India Nippon Electricals Limited · NSE:INDNIPPON
India Nippon Electricals — Investor Presentation (July 2024)
39 slides from India Nippon Electricals's investor presentation, Jul 1, 2024
Slide 1: Exchange cover letter for investor presentation
July 01, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Dalal Street Bandra (East), Mumbai – 400 051 Mumbai - 400 001 Scrip: INDNIPPON Scrip: 532240 Sub: Investor Presentation Dear Sir/ Madam, Pursuant to Regulat
Slide 2: Investor Presentation July 2024
INVESTOR PRESENTATION July 2024
Slide 3: Table of Contents
TABLE OF CONTENTS Company Overview Business Overview Strategic Overview Industry Overview Financial Overview 2 INVESTOR PRESENTATION
Slide 4: Company Overview
Company Overview
Slide 5: Snapshot
SNAPSHOT 39 Years 3 1 Tier 1 1,605+ Of State of the Supplier to Major Employees Experience Manufacturing Auto OEM’s Plants Research Center INR 30%+ 14.59% Debt Free 15,351 Mn Consistent 3 Year Revenue Dividend Payout CAGR Market Cap track record 4 INVESTOR PRESENTATION
Slide 6: Company Overview
COMPANY OVERVIEW India Nippon Electricals Limited (INEL) was incorporated in 1984 and owned by Lucas Indian Service Limited, a wholly- Revenue (INR Mn) & EBITDA Margins (%) owned subsidiary of Lucas-TVS Limited to manufacture electronic ignition systems for two-wheelers, three-wheelers and portabl
Slide 7: Journey
JOURNEY 1984-1988 1989-1993 1994-1998 1999-2003 2004-2008 2009-2013 2014-2018 2018-2023 2023 • Incorporation of • Introduction of • Export of ignition • Supply of Ignition • Supply of FWM & RR • Commencement of • Started supplies • Expanded into onwards the Company electronic ignition coils to Japan
Slide 8: Eminent Leadership
EMINENT LEADERSHIP Mr. T.K Balaji Mr. Arvind Balaji - Chairman - Managing Director Mr. Arvind Balaji, (DIN 00557711), was appointed as director of the Mr. T. K. Balaji, (DIN 00002010), was appointed as a Director on the Board of the Company w.e.f 25th October, 2008 and was inducted on the board
Slide 9: Board of Directors and Key Management Personnel
BOARD OF DIRECTORS AND KEY MANAGEMENT PERSONNEL Managing Independent Non- Executive Chairman Director Directors Directors TK Balaji Arvind Balaji Heramb Ravindra Hajarnavis Priyamvada Balaji Anant Jaivant Talaulicar Gangapriya Chakraverti Company Chief Technical Chief Financial Secretary and P
Slide 10: World-Class Manufacturing Facilities
WORLD-CLASS MANUFACTURING FACILITIES 9 INVESTOR PRESENTATION
Slide 11: Strong Internal State-of-the-Art R&D Facilities & Infrastructure
ASSISTED BY STRONG INTERNAL STATE-OF-THE-ART R&D FACILITIES & INFRASTRUCTURE • Today’s technology advances call for constant innovation and manufacture of products of high quality and reliability at competitive prices. • Realizing this dictum, INEL has invested substantially in equipping its R&D to
Slide 12: Key Clientele
KEY CLIENTELE *Logos are meant for representative purposes only 11 INVESTOR PRESENTATION
Slide 13: Geographical Presence
GEOGRAPHICAL PRESENCE INDIA USA ITALY Revenue Split CHINA 5% SLOVENIA TURKEY VIETNAM THAILAND JAPAN NEPAL SRI LANKA BANGLADESH 95% AFRICA Domestic Export 12 INVESTOR PRESENTATION
Slide 14: Business Overview
Business Overview
Slide 15: Product Portfolio
PRODUCT PORTFOLIO Electronic Ignition Controllers Sensors Electric Vehicles Aftermarket System It is a modern automotive It refers to the various It is the collection of various Recently established world-class A dedicated team is focusing on ignition system that replaces the electronic control unit
Slide 16: Electronic Ignition System
ELECTRONIC IGNITION SYSTEM AC Generator/ Flywheel Magneto Regulator & Rectifier/ Ignition Coil Power Boosts Regulator Flywheel Magneto is an electrical machine with Regulator & Rectifier plays a crucial role to rectify and Ignition Coil is an induction coil in an automobile's permanent magnet rotor
Slide 17: Controllers
CONTROLLERS ISG Controller EGR Controller EFI ECU It plays a central role in managing the Exhaust Gas Recirculation controller, is It is responsible for managing various operation of the Integrated Starter a component in a vehicle's engine aspects of the engine's operation, Generator system, which c
Slide 18: Sensors
SENSORS Speed Sensor Temperature Sensor Throttle Position Sensor Oil Level Sensor Differential Sensor TMAP Sensor Steering Angle Sensor RPAS Ultrasonic Sensor Tyre Pressure Monitoring Sensor 17 INVESTOR PRESENTATION
Slide 19: 2W Electric Vehicles
2W ELECTRIC VEHICLES Traction Motor Traction motors are powered by electricity and generate the power to rotate the wheels. They are typically mounted in the trucks where the wheels are housed. Cluster Motor Controller It refers to the instrument cluster or dashboard panel found on a two-wheeled veh
Slide 20: After Market Sales
After Market Sales Currently After Market Sales contribute to around 12% of overall Sales with a target to reach 15% levels by FY25 900 800 700 600 500 400 836 694 300 549 200 381 261 100 0 FY20 FY21 FY22 FY23 FY24 Sales (INR Mn) 19 INVESTOR PRESENTATION
