Ifb Industries Ltd · NSE:IFBIND
Ifb Industries — Q1 FY2023-24 Earnings Presentation
45 slides from Ifb Industries's earnings presentation, Aug 5, 2023
Slide 1: Revised Investors Presentation cover letter
r lilIl fl-Il Industries Limited Corporate Office I Plot No.-lND-5, Sector- 1 East Calcutta Township,Kolkata-700 107 Telephone : (91 ) (33) 3984947519524 5th August 2023 Fax : (91) (33) 39849676 Web : www. ifbindustries.com The Manager Department of Corporate Services Bombay Stock Exchange Ltd, Phir
Slide 2: Financial Report Quarter Ended 30th June 2023
ilFTT lf * lnriustrir$ Limited Financial Report Quarter Ended 3oth June,7A23 tlrlt"
Slide 3: Trend for the Quarter
1 Trend for the Quarter Revenue ({ in Crore) Operating PTofiVEBDITA ({ in Crore} \ / \ / \ / \ / rY FY FY FY FY ''lg-'20 '2o'-'21 '21-'22 '22-'23 '23-'24 FV FY FY FY FY ''19-',20 '20'-'21 '21-'22 '22:23 '23-',24 Iqt {-qr Free cash flow (t in Crore) 120 100 80 60 40 20 o -20 -40 60 FY FY FY FY FY '19
Slide 4: (t in Crore) r Crowth/degrowth have been calculated in comparison with june'ZZ.
M tr ru 5t (t in Crore) r Crowth/degrowth have been calculated in comparison with june'ZZ. o5
Slide 5: Financial Review Q1
1 Financial Review Qt {( in Crore) Revenue "l,065.00 l,04g.oo EBITDA 40.68 58.4s EBITDA 0,6 on Revenue 3.85 3.66 EBT 3.s4 3.O9 EBT % on Revenue o.53 o.29 ROCE % 4.62 4.44 Growth in revenue in first Quarter is marginally hi r than last year but below expectation. Reduction in material cost and better
Slide 6: Balance Sheet
1 Balance Sheet Total bonowing was ?150.60 crore as on Quarter end date including a term loan amount of ?97.24 crore. Break-up of this is as follows: Borrowing (t in Crore) ECB" 52.28 Standard Chartered AC Project Five Years Rupee Term Loan 9.96 Federal Bank Steel Division Six \tuars Rupee Term Loan
Slide 7: Cash and Bank Balances
1 Against the aforesaid bonowing, as on 50th June 2A23, our Cash and Bank Balances {including investments an Mutual Funds) were at ?249.77 crore. Hence the Company's net cash balance was positive after considering its overall debt position. The break up of this is given: Break-up of cash & bank bala
Slide 8: IFB Refrigeration Limited investment
'_.1'. ".ii r ', . ! .--h+i j Finarrcial Report-Quarter Ffu 3(}frt Frre; 2107& F. i .. ;: : IFB lndustries invested T97 crore in IFB Refrigeration Limited, holding 44.44a/a of its total equity" The Plant successfully commenced commercial production in READY May 2023. ln the first Quarter of FY'V3*'2
Slide 9: Home Appliances Division
lHffi T Home Appliances Division During the Ql period, the market faced stress due to unseasonal rains and stockpile build-ups in the channel. This led to low market movement in April and May but the situation improved in June 7O2.3" Across product categories, customer off-take was generally low. Ho
Slide 10: IFB Points and modular kitchen
T radius around each store. Cunently, around 4Cf/aof footfalls at IFB Points are influenced by digital means. This model is expected to make the IFB Points more financially rewarding for franchisees. As part of IFB Points, we also operate the modular kitchen business. Unfortunately, we have not been
Slide 11: Engineering Division
Engineering Division , l ln the first Quarter of FY'73-'24, the overall business environment remained relatively stagnant. . For 4w demand, all oEMs experienced higher numbers compared to el of the previous year. This trend is expected to continue in the next Quarter due to a high waiting period and
