Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — H1 FY2023 Earnings Presentation
35 slides from Talbros Automotive Components's earnings presentation, Nov 11, 2022
Slide 1: Cover letter to stock exchanges
talbr o)B Talbros Automotive ^ 11th November, 2022 Components Ltd. www. talbros.com The Bombay Stock Exchange Ltd . The National Stock Exchange of India Ltd . Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalai Street, Fort G Block, Bandra Kurla Complex, Mumbai - 400 001 Bandra
Slide 2: Q2 & H1 FY23 Investor Presentation
TALBROS AUTOMOTIVE COMPONENTS LIMITED (p r y D % *» Q 2 & H1 F Y 2 3 I N V ESTOR P R ES EN TATI ON November 2022
Slide 3: Safe Harbor
Safe Harbor o 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 subscri
Slide 4: Talbros Automotive Components Ltd (TACL) - Group
Talbros Automotive Components Ltd (TACL) - Group o Product Portfolio Entities TACL Group Turnover*(Rs. Crs) H1 FY22 H1 FY23 TACL Standalone 179 213 Gaskets Nippon Leakless Talbros Pvt Ltd 36 47 Forgings TACL Standalone 106 103 H1 FY22 H1 FY23 418 499 Chassis 100 Marelli Talbros Chassis Systems Pvt L
Slide 5: New Multi year orders worth Rs. 400+ crores received
New Multi year orders worth “Rs. 400+ crores received o The order has been received for Domestic and Overseas Customers across all the divisions and varied segments. These orders are to be executed over a period of next 4-6 years The order covers the following product lines Gaskets Heat Shields Forg
Slide 6: Q2FY23 Consolidated Performance Highlights
Q2FY23 Consolidated Performance Highlights o Total Income from Operations EBITDA Profit After Tax* 162.2 22.1 13.1 145.7 20.4 11.1 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 +11% +8% +18% Rs. Crores ^ Includes Other Income * Excludes Exceptional Items 5
Slide 7: H1 FY23 Consolidated Performance Highlights
H1 FY23 Consolidated Performance Highlights o Total Income from Operations EBITDA Profit After Tax* 316.9 42.9 25.0 284.5 39.5 21.1 HFY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 +11% +9% +18% Rs. Crores ^ Includes Other Income * Excludes Exceptional Items 6
Slide 8: Q2 FY23 Standalone Business Performance Highlights
Q2 FY23 Standalone Business Performance Highlights o Total Income from Operations EBITDA Gaskets 107.3 14.5 90.9 12.4 +18% +17% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Total Income from Operations EBITDA Forgings 55.0 54.7 7.9 7.5 -1% -5% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Rs. Crores Includes Other Income 7
Slide 9: H1 FY23 Standalone Business Performance Highlights
H1 FY23 Standalone Business Performance Highlights o Total Income from Operations EBITDA Gaskets 213.1 28.6 178.9 23.9 +19% +20% H1FY22 H1FY23 H1FY22 H1FY23 Total Income from Operations EBITDA Forgings 106.2 15.6 102.9 14.1 -3% -9% H1FY22 H1FY23 H1FY22 H1FY23 Rs. Crores Includes Other Income 8
Slide 10: Consolidated Performance Highlights (Q2 JVs)
Consolidated Performance Highlights o Nippon Leakless Talbros Marelli Talbros Chassis Systems Talbros Marugo Rubber 25.5 54.8 19.6 23.0 Revenues 40.3 12.4 +11% +36% +58% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 5.6 5.8 5.4 1.02 4.0 EBITDA +3% +33% 0.30 +238% Q2FY22 Q2FY23 Q2FY2 Q2FY23 Q2FY22 Q2FY23
Slide 11: Consolidated Performance Highlights (H1 JVs)
Consolidated Performance Highlights o Nippon Leakless Talbros Marelli Talbros Chassis Systems Talbros Marugo Rubber 47.5 99.9 36.2 Revenues 36.0 72.5 24.6 +32% +38% +47% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 10.3 9.5 1.90 8.4 7.3 EBITDA 1.10 +23% +30% +74% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY
Slide 12: Across varied segments…
Across varied segments… 0 4% 8% Domestic Breakup* 10% 11% 10% 26% 24% 9% 2 & 3 Wheelers 37% Passenger Vehicle 22% FY21 FY22 H1FY23 HCV & LCV 24% Agri & Off Loaders 28% Others 28% 33% 26% 6% 8% 8% 5% 5% 4% Breakup (Type of III OEM Market)* 25% 25% Exports FY21 23% FY22 H1 FY23 After Market 64% 64% 64
Slide 13: Q2 & H1 FY23 Consolidated Profit & Loss Statement
