Slide 1: Exchange filing cover letter
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2024-25/99 November 13, 2024 To, The Manager- Listi
Slide 2: Presentation to Investors - Q2 FY25
Presentation to Investors - Q2 FY25 13th November 2024 1
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: About Us
About Us Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, 08 7000+ Countries Employees lighting, polymer, metallic, ADAS, after-market and advanced safety solutions 39 Operating Manufacturing Facilities REVENUE USD 910 MILL
Slide 5: Update on Q2 FY25 Performance
Update on Q2 FY 25 Performance 13th November 2024 1
Slide 6: Highlights for Q2 FY25
Highlights for Q2 FY25 1.Revenue for Q2 FY25 at 20,808 mn with a growth of 10.3% YoY driven by India business growth of 13.4% . 2. Profitability for Q2 FY25 Q2 FY25 PBT at 4.4% vs. 3.9% in Q2FY 24 Q2 FY25 EBITDA at 9.7% vs. 9.9% in Q2 FY 24 Net debt reduced by Rs.1,554 million in H1FY25 and is Rs. 8
Slide 7: Automotive Production in India
Automotive Production in India 6.26 5.86 5.56 Units in million • Uptick in rural demand has helped 2W & 3W to continue its upward growth trend in Q2 FY25 whereas high base has started impacting both PV and CV on YoY basis • 2W grew by 12.5% • 3W grew by 6.3% 1.28 1.20 1.27 • PV de-grew by 0.7% 0.28
Slide 8: Consolidated Financials of Q2 FY25
Consolidated Financials of Q2 FY25 ₹ in Millions PBT % Revenue 4.4 Rs. In Million Q2 FY25 Q2 FY24 YoY Q1 FY25 QoQ 3.9 Revenue 20,808 18,868 10.3% 18,989 9.6% 2.9 18,868 18,989 20,808 EBITDA 2,010 1,871 7.4% 1,724 16.6% EBITDA % 9.7% 9.9% -20 bps 9.1% 60 bps PBT 908 739 22.9% 560 62.2% Q2 FY 24 Q1 FY
Slide 9: Consolidated Financials of H1 FY25
Consolidated Financials of H1 FY25 ₹ in Millions PBT % Revenue Rs. In Million H1 FY25 H1 FY24 YoY 3.8 3.7 Revenue 39,796 36,925 7.8% 39,796 36,925 EBITDA 3,734 3,672 1.7% EBITDA % 9.4% 9.9% -50 bps PBT 1,468 1,392 5.5% PBT % 3.7% 3.8% -10 bps H1 FY 24 H1 FY 25 • India operation grew by 12.4% while o
Slide 10: Consolidated Balance Sheet & Return Ratios
Consolidated Balance Sheet & Return Ratio’s 31st March 2024 Rs. in Million 30th September 2024 30th June 2024 Net Debt 8,273 9,160 9,828 Equity 16,400 15.518 15,262 Annualised Adjusted EBITDA 7,467 6,896 7,590 Net Debt/Equity 0.50 0.59 0.64 Net Debt/EBITDA 1.11 1.33 1.29 ROCE (Annualized) 19.0% 16.3
Slide 11: Revenue Breakdown for H1 FY25
Revenue Breakdown for H1 FY25 Business Unit Segment 4.8% 2.5% 8.7% Electrical Electronics Lighting 24.6% 8.1% 2.7% 8.9% Polymer 29.1% 37.5% 37.1% 12.2% Metalic 2&3W 11.9% Aftermarket 4W & Others Other (Overseas) 70.9% 31.4% Lighting & Electronics Overseas 75.4% 34.3% Geography Customer 12.3% 15.7% 4
Slide 12: New Lifetime Order Win in H1 FY25
New Lifetime Order Win in H1 FY25 (Lifetime Value is 32,484 million and Annual Peak Revenue is Rs.6,046 million) New business win adding to our revenue* in next 3 years Lifetime Revenue win from 2&3W and 4W Players 22,000 15,033 17,500 17500 14500 2W & 3W, 8500 9,250 4W, 53.7% 46.3% 6500 6500 6500 1
Slide 13: Technological new age products SOP in H1 FY25
Technological new age products SOP in H1 FY25 SOP Integrated Starter Generator (ISG) Two Stage Soft Covering Process with Hot Press Lamination ISG System (Motor Generator + Controller) This covering process required high skilled manpower as combines engine cranking, electrical generation Soft wrappi
Slide 14: Technological new age products win in H1 FY25