Slide 12: Automotive market update
Financial Report-Quafter Ended SOth June,z0Zs ln Ql, the automotive market sales showed a slight upward trend compared to Ql of the previous year yZZ:23; ' However, the semiconductor shortage situation is still causing issues, affecting some models in both the 2W and 4W segments" " On a positive not
Slide 13: Home Appliances product range: front load washers
*sitr fi $ ft .*. r .. :: r.. Y " :,;. ,-.* : - ':-';-'r ;-:T:'i. i; '.)*:* ):,ri";i':: The Division's range of products covers both domestic and industrial application categories. The updates at the end of first Quarter for each of the product categories are given below: . Front Load Washers Our pr
Slide 14: Top load washers and clothes dryers
1 . Top Load Washers Our models with in-built heaters and Steam-enabled washing programs are performing well in the market. There is a growing demand for higher capacity models, which has been consistent over the past two years Our main focus is to expand placements and increase availability of thes
Slide 15: Exports, exhibitions and product road map
T To expand our export footprint, we have targeted new markets such as UAE and Africa and we have already secured regular orders from the UAE- Additionally, we are actively pursuing business partners in Russia and plan to participate in an expo in Moscow in oct 2023- We are also exploring partnershi
Slide 16: Built-in kitchen appliances
Financial Report-Quarter Ended SOth J une, ZOZ3 . Built ln ovens, Built ln Dishwasher, Built ln MW, chimneys and Hobs ln tlre first Ouarter of FY '73-'24, the kitchen appliances buift-in segment achieved approximately T7 crore in business' To achieve the desired monthly growth of t5 crore, ouifocus
Slide 17: Dishwashers
Flnenciel nep"rt iiid ,mn 'l t.. ,.*,--!:--- " Dishwashers __. The domestic dishwasher segrnent has experienced a decline in I demand compared to previous Quarters. ln the last Quarter, the market saw a reduction of approximately 6,000 units per month across all brands. Currently, we are placed in a
Slide 18: Air Conditioners
T . Air Conditioners Effective from 1st July ?A27, the new energy regulations have led to changes in our product line. our new range includes products at new capacity points like 1 5 T 4 star, 1.6 T i star and more, all of which are wi-Fi enabled. These products have been well-received in the market
Slide 19: Financial Summary of the Home Appliances Division
1 Financial Summary of the Home Appliances Division (? in Crore) Revenue 8sO.20 8sI.90 EBITDA 26.44 28.70 EBITDA 9b on Revenue 5.1 t 5.37 EBT -2.30 2.20 EtsT % on Revenue -o.77 o.26 ROCE % 3.78 6.s6 . Revenue during the Quarter was marginally lower than the same Quarter last year. . Despite higher g
Slide 20: Engineering Division Business Updates
1 Hn;gineer'ilng D ivision Business Updates e The Division, primarily dependent I The Business achieved a 579fi on d1e domestic auto sector, EBITA growth in Ql FY ?4 frrough witnessed an 8.069b growth in cost reduction and efficiertcy Ql FY'24 compared to Ql improvemenl measurcs. FY ?5. During the s
Slide 21: Trend of Revenue and profit
1 Trend of Revenue and profit: Last 4 year (t in Crore) goo 700 500 Revenue 4{X} 3m Growth 200 100 CAGR: 19o/o o 2019-20 2A2A-21 2021-22 2022-23 100 80 GO PBDIT ito Growth CAGR: 2O% 2019-20 2020-21 242l -22 20.2'2-23 l20l
