Remsons Industries Limited · NSE:REMSONSIND
Remsons Industries — Q2 FY25 Earnings Presentation
51 slides from Remsons Industries's earnings presentation, Nov 12, 2024
Slide 1: Cover letter to stock exchanges: Investor Presentation
12th November, 2024 To, To, The Manager The Manager – Listing Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, ‘G’ Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai – 400 051 Sc
Slide 2: Investor Presentation Q2FY25
Investor Presentation Q2FY25
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Remsons Industries Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not
Slide 4: Table of Content
Table of Content 01 Business Overview & Financials 04-24 02 Product Diversification Strategy 25-32 03 Annexures 33-41 3
Slide 5: Remsons: 5 Decades of Excellence
Remsons: 5 Decades of Excellence Preferred supplier of high precision components to two, three, and four-wheeler vehicles, commercial vehicles, and off-highway vehicles Rs 913Mn Rs 75Mn Rs 31Mn Revenue EBITDA PAT (2QFY25) (2QFY25) (2QFY25) Pioneers in the industry, India’s first Control Cables man
Slide 6: Bharat Mobility Global Expo, 2024
Bharat Mobility Global Expo, 2024 Remsons was honored to be selected as one of the 2 companies from a pool of 600 participants in Auto Ancillary space, proudly showcasing our cutting-edge products, including the Tyre Mobility Kit, Sensors for automobiles, Infotainment System, and Automotive Lighting
Slide 7: Management Commentary on 2Q & 1HFY25 Results
Management Commentary on 2Q & 1HFY25 Results “I am pleased to announce that Remsons Industries has had a better performance in 2Q & 1HFY25. In 2QFY25, our revenue grew by 20% YoY, reaching ₹913 million. EBITDA for the quarter was ₹75 million, resulting in an 8% margin. Notably, our net profit increa
Slide 8: Major Highlights of 1HFY25
Major Highlights of 1HFY25 Remsons Holding Ltd a wholly owned subsidiary of Remsons Industries Ltd acquired 51% stake in BEE Lighting Ltd UK. BEE Lighting is in the business of lighting in the automotive sector. Consequently, the BEE Lighting Ltd. has become stepdown subsidiary of Remsons Industries
Slide 9: Established Base; High Growth Trajectory
Established Base; High Growth Trajectory Net Revenue (Rs Mn) HISTORICALLY HEREAFTER 3X jump in Revenue over the next three years ~9,000-10,000 Established a strong cable business Expanding products offering units to Next Gen Built Loyal Customer Base with OEM’s Change management, Complete re
Slide 10: Global and Diversified Business Model
Global and Diversified Business Model Revenue Split by Geography Revenue Split by Delivery Aftermarket Rest of India World OEM 10% 65% 90% 35% Sales Sales 1HFY25 1HFY25 A global business model thriving on customer-centricity, digital prowess, and strategic efficiency, cultivating key relationships
Slide 11: Cable Chronicles: Remsons Odyssey in the Auto Value Chain
Cable Chronicles: Remsons Odyssey in the Auto Value Chain Brake- Front, Rear, Combi Clutch Cable, Seat Lock Cable Electronics & Infotainment 2-Wheeler Accelerator Cable Speedometer Cable Sensors Clutch / PKB Cable, Gear and Reverse Gear Cable Wiper Motor Cable 3-Wheeler Accelerator
Slide 12: Engineering driven, vertically integrated OEM
Engineering driven, vertically integrated OEM In-house manufacturing, validation and design Quality Control Concept How we do it? Product Support Market LEAN Model Approach Failure Mode & intelligence/application Effect Analysis engineering Resource Optimization Fast Response Time Warranty
Slide 13: Strong Balance Sheet to support future growth
Strong Balance Sheet to support future growth ROCE & ROE Net Debt to Equity (x) Dividends Paid 1.5 1.5 1.5 24% 2.10 22% 20% 1.91 21% 20% 1 1 16% 1.46 16% 15% 16% 15% 1.19 12% 1.10 7% 0.3 0.11 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 ROCE ROE Dividend
Slide 14: Maintaining Resilience: Strong Position Amid Market Headwinds
