Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Investor Presentation (November 2011)
59 slides from Elecon Engineering's investor presentation, November 2011
Slide 1: Elecon Engineering Company Limited
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Slide 2: Always a step ahead in technology
Mlways a step ahead in technohay
Slide 3: Always a step ahead in technology
Five decades of breakthrough innovations in Material Handling Equipments (MHE) and Industrial Gears with a vision in all operational fronts, from technology to quality standards, product to value addition and performance India’s one of the Largest Manufacturer of Material Handling & Power Transmissi
Slide 4: First to Introduce in India / Our Unique Strengths
First to Introduce in India Our Unique Strengths Stacker Reclaimer at Santaldih Capable to design complete Power Station Stacker Reclaimer Machine from basics Barrel reclaimer at Bokaro steel Able to design open cast mining Case hardened and ground conveyors of high capacity in helical mod
Slide 5: Milestones
MILESTONE • Company remains the first Indian gear company to have received the ISO 9001 in 1994 also the first gear company to get ISO 9001:2000 version in 2001 and again the first to achieve the ISO 9001:2008 version in 2010. • Company achieved international recognition by receiving ISO 9001 certif
Slide 6: Elecon – At a Glance
ELECON – AT A GLANCE CREATED A HISTORY IN ITS JOURNEY UP TILL NOW AND REACHED A MILESTONE OF ACHIEVING THE TURNOVER OF MORE THAN RS. 1150 CRORES IN FY11. Professionally managed company Credit Rating: For three years in a row (including the current FY) the Company has retained the highest Credit
Slide 7: Elecon Acquires Benzlers – Radicon Group UK
Elecon Acquires Benzlers – Radicon Group UK
Slide 8: Objectives
OBJECTIVES • Faster Growth – Strengthen Elecon’s product development & engineering capabilities. • Widen its customers base – Global Presence / Expansion. • Higher Profitability. • Consolidation/ Synergy. • Reduction in costs. • Moving up in the value chain. • Growth in Exports.
Slide 9: Rationale
RATIONALE • Achieve higher volume with Radicon range of products. • Improve market reach for Elecon products through Benzlers- Radicon Gears. • Benefit from the ‘Radicon’ brand name to purse and penetrate newer markets like North America & South America, Russia, Australia etc. • Leading Brand Recogn
Slide 10: Deal Construction
DEAL CONSTRUCTION • The transaction is structured as a combination of share purchase and asset purchase. • Elecon, through its SPV in Mauritius has acquired w.e.f. 26th November, 2010 operations of the Benzlers-Radicon Group (“B- R Group”) in Sweden, UK & USA from David Brown Gear Systems Group for
Slide 11: Elecon and BR Strategic Fit
ELECON AND BR STRATEGIC FIT Elecon Strategic Requirements BR Alignment Growth aspirations BR has immediate additional £30Mn sales International growth aspirations BR footprint in Europe, SE Asia, & N. America Expand application engineering BR owns IP & Powerful Brands, skills & Product range & Need
Slide 12: Strategic Fit Contd.
CONTD... BR Strategic Requirements Elecon Alignment Need for extended product range Elecon has additional Standard Product offerings Need for access to Indian market Elecon is major player Benefit from focused ‘Standard Elecon has 'Standard Products' Products’ environment focus
Slide 13: MHE Division
MHE DIVISION Products Presence in Industry Stacker Reclaimer Power, Cement, Steel, Ports Wagon Tippler Power, Cement, Steel, Ports, Mining Crushers & Impactors Power, Cement, Steel, Ports Tripper Open Cast Mines Apron, Vibrating & Paddle Feeders Power, Cement, Steel, Ports, Mining Screens, Pulley, C
Slide 14: Gear Division
GEAR DIVISION Products Presence in Industry Helical Sugar industry, MHE (Stacker reclaimers), marine application, cooling tower in Power plants, wind mills, Tube mills (Steel) Worm Rolling mills (Steel), MHE (Conveyor systems) Lift gear Elevators (for capacity of up to 16 persons) Couplings MHE (Con
Slide 15: Nation-wide Network & Coverage
