Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Q1 FY24 Earnings Presentation
32 slides from Escorts Kubota's earnings presentation, Aug 1, 2023
Slide 1: Intimation of Press Release and Earning Presentation
August 1, 2023 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 Press Release and Earning Presentation Dear Sir/ Ma’am, Please
Slide 2: Press release: Q1FY24 standalone profit up 91.8%
© Kiyhota Escorts Kubota Limited EKL Standalone Q1FY24 Profit up by 91.8% to = 282.8 Crore highest ever. (QIFY24 consolidated profit more than doubled to ¥ 289.9 Crore) e Tractor volumes at 26,582 units. e Construction Equipment volumes up by 42.1% at 1,373 units. e Standalone EBIDTA up by 62.2% at
Slide 3: Press release: management comments and segment performance
© Kubota Escorts Kubota Limited Speaking on the results, Chairman and Managing Director Mr. Nikhil Nanda said, “In the agri business, overall sentiments were mixed last quarter as markets with good rainfall and crop prices showed good momentum, and markets with a delayed monsoon had a slightly dampe
Slide 4: Press release: railway equipment and contact
€ Kuhota Escorts Kubota Limited by 658 bps to 7.6% as against 1.0% in the corresponding period last year and down by 52 bps against 8.1% in sequential quarter. Railway Equipments For the quarter ended June 2023, Railway Equipment’s Segment revenue went up by 71.8% to % 297.7 crore ever highest as ag
Slide 5: Q1 FY24 Earning Presentation
Q1 FY24 | EARNING PRESENTATION 1st August 2023 BSE: 500495 | NSE: ESCORTS 1-08-2023 Escorts Kubota Limited 1
Slide 6: Contents
CONTENTS 01 02 03 04 Company Q1FY24 Credit Rating & Management Overview Standalone Debt Profile Message Highlights 05 06 07 08 Segmental Shareholding Q1FY24 Annexure & Performance Pattern Consolidated Narrations Highlights 1-08-2023 Escorts Kubota Limited 2
Slide 7: Escorts Kubota Limited: Overview
Escorts Kubota Limited: Overview (Formerly Escorts Limited) Standalone Revenue in ₹. Crore. Escorts Kubota Limited (EKL) A leading engineering conglomerate with Q1FY24 2,328 a history of over seven decades, steering India’s socio-economic growth through pioneering contribution in critical industrial
Slide 8: Q1FY24 YoY Highlights
Q1FY24 YoY Highlights Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume -1.9% 2.5% 4.4% Export Tractor Volume -31.1% -38.1% -6.9% Total Tractor Volume -5.3% -0.8% 4.5% PNC Volume 58.8% 45.0% -13.8% BHL Volume 23.4% 10.4% -13.0% Compactor Volume 32.5% 88.6% 56.1% Served Construc
Slide 9: Q1FY24 YoY at a Glance
Q1FY24 YoY at a Glance Particulars Unit Q1FY24 Q1FY23 Variance Domestic Tractor Market Share % 9.7% 9.3% 41 bps Revenue from Operations ₹ Cr. 2,327.7 2,014.9 15.5% Material Cost % 69.8 72.2 -238 bps Manpower Cost % 6.4 6.8 -42 bps EBIDTA ₹ Cr. 326.9 201.6 62.2% EBIDTA Margin % 14.0 10.0 404 bps Othe
Slide 10: Q1FY24 YoY at a Glance
Q1FY24 YoY at a Glance 26,582 1,373 ₹ 297.7 Crore Tractors Volumes Construction Equipment’s Revenue from Railway Equipment -0.8% 42.1% 71.8% ₹ 2,327.7 Crore ₹ 326.9 Crore ₹ 282.8 Crore Revenue From Operations EBIDTA Profit After Tax 15.5% 62.2% 91.8% Quarterly Ever Highest Quarterly Ever Highest Up
