Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Q4 FY23 Earnings Presentation
43 slides from Escorts Kubota's earnings presentation, May 10, 2023
Slide 1: Intimation of Press Release / Earning Presentation
May 10, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra East, Mumbai – 400051 BSE – 500495 NSE - ESCORTS Sub: Intimation of Press Release/ Earning Presentation Dear Sir/ Ma’am, Please find
Slide 2: Consolidated Profit up by 13.9% to 216.5 Crore in Q4FY23
Escorts Kubota Limited ~KL Consolidated Profit up by 13.9% tot 216.5 Crore in Q4FY23 (FY23 Consolidated profit at f 636. 7 Crore) • Tractor volumes up by 13. l % at 24, 765 units. • Construction Equipment volumes up by 18.8% at 1,528 units. • Consolidated EBIDTA at ~ 233.2 crore. • Consolidated Net
Slide 3: Press release: FY23 consolidated and standalone results
Escorts Kubota Limited For the year ended March 2023, consolidated revenue from operations at< 8,428.7 crore was up by 15.7% as against < 7,282.7 crore in the previous year. The consolidated profit before tax and before the exceptional item of < 53.1 crore was at < 887.6 crore against < 992.8 crore
Slide 4: Press release: segment performance
Escorts Kubota Limited corresponding period last year and up by 159 bps against 8.3% in Sequential quarter, led by better realization and softening in commodity prices. For year ended March 2023, tractor volumes went up by 9.6% at 1,03,290 units as compared to 94,228 units last year. Segment revenue
Slide 5: Q4 FY23 Earning Presentation
Q4 FY23 | EARNING PRESENTATION 10th May 2023 BSE: 500495 | NSE: ESCORTS 10-05-2023 Escorts Kubota Limited 1
Slide 6: Contents
CONTENTS 01 02 03 04 Company Q4/FY23 Credit Rating & Management Overview Standalone Debt Profile Message Highlights 05 06 07 08 Segmental Shareholding Q4/FY23 Annexure & Performance Pattern Consolidated Narrations Highlights 10-05-2023 Escorts Kubota Limited 2
Slide 7: Escorts Kubota Limited: Overview
Escorts Kubota Limited: Overview (Formerly Escorts Limited) Standalone Revenue in ₹. Crore. Escorts Kubota Limited (EKL) A leading engineering conglomerate with FY23 8,345 a history of over seven decades, steering India’s socio-economic growth through pioneering contribution in critical industrial s
Slide 8: Q4FY23 YoY Highlights
Q4FY23 YoY Highlights Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume 18.7% 13.9% -4.9% Export Tractor Volume -22.7% 3.8% 26.4% Total Tractor Volume 12.4% 13.1% 0.7% PNC Volume 27.4% 26.5% -0.8% BHL Volume 30.8% 4.8% -25.9% Compactor Volume 7.4% -10.0% -17.4% Served Construct
Slide 9: Q4FY23 YoY at a Glance
Q4FY23 YoY at a Glance Particulars Unit Q4FY23 Q4FY22 Variance Domestic Tractor Market Share % 10.9% 11.4% -47 bps Revenue from Operations ₹ Cr. 2,183.0 1,869.6 16.8% Material Cost % 71.5 70.1 142 bps Manpower Cost % 7.2 6.4 79 bps EBIDTA ₹ Cr. 235.8 251.5 -6.2% EBIDTA Margin % 10.8 13.5 -265 bps Ot
Slide 10: Q4FY23 YoY at a Glance
Q4FY23 YoY at a Glance 24,765 1,528 ₹ 237.2 Crore Tractors Volumes Construction Equipment’s Revenue from Railway Equipment 13.1% 18.2% 37.3% ₹ 2,183.0 Crore ₹ 235.8 Crore ₹ 185.5 Crore Revenue From Operations EBIDTA Profit After Tax 16.8% -6.2% -8.3% Impacted due to Exception cost provision on accou
Slide 11: Q4 - YoY Revenue up by 16.8%; EBIT up by 0.6%
