Slide 1: Cover letter to stock exchanges for Q3FY2021 results call
January 19, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD NCD Symbol: CL23 and CL25 CP Listed ISIN: INE482A14AC1 Dear Sir/Mada
Slide 2: Q3 FY21 – Investor Presentation | 19th January 2021
An Group Company Q3 FY21 – Investor Presentation | 19th January 2021
Slide 3: Disclaimer
Disclaimer 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 development, market position, expenditures,
Slide 4: Table of Contents
Table of Contents Section 1: RPG Group Overview 4-6 Section 2: Business Overview 7-18 Section 3: Operational & Financial Overview 19-27
Slide 5: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 6: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 7: RPG Group: Key Financials
RPG Group: Key Financials FY16-20 Gross Total Income (Rs Cr.) FY15-19 CAGR: EBITDA PAT CAGR: 7.6% EBITDA 6.5% PAT 6.0% 2,594 2,423 23,833 24,682 2,218 2,014 2,045 21,766 19,271 20,052 1,031 1,099 1,111 879 980 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Market Cap Net Worth ROE ROCE 8,441 25,0
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive Independent Director Pierre E. Cohade Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive Non E
Slide 10: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Senior Vice President Managing Director Chief Financial Officer Chief Operating Officer – Human Resources Dilip Modak Vijay Gambhire Saurav Mukherjee Peter Becker Senior Vice President Chief Executive – CEAT Specialty, Senior Vice
Slide 11: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 3,400+ dealers, 300+ exclusive CEAT franchisees 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 p
Slide 12: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products Strengthening OEM Relationships Key developments ▪ Focus on OEM, recent entries in new models – Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Dare 125, Hero Duet E, Maruti Suzuki Alto VXI+, Hero Glammer Refresh, Mahindra Jeeto Z Series, Tata Int
Slide 14: Strong Brand
2 Strong Brand Continued association with Sports Amir Khan appointed as CEAT’s Brand Ambassador Strategic Timeout partners for JIO Women’s T20 Challenge Official Tyre partner for CEAT extended its Jamshedpur partnership with Torino Football Club Football Club – one of the most historic and prestigio
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe 3400+ 275+ 600+ Dealers & 2W Distributors Districts Channel Partners 300+ 35,000+ 400+ CEAT Franchisees Sub-dealers MBO / SIS 14
Slide 16: Deep OEM Partnerships
4 Deep OEM Partnerships TATA Motors Ashok Leyland VECV Escorts AMW TAFE Mahindra Daimler Eicher SML Isuzu JBM Group Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Nissan Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piag
Slide 17: World Class R&D
5 World Class R&D State-of-the-Art R&D Center, Halol R&D Office, Germany ▪ Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine ▪ Focus on upcoming technologies like Electric Vehicle, Sustainability and Smart Tyres 16
Slide 18: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets ▪ Exports to 90+ Countries in 7 Europe Cluster clusters US Cluster ▪ Sri Lanka: Manufacturing facility and Leadership position Middle East in the market and with 50+% Cluster market share Far East 1 Cluster Far East 2 Cluster ▪ Focused pr
Slide 19: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 20: Q3 FY21 Operational Highlights
Q3 FY21 Operational Highlights Award for CEAT’s Halol plant Launches on CEAT Received Employers' Federation of India National Official tyre partners for Award for Excellence in Employee Relations Nissan MAGNITE and all new Hyundai i20 19
Slide 21: Consolidated: Q3 FY21 Financial Highlights
Consolidated: Q3 FY21 Financial Highlights Q3 FY21 v/s Q2 FY21 (Q-o-Q) Q3 FY21 v/s Q3 FY20 (Y-o-Y) ▪ Net revenue from operations grew by 12.3% to INR 2,221 ▪ Net revenue from operations grew by 26.1% at INR 2,221 Crs from INR 1,978 Crs Crs from INR 1,762 Crs ▪ Gross margin contracted to 45.5% from 4
Slide 22: Consolidated: Financial Trends – Revenue growth and margins
Consolidated: Financial Trends Revenue growth 6,985 6,779 6,283 5,722 5,447 5,320 Net Sales (Rs Cr) FY16 FY17 FY18 FY19 FY20 YTD Q3 FY21 14.9% 16.0% 14.1% Margin trends 14.0% 12.0% 10.2% 809 741 751 12.0% 685 663 EBITDA (Rs 638 10.9% 10.0% Cr) 9.5% 8.0% EBITDA to 6.0% 4.0% Net Sales % 2.0% 0.0% FY16
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 8.0% 9.0% 450 8.0% 400 6.3% 7.0% 5.2% 350 6.0% PAT (Rs Cr) PAT trends 300 3.6% 5.0% 250 3.7% 3.4% 438 4.0% PAT to Net 200 361 3.0% 279 150 100 233 251 230 2.0% Sales% 1.0% 50 - 0.0% FY16 FY17 FY18 FY19 FY20 YTD Q3 FY21 Notes All figures are per IND AS 22
Slide 24: Consolidated: Q3 FY21 Financials
Consolidated: Q3 FY21 Financials All figures in INR Cr Parameter Q3 FY20 Q2 FY21 Q3 FY21 QoQ YoY YTD Q3 FY20 YTD Q3 FY21 YoY Net Revenue from operations 1,761.8 1,978.5 2,221.3 12% 26% 5,205.4 5,319.9 2% Raw Material 1,004.7 1,059.2 1,209.6 14% 20% 3,059.9 2,938.0 -4% Gross margin 757.0 919.3 1,011.
Slide 25: Consolidated: Leverage / coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 663 924 872 1498 1929 1556 200 0 1693 180 0 160 0 LT Debt (Rs Cr) Debt breakup 140 0 1274 1479 120 0 100 0 ST Debt (Rs Cr) 0.66 866 800 676 0.54 0.49 0.38 600 630 0.32 0.33 400 D/E 200 196 224 236 0 34 58 77 FY 16 FY 17 FY18 FY19 FY20 Q3
Slide 26: Standalone: Q3 FY21 Financials
Standalone: Q3 FY21 Financials All figures in INR Cr Parameter Q3 FY20 Q2 FY21 Q3 FY21 QoQ YoY YTD Q3 FY20 YTD Q3 FY21 YoY Net Revenue from operations 1,750.4 1,965.1 2,212.5 13% 26% 5,141.3 5,293.8 3% Raw Material 996.4 1,049.3 1,206.5 15% 21% 3,039.9 2,925.4 -4% Gross margin 754.0 915.9 1,006.0 10
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 1,400 2,500,000 1,200 2,000,000 1,000 800 1,500,000 600 1,000,000 400 500,000 200 - - Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Source : Stock Exchange. The above data is updated till 31st Dec
Slide 28: Thank You
T H A N K Y O U