Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — Investor Presentation (February 2019)
36 slides from Talbros Automotive Components's investor presentation, Feb 14, 2019
Slide 1: Investor Presentation February 2019
1 INVESTOR PRESENTATION February 2019 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Talbros Automotive Components Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscrib
Slide 3: Talbros Automotive Components Ltd (TACL) - Group
Talbros Automotive Components Ltd (TACL) - Group Product Portfolio Entities TACL Group Turnover*(Rs. Crs) FY18 9M FY19 TACL Standalone 292 259 Gaskets Nippon Lealkless Talbros Pvt Ltd 118 93 Forgings TACL Standalone 115 129 FY18 9M FY19 675 622 Magneti Marelli Talbros Chassis Chassis Components 109
Slide 4: TACL Group – Corporate Structure
TACL Group – Corporate Structure Figures in Rs. Crores FY18^ 9MFY19^ Talbros Auto Components Limited – Group Turnover Gaskets 292 259 Talbros Automotive Components Ltd Forgings 115 129 FY18 9MFY19 40% 50% 50% 675 622 Nippon Leakless Talbros Pvt Magneti Marelli Talbros Talbros Marugo Rubber Pvt Ltd*
Slide 5: Vision 2020
Vision 2020 Group Turnover# EBITDA# Margin 12.0% 11.8% 12.0% - 13.0% FY18^ 9MFY19^ FY20 FY18 9M FY19 FY20e 675 622 850 - 950 Adjusted PAT^ Strategy well in place 32 - 35 and Progressing as 21 12 - 15 communicated Revenue# (As per Ind As) 20 FY18 9M FY19 FY20e ROCE FY18^ 9MFY19^ FY20 15.0%+ 407 381 5
Slide 6: Consolidated 9M FY19 Highlights
Consolidated 9M FY19 Highlights 9M FY19 Highest ever Nine Month Profits Total Income from Operations^ Commenting on the performance Mr. Anuj Talwar, Jt. Managing Director, 33% Rs 381.1 Crs Talbros Automotive Components Limited said: “We are extremely pleased with our performance. This performance co
Slide 7: New Order wins Fuel Growth in Business
New Order wins Fuel Growth in Business Magneti Marelli Talbros Chassis Systems Pvt Ltd : Exports order from a UK based OEM, with an estimated annual revenues of Rs. 35+ Crores Forgings: Exports order from a large European OEM worth Rs. 8 Crores Heat Shields: Exports order from a large European OEM w
Slide 8: Consolidated 9M FY19 Performance Highlights
Consolidated 9M FY19 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ Adjusted PAT +33% +40% +54% 381.1 45.0 20.3 287.0 32.2 13.2 9M FY18 9M FY19 9M FY18 9M FY19 9M FY18* 9M FY19 EBITDA Margin^ Adjusted PAT Margin +60 bps +70 bps 11.2% 11.8% 5.3% 4.6% 9M FY18 9M FY19 9M FY18*
Slide 9: 9M FY19 JV’s Performance Highlights
9M FY19 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd* Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd* Pvt Ltd* Total Income from Operations Total Income from Operations Total Income from Operations +6% +32% +34% 88.3 93.9 100.6 39.5 76.1 29.4 9MFY18 9MFY19 9MFY1
Slide 10: Consolidated Q3 FY19 Performance Highlights
Consolidated Q3 FY19 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ PAT +23% +15% +12% 127.8 15.1 6.4 13.1 5.7 104.0 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 As per Ind AS ^ Includes other income 10
Slide 11: Q3 FY19 JV’s Performance Highlights
Q3 FY19 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd Pvt Ltd Total Income from Operations Total Income from Operations Total Income from Operations +2% +21% +33% 27.2 27.7 32.9 13.8 27.2 10.4 Q3FY18 Q3FY19 Q3FY18 Q3
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In crores) Q3 FY19 Q3 FY18 Y-o-Y 9M FY19 9M FY18 Y-o-Y FY18 Revenue from Operations (Net of Excise) 125.1 102.0 376.6 282.8 393.0 Other Income 2.7 2.0 4.5 4.2 6.3 Total revenue from Operation 127.8 104.0 22.9% 381.1 287.0 32.8% 399.3 Raw Material