Slide 11: Q1 - YoY Revenue up by 15.5%; EBIT up by 90.0%
Q1 - YoY Revenue up by 15.5%; EBIT up by 90.0% ₹ Cr. Revenue Key Highlights • Tractor Sales at 26,582 units • Construction Equipment Sales up by 42.1% at 1,373 units • Railway Equipment revenue up by 71.8% at ₹ 297.7 Crore. ₹ Cr. EBIT Key Highlights • Operating leverage. • Higher non-operating incom
Slide 12: Q1FY24 QoQ at a Glance
Q1FY24 QoQ at a Glance Particulars Unit Q1FY24 Q4FY23 Variance Domestic Tractor Market Share % 9.7% 10.9% -127 bps Revenue from Operations ₹ Cr. 2,327.7 2,183.0 6.6% Material Cost % 69.8 71.5 -171 bps Manpower Cost % 6.4 7.2 79 bps EBIDTA ₹ Cr. 326.9 235.8 38.6% EBIDTA Margin % 14.0 10.8 324 bps Oth
Slide 13: Q1FY24 QoQ at a Glance
Q1FY24 QoQ at a Glance 26,582 1,373 ₹ 297.7 Crore Tractors Volumes Construction Equipment’s Revenue from Railway Equipment 7.3% -10.1% 25.5% ₹ 2,327.7 Crore ₹ 326.9 Crore ₹ 282.8 Crore Revenue From Operations EBIDTA Profit After Tax 6.6% 38.6% 52.5% Quarterly Ever Highest Quarterly Ever Highest Up D
Slide 14: Q1 - QoQ Revenue up by 6.6%; EBIT up by 39.1%
Q1 - QoQ Revenue up by 6.6%; EBIT up by 39.1% ₹ Cr. Revenue Key Highlights • Tractor Sales up by 7.3% at 26,582 units • Construction Equipment Sales down by 10.1% at 1,373 units • Railway Equipment revenue up by 25.5% at ₹ 297.7 Crore. ₹ Cr. EBIT Key Highlights • Cost Reduction • Operating leverage
Slide 15: Q1FY24 at a Glance
Q1FY24 at a Glance ₹ 23.2 18.3% 13.3% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~82% ~50% ~ ₹ 950 Crore Capacity Utilization Capacity Utilization Of Order Book Agri Machinery Construction Equipment Railway Equipment Division (Capacity varies across produ
Slide 16: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- AA AA AA+ AA+ Rating (₹ Crs.) 600 553 436 480 360 263 50 277 7 0 0 0 0 120 .0 111.0 500 100 .0 96.0 400 290 80.0 206 302 300 50.0 60.0 57.0 200 220 40.0 159 220 263 31.0 28.6 230 18.5 178 15.5 100 20.0 140 11.0 12.7 104 1
Slide 17: Management Message
Management Message In the Agri business, overall sentiments were mixed last quarter as markets with good rainfall and crop prices showed good momentum, and markets with a delayed monsoon had a slightly dampened demand. Going forward, with further advancement of monsoon across the country, adequate r
Slide 18: Segmental Performance
Segmental Performance 1-08-2023 Escorts Kubota Limited 14
Slide 19: Agri Machinery
Agri Machinery Powering The Dreams Of Farmer 1-08-2023 Escorts Kubota Limited 15
Slide 20: Q1 Agri Machinery Domestic Performance
Q1 Agri Machinery Domestic Performance Domestic Tractor Industry (in Lakhs) EKL Domestic Tractor Volumes -1.9% YoY 2.7 2.5% YoY 25,226 2.6 24,608 9.3% QoQ 23.6% QoQ 23,081 2.1 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 EKL-Tractor ELK - Tractor Industry in Strong Regions grew Industry in Rest Region
Slide 21: Q1 Agri Machinery Export Performance
Q1 Agri Machinery Export Performance Export Tractor Industry (in ‘000s) EKL Export Tractor Volumes -31.1% YoY -38.1% QoQ 35.1 2,189 -2.7% QoQ -19.5% YoY 1,684 24.9 24.2 1,356 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Export through Kubota channel ~32% 5.6% Share of Market in Q1FY24, of total Export
