Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Q2 FY2025 Earnings Presentation
36 slides from Samvardhana Motherson International's earnings presentation, Nov 12, 2024
Slide 1: Cover letter to stock exchanges on Q2 FY25 results
Samvardhana Motherson International Limited Head Office: C-14 A & B, Sector 1, Noida – 201301 Distt. Gautam Budh Nagar, U.P. India Tel: +91-120-6752100, 6752278, Fax: +91-120-2521866, 2521966, Website: www.motherson.com November 12, 2024 BSE Limited National Stock Exchange of India Limited 1st Floor
Slide 2: Presentation on Q2 FY 2024-25 Results
Samvardhana Motherson International Limited. Presentation on Q2 FY 2024-25 Results 11
Slide 3: Key Highlights 01/02: Performance at a glance
Key Highlights 01/02. Resilient performance in volatile environment... Performance at a glance. Q2FY25 vs Q2FY24. H1FY25 vs H1FY24. Revenue1 Revenue1 Rs 27,812 crores, 18% Rs 56,680 crores, 23% Normalised2 EBITDA Normalised2 EBITDA Rs 2,463 crores, Rs 5,248 crores, 33% 23% Normalised2 PAT Normalised
Slide 4: Key Highlights 02/02
Key Highlights 02/02 Continued focus on improving operational efficiencies, diversification and deleveraging. 01. 03. 05. 07. Revenue of Organic Automotive booked Improved ROCE to 17.3% Recalibrating capex; business grew ~4-5% business of USD 87.7 in Sep from 16.9% in March guidance reduced to Rs ov
Slide 5: Macroeconomic indicators and Automotive industry Outlook
Macroeconomic indicators and Automotive industry Outlook. Mixed macro indicators with visible uptick in commodities and energy prices. Regional challenges impacting automotive production, however the platform mix continues to improve 44
Slide 6: Mixed macro indicators - stable inflation and interest rates
Mixed macro indicators - stable inflation and interest rates while volatility in commodities, energy and logistics EU, USA & India Inflation1 EU, USA & India Interest rates1 World Container Index (in %) (in %) (USD 1) 12. 0 10. 0 9.3 6.5% 6.5% 7.0% 5.9% 8.3 8.0 6.0% 5.4% 5.0% 6.4 5.0% 6.0 7.0 4.25 4
Slide 7: Subdued automotive production, though platform mix continues to improve
Subdued automotive production, though platform mix continues to improve . Data represents automotive production volumes on YoY basis Europe. North America. Global. Light Vehicles Commercial Vehicles Light Vehicles Commercial Vehicles Light Vehicles Commercial Vehicles • Lower than anticipated demand
Slide 8: SAMIL's diversified business model and reactive strategy enables resilience
SAMIL’s diversified business model and reactive strategy enables resilience and strong execution. Near to Mid Term Variables SAMIL’s unique position while impacting automotive industry navigating through dynamic business environment Highly diversified Regional fluctuations business model to in vehic
Slide 9: SAMIL's Performance for Q2FY2025
SAMIL’s Performance for Q2FY2025. Revenue growth contributed by M&As and growth over market of organic business Operational efficiencies enabled resilient performance, against a volatile industry backdrop. 88
Slide 10: Resilient performance in the quarter, amidst subdued production volumes
Resilient performance in the quarter, amidst subdued production volumes. (all figures are Rs. in Crores) Consolidated Financial Performance Q2FY25 vs Q2FY24 (YoY basis) Revenue1 Normalised EBITDA4 Normalised PAT4 (Concern Share) 30 ,0 00 + 18% + 23% + 66% 28 ,0 00 27,812 2.7% One time provision 26 ,
Slide 11: Consistent improvements in ROCE
Consistent improvements in ROCE Despite subdued automotive production and consequently inflated working capital Continued focus on Reported ROCE improving ROCE via… 17.3% 16.9% 17 .0% 15 .0% Focus on 13 .0% improving 1 10.8% underperforming 11 .0% units in volatile environment 9.0 % 6.9% 6.2% 7.0 %
Slide 12: Significant deleveraging of the balance sheet
