was inducted on the board
Slide 9: Board of Directors and Key Management Personnel
BOARD OF DIRECTORS AND KEY MANAGEMENT PERSONNEL Managing Independent Non- Executive Chairman Director Directors Directors TK Balaji Arvind Balaji § Heramb Ravindra Hajarnavis Priyamvada Balaji § Anant Jaivant Talaulicar § Gangapriya Chakraverti Company Chief Technical Chief Financial Secretary and P
Slide 10: World-Class Manufacturing Facilities
WORLD-CLASS MANUFACTURING FACILITIES 9 INVESTOR PRESENTATION
Slide 11: Strong Internal State-of-the-Art R&D Facilities & Infrastructure
ASSISTED BY STRONG INTERNAL STATE-OF-THE-ART R&D FACILITIES & INFRASTRUCTURE • Today’s technology advances call for constant innovation and manufacture of products of high quality and reliability at competitive prices. • Realizing this dictum, INEL has invested substantially in equipping its R&D to
Slide 12: Key Clientele
KEY CLIENTELE *Logos are meant for representative purposes only 11 INVESTOR PRESENTATION
Slide 13: Geographical Presence
GEOGRAPHICAL PRESENCE INDIA § USA § ITALY FY23 Geographical Revenue Breakup § CHINA § SLOVENIA 6% § TURKEY § VIETNAM § THAILAND § JAPAN § NEPAL § SRI LANKA § BANGLADESH 94% § AFRICA Domestic Export 12 INVESTOR PRESENTATION
Slide 14: Business Overview
Business Overview
Slide 15: Product Portfolio
PRODUCT PORTFOLIO Electronic Ignition Controllers Sensors Electric Vehicles After Market System It is a modern automotive It refers to the various It is the collection of various Recently established world-class A dedicated team is focusing on ignition system that replaces the electronic control uni
Slide 16: Electronic Ignition System
ELECTRONIC IGNITION SYSTEM Regulator & Rectifier/ AC Generator/ Flywheel Magneto Ignition Module Power Boost Regulator Flywheel Magneto is an electrical machine with Regulator Rectifier plays a crucial role to rectify and Ignition Coil is an induction coil in an automobile's permanent magnet rotor c
Slide 17: Controllers
CONTROLLERS ISG Controller EGR Controller EFI ECU It plays a central role in managing the Exhaust Gas Recirculation controller, is It is responsible for managing various operation of the Integrated Starter a component in a vehicle's engine aspects of the engine's operation, Generator system, which c
Slide 18: Sensors
SENSORS Speed Sensor Temperature Sensor Throttle Position Sensor Oil Lever Sensor Differential Sensor TMAP Sensor Steering Angle Sensor RPAS Ultrasonic Sensor Tire Pressure Monitoring Sensor 17 INVESTOR PRESENTATION
Slide 19: 2W Electric Vehicles
2W ELECTRIC VEHICLES Traction Motor Traction motors are powered by electricity and generate the power to rotate the wheels. Traction motors are typically mounted in the trucks where the wheels are housed. Cluster Motor Controller It refers to the instrument cluster or dashboard panel found on a two-
Slide 20: After Market Sales
After Market Sales Currently After Market Sales contribute to around 10% of overall Sales with a target to reach 15% levels by FY25 800 700 600 GR + 24% CA 500 400 694 300 549 200 381 261 100 0 FY20 FY21 FY22 FY23 Sales in Mn 19 INVESTOR PRESENTATION
Slide 21: Strategic Overview
Strategic Overview
Slide 22: Industry Vs INEL Performance Over Years
Industry Vs INEL Performance Over Years Highly volatile Situation : BS4 → BS6 Change over ISG Migration Despite all challenges INEL has outgrown OBD1 & OBD 2 regulatory changes the Industry in last 5 years Covid pandemic Industry [ICE] Vs INEL Growth High EV promotions 16% 17% 17% 7% 9% 8% Highly vo
Slide 23: ISG System Growth
ISG System Growth ISG System share [On Overall Sales] 5% 7% 10% 10% 15% 18/19 19/20 20/21 21/22 22/23 Others ISG ISG System share increased from 5% à 15% in last 4 Years 22 INVESTOR PRESENTATION
Slide 24: Industry Growth Vs INEL Sales
Industry Growth Vs INEL Sales [FY 22/23: H1 - Qty] (2%) 2% 4% 21% 0% H1-FY23 7.11 Mn 2.91 Mn 0.23 Mn 0.48 Mn 10.7 Mn H1- 7.28 Mn 2.84 Mn 0.22 Mn 0.39 Mn 10.7 Mn Industry FY22 (2%) 2% 7% 30% 2% H1-FY23 1.78 Mn 0.71 Mn 0.23 Mn 0.15 Mn 2.87 Mn 1.81 Mn 0.70 Mn 0.20 Mn 0.11 Mn 2.83 Mn INEL H1- FY22 Indus
Slide 25: Key Customers – Market Share
