Ppap Automotive Limited · NSE:PPAP
Ppap Automotive — Q2 FY25 Earnings Presentation
50 slides from Ppap Automotive's earnings presentation, Nov 12, 2024
Slide 1: Exchange filing cover letter
12th November, 2024 The Listing Department The Listing Department BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai - 400051 Symbol: 532934 Symbol: PPAP Subject: Analysts and Inve
Slide 2: PPAP Automotive Limited Investor Presentation November 2024
PPAP Automotive Limited PPAP Automotive Limited Let’s Grow Together INVESTOR PRESENTATION – November 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by PPAP Automotive Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: PPAP at a Glance
PPAP at a Glance 45+ 5 50+ Years Of Legacy Varied Technologies Diversified Customers No. 1 Market Leader in 5 2,600+ 5+ Plastic sealing systems Business Segments No. of SKUs Electric Vehicles 10 225k 250+ Pan-India Operating SKUs Under Parts Shipped Per Day Facilities Development 3
Slide 5: Q2 & H1FY25 Highlights
Q2 & H1FY25 Highlights 4
Slide 6: Management Commentary
Management Commentary Commenting on the results and performance for Q2 & H1FY25, Mr. Ajay Kumar Jain, Chairman & MD of PPAP Automotive Ltd said: “We have successfully started achieving the promising targets that we have set for the financial year, a testament to the hard work and dedication of our e
Slide 7: Industry Highlights
Industry Highlights 1 • Total Domestic Passenger vehicle sales marginally increased by 0.5% to 20.8 lakh units in H1FY25 compared to H1FY24, there was a notable increase of 13.2% in utility vehicle sales Passenger Vehicles • Out of the Passenger vehicles, Passenger cars sales declined by 18.5% in H1
Slide 8: Key Operational Highlights – H1FY25
Key Operational Highlights – H1FY25 Won Overall Excellence award from MSIL Initiated export of Aftersales products 150+ new products launched in Aftermarket 72% Capacity Utilization Recommended dividend of Rs 1/Share 7
Slide 9: Standalone Performance Highlights Q2 and H1 FY25
Standalone Performance Highlights Q2 and H1 FY25 (INR Cr) Revenue Operating EBIDTA PAT 9.4% 10.1% 12.7% 1.9% 1.2% 3.9% 5.6 17.9 140.5 141.3 13.2 118.7 12.0 2.7 1.4 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1 FY25 Q2FY25 Q2 FY24 Q1 FY25 Q2FY25 Revenue Operating EBIDTA PAT 8.2% 11.5% 0.4% 2.7% 251.8 260.0 29.9 7.0
Slide 10: Consolidated Performance Highlights Q2 and H1 FY25
Consolidated Performance Highlights Q2 and H1 FY25 (INR Cr) Revenue Operating EBIDTA PAT 8.2% 9.6% 11.3% 0.4% 0.1% 2.0% 2.9 16.4 148.4 144.9 122.7 12.2 11.8 0.5 0.1 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1 FY25 Q2FY25 Q2 FY24 Q1 FY25 Q2FY25 Revenue Operating EBIDTA PAT 7% 10.5% -0.8% 1.1% 264.9 267.5 28.2 3.0
Slide 11: Consistent Growth in EBITDA & PAT Margins At Record High - Standalone
Consistent Growth in EBITDA & PAT Margins At Record High - Standalone (INR Cr) CQGR ~31% 22 12.7% 14. 0% 10.1% 12. 0% 9.4% 9.4% 17 9.1% 18 10. 0% 6.6% 12 13 12 8.0 % 12 7 11 6.0 % 4.0 % 2 7 2.0 % -3 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 0.0 % EBITDA EBITDA Margin(%) 10 8 3.9% 5.0 % 6 4 1.9
Slide 12: Consistent Growth in EBITDA & PAT Margins At Record High - Consolidated
Consistent Growth in EBITDA & PAT Margins At Record High - Consolidated (INR Cr) CQGR ~33% 19 12. 0% 11.3% 17 9.6% 8.5% 10. 0% 15 8.2% 8.0% 16 13 8.0 % 12 11 9 5.4% 12 12 6.0 % 7 10 4.0 % 5 3 6 2.0 % 1 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 -1 0.0 % EBITDA EBITDA Margin(%) 4 2 1 0 3 0 -3 -3