Significant deleveraging of the balance sheet. Strengthened balance sheet for future growth Further deleveraging is expected upon the normalisation of inflated working capital. 11 11
Slide 13: Achieved significant deleveraging; 1x Net Debt to EBITDA
Achieved significant deleveraging; 1x Net Debt to EBITDA. Financial 2.8 Strong balance Leverage Ratio1,2 Policy 2.5x sheet, Prepared 25 ,0 00 2.0 1.9 2.3 to capture growth 1.8 1.7 opportunities 1.4 1.4 1.5 1.4 20 ,0 00 1.8 15 ,0 00 1.3 Out of Rs 6,438 Cr raised (equity + CCD), ~6,000 cr was utilised
Slide 14: Working capital normalisation to aid further deleveraging
Working capital normalisation to aid further deleveraging Inventory Days1 Volatility (on sales) in production 60 57 schedules at OEMs and 55 supply chain disruptions 50 44 45 40 37 36 35 35 35 35 35 33 33 33 32 35 30 31 31 31 28 29 28 29 30 26 25 20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3
Slide 15: Calibrated Capex spend
Calibrated Capex spend. Expenditure in alignment with evolving dynamics of new launches and strategies of our customers. 05 green fields out of 19 announced earlier have commenced production 14 14
Slide 16: Pragmatic phasing of Capex in alignment with market
Pragmatic phasing of Capex in alignment with market. Capex Total Capex of Recalibrate; (Rs in Crores) Rs. 2,024 crores Capex to stay aligned 1,80 0 65% during H1FY25 70 % with the market 1,60 0 conditions 52% 60 % 1,296 39% 1,231 1,40 0 36% 50 % 40% 1,078 1,20 0 37% 36% 24% 946 40 % 32% 1,00 0 80 0
Slide 17: 05 out of 19 Greenfields announced are onstream
05 out of 19 Greenfields announced are onstream with SOPs achieved. Rest at various stages of completion, Operationalized (5) At various stages of completion (14) Business Division No Expected SOP Business Division No SOP Wiring Harness 02 Q1FY26 / Q3FY26 Wiring Harness 01 Q2FY25 India Lighting and
Slide 18: Building a more diversified business based on customers' trust
Building a more diversified business based on customers’ trust. Improved diversification with new products and increased customer penetration Strong automotive business. 17 17
Slide 19: Enhanced Diversification across all 3 Cs
Enhanced Diversification across all 3 Cs. Component wise. Customer wise. Country wise. (top 20 customers) Merce des Benz 10% India 20% Wiring Harness 26% Volkswagen 9% USA 20% Vision Systems 15% Audi 8% Germany 17% BMW 6% Engineering* 13% China 11% Maruti Suzuki 5% Spain 7% Bumpers* 11% Honda Cars 5
Slide 20: Strong visibility of automotive revenues
Strong visibility of automotive revenues. 87.7 24% billion USD from EV. 83.9 billion USD Large part of automotive booked 77.3 business billion USD expected to be realized over 5-6 years 30-Sep-23 31-Mar-24 30-Sep-24 Not e: • Booked business for aut omotive businesses is based on Revenues from operat
Slide 21: Divisional Performance
Divisional Performance. 20 20
Slide 22: Business Divisions
Business Divisions. 01. 02. 03. 04. 05. Wiring Vision Modules & Polymer Integrated Emerging harness Systems Products Assemblies Businesses Elastomers Lighting & Precision Technology & Aerospace Logistics Health Services Electronics Metals & Industrial Solutions & Modules Solutions Medical 21 21
Slide 23: Business Division Wise Financial Performance: Q2FY25 vs Q2FY24
Business Division Wise Financial Performance 1 : Q2FY25 vs Q2FY24. (all figures are Rs. in Crores) Wiring Modules and Vision Integrated Emerging Harness. Polymer Products. Systems. Assemblies. Businesses. Revenues Revenues Revenues Revenues Revenues + 4% +27% + 3% + 43% 14,640 2,905 6,00 0 8,111 5,5
Slide 24: Key Divisional Highlights 01/03
Key Divisional Highlights 01/03. Wiring Harness. Modules and Polymers. Vision Systems. Integrated Assemblies. ✓ Revenue growth (on YoY basis) despite ✓ YoY Revenue growth mainly contributed by ✓ Revenue growth (on YoY basis) on account ✓ YoY nos are not comparable as Q2 FY24 had softening of CV prod