Key Customers – Market share Key Customers considered 16.8 14.3 12.9 12.8 12.4 5.6 5.3 5.1 4.9 4.8 Share Share Share Share Share 35% 38% 41% 33% 39% 2018-19 2019-20 2020-21 2021-22 2022-23 Vehicle Production FWM Supply Market share for Key Customers increased from 33% to 41% in last 4 Years INVESTOR
Slide 26: Key Strengths
KEY STRENGTHS Strong Client base Thrust On Technology Organizational Agility Offers wide range of Strong Customer Focus Stringent Manufacturing Practices Value Addition products 25 INVESTOR PRESENTATION
Slide 27: Future Growth Strategies
FUTURE GROWTH STRATEGIES Capitalizing on Core Business Advancing Aftermarket Business Focused on exploiting the opportunities presented within core A dedicated team and several measures are taken to strengthen product business by introducing new products for two & three-wheelers. range and distribut
Slide 28: Environmental, Social and Governance Principles: E
Environmental, Social and Governance Principles E INEL’s dedication lies in practicing responsible waste management and tracking chemical usage. Their objective is to mitigate their ecological footprint by implementing a robust waste management approach that curtails waste production, encourages rec
Slide 29: Environmental, Social and Governance Principles: S
Environmental, Social and Governance Principles S Employee engagement is a cornerstone of success at As a responsible and caring organization, INEL INEL, to foster a dynamic and motivated workforce. With ensures a safe and conducive working environment a deep commitment to creating a positive and nu
Slide 30: Environmental, Social and Governance Principles: G
Environmental, Social and Governance Principles G INEL firmly believes in the importance of strong governance as a cornerstone of its corporate identity. With a commitment to transparency, accountability, and ethical conduct, they have set the bar high for corporate governance standards in the indus
Slide 31: Industry Overview
Industry Overview
Slide 32: Auto-Component Sector
AUTO-COMPONENT SECTOR • The Indian auto-components industry is set to become • Ignition System Market is estimated to grow at 8% the third-largest in the world by 2025. CAGR to reach USD 16.4 Bn by 2029 over the next 5 • Auto-components industry accounts for 2.3% of India’s years GDP. Indian auto-co
Slide 33: Industry Projection {2&3W}
Industry Projection {2&3W} Industry Growth [2&3 Wheeler] Actuals Plan E-Vehicle Penetration +12% +4% +4% +4% +3% +2% 25.0 24.4 23.8 25.8 22.9 21.1 22.0 18.9 EV ICE 18/19 21/22 22/23 23/24 24/25 25/26 26/27 27/28 EV -- 0.43 1.16 1.71 2.33 3.49 4.67 6.06 ICE 25.78 18.46 19.95 20.33 20.62 20.27 19.74 1
Slide 34: Financial Overview
Financial Overview
Slide 35: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR in Mn) FY20 FY21 FY22 FY23 9M-FY24 Revenue from Operations 4,788 4,812 5,663 6,563 5,284 Operating Expenses 4,219 4,349 5,166 5,985 4,836 EBITDA 569 463 497 578 448 EBITDA Margins (%) 11.87% 9.63% 8.78% 8.81% 8.48% Depreciation 94 103 129 146 113 Financ
Slide 36: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (INR Mn) FY21 FY22 FY23 H1-FY24 Particulars (INR Mn) FY21 FY22 FY23 H1-FY24 EQUITY AND LIABILITIES ASSETS Equity Share Capital 113 113 113 113 Non-Current Assets Other Equity 4,397 4,939 5,490 5,756 Property, Plant and Equipment 715 1,163 1,211 1,243 Right-of-u
Slide 37: Financial Graphs
FINANCIAL GRAPHS Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 6,563 543 5,663 569 578 503 482 5,284 4,788 4,812 497 389 463 448 396 11.34% 8.23% 8.88% 11.87% 7.34% 7.37% 9.63% 8.78% 8.81% 8.48% FY20 FY21 FY22 FY23 9M-FY24 FY20 FY21 FY22 FY23 9M-FY24 FY20 FY21 FY
Slide 38: Capital Market Data
CAPITAL MARKET DATA 1 Year Stock Performance (up to 31st December, 2023) Dividend Payout (%) 50% 36.7% 40% 30% 35.1% 20% 10% 33.3% 33.3% 0% -10% 32.0% -20% -30% Jan/23 Feb/23 Mar/23 Apr/23 May/23 Jun/23 Jul/23 Aug/23 Sep/23 Oct/23 Nov/23 Dec/23 Indian Nippon Electrcals Limited Sensex FY19 FY20 FY21
Slide 39: Disclaimer
DISCLAIMER India Nippon Electricals Limited (INEL Disclaimer) No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and
Slide 40: Thank You
Thank You
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