Q2 & H1 FY23 Consolidated Profit & Loss Statement o Particulars (Rs. In crores) Q2FY23 Q2FY22 Y-o-Y Q1FY23 QoQ H1FY23 H1FY22 Y-o-Y Revenue from Operations 160.7 144.0 12% 152.97 5% 313.7 280.8 12% Other Income 1.4 1.7 1.71 3.1 3.7 Total revenue from Operation 162.2 145.7 11% 154.7 5% 316.9 284.5 11%
Slide 14: Q2 & H1 FY23 Consolidated Balance Sheet
Q2 & H1 FY23 Consolidated Balance Sheet o EQUITY AND LIABILITIES Sep-22 Mar-22 ASSETS Sep-22 Mar-22 Non-current assets Equity Property, plant and equipment 159.7 153.3 Equity Share capital 12.3 12.3 Other equity 317.5 289.5 Capital work in progress 3.4 3.3 Shareholders' funds 329.8 301.9 Investment
Slide 15: Q2 & H1 FY23 Consolidated Cash Flow Statement
Q2 & H1 FY23 Consolidated Cash Flow Statement o Particulars (Rs in Cr) H1FY23 H1FY22 PBT 31.6 25.2 Adjustments 9.9 14.3 Operating profit before working capital changes 41.5 39.5 Changes in working capital -26.0 -11.9 Cash generated from operations 15.5 27.6 Direct taxes paid (net of refund) -4.9 -10
Slide 16: MDs Comments
MDs Comments o / / Commenting on the performance Mr. Anuj Talwar, Jt. Managing Director, Talbros Automotive Components Limited said: / I I The Company has been consistently delivering strong financial performance over the last 7-8 quarters. In Q2FY23, the Company registered its highest ever quarterl
Slide 17: Substantial Improvement in Business
Substantial Improvement in Business o Total Income from Operations EBITDA Profit After Tax* * c CAGR +29% 2 14.3% 14.2% 3 CAGR +84% 584.9 c 453.2 64.6 ^ CAGR +29% 83.2 24.4 44.9 FY21 FY22 FY21 FY22 FY21 FY22 Return on Equity (RoE) Return on Capital Employed (RoCE) Debt / Equity Debt has reduced by 3
Slide 18: Hedged Portfolio…
Hedged Portfolio… o H1 FY23 - Revenue Contribution Segments Product Portfolio Market Exposure TMR 4% ▪ 2 Wheelers ▪ Gaskets ▪ OEMs NLK 5% ▪ 3Wheelers ▪ Heat Shields ▪ After Market MTCS ▪ Passenger Vehicles ▪ Forgings ▪ Exports 12% ▪ Commercial Vehicles ▪ Chassis Systems ▪ Others Forgings ▪ Anti vibr
Slide 19: Having Diversified Customer base - Top Customers
Having Diversified Customer base - Top 10 Customers FY22 H1 FY23 01 Maruti Suzuki India Limited 10% 01 Maruti Suzuki India Limited 11% 02 Bajaj Auto 9% 02 TATA Motors Limited 9% 03 TATA Cummins 8% 03 Jaguar Land Rover Limited 8% 04 Hero Motocorp Limited 7% 04 Bajaj Auto 7% 05 Tata Motors Limited 7%
Slide 20: Venturing into EV
Venturing into EV talbrfofe Autenwtue Components / o FORGINGS o Supplying parts for Plug-in hybrid Electric Vehicles to OEMs globally / / 71 talbr(ofe I MARELLI 1 — i o Marelli Talbros is working on new RFQ’s for several Indian and global OEM’s for supporting development of future EV’s o Marelli Tal
Slide 21: Gasket Business
Gasket Business Standalone – Total Income ▪ In – House tool design and manufacturing 382 ▪ ~40% Market share in Gaskets 3x the nearest competitor 333 292 287 ▪ Market Leader in – Two Wheeler, Agri & Off Loaders, HCV 265 213 & LCV segment ▪ Single Source Supplier for 5 of our customers ▪ 100% Asbesto
Slide 22: Standalone Business – Forgings
Standalone Business – Forgings o 204 ▪ One stop solution for Hot Forging 166 170 (750 to 2,500 Ton Press) 134 51.4% ▪ In-House tool design and manufacturing 115 103 ▪ Strong presence in Overseas Market & Supplier to top Tier I companies 41.5% 7.2% ▪ One Stop Solution for Die Design, Machine parts an
Slide 23: Strong Global Partnerships - Joint Ventures
Strong Global Partnerships - Joint Ventures talbrfofe Autenwtue Components / o y NIPPON LEAKLESS CORPORATION talbrfofe II MARELLI © Marugo Rubber Industries, Ltd. Nippon Leakless Talbros Pvt Ltd (NLK) Marelli Talbros Chassis Systems Pvt Ltd (MTC) Talbros Marugo Rubber Pvt Ltd (TMR) r izn ▪ Marugo Ru
Slide 24: JV's Performance Highlights - Total Income from Operations
JV’s Performance Highlights - Total Income from Operations o Nippon Leakless Talbros Marelli Talbros Chassis Systems Talbros Marugo Rubber 117.9 122.1 164.6 52.0 54.7 106.0 136.8 45.8 129.7 124.3 40.8 41.0 83.4 109.0 74.2 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Rs.