Slide 25: Key Divisional Highlights 02/03: Emerging businesses
Key Divisional Highlights 02/03. (all figures are Rs. in Crores) Evolution of Non-Automotive businesses . Revenue by Segment Q2FY25 (Rs. Crores) Growth in Non-Automotive Revenues (Rs. Crores) Emerging businesses. 2.1x 763 665 474 Automotive 357 352 + Services 2,142 Rs. 2,905 Q2FY24 Q3FY24 Q4FY24 Q1F
Slide 26: Key Divisional Highlights 03/03: Non-Automotive businesses
Key Divisional Highlights 03/03. Non-Automotive businesses. Technology and Industrial Solutions. Logistic Solutions. Health & Medical. ✓ Setting up a Global capability Centre in ✓ New JV in Japan formed with ✓ Health and Medical facility ✓ Successful launch India’s first Hyderabad, India with plan f
Slide 27: Motherson Health and Medical launched next-generation retimer
Motherson Health and Medical launched next-generation of retimer an ergonomic wearable device for aligning sleep and circadian rhythm To know more, visit : www.re-timer.com 26 26
Slide 28: Summary of divisional financial performance
Summary of divisional financial performance. (all figures are Rs. in Crores) (all figures are Rs. in Crores) FY24 Q2FY24 Q2 FY25 Business Division Revenue EBITDA EBITDA% Revenue EBITDA EBITDA% Revenue EBITDA EBITDA% Wiring Harness 31,514 3,362 10.7% 7,791 826 10.6% 8,111 908 11.2% Modules & Polymer
Slide 29: Bridge - Gross to Reported revenue
Bridge - Gross to Reported revenue. (all figures are Rs. in Crores) FY2023-24 FY 2024-25 12M H1 H1 Gross revenue 143,767 61,519 88,747 Less: Throughput revenue1 31,779 9,310 24,567 Economic Revenues 111,988 52,210 64,180 (including JVs) Less: JVs consolidated as per equity method 13,296 6,220 7,500
Slide 30: Consolidated Debt Status, Reference Rates, and Notes
Consolidated Debt Status, Reference Rates, and Notes. A. Net Debt including Lease liabilities . Copper Rates. Average Q2 FY24 Q1 FY25 Q2 FY25 Rs. In Sep-22 Dec- 22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Crores LME Copper (USD / MT ) 8,356 9,751 9,207 Gross 12,671 12,968 12,166 12,546 19,22
Slide 31: Annexure
motherson all Annexure
Slide 32: SAMIL Consolidated Q2FY25 vs Q2FY24
SAMIL Consolidated Q2FY25 vs Q2FY24. (all figures are Rs. in Crores) 3,000 8.9% 14 .0% Revenues1 30 ,0 00 27,812 Normalised EBITDA4 2,641 13 .0% + 18% 8.5% 178 12 .0% 25 ,0 00 23,527 + 23% 11 .0% 2,001 10 .0% 20 ,0 00 2 27,812 2,463 9.0 % 8.0 % 15 ,0 00 7.0 % 1,000 6.0 % 10 ,0 00 Q2 FY24 Q2 FY25 Q2
Slide 33: SAMIL Consolidated H1FY25 vs H1FY24
SAMIL Consolidated H1FY25 vs H1FY24. (all figures are Rs. in Crores) Revenues1 70 ,0 00 Normalised EBITDA4 9.3% 56,680 65 ,0 00 60 ,0 00 8.6% + 33% 5,426 55 ,0 00 + 23% 6,00 0 45,990 178 2 10 .0% 50 ,0 00 45 ,0 00 5,00 0 3,941 8.0 % 4,00 0 40 ,0 00 6.0 % 3,00 0 35 ,0 00 30 ,0 00 56,680 2,00 0 5,248
Slide 34: Business Division Wise Financial Performance: H1FY25 vs H1FY24
Business Division Wise Financial Performance 1 : H1FY25 vs H1FY24. (all figures are Rs. in Crores) Wiring Modules and Vision Integrated Emerging Harness. Polymer Products. Systems. Assemblies. Businesses. Revenues Revenues Revenues Revenues Revenues + 7% +27% + 5% + 43% 29,833 9,804 23,469 10 ,0 00
Slide 35: Robust Balance Sheet with Comfortable Debt Maturities and Strong Liquidity
Robust Balance Sheet with Comfortable Debt Maturities and Strong Liquidity. Gross Debt ~INR 21,320 (~USD 2.5 Bn) Liquidity ~INR 15,000 crore (~USD 1.8 Bn) (INR crore, as of Sep 30th, 2024) (INR crore, as of Sep 30 th, 2024) Commited Undrawn Short Term Debt Facilities Inc luding RCF Roll 5,298 Ov er
Slide 36: Copyright notice
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Samvardhana Motherson International — Q2 FY2025 Earnings Presentation on 6ix