NATION- WIDE NETWORK & COVERAGE In view of a widely spread customer base across the country, company have more than 90 dealers and 181 design engineers looking into daily requirements of clients. All branches are equipped with exclusively trained application and after sales service engineers, who
Slide 16: Elecon Service Network
Elecon Service Network LN oo-Pakistan China Tea beresoay, 2070007, Fax 24701001 _ E-mu saiescalgeaemtic eiecon com TEES croc ‘satesdengfdeiemtic elecon com ‘Toletax: (020) 26141703 / 96 E-mat salerounednuneemta etecon com SECUNDERABAD: Pato) zrOsAraG, 27eAEza0. Fax: 37068917 ‘sulonsec€bsecemto eleco
Slide 17: Size of Operation
SIZE OF OPERATION • Company has a robust pending order of Rs. 1502 Cr. as on 31st October, 2011 and have substantial live enquires in hand. • Company is prequalified in coal handling plant business in power sector as Govt. projects form 80% of the upcoming projects of XIth plan. • Company is one of
Slide 18: Business Portfolio
BUSINESS PORTFOLIO Bulk Material Handling Plants (MHE) Industrial Gears Windmill
Slide 19: Bulk Material Handling Plants (MHE)
Bulk Material Handling Plants (MHE)
Slide 20: Manufacturing activities in the Heavy Fabrication Shop
Manufacturing activities in the Heavy Fabrication Shop
Slide 21: Key Products / Application
KEY PRODUCTS / APPLICATION • Coal Handling Plants for Thermal Power and Mines projects. • Raw Material Handling, Crushing and blending system for Cement plants. • Ore handling and Stock yard equipments for steel plants. • Product and Bag handling plants. • Overburden and Coal/Lignite handling system
Slide 22: Industry Wise Breakup of Turnover of MHE Division
INDUSTRY WISE BREAKUP OF TURNOVER OF MHE DIVISION (FROM 1ST APRIL, 2011 TO 30TH SEPTEMBER, 2011) Steel 5% Port 2% Others 6% Mining 8% Cement 13% Power 66%
Slide 23: Industry Wise Breakup of Pending Orders of MHE Division
INDUSTRY WISE BREAKUP OF PENDING ORDERS OF MHE DIVISION (AS ON 30TH SEPTEMBER , 2011) Others 5% Steel 6% Port 8% Cement 9% Power 49% Mining 23% 23
Slide 24: Growth Drivers – 11th Year Plan for Power Sector
GROWTH DRIVERS 11th 5 Yr Plan for Power Sector • NEP (National Electric Policy) envisages “Power for All” by 2012. • 10th Plan actual investment was 48000 MW. • 11th Plan projects a revised capacity addition of 55,000 MW. • Present installed power generation capacity of India is over 1,55,000 MW • I
Slide 25: Growth Drivers
GROWTH DRIVERS • Mining investments are expected to pick up in tandem with implementation of ultra mega power projects in country as these are coal fired. • Companies in Steel sector have been seriously engaged in acquiring existing global companies for getting immediate returns on investment. The a
Slide 26: Industrial Gears
Industrial Gears
Slide 27: Gear Manufacturing Shop
7 2 a A y Gear Manufacturing Shop
Slide 28: Key Products
Key Products EP Series Helical Gear Box with Input Fluid Coupling & Output Geared type coupling Elevator / Lift Application Worm Gear Fluid, Geared and Flexible Couplings
Slide 29: Marine Helical Reduction Gearbox and Dual Tandem Gear Box
Marine Helical Reduction Gearbox for C.P.P. drive of off-shore patrol vessel Dual Tandem Gear Box for Sugar Mill & Kiln Drive
Slide 30: Growth Drivers
GROWTH DRIVERS • Expected Growth • Expected Growth in Current year is around 20-25%. • Prospective New Segments A) Alternate Energy Sector. B) Vertical Roller Mills for Cement & Coal Mining Industry. C) Lift Gears. D) Defense especially Navy. • Growth in Exports
Slide 31: Industry Wise Breakup of Turnover of Gear Division
INDUSTRY WISE BREAKUP OF TURNOVER OF GEAR DIVISION (FROM 1ST APRIL, 2011 TO 30TH SEPTEMBER, 2011) Sponge Iron Marine 4% 3% Mining 3% Chemical & Frtilizes 4% Material Handling/ Lift Gears 6% Power 23% Cement 9% Steel Conversion14 Plastic & % Rubber 10% Others 12% Sugar 12%
Slide 32: Industry Wise Breakup of Pending Orders of Gear Division
INDUSTRY WISE BREAKUP OF PENDING ORDERS OF GEAR DIVISION (AS ON 30TH SEPTEMBER , 2011) Chemical & Lift Gears 3% Fertilizer 2% Mining 2% Sponge Iron Material 4% Handling 21% Windmill 5% Cement 8% Sugar 12% Others 10% Steel Marine 12% Conversion 10% Plastic & Rubber 11% 32
