Alicon Castalloy Limited · NSE:ALICON
Alicon Castalloy — Q4 FY2022 Earnings Presentation
29 slides from Alicon Castalloy's earnings presentation, May 17, 2022
Slide 1: Cover letter to BSE and NSE
May 17, 2022 To To The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited Floor 25, P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalai Street, Mumbai — 400 001 Bandra (East), Mumbai — 400 051 Scrip Code: 531147
Slide 2: Alicon Castalloy Ltd Q4 & FY22 Results Presentation
Alicon Castalloy Ltd Q4 & FY22 Results Presentation May 17, 2022
Slide 3: Forward-looking statements disclaimer
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "conte
Slide 4: About Alicon, Q4 & FY2022 Highlights, Concall Details
About Q4 & FY2022 Concall Alicon Highlights Details 3
Slide 5: About Alicon Castalloy
Vealicon i" U ‘ Vv \ Casting The Future About Alicon Castalloy
Slide 6: End-to-end solutions across aluminum casting needs
Offers end-to-end solutions spanning the entire spectrum of aluminum casting needs across multiple user industries Offers - Design, Diversified Pioneer in Engineering, marquee Robust track India for Casting, Customer record of 49 processes of Operates one Leaders in the Machining and base across yea
Slide 7: Alicon at a glance
1,081 116 90 customers with.. 4 INR crore of Total INR crore of Manufacturing Income in FY22 EBITDA in FY22 795 Live Parts Units 131 997 Presence in No. of product 18 No. of permanent innovations FY20-22 countries employees 6
Slide 8: A blend of European engineering skills, Japanese quality and Indian ingenuity
Enkei Corporation Alicon Castalloy Leading Japanese Largest Foundry in India – motor cycle and offering frugal engineering passenger car solutions wheel A blend of manufacturer European 49 years of track record 230+ 70+ years of engineering skills, experience Years of Cumulative Japanese quality Sil
Slide 9: Catering to key sectors of the Indian economy
Prototype Design Tool Design & Painting & Manufacturing Simulation Machining & Tool Sub-Assembly Manufacturing VA/VE Casting Fixture Design & Suggestions Manufacturing Manufacturing Catering to key sectors of the Indian economy Automobile Infrastructure Aerospace Medical Energy Agriculture 8
Slide 10: Strategic locations enable shorter time-to-market and cost optimization
Strategic locations enable shorter time-to-market and enhanced cost optimization 4 modern plants (1 international) High-end machines France Slovakia Advanced Technology Centre USA Austria Binola Pune Globally competent Tool Rooms (20 tools/ a month USA Marketing Franchise Full-edged Machine Shop (in
Slide 11: Diversity across markets and industries provides a natural hedge
Diversity across markets and industries provides a natural hedge TWO WHEELER OEM FOUR WHEELER OEM TIER 1 & NON AUTO Not reliant on a single ‘anchor’ customer None of the customers contribute >15% of turnover AND MANY MORE…. 10
Slide 12: Q4 & FY2022 Operational & Financial Highlights
Q4 & FY2022 Operational & Financial Highlights
Slide 13: Business & Macro-demand Highlights
Business & Macro-demand Highlights: • The quarter saw a slight uptick in demand, especially in MHCV and PV segments. However, price hikes on the back of inflationary pressures and high fuel cost partially affected offtake across other categories • Revival in construction activities resulted in a sta
Slide 14: Six key challenges and how Alicon combated them
Alicon faced six key challenges that impacted demand & consumer Alicon combated these 6Cs sentiments in the fiscal year 2022 through: Focus on enriched product mix and driving improved volumes of higher margin products 1. COVID pandemic-related 2. Chip (semiconductor) disruptions shortages Collabora
Slide 15: Key Highlights for the EV industry
Key Highlights for the EV industry: • The domestic two wheelers’ EV monthly volumes have been surging post second wave of COVID. It increased to ~50,000 in the month of March. Similarly, passenger vehicles EV volumes have seen a sharp increase in the last few months • India has registered overall 16
