Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Q4 FY2020 Earnings Presentation
41 slides from Escorts Kubota's earnings presentation, May 14, 2020
Slide 1: Exchange cover letter for Q4FY20 earnings presentation
ESCORTS May 14, 2020 BSE Limited National Stock Exchange of India Delhi Stock Exchange Phiroze Jeejeebhoy Limited Limited Towers, Dalal Street, Exchange Plaza, Bandra Kurla DSE House, 3/1, Mumbai -400 051 Complex, Bandra East, Mumbai - Asaf Ali Road, 400051 New Delhi - 110002 BSE-500495 DSE - 00012
Slide 2: Q4 FY20 Earning Presentation
Q4 FY20 | EARNING PRESENTATION 14th May 2020 BSE: 500495 | NSE: ESCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 1
Slide 3: Contents
Contents • Escorts Ltd. An Overview • FY20 at a Glance (Standalone) • Q4 FY20 at a Glance (Standalone) • YoY at a Glance • QoQ at a Glance • Credit Rating & Debt Profile • Management Message • Segmental Highlights • EAM • ECE • RED • Shareholding pattern • FY20 at a Glance (Consolidated) • Q4FY20 &
Slide 4: Escorts Limited: An Overview
Escorts Limited: An Overview India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of • Agri-machinery Escorts • Construction & Material Handling Equipment Agri Machinery (E
Slide 5: Escorts Ltd. FY20 at a Glance
Escorts Ltd. FY20 at a Glance Industry Escorts Ltd. Particulars (YoY) Variance Growth Growth Domestic Tractor Volume -10.0% -11.9% -1.9% Export Tractor Volume -18.0% 21.9% 39.9% Total Tractor Volume -10.8% -10.7% 0.1% Served Construction Equipment Volume -23.1% -27.1% -4.0% Railway Segment Revenue 2
Slide 6: Standalone FY20 at a Glance
Standalone FY 20 at a Glance Escorts Ltd. Particulars (YoY) FY20 FY19 Variance Domestic Tractor Market Share 11.6% 11.8% -20 bps Revenue ₹ 5,761.0 ₹ 6,196.4 -7.0% Material Cost 66.3% 68.4% -214 bps Manpower Cost 8.86% 7.61% 125 bps EBIDTA ₹ 675.8 ₹ 733.3 -7.6% EBIDTA Margin 11.7% 11.8% -10 bps PAT ₹
Slide 7: Standalone FY20 Highlights
Standalone FY20 Highlights •EAM at 86,018 • FY20: ₹ 675.8 Cr. EBIDTA Volume & Sales • FY20: ₹ 5,761 Cr. • FY20 Revenue Profit •YoY down by 10.8% • YoY down by 7.0% • Margin at 11.7% • YoY margin down by • PAT: ₹ 485.5 Cr. Division Wise Revenue 10 bps •ECE at 4,042 Split • Margin at 8.4%. •YoY down b
Slide 8: Standalone Q4FY20 YoY at a Glance
Standalone Q4FY20 YoY at a Glance Escorts Ltd. Particulars Q4FY20 Q4FY19 Variance Domestic Tractor Market Share 13.1% 15.0% -193 bps Revenue ₹ 1,380.7 Cr. ₹ 1,631.7 Cr. -15.4% Material Cost 62.2% 68.8% -675 bps Manpower Cost 9.4% 7.2% 214 bps EBIDTA ₹ 194.4 Cr. ₹ 189.8 Cr. 2.5% EBIDTA Margin 14.1% 1
Slide 9: Standalone Q4FY20 Highlights YoY
Standalone Q4FY20 Highlights YoY •EAM at 20.108 Volume & Sales • Q4: ₹ 194.4 Cr. EBIDTA • Q4: ₹ 1,380.7 Cr. • Q4 Profit Revenue •YoY down by 20.0% • YoY down by 15.4% • Margin at 14.1% highest quarterly • PAT: ₹ 140.4 Cr. Division Wise Revenue margin in last 15 • Margin at 10.2%. •ECE at 986 Split y
Slide 10: Standalone Q4FY20 QoQ at a Glance
Standalone Q4FY20 QoQ at a Glance Escorts Ltd. Particulars Q4FY20 Q3FY20 Variance Domestic Tractor Market Share 13.1% 11.9% 120 bps Revenue ₹ 1,380.7 Cr. ₹ 1,633.4 Cr. -15.5% Material Cost 62.2% 66.8% -459 bps Manpower Cost 9.4% 8.1% 124 Bps EBIDTA ₹ 194.4 Cr. ₹ 212.3 Cr. -8.4% EBIDTA Margin 14.1% 1
Slide 11: Standalone Q4FY20 Highlights QoQ
Standalone Q4FY20 Highlights QoQ •EAM at 20,108 Volume & Sales • Q4: ₹ 194.4 Cr. EBIDTA • Q4: ₹ 1,380.7 Cr. Profit Revenue •QoQ up by 19.9% • Q4 PAT: ₹ 140.4 • QoQ down by 15.5% • Margin at 14.1% highest quarterly Cr. Division Wise Revenue margin in last 15 • Margin at 10.2%. •ECE at 986 Split years
Slide 12: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- Rating (₹ Crs.) 600 553 436 480 361 263 50 277 6 120 .0 111.0 Rating maintained 96.0 at AA- with 500 100 .0 Stable outlook by 400 290 ICRA & CRISIL 80.0 206 302 50.0 57.0 300 60.0 200 220 40.0 159 220 263 31.0 28.6 230 18
Slide 13: Management Message
Management Message Nikhil Nanda, Chairman and Managing Director “ The recent epidemic has changed the business narrative and its time that our priority remains valuing life and securing business to support our community. Escorts, amidst the global crisis, is committed to safety & wellbeing of all ou
