Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q1 FY25 Earnings Presentation
34 slides from Sona Blw Precision Forgings's earnings presentation, Jul 24, 2024
Slide 1: Stock exchange cover letter for investor presentation
Date: - 24th July, 2024 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Investor
Slide 2: Q1 FY25 Earnings Presentation
Q1 FY25 Earnings Presentation 24 July 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 5: Business Performance Highlights
Business Performance Highlights Complete Drivetrain of an Electric Vehicle
Slide 6: Q1 FY25 Financial Performance Highlights
Q1 FY25 Financial Performance Highlights 8,930 mn | 22% 2,512 mn | 23% 1,420 mn | 27% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.1% EBITDA Margin 15.9% PAT Margin1 2,828 mn | 53% 33% BEV Revenue | YoY Growth Q1 FY25 Product Revenue Share from BEV Notes: 1. PAT margin percentage cal
Slide 7: Update on our Strategic Priorities
Update on our Strategic Priorities Tool and Die Shop in our Gurgaon Plant
Slide 8: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 7
Slide 9: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 33% 2,828 mn 53% Q1 FY25 Product Revenue Q1 FY25 BEV segment Q1 FY25 BEV revenue Share from BEV revenue YoY growth 54 55 +1 (11+16+27)1 (12+15+28)1 EV Programs1 awarded across EV Programs1 awarded across 30 customers as at the end of 31 customers as at the end
Slide 10: First product order for Sensors and Software business
We have won the first product order for Sensors and Software business; Also added more products to an existing Driveline order Final Drive Differential In-cabin Sensors + Intermediate Gears (ACAM) + Input Shaft + Park Gear For Class 5 Electric CV For Electric Passenger Vehicles Existing Customer New
Slide 11: 55 EV programs across 31 different customers
55 EV programs across 311 different customers No. of North America Europe2 Asia programs customers 7 Customers 5 Customers 5 Customers +1 4 14 2 5 2 3 27 11 3 3 7 7 18 5 2 3 1 1 18 7 3 3 13 10 1 1 1 1 - - 5 +1 25 India Programs in fully ramped-up production 17 Customers Programs in ramp-up or not ye
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 11
Slide 13: Our net order book stands at ₹233 billion
Our net order book1 stands at ₹233 billion (7.3x FY24 revenue) 226 bn 4 bn Orders consumed from 11 bn 233 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q4 FY24 programs won in Q1 FY25 Q1 FY25 programs during Q1 FY25 Non-EV EV Rs. 184 Billion (79%) Rs. 49 Bil
Slide 14: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 13
Slide 15: Diversified Product Revenue Mix – By Powertrain
Diversified Product Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 18% in FY22 to 9% in Q1 FY25 FY22 FY23 FY24 Q1 FY25 25% 26% 29% 33% 26% 21% 24% 21% 31% 38% 37% 3
Slide 16: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Market segment 5% 1% 3% 5% 1% 1% FY24 Q1 FY25 24% PV 10% 26% 40% 70% 71% FY24 FY24 CV 14% 11% 32% 24% 28% 2% 0% E2W/E3W 6% 0.4% 7% 3% 5% 7% 26% 43% 23% 8% Non-Automotive Q1 Q1 10% 9% FY25 FY25 Semiconductors 33% 21% & Embedded SW 28% 1.0% 1.5% 15
Slide 17: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 16
Slide 18: Commercialized two products and added two future products to technology roadmap
In Q1 we commercialized two products and added two new future products to our technology roadmap Connected Zone Monitoring Intelligent Sensors 360˚ Short-range Radar Sensors Electric HV e-Axle Robotics Gears 4 Spool Gear EDL Epicyclic Geartrain Reduction In-cabin Sensors Non-ferrous Drive Unit 4 Par
Slide 19: Q1 & FY25 Financial Update
Q1 & FY25 Financial Update Cross Sectional View of Hub Type EV Traction Motor
Slide 20: Q1 FY25 Financials
Q1 FY25 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 23% YoY: 27% YoY: 22% YoY: 27% YoY: 29% 2,512 2,593 1,481 8,930 1,420 2,034 2,038 1,145 7,322 1,120 27.8% 28.1% 27.8% 29.0% 15.3% 15.9% 15.6% 16.6% 1,843 2,828 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25
Slide 21: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.2 6.0 5.2 5.7 36.1% 36.3% 32.4% 31.0% 30.9% 34.6% 26.6% 28.5% 30.4% 28.0% Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 5.1 5
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix Our Stall at Bharat Mobility Global Expo 2024
Slide 24: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Became publicly listed • 2 Plants • 2 Plants • 47 Customers (37+10) • 74 customers • 1 Product • 2 Products • 9 Plants (5+4) • 10 plants • 10 Products (5+5) • 20 products Revenue in INR
Slide 25: One Vision
One Vision To become one of the World’s most Respected and Valuable Mobility Technology companies for our Customers, Employees & Shareholders. 24
Slide 26: Guided by Values
Guided by Values 35.4% Agility Growth 5-year Revenue CAGR 27.1% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY20-FY24) 25
Slide 27: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally USA Location Capacity3 Germany China Location Capacity3 Tecumseh, MI 1 mn starter motors Belgium Cologne Hangzhou - Ypsilanti, MI Genk 7 of the world’s top 10 PV OEMs1a Serbia Belgrade 3 of the world’s top 10 CV OEMs1b Novi Sad Mexico Location C
Slide 28: Revenue share from BEV has grown 17x over 5 years
Revenue share from BEV has grown 17x over 5 years, with absolute BEV revenue growth at 48x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 17x 48x Q1FY25 Annualized 11,312 8,859 29% 33% 6,707 25% 26% 5,042 14% 2,057 2.0% 234 2,828 Q1FY25 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY20 FY21 FY22 FY23 FY24 FY
Slide 29: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% CY23 8.1% of Differential Gears1 Global Market Share CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% CY23 4.2% of Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tract
Slide 30: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 31: Product Summary
Product Summary Passenger Vehicles 10 Spool Gears 9 Electronically Locking 13 Differential (EDL) 12 360° Short Range 8 In-Cabin Radar Radar Sensors* 7 Sensors 11 15 Epicyclic 6 1 5 Geartrain 2 4 Integrated 3 Motor Controller Intermediate Module Gears (for Predictive Active Suspension) Commercial Veh
Slide 32: Product Summary
Product Summary Off Highway Vehicles Buses 6 Differential Bevel Gears Spiral Bevel Gears 5 In-Cabin Radar Sensors 3 7 8 4 1 4 2 1 3 Portal Axle Gears 2 5 7 Traction Motor 360° Short Range Radar Sensors* Controller Light Commercial Vehicles /3-Wheeler (Cargo) Controller* Steering 360° Short Bevel Box
Slide 33: Product Summary
Product Summary Industrial Automation, Electric 2-Wheelers AGVs & Robots 1 Hub Wheel Motor Integrated Drive Motor 4 5 Robotics Gears* & Controller 1 3 360° Short Range 4 2 Radar Sensors* 6 Integrated Hub Motor & Controller* 2 Zone Monitoring Sensors* Drive Motor 3 Bot Motors* Electric 3-Wheelers 360
Slide 34: ESG Performance Highlights
ESG Performance Highlights 14.3 Low Risk Top 9% We have published our second sustainability report Negligible Low Medium High Severe Out of 16,421 in December 2023 0-10 10-20 20-30 30-40 40+ global companies ESG Risk Rating (Core) Click on the image to read the report • 10% and 15% improvement in em
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