Slide 13: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In crores) Q3 FY19 Q3 FY18 Y-o-Y 9M FY19 9M FY18 Y-o-Y FY18 Revenue from Operations (Net of Excise) 125.1 102.0 376.6 282.8 393.0 Other Income 3.9 3.0 8.1 6.6 9.4 Total revenue from Operation 129.0 104.9 23.0% 384.7 289.4 32.9% 402.4 Raw Material 7
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS Sep-18 Mar-18 EQUITY AND LIABILITIES Sep-18 Mar-18 Non-current assets Equity Property, plant and equipment 132.3 124.3 Equity Share capital 12.3 12.3 Capital work-in-progress 3.0 2.4 Non-Controlling Interest Intangible assets 0.5 0.7 Other equity 178.4 167.1 Intangi
Slide 15: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. Crores) Sep-18 Mar-18 EQUITY AND LIABILITIES (Rs. Crores) Sep-18 Mar-18 Non-current assets Equity Property, plant and equipment 132.3 124.3 Equity Share capital 12.3 12.3 Capital work-in-progress 3.0 2.4 Non-Controlling Interest Intangible assets 0.5 0.7 Other eq
Slide 16: Business Confirmations & Strategy
Business Confirmations & Strategy Gaskets Standalone Nippon Leakless JV* New Orders: ▪ Cummins – USA & UK +8% +7% ▪ Zetor Tractors – Czech Republic 292 47 ▪ A Non- Automotive conglomerate in Austria 252 267 259 42 44 ▪ Order for Heat shields from a large European OEM 38 Strategic Initiatives : Gaske
Slide 17: Business Confirmations & Strategy
Business Confirmations & Strategy Magneti Marelli Talbros Chassis Systems Pvt Ltd (MMT)* ▪ Order from an OEM in UK worth ~Rs. 35+ Crores per annum +33% 54 50 ▪ Order from Maruti Suzuki to supply Control Arm Assemblies for Front 43 Suspension, with an Estimated Revenues of Rs. 24 crores per annum 31
Slide 18: Leadership Team driving Growth & Profitability
Leadership Team driving Growth & Profitability Joint Managing Director Director & Group CFO Anuj Talwar Navin Juneja Is a Bachelor in Business Is a B.Sc. (Mathematics) and Administration from college of Chartered Accountant (FCA). He is William & Mary, Virgina, USA and working as Finance Head of Tal
Slide 19: One of the Most Hedged Auto Component Players
About Us Over 6 Decades of experience in Auto Component manufacturing One of the Diversified Auto Component player with presence across Two Wheelers, Passenger, Commercial Vehicles and Farm Equipment's Most Hedged Auto Wide client base, ~40% revenue from top 5 clients Component Businesses across OEM
Slide 20: Diversified Portfolio
Diversified Portfolio 9MFY19 - Revenue Contribution Segments Product Portfolio Market Exposure TMR 4% ▪ 2 Wheelers ▪ Gaskets ▪ OEMs NLK 8% ▪ 3Wheelers ▪ Heat Shields ▪ After Market MMT ▪ Passenger Vehicles ▪ Forgings ▪ Exports 10% ▪ Chassis Systems ▪ Commercial Vehicles ▪ Others Forgings ▪ Anti vibr
Slide 21: Growth Strategy
Growth Strategy 21
Slide 22: Strong Global Partnerships - Joint Ventures
Strong Global Partnerships - Joint Ventures Joint Ventures About the JV Products Customers ▪ Nippon Leakless Corporation (Japan) - One of the ▪ Hero Motor Corp largest global manufacturers of gaskets and a ▪ HMSI major Supplier for Honda Gaskets ▪ India Yamaha ▪ Honda Car India ▪ Established in 2005
Slide 23: Strong Tailwinds…
Strong Tailwinds… Stricter environmental Norms ▪ BS-VI expected implementation by 2020 Jump towards BS VI ▪ Developing new products such as Heat Shields under Technical Licensing Agreement with 01 SANWA Packaging Huge Potential of Indian Passenger Vehicles Segment Joint Ventures increasing ▪ India’s
Slide 24: The Automotive Opportunities