Slide 13: Segmental Revenue Breakup
Segmental Revenue Breakup H1FY24 H1FY25 Revenue Mix by Client for H1FY25 11.0% 6.0% 8% 6.0% 1.0% 38.0% 12.0% 2.0% 4.0% 94.0% 92% 9.0% 3.0% 14.0% Maruti MG Motors Toyota Parts Tools & Others SMG Renault + Nissan others Hyundai Honda Tata Volkswagen+Skoda 12
Slide 14: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Particulars (INR Cr) Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) H1FY25 H1FY24 Y-o-Y (%) Revenue from operations 141.3 140.5 0.6% 118.7 19.1% 260.0 251.8 3.2% Comments: Revenue was maintained on a COGS 79.7 83.9 67.1 146.8 150.9 steady state basis. However, Gross
Slide 15: Standalone Balance Sheet
Standalone Balance Sheet Liabilities (INR cr) Sep-24 Mar-24 Assets (INR cr) Sep-24 Mar-24 Non-Current Assets Equity Property, Plant and Equipment 275.0 284.8 Equity Share capital 14.1 14.0 Capital work-in-progress 23.5 14.7 Other Equity 304.5 399.0 Other Intangible Asset 8.8 8.7 Investment Property
Slide 16: Standalone Cashflow Statement
Standalone Cashflow Statement Particulars (INR cr) Sep-24 Sep-23 Net Profit Before Tax 9.3 1.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 21.3 20.5 Operating profit before working capital changes 30.6 21.6 Changes in working capital -0.6 -4.8 Cash generated from Operations
Slide 17: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (INR Cr) Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) H1FY25 H1FY24 Y-o-Y (%) Revenue from operations 144.9 148.4 -2.4% 122.7 18.1% 267.5 264.9 1.0% COGS 81.8 90.3 69.4 151.2 161.4 Gross Profit 63.1 58.1 8.6% 53.3 18.2% 116.3 103.4 12.5% Gross Profit Ma
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (INR cr) Sep-24 Mar-24 Assets (INR cr) Sep-24 Mar-24 Equity Non-Current Assets Property, Plant and Equipment 289.7 300.3 Equity Share capital 14.1 14.0 Capital work-in-progress 23.6 14.8 Other Equity 270.4 268.9 Other Intangible Asset 9.4 9.3 Non-Controlling In
Slide 19: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (INR cr) Sep24 Sep23 Net Profit Before Tax 4 -3.5 Adjustments for: Non-Cash Items / Other Investment or Financial Items 24.4 22.8 Operating profit before working capital changes 28.4 19.3 Changes in working capital -1.2 3.5 Cash generated from Operations 2
Slide 20: Way Forward
Way Forward 19
Slide 21: Strategic Priorities
Strategic Priorities Automotive Parts Business: • Timely execution of a robust order book over next 5 years • Focus on increasing content per vehicle through development of premium and value-added products that will command higher margins • To onboard new customers and increase the share of business
Slide 22: Guidance and Roadmap to Margin Expansion
Guidance and Roadmap to Margin Expansion Growth Drivers for Margin Expansion FY24 FY25E FY26E Sweating of Existing Assets and New Investments Revenue Rs 523 Cr Rs 550 to 575 Cr Rs 600 to 660 Cr Softening of Raw Material Prices EBITDA Rs 40 Cr Rs 60 to 65 Cr Rs 75 to 80 Cr Improving Material Yield Ra
Slide 23: Company Overview
Company Overview 22
Slide 24: Board of Directors
Board of Directors Ajay Jain Abhishek Jain Deepak Kumar Sethi Vinay Kumari Jain Celine George Rohit Rajput Chairman and CEO and Independent Director Non-Executive Director Independent Director Independent Director Managing Director Managing Director • Bachelor of Commerce • Bachelor of Science in •