Slide 14: Segment Performance: EAM
Segment Performance : EAM Spreading Prosperity…..Improving Lives 14-05-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 13
Slide 15: Domestic Tractor Industry Overview
Domestic Tractor Industry Overview In Lakh Quarterly Fiscal Year 2.04 7.88 7.09 1.61 1.46 Q ended Mar'2019 Q ended Dec'2019 Q ended Mar'2020 FY2018-19 FY2019-20 • In Q4FY20 on Y-o-Y domestic Industry down by ~9%. • Industry in Q4FY20 on Y-o-Y basis in North and central region de-grew by 19%, whereas
Slide 16: Q4FY20 Segment Highlights: EAM
Q4FY20 Segment Highlights : EAM • Domestic at Revenue Volume •Market Share at • Q4: ₹ 167.7 Cr. EBIT Domestic Market Share 13.1% • At ₹ 1,058.4 Cr. 19,122 • YoY up by 3.6% • YoY down by 20.7% •YoY down by 193 • YoY down by 14.0% • QoQ down by 10.4% • QoQ down by 21.1% bps • QoQ down by 18.1% •QoQ up
Slide 17: Developments in FY20: CARE 24X7
Developments in FY20 CARE – 24X7 24X7 customer service across entire range of Powertrac and Farmtrac tractors. Now all our customers can just press a special button on their tractor any time of the day for any technical or other help and receive a call back from a trained Company Engineer within 2 m
Slide 18: Strategic Collaboration with Kubota Update
Strategic Collaboration with Kubota Update • Contract Manufacturing for Escorts and Kubota Product Manufacturing JV (50,000 • Factory under construction Phase 1 investment done in FY19 capacity) and phase 2 investment of approx. Rs. 60 cr. in FY20 • Production to start by Q3FY21. • Escorts Products
Slide 19: Segment Performance: ECE
Segment Performance : ECE PREFERRED PARTNER IN NATION BUILDING 14-05-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 18
Slide 20: Served-Construction Equipment Industry Overview
Served-Construction Equipment Industry Overview In ‘000s Quarterly Fiscal Year 17.8 62.4 14.0 13.5 48.2 Q ended Mar'2019 Q ended Dec'2019 Q ended Mar'2020 FY2018-19 FY2019-20 • Served industry (Backhoe Loaders, Pick n carry crane and Compactors) went down by 23% in FY20 wrt to LY. • In FY20 BHL indu
Slide 21: Q4FY20 Segment Highlights: ECE
Q4FY20 Segment Highlights : ECE • ECE at 986 • Q4: ₹ 9 Cr. Volume • Q4: ₹ 210 Cr. Revenue • Q4: Carne market Served industry Market Share EBIT • YoY down by 32.2% Share 40% • YoY down by 28.3% • YoY down by 56.7% • QoQ up by 5.6% • YoY up by ~230 bps • QoQ down by 3.0% • QoQ down by 14.3% • QoQ flat
Slide 22: Segment Performance: RED
Segment Performance : RED ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 14-05-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 21
Slide 23: Q4FY20 Segment Highlights: RED
Q4FY20 Segment Highlights : RED • As of Dec’19 • Q4: ₹ 108 Cr. Order Book Revenue • Q4: ₹ 15.1 Cr. EBIT more than ₹ • YoY up by 4.3% • YoY down by 3.3% • QoQ down by 13.2% 500 Cr. • QoQ down by 34% •Execution time 12~15 Months • Breakup • Margin at 14% • Key Highlight • YoY down by 111 • New product
Slide 24: Shareholding Pattern
↑ SHAREHOLDING PATTERN 31.9% 33.9% 32.5% 32.2% 30.5% 28.0% 25.9% 27.3% 27.6% 29.3% 40.1% 40.2% 40.2% 40.2% 40.2% Mar'2019 Jun'2019 Sept'2019 Dec'2019 Mar'2020 Promoters + Trust Institutions* Public * FPI/Financial Institutions/ Banks/Insurance Companies As of quarter ended 14-05-2020 Copyright @ Esc
Slide 25: Consolidated FY20 at a Glance
Consolidated FY 20 at a Glance Escorts Ltd. Particulars (YoY) FY20 FY19 Variance Revenue from operations ₹ 5,810.1 Cr. ₹ 6,262.0 Cr. -7.22% Material Cost 66.1% 68.3% -219 bps Manpower Cost 8.96% 7.74% 122 Bps EBIDTA ₹ 662.3 Cr. ₹ 724.5 Cr. -8.6% EBIDTA Margin 11.40% 11.57% -17 bps PAT ₹ 471.7 Cr. ₹
Slide 26: Standalone Results
Standalone Results Escorts Limited Statement of Standalone Audited Financial Results for the quarter and year ended March 31, 2020 Rs. in Crores Standalone results 3 Months ended Preceding 3 months Corresponding 3 For the year ended ended months ended in Particulars the previous year 31-03-2020 31-1
Slide 27: Standalone Results
Standalone Results Profit from discontinued operations before tax - - - - 1.89 Tax expense of discontinued operations - - - - 0.66 Net profit from discontinued operations after tax - - - - 1.23 Net profit for the period 140.40 153.05 121.35 485.54 484.91 Other comprehensive income Items that will no