Slide 16: PLI Scheme and Component Champion Incentive approval
– In 2021, the GoI approved the ‘Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry with a budgetary outlay of INR 259.38 billion to boost domestic manufacturing capacity and attract investments to the automotive manufacturing value chain – On March 15, 2022, 75 comp
Slide 17: Key Motto for FY 21-22: 3R
• Lower fixed expenses • In FY22, the Company has booked 81 • Lean and Agile manufacturing parts processes Sustainable Cost- New optimisation Business • New logo wins added in the EV • Focus on reducing overheads Wins: segment – 2 • Program to reduce interest cost • New logo added in ICE – 1 Key Mot
Slide 18: Q4 Total Income, EBITDA, PBT, PAT
Total Income EBITDA • In Q4, total Income was flat on a YoY basis. The Company 49.1 has done well to match the high 323.1 321.4 38.7 279.6 33.8 base. • Alicon reported a healthy uptick in sales on a QoQ basis Q4FY21 Q3FY22 Q4FY22 • Other income stood at Rs. 0.81 crore Q4FY21 Q3FY22 Q4FY22 EBITDA % 1
Slide 19: Q4 revenue split by auto and exports
Non-auto , 4% Exports, 22% Auto, 96% Domestic , 78% 18
Slide 20: FY22 Total Income, EBITDA, PBT, PAT
Total Income EBITDA • Despite facing 6C challenges in the year, the Company reported a 1,081.4 healthy performance 851.4 115.8 86.0 • Revenues grew higher by 27% • Gross profit stood at Rs. 534.2 crore, with margins at 49.5% FY21 FY22 • Alicon’s focus on cost-optimisation FY21 FY22 EBITDA % 10.1% 10
Slide 21: FY22 revenue split by auto and exports
Non-auto , 6% Exports, 26% Domestic Auto, 94% , 74% 20
Slide 22: Strengthening sales of value-added components to improve revenue mix
Product Mix (%) • Recorded an enhanced growth in contribution from the EV segment over the last 3 years 77 74 • Going forward, incremental sales would be a function of the value-add FY19A EV segment and other value-added components from ICE, Structural and FY22A non-auto segments 10 11 8 10 8 • Reve
Slide 23: Improving auto product mix through value-added products in PV+CV
Alicon’s Product Mix (%) • Value-addition a key strategic vector 50 driving multi-growth synergies for Alicon • Improved contribution from higher 45 FY19A value components in the PV and CV 43 segments driving augmented brand FY22A 42 value and enhanced sales • 2W share remains steady 2W+3W PV + CV F
Slide 24: Consolidated income statement
Particulars (Rs. crore) Q4FY22 Q4FY21 Y-o-Y Shift FY22 FY21 Y-o-Y Shift Net Revenue from Operations 320.56 322.57 -1% 1,078.05 848.57 27% Other Income 0.81 0.51 57% 3.32 2.86 16% Total Income 321.37 323.08 -1% 1,081.37 851.43 27% Total Expenditure 282.65 274.01 3% 965.57 765.41 26% Raw Material expe
Slide 25: Consolidated balance sheet
As on March As on March As on March As on March Liabilities (Rs. Crore) Assets (Rs. Crore) 31, 2022 31, 2021 31, 2022 31, 2021 a) Shareholders’ Funds 449.07 317.00 a) Non-current Assets 441.98 420.18 b) Non-current Liabilities (NCL) 152.15 191.12 a) Current Assets 560.38 486.76 - Long-term Borrowing
Slide 26: Commentary by Group CEO
Commenting on the performance, Mr. Rajeev Sikand, Group CEO , Alicon Castalloy said, “We have closed the year on an encouraging note, reporting strong performance despite several macro-challenges. The 6C challenges defined by Covid-induced disruptions, Chip shortages, Cost-based inflation, Cost of n
Slide 27: Concall Details
Casting The Future Valicon K | Caneal
Slide 28: Q4 FY22 Earnings Conference Call
Alicon Castalloy’s Q4 FY22 Earnings Conference Call Time & Date • 11:30 AM IST on Tuesday, May 17, 2022 Local dial-in numbers • +91 22 6280 1141 • +91 22 7115 8042 International Toll Free Number • Hong Kong: 800 964 448 • Singapore: 800 101 2045 • UK: 0 808 101 1573 • USA: 1 866 746 2133 27
Slide 29: Thank You
Thank You For further information, please contact: Tarunkumar Vyas Alicon Castalloy Ltd Tel: +91 74200 73369 E-mail: tarun.vyas@alicongroup.co.in Mayank Vaswani / Shikha Kshirsagar / Mit Shah CDR, India Tel: +91 22 98209 40953 / 99201 68314 Email: mayank@cdr-india.com shikha@cdr-india.com For more i