The Automotive Opportunities +27.4% +30.5% +9.9% Million Units 10.0 2.4 30.2 20.7 3.8 0.8 FY17 FY21F FY17 FY21F FY17 FY21F Passenger Vehicles Commercial Vehicles 2W & 3W Vehicles Source: IBEF TACL: Domestic Sales Break up 9MFY19 Agri & Off Others, 3% Loaders, 8% 2 & 3 Wheelers, 31% 30% 31% Strong gr
Slide 25: Business Overview
Business Overview 25
Slide 26: Key Milestones
Key Milestones Payen Talbros Technical Agreement •2008 - Technical Agreement JV with Marugo Rubber, incorporated in with Nippon Leakless, with SANWA, Japan Japan for Anti-Vibration collaboration with Japan to manufacture • 2009 – Technical Agreement and Hoses Coopers Payen UK Non-Asbestos Gaskets wi
Slide 27: Board of Directors
Board of Directors Mr. Naresh Talwar Mr. Umesh Talwar Mr. Varun Talwar Chairman Vice Chairman & MD Joint Managing Director Mr. Anuj Talwar Mr. Navin Juneja Mr. Vidur Talwar Joint Managing Director Director Non Executive Director Mr. V Mohan Mr Anil Kumar Mehra Mr. Amit Burman Independent Director In
Slide 28: Executive Management
Executive Management Mr. Manish Khanna Mrs. Seema Narang Chief Financial Officer Company Secretary A Qualified CA and MBA, he has over 17 years of experience with LeeBoy India She has over 22 years of experience in the secretarial department and has worked with Constructions, Doosan Infracore, Escor
Slide 29: Standalone Business - Gaskets
Standalone Business - Gaskets 9MFY19 Revenue Rs 253.1 Crores 9MFY19 OEM Breakup ▪ In – House tool design and manufacturing Others Export ▪ ~40% Market share in Gaskets 3x the 4% 11% After 2 & 3 Wheelers Market 5% nearest competitor 12% 13% Passenger Vehicle 36% ▪ Market Leader in – Two Wheeler, Agri
Slide 30: Standalone Business - Forgings
Standalone Business - Forgings 9MFY19 Revenue Rs 127.6 Crores Exports ▪ One stop solution for Hot Forging (750 to 43% 1,600 Ton Press) ▪ In-House tool design and manufacturing Others ▪ Strong presence in Overseas Market & OEM 6% 51% Supplier to top Tier I companies ▪ One Stop Solution for Die Design
Slide 31: Scope of Joint Ventures
Scope of Joint Ventures Rear Twist Beam Axle Fuel Hose Strut Mount Steering Bush Front Cross Members Engine Mount Suspension Arms Bush Wheel Group + Corner Module Air Hose Control Arms Knuckles Exhaust Hanger MMT MMT TMR TMR Existing Business Planned for Future Existing Business Planned for Future 3
Slide 32: Evolving Product Portfolio
Evolving Product Portfolio JV with Marugo Evolution Rubber Continues... Revenue FY07 JV with Magneti Marelli Hoses Hoses TA with SANWA Anti Vibration Anti Vibration Gasket 100% Acquired Sheet Metal, Products Products Entry into Forgings, JV with NLK - Gaskets Chassis Systems Chassis Systems Chassis
Slide 33: Hedged Customer Base
Diversified Customer - OEM 2 Wheeler Passenger Hedged Customer Base HCV/LCV Agri & Off Loader Agri & Off Loader 33
Slide 34: Manufacturing Facilities
Manufacturing Facilities Forging Gasket Bawal – Haryana Faridabad, Haryana (2 plants & R&D Centre) Pune, Maharashtra & Sitarganj, Uttarakhand Talbros Marugo Rubber Manesar – Gurgaon Nippon Leakless Bawal – Haryana Haridwar – Uttarakhand Magneti Marelli Talbros Faridabad - Haryana 34
Slide 35: Equity
Equity Consistently paying Dividend for the last 50 years In Rs 1.5 1.5 1.5 1.5 1.2 1.2 1.2 1.2 1.2 1.0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Promoter Shareholding 54% 54% 57% 57% 57% 51% 44% 46% 46% 42% 38% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Dec-16 Mar-17 Mar-18 35
Slide 36: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Mr. Navin Juneja – Director & Group CFO Mr. Rahul Agarwal Email: navinjuneja@qhtalbros.com rah
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