Slide 33: Windmill
Windmill
Slide 34: Wind Power Market in India
• The wind electric generator, a green power source has made considerable progress in last few years. • Total installed capacity in India, stood at around 14158MW as on March 31, 2011, 11807MW as on March 31, 2010, 10242MW as on March 31, 2009 and 8754 MW as on 31st March 2008. (Source: Indian Wind
Slide 35: Export Environment Outlook
EXPORT ENVIRONMENT OUTLOOK • The other major international players for MHE business are Man- Takraf, Krupp, Sandvik, IHI and Metso. • However, we do have potential to increase our exposure in international market up to Rs. 100 - 150 Crores for MHE. • We are continuously expanding our reach to overse
Slide 36: Export Environment Outlook
EXPORT ENVIRONMENT OUTLOOK • Order received from IRIKA Engg. & Comm. Services Gmbh-Germany worth Rs. 15.68 Crores for the supply of stacker cum reclaimer with spares for HBI & Pellet plant for Persion Gulf Saba Steel, Iran International Engg. Co., Iran. • Export Invoicing target for MHE Division dur
Slide 37: Future Plans
| Future Plans
Slide 38: Future Plans
FUTURE PLANS • Higher value addition with thrust on high level of technology to improve margins for Gear Division. • Exploring following new segment(s)/product(s) for higher growth 1) Defense - Navy 2) High speed gears 3) Gears for Plastic Industry • Mineral processing, coal washeries, etc. through
Slide 39: Future Plans – Technical Collaborations
FUTURE PLANS • Entered into an agreement with CKIT Conveyor Engineers, Johannesburg, South Africa for Pipe Conveyor Technology, Trough Belt Conveyor Technology and Technology for Idler Frames. • The Company, for the first time, is developing high speed conveyor with consultancy support from M/s. Con
Slide 40: Future Plans
FUTURE PLANS • Company expects Turnover to grow in the range of around 20% to 25% in 20011-12. • In the year under review Rs. 54 Crores have been capitalized as Fixed Assets. Out of which Rs. 23 Crores is pertaining to MHE and Rs. 31 Crores is pertaining to Gear. In HYFY12 Rs. 20.56 crores have been
Slide 41: Financials
Financials
Slide 42: Turnover
TURNOVER 1200 Turnover (Rs in Cr) CAGR % 1177 200 Rs in 1100 Crores 180 1046 1000 955 160 900 826 140 800 723 700 120 590 600 100 500 442 80 64 400 60 300 37 29 40 200 24 22 100 20 0 0 0 FY06 FY07 FY08 FY09 FY10 FY11 HYFY12
Slide 43: Turnover & EBITDA
TURNOVER & EBIDTA 1350 Turnover Turnover (Rs. In Cr) EBIDTA (Rs. In Cr) EBIDTA 240 1177 1200 1046 1050 200 955 900 826 177 160 723 750 150 149 590 120 600 130 442 108 450 80 90 300 60 40 150 0 0 FY06 FY07 FY08 FY09 FY10 FY11 HYFY12
Slide 44: Turnover & PAT
TURNOVER & PAT 1350 PAT Turnover Turnover (Rs. In Cr) PAT (Rs. In Cr) 240 1177 1200 1046 1050 200 955 900 826 160 723 750 590 120 600 442 450 80 88 300 66 67 58 40 55 150 30 28 0 0 FY06 FY07 FY08 FY09 FY10 FY11 HYFY12
Slide 45: Financial Performance
Financial Performance Rs. In Crores HYFY HYFY % FY11 FY 10 % FY 10 FY 09 % 12 11 Change Change Change Net sales 590 524 13% 1177 1046 13% 1046 955 10% Total 595 526 13% 1206 1071 13% 1071 965 11% Income EBITDA 90 75 20% 176 150 18% 150 149 1% Depreciati 21 19 11% 38 33 16% 33 22 49% on Interest 28 2
Slide 46: Basic EPS
BASIC EPS Year EPS CAGR Face value of share- Rs 2/- each ( Post (%) In Rs. Bonus) FY05 1.19 - 12 10.18 9.47 FY06 3.29 176% 10 8 7.24 7.13 FY07 6.10 126% 6.1 6.19 6 FY08 7.24 83% 3.29 4 FY09 6.19 51% 2 1.19 FY10 7.13 43% 0 FY11 9.47 41% HYFY12 10.18 (Annualized)
Slide 47: ROE, ROCE, EBITDA
FINANCIALS 35 29.29 30 28.39 27.78 25 22.48 22.23 20.99 20.46 20 15.80 14.99 15.50 15.60 15.28 14.63 14.5 14.34 15 12.6 ROE 10.56 10.13 10 11.45 ROCE 3.35 3.81 8.94 10.13 9.49 9.85 5 5.86 6.47 7.52 EBITDA 1.67 0 1.59
Slide 48: Unexecuted Orders as on 31st March
Unexecuted Orders as on 31st March Rs. in Cr. Segment wise 2011 2010 1200 1000 800 MHE 1059# 674# 600 400 Gear 325 246 200 0 FY11 FY10 Total 1384 920 MHE Gear # It exclude the order of Brahmani Industries Ltd. amounting Rs.323 crores.
