Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — FY2021 Earnings Presentation
32 slides from Sharda Motor Industries's earnings presentation, Jun 25, 2021
Slide 1: Submission of Investors Presentation to BSE and NSE
SM MIL: BSE/NS SE: 21-22/25 506 25th June, 2021 BS SE Limited Natio onal Stock Exchange E o India Limited of De epartment off Corporate Services ange Plaza, 5th Floor Excha Ph heroze Jeejee ebhoy Towers Plot No. N C/1, G Block Da alal Street, Mumbai M - 400 0 001 Bandra - Kurla Co omplex, Mum mbai -
Slide 2: Sharda Motor Industries Limited Investor Presentation – June 2021
Sharda Motor Industries Limited Lets do great things together Investor Presentation – June 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Motor Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Group Overview
GROUP OVERVIEW 3
Slide 5: Sharda Motor at a Glance
Sharda Motor at a Glance Leading Auto-ancillary Company with Global Aspirations • Offers highly engineered products and services commencing from emission to suspension systems, roof systems & supply chain management solutions • Strong market share and healthy long-term relationships with OEMs • Alig
Slide 6: Key Milestones
Key Milestones 1986 1994 2002 2013 2018 2020 Formed a Joint Formed a Joint Venture (JV) with Foray into Exhaust System Venture (JV) with Kinetic Green for business with a facility in IPO and listing on Established R&D for Germany based Lithium Battery Chennai & Agreement Delhi Stock Exchange Emissio
Slide 7: Manufacturing Infrastructure
Manufacturing Infrastructure SMIL Units Design & Development Centre Namyang, Korea • Sanand • Exhaust System • Nashik • Suspension Assembly Namyang • Exhaust System Haridwar • Roof System • Pune Delhi • Exhaust System • Suspension Assembly • Chennai • Tube Mill / R&D ‘State of Art’ manufacturing fac
Slide 8: Research & Development
Research & Development Established R&D unit for exhaust system in 2002 and emission system 2010 at Mahindra World City, Chennai A state of art facility to Design, Simulate, Testing and Prototype of exhaust system for PVs & CVs as well as non-automotive applications R&D Centre has the full capabiliti
Slide 9: Our Experience of more than 3 Decades
Our Experience of more than 3 Decades Timing: Achievement of all timing milestones Tractors – All Ranges Medium & Heavy Commercial Costs: Achievement of all cost targets Vehicle ranging from 2.5L – 8L Process stability: Method of mass production realized in prototype tooling Off-road vehicle ranging
Slide 10: Our Technology Expertise
Our Technology Expertise Acoustic Structural Responsibilities Concept Design CFD Analysis Proto Build Industrialization Testing SOP Simulation Analysis Passenger Vehicle Engine Small Commercial Vehicle Engine Light Commercial Vehicle Engine Medium Commercial Vehicle Engine Heavy Commercial Vehicle 3
Slide 11: Legislation Tailwinds
Legislation Tailwinds Leading to increase in content per Vehicle Legislation Impact Off-Road • With applicability of new emission norms, the addressable market segment is expected to grow a CAGR of ~114% in CEV IV* (April 2021) next 5 years CEV and TREM IV & V emission standards are for non road TRE
Slide 12: Growth Drivers
Growth Drivers ▪ Sustainable growth in operating profits vs Cyclical auto industry Operational efficiencies ▪ Backward integration by producing in-house bought out parts Technology – Key entry ▪ Strategic technology partnership giving access to world class technology in emission control barrier syst
Slide 13: Backward Integration & Opportunities
Backward Integration & Opportunities Structural Advantage Complete control Over process and supply Completely backward chain efficiencies, leading to integrated with two tube cost optimization and mills and three stamping With manufacturing gaining strategic advantage plants. infrastructure already
Slide 14: Electric Vehicle Drivers
Future Ready Getting Future Ready Electric vehicle market is estimated to be a Rs. 50,000 crore opportunity in India by 2025. Most of Indian consumers would consider Electric Vehicle Drivers buying an electric vehicle by the year 2022 Investment in Emerging De-Risking technologies The study also hig
Slide 15: Strategic Technology Partnerships – Key Entry Barrier
Strategic Technology Partnerships – Key Entry Barrier Eberspaecher and Sharda Motor Industries Ltd. entered Joint Venture – Lithium Battery into a JV to manufacture commercial vehicle exhaust Manufacturing systems in India. Eberspaecher brings in Global know-how Technical Kinetic Green^ and Sharda M
Slide 16: Exhaust Systems
Exhaust Systems From an idea to its manufacturing, Sharda Motor leads the market in this category Serving PV, CV and Catering to Domestic & Indian Market Share Annual Production Off-road segment. International customers of ~30% of ~1 million units 5 plants strategically located Catering to most of 3
Slide 17: Suspension Systems