Q4 - YoY Revenue up by 16.8%; EBIT up by 0.6% ₹ Cr. Revenue Key Highlights • Tractor Sales up by 13.1% at 24,765 units • Construction Equipment Sales up by 18.8% at 1,528 units • Railway Equipment revenue up by 37.3% at ₹ 237.2 Crore. ₹ Cr. EBIT Key Highlights • Adversely impacted due to • Commodity
Slide 12: Q4FY23 QoQ at a Glance
Q4FY23 QoQ at a Glance Particulars Unit Q4FY23 Q3FY23 Variance Domestic Tractor Market Share % 10.9% 10.6% 36 bps Revenue from Operations ₹ Cr. 2,183.0 2,263.7 -3.6% Material Cost % 71.5 74.5 -300 bps Manpower Cost % 7.2 6.7 43 bps EBIDTA ₹ Cr. 235.8 190.3 23.9% EBIDTA Margin % 10.8 8.4 240 bps Othe
Slide 13: Q4FY23 QoQ at a Glance
Q4FY23 QoQ at a Glance 24,765 1,528 ₹ 237.2 Crore Tractors Volumes Construction Equipment’s Revenue from Railway Equipment -11.6% 26.4% -4.8% ₹ 2,183.0 Crore ₹ 235.8 Crore ₹ 185.5 Crore Revenue From Operations EBIDTA Profit After Tax -3.6% 23.9% -0.5% Impacted due to Exception cost provision on acco
Slide 14: Q4 - QoQ Revenue down by 3.6%; EBIT up by 12.3%
Q4 - QoQ Revenue down by 3.6%; EBIT up by 12.3% ₹ Cr. Revenue Key Highlights • Tractor Sales down by 11.8% at 24,765 units • Construction Equipment Sales up by 26.4% at 1,528 units • Railway Equipment revenue down by 4.8% at ₹ 237.2 Crore. ₹ Cr. EBIT Key Highlights • Cost Reduction • Operating lever
Slide 15: Q4FY23 at a Glance
Q4FY23 at a Glance ₹ 14.3 13.1% 8.9% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~80% ~60% More than ₹ 1,050 Crore Capacity Utilization Capacity Utilization Of Order Book Agri Machinery Construction Equipment Railway Equipment Division (as of 31st March 20
Slide 16: FY23 YoY at a Glance
FY23 YoY at a Glance Particulars Unit FY23 FY22 Variance Domestic Tractor Market Share % 10.1% 10.3% -26 bps Revenue from Operations ₹ Cr. 8,345.0 7,196.9 16.0% Material Cost % 72.7 68.5 416 bps Manpower Cost % 7.1 7.3 -21 bps EBIDTA ₹ Cr. 780.4 995.5 -21.6% EBIDTA Margin % 9.4 13.8 -448 bps PBT Bef
Slide 17: FY23 YoY at a Glance
FY23 YoY at a Glance 1,03,290 4,620 ₹ 841.9 Crore Tractors Volumes Construction Equipment’s Revenue from Railway Equipment 9.6% 12.2% 32.3% ₹ 8,345.0 Crore ₹ 780.4 Crore ₹ 607.0 Crore Revenue From Operations EBIDTA Profit After Tax 16.0% -21.6% -20.7% Impacted due to provision on account of impairme
Slide 18: FY - YoY Revenue up by 16.0%; EBIT down by 11.8%
FY – YoY Revenue up by 16.0%; EBIT down by 11.8% ₹ Cr. Revenue Key Highlights • Tractor Sales up by 9.6% at 1,03,290 units • Construction Equipment Sales up by 12.2% at 4,620 units • Railway Equipment revenue up by 32.3% at ₹ 841.9 Crore. ₹ Cr. EBIT Key Highlights • Adversely impacted due to steep i
Slide 19: FY23 at a Glance
FY23 at a Glance ₹ 46.7 11.2% 7.5% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~90% ~45% More than ₹ 1,050 Crore Capacity Utilization Capacity Utilization Of Order Book Agri Machinery Construction Equipment Railway Equipment Division (as of 31st March 2023
Slide 20: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- AA AA AA+ Rating (₹ Crs.) 600 553 436 480 360 263 50 277 7 0 0 0 120 .0 111.0 500 100 .0 96.0 400 290 80.0 206 302 300 50.0 60.0 57.0 200 220 40.0 159 220 263 31.0 28.6 230 18.5 178 15.5 100 20.0 140 11.0 12.7 104 10.3 50
Slide 21: Management Message