Technological new age products win in H1 FY25 NEW WIN Battery Management System (BMS) Interior Ambient Lighting BMS ensure battery cells are free from imbalance Interior ambient lighting products delivers an also collects data and communicates with charger emotional atmosphere within the vehicle and
Slide 15: CAPEX spent for focus products growth
CAPEX spent for focus products growth Extension of existing plant to cater to EV OEM Acquired land in South & West India to further Expanding our SMT lines from 10 to 15 to cater to our electronics need strengthen relationship with OEM’s
Slide 16: Compounding Machine of Value
Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure through economies of sca
Slide 17: Our Businesses
Our Businesses 13th November 2024 1
Slide 18: Electrical Electronics & Lighting
Meet The Future Of Mobility: Electrical Electronics & Lighting Amping Up The Future With Electrical Technology 10 facilities - India 05 facilities - Overseas EV Products Our customizable traction motor, traction Lighting Solution motor controller, DC-DC converter, BMS Our Headlamp, tail lamps and si
Slide 19: Polymer
Meet The Future Of Mobility: Polymer 13 FACILITIES - INDIA Elevating Your Ride. Reducing Your Load. Mirror Assemblies 2K Technology-Based Products Through our portfolio of 30+ mirror Our products boast the latest 2K technology, assembly variants we offer premium providing high-gloss and visually app
Slide 20: Metallic
Meet The Future Of Mobility: Metallic 2 FACILITIES - ITALY 5 FACILITIES - INDIA From iron to icon. Our Journey in Metallics. Valves Metallic solutions for EVs Our category of valves (sodium, Our EV portfolio designed to focus on titanium, intake, and exhaust valves) are compact design and light weig
Slide 21: Aftermarket
Meet The Future Of Mobility: Aftermarket EXPORTS TO Domestic Export 30+ COUNTRIES 6,372 5,881 CAGR of 19% over last 6 year PAN INDIA DISTRIBUTOR 1,250 4,979 1,222 +310 Cities +720 Distributors 3,684 1,187 63 2,970 876 1% 710 5,121 East 4,658 765 3,792 West 2,808 12% 1,706 2,260 27% Export 19-20 20-2
Slide 22: Our Key Strengths
Our Key Strengths Continuous Focus on Comprehensive Low-Cost R&D Capabilities Strong Competitive Long Standing, Solution Provider Manufacturing Position in a Enhancing Portfolio Growing Customer Footprint Growing Market • End-to-end services • Developing innovative, cost- Relationships Segment acros
Slide 23: Sustainability
Sustainability PERFORM@CHANGE
Slide 24: ESG Framework
ESG Framework At Varroc, our ESG & Sustainability vision is to co-create a sustainable value for our stakeholders through innovative research, engineering, & manufacturing of environmentally sustainable products for mobility sector through environment friendly operations aligning with our corporate
Slide 25: Commitment to Environment
Commitment to Environment RENEWABLE ENERGY GHG EMISSIONS ▪ 13% Renewable energy contributions. ▪ 110 Energy efficiency and Energy Commitment to increase to 50% in coming conservation projects/Kaizens implemented years. in FY23. ▪ We generated 2.4 Million units of renewable ▪ Approx. 5 Lakhs Electric
Slide 26: Commitment to Society
Commitment to Society Creating meaningful differences to the society through environmental and social welfare projects Kham River Nurturing Future Social Impact Restoration Sports Talent Programs • Kham River Eco Restoration Project was introduced • Varroc Vengsarkar Cricket Academy (VVCA) • Learn a
Slide 27: Thank You
THANK YOU PERFORM@CHANGE