Menon Bearings Limited · NSE:MENONBE
Menon Bearings — H1 FY23 Earnings Presentation
36 slides from Menon Bearings's earnings presentation, Oct 22, 2022
Slide 1: Cover letter to stock exchanges
22nd October, 2022 To, To, The Manager - DCS The Manager - Listing Department BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra-Kurla Complex, Mumbai– 400 001. Bandra (East), Mumbai- 400051. Scrip Code: 523828 Symbol: MENONBE Dear Sir
Slide 2: Menon Bearings Limited Investor Presentation – October 2022
Menon Bearings Limited Investor Presentation – October 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Menon Bearings 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 secur
Slide 4: Financial & Operational Performance Q2 & H1FY23
Financial & Operational Performance Q2 & H1FY23
Slide 5: Investments in Product Diversification
Investments in Product Diversification Approved the proposal of Diversification of its product portfolio by starting manufacturing of new production line in auto component segment i.e. eco- antifriction (asbestos free) materials to begin with products like brake lining, brake shoes etc. Key Highligh
Slide 6: Key Financial Highlights - Q2 & H1FY23
Key Financial Highlights - Q2 & H1FY23 Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) +20% +20% +26% 113.42 24.19 15.67 94.73 20.14 12.45 +6% +10% +17% 48.52 51.42 9.88 10.90 6.90 5.88 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Gross Profit Margin
Slide 7: Product-Wise Highlights – Q2 & H1FY23
Product-Wise Highlights – Q2 & H1FY23 Bimetal (Rs. in Crs) Alkop – Aluminum (Rs. in Crs) Total Revenue* (Rs. in Crs) +13% +49% +20% 85.05 30.42 115.47 75.59 96.02 +38% 20.43 -2% +7% 15.51 37.76 36.99 48.98 52.50 11.22 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY2
Slide 8: Revenue Highlights H1FY23
Revenue Highlights H1FY23 Bimetal (Rs. in Crs) Alkop - Aluminum (Rs. in Crs) Total* (Rs. in Crs) +13% +49% +20% 85.05 30.42 115.47 75.59 96.02 20.43 47.49 26% 59.75 20.64 28% 80.39 33% 62.98 15.49 28.10 (10%) 25.30 98% 9.78 33.04 6% 35.08 4.94 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 Domestic Expor
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (Rs. in Crs) Q2FY23 Q2FY22 Y-o-Y H1FY23 H1FY22 Y-o-Y Revenue from Operations 51.42 48.52 5.99% 113.4 94.73 19.73% Operating Expenses 29.46 28.85 67.4 55.15 Gross Profit 21.97 19.67 11.70% 46.03 39.58 16.30% Gross Profit Margin 42.72% 40.54% 219 bp
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. in Crs) Sep-22 Sep-21 Equity & Liabilities (Rs. in Crs) Sep-22 Sep-21 Non - Current Assets 82.72 80.85 Total Equity 116.52 111.11 Property Plant & Equipment's 76.35 78.46 Share Capital 5.60 5.60 Capital Work in Progress 4.70 1.33 Reserves & Surplus 110.92 105.5
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. in Crs) H1FY23 H1FY22 Net Profit Before Tax 15.73 24.47 Adjustments for: Non -Cash Items / Other Investment or Financial Items 5.12 9.69 Operating profit before working capital changes 20.85 34.16 Changes in working capital -2.32 -9.94 Net Cash from
Slide 12: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 13: Revenue Break up – Product Wise
Revenue Break up – Product Wise Bimetal (Rs. in Crs) Alkop – Aluminum (Rs. in Crs) Total (Rs. in Crs) +37% +18% +32% 150.67 44.73 195.40 37.98 109.89 147.87 FY21 FY22 FY21 FY22 FY21 FY22 Bearings FY 21 FY 22 • Revenue from bearing stood at Rs. 151 crs, a growth of Alkop - Aluminum 37% on Y-o-Y basis
Slide 14: Revenue Break up – Geography Wise
Revenue Break up – Geography Wise Bimetal (Rs. in Crs) Alkop – Aluminum (Rs. in Crs) Total (Rs. in Crs) +37% +18% +32% 150.67 44.73 195.40 37.98 109.89 147.87 97.47 32.10 128.38 23.38 36% 34% 72.98 34% 95.69 36.91 53.20 14.60 -9% 12.63 52.18 28% 67.02 44% FY21 FY22 FY21 FY22 FY21 FY22 Domestic Expor
Slide 15: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit and Loss (in ₹ Crs) FY22 FY21 Growth Revenue from Operations 195.40 147.87 32.14 % Cost of Goods Solds 83.38 52.63 Gross Profit 112.02 95.24 17.63 % Gross Profit Margin 57.33 % 64.41 % Employee Cost 28.81 25.18 Other Expenses 43.13 37.17 EBITDA 40.08 32.89
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (in ₹ Crs) Mar-22 Mar-21 Equity & Liabilities (in ₹ Crs) Mar-22 Mar-21 Non - Current Assets 79.78 83.44 Total Equity 111.97 98.72 Property Plant & Equipment's 78.71 80.08 Share Capital 5.60 5.60 Capital Work in Progress 0.00 1.11 Reserves & Surplus 106.37 93.11 Inve
Slide 17: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (in ₹ Crs) FY22 FY21 Net Profit Before Tax 24.47 18.92 Adjustments for: Non -Cash Items / Other Investment or Financial Items 9.68 10.09 Operating profit before working capital changes 34.16 29.00 Changes in working capital -9.94 -4.79 Net Cash from Opera
Slide 18: About Menon Bearings
About Menon Bearings
Slide 19: About Menon Bearings
About Menon Bearings India’s Leading Bearing Manufacturer with Zero PPM Defects Introducing a new Product Line : Bi-Metal Products Alkop Brakes 3 plants in Kolhapur • Bearings Aluminum Die-Cast Asbestos-Free • Brake Lining 1 Office & Warehouse in Indianapolis, USA 4 • Bushes Products • Brake Shoes •
Slide 20: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities In-House Design & Among the few companies to have Development facilities Strategically located manufacturing Warehouse & an Office in facilities to produce next generation facilities in Kolhapur, Maharashtra, Indianapolis, USA. parts through lead-free materi
