Menon Bearings Limited · NSE:MENONBE
Menon Bearings — Investor Presentation (October 2020)
48 slides from Menon Bearings's investor presentation, Oct 29, 2020
Slide 1: Cover letter to stock exchanges
l��--- @) __ M_EN_O_N _B_E_A_R_IN_G_S_LI _M_ IT_E_D_________ ___ MENON BEARINGS 29 th October, 2020 To /To The Manager v The Manager - Listing Department of Corporate Services National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, 'G' Block Dalal S
Slide 2: Continuing the long term growth story
continuing the long term growth story powering into the new normal leveraging core strengths & fundamentals
Slide 3: Content Index
continuing the long term India’s Leading Engine Bearings Company growth story Content Index 01 02 03 04 Long Term Growth Story : Industry Continuing Core Strengths Guidance Scenario Investments by MBL 05 06 Wealth Contacts Creation
Slide 4: Long Term Growth Story: Core Strengths
continuing the long term India’s Leading Engine Bearings Company growth story 01 Long Term Growth Story : Core Strengths
Slide 5: The world will change after Covid
India’s Leading Engine Bearings Company continuing the long term growth story The world will change after Covid. However MBL management is confident & believes that the fundamental & core strengths of the company will continue to power growth and will help mitigate risks
Slide 6: Critical components: high entry barriers
India’s Leading Engine Bearings Company continuing critical components : the long term high entry barriers growth story MBL is one of the leading manufacturers of highly critical moving engine components that operate in high temperatures & pressures inside demanding engines with high payloads & reli
Slide 7: Market leader: competes against global players
India’s Leading Engine Bearings Company continuing market leader : the long term competes against global players growth story MBL started operation in 1994 and has Ship to Use, Self Certification, & Single Source Status from top auto OEM brands across the world. MBL today is the market leader in its
Slide 8: Our customer profile
continuing the long term growth story Our Customer profile is indicative of the continued confidence of leading OEMs in our products
Slide 9: Customer base diversified across segments
India’s Leading Engine Bearings Company continuing core strenghts : the long term customer base diversified growth story across segments Engine & Commercial Vehicles ( HCVs & LCVs ) Tractors Electrical ( Generators, AC, Compressors, Home Appliances & Earth Moving Equipments ) Sundaram Fasteners Limi
Slide 10: Diversified bets & exposure
India’s Leading Engine Bearings Company continuing core strenghts the long term diversified bets & exposure growth story MBL has a major share of business with marquee global OEMS. However, No single customer contributes more than 10 to 12% of MBL’s business
Slide 11: Strong brand equity & advantages with OEM
India’s Leading Engine Bearings Company continuing core strenghts : the long term strong brand equity & advantages growth story with OEM strategically located plants assured & proven quality timely delivery competitive pricing faster development
Slide 12: Exports hedged across geographies
India’s Leading Engine Bearings Company continuing core strenghts : the long term exports hedged across geographies growth story MBL is a globally p o s i t i o n e d co m p a ny with business exposure hedged across various geographies, thereby mitigating risks of the differentially timed lockdowns
Slide 13: Globally positioned & hedged business
India’s Leading Engine Bearings Company continuing core strenghts : the long term globally positioned & hedged business growth story MBL has an office in Indianapolis which m a n a g e s warehousing in the USA to service customers in & around the USA region since the last 20 years. Office & Warehous
Slide 14: Customer base diversified across countries
India’s Leading Engine Bearings Company continuing core strenghts : the long term customer base diversified growth story across countries UK Netherland Japan USA Austria China Italy Nepal Mexico Bangladesh UAE India AFRICAN CONTINENT
Slide 15: Sales hedged across sectors
India’s Leading Engine Bearings Company continuing core strenghts : the long term sales hedged across sectors growth story Elec. Business Other 1.04% diversified 6.16% Exports sales profile 36.90% mitigates risks of downturns in any specific OEM sectors 49.33% Rep. Market 6.57%
Slide 16: Wide range of application categories
India’s Leading Engine Bearings Company continuing core strenghts : the long term catering to a wide range of application growth story categories thereby hedging exposure & risks Heavy Commercial Vehicles Diesel Engines Light Commercial Vehicles Gasoline Engines, Construction Equipment CNG Engines T