Slide 21: Customer Wise Sales
CUSTOMER WISE SALES Customer wise Sales – FY 22/23 Customer wise Sales – FY 23/24 Others, 53% Customer A, Others, 50% 50% Customer A, 47% Customer diversification is increasing. 20 INVESTOR PRESENTATION
Slide 22: Strategic Overview
Strategic Overview
Slide 23: Industry vs INEL Performance Over Years
INDUSTRY V S I N E L P E R F O R M A N C E O V E R Y E A R S Highly volatile Situation : BS4 → BS6 Change over ISG Migration Despite all challenges INEL has outgrown the OBD1 & OBD 2 regulatory changes Industry in last 5 years Covid pandemic Industry [ICE] Vs INEL Growth High EV promotions 16% 17% 1
Slide 24: Industry Growth vs INEL Sales [FY 23/24: YTD - Qty]
INDUSTRY GROWTH VS INEL SALES [FY 23/24: YTD - QTY] 8% 13% 12% 17% 10% FY23-24 14.5 Mn 5.94 Mn 0.49 Mn 0.96 Mn 21.9 Mn FY22-23 13.4 Mn 5.28 Mn 0.44 Mn 0.82 Mn 19.9 Mn Industry 3% 26% 39% 23% 11% FY23-24 3.58 Mn 1.62 Mn 0.49 Mn 0.29 Mn 5.98 Mn 3.49 Mn 1.29 Mn 0.35 Mn 0.24 Mn 5.37 Mn INEL FY22-23 Refe
Slide 25: Key Customers – Market Share
KEY CUSTOMERS – MARKET SHARE Key Customers considered (in Mn) 16.8 14.3 13.8 12.9 12.8 12.4 5.6 5.8 5.1 5.3 4.9 4.8 Share Share Share Share Share Share 33% 35% 38% 39% 41% 42% 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Vehicle Production FWM Supply Market share for Key Customers increased from
Slide 26: Key Strengths
KEY STRENGTHS Strong Client base Thrust On Technology Organizational Agility Offers wide range of Strong Customer Focus Stringent Manufacturing Practices Value Addition products 25 INVESTOR PRESENTATION
Slide 27: Future Growth Strategies
FUTURE GROWTH STRATEGIES Capitalizing on Core Business Advancing Aftermarket Business Focused on exploiting the opportunities presented within core A dedicated team and several measures are taken to strengthen product business by introducing new products for two & three-wheelers. range and distribut
Slide 28: Environmental, Social and Governance Principles – E
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRINCIPLES E INEL’s dedication lies in practicing responsible waste management and tracking chemical usage. Their objective is to mitigate their ecological footprint by implementing a robust waste management approach that curtails waste production, encourages rec
Slide 29: Environmental, Social and Governance Principles – S
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRINCIPLES S Employee engagement is a cornerstone of success at As a responsible and caring organization, INEL INEL, to foster a dynamic and motivated workforce. With ensures a safe and conducive working environment a deep commitment to creating a positive and nu
Slide 30: Environmental, Social and Governance Principles – G
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRINCIPLES G INEL firmly believes in the importance of strong governance as a cornerstone of its corporate identity. With a commitment to transparency, accountability, and ethical conduct, they have set the bar high for corporate governance standards in the indus
Slide 31: Industry Overview
Industry Overview
Slide 32: Auto-Component Sector
AUTO-COMPONENT SECTOR • The Indian auto-components industry is set to become • Automotive Ignition System Market is estimated to the third-largest in the world by 2025. grow at 6.5% CAGR to reach USD 18.1 Bn by 2032 • Auto-components industry accounts for 2.3% of India’s during 2023-2032. GDP. The a
Slide 33: Financial Overview
Financial Overview
Slide 34: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR in Mn) FY20 FY21 FY22 FY23 FY24 Revenue from Operations 4,788 4,812 5,663 6,563 7,241 Operating Expenses 4,239 4,349 5,166 6,035 6,577 EBITDA 569 463 497 528 664 EBITDA Margins (%) 11.87% 9.63% 8.78% 8.05% 9.17% Depreciation 94 103 129 146 151 Finance C
Slide 35: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24 EQUITY AND LIABILITIES ASSETS Equity Share Capital 113 113 113 Non-Current Assets Other Equity 4,939 5,490 6,120 Property, Plant and Equipment 1,163 1,211 1,312 Shareholders Fund 5,052 5,603 6,233 Righ
Slide 36: Financial Graphs
FINANCIAL GRAPHS Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 664 7,241 593 6,563 569 528 543 5,663 497 503 482 463 4,788 4,812 396 11.87% 11.34% 9.63% 9.17% 8.88% 8.78% 8.05% 8.23% 8.19% 7.34% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY2
Slide 37: Capital Market Data
CAPITAL MARKET DATA 1 Year Stock Performance (up to 31st March, 2024) Dividend Payout (%) 140% 120% 100% 39.1% 35.1% 36.7% 80% 32.0% 33.3% 33.3% 60% 40% 20% 0% Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Indian Nippon Electrcals Limited Sensex FY19 FY20 FY21 F
Slide 38: Disclaimer
DISCLAIMER India Nippon Electricals Limited (INEL Disclaimer) No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and
Slide 39: Thank You
Thank You
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