Maintaining Resilience: Strong Position Amid Market Headwinds The Automotive Industry continues to face several challenges in the recent years…. Transition into EV High Labor Cost Geopolitical issues has its own Increase & SSSSSSSSSSSSSSSS challenges. Shortage High Inflation Red Sea Crisis Rising In
Slide 15: Remsons Approach to Staying Resilient
Remsons Approach to Staying Resilient Geographical Revenue Structure (INR mn) Expansion into New Technology Domestic Sales Exports 2,810 Products 2,674 2,557 Our presence across all sectors of the 1,992 auto industry 1,284 1,344 1,089 Foray into HCV Segment with Expanded Product Range 589 449 248 27
Slide 16: 1HFY25 Consolidated Key Result Highlights
1HFY25 Consolidated Key Result Highlights Revenue (Rs Mn) EBITDA (Rs Mn) Revenue for 1HFY25 increased 13% yoy A key client of UK business halted production 13% -5% YoY YoY in August from because of supplier issues, 1,678 1,491 148 which adversely impacted EBITDA. However, 140 recovery is anticipat
Slide 17: Our Rapid Growth Milestone
Our Rapid Growth Milestone EBITDA (Rs Mn) & EBITDA Margin % CAGR Net Revenue (Rs Mn) CAGR 16% 29% 10% 3,128 3,123 8% 8% 2,865 7% 7% 2,262 6% 1,592 1,678 4% 1,494 88 114 102 202 260 310 140 FY19 FY20 FY21 FY22 FY23 FY24 1HFY25 FY19 FY20 FY21 FY22 FY23 FY24 1HFY25 EBITDA EBITDA Margin PAT (Rs Mn) & PA
Slide 18: Consolidated 2QFY25 & 1HFY25 Financial Performance
Consolidated 2QFY25 & 1HFY25 Financial Performance Particulars (Rs in Mn) 2QFY25 2QFY24 YoY% 1QFY25 QoQ% 1HFY25 1HFY24 YoY% Revenue from Operations 913 763 20% 765 19% 1,678 1,491 13% EBITDA 75 82 -8% 65 15% 140 148 -5% EBITDA Margin % 8% 11% -251 bps 8% -28 bps 8% 10% -159 bps Depreciation 32 28 15
Slide 19: Standalone 2Q & 1HFY25 Financial Performance
Standalone 2Q & 1HFY25 Financial Performance Particulars (Rs in Mn) 2QFY25 2QFY24 YoY% 1QFY25 QoQ% 1HFY25 1HFY24 YoY% Revenue from Operations 730 623 17% 613 19% 1,343 1,222 10% EBITDA 70 62 12% 46 50% 249 216 15% EBITDA Margin % 10% 10% -45 bps 8% 199 bps 19% 18% 81 bps Depreciation 23 20 14% 21 11
Slide 20: Consolidated Historical Income Statement
Consolidated Historical Income Statement FYE March (Rs Mn) FY21 FY22 FY23 FY24 1HFY25 Revenue from Operations 2,262 2,865 3,128 3,123 1,678 EBITDA 102 202 260 312 140 EBITDA Margin 4% 7% 8% 10% 8% Depreciation 44 79 91 110 62 EBIT 58 123 168 202 78 EBIT Margin 3% 4% 5% 6% 5% Finance Cost 35 64 63 68
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet FYE March (Rs Mn) FY21 FY22 FY23 FY24 1HFY25 FYE March (Rs Mn) FY21 FY22 FY23 FY24 1HFY25 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Fixed Assets 317 344 407 424 604 Share Capital 57 57 57 70 70 Right to use assets 88 69 49 70 60 Reserves and Surpl
Slide 22: Strong Global Footprint
Strong Global Footprint Stourport-on-Severn & Redditch (United Kingdom) 21
Slide 23: Strategically located manufacturing capabilities
Strategically located manufacturing capabilities Seven state of the art manufacturing facilities in India and two integrated manufacturing units in the UK. Gurugram, Pune, Chakan Daman, Pardi, Stourport & Redditch Haryana & Shirwal Union Territory Gujarat (United Kingdom) 22
Slide 24: Expanding Manufacturing Footprint - Organic
Expanding Manufacturing Footprint - Organic Acquired Magal Cables, Got an access to UK in 2020 which was cater to marquee our existing client global clients The unit specializes in the Cross pollination of production of Control products leading to Cables, Pedal Boxes, Technology access for the Winch
Slide 25: Expanding Manufacturing Footprint – Inorganic
Expanding Manufacturing Footprint – Inorganic Acquired BEE lighting, Got an access to UK in 2024 which is part cater to marquee of Remsons global clients Diversification strategy. Complete in-house Design The unit specializes in the Manufacturing & Testing production of capability and serving Automo
Slide 26: Largely EV Agnostic Product Portfolio
Largely EV Agnostic Product Portfolio Cables & Push Pull Cables Handle Assembly Parking Brake Assembly Jacks Gear Shift System Winch Assembly Sensors Pedal Box Exterior and Interior Lighting 25 JV products from Aircom and Daiichi also form a part of the Offerings from Remsons.
