Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Investor Presentation (November 2014)
24 slides from Balkrishna Industries's investor presentation, November 2014
Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna 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 any
Slide 3: Content
Content Page A. Company Overview 4 B. Global Markets – Local Production 9 C. Key Competitive Advantages 16 D. Growth Strategies 18 E. Financial Highlights 20 3
Slide 4: Company Overview
BK T, GROWING TOGETHER Company Overview
Slide 5: Balkrishna Industries…
Balkrishna Industries… India’s leading exporter of “Off-Highway Tires” Widest and comprehensive product portfolio of ~ 2,200 SKUs 200,000 MTPA current achievable production capacity Achievable capacity to be further enhanced to 300,000 MT by FY 2015 Market presence in more than 130 countri
Slide 6: Revenue & Profit Growth
Revenue & Profit Growth Revenue (Rs. Crs.) PAT (Rs. Crs.) PAT % 14.5% 600 14.0% 500 13.9% 13.5% 13.7% 400 13.0% 300 3,577 12.6% 3,191 488 2,820 12.5% 200 356 269 12.0% 100 11.5% 0 FY12 FY13 FY14 FY12 FY13 FY14 6
Slide 7: Volume Trend & Guidance
Volume Trend & Guidance 40,823 39,202 37,281 34,941 33,901 33,145 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 In MT FY 15 Volume Guidance of 155,000 - 160,000 MT 7
Slide 8: Under the able leadership of …
Under the able leadership of … Mr. Arvind Poddar – Chairman & Managing Director Promoter of the Company In last 6 years, Company grew exponentially with around 24% CAGR Commissioning of new plant at Bhuj, Gujarat with capacity creation of over 80% The Core Team ……… Executing the Vision Mr. Raj
Slide 9: Global Markets – Local Production
Global Markets – Local Production 9
Slide 10: Presence in over 130 countries...
Presence in over 130 countries... In MT H1FY15 53% 28% 19% Europe Americas Rest of the World 10
Slide 11: One-stop shop for off highway tires – H1FY15
One-stop shop for off highway tires – H1FY15 Others Agriculture 4% Tractors, Trailers & other Farm equipments OTR 32% OTR Industrial, Construction, Earth 64% Moving & Mining equipments Agriculture Others All Terrain Vehicles, Lawn & Garden vehicles 11
Slide 12: Presence in various sales channels
Presence in various sales channels Sales Volume Breakup H1 FY2015 Sales Volume Breakup FY2014 OEMs, OEMs, 20% 19% Off-Take, Off-Take, 5% 4% Distributo Distributo rs, 75% rs, 77% Distributors Caters to replacement market Strong global network • Well diversified global distributor network Expand
Slide 13: Supplier to leading OEMs
BK /T Supplier to leading OEMs GROWING TOGETHER @E Ar.acco Your Agriculture Company JOHN DEERE SAME, CLAAS Terk TraktGr Ta en WIRTGEN GROUP Ld ale” CASE fit KALMAR CARGOTEC
Slide 14: Manufacturing Capacity
Manufacturing Capacity In MT Bhuj Existing [Waluj, Bhiwadi, Chopanki] 1,40,000 1,20,000 60,000 10,000 On-going Expansion at Bhuj Ramp up to take place in a phased manner until FY2016 1,56,000 1,56,000 1,60,000 1,60,000 1,60,000 Rs. 2,466 Crs incurred till September 2014 Rs. 1,808 Crs Capitaliz
Slide 15: Key Raw materials
Key Raw materials* Raw material composition Chemicals Bead Wire 16% 3% Fabric Rubber 6% 48% Carbon Black 27% In Volume Rubber sourced from India, Indonesia, Malaysia & Thailand - Major Rubber Producing countries Closer to Rubber producing countries gives edge over global peers Lower logistic
Slide 16: Key Competitive Advantages
Key Competitive Advantages 16
Slide 17: Key Competitive Advantages
Key Competitive Advantages Low Operating Cost ... v/s ... Global Peers • Labor intensive business, however India manufacturing leads to considerably low labor cost compared to global peers • Lower selling & distributing expenses due to sales by distributor network Faster Mind to Market Product Roll-
Slide 18: Growth Strategies
BK /T, GROWING TOGETHER Growth Strategies
Slide 19: Roadmap for future growth
Roadmap for future growth 6 Increase in production 5 capability Sustainable Business Growth Increase Expansion of exposure with OEMs production 4 capacities Improvement in Expanding OEM Operating Base Efficiency 3 Focus on cost management New Product Introduction 2 All steel radial mining ty
Slide 20: Financial Highlights
KT, GROWING TOGETHER Financial Highlights
Slide 21: Financial Highlights – Q2 FY2015
Financial Highlights – Q2 FY2015 Rs.Crs Q2 FY15 Q2 FY14 YoY % H1 FY15 H1 FY14 YoY% FY14 Sales (MT) 37,281 33,145 12% 76,483 68,086 12% 142,810 Net Sales 875 830 1,822 1,638 3,536 Other Operating Income 6 9 19 18 41 Revenue 881 840 5% 1,841 1,655 11% 3,577 Raw Material 486 401 973 816 1,718 (Increase
Slide 22: Balance Sheet – Q2 FY2015
Balance Sheet – Q2 FY2015 Rs. Crs. Sep-14 Mar-14 Rs. Crs. Sep-14 Mar-14 Shareholder’s Fund Non-current assets Share capital 19 19 Fixed assets 2,941 2,806 Reserves & Surplus 2,068 1,865 Non-current investments 117 427 Non-current liabilities Other Non Current Assets 216 210 Long term borrowings 1,33
Slide 23: Debt Management - September 2014
Debt Management - September 2014 In Rs. Cr 1,695 483 1,212 Long Term loans are dollar denominated and Net Long Term Debt to Equity is at 0.58x as on September 2014 USD 58mn repayment is due in FY16 Company has invested Rs. 483cr in Debt MF* Total Long Cash & Cash Net Debt Term Debt Equivalents
Slide 24: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. B K Bansal, Director - Finance Mr. Shogun Jain / Ms. Sanjita Ghosh bkbansal@bkt-tires.com jshogu
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