Slide 1: Letter to NSE: Investors Presentation
--------------...-~& - - - - - - - - - - - - - - - - - - ENGINEERING L T D . - - - - unit-1 : CAST PRODUCTS PLANT, 31, Sector 'C' Industrial Area, Sanwer Road, lndore-452 015 (M.P.) Phone: +91-731-2720143, 6732700 9th November, 2019 The Manager Listing Department National Stock Exchange of India Lim
Slide 2: Jash Engineering Ltd. Investor Presentation October 2019
When every drop counts… JASH ENGINEERING LTD. Contributing to a sustainable environment worldwide… Investor Presentation October 2019 Mahr Maschinenbau
Slide 3: Disclaimer
DISCLAIMER This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jash Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: What's Inside
WHAT’S INSIDE Company Overview Financial Performance Outlook Investment Rationale Mahr Maschinenbau
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: Jash At-A-Glance
JASH AT-A-GLANCE Incorporation 1973 of Company Jash Engineering Ltd. › An ISO-9001:2015 / ISO-14001:2015 / BS 45+ Exports OHSAS 18001:2007 certified company Countries Global 5 Manufacturing Units dedicated to offering varied products for use in Water and Wastewater Pumping Stations and Treatment Pla
Slide 7: Evolution
EVOLUTION 2019 Established New 2016 plant in SEZ for Acquired Rodney Rodney Hunt products 2008 2011 Hunt in USA 2005 Technical collaboration Technical collaboration 1996 Expanded Screen with Weco Armaturen, with Rehart, Germanyto 2017 Converted into public manufacturing facility and Germany to offer
Slide 8: Drive Value Through Acquisition
DRIVE VALUE THROUGH ACQUISITION Rodney Hunt Inc., USA To add world renowned brand and get (FY-19 revenue Rs. 70.3 Cr.) access into north American market of water (Acquired at US$ 4 million) 2016 control gates. To add top representatives in each state so that they can help in selling Mahr Maschinenba
Slide 9: Product Offerings with Revenue Contribution
PRODUCT OFFERINGS WITH REVENUE CONTRIBUTION Water Control Gates Screening Equipment 54% 12% Revenue Contribution Revenue Contribution Hydropower & Pumping , Valves Process Equipment 15% 11% Revenue Contribution Revenue Contribution ( Balance 8% comprise of Industrial & Irrigation water intake system
Slide 10: Product Usage
PRODUCT USAGE Human Drinking Water Usage 10-15% % of total turnover Industrial Usage Storm Water Cycle 5-15 % 5-10% % of total turnover % of total turnover PRODUCT USAGE Agricultural Usage Cycle Human Waste Water Usage 0-5% 50-65 % % of total turnover % of total turnover 9 Mahr Maschinenbau
Slide 11: Application of Products
APPLICATION OF PRODUCTS Water intake systems Storm water pumping stations Water & waste water treatment plants Irrigation Steelsystems plant Power plants Paper & pulp plants Petrochemical plants Steel plants 10 Mahr Maschinenbau 10
Slide 12: Making the World Our Market
MAKING THE WORLD OUR MARKET From predominant sales in single geography of India in early nineties, the company is today present in multiple (over 45 countries) regions with each region having significant contribution in turnover. FRANCE HONG KONG FY 18 FY 19 FY 18 FY 19 59.0 26.4 73.7 41.6 Sweden No
Slide 13: Revenue Breakup Geography Wise
REVENUE BREAKUP GEOGRAPHY WISE PRESENT MARKET SPREAD MARKET SPREAD BY 2022-23 USA Rest Of World Domestic USA Rest Of World Domestic 33% 13% 54% 35% 30% 35% In 2017 the company decided to pursue export led growth and reduce dependence on Indian market by increasing exports from 20% to 65% by 2022-23.
