Gabriel India Limited · NSE:GABRIEL
Gabriel India — Investor Presentation (July 2018)
49 slides from Gabriel India's investor presentation, July 2018
Slide 1: Gabriel India Ltd. Investor Presentation – July 2018
Gabriel India Ltd. Investor Presentation – July 2018 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), has been prepared by Gabriel India Limited (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 form t
Slide 3: Index
Index Introduction 04 Business Overview 05 Strategy Going Ahead 20 Financial Highlights 23 Corporate Overview 35 3
Slide 4: Introduction
Introduction Incorporated The company, Gabriel India, in 1961 Experienced Pioneers of Shock Absorber & Professional Management manufacturing in India Innovation Significant Presence in all Strong R&D with over channels of sales 43 patents filed in OE, Aftermarket and Exports Products & Processes Str
Slide 5: Business Overview
GABRIEL Business Overview |
Slide 6: We are a "Great Place to Work"
We are a “GREAT PLACE TO WORK” Ranked among Top 100 Companies to work for 2018 in India (4th time in row) & best companies to work for in Auto Component Industry Ranked among Top 100 Companies to work for 2017 in India Gabriel India Ranked #3 in Auto Component Industry 2016 Rank #70 among Top 100 Co
Slide 7: Pioneer of Ride Control Products
Pioneer of Ride Control Products… 2/3 Wheeler Front Hydraulic Shock Gas Shock Forks Absorbers Absorbers Passenger Car Gas Shock McPherson Cartridges Absorbers Struts After Market across all segments CV & Railways Shock Cabin Seat Absorbers Dampers Dampers 7
Slide 8: …with Diversified Revenue
…with Diversified Revenue Revenue (Rs. Mn) Segment Mix: FY18 2/3 Wheelers 56% 18,331 CAGR +9% 15,206 Passenger 14,441 cars 14,382 Commercial 31% Vehicles 13% 12,745 11,960 Channel Mix: FY18 OE Aftermarket 85% 11% FY13 FY14 FY15 FY16 FY17 FY18 Exports 4% 8
Slide 9: No OEM accounting for >20% of Sales
… & “No” OEM accounting for >20% of Sales 2/3 Wheeler Passenger Car CV & Railways 9
Slide 10: Strongly supported by Aftermarket Presence
… Strongly supported by Aftermarket Presence • Brand “Gabriel” synonymous with shock absorbers Brand “Gabriel” and struts • Market Share of ~45% • 17 CFA Locations & 500 Dealer Network Extensive Distribution Network • ~10,000 Retail Outlets supported by highly trained Sales Force • More than 500 pro
Slide 11: Strengthening Retailer Connect
Strengthening Retailer Connect… First-of-its-Kind Program to build loyalty among Retailers & Mechanics Aiming to connect with Key initiative to retailer emotionally, and strengthen brand understand their “Gabriel” and connect specific needs ELITE RETAILER with Retailers PROGRAM In 1st phase, Honouri
Slide 12: Reinforcing Brand Gabriel
… Reinforcing Brand “Gabriel” Pro Kabbadi - Puneri Paltan team Indian National Polo Team Suzuki – Gixxer Cup Pune International Supercross League VW - Ameo Cup Highway Hoardings & Uni-poles
Slide 13: Creating Global Presence through Exports
Creating Global Presence through Exports Leveraging relationship with Dedicated Marketing team Caters to demand Global OEMs in India to for exploring opportunities from OEM & penetrate their Global in Overseas Markets Aftermarket Operations Exports to developed markets Focusing to increase presence
Slide 14: Aftermarket & Exports – Improving Performance