Suspension Systems Expertise in this arena with its world-class manufacturing processes Indian Market Share Annual Production 2 manufacturing units of ~10% of ~1.5 lakh units Development, Concept, Design and Project planning & Digitizing Testing & Validation Arm Lower Control Front Suspension Upper
Slide 18: Experienced Board of Directors
Experienced Board of Directors Holds Bachelor’s Degree in commerce and has Mr. Ashok Kumar He holds Bachelor’s degree from IIT, Kharagpur Mr. Kishan Parikh overall experience of more than 30 years in area and P.H.D from Cambridge. Has more than 40 of Business Management and managing Financial Bhatta
Slide 19: Management Team
Management Team Mr. Ajay Relan Mr. Anand Dinkar Sontakke Managing Director Chief Operating Officer Responsible for overall manufacturing operations, Plant, BE in Mechanical from NIT, ICWAI (intermediate) & CPM from ISM, Research & Development, Product Development and USA. Has more than 29 years of e
Slide 20: Being Recognized
Being Recognized Silver award in Business Alignment Mahindra Supplier Excellence Award for Mahindra & Mahindra Annual Cummins India ABO Supplier Manufacturing Today Conference And Category by Ashok Leyland (2020-21) Business Partner of the Year (2015) Commodity Award (2014) Conference Award for Best
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS 20
Slide 22: Key Consolidated Financial Highlights
Key Consolidated Financial Highlights Rs. Crores Revenue EBITDA PAT* +155% +112% +318% 604 52 26 Quarter 237 25 6 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 +101% +35% +27% 1,737 129 67 96 52 863 Full Year FY20 FY21 FY20 FY21 FY20 FY21 21 * Including Profit/(loss) in JV and Associates
Slide 23: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) Q4FY21 Q4FY20 YoY FY21 FY20 YoY Revenue from Operations 604.2 237.1 155% 1,736.5 863.0 101% Cost of Goods Sold 493.7 168.7 1,419.5 585.9 Gross Profit 110.5 68.4 662% 317.1 277.1 14% Gross Profit Margin 18.3% 28.8% 18.3% 32.1% Employee Cos
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Equity & Liabilities (Rs. Crores) Mar-21 Mar-20 Assets (Rs. Crores) Mar-21 Mar-20 Non - Current Assets 218.1 225.0 Total Equity 430.9 364.6 Property Plant & Equipments 168.0 175.4 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.9 Right of Use Asset 10.5 10.1 Reserves
Slide 25: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. Crores) Q4FY21 Q4FY20 YoY FY21 FY20 YoY Revenue from Operations 604.2 237.1 155% 1,736.50 863 101% Cost of Goods Sold 493.7 168.7 1,419.50 585.9 Gross Profit 110.5 68.4 62% 317.0 277.1 14% Gross Profit Margin 18.3% 28.8% 18.3% 32.1% Employee Cost 2
Slide 26: Standalone Balance Sheet
Standalone Balance Sheet Equity & Liabilities (Rs. Crores) Mar-21 Mar-20 Assets (Rs. Crores) Mar-21 Mar-20 Non - Current Assets 232.7 227.7 Total Equity 445.4 367.2 Property Plant & Equipments 168.0 175.4 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.9 Right of Use Asset 10.5 10.1 Reserves &
Slide 27: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Crores) FY21 FY20 FY21 FY20 Net Profit Before Tax 105.3 78.5 105.3 78.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 29.6 -104.4 29.6 -138.0 Operating profit before working capital changes 134.8 -25.9 134.8 -59.6
Slide 28: Historical Proforma Financial Highlights
Historical Profoma Financial Highlights* Rs. Crores Revenue EBITDA PAT* 1,737 128 129 81 117 116 +24% 68 67 96 55 52 938 845 863 739 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 27 * Consolidated Excluding Seating Business * Including Profit/(loss) in JV and Associates
Slide 29: Adjusted ROCE
Adjusted ROCE* Particulars (Rs. Crores) FY21 FY20 FY19 FY18 FY17 Interest Income on Cash (A) 10.0 5.5 4.8 3.9 3.0 EBIT (B) 106.7 79.4 113.3 97.2 87.8 Equity Capital (C) 430.9 364.6 409.4 318.0 260.0 Debt Capital (D) 0 0 0 0 22.5 Cash & Equivalents (E) 263.0 146.3 141.1 73.7 59.9 Adj. ROCE = (B-A) /
Slide 30: Working Capital Movement
Working Capital Movement* Particulars (Rs. Crores) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Inventory (A) 138.6 106.9 97.3 74.2 60.7 Inventory Days (Inventories/COGS*365) (i) 36 67 57 49 40 Trade Receivables (B) 324.3 117.1 122.8 92.2 74.6 Trade Receivables Days (Trade Receivables/Revenue*365) (ii) 68 50
Slide 31: Corporate Social Responsibility Initiatives
Corporate Social Responsibility Initiatives Tree Planting Sharda Motor believes in the preservation of the environment. Our team of volunteers contributed their time, effort and sweat in making the environment better by planting trees and sapling of flowers. Stop Plastic Pollution Blood Donation Dri
Slide 32: For further information, please contact
For further information, please contact Company : Investor Relations Advisors: CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Srinivasan Narasimhan Mr. Kunal Bhoite / Mr. Jigar Kavaiya Chief Financial Officer Email: sn.s@shardamotor.com kunal.bhoite@sgapl.net / jigar.kavaiya@sgapl.net +9
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