Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Q2 FY22 Earnings Presentation
33 slides from Balkrishna Industries's earnings presentation, November 2021
Slide 1: Balkrishna Industries Ltd Investor Presentation
BALKRISHNA INDUSTRIES LTD Investor Presentation November ‘21
Slide 2: Safe Harbor
GROWING TOGETHER 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
Slide 3: Performance Snapshot – Q2FY22
Performance Snapshot – Q2FY22 GROWING TOGETHER Sales Volume Revenue EBITDA 72,748 MT Rs 2,080 cr Rs 564 cr +19% YoY +34% YoY +7% YoY EBITDA Margin Net Profit 27.1% Rs. 377 cr (683)bps YoY +11% YoY Declared 2nd Interim Dividend of Rs. 4/- per equity share All Figures on Standalone basis 3
Slide 4: Management Commentary
GROWING TOGETHER Management Commentary Demand continues to be robust across segments and geographies. Accordingly, we clocked our highest ever quarterly sales volume and reported 72,748 MT for Q2FY22 Expect this momentum to continue and therefore revised guidance for FY22 stands at 275,000 – 285,000
Slide 5: Capex at OLD Waluj Plant
Capex at OLD Waluj Plant GROWING TOGETHER The demand scenario is extremely robust & hence the Board of Directors have decided to continue operations of the OLD Waluj plant To achieve this, there will be a capex of Rs. 350cr in form of installation of latest machineries, replacement of certain machin
Slide 6: Cumulative Capex of Rs. 2,250cr
Cumulative Capex of Rs. 2,250cr GROWING TOGETHER ▪ Debottlenecking and Brownfield expansion along with addition of balancing and ancillary equipment at Bhuj Brownfield Tire Plant ▪ Expansion to add ~50,000 MTPA capacity; expected completion by H2FY23 at Bhuj ▪ Capex cost of up to Rs. 800cr ▪ Current
Slide 7: Sales Volume Profile – H1FY22
Sales Volume Profile – H1FY22 GROWING TOGETHER In MT +7% 2,27,131 2,11,261 1,99,213 1,72,419 201,760 1,41,356 FY17 FY18 FY19 FY20 FY21 H1FY22 Highest ever Quarterly Sales Volume in Q2FY22 Revised Guidance : 275,000 – 285,000 MT All Figures on Standalone basis 7
Slide 8: Volume Profile
Volume Profile GROWING TOGETHER Segmental Sales Channel Sales Geographical Sales 3.3% 3.0% 12.0% 26.7% 30.9% 17.3% H1FY22 H1FY22 H1FY22 54.0% 65.8% 70.3% 16.7% Agriculture OTR Others Replacement OEM Others Europe Americas India RoW All Figures on Standalone basis 8
Slide 9: Profit & Loss
Profit & Loss GROWING TOGETHER Particulars (Rs in Cr) Q2FY22 Q2FY21 YoY H1FY22 H1FY21 YoY FY21 Sales (MT) 72,748 61,224 19% 141,356 99,230 42% 2,27,131 Revenue from Operations 2,050 1,579 3,863 2,507 5,758 Realized Gain on Foreign Exchange 30 -27 45 -14 -18 Total Income 2,080 1,551 34% 3,908 2,493 5
Slide 10: Net Forex Gain/(Loss)
Net Forex Gain/(Loss) GROWING TOGETHER Particulars (Rs in Cr) Q2FY22 Q2FY21 H1FY22 H1FY21 Foreign Exchange Fluctuation on Sales 30 -27 45 -14 Foreign Exchange Fluctuation on Others 15 14 22 22 Total Realised Gain/(Loss) – A 44 -14 66 8 Total Unrealized Gain/(Loss) - B 27 10 43 -19 Net Forex Gain/(Lo
Slide 11: Balance Sheet
Balance Sheet GROWING TOGETHER Particulars (Rs. Cr.) Sep’21 Mar’21 Particulars (Rs. Cr.) Sep’21 Mar’21 ASSETS EQUITY AND LIABILITIES Non-current assets 6,289 5,649 EQUITY 6,538 6,007 Property, Plant and Equipment 3,566 3,247 Equity Share Capital 39 39 Capital work-in-progress 893 856 Other Equity 6,
Slide 12: Cash Flow
Cash Flow GROWING TOGETHER Particulars (Rs. Cr.) H1FY22 FY21 Operating profit before working capital changes 1,109 1,798 Changes in working capital -411 -80 Cash generated from operations 698 1,719 Direct taxes paid (net of refund) and others -220 -356 Net Cash from Operating Activities 478 1,363 Ne
Slide 13: Resilient Business Model
GROWING TOGETHER Resilient Business Model Long Term Debt Free Cash and Cash equivalents of Rs. 1,659 Cr as on 30th September 2021 Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires Self Reliant in Carbon Black
Slide 14: Strategy at BKT
