Menon Bearings Limited · NSE:MENONBE
Menon Bearings — Q3 FY24 Earnings Presentation
35 slides from Menon Bearings's earnings presentation, Feb 9, 2024
Slide 1: Exchange covering letter for investor presentation
9th February, 2024 To, To, The Manager (CRD) The Manager – Listing Department BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort Bandra (East), Mumbai – 400001 Mumbai – 400051 Scrip Code: 523828 Symbol: MENONBE Dear
Slide 2: Menon Bearings Limited Investor Presentation Q3 & 9MFY24
Menon Bearings Limited Investor Presentation Q3 & 9MFY24 1
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: Table of Contents
TABLE OF CONTENTS 01 Key Performance Highlights 02 Way Forward 03 About Us 04 Annual Financials 05 Annexure 3
Slide 5: Key Performance Highlights
01 Key Performance Highlights 4
Slide 6: Key Performance Highlights
Key Performance Highlights Revenue (Rs. in Crs) EBITDA (Rs. in Crs) PAT (Rs. in Crs) 36.69 23.42 163.07 154.06 31.65 19.22 12.49 7.75 49.65 50.13 49.38 10.32 9.50 6.30 5.59 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 EBITDA Margin (%) PAT
Slide 7: Product Wise Highlights – Q3&9MFY24
Product Wise Highlights – Q3&9MFY24 Bimetal (Rs. In Crs) Alkop (Rs. In Crs) Braking Systems (New Segment) (Rs. In Crs) 48.70 120.62 45.89 108.48 2.12 35.56 35.62 34.92 14.84 15.50 15.68 0.52 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q2FY24 Q3FY24 Capacity Utilisation Capa
Slide 8: Revenue Breakup – Q3&9MFY24
Revenue Breakup – Q3&9MFY24 Product Wise Channel Wise 0.0% 1.0% 4.0% 0.0% 1.9% 7.5% 7.0% 8.8% 8.4% 8.3% 6.7% 7.0% 7.5% 6.2% 7.0% 29.4% 30.0% 27.6% 29.7% 30.4% 31.6% 28.4% 27.9% 31.0% 28.0% 70.6% 69.0% 66.2% 72.4% 67.7% 54.3% 57.7% 55.7% 54.4% 56.8% Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3
Slide 9: Standalone Income Statement – Q3FY24
Standalone Income Statement – Q3FY24 Particulars (Rs. in Crs) Q3FY24 Q2FY24 Q3FY23 YoY (%) QoQ (%) 9MFY24 9MFY23 YoY (%) Revenue from Operations 49.38 50.13 49.65 -0.55 -1.50 154.06 163.07 -5.52 Operating Expenses 28.34 28.43 26.68 6.19 -0.32 87.94 94.07 -6.52 Employee Cost 8.81 8.79 7.78 13.15 0.23
Slide 10: Way Forward
02 Way Forward 9
Slide 11: Current Capacities & Capex Plan
Current Capacities & Capex Plan Bi-Metals Capacity Alkop Capacity Brake Capacity (lac pcs) Planned capex ₹ 30 Cr (in lakhs) (in MT) (FY24 onwards) till FY25 486 1,440 1,440 15 456 Bi-Metal Alkop Division Division 2.4 40% 60% FY22 FY23 FY22 FY23 Brake Brake Lining Shoes to cater to to be allocated Ca
Slide 12: Way Forward
Way Forward Expand New Capitalise on Focus on high Target growth in Capacities Products strong network margin products export markets Planned a capex Manufacturing of Leveraging the No Capacity With growth in of ₹ 30 Cr till FY25 eco-antifriction existing supply Constraint - Land Exports at more on
Slide 13: About Us
03 About Us 12
Slide 14: About Us
About Us ❑ India’s Leading Engine Bearing Manufacturer Revenue Breakup (in ₹ Crs) ❑ Operates in 3 key business areas 151 160 1.Bimetal Products 110 2.Alkop (Aluminium Die Casting) 38 45 57 3.Braking Systems (Brake Lining & Brake Shoes) ❑ Catering to industries not impacted by advent of EVs FY21 FY22
Slide 15: Key Annual Financial Highlights
Key Annual Financial Highlights 1 2 3 Net Debt / Equity EBITDA Margins ROE Aiming to become NIL Our Minimum Last 8 years in FY24 Target EBITDA Avg. ROE Margins expected 43% from our key businesses 32% 24% 20-22% 4 5 0.01 ROCE Dividend Payout Last 8 years Average Dividend Average ROCE Payout for last
Slide 16: Key Business Highlights
Key Business Highlights 4 Units M&HCV , OTR ,Tractor, Industrial 3 Plants in Kolhapur, India across Segments where we are operating. 27 acres. Catering to Industries & Applications 1 Office & Warehouse in which will have low impact from shift Indianapolis, USA. to Electric Vehicles Oligopoly 24+ Cou
Slide 17: Board of Directors
Board of Directors Nitin Menon R. D. Dixit Arun Aradhye Executive Chairman Managing Director Whole Time Director & CFO Mr. Nitin Menon is an Mr. Dixit has worked with the Mr. Aradhye is associated with industrialist and has rich and Menon Group for more than the company for more than 12 varied exper
Slide 18: Diversified Marquee Clientele across Industries
Diversified Marquee Clientele across Industries Industry diversified revenue thereby reducing dependency on any Industry Engine & Commercial Electrical & Industrial Vehicle Tractors Exports Applications (HCVs & LCVs) No single customer contributes more than 10-12% of business The Brand Names mention
Slide 19: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities 3 Plants in Kolhapur In-House Strategically located manufacturing Design & Development Facilities facilities in Kolhapur, Maharashtra, spread over an area of 27 acres Alloy Powder Manufacturing Warehouse & an Office Strip Manufacturing in Indianapolis, USA.