Aftermarket & Exports – Improving Performance Aftermarket Sales (Rs Mn) Export Sales (Rs. Mn) CAGR +17% CAGR +25% 1,988 2,016 733 1,854 612 558 571 1,516 553 1,415 1,205 415 382 1,004 874 292 594 126 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 14
Slide 15: Strategic Manufacturing Footprint
Strategic Manufacturing Footprint Ashok Leyland SML Isuzu Tata Motors GIL Presence Honda Cars Honda Motorcycles TVS Motors GIL Plants ICML Yamaha India Maruti Suzuki Parwanoo GIL Satellite Locations Suzuki Motorcycles Manesar Khandsa AMW GM Sanand Dewas Tata Motors Hindustan Motors Honda Motorcycles
Slide 16: Manufacturing Facilities – 2/3 Wheelers
… Manufacturing Facilities 2/3 Wheelers Key Features Clientele • Commenced production in 1990 Nashik • Products: Shock Absorbers & Front Forks • TC with Yamaha Motors Hydraulic System • Commenced production in 1997 Hosur • Products: Shock Absorbers & Front Forks • TC with KYB Japan & Yamaha Motors H
Slide 17: Manufacturing Facilities – Passenger Cars
… Manufacturing Facilities Passenger Cars Key Features Clientele • Commenced production in 1997 Chakan • Segment Serviced : Passenger Cars, Utility Vehicles and Railway • Products: Shock Absorbers & Struts • Commenced production in 2007 Khandsa • Products: Shock Absorbers & Struts • TC with KYB Japa
Slide 18: Manufacturing Facilities – CV & Railways
… Manufacturing Facilities CV & Railways Key Features Clientele • Commenced production in 1992 Dewas • Segment Serviced : OE, Aftermarket and Exports • Products: Shox – Commercial Vehicles 18
Slide 19: Strong In-house R&D & Global Technology Partners
Strong In-house R&D & Global Technology Partners Key Principles of R&D • Developing light DSIR Approved R&D Centres weight products at competitive costs Well equipped state- Technical Collaborations with Global Partners • Developing of-the-art products that will • Chakan • KYB Japan – Focus on Short
Slide 20: Achieving Engineering Excellence
Achieving Engineering Excellence First to Develop Designed & Adjustable Electronic- First time in India - developed Remote Hydraulic Shock Shock Absorbers Canister Shock Absorber for a leading with Floating Piston Absorber SUV vehicle in Aftermarket First Indian Company to Proven Engineering First t
Slide 21: Strategy Going Ahead
Strategy Going Ahead 21
Slide 22: Strategic Business Unit Approach
Strategic Business Unit Approach… 2/3 Wheeler CV & Railways • Quality & Process • Product Technology Technology • New Product Devolvement • Capacity Enhancement Aftermarket Passenger Car • Product Development • Product Innovation • Expanding Reach • Improving Market Share To Derive benefits in Custo
Slide 23: … To Drive Growth
… To Drive Growth Sales Growth • Exports Focus • In Organic Growth • Global Manufacturing Footprint Efficiency Improvement • Customer Focus Technology & Innovation • Debt Reduction • Improvement in quality • Break Even Point (BEP) • R & D Focus Reduction • Sustainable • Simplification of Parts Manuf
Slide 24: Key Updates for 2018-19
Key Updates for 2018-19 Capital Expenditure for FY 18-19 proposed Rs.1,560 Mn New 2-Wheeler Front Fork Plant at Sanand to cater to new HMSI Order, expected outlay Rs.460 Mn New ‘Piston Rod’ (Key Component for Shock Absorbers) manufacturing facility, expected outlay Rs. 400 Mn New R&D Technical
Slide 25: Financial Highlights
Financial Highlights 25
Slide 26: Historical Profit & Loss Highlights