Slide 22: Agri Machinery Performance at Glance in Q1
Agri Machinery Performance at Glance in Q1 ₹ 1,666.8 Crore 13.4% ~82% Segmental Revenue EBIT margin Capacity Utilization 4.5% 7.0% 285bps 348 bps (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 44:56 39:61 38.5% Farmtrac : Powertrac Sales Ratio* Less than 40 HP : Greater than 40 HP Sales Ratio* Return on Capital Em
Slide 23: Construction Equipment
Construction Equipment Preferred Partner In Nation Building 1-08-2023 Escorts Kubota Limited 19
Slide 24: Q1 - Construction Equipment Performance
Q1 - Construction Equipment Performance Served Industry Performance (000’s) EKL Construction Equipment Volumes -10.1% QoQ -21.2% QoQ 42.1% YoY 1,528 18.0 1,373 30.0% YoY 14.2 966 10.9 Q1FY23 Q4FY23 Q1FY23 Q1FY23 Q4FY23 Q1FY24 BHL Industry up by 23% Y-o-Y PnC Industry up by 59% Y-o-Y Compactors Indus
Slide 25: Construction Equipment Performance at Glance in Q1FY24
Construction Equipment Performance at Glance in Q1FY24 ₹ 360.1 Crore 7.6% ~50% Segmental Revenue EBIT margin Capacity Utilization 46.3% -6.4% 658 bps -52 bps (Capacity varies across product category) (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 6.6% 9.8% Product wise Market Share 4.8% 38.8% Revenue Break up 7.8%
Slide 26: Railway Equipment Division
Railway Equipment Division ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 1-08-2023 Escorts Kubota Limited 22
Slide 27: Railway Equipment Division Performance Q1FY24
Railway Equipment Division Performance Q1FY24 ₹ 297.7 Crore 20.9% ~ ₹ 950 Crore Segmental Revenue EBIT margin Of Order Book 71.8% 25.5% 738 bps 697 bps (as of 30th June 2023) (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 70:30 NPD : conventional Sales Ratio 51.7% Return on Capital Employed 67:33 69:31 (Annualized
Slide 28: Shareholding Pattern
Shareholding Pattern Shareholding Trend Category June'2022 Sept'2022 Dec'2022 Mar'2023 June'2023 Promoters 72.9 72.9 72.9 72.9 67.6 Institutions# 11.3 12.4 12.4 12.8 15.5 Public 14.0 13.0 13.0 12.7 14.9 Non Promoter Non Public 1.8 1.7 1.7 1.7 2.0 Total 100.0 100.0 100.0 100.0 100.0 Kubota corporatio
Slide 29: Consolidated Q1FY24 at a Glance
Consolidated Q1FY24 at a Glance YoY QoQ Particulars Unit Q1FY24 Q1FY23 (Change) Q4FY23 (Change) Revenue from Operations ₹ Cr. 2,355.2 2,032.1 15.9% 2,214.5 6.4% Material Cost % 69.8% 72.0% -214 bps 71.6% -177 bps Manpower Cost % 6.4% 6.9% -46 bps 7.2% -81 bps EBIDTA ₹ Cr. 331.1 203.6 62.6% 233.2 42.
Slide 30: Narrations
Narrations • EKL - Escorts Kubota Limited • BHL – Backhoe Loader • FY – Fiscal Year represents the 12 months period from 1st • IndAS - – Indian Accounting Standards April to 31st March. • NPD – New Product Developed • Q1FY23 – Represents the 3 months period from 1st April • PnC – Pick & Carry Crane
Slide 31: Safe Harbor
SAFE HARBOR Certain statements in this document may include forward-looking comments and information concerning the company’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 32: Thank You
THANK YOU 1-08-2023 Escorts Kubota Limited 28