Slide 22: Revenue Streams for Growth - Near Term
1 Revenue Str-eranrs for Growth-Near Term Existing Business To mitigate the impact of EVs on the business, the Cornpany is implementing these strategic measures: 1. rD intemcr wirh fhe existing playenr in the domestic EV mar{ter 2. Early engagement with players enrering *re EV market 5. EV neutral a
Slide 23: Engineering Division growth strategy
Financial Report-Quarter Ended SOth June, 2C.73 The Engineering Division's Browth strategy solely focuses on M&A opportunities and the Company is actively searching for a suitable target for acquisition. There are no plans to undertake large greenfield projects in this Division. The Division made bi
Slide 24: Premium Customer Base
1 Premium Customer Base Revenue Contribution gb 25 I5 tl I I0 4 4 5 5 5 2 2 2 o g J .t tJ cLr'! ur tc o IT. E .-, ,Jl c J lrl vl o vt E rn F E :l E 1 lrl zE o f.{ cl O ro o CE lrl lrJ o E F F o : E z F o F o :E F T ! F e trJ U z E a t4l o f o B r, (.'l o { -A = F 6 € & o 7 f {G 3 6 o co F* o tr F z"
Slide 25: Steady Improvement in ROCE
1 Steady lmprovement in ROCE Trend of ROCE Movement 20 t5 Targeted l0 ROCE 3Oo/o 5 o Q].FY 25 Q2"FY 23 Q3.FY 23 04.FY 25 QI.FY 24 lmprovement in ROCE is mainly due to the following reasons . Normalisation of capital employed . lrnprovement in profitability l24l
Slide 26: Q1 Vertical-wise Growth
1 Ql Vertical-wise Growth Growth YOY Revenue (? in Crore) FY25 FY24 FY25 FY24 FY 23 FY 24 FY 25 F'f 24 FBD 8q6 Stamping f I % After Mar{ret {396} Total Eng 896 Growth YOY EBITDA (t in Crore) F-Y 73 FY 24 FY 23 FY 24 FY 25 F124 FY 25 F\ 24 FBD 246 Stamping 5l % After Market 74% Total Eng 5796 ln the
Slide 27: Quarterly Results-Q1 (FY 2023-24)
1 Quarterly Results-Ql (Fy 2O2I-24) Revenue (? in Crore) EBITDA (t in Crore) YOY 8% YOY 37ofa 12"56?b 9"76% QI.FY 25 QI.FY 24 QI.FY 25 QI.FY 24 EBT {t in Crore} ROCE {T in Crore) YOY 1 59% 6.849',0 2"85% Ql"FY 25 QI.FY 24 QI.FY 25 QI.FY 24 126l
Slide 28: Appliance Motor Division
T '1.1:r- -'r::'. Appliance Motor Sales are not separately reported as they are internal sales to the Home Appliances Division. However, once the new BLDC motor line is operatiorurl, we plan to sell to others, including competitors. During the Quarter, the Division's revenue did not grow as expected
Slide 29: Financial summary of Automotive Motor Division
1 The range of BLDC motors for washing machines can accommodate a wide range of capacities, from 5 Kg to 1O Kg machines, for both Front Load and Top Load applications. The targeted customers for washing machine gLOC motors include Samsung, \tVhirlpool, Electrolux, Vestal, among others. For air condi
Slide 30: Financial Summary of Steel Division
1 Financial Summary of Steel Division (t in Crore) Revenue 5s.46 5s.41 EBITDA -o.32 0.s0 EBITDA % on Revenue -o.90 1.41 EBT -1.25 0.06 EBT gb on Revenue -5.s1 o_t 7 ln the first Quarter of FY'73-'74, Total Sales was 444O MT, lower than the Budgeted 6550 MT due to a production loss of about 15 days f
Slide 31: Global Automotive Subsidiaries
Subsidiaries IFB lndustries Limited, the Holding company, has one wholly owned subsidiary-Glabal Automotive and Appliances Pte Ltd (6AAL) and one step-down subsidiary, Thai Auromoiive and Applirn.*r Limited {TAAL}. Global Automotive & Appliances pte Ltd (GAAL) (t in Crore) Revenue from O rati0ns 17.