Historical Profit & Loss Highlights Rs.Mn FY18^ FY17^ FY16 FY15 FY14 FY13 Revenue 18,331 15,206 14,382 14,441 12,866 12,053 Raw Material 13,106 10,847 10,282 10,434 9,266 8,644 Employee Expenses 1,377 1,112 1,150 1,077 982 911 Other Expenses 2136 1785 1,674 1,762 1,714 1,672 EBITDA 1,713 1,461 1,276
Slide 27: Profit & Loss Highlights
Profit & Loss Highlights % of % of % of % of Rs. Mn Q4 FY18 Q4 FY17 YoY% FY18 FY17 YoY% Revenue Revenue Revenue Revenue Revenue (net of excise duty) 4,968 100.0% 3,882 100.0% 28.0% 18,331 100.0% 15,206 100.0% 20.6% Raw Material 3,546 71.4% 2,762 71.1% 13,106 71.5% 10,847 71.3% Employee Expenses 361
Slide 28: Margin Expansion Continues - Yearly
Margin Expansion Continues- Yearly EBITDA Margin % PBT Before Exceptional Item Margin % 9.6% 7.4% 7.5% 9.1% 9.3% 6.7% 8.1% 5.8% 7.1% 6.7% 4.3% 3.4% FY13 FY14 FY15 FY16 FY17* FY18* FY13 FY14 FY15 FY16 FY17* FY18* * - Financials for FY17 & FY18 as per IND-AS 28
Slide 29: Quarterly Performance Trend
Quarterly Performance Trend Quarterly Performance Trend EBITDA Margin % 9.8% 9.7% 9.6% 9.6% 9.4% 9.3% 9.4% 9.0% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 PBT Margin (%) 7.9% 7.7% 7.5% 7.4% 7.4% 7.2% 7.2% 7.2% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 29
Slide 30: Balance Sheet
Balance Sheet ASSETS (Rs. Crs.) Mar-18 Mar-17 EQUITY AND LIABILITIES (Rs. Crs.) Mar-18 Mar-17 Non-current assets 3,417 3,601 Property, Plant and Equipment 2,926 2,829 EQUITY 5,249 4,502 Capital work-in-progress 78 18 Equity Share Capital 144 144 Investment Property 23 4 Other Equity 5,105 4,358 Inta
Slide 31: Strong Balance Sheet
Strong Balance Sheet D:E Ratio ROIC* (%) 35% 33.2% 0.31 30% 27.8% 27.7% 26.7% 25% 0.23 19.9% 20% 18% 15% 10% 0.04 5% 0.03 0.02 0.02 0% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 * Invested capital excluding Cash & Bank balances, Mutual Fund investments and returns thereo
Slide 32: Reduction in borrowings
Reduction in borrowings (Rs.Mn) 3 4 83 3 3 551 468 3 1 2 35 2 171 195 50 101 49 73 61 32 30 Mar '13 Mar '14 Mar '15 Mar '16 Mar '17 Mar '18 Public Deposits Working capital Term loan Finance lease Others 32
Slide 33: Capital expenditure trend
Capital expenditure trend (Rs. Mil) 600 518 500 500 396 388 400 348 300 200 100 0 FY 14 FY 15 FY 16 FY 17 FY 18 33
Slide 34: Working Capital improvement
Working Capital improvement Net working capital days 28 27 26 25 24 FY14 FY15 FY16 FY17# FY18# # Adjusted for vendor bills discounted and non-inclusion of final dividend as proposed dividend in comparison to earlier years. The adjusted net working capital days for FY17 & FY18 will be 22 days & 23 da
Slide 35: Annual Performance Trend
Annual Performance Trend Revenue EBITDA (Rs.Mn) CAGR +13% CAGR +15% 18,331 1,713 1,461 14,441 14,382 15,206 1,293 12,866 1,168 11,282 12,053 9,700 888 941 904 826 7,055 573 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17* FY18* FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17* FY18* EBITDA Margin% PAT CAGR +19% 9.2%
Slide 36: Revenue Mix
Revenue Mix Segment – Mix Channel – Mix 11% 11% 13% 13% 4% 4% 4% 4% 11% 13% 13% 11% 26% 58% 31% 55% 63% 32% 31% 86% 83% 83% 86% 83% 83% 85% 63% 58% 32% 26% 31% 55% 56% 11% 13% 13% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 2W/3W OE Passenger Vehicles Replacement Commercial Vehicles Export 36
Slide 37: Annual Performance Trend
Annual Performance Trend Networth Debt:Equity (Rs.Mn) 5,249 1.01 4,502 0.82 3,913 3,254 2,852 0.54 2,569 2,313 1,866 0.32 1,493 0.23 0.04 0.07 0.02 0.02 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17* FY18* FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17* FY18* Funds Employed ROCE 5,553 28.2% 25.8% 26.0% 26.6% 4,7