Slide 25: Journey Towards Excellence
Journey Towards Excellence 2023-2024 1978 – 1990 2002 – 2007 o Listed on BSE and 2015 – 2016 NSE o Established Plant - III o Established Plant - V (Surajpur) and Plant - (Vallam Vadgal) and o Conversion of IV (Pathredi) Plant VI (Ukhlod) partnership firm to o M&M, Renault Nissan o VW, Hyundai & Kia
Slide 26: Manufacturing Facilities
Manufacturing Facilities Noida, UP Plastic Extrusion Greater Noida, UP PVC / TPO / PP MATERIAL Chennai, TN Viramgam, GJ • 4 Locations; 15 Extrusion Lines • Bending technology, Welding technology, Chrome SUS extrusion and Notching technology Rubber Extrusion Noida, UP EPDM & TPV MATERIAL Greater Noid
Slide 27: Operating Locations Pan India Presence
Operating Locations Pan India Presence Note –Map not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness. 26
Slide 28: Product Portfolio – 4W Parts
Product Portfolio – 4W Parts 27
Slide 29: Product Portfolio – 4W Parts
Product Portfolio – 4W Parts 28
Slide 30: Product Portfolio – 2W/3W Parts
Product Portfolio – 2W/3W Parts 29
Slide 31: Esteemed Clientele
Esteemed Clientele Passenger Vehicle Commercial Wheeler Vehicle Two- V Non Automotive Energy Storage Solutions Content per vehicle for Key OEMs Up to INR 3000 UP TO INR 6000 UP TO INR 5000 UP TO INR 8000 UP TO INR 2500 30
Slide 32: Business Segments
Business Segments Commercial Tool Industrial Products Li-on Battery Automotive Parts Aftermarket Room Business Business Core competence in developing Development of Plastic Injection Extension of core competence of 100% owned subsidiary of PPAP Development and sales of spare Automotive Bod
Slide 33: Business Segments – Commercial Tool Room
Business Segments – Commercial Tool Room Key Highlights Glove Box State of the art Manufacturing facility for development of global level plastic injection molds Capacity to make mold up to 1.8 mtr Develop of molds for Automotive, Electrical, White Goods and Medical sector Reinforcement & C Pi
Slide 34: Business Segment – Industrial Product
Business Segment – Industrial Product Key Highlights Plastic Extrusion Leveraging the use of existing plastic and rubber extrusion along with injection molding Started Export during last quarter 70+ product developed, 10+ under development Focus on developing the Sealings, Gaskets, Hoses and
Slide 35: Business Segments – Li-on Battery
Business Segments – Li-on Battery Key Highlights E2W/E3W Battery Pack State of art assembly facility AIS 156 Certified Battery Pack – 2 / 3 Wheeler application Leveraging the growth of Electric Vehicles, Solar Energy, Energy Storage systems Launched more than 10 products since launch Desig
Slide 36: Business Segments – Aftermarket
Business Segments – Aftermarket Key Highlights 1200+ SKUs Focus on expanding the domestic network as well as international market currently available under the categories of Started export in quarter 3 Interior and Exterior Accessories and Parts Launched 550+ more products in aftermarket in FY
Slide 37: Product Portfolio – Aftermarket
Product Portfolio – Aftermarket Spare Parts Available Across Body Side Bumper Fender Lining Battery Box Front Lower Grill Mud Flap Moulding Horn Door Visor Grill Glass Double Armed Hook Jimny Power Supply Compound Car Accessories • Premium Car accessories • Interior • Phone holder • Rear tray Smart
Slide 38: PPAP – Strengths