Slide 49: Unexecuted Orders as on 31st October
Unexecuted Orders as on 31st October Rs. in Cr. Segment wise 2011 2010 1400 1200 1000 800 MHE 1163 883 600 400 200 Gear 339 343 0 31st Aug 11 31st Aug 10 MHE Gear Total 1502 1226
Slide 50: Order Booking
Order Booking For the year Rs. in Cr. Segment wise 1200 FY 12 Up Division to 31st FY11 FY10 1000 October 2011 800 600 MHE 493 1085 311 400 Gear 305 614 437 200 0 Total 798 1699 748 FY 11 FY10 MHE Gear
Slide 51: Capex
Capex Rs. In Cr. 140 128 120 95 82 100 80 54 60 44 40 21 20 0 FY07 FY08 FY09 FY10 FY11 HYFY12
Slide 52: Recent Major Orders in FY12
Recent Major Orders in FY12 Customers Description Value (Rs. in Crores) NMDC Ltd. Downhill conveying system-Engineering, Design 176.49 Manufacturing Procurement, Testing at works/site, Installation, erection, testing, commissioning as per technical specification, For the Kumaraswamy Iron Ore Project
Slide 53: Recent Major Orders in FY12
Recent Major Orders in FY12 Customers Description Value (Rs. in Crores) BHEL, Design, Engineering, manufacture, supply & Erection & 29.72 Barauni Commissioning of Wagon Tippler, Side arm charger with Sept.’11 guide rails, Apron feeder with Dribble Conveyor, Crushers with GERB V I S, Vibrating Screen
Slide 54: Recent Major Orders in FY11
Recent Major Orders in FY11 Customers Description Value (Rs. in Crores) GMR Infrastructure Supply of stacker reclaimers, wagon tippler, 94.80 Limited conveyor system and other associated equipments for CHP, EMCO Energy Thermal Power Project at Warora, Maharashtra Tecpro Systems Ltd. Supply of CHP Eq
Slide 55: Recent Major Orders in FY11
Recent Major Orders in FY11 Customers Description Value (Rs. in Crores) L & T – MHI Boiler Pvt. Supply of 20 nos. - Divel Planetory Gear Boxes 40.55 Ltd for Coal Pulveriser of Power Plant of Maha Genco Coradi. Energo Engg Projects Supply of CHP Equipments for Adani Power 40.51 Ltd Rajasthan Ltd. 2X6
Slide 56: Recent Major Orders in FY11
Recent Major Orders in FY11 Customers Description Value (Rs. in Crores) Manikgarh Cement Supply of long pipe conveyor for limestone 32.77 transportation with 2 nos. imported maintenance trolleys KSK Mahanadi Power Supply of Wagon Tippler & associated 31.25 Co. Ltd. Hyderabad conveying system, access
Slide 57: Market Capitalization
MARKET CAPITALIZATION AS ON Rs. In Cr. 2000 1800 1750 1600 1400 1200 1200 1000 790 800 678 638 600 400 289 200 100 0 31st 31st 31st 31st 31st 31st 11th March'05 March'06 March'07 March'08 March'09 March'10 October11
Slide 58: Shareholding Pattern
SHAREHOLDING PATTERN (AS ON 31ST OCTOBER,2011) Public Holding, 30.08% Promoters, 45.82% Foreign Holding, 1.84% Corporate Bodies, 9.25% Mutual Fund, 13.01%
Slide 59: Thank You
“Our passionate commitment to technology, state-of-the-art infrastructure, the growing demand for our products within India & Globally, we look forward to a sharp growth trajectory” Thank You…
Elecon Engineering Company — Investor Presentation (November 2011) on 6ix