Slide 17: Products range with wide range of applications
India’s Leading Engine Bearings Company continuing core strenghts : the long term sales hedged across wide growth story range of applications APPLICATIONS products range BEARING Bearings for Connecting tractor with wide range Rods, Bearings for Crank shafts, Flanged Bearings HCV of applications BUSH
Slide 18: Strategic diversifications
India’s Leading Engine Bearings Company continuing strategic diversifications : the long term core engineering ability to enter growth story new product segments Since 2010,MBL has d i ve r s i f i e d f r o m E n g i n e Design, Bearings (Crank Shaft Parts) testing to bi-metal parts required for an
Slide 19: New product line: aluminium division
India’s Leading Engine Bearings Company continuing New Product Line : the long term aluminium division growth story In 2008 MBL Strategically Diversified into a new product segment with huge potential, namely Finished Critical Aluminium Die Cast Components. This aluminium division named Alkop has, s
Slide 20: Aluminium products for a wide range of applications
India’s Leading Engine Bearings Company continuing core strenghts : the long term sales hedged across wide range of growth story aluminium products for a wide range of applications APPLICATIONS upto 6 2/3 wheelers aluminium Kgs./Piece products High Pressure Aluminum DieCast & engines with wide Machi
Slide 21: Future ready lead free
India’s Leading Engine Bearings Company continuing Future ready : the long term lead free growth story MBL is among the very few companies to have facilities to produce next generation lead free material to produce next generation parts to cater to future emission norms. Lead Free
Slide 22: Strong brand equity & network in aftermarket
India’s Leading Engine Bearings Company continuing core strenghts : the long term strong brand equity & network growth story in aftermarket ( replacement ) products present at The MENON BEARINGS brand has built a formidable reach & brand equity in the 10,000+ aftermarket & is a name to reckon with.
Slide 23: Strong brand equity & network in aftermarket
India’s Leading Engine Bearings Company continuing core strenghts : the long term strong brand equity & network growth story in aftermarket ( replacement ) retail field our aftermarket sales network serves a national community of relationships built & nurtured 30,000+ mechanics & reborers for over 2
Slide 24: Industry Scenario: Long Term Growth
continuing the long term India’s Leading Engine Bearings Company growth story 02 Industry Scenario : Long Term Growth
Slide 25: India auto story: continuing growth
India’s Leading Engine Bearings Company continuing india auto story : the long term continuing growth growth story Automobile auto components US$ 80 billion Component Manufacturers export from India by 2026 from US$ 56.52 billion in FY19 Assosiation (ACMA) forecasts auto components US$ 200 billion i
Slide 26: Robust & Growing Demand
India’s Leading Engine Bearings Company continuing indian component market : the long term continuing long term growth story growth story Industry Tailwinds Growing working population and expanding middle ADVANTAGE INDIA class are expected to remain the key demand drivers. Low vehicle penetration cr
Slide 27: Export Opportunities
India’s Leading Engine Bearings Company continuing indian component market : the long term continuing long term growth story growth story Industry Tailwinds India is emerging as global hub for auto component ADVANTAGE INDIA sourcing. Relative to competitors, India is geographically closer to key aut
Slide 28: Policy Support
India’s Leading Engine Bearings Company continuing indian component market : the long term continuing long term growth story growth story Industry Tailwinds In September 2015, Automotive Mission Plan 2016-26 ADVANTAGE INDIA was unveiled to target a four fold growth for the sector. strong support for
Slide 29: Competitive Advantages
India’s Leading Engine Bearings Company continuing indian component market : the long term continuing long term growth story growth story Industry Tailwinds A cost-effective manufacturing base keeps costs lower ADVANTAGE INDIA by 10-25 per cent relative to operations in Europe and Latin America Prese
Slide 30: Domestic & export markets still hold huge potential
India’s Leading Engine Bearings Company continuing indian component market : the long term continuing long term growth story growth story Domestic & Exports Markets still hold huge Potential Source : ACMA / IBEF, Ministry of Commerce and Industry, Government of India, ( August 2020 ) Source : ACMA /
Slide 31: Indian market: sure growth