PPAP – Strengths Strong R&D Capabilities Pioneering innovation, our strong Strategic & Technology R&D capabilities fuel our competitive Strong Distribution and edge, enabling us to shape the Driven Alliances industry landscape and meet Localisation Our commitment to strategic and evolving market dem
Slide 39: Environment, Social and Governance Review
Environment, Social and Governance Review 38
Slide 40: Approach & Strategy
Approach & Strategy Sustainable Strategy Sustainability for Long-Term Governance Structure 39
Slide 41: Corporate Sustainability
Corporate Sustainability Sustainability Report Public Disclosure of PPAP FY 23-24 Sustainability (ESG) Targets ➢ Achieve net zero by 2045. Our total renewable 188.37 tCO2 7359 KL water 233.85 ton of ➢ Achieve carbon-neutral energy production of Emission saving via water Recycled input 2912 GJ is eno
Slide 42: Awards & Accolades
Awards & Accolades Overall Performance Zero Defect Supplies Award Annual Supplier –TATA Overall Excellence -MSIL Gold Award - Toyota Vendor Award- MSIL - Toyota MOTORS Delivery Performance Best Performance Regional Contribution Award- Silver Award for Overall, Gold Award - MSIL Award- Asahi India Aw
Slide 43: Historical Financials
Historical Financials 42
Slide 44: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (INR cr) FY24 FY23 FY22 Revenue from operations 503.9 492.3 409.1 COGS 299.1 300.8 247.1 Gross Profit 204.8 191.5 162.0 Gross Profit Margin 40.6% 38.9% 39.6% Employee Expenses 90.7 79.0 69.6 Other Expenses 70.2 66.9 53.3 EBITDA 43.8 45.6 39.0 EBITDA Mar
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet Liabilities (INR cr) FY24 FY23 FY22 Assets (INR cr) FY24 FY23 FY22 Equity Non-Current Assets Property, Plant and Equipment 284.8 292.6 261.4 Equity Share capital 14.0 14.0 14.0 Capital work-in-progress 14.7 8.9 20.8 Other Equity 299.0 302.5 298.8 Other Intangible Asset 8.7 7
Slide 46: Standalone Cashflow Statement
Standalone Cashflow Statement Particulars (INR cr) FY24 FY23 FY22 Net Profit Before Tax 3.2 9.0 6.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 42.5 35.9 31.5 Operating profit before working capital changes 45.7 44.9 37.6 Changes in working capital -7.5 -3.9 6.3 Cash genera
Slide 47: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR cr) FY24 FY23 FY22 Revenue from operations 522.9 511.1 421.9 COGS 312.9 313.6 255.8 Gross Profit 210.0 197.5 166.1 Gross Profit Margin 40.2% 38.6% 39.4% Employee Expenses 95.2 82.9 72.2 Other Expenses 75.1 70.6 55.2 EBITDA 39.7 43.9 38.6 EBITDA M
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (INR cr) FY24 FY23 FY22 Assets (INR cr) FY24 FY23 FY22 Equity Non-Current Assets Equity Share capital 14.0 14.0 14.0 Property, Plant and Equipment 300.3 309.7 273.9 Capital work-in-progress 14.8 9.0 20.8 Other Equity 268.9 280.7 289.9 Other Intangible Asset 9.3
Slide 49: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (INR cr) FY24 FY23 FY22 Net Profit Before Tax -8.1 -5.1 0.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 49.1 48.6 36.7 Operating profit before working capital changes 41.1 43.5 36.9 Changes in working capital 1.3 -11.2 -5.3 Cash g
Slide 50: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1995PLC073281 CIN: U74140MH2010PTC204285 Ms. Pankhuri Agarwal Mr. Aakash Mehta / Mr. Rahul Agarwal investorservice@ppapco.com aakash.s.m@sgapl.net / rahul.agarwal@sgapl.net +91 98706 79263 / +91 98214 38864