Slide 1: Cover letter to stock exchanges
Varroc Engineering Ltd. Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2021-22/45 November 11, 2021 To, The Manager- Listing
Slide 2: Press Release
Varroc Engineering Limited L-4, MIDC, Industrial Area Waluj, Aurangabad 431 136 Maharashtra, India CIN: U28920MH1988PLC047335 | Tel + 91 240 6653700 | www.varroc.com Press Release • Revenue from Operations for the quarter improved 4% YoY mainly in India (+36% YoY); VLS revenue declined 13% YoY as a
Slide 3: Press Release: China JV, Project RACE, About Varroc
China JV • China JV Revenue improved by 44% QoQ. Our share of the China JV EBITDA was at ₹ 102 Million (margin +5.9%) as higher raw material prices impacted the margins negatively. Depreciation and Amortisation • Depreciation and Amortisation expenses were at ₹ 2,374 million. Finance Cost • Finance
Slide 4: Financial Results Q2 FY22
Click to edit Master title style Varroc Engineering Limited Financial Results Q2 FY22 ::11th November 2021::
Slide 5: Disclaimers
Disclaimers Click to edit Master title style This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business developme
Slide 6: Industry Trends in Q2 FY22
Industry Trends in Q2 FY22 – Drop in Global PV Volumes continues, India volumes too decline YoY 4 sequential Click to edit Master title style 5.2m 4.3m 3.8m 7.6m quarters Global Passenger Vehicle Market Production -40% 4.6m -21% -30% • PV volumes in CY22 continue to be 4.6m impacted severely by the
Slide 7: Business Highlights: Q2 FY22
Business Highlights: Q2 FY22 • Click to edit Master title style Revenue from operations for the quarter for India increased by 34% QoQ as COVID second wave restrictions were lifted. VLS revenue decline continued as QoQ revenue was down 11% over previous quarter, primarily due to lower OEM production
Slide 8: Varroc Group: Financial Performance
Varroc Group: Financial Performance Click to edit Master title style Growth Growth ₹ million Growth Particulars Q2 FY22 Q1 FY22 Q2 FY21 H1 FY22 H1 FY21 (Q-o-Q) (Y-o-Y) (Y-o-Y) Revenue from Operations - Reported 30,326 29,416 29,161 3% 4% 59,742 41,908 43% Other income - Operating 87 146 228 233 338
Slide 9: Varroc Group: Business Wise Performance Q2 FY22
Varroc Group: Business Wise Performance Q2 FY22 Click to edit Master title style ₹ million Q2 FY22 Q2 FY21 Revenue Change SBU Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA YoY India Business 12,686 1,250 9.9% 9,329 1,257 13.5% 36.0% VLS 17,302 (1,258) -7.3% 19,788 1,502 7.6% -12.6% Others (IMES) 5
Slide 10: VLS: QoQ performance by plant
VLS: QoQ performance by plant Region Click to edit Master title style Production Revenue € million except otherwise mentioned Q-o-Q Change % YoY change % Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 North America 49 41 33 31 31 -0.6% -36.7% Czech 120 152 146 116 92 -20.5% -23.4% Poland 7 13 16 16 14 -14.
Slide 11: Revenue by Customers and Order Wins
Revenue by Customers and Order Wins Click to edit Master title style India Revenue Split by Customer(1) Q2 FY 22 % VLS Revenue Split by Customer (2) Q2 FY 22, % Revenue in Europe declined Bajaj 16.6% Customer A by 17.6% QoQ on top of 29.7% 21.8% Customer B 17.3% QoQ reduction in Honda 8.2% Customer
Slide 12: EV business in India: Highlights & Updates
EV business in India: Highlights & Updates Click to edit Master title style Industry product price expectations Total @ Installed Expected revenue in FY25 for current Component based on Capacity business based on SOB Investec Research (Rs (Rs Crs) # and industry price per 2W) * (Rs Crs) Traction mot
Slide 13: Varroc Group: Business Wise Performance H1 FY22
Varroc Group: Business Wise Performance H2 FY22 Click to edit Master title style ₹ million H1 FY22 H1 FY21 Revenue Change SBU YoY Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA India Business 22,166 1,978 8.9% 12,306 1,004 8.2% 80.1% VLS 36,806 (1,801) -4.9% 29,251 (43) -0.1% 25.8% Others (IMES) 1,
Slide 14: Debt Situation Status Update and Outlook for FY22
Debt Situation Status Update and Outlook for FY22 Click to edit Master title style ₹ Billion 0.0 1 Working capital D/E 33 -1.0 27.7 change, -2.3 30 29 -2.0 25 ~1.2x 5.2 22.5 -3.0 Capex, -1.7 0.8x Forecast Forecast -4.0 inv. in Intangibles , -0.6 -5.0 Forex impact, -0.5 -6.0 March 2021 June 2021 Sept
Slide 15: Update on Current Business Environment
Update on Current Business Environment Click to edit Master title style • Current Situation • India business revenue performance lower than normal in October as demand during festival season not as strong as expected as well as supply constraints • VLS October / November – Semiconductor shortages co
Slide 16: Varroc Group
Click to edit Master title style Confidential - Varroc Group 13