Slide 20: 1. Bi-Metal Products
1. Bi-Metal Products Bearings Bushes Thrust Washers ❑ Bearings for Connecting Rods ❑ Truncated Bushes for Connecting Rods ❑ Washers with Thrust Face Contours ❑ Bearings for Crank shafts ❑ Ball Indented Bushes ❑ Ring Type Thrust Washers ❑ Flanged Bearings ❑ Bushes for Connecting Rods ❑ Trimetal Beari
Slide 21: 2. Alkop (Aluminium Die Casting)
2. Alkop (Aluminium Die Casting) Aluminum Products with wide range of applications High Pressure Aluminum Die Cast & Machined Component Gravity/ Tilt Gravity Aluminum Die Cast & Machined Components Applications Automotive Compressors 2W/3W Oil & Gas Pumps Safety Engines Equipment 20
Slide 22: 3. Braking Systems (new products)
3. Braking Systems (new products) New Product Line in eco-antifriction (asbestos free) materials and products like Brake Lining, Brake Shoes Asbestos Free – Environment friendly Focus on M&HCV Segment; Aftermarket Eco-friendly brake friction materials are Company continues to focus on its strong for
Slide 23: In-House Engineering & Development
In-House Engineering & Development In house Machine Engineering Department to Design 01 SPM, Tooling, Gauges & Fixtures Building Capability using Solid Works & Auto CAD which ensures First Time Right Samples & minimum development time In-House Tool Room In-house Tool Room consist of 02 Turning m/c,
Slide 24: Quality Assurance
Quality Assurance Inspection and Testing Quality Flow ❑ Quality is an online & continuous ❑ Quality flows from our people activity integrating people, through our processes to our communication, process controls, product designing, engineering, production ❑ Precision machines ensuring & inspection d
Slide 25: Formidable Reach & Brand Equity in the After-Market
Formidable Reach & Brand Equity in the After-Market Retail field relationships build & nurtured for over 2 decades Products present at 10,000+ retail outlets across India Robust network of 1,000 dealers & distributors Our aftersales network serves a national community of 30,000+ mechanics & reborers
Slide 26: Key Competitive Advantages
Key Competitive Advantages High Entry Barrier No Capacity Constraint Higher gestation in product approval Land parcel available for future cycle among suppliers due to growth expansion in newer technical nature of the products products segments to capture market growth In-house Machine Building Capa
Slide 27: Market Size & Opportunity
Market Size & Opportunity Domestic market size per annum Revenue (Rs. In Crs) ❑ Engine bearings ~Rs 1,000 crores 65 67 ❑ Aluminium casting products ~Rs 6,000 crores 52 ❑ Brake segment ~Rs 2,000 crores 128 152 96 Exporting to 24+ Countries & plans to reach Africa & Latin FY21 FY22 FY23 America throug
Slide 28: Industry Growth Drivers
Industry Growth Drivers Growing per capita income driving demand Growing investments in Manufacturing Uptrend in per-capita income and breach of India cementing its position as a global $2,450 level by FY23 will trigger auto demand. automotive R&D hub, with many MNC’s setting Middle class segment to
Slide 29: Annual Financials
04 Annual Financials 28
Slide 30: Standalone Income Statement
Standalone Income Statement Particulars (Rs. in Crs) FY21 FY22 FY23 Revenue from Operations 147.87 195.40 216.94 Operating Expenses 79.42 116.22 122.85 Gross Profit 68.45 79.17 94.1 Gross Profit Margin (%) 46.29% 40.52% 43.37% Employee Cost 25.18 28.81 32.10 Other Expenses 10.38 10.28 11.46 EBITDA 3
Slide 31: Standalone Balance Sheet
Standalone Balance Sheet Equity & Liabilities(Rs. in Crs) FY21 FY22 FY23 Assets (Rs. in Crs) FY21 FY22 FY23 Share Capital 5.60 5.60 5.60 Property Plant & Equipment's 80.08 78.71 76.45 Reserves & Surplus 93.11 106.38 127.83 Capital Work in Progress 1.11 0.00 8.30 Total Equity 98.72 111.98 133.44 Inve
Slide 32: Annexure
05 Annexure 31
Slide 33: Customer Recognitions, Awards & Accolades
Customer Recognitions, Awards & Accolades 32
Slide 34: CSR & ESG Initiatives
CSR & ESG Initiatives Constructed an Auditorium at Future Emission Norms Gokul Shirgaon MIDC Facilities to produce next For promoting education & generation LEAD FREE materials employment and enhancing to cater to Future Emission Norms vocational skills among children, working professionals & women
Slide 35: Thank You
Thank You ® Menon Bearings Limited KAPTIFY Consulting CIN: L29130PN1991PLC062352 Strategy & Investor Relations | Consulting Mr. Arun Aradhye – WTD & CFO (M):91=845 288 6099 | contact@kaptify.in admin@menonbearings.in www.kaptify.in 34