Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q2 FY2016 Earnings Presentation
29 slides from Elecon Engineering's earnings presentation, December 2015
Slide 1: Elecon Engineering Investor Update Q2FY2016
Elecon Engineering Investor Update Q2FY2016 ELECON.COM| BSE: 505700 | NSE: ELECON | BLOOMBERG: ELCN:IN | REUTERS: ELCN.NS
Slide 2: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "p
Slide 3: Background and Journey So far
Background and Journey So far 3
Slide 4: History and Journey
History and Journey Elecon Engineering Company was 1951 1960 incorporated as Private Limited Company • Established in Goregaon, Mumbai by Ishwar Bhai Patel • Foray into Listed on Bombay Foray into bulk manufacturing Stock Exchange material handling conveying plants equipment Headquartered to 1962 Va
Slide 5: Corporate Structure in 2012
Corporate Structure in 2012 Public Shareholding Promoters Holding 54% 46% 100% 100% Elecon Engineering Prayas Engineering EMTICI Engineering MHE Gears Others MHE Gears MHE Gears 100% Elecon EPC We underwent a restructuring in 2012, the objective was: • Management focus enhancing operational and mana
Slide 6: Corporate Structure - Today
Corporate Structure - Today Public Limited Company Elecon Engineering Company Ltd. Elecon Transmission Elecon EPC Standalone International(Gears) 60.49% Subsidiary (Gears) 100% Subsidiary Material Handling Equipment(MHE) Shareholding Pattern of Elecon Engineering Co. Ltd. AB Benzlers Radicon UK Prom
Slide 7: Business Profile
Business Profile Largest gear manufacturer in Pioneer in material handling Radicon (David Brown) is a Asia business in India brand name known in Europe Most comprehensive range of Providing end to end solutions for over 70 years as an expert industrial gears under one roof to the core sectors
Slide 8: Board of Directors
Board of Directors Shri Prayasvin B. Patel, Chairman and Managing Director Shri Chirayu R. Amin, Independent Director He is the Chairman cum Managing Director of Alembic About 40 years of industry experience with direct Limited. He has vast experience in business strategy and responsibility of both
Slide 9: Operational Highlights
GEARING THE FUTURE Operational Highlights
Slide 10: Investments in Technology
Investments in Technology Gears Developed new series of cooling tower gear boxes to cater to the power sector. Developing shaft mounted planetary gear boxes for sugar industry Developed new series of EON/EOS to be more competitive in the market MHE New Equipment developed: Stacker with "C"
Slide 11: Scale Through Infrastructure
Scale Through Infrastructure Invested over INR 1000 mn in setting up the Bhanubhai Memorial Center of Excellence in 2012 Mazak Machines – 9 nos Liebherr Machines – 7 nos Hoffler (Klingelnberg) – 6 nos Youji (Taiwan) – 6 nos Over 150,000 sq mt of shop areas in MHE area 3 Axis Co-ordinat
Slide 12: A portfolio for all industries- Gears
A portfolio for all industries- Gears Sponge Iron Chemicals Marine Mining 2% 2% 2% Lift Gears 3% 5% Plastic and Rubber 6% Others 28% Cement 7% Sugar 9% Steel Power 11% 25% 12
Slide 13: MHE industrial Portfolio
MHE industrial Portfolio Port 1% Others Cement 10% 17% Steel 4% Mining 12% Power 56% 13
Slide 14: Financials
GEARING THE FUTURE 14
Slide 15: Consolidated Financials
Consolidated Financials 20,000 2500 2000 15,000 1500 10,000 1000 5,000 500 - 0 2011 2012 2013 2014 2015 H1F16 Sales 12,843 16,132 15,268 12,929 13,289 5403 EBITDA 1885 2087 2082 1497 1698 661 PAT 900 611 179 137 163 55 15
Slide 16: Order Book Position - Gears
Order Book Position - Gears 6,110 5,140 4,820 2,340 2,660 2,060 2013 2014 2015 Orders booked during the year Order Pending as in FY15 16
Slide 17: Order Book Position- MHE
Order Book Position- MHE 16,680 11,590 11,080 11,540 4,970 4,260 2013 2014 2015 Orders booked during the year Order Pending as in FY 15 17
Slide 18: Order Book Position – B&R
Order Book Position – B&R 2,610 2,530 2,460 680 560 530 2013 2014 2015 Orders booked during the year Order Pending as in FY 15 18
Slide 19: Standalone Performance- FY16
Standalone Performance- FY16 Standalone Q2FY16 review (Y/Y %) Total Operating revenue was Rs. 1114 mn as compared to Rs. 1178 mn during the corresponding period of previous year. EBITDA stood at Rs. 277 mn as compared to Rs. 192 mn during the corresponding period of previous year, an increase of
Slide 20: Consolidated Performance- FY16
Consolidated Performance- FY16 Consolidated Q2FY16 (Y/Y %) Total Operating revenue was Rs. 2832 mn as compared to Rs. 2984 mn during the corresponding period of previous year. EBITDA stood at Rs. 353 mn as compared to Rs. 250 mn during the corresponding period of previous year, an increase of 41
Slide 21: Competition- PTE
® Competition- PTE (@ ; SIEMENS sien FLENDER sw nau New Allenberry Works rps ‘an ISO / TS 16949 Certited Company EURODRIVE 2 remum J Bonfiglioli ties DRIVESYSTEMS 21
Slide 22: Competition- MHE
Competition- MHE Mcnally Shar bel us [2] Trssentunn é Ter TATA PROJECTS Gls implify.Create mIDTH A TATA Enterprise petite ENE 22
Slide 23: Way Forward
GEARING THE FUTURE Way Forward 23
Slide 24: Economic Outlook - Positive but gradual
Economic Outlook - Positive but gradual Economy Economy is gradually moving towards revival, thereby increasing the level of The Indian Engineering Industry capex within each industry. India likely to become a larger Sizable investments in the core sector manufacturing base for the global indu
Slide 25: Strategic Initiatives
Strategic Initiatives The company has made significant efforts towards business reorganization over the last couple of years. Operations turnaround from Batch processing to Cellular processing Rationalization of the manpower Deployment of Total productivity management measures across various
Slide 26: Revenue Outlook – Vision 2018
Revenue Outlook – Vision 2018 8,000 4,000 9,000 All figures in INR mn 2,950 5,050 5,200 GEARS MHE BR 2015 2018 Drive exports from 15% of turnover to 30% by 2018 26
Slide 27: Margin Outlook – Vision 2018
Margin Outlook – Vision 2018 25 -28% 18 – 23% 17 – 19% 8 – 10% 12 – 13% 3 – 5% GEARS MHE BR 2015 2018 27
Slide 28: Multiple growth Drivers
Multiple growth Drivers Scale: Elecon is the largest manufacturer of gears in Asia, ~30% market share in India Scope: Encompasses both catalogue and engineered products for all the core industries Size: Its MHE arm, the third largest in India provides EPC solution to all industries Skills: Over 6 de
Slide 29: Thank you
GEARING THE FUTURE Thank you 29