Slide 28: Standalone Results: Assets and Liabilities
Standalone Results Statement of assets and liabilities Rs. in Crores Particulars Particulars Standalone Standalone Audited Audited Audited Audited As at As at As at As at 31-03-2020 31-03-2019 31-03-2020 31-03-2019 EQUITY AND LIABILITIES ASSETS 1 Equity 1 Non-current assets a) Equity share capital 1
Slide 29: Standalone Results: Segment Revenue and Results
Standalone Results ESCORTS LIMITED Segment wise revenue, results and capital employed for the quarter and year ended March 31, 2020 Rs. in Crores Standalone 3 Months ended Preceding 3 months Corresponding 3 For the year ended Sl. ended months ended in the Particulars previous year No. 31-03-2020 31-
Slide 30: Standalone Results: Segment Assets and Liabilities
Standalone Results Standalone 3 Months ended Preceding 3 months Corresponding 3 For the year ended Sl. ended months ended in the Particulars previous year No. 31-03-2020 31-12-2019 31-03-2019 31-03-2020 31-03-2019 Audited* Unaudited Audited* Audited Audited 3 Segment assets a) Agri machinery product
Slide 31: Standalone Results: Notes
Standalone Results Notes : 1 The above Standalone Financial Results for the quarter and year ended March 31, 2020 were reviewed by the Audit Committee and approved by the Board of Directors of Escorts Limited ("the Company") in their respective meetings held on May 14, 2020. 2 Exceptional items (los
Slide 32: Standalone Cash Flow Statement
Standalone Results Escorts Limited Standalone Cash Flow Statement for the year ended March 31, 2020 (₹ crores) Twelve months ended A Cash flow from operating activities 31 Mar 2020 31 Mar 2019 Profit before tax from Continuing operations 638.84 721.20 B Cash flows from investing activities Discontin
Slide 33: Consolidated Results
Consolidated Results Escorts Limited Statement of Consolidated Audited Financial Results for the quarter and year ended March 31, 2020 Rs. in Crores 3 Months ended Preceding 3 Corresponding 3 For the year ended months ended months ended in the previous year 31-03-2020 31-12-2019 31-03-2019 31-03-202
Slide 34: Consolidated Results
Consolidated Results Profit from discontinued operations before tax - - - - 1.89 Tax expense of discontinued operations - - - - 0.66 Net profit from discontinued operations after tax - - - - 1.23 Net profit for the period 127.73 154.79 116.42 471.72 477.90 Other comprehensive income Items that will
Slide 35: Consolidated Results: Assets and Liabilities
Consolidated Results Statement of assets and liabilities Statement of assets and liabilities In ₹ Cr. Particulars As at 31-03-2020 As at 31-03-2019 Particulars As at 31-03-2020 As at 31-03-2019 Audited Audited Audited Audited ASSETS EQUITY AND LIABILITIES 1 Non-current assets 1 Equity a) Property, p
Slide 36: Consolidated Results: Segment Revenue and Results
Consolidated Results ESCORT S LIMIT ED Segment wise revenue, results and capital employed for the quarter and year ended March 31, 2020 Rs. in Crores Consolidated 3 Months ended Preceding 3 months Corresponding 3 For the year ended Sl. Particulars ended months ended in the No. previous year 31-03-20
Slide 37: Consolidated Results: Segment Assets and Liabilities
Consolidated Results 3 Segment assets a) Agri machinery products 2,972.09 2,702.06 3,005.26 2,972.09 3,005.26 b) Construction equipments 391.65 358.59 420.54 391.65 420.54 c) Railway equipments 288.90 285.95 214.69 288.90 214.69 d) Auto ancillary products (discontinued operation) 0.69 0.70 1.10 0.69
Slide 38: Consolidated Cash Flow Statement
Consolidated Results Escorts Limited Consolidated Cash Flow Statement for the year ended 31 March 2020 (₹ crores) Year ended Year ended 31 March 2020 31 March 2019 A Cash flow from operating activities Profit before tax from B Cash flows from investing activities Continuing operations 625.25 713.78
Slide 39: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • Q4FY20 – Represents the 3 months period from 1st January 2020 to 31st March 2020. • Q3FY20 – Represen
Slide 40: Safe Harbor
SAFE HARBOR Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 41: Thank You
Thank You SCORTS 14-05-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 40