Slide 25: About Us
About Us o 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 O
Slide 26: Leadership Team driving Growth & Profitability
Leadership Team driving Growth & Profitability o Anuj Talwar – Joint Managing Director Is a Bachelor in Business Administration from college of William & Mary, Virgina, USA and Master of Business Administration from Boston University Graduate School of Management. He has been associated with the Com
Slide 27: Board of Directors
Board of Directors 0 iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin iiimiiiiimiiiiiiiiiiiiiniiiiiiiiiiii • Mr. Naresh Talwar, aged 80 years, is a Promoter and Non- Executive • Mr. Umesh Talwar, has done B.Com (Hons) from Delhi University and MBA Mr. Naresh Talwar Chairman of the Company. He has been associ
Slide 28: Executive Management
Executive Management o 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 29 years of experience in the secretarial department and has worked with Constructions, Doosan Infracore, Esc
Slide 29: Scope of Joint Ventures
Scope of Joint Ventures 0 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
Slide 30: Evolving Product Portfolio
Evolving Product Portfolio o 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 Chassi
Slide 31: Diversified Customer - OEM
Diversified Customer - OEM talbrfofe Autenwtue Components / O 2 Wheeler l! RpYAL - Hero UMIFnEL® HONDA TTIatiindra YAMAHA BAJAJ r^wy M J < >- Passenger * mixij i RHINO R * :, ^ TTIatiindra MARUTI SUZUKI Hedged Customer Base 0 ® HCV/LCV suianaj FORCE FORCE MAN FORCE TRUCKS PvL Ltd DAIMLER Agri & Off
Slide 32: Consistently paying Dividend for the decade
Equity o In Rs. Consistently paying Dividend for the decade 2.5 2.0 1.8 1.5 1.5 1.5 1.5 1.2 1.2 1.2 1.2 0.5 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Promoter Shareholding 56.6% 56.6% 56.6% 56.6% 58.2% 58.2% 58.2% 51.5% 53.9% 54.0% 44.5% 45.6% 46.3% 41.6% Jun-10 Jun-11 Jun-12 Jun-1
Slide 33: Appreciation From Customers
Appreciation From Customers o ^ ASHOK LEYLAND General Motors Company 30001 Van Dyke Avenue CERTIFICATE OF APPRECIATION Warren, Ml 48083 This Certificate is awarded to www .gm.com TALBROS AUTOMOTIVE COMPONENTS LTD ( HARYANA ) We congratulate and appreciate your persistent efforts in maintaining highe
Slide 34: Customer Awards for Best Performances
Customer Awards for Best Performances r o . . -.-.. ot M Wd SI JLR Company " M I I 2 I 0QI XI>Y 0 *' * » ••• l»* - oni .- . - .- - - — — . . . . Site Location %m LOCIMA .* - ~.. *. . —.— .. . IW n lt . .. . . W ( .- — - * - ** * -. * . .. 1 «m «w >*" «•* *«» « »«« L 4 * «l c d * o ta^ u * MJ II. * H
Slide 35: For further information, please contact
talb For further information, please contact: Company : Investor Relations Advisors : talbrfofe Automotive Components \. / geostrategic Growth Advisors Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Ms. Seema Narang Mr. Sh
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