Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Investor Presentation (November 2014)
18 slides from Bharat Forge's investor presentation, November 2014
Slide 1: Investors Presentation
AUTOMOTIVE OIL AND OIL GAS & GAS CONSTRUCTION ENERGY THERMAL POWER INVESTORS PRESENTATION November 2014 | Bharat Forge Ltd. | Pune MAKING IN INDIA FOR THE WORLD AVIATION RAILWAYS MINING MARINE AUTOMOTIVE
Slide 2: Bharat Forge Limited - A Global Industrial Conglomerate
Bharat Forge Limited - A Global Industrial Conglomerate Bharat Forge: Profile Global Forging Conglomerate Consolidated Revenues: ~ US$ 1.2 bn. 8 Manufacturing locations across 3 countries. Geography Capacity (TPA) Global Marquee Customer base of more than 35 OEM’s & 403,000 Tier- 1 companies a
Slide 3: Bharat Forge Limited – Key Differentiators
Bharat Forge Limited – Key Differentiators Full Strong focus service on product & supply process capability innovation. Technology & Developm Innovation Strong ent Marquee partners Clientele Relationship Key Customers Differentiators Leveraging relationship to Biggest expand in to customer: new sect
Slide 4: Highlights for Q2 FY 2015: standalone operations
Highlights for Q2 FY 2015 : standalone operations Strong performance driven by market share increase across segments & geographies particularly in US. Strong operational margins sustained mainly on account of higher capacity utilization growth in export market Focus on critical & technolog
Slide 5: Standalone Results – Q2 FY 2015
Standalone Results – Q2 FY 2015 (INR Million) Particulars Q2 FY15 Q1 FY15 Growth % Q2 FY14 Growth % Shipment Tonnage 52,560 49,123 7.0 42,812 22.8 Domestic Sales 4,408 4,363 1.0 3,817 15.5 Export Sales 6,975 5,518 26.4 4,634 50.5 Total Revenue 11,383 9,881 15.2 8,451 34.7 EBITDA 3,313 2,908 13.9 2,2
Slide 6: Standalone Financial Ratios
Standalone Financial Ratios (INR Million) Particulars 30 September 2014 31 March 2014 Debt 17,742 19,943 Equity 30,850 26,933 Cash 9,615 9,967 Particulars 30 September 2014 31 March 2014 Debt Equity Ratio 0.58 0.74 Debt Equity Ratio (Net) 0.26 0.37 Return on Capital Employed 21.5% 16.0% Return on Ne
Slide 7: Performance of International Operations
Performance of International Operations (INR Million) Particulars Q3 CY14 Q2 CY14 % Change Total Revenue 5,432 6,250 (13)% EBITDA 312 456 (32)% EBITDA % 5.7% 7.3% PBT 10 151 • Demand decline witnessed in Europe across Medium & heavy Commercial Vehicles and Passenger Vehicles. • Passenger vehicles sa
Slide 8: Geographical Breakup - Standalone
Geographical Breakup - Standalone Business Diversity yielding good results 3% H1 FY 2015 4% H1 FY 2014 20% India India 24% 41% USA USA 47% Europe Europe Asia-Pac 24% Asia-Pac 36% Particulars (INR Million) H1 FY 2015 H1 FY 2014 India 8,771 7,761 US 7,581 3,965 Europe 4,180 3,986 Asia Pac 731 655 18
Slide 9: Segmental Breakup… Increasing share of Industrial
Segmental Breakup… Increasing share of Industrial Expanded addressable market segment & New customer additions 8% H1 FY 2015 19% H1 FY 2014 CV chassis 8% 20% CV chassis CV engines CV engines 38% 47% 27% Non Auto Non Auto 34% Passenger Passenger Vehicles Vehicles Particulars (INR Million) H1 FY 201
Slide 10: Passenger Cars.. New order wins & Increasing product portfolio
Passenger Cars.. New order wins & Increasing product portfolio Current Scenario: Passenger car business account for 16% of consolidated revenues but less than 10% of standalone sales . Actions Taken: Have won 4 export orders from Global OEM for supply of engine components. Working on many more deals
Slide 11: Commercial Vehicles… More Penetration & New Customer
Commercial Vehicles… More Penetration & New Customer Current Scenario: Commercial Vehicles has been the mainstay for the company with CV(Engine & Chassis) accounting for ~50% of sales Actions Taken: LTA’s with existing customer in place to maintain current share of business. New products introduced
Slide 12: New Verticals… Greater Focus… India's Growth
New Verticals… Greater Focus… India’s Growth Industrial Business Energy Transportation Construction & Mining Oil & Gas Aerospace Metal & Mining Power Construction Locomotive General Thermal Hydro Wind Engineering Marine Infrastructure Supply Business 18/11/2014 12 Making in India for the World
Slide 13: Select Non Auto Product Portfolio
Select Non Auto Product Portfolio 4,000 T Open Die Press 80 Mtr Ton Counterblow Hammer Ring Rolling Line 18/11/2014 13 Making in India for the World
Slide 14: Progression of Industrial Business
Progression of Industrial Business FY 2004 FY 2009 FY 2014 21% Non-auto Non-auto Non-auto Auto 33% Auto 41% Auto 59% 67% 79% US$ 27 million US$ 100 million US$ 213 million Development of product “first time right” using in house technology & capabilities and higher value addition US$ = Rs 60 18/11/2
Slide 15: Industrial Sector
Industrial Sector Current Scenario: BFL’s concerted efforts in industrial is visible with the segment accounting for more than 40% of standalone revenues as against ~30% 5 years ago. Actions Taken: Concerted thrust on new product development, enhancing market share & value addition with existing cus
Slide 16: Asset Light Capex: Changing the Approach
Asset Light Capex: Changing the Approach CUSTOMER PRODUCT CAPEX PEOPLE PRODUCT CAPEX PEOPLE CUSTOMER 18/11/2014 16 Making in India for the World
Slide 17: Growth Capex Double
Strategy going forward Growth Focus on Capex FCF Double Dividend sales by Payout FY18 Create 25-35% Shareholder value 18/11/2014 17 Making in India for the World
Slide 18: Thank You
Thank You 18/11/2014 18 Making in India for the World 18