Slide 1: Varroc Engineering Limited – Investor Presentation Filing Letter
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Alea Waluj, Aurangabad 431 136 Maharashtra, India I Tel +91 240 6653600 Fax +91 240 2564540 email: varroc.info@varroc.com www.varrocgroup.com CIN: L28920M H1988PLC047335 •• Vdrroc EXCELLENCE VARROC/SE/INT/2019- 20/59 November 12,
Slide 2: Q2 FY20 Results Presentation
Q2 FY20 Results Presentation
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Industry Trends in Q2 FY20
Industry Trends in Q2 FY20 Global Passenger Cars Market Production +0.7% -0.4% -5.3% • Passenger Vehicle volumes in 62,27,074 46,35,897 46,69,124 40,32,843 40,17,546 58,95,803 Q2 FY20 were almost flat in Europe and North America • The decline in China continued due to slowing economic growth and lac
Slide 5: Business Highlights: Q2 FY20
Business Highlights: Q2 FY20 • Revenue from Operations for the quarter declined by 9.7% YoY* • Consolidated EBITDA for the quarter at INR 2,202 Mn*; EBITDA margins at 8.2% • India Business: Revenue declined by 12.0% as against 14.9% decline in 2W industry volumes; EBITDA margin at 10.2%* improved se
Slide 6: Summary of Key Financials for Q2 FY20
Summary of Key Financials for Q2 FY20 (INR Mn) Growth Growth Particulars Q2 FY20 Q2 FY19 (Y-o-Y) H1 FY20 H1 FY19 (Y-o-Y) New New Other Total Total (A) over Other Total Total (C) over Operating Operating business (A) (B) (B) business (C) (D) (D) Facilities# Facilities# Revenue from Operations - Repor
Slide 7: Outlook for New Operating and Upcoming facilities
Outlook for New Operating and Upcoming facilities* Revenue potential @ Full potential Target Break- Confirmed orders as of Oct 2019 as a Facility full capacity sales year even % of planned capacity (Eur Mn) Brazil 30 FY22 Q4 FY21 100% sourced business Morocco 180 FY23 Q2 FY21 ~70% sourced business P
Slide 8: Varroc Group: Business Wise Performance Q2 FY20
Varroc Group: Business Wise Performance Q2 FY20 (INR Mn) Q2 FY20 Q2 FY19 Revenue Revenue like-for- EBITDA # like-for- EBITDA # Revenue SBU Revenue like* EBITDA Like-for-like % EBITDA Revenue like* EBITDA Like-for-like % EBITDA Growth YoY India Business 10,058 10,058 1,076 1,024 10.2% 11,430 11,430 1
Slide 9: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) Q2 FY 20 % (INR Mn) -12.0% Bajaj 21.5% 11,430 Honda 10,058 2.6% Royal Enfield 4.1% 54.2% 7.7% Yamaha Q2 FY2019 Reported Q2 FY2020 9.9% Mahindra & Mahindra Revenue declined in a tough external environment Others EBITDA
Slide 10: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q2 FY 19 Revenue: 1122 Mn INR Revenue (1) Q2 FY 20 Revenue: 1093 Mn INR VLS Revenue Split by Customer Q2 FY20 vs Q2 FY19 (2) (INR Mn) Q2 FY 20, % -8.6% 16.3% 21.3% Customer A Customer B 17,917 17,830 Customer C 16,373 16,
Slide 11: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) -19% 28 26 24 22 21.5 3.0 20 1.0 18.7 18 3.8 0.9 1.2 15.8 16 0.1 15.1 0.2 14 5.9 0.7 12 10 Q2 FY19 Ind AS 115 Brazil, Morrocco Q2 FY19: Revenue impact RM impact Overheads Other income Q2 FY20: Start-up Costs Launch related Ind AS 116
Slide 12: Varroc Group: Business Wise Performance H1 FY20
Varroc Group: Business Wise Performance H1 FY20 (INR Mn) H1 FY20 H1 FY19 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue like-for-like EBITDA Like-for-like % EBITDA Revenue like-for-like EBITDA Like-for-like % EBITDA Growth YoY India Business 20,417 20,417 2,142 2,074 10.2% 21,861 21,861 2,457
Slide 13: Highlights of Major Order Wins and Near Term Potential
Highlights of Major Order Wins and Near Term Potential Business New Business wins: VLS / Recent orders: India Near term potentials North America: 50%+ Business wins are in North Americas where revenue has de-grown in last Overall Net Business Wins of Eur 262 Mn (68% of target for quarter. VLS FY20)
Slide 14: R & D / Business Updates – Q2 FY20
R & D / Business Updates – Q2 FY20 Global Lighting Business • VLS participated in the International Symposium on Automotive Lighting (ISAL) in Germany which is the largest conference held worldwide dedicated to automotive lighting. During this event : • Presented various new technologies, and unveil
Slide 15: Thank You
Thank You