Management Message Our efforts are aligned with our Mid Term Business Plan for achieving the targeted growth in coming years. In agri business, while the retail sales were impacted due to unseasonal rainfall and crop damage in certain regions, however, with better crop prices, improved finance avail
Slide 22: Segmental Performance
Segmental Performance 10-05-2023 Escorts Kubota Limited 18
Slide 23: Agri Machinery
Agri Machinery Powering The Dreams Of Farmer 10-05-2023 Escorts Kubota Limited 19
Slide 24: Q4 Agri Machinery Domestic Performance
Q4 Agri Machinery Domestic Performance Domestic Tractor Industry (in Lakhs) EKL Domestic Tractor Volumes 2.5 -11.8% QoQ 2.5 -14.7% QoQ 26,181 13.9% YoY 18.7% YoY 23,081 2.0 2.1 20,272 1.8 1.5 1.0 0.5 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 EKL-Tractor ELK - Tractor Industry in Strong Regions grew
Slide 25: Q4 Agri Machinery Export Performance
Q4 Agri Machinery Export Performance Export Tractor Industry (in ‘000s) EKL Export Tractor Volumes 35.0 2,000 -22.7% YoY 1,800 -8.7% QoQ 30.0 32.2 3.8% YoY 1,844 -15.0% QoQ 29.2 1,600 1,684 1,623 25.0 1,400 24.9 1,200 20.0 1,000 15.0 800 10.0 600 400 5.0 200 - - Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4
Slide 26: Agri Machinery Performance at Glance in Q4
Agri Machinery Performance at Glance in Q4 ₹ 1,557.5 Crore 9.9% ~80% Segmental Revenue EBIT margin Capacity Utilization 13.5% -8.8% -547 bps 159 bps (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 44:56 34:66 25.9% Farmtrac : Powertrac Sales Ratio* Less than 40 HP : Greater than 40 HP Sales Ratio* Return on Capital
Slide 27: FY Agri Machinery Domestic Performance
FY Agri Machinery Domestic Performance Domestic Tractor Industry (in Lakhs) EKL Domestic Tractor Volumes +12.2% YoY +9.4% YoY 9.5 95,266 8.4 87,043 FY22 FY23 FY22 FY23 EKL-Tractor ELK - Tractor Industry in Strong Regions grew Industry in Rest Region grew by by 16.1% Y-o-Y 8.5% Y-o-Y In Strong Region
Slide 28: FY Agri Machinery Export Performance
FY Agri Machinery Export Performance Export Tractor Industry (in ‘000s) EKL Export Tractor Volumes -3.2% YoY 128.6 11.7% YoY 124.6 8,024 7,185 FY22 FY23 FY22 FY23 Export through Kubota channel 30%+ 6.4% Share of Market in 9MFY23, Highest Ever Export Sales of total Export volume up by 86 bps Y-o-Y Gr
Slide 29: Agri Machinery Performance at Glance in FY
Agri Machinery Performance at Glance in FY ₹ 6,316.1 Crore 9.3% ~90% Segmental Revenue EBIT margin Capacity Utilization 13.5% -609 bps (Y-o-Y) (Y-o-Y) 42:58 37:63 26.2% Farmtrac : Powertrac Sales Ratio* Less than 40 HP : Greater than 40 HP Sales Ratio* Return on Capital Employed (Annualized) 42:58 3
Slide 30: Construction Equipment
Construction Equipment Preferred Partner In Nation Building 10-05-2023 Escorts Kubota Limited 26
Slide 31: Q4 - Construction Equipment Performance
Q4 - Construction Equipment Performance Served Industry Performance (000’s) EKL Construction Equipment Volumes 28.1% YoY 23.1% QoQ 18.8% YoY 26.4% QoQ 1,528 18.0 1,286 14.6 1,209 14.1 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 BHL Industry up by 30.8% Y-o-Y PnC Industry up by 27.4% Y-o-Y Compactors I
Slide 32: Construction Equipment Performance at Glance in Q4FY23
Construction Equipment Performance at Glance in Q4FY23 ₹ 384.8 Crore 8.1% ~60% Segmental Revenue EBIT margin Capacity Utilization 20.5% 25.7% 452 bps 585 bps (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 3.0% 12.0% Product wise Market Share 5.4% 40.2% Revenue Break up 7.2% 79.7% 1.4% Crane Compactor BHL Traded+ S
