Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Q3 FY2021 Earnings Presentation
33 slides from Balkrishna Industries's earnings presentation, Feb 8, 2021
Slide 1: Balkrishna Industries Ltd Investor Presentation - February 2021
BALKRISHNA INDUSTRIES LTD Investor Presentation - February 2021
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: Performance Snapshot – Q3FY21
Performance Snapshot – Q3FY21 Sales Volumes Revenue 59,810 MT Rs. 1,497 Cr +26% YoY +27% YoY EBITDA PAT Rs. 477 Cr EBITDA Rs. 322 Cr with margin of +46% YoY 31.9% Board of Directors have declared a 3rd Interim Dividend of Rs. 5/- per equity share All figures on Standalone basis 3
Slide 4: Management Commentary
Management Commentary The demand continues to be strong in Agriculture segment across Geographies. In the other 01 segments, demand continues to remain stable more or less stable post the recovery in the end markets of industrial, construction and mining segment With 9MFY21 volumes of approximately
Slide 5: Update on Ongoing Capex
Update on Ongoing Capex Ultra Large Project for 51” and 57” Ultra large All steel giant radial tire plant has been Giant Tires completed. The tires are under various stages of testing at Bhuj Carbon 2nd Phase of trial production was commenced in March 2020. This was ahead Black of schedule. With thi
Slide 6: Proposal for New Capex Program of Rs. 1,900cr
Proposal for New Capex Program of Rs. 1,900cr ▪ Debottlenecking and Brownfield expansion along with Brownfield Tire Plant addition of balancing and ancillary equipment at Bhuj ▪ Expansion to add ~50,000 MTPA capacity; expected ✓ Rs. 1,900cr Capex to be completion by H2FY23 funded by Internal Accrual
Slide 7: Sales Volume Profile – 9MFY21
Sales Volume Profile – 9MFY21 In MT +8% 211,261 Lockdown 199,213 Impact 172,419 159,130 148,244 201,760 FY16 FY17 FY18 FY19 FY20 9MFY21 FY21 Sales volume guidance: 215,000-220,000 MT 7
Slide 8: Volume Profile – 9MFY21
Volume Profile – 9MFY21 Segmental Sales Channel Sales Geographical Sales Others Others RoW 3% 4% 13% OEM OTR 25% 33% 23% 49% 64% India 71% 15% Europe Agriculture Americas Replacement 8
Slide 9: Profit & Loss
Profit & Loss Standalone Particulars (Rs.Cr) Q3FY21 Q3FY20 Growth 9MFY21 9MFY20 Growth FY20 Sales (MT) 59,810 47,321 26% 159,130 143,794 11% 201,760 Revenue from Operations 1,505 1,161 4,012 3,425 4,782 Realized Gain on Foreign -8 23 -22 83 115 Exchange Total Income 1,497 1,183 27% 3,990 3,508 14% 4
Slide 10: Other Income and Net Forex Gain/(Loss)
Other Income and Net Forex Gain/(Loss) Standalone Particulars (Rs. Cr) Q3FY21 Q3FY20 9MFY21 9MFY20 Exchange Difference Gain (Realized) 1 28 8 97 Exchange Difference Gain (Un-Realized) 15 -22 -5 6 Others 36 24 95 79 Total Other Income 51 30 99 182 Standalone Particulars (Rs. Cr) Q3FY21 Q3FY20 9MFY21
Slide 11: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Sep’20 Mar’20 Particulars (Rs. Cr.) Sep’20 Mar’19 ASSETS EQUITY AND LIABILITIES Non-current assets 5,118 4,854 EQUITY 5,429 5,028 Property, Plant and Equipment 3,186 3,189 Equity Share Capital 39 39 Capital work-in-progress 666 586 Other Equity 5,390 4,989 Investm
Slide 12: Strong Balance Sheet performance in FY18 to FY20… Future Ready
Strong Balance Sheet performance in FY18 to FY20… Future Ready Cash Accruals of Rs. Distributed Dividend of 3,500cr over Rs. 800cr FY18 Capex Spends to the tune of to Rs.2,000cr from Internal Net Cash company Accruals FY20 Balance Sheet Repaid Debt undertaken Cash and Cash equivalents for Capex in B
Slide 13: Resilient Business Model
Resilient Business Model Long Term Debt Free with Cash and Cash equivalents of Rs. 1,423 crs as on 31st December 2020 Diversified Product Portfolio, Self Reliant in Carbon Black spread across Agriculture, along with Multiple sourcing Industrial, Construction arrangements for other Raw and mining tir
Slide 14: Strategy at BKT
Strategy at BKT 14