Slide 27: Shift in Industry Trends
Shift in Industry Trends Rising population of Electrification young and HNI’s Government Policies Premiumisation and feature laden vehicles Green Mobility 26
Slide 28: We are observing and enhancing our Product Portfolio
We are observing and enhancing our Product Portfolio PLAN 27
Slide 29: Why the Inorganic Path?
Why the Inorganic Path? From India’s leading Control Cable manufacturer, We have diversified. Why enhancing Product Portfolio? JV’s & Acquisitions Cash Flow Management Improved Margins Global Partnerships Tyre Mobility Sensors Asset Light Infotainment Lighting In-house Execution 28
Slide 30: Our Foray into Tire Mobility Kit
Our Foray into Tire Mobility Kit Entered into exclusive The kit effectively JV with Aircom Group, replaces the need of Poland, wherein a regular spare wheel Remsons has 26% stake A further journey could High growth opportunity be continued for 1000 directly co related to kilometers with a number of
Slide 31: JV with DAIICHI for Automotive Electronics
JV with DAIICHI for Automotive Electronics India’s automotive electronics market is likely to cross $18 billion by 2027 from $ 6 billion in 2020 with a CAGR of 17%, with average electronic component cost per passenger vehicle projected to reach nearly INR200,000 by 2027. 50:50 JV with Daiichi, par
Slide 32: Acquisition of Uni Automation Sensors & Embedded Technologies
Acquisition of Uni Automation SENSORS & Embedded Technologies Majority Shareholding in Uni-Automation, a Sensor Manufacturing Company. Uni-Automation is established Since 1985 In-House Design, Manufacturing, Validation, Software Development Industry Leading 10,000 Clean Room. Automotive 31
Slide 33: Acquisition of BEE Lighting
Acquisition of BEE Lighting BEE Lighting is UK based automotive lighting company, excelling in design, engineering, and manufacturing. The company specializes in various external and internal lighting solutions with LED and Adaptive Driving Beam (ADB) systems. Acquired 51% stake of BEE lighting at G
Slide 34: Sectoral Tailwinds to Support Future Growth
Sectoral Tailwinds to Support Future Growth Total Vehicles Produced in India India is projected to be one of the largest global automotive 2,84,34,742 and mobility hub. 2,63,53,293 2,59,40,344 2,26,55,609 2,30,40,066 In India, only 29 out of 1000 people own a car, compared to 226 in China and 581 in
Slide 35: Cables
Cables Our diverse cable portfolio offers an eco-friendly alternative for elevated passenger travel. Harnessing innovative technology, these cables pave the way for sustainable and efficient means of commuting above ground. Diverse Cable Portfolio: Parking Brake Cable ,Clutch Cable, Hood Release Cab
Slide 36: Push Pull Cables
Push Pull Cables In-house validation ensures the excellence of our push-pull cables. We specialize in crafting these cables, offering swift solutions with quick-fix end fittings. Integrated Design & Manufacture Capability Design of Push Pull Cables ranging from Conduit Dia 3 MM To Dia 18 MM He
Slide 37: Brake Mechanism
Brake Mechanism Parking Brake Mechanism Combi Brake Mechanism This product is designed to meet customers mechanical This product activates both the front and rear brakes needs to ensure good braking performance and aesthetic simultaneously. Besides, when the rear brake is pressed, it integration wit
Slide 38: Gear Shift Systems
Gear Shift Systems We offer comprehensive shifter systems, encompassing style elements (bezel, boot, knobs) to gearbox components (levers, cables, and brackets), tailored to customer specifications and inputs. Complete Assembly with Cables. From The Style (bezel, boot, and knobs) to the lever, c