India’s Leading Engine Bearings Company continuing indian market : the long term sure growth growth story auto sector to register sure growth in coming years due to low base effect of FY 2019-2020, low base effect due to the Covid related declines better & increasing penetration of auto sector
Slide 32: Continuing Investments by MBL
continuing the long term India’s Leading Engine Bearings Company growth story 03 Continuing Investments by MBL
Slide 33: Management confidence in long term growth
India’s Leading Engine Bearings Company continuing continuing investments : the long term management confidence growth story in long term growth The management’s confidence in the upward trajectory in the long term is reflected in its continuing investment plans Long term Continuing growth story Inv
Slide 34: Production capacity expansion
India’s Leading Engine Bearings Company continuing Production Capacity : the long term expansion & growth growth story 3 mn. pcs p.m. MBL has a healthy order Planned book position of Bimetal to parts & aluminium Bi-metal Capacity 5 mn castings orders in pipe line from domestic & Expansion pcs p.m. g
Slide 35: Strong ratios
India’s Leading Engine Bearings Company continuing Strong Financials : the long term strong ratios growth story The company has been consistently operating at EBITDA PBT PAT 25-26 % 20-22 % 14-15 %
Slide 36: Guidance
continuing the long term India’s Leading Engine Bearings Company growth story 04 Guidance
Slide 37: Projected financials: planned growth
India’s Leading Engine Bearings Company continuing projected financials : the long term planned growth growth story Year 2017-18 2018-19 2019-20 2020-21 2021-22 2023-24 Sr. No. Particulars Audited Audited Audited Projected Projected Projected 1 Total Income 146.78 175.41 140.36 143.00 206.00 243.00
Slide 38: Assumptions for Guidance
India’s Leading Engine Bearings Company continuing Assumptions for the long term growth story Guidance Before the downturn in Automobile Industries & Covid-19 effect, we clocked a total turnover of Rs176 Cr. in the year 2019 i.e. Rs. 132 Cr in Bearing Division and Rs44 Cr.in Alkop ( Al Casting Divisi
Slide 39: Financial ratios
India’s Leading Engine Bearings Company continuing financial ratios : the long term growth story Sr. No. Particulars FY 2018 FY 2019 FY 2020 1 Return on Net Worth 37.66 34.04 16.32 2 ROCE 51.62 39.02 21.07 3 Debt Equity 0.44 0.48 0.44 4 DSCR 12.32 8.67 6.08 5 Asset Turnover 131.05 128.09 91.05 6 Cur
Slide 40: Indian market: Covid recovery
India’s Leading Engine Bearings Company continuing indian market : the long term covid recovery growth story issue dampening of demand due to covid management demand could reach pre-covid levels soon comments some pent up demand will be released farm sector demand already gathering traction exports
Slide 41: Indian market: the EV challenge
India’s Leading Engine Bearings Company continuing indian market : the long term the EV challenge growth story issue the emerging EV challenge management EV challenge to traditional auto is far fetched for reasons like low comments charging infra, high costs, and many other issues MBL caters mainly
Slide 42: Wealth Creation for MBL Shareholders
continuing the long term India’s Leading Engine Bearings Company growth story 05 Wealth Creation for MBL Shareholders
Slide 43: Wealth creation: consistent dividend
India’s Leading Engine Bearings Company continuing wealth creation the long term consistent growth story Particulars 2019-20 Total Dividend 250% Total Amount 1401.00 Lakhs Tax 285.21 Lakhs Total Payout 1686.21 Lakhs
Slide 44: Total dividend payout since inception
India’s Leading Engine Bearings Company continuing wealth creation the long term consistent growth story Total Dividend Payout Since Inception 1302 % Resulting into Payout of 79.18 Crs. ( incl. taxes )
Slide 45: Consistent dividend payout
India’s Leading Engine Bearings Company continuing wealth creation the long term consistent dividend payout growth story 300% 250% 250% 200% 150% 150% 150% 80% 100% 100% 100% 60% 50% 0% 7 5 9 4 8 6 0 -1 -1 -1 -1 -1 -1 -2 16 14 18 13 17 15 19 20 20 20 20 20 20 20
Slide 46: Contacts
continuing the long term India’s Leading Engine Bearings Company growth story 06 Contacts
Slide 47: Contacts: investor relations
India’s Leading Engine Bearings Company continuing contacts : the long term investors relations growth story Guidance Queries : Mr. Arun Aradhye cell : 8007772005 Wholetime Director & CFO emaiI : admin@menonbearings.in Menon Bearings Ltd. Corporate Office : MENON BEARINGS LTD., G-1, MIDC, Gokul Shir
Slide 48: Thank you
continuing the long term India’s Leading Engine Bearings Company growth story thank you
Menon Bearings — Investor Presentation (October 2020) on 6ix