Slide 33: FY - Construction Equipment Performance
FY - Construction Equipment Performance Served Industry Performance (000’s) EKL Construction Equipment Volumes 24.5% YoY 12.2% QoQ 55.4 4,620 4,117 44.5 FY22 FY23 FY22 FY23 BHL Industry up by 28.2% Y-o-Y PnC Industry up by 24.9% Y-o-Y Compactors Industry down by 4.8% Y-o-Y Growth De-Growth % rounded
Slide 34: Construction Equipment Performance at Glance in FY
Construction Equipment Performance at Glance in FY ₹ 1,179.0 Crore 2.9% ~45% Segmental Revenue EBIT margin Capacity Utilization 19.5% 48 bps (Y-o-Y) (Y-o-Y) 6.4% Product wise Market Share 11.6% 5.0% 39.7% Revenue Break up 6.6% 77.0% 1.4% Crane Compactor BHL Traded+ Spare BHL Compactor Crane Up Down
Slide 35: Railway Equipment Division
Railway Equipment Division ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 10-05-2023 Escorts Kubota Limited 31
Slide 36: Railway Equipment Division Performance Q4FY23
Railway Equipment Division Performance Q4FY23 ₹ 237.2 Crore 14.0% More than ₹ 1,050 Crore Segmental Revenue EBIT margin Of Order Book 37.3% -4.9% 83 bps 88 bps (as of 31st March 2023) (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) 69:31 NPD : conventional Sales Ratio 25.8% Return on Capital Employed 67:33 62:38 (A
Slide 37: Railway Equipment Division Performance in FY
Railway Equipment Division Performance in FY ₹ 841.9 Crore 13.8% More than ₹ 1,050 Crore Segmental Revenue EBIT margin Of Order Book 32.3% -106 bps (as of 31st March 2023) (Y-o-Y) (Y-o-Y) 65:35 NPD : conventional Sales Ratio 38.7% Return on Capital Employed 65:35 (Annualized) (In FY22) Up Down % rou
Slide 38: Shareholding Pattern
Shareholding Pattern Shareholding Trend ^ Category Mar'2022 June'2022 Sept'2022 Dec'2022 Mar'2023 Promoters 28.1 72.9 72.9 72.9 72.9 Kubota Corporation 16.4 * * * * Escrow Account (open offer) 39.4 Institutions# 4.0 11.3 12.4 12.4 12.8 Public 10.3 14.0 13.0 13.0 12.7 Non Promoter Non Public 1.8 1.8
Slide 39: Consolidated Q4FY23 at a Glance
Consolidated Q4FY23 at a Glance YoY QoQ Particulars Unit Q4FY23 Q4FY22 (Change) Q3FY23 (Change) Revenue from Operations ₹ Cr. 2,214.5 1,886.6 17.4% 2,291.4 -3.4% Material Cost % 71.6% 70.0% 159 bps 74.5% 290 bps Manpower Cost % 7.2% 6.5% 75 bps 6.8% 43 bps EBIDTA ₹ Cr. 233.2 248.2 -6.0% 191.3 21.9%
Slide 40: Consolidated FY23 at a Glance
Consolidated FY23 at a Glance YoY Particulars Unit FY23 FY22 (Change) Revenue from Operations ₹ Cr. 8,428.7 7,282.7 15.7% Material Cost % 72.6% 68.4% 428 bps Manpower Cost % 7.2% 7.4% -23 bps EBIDTA ₹ Cr. 777.5 995.4 -21.9% EBIDTA Margin % 9.2% 13.7% -444 bps PBT Before Exceptional items ₹ Cr. 887.6
Slide 41: Narrations
Narrations • EKL - Escorts Kubota Limited • BHL – Backhoe Loader • FY – Fiscal Year represents the 12 months period from 1st • IndAS - – Indian Accounting Standards April to 31st March. • NPD – New Product Developed • Q4FY22 – Represents the 3 months period from 1st Jan • PnC – Pick & Carry Crane 20
Slide 42: Safe Harbor
SAFE HARBOR Certain statements in this document may include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors tha
Slide 43: Thank You
THANK YOU 08-02-2023 Escorts Kubota Limited 39