Slide 38: Improving Dividend Profile
Improving Dividend Profile Dividend Per Share (Rs.) 1.40 • Continuous Dividend 1.30 1.20 since inception 1.05 • Stable Pay out Ratio 0.85 • Declared Final Dividend of Rs. 0.90 per share, amounting to 90% of Face Value • Total Dividend of Rs. 1.40 per share of Re. 1 each FY14 FY15 FY16 FY17 FY18 33%
Slide 39: Corporate Overview
Corporate Overview 39
Slide 40: Evolution
Evolution 2001 - 2010 1991 - 2000 • Exports to Yamaha (Japan) Commenced 1961-1990 • Single Unit Manufacturing to • Sets up the Parwanoo facility, Multi Location segment wise manufactures shock absorbers • Incorporated Gabriel manufacturing : Passenger cars for Commercial Vehicles and India in 1961 s
Slide 41: Evolution
Evolution 2015 - 2017 2013 - 2014 • Received an approval to manufacture Linke- Hofmann- 2011-2012 • With key focus on R&D, Busch (LHB) Dampers from launches a full-fledged new 2- Indian Railways for high-speed • 2011 R&D Facility at Wheeler R&D centre in Hosur Trains Hosur & Nashik • Expanded presen
Slide 42: Led by Experienced Professionals
Led by Experienced Professionals Mr. Deepak Chopra – Group CEO, Anand Group • Chartered Accountant & Company Secretary, more than 40 years of experience across Industries • Associated with Anand Group since 1976 • Rich experience in Finance, Tax, Operations, Secretarial, and Project Management Mr. M
Slide 43: Led by Experienced Professionals
Led by Experienced Professionals Mr. Rajendra Abhange, CTO Mr. Atul Jaggi , COO, TWBU Mr. Amitabh Srivastava, COO, AMBU Mr. Sarabjit Singh, COO, PCBU Mr. Umesh Shah , COO, CVRBU 43
Slide 44: Board of Directors
Board of Directors Mrs. Anjali Singh – Executive Chairperson, Gabriel India • Joined Anand Group in 2005 • Studied Business Management at University of Westminster, UK, and Fine Arts at Central Martin’s School of Arts and Design, UK • Also serves as Chairperson, Supervisory Board, Anand Group since
Slide 45: Board of Directors
Board of Directors Mr. Aditya Vij – Non Executive Independent Director • Over 3 decades of experience in the corporate world with a proven track record of developing and turning around businesses in various leadership positions. • Served as the Chief Executive Officer at Fortis Healthcare Limited fr
Slide 46: Sustainability Award – Mahindra
Sustainability Award – Mahindra Gabriel India awarded with “Sustainability Award – Automotive and Farm Division” from Mahindra for our outstanding efforts in FY18 46
Slide 47: Awards
Awards Price Competitiveness Award – Suzuki Motorcycles Supplier Excellence Award – SML ISUZU Certificate of appreciation – FICCI Quality ACMA Gold Award in Health & Safety Systems Excellence Awards 2018 47
Slide 48: Industry Accolades
Industry Accolades • Gold Award in the International Convention on Quality Control Circles held in the Philippines • Khandsa plant was felicitated by the Hon’ble Chief Minister of Uttar Pradesh Shri Yogi Adityanath for Encouraging Women’s Participation in the Workforce • Dewas plant received ‘Certif
Slide 49: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Gabriel India Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L34101PN1961PLC015735 CIN : U74140MH2010PTC204285 Mr. Rajendran Arunachalam Mr. Jigar Kavaiya / Ms. Neha Shroff rajendran.arunachalam@gabriel.co.in jigar.kava