Slide 21: Diversified Products: Bi-Metal Products
Diversified Products: Bi-Metal Products Bearings Bushes Thrust Washers • Bearings for Connecting Rods • Truncated bushes for connecting rods • Washers with Thrust Face Contours • Ball indented bushes • Bearings for Crank shafts • Ring Type Thrust Washers • Bushes for Connecting Rods • Flanged Bearin
Slide 22: Diversified Products: Aluminum Die-Cast
Diversified Products: Aluminum Die-Cast Aluminum products with wide range of applications Up to 4.5 Kgs./Piece High Pressure Aluminum Die Cast & Machined Component Up to 15 Kgs./Piece Gravity/ Tilt Gravity Aluminum Die Cast & Machined Components Applications Engines Compressors 2W/3W Oil & Gas Pumps
Slide 23: Diversified Products: Brakes
Diversified Products: Brakes New product line in eco-antifriction (asbestos free) materials and products like brake lining, brake shoes • Eco-friendly brake friction materials are formulated without copper, lead, tin, antimony trisulfide to minimize their potential negative environmental impacts. •
Slide 24: Current Capacities & Capex Plan
Current Capacities & Capex Plan Bi-Metals Capacity (in lakhs) Alkop Capacity (in MT) +12% +33% 456.00 1,440.00 Planned a capex of ₹ 30 Cr till FY25 on Plant 408.00 & Machinery of which 1,080.00 30% 70% for Bi-Metal Division to cater to be allocated to higher FY21 FY22 FY21 FY22 to increased market d
Slide 25: In-House Engineering & Development
In-House Engineering & Development In house Machine In-House Tool Room Building capability for faster Development 21 BFC Machines 200+ Special purpose (16 - 400 MT Capacity) machines Dedicated team of Experienced Engineers having Engineering Department to Design SPM, Tooling, In-house Tool Room cons
Slide 26: Quality Assurance
Quality Assurance Online & Quality at MBL is an online & continuous activity integrating people, communication, process continuous activity controls, designing, engineering, production & inspection departments Co-ordinate Measuring Comprehensive & Begins with an attitude we inculcate via comprehensi
Slide 27: Diversified Industry Application with growing Exports
Diversified Industry Application with growing Exports Revenue from Exports (Rs. in Crs) Exporting to24+ Countries & +44% plans to reach Africa & Latin America through large distributor network 53.2 Our office & warehouse in Indianapolis, USA has been helping to 36.9 serve customers in & around the r
Slide 28: Formidable Reach & Brand Equity in the After-Market
Formidable Reach & Brand Equity in the After-Market Products present at Retail field relationships build & 10,000+ nurtured for retail outlets across India over 2 decades Robust network of 1,000 dealers & distributors Strong marketing team of 40 executives across India trained to provide technical O
Slide 29: Diversified Marquee Clientele across Industries
Diversified Marquee Clientele across Industries Industry diversified revenue thereby reducing dependency on any Industry Engine & Commercial Vehicle (HCVs & LCVs) Tractors Electrical & Industrial Applications Exports No single customer contributes more than 10-12% of business The Brand Names mention
Slide 30: Customer Recognitions, Awards & Accolades
Customer Recognitions, Awards & Accolades Menon Bearings Limited 29
Slide 31: CSR & ESG Initiatives
CSR & ESG Initiatives Constructed an Auditorium at Gokul Shirgaon MIDC For promoting education & employment and enhancing vocational skills among children, working C professionals & women Financial Assistance provided S For promotion of rural sports & development of traditional arts & crafts For COV
Slide 32: Industry Growth Drivers
Industry Growth Drivers Inclement factors driving • Uptrend in per-capita income and breach of $2,450 level by FY23 will trigger auto demand demand and providing • Middle class segment to constitute ~62% of India’s population by FY25 and drive consumption growth tailwinds • India cementing its posit
Slide 33: EV Shift – Far from a Risk
EV SHIFT – FAR FROM A RISK Catering to HCV & Industrial Industries & Applications We cater to heavy segments like Mines, Tractors, LCV/HCV etc. which are less challenged from the EV Segment which will have low impact from change in shift to Electric Vehicles Long standing Relationship We enjoy stron
Slide 34: Experienced Board of Directors
Experienced Board of Directors Nitin Menon R. D. Dixit Arun Aradhye Executive Chairman Managing Director Whole Time Director & CFO Mr. Nitin Menon is an industrialist and Mr. Dixit has worked with the Menon Mr. Aradhye is associated with the has rich and varied experience in Group for more than 54 y
Slide 35: Key Takeaways
Key Takeaways Higher gestation in product approval cycle among suppliers due to technical nature of the products High Entry Land parcel available for future growth Barrier expansion in newer products segments to capture market growth No Capacity We build out own Tools and Constraint Machines which g
Slide 36: Thank You
Menon Bearings Limited CIN: L29130PN1991PLC062352 Mr. Arun Aradhye - Whole Time Director & CFO admin@menonbearings.in Thank You Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Ms. Saloni Soni sagar.shroff@sgapl.net / saloni.soni@sgapl.net +91 98205 19303 / +91