Slide 39: Winches
Winches Develop and supply innovative winches that help to solve the problem of lifting the under-floor spare wheel. It requires minimal effort to stow or lift heavy wheels with these winches. One of the first companies to solve the problem of Under- Floor Spare Wheel Lift and Storage. As a pion
Slide 40: Jack Kit
Jack Kit A comprehensive product which is available in traditional steel and aluminum with lightweight plastic components. Lifting components for many Non-Automotive Applications. Wide Ranging Puncture Management Equipment, including Jacks, Wrenches, Tool Kits And Stowage Systems. Available in
Slide 41: Pedal Box Assembly
Pedal Box Assembly We design, develop and supply accelerator, brake and clutch pedals, either as individual components or as combined assemblies. This product proves to be very efficient and easy to use. Capability to design, develop & supply Accelerator Brake and Clutch Pedals, either as individu
Slide 42: Sensors and Electronics
Sensors and Electronics A wide array of Electronics offerings such as infotainment A wide array of sensors including Throttle Position, Fuel systems, digital clusters, rear-view cameras, USB chargers, Level, Temperature, Brake, Hall effect-based sensors, etc shark fin antennas, AVAS systems, and dri
Slide 43: Leading Partnerships Fuelling Our Growth
Leading Partnerships Fuelling Our Growth 42
Slide 44: Our Milestone
Our Milestone 2022 • New state-of-the art facility 2001 2018-19 started at Chakan, Pune 1959 Indigenous Opening of marketing Remsons Ltd was manufacturing of gear formed as a trading and technical support 2024 shift with cables office in USA and • Acquisition of Uni- company started in India Europe
Slide 45: Management Profile
Management Profile Chairman & MD Whole-Time Director CEO Krishna Kejriwal Rahul Kejriwal Amit Srivastava o Science graduate, from University of Bangalore and has o He has ~20 years of experience in the field of o A seasoned professional ~30 years' experience with ~ 43 years of experience across prod
Slide 46: Remsons Quality Certifications
Remsons Quality Certifications 45
Slide 47: Recognitions and Honors: Celebrating Our Wins
Recognitions and Honors: Celebrating Our Wins 1. Quality Forum India - GOLD Award For TQM and Kaizen 2. TISAX Label for Information Security 3. Ecovadis Gold Rating for 1. ASHOK LEYLAND – Sustainability Gold Quality Award 4. Great Place to Work – Certified 3 2. INTEVA - Best times in a row & Rank 30
Slide 48: Sustainability
Sustainability GOLD RATING OF MEMBER OF THE UN CORPORATE SOCIAL GENERATION OF 500 SUSTAINABILITY GLOBAL COMPACT RESPONSIBILITY – AWARD 2023 KVA PER MONTH This result places our company among the The Ten Principles of the United Education to the handicapped, the In keeping with the efforts of Clean t
Slide 49: Corporate Social Responsibilities - Activities
Corporate Social Responsibilities - Activities Distributed School kits & Health Check-up for Menstrual Dignity Kits Underprivileged people Meri Pathshala – Grocery Kits distribution Revamping Projects in for Underprivileged people Rural Schools Project Uddan - Stitching Cataract Surgery for Machines
Slide 50: Great Place To Work Certified
Great Place To Work Certified Ranking: Top Ranking: Top 25 50 India’s Best Building India’s Best a Culture of Workplaces in Innovation by all Manufacturing 49
Slide 51: Thank You!
Remsons Industries Limited THANK Tel: +91-22 3501 6400 Email: corporate@remsons.com www.remsons.com YOU! For further information, please contact Saloni Ajmera Tel: +91-99305 77801 Email: saloni@goindiaadvisors.com Paridhi Jagnani Tel: +91-91020 24869 Email: paridhi@goindiaadvisors.com www.goindiaadv