Slide 14: State of Art Facilities & Turnover Capability
STATE OF ART FACILITIES & TURNOVER CAPABILITY UNIT-1 CAST PRODUCTS PLANT UNIT-2 FABRICATED PRODUCTS PLANT Total BUILT UP AREA: 125,000 Sq. ft. BUILT UP AREA: 155,000 Sq. ft. Turnover Potential Turnover Capability : Rs.75 Crore from existing facility Turnover Capability : Rs.200* Crore Rs.500 Cr UNIT
Slide 15: Healthy Order Book as on 31st October 2019
HEALTHY ORDER BOOK AS ON 31st OCTOBER 2019 Shivpad Engineering Export Domestic Engineering & Manufacturing Pvt Ltd Jash Ltd Rs. 1,482.6 mn Rs. 213.3 mn Rs. 8.9 mn Rs. 1,672.2 mn Domestic & Subsidiaries Combined order book Export Jash Mahr Maschinenbau USA Inc stood at GES M.B.H Rs. 3,154.8 mn Rs. 70
Slide 16: Financial Performance
FINANCIAL PERFORMANCE
Slide 17: Financial Performance
FINANCIAL PERFORMANCE Revenues (Rs. Cr) EBITDA (Rs. Cr) 248.3 27.7 174.5 19.9 21.2 19.7 157.9 CAGR CAGR 12.5 118.8 120.2 20% 8.6% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Profit before tax (Rs. Cr) Profit after tax (Rs. Cr) 14.8 14.6 10.1 8.5 11.1 11.9 7.7 CAGR 7.3 CAGR 7.2% 2.4% 1.2 0.3 FY
Slide 18: Financial Performance – 2QFY20
FINANCIAL PERFORMANCE – 2QFY20 Sales (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 8.35 56.99 56.73 2.67 4.45 3.87 53.91 0.2 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 -0.54 17 Mahr Maschinenbau
Slide 19: Financial Highlights - 2QFY20
FINANCIAL HIGHLIGHTS - 2QFY20 • Total operating revenue stood at Rs. 56.73 Cr, as against Rs. 53.91 Cr. in Q2FY19 increased by 5.22%. • EBITDA stood at Rs. 8.35 Cr, as against Rs. 3.87 Cr in Q2FY19 increased by 115%. • EBITDA margin at 14.71% increased by 753 bps, as against 7.18% in Q2FY19. • Profi
Slide 20: Balance Sheet (₹ Cr)
BALANCE SHEET (₹ CR) Balance sheet as on 31/03/19 FY2019 Capital Allocation Capital Structure Capital Expenditure Cash 11.1 Capex of Debt 69.2 16.2cr Net Debt 58.1 for the year (6.5% Equity 112.6 of revenue) Net Capital 170.7 Leverage Dividend Total Debt / 36% Capital Increased dividend : Net Debt /
Slide 21: Outlook
OUTLOOK
Slide 22: Growth Outlook
GROWTH OUTLOOK Aiming to have at least 5 product groups, each having contribution of 15%-30% in the annual turnover Looking at overall Looking at overall international business YoY in next 5 years. domestic business YoY Sales growth in growth of growth of mid to high subsidiaries for FY19-20 teens i
Slide 23: Growth-Creating Megatrends Will Fuel Opportunities Going Forward
URBANIZATION MEET SHORTFALL IN SEWAGE TREATMENT Increase in urban population Major metropolitan areas due to migration from rural needs huge capacity areas will necessitate new enhancement as their capacity addition to collective sewage treatment available water and waste water treatment capacity is
Slide 24: Cash Flow Outlook (₹ Cr)
CASH FLOW OUTLOOK (₹ CR) FY15 FY16 FY17 FY 18 FY 19 Net Cash flow from operation 9.8 6.1 19.8 (8.2) 19.8 Capital Expenditure (2.5) (1.7) (23.6) (17.2) (16.2) Free Cash Flow (FCF) 7.3 4.4 (3.8) (25.4) 3.7 For FY17 and FY18, FCF turned negative on account of negative operating cash flows coupled with
Slide 25: EBITDA Outlook
EBITDA OUTLOOK EBITDA in 2018-19 was 11%. 1%-2% 2%-3% 2%-3% 4%-5% Company is targeting of revenue of revenue of revenue of revenue 9% improvement in EBITDA over next 3 years due to: Impact on Impact on Impact on Impact on EBITDA EBITDA EBITDA EBITDA Reduction in Various Improvement in margins Rodney
Slide 26: Investment Rationale
INVESTMENT RATIONALE
Slide 27: Investment Rationale
INVESTMENT RATIONALE 1 2 Major Infrastructural investment done Comprehensive product base With the commencement of manufacturing at SEZ Unit 4 and at The 5 major product groups are Water control gates, Orange USA facility, major infrastructural investments towards Screening Equipment, Valves, Proces
Slide 28: Investment Rationale
INVESTMENT RATIONALE 3 4 Approved Brands Global Reach Our business is dependent on approval from end users. The The acquisition of Rodney Hunt in USA, Mahr Maschinenbau company markets its products under Jash, Jash-Schuette, in Austria and E&M in Hongkong has ensured that the Jash-Rehart , Mahr, Rod
Slide 29: Investment Rationale
INVESTMENT RATIONALE 5 6 New product from Invent AG., Germany from 2020-21 Turn around of Rodney Hunt by 2020-21 Invent is a world leader in Mixing & Agitation technology. The Standalone EBITDA of Jash & Shivpad is Rs.35.48 Cr (16% of tie up with Invent enables Jash to produce Mixers, Agitator, sale
Slide 30: Shareholders Information
SHAREHOLDERS INFORMATION STOCK DATA SHAREHOLDING PATTERN (As on 6th November 2019) (As on 30th September 2019) Symbol (NSE) Promoter & Alternate FII, NRI and Public JASH Promoter Investment Foreign & others Group Funds National 54% 14% 10% 22% Market Shares Capitalization ₹ Outstanding (₹ Mn) 11.83
Slide 31: Thank You
THANK YOU For further information, contact: Dharmendra Jain Vijay Raparti Jash Engineering Limited Christensen Investor Relations E-mail: dharmendrajain@jashindia.com E-mail: vraparti@christensenir.com Ph.:0731-6732700, 0731-2720143 Ph.: +91 (22) 4215 0210 JASHENGINEERINGLTD RODNEYHUNT INC JASHUSAIN