Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — Q2 FY2024 Earnings Presentation
32 slides from Sharda Motor Industries's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter for investor presentation
SMIL: BSE/NSE: 23-24/1011 10th November, 2023 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor Pheroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602)
Slide 2: Sharda Motor Industries Investor Presentation November 2023
San SHARDA MOTOR INDUSTRIES LIMITED Investor Presentation November 2023 ying Let’s do great things together! www.shardamotor.com
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), has been prepared by Sharda Motor Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the
Slide 4: 3
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Slide 5: Leading Auto-ancillary Company with Global Aspirations
Foundation Founded in 1986, Sharda Motor has scaled to numerous highs in the automotive industry. Leading Auto-ancillary Company with Global Aspirations ▪ Offers highly engineered products and services commencing from emission to World class Manufacturing Infrastructure suspension systems, roof syst
Slide 6: Company milestones since 1986
1987 IPO and listing on Delhi Stock Exchange 5
Slide 7: Presence in Pan India and Joint Venture Abroad
Presence in Pan India Delhi Haridwar Sanand Pune Chennai Exhaust System – 2 Sanand plants Exhaust System Exhaust System Suspension Tube Mill / R&D Namyang Assembly Nashik Nashik Haridwar Delhi Pune Exhaust System Exhaust System Roof System Pune Stamping of Parts & Corporate Office Suspension Assembl
Slide 8: R&D unit for exhaust and emission systems
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 capabilities to cater to various
Slide 9: Timing: Achievement of all milestones
Passenger Vehicle Full Range of Full Range of Medium & Heavy Full Range of ranging Stationery Engine Off-Road Vehicle Commercial Vehicle Tractors Engines 0.6L – 3L ranging 2.5L – 8L Timing: TIMING COST PROCESS PROCESS TESTING PTOTOTYPES Achievement of Achievement of STABILITY Integration of new All
Slide 10: Responsibilities: Concept to SOP
Concept Acoustic Structural Responsibilities CFD Analysis Proto Build Industrialization Testing SOP Design Simulation Analysis Passenger Vehicle Engine Small Commercial Vehicle Engine Light Commercial Vehicle Engine Medium Commercial Vehicle Engine Heavy Commercial Vehicle 3 Wheeler Passenger / Load
Slide 11: Leading to increase in content per Vehicle
Leading to increase in content per Vehicle Legislation Impact CEV IV & V and TREM IV & V emission standards • With applicability of new emission norms, the Off Off-Road are for non road diesel engines used in Highway Addressable Market will become construction equipment and agricultural tractors equ
Slide 12: Operational efficiencies, technology entry barrier, asset efficiency
• Sustainable growth in operating profits vs Cyclical auto industry Operational efficiencies • Backward integration by producing in-house bought out parts • Strategic technology partnership giving access to world class technology in emission Technology – Key entry barrier control system act as a key
Slide 13: Structural Advantage, Value Accretion, Complete Control
Leveraging of existing Structural Advantage Value Accretion Complete Control setup for new applications Completely backward With manufacturing Over process and supply Established expertise in integrated with two infrastructure already in chain efficiencies, leading to manufacturing of tube mills and
Slide 14: Electric Vehicle Drivers: Getting Future Ready
Getting Future Ready Electric vehicle market is estimated to be a Rs. 50,000 crore opportunity in India by 2025. Electric Vehicle Drivers India could be a leader in shared mobility by 2030, providing opportunities for electric vehicles De-Risking Investment in Emerging Technologies EV market in Indi
Slide 15: Joint ventures and technical collaboration
Joint Venture Technical Joint Venture Exhaust Systems Collaboration Lithium Battery Manufacturing Purem* (Formally known as Entered a technical Kinetic Green^ and Sharda Eberspaecher) and Sharda Motor partnership with Bestop Inc. Motor Industries Ltd. entered Industries Ltd. entered into a JV to USA
Slide 16: Exhaust systems: from idea to manufacturing
Catering to Serving PV, CV Annual Indian Market Domestic & and Off-road Production of Share of ~30% International segment. ~1 million units customers 5 plants strategically located Catering to most of the 3 stamping plants managing across India and present in OEM’s in PV segment all critical stampin
Slide 17: Suspension systems expertise and manufacturing