GROWING TOGETHER Strategy at BKT 14
Slide 15: Our Focus Area
Our Focus Area GROWING TOGETHER Expand reach within existing Sales Expand the product portfolio by adding Reach 100% utilization levels at Bhuj Channels as well increase footprint large sized tires and strengthen Plant in the next few years within replacement segment and OEMs relationship with Custo
Slide 16: To Serve Global OEMs…
To Serve Global OEMs… GROWING TOGETHER The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 16
Slide 17: With India Production and Global Sales
GROWING TOGETHER With India Production and Global Sales Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan India Our Manufacturing base Bhuj, Gujarat Mould plant, Dombivali Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of
Slide 18: Balkrishna Industries – A Snapshot
Balkrishna Industries – A Snapshot GROWING TOGETHER 01 Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio 02 Deep understanding of OHT market has led to capabilities to manufacture over 2,700 SKUs C
Slide 19: Our Strong Evolution
Our Strong Evolution GROWING TOGETHER 1987 1995 2002 2003 1st Plant in Aurangabad Production of ATV, inaugurated by Started Production of Plant in Bhiwadi, Off-Highway Tires Gardening and our Founder Chairman, Rajasthan earthmoving Tires Late Mr. M P Poddar 2011 2009 2008 2006 2004 Launch of Plant i
Slide 20: BKT… at the forefront of Sustainability
BKT… at the forefront of Sustainability GROWING TOGETHER ✓ Part of electricity needs of the North India plants are being met by green energy generated through our own wind and solar projects ✓ In Bhuj, the Company’s largest production site, the company has ✓ Planted over 100,000 trees ✓ Created two
Slide 21: BKT – A Strong Global Brand from INDIA
GROWING TOGETHER BKT – A Strong Global Brand from INDIA 21
Slide 22: Strengthening BKT Brand : Americas
GROWING TOGETHER 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 22
Slide 23: Strengthening BKT Brand : Canada
GROWING TOGETHER Strengthening BKT Brand : Canada BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup 23
Slide 24: Strengthening BKT Brand: Spain
Strengthening BKT Brand: Spain GROWING TOGETHER BKT is the Official Global Partner for the Spanish Football League “La Liga” 24
Slide 25: Strengthening BKT Brand: Italy
Strengthening BKT Brand: Italy GROWING TOGETHER BKT is the Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT” 25
Slide 26: Strengthening BKT Brand: France, Europe
GROWING TOGETHER Strengthening BKT Brand: France, Europe BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France 26
Slide 27: Strengthening BKT Brand: France, Europe
GROWING TOGETHER Strengthening BKT Brand: France, Europe BKT Is Official Tire Supplier for Rugby World Cup France 2023 27
Slide 28: Strengthening BKT Brand : EUROPE
GROWING TOGETHER Strengthening BKT Brand : EUROPE Premium Partner of EUROLEAGUE BASKETBALL 28
Slide 29: Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE
Strengthening BKT Brand : GROWING TOGETHER Tractor of the year (TotY) - EUROPE Team of 26 expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’ 29
Slide 30: Strengthening BKT Brand : Australia
GROWING TOGETHER Strengthening BKT Brand : Australia BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 30
Slide 31: Strengthening BKT Brand : India
Strengthening BKT Brand : India GROWING TOGETHER Official Partner of Teams in the Cricket T20 League 31
Slide 32: Strengthening BKT Brand : India
Strengthening BKT Brand : India GROWING TOGETHER Partnership with Teams in the Indian Football League 32
Slide 33: Thank You
Thank You Company Investor Relations Advisor Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. M S Bajaj Mr. Shogun Jain President (Commercial) & CFO shogun.jain@sgapl.net msbajaj@bkt-tires.com +91 77383 77756 www.bkt-tires.com
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