Slide 15: Our Focus Area
Our Focus Area Market Reach Expand reach within existing Sales Channels as well increase footprint within replacement segment and OEMs 01 Penetrate Americas Increase share of business in USA markets by increasing 02 supplies from India Product portfolio expansion 03 Expand the product portfolio by a
Slide 16: 'Atmanirbhar' BKT – Our Pledge
‘Atmanirbhar’ BKT – Our Pledge We pledge to fulfil the vision of self-reliance by continuing to manufacture in India for domestic consumption and global markets Our focus will be on improving our product portfolio, sustaining the consistent product quality and efficient service levels, thus enhancin
Slide 17: To Serve Global OEMs…
To Serve Global OEMs… The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 17
Slide 18: With India Production and Global Sales
With India Production and Global Sales Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan Our plants India – Our Bhuj, Gujarat Manufacturing base Mould plant, Dombivali 18
Slide 19: Balkrishna Industries – A Snapshot
Balkrishna Industries – A Snapshot Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 2,700 SKU Capacities Achievable cap
Slide 20: Our Strong Evolution
Our Strong Evolution Self Reliant on Carbon 2019 Started Manufacturing for 2020 Black with the large size 51” diameter tires completion of Phase 2 at at Bhuj Bhuj in Gujarat Plant in Crosses Rs. Started 2018 2015 Announced 2009 2006 Chopanki, 1,000 cr Greenfield Plant in Bhuj, Capex at Waluj Rajasth
Slide 21: BKT… at the forefront of Sustainability
BKT… at the forefront of Sustainability • 50% of the production plants’ electricity needs in North India have been met by green energy generated in our own wind park since 2004 • In Bhuj, the Company’s largest production site, the company has o Planted over 100,000 trees o Created two large water re
Slide 22: Application of our Tires
Application of our Tires Agriculture Tires Cotton Pick Harvester Tractor Vineyard Tractor Pivot Irrigator Industrial Tires Loader Telehandler Mobile Crane OTR Tires Load Haul Dump Underground Mining Container Handler 22
Slide 23: BKT – A Strong Global Brand from INDIA
BKT – A Strong Global Brand from INDIA 23
Slide 24: Strengthening BKT Brand : Americas
Strengthening BKT Brand : Americas BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its fleet of Monster Trucks – Monster Jam is a top sporting event in America 24
Slide 25: Strengthening BKT Brand : Canada
Strengthening BKT Brand : Canada BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup 25
Slide 26: Strengthening BKT Brand : Italy, Europe
Strengthening BKT Brand : Italy, Europe BKT is the new Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT” 26
Slide 27: Strengthening BKT Brand : Spain, Europe
Strengthening BKT Brand : Spain, Europe BKT is the New Official Global Partner for the Spanish Football League “La Liga” 27
Slide 28: Strengthening BKT Brand : France, Europe
Strengthening BKT Brand : France, Europe BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France 28
Slide 29: Strengthening BKT Brand : Europe
Strengthening BKT Brand : Europe Premium Partner of EUROLEAGUE BASKETBALL 29
Slide 30: Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE
Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE Team of 26 expert journalists in agricultural mechanization, will assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’ 30
Slide 31: Strengthening BKT Brand : Australia
Strengthening BKT Brand : Australia BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 31
Slide 32: Strengthening BKT Brand : India
Strengthening BKT Brand : India Official Partner of Teams in the Cricket T20 League 32
Slide 33: 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. M S Bajaj – President (Commercia)l & CFO Mr. Shogun Jain shogun.jain@sgapl.net +91 77383 77756 w
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