Annual Production of ~1.8 Indian Market Share of ~10% 2 manufacturing units lakh units Development, Project planning & Testing & Concept, Design and Digitizing Validation Expertise in this arena with its world-class manufacturing processes Arm Lower Control Front Suspension Upper Arm Assy Assy. Lowe
Slide 18: Board of Directors
Mr. Kishan Parikh Chairman, Independent Director Holds Bachelor’s Degree in commerce and has 30+ years of experience in area of Business Management and managing Financial activities Mr. Ashok Kumar Bhattacharya Independent Director He holds Bachelor’s degree from IIT, Kharagpur and PhD. from Cambrid
Slide 19: Management team
Mr. Ajay Relan Managing Director Responsible for overall manufacturing operations, Plant, Research & Development, Product Development and complete supervision of the Company Mr. Deepak Bhaskar Chief People Officer MBA in HR from SIMS, Pune & Executive MBA in Business Management from MDI, Gurgaon. Ha
Slide 20: Awards and recognition
21awqzs 21awqzs 21awqzs Silver award in Business Silver award in Business Mahindra Supplier Excellence Special Appreciation BS6 Mahindra & Mahindra Annual Alignment Category by Ashok Alignment Category by Ashok Award for Business Partner of the by Mahindra & Mahindra (2021) Commodity Award (2014) Le
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Q2 FY24 Revenue, EBITDA, PAT
INR Crores REVENUE EBITDA PAT* +9% +31% +47% 763 80 99 698 654 76 55 55 68 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 * Including Profit/(loss) in JV and Associates 21 21
Slide 23: H1 FY24 Revenue, EBITDA, PAT
INR Crores REVENUE EBITDA PAT +7% +23% +35% 1,417 168 135 136 100 1,326 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 * Including Profit/(loss) in JV and Associates 22 22
Slide 24: Consolidated income statement
INR Crores Particulars (Rs. Crores) Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 762.7 698.0 9% 654.1 17% 1,416.8 1,325.8 7% Cost of Goods Sold 588.8 556.8 517.3 1,106.1 1,063.3 Gross Profit 173.8 141.1 23% 136.8 27% 310.6 262.5 18% Gross Profit Margin 22.8% 20.2% 20.9% 21.
Slide 25: Standalone income statement
INR Crores Particulars (Rs. Crores) Q2FY24 Q2FY23 YoY Q1FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 762.7 698.0 9% 654.1 17% 1,416.8 1,325.8 7% Cost of Goods Sold 588.8 556.8 517.3 1,106.1 1,063.3 Gross Profit 173.8 141.1 23% 136.8 27% 310.6 262.5 18% Gross Profit Margin 22.8% 20.2% 20.9% 21.
Slide 26: Standalone balance sheet
INR Crores Equity & Liabilities (Rs. Crores) Sep-23 Mar-23 Assets (Rs. Crores) Sep-23 Mar-23 Non - Current Assets 325.2 269.0 Total Equity 842.3 757.9 Property Plant & Equipments 184.1 186.6 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.0 Reserves & Surplus 836.3 751.9 Right of Use Asset 21.0
Slide 27: Consolidated balance sheet
INR Crores Equity & Liabilities (Rs. Crores) Sep-23 Mar-23 Assets (Rs. Crores) Sep-23 Mar-23 Non - Current Assets 348.0 293.0 Total Equity 865.0 781.8 Property Plant & Equipments 184.1 186.6 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.0 Right of Use Asset 21.0 22.1 Reserves & Surplus 859.1
Slide 28: Cash flow statement
INR Crores Standalone Consolidated Particulars (Rs. Crores) H1 FY24 H1 FY23 H1 FY24 H1 FY23 Net Profit Before Tax 178.8 132.6 180.0 133.7 Adjustments for: Non -Cash Items / Other Investment or Financial Items -8.0 7.4 -9.2 6.3 Operating profit before working capital changes 170.7 140.0 170.7 140.0 C
Slide 29: Revenue, EBITDA, PAT FY19-FY23
INR Crores REVENUE EBITDA PAT^ +188% +120% +157% 282 2,700 208 2,255 228 1,737 149 128 129 938 863 96 81 67 52 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 * Consolidated Excluding Seating Business ^ Including Profit/(loss) in JV and Associates 28 28
Slide 30: Adjusted ROCE
INR Crores Particulars (Rs. Crores) Sep-23 (TTM) FY23 FY22 FY21 FY20 FY19 Interest Income on Cash (A) 30.4 25.7 13.2 10.0 5.5 4.8 EBIT (B) 323.4 277.2 216.7 106.7 79.4 113.3 Equity Capital (C) 842.3 757.9 572.9 430.9 364.6 409.4 Debt Capital (D) 0.0 0.0 0.0 0.0 0.0 0.0 Cash & Equivalents (E) 658.2 5
Slide 31: CSR initiatives
Tree Planting Stop Plastic 1 Pollution Blood Donation Drive Sharda Motor believes in the Installed plastic bottle shredding Organized blood donation camps preservation of the environment. Our machine at Jamshedpur district of to help hospitals and blood banks team of volunteers contributed their Jha
Slide 32: Company and Investor Relations Advisors contacts
Company Investor Relations Advisors CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Puru Aggarwal Mr. Jigar Kavaiya / Mr. Pratik Shah President and Group CFO COO-IR Practice / Business Analysis 011-47334100 +91 9920602034 / +91 9870030585 puru.aggarwal@shardamotor.com jigar.kavaiya@sgapl.
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