Slide 32: Thai Automotive & Appliances Limited (TAAL)
1 Thai Automotive & Appliances Limited (TAAL) (t in Crore) Revenue 13.99 9.44 EBITDA o.59 o.25 EBITDA Vo on Revenue 2.79 7.44 EBT -o.21 -0.34 EBT % on Revenue -'l.so -5.60 TAAL is engaged in manufacturing Auto Components through Fine Blanking process. . Revenue Crowth during the Quarter is 4896 as c
Slide 33: Note on Ramsons takeover
Note on current status after take over 1 Note on Ramsons takeouer . lndustrial Laundry Manufacturing Business was acquired from Ramsons on I Bth Oct 2Ol B. ' Dle to the pandemic our business was severely impacted as hotels, railways and other institutions were all closed in FY'20*?l and also FY'71j7
Slide 34: Note on the Stamping Division takeover
Note on the Stamping Division talreover 1 ' IFB lndustries Ltd acquired the Stamping Division from IFB Automotive pvr. Lrd in Ocrobe r ZO19 ro posirion irs Engineering Division as a One-stop-shbp For the Automobile Components Business" . Performance Progress l - The revenue of the Stamping Division
Slide 35: Note on Acquisition of Trishan Metals takeover
Note on Acquisition of Trishan Metals takeover 1 5l % of-equity of erstwhile Trishan Metals h/t Ltd [Manufacturer of Cold Rolled Strips] was acquired by IFBIL in luly,201Q" Remaining 49% was acquired on 51st Oct, 2020. Finally it was amalgambted with IFBIL wiih effecr from I st April '21 as per the
Slide 36: Note on Automotive Motor Division takeover
1 Note on Automotive Motor Division takeover The Motor Division of IFB lndustries acquired the Automotive Motor Division of IFB Automotive Pvt Ltd in October 2O19. The acquisition aimed to create synergy between the Divisions, resulting in substantial savings and increased scale. Post-acquisition, s
Slide 37: Standalone Income Statement
STANDALONE INCOME STATEMENT QTR (t in Crore) 30 Jun, '23 30 Jun, '22 Total Sale of Products 1,279.85 I,267.85 Less: Trade Scheme and Discounts 280.83 771.38 Net Sales 999"O2 995.47 Sale of Services 50"81 24-28 Other Operating Revenues 25.24 24.O2 Reuenue from Operations r,o55.o7 1,A44.77 Other lncom
Slide 38: Standalone Balance Sheet
STANDALONE BALANCE SHEET (t in Crore) 30 jun '23 5l Mar', '23 n ce E're tstJJl- IJ Property, Plant and Equipment* s68.86 689.63 lnvestment in Subsidiaries 1 r 8.60 I 18.60 lnvestment in Equity Shares 7.25 2.75 lnventories 497.q 556.82 lnvestment in Mutual Funds 138^80 89.15 Trade Receivables 372.79
Slide 39: Standalone Key Ratios
1 STANDALONE KEY RATIOS QTR 30 Jun, '23 3O Jun, '22 Eamings Per Share (in t) (Not Ann ualised) o,65 o.49 Book Value Per Share (in t) r 62.64 157.64 Current Ratio (#) 1.@ 1.16 Quick Ratio (#) o.64 o_58 EBDITA/Total lncnme (%) 3.8 3.7 Net Profit Margin {ry"} o.2 o.2 Net Worth (in t 547.91 527_65 RONW
Slide 40: Standalone Cash Flow Statement
T STANDALONE CASH FLOW STATEMENT YTD (t in Crore) 30 Jun, '23 5l Mar, '25 CASH FLOWS FROM OPERATING ACTIVITIES Profit Before Thx 3-55 34.N Non-Cash and Other Adjustments 35.82 133.7s Operating Profrt Before Working Capital Changes 3E.37 168.15 Movement in Working Capital 86.74 (s8.40) Cash Cenerated
Slide 41: Consolidated Highlights
CONSOLIDATED HICHLICHTS (t in Crore) Q1 ('25-',24i 01 ('22-'23) Total lncome I 093.69 1,O71.73 Eaming Before Depreciation, lnterest and Tax 38.27 39.O6 Eaming Before lnterest and Tax 8.O3 I0.44 Profit Befrlre Tax o.56 3.r 5 Profit After Tax (0.62) 1.90 Eamings Per Share (t) (Not Annualised) (o.1s) 4
Slide 42: Consolidated Income Statement
CONSOLI DATED INCOME STATEMENT l QTR (t in Crore) 50 Jun, '25 50 Jun, '22 Total Sale sf Products I,3I0.Og 1,289.92 Less: Trade Scheme and Discounts 280.83 771.38 Net Sales 1,029.26 I,O18.54 Sale of Services 30.81 24.28 Other Operatlng Revenues 25.84 24_58 Revenue From Operations 108s.9r r 067.40 Oth
Slide 43: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (t in Crore) 3O Jun, '25 5l Mar,'25 AS5ETs Propertlr, Plant and Equipment* 694.27 71 5.69 lnvestment in Equity Shares s2.54 96.84 lnventories 5s7.77 573.09 lnvestment in Mutual Funds 158.80 89.15 Trade Receivables 399.O5 413.37 'l Cash and Bank Balances l5.oI 97.05 Other N
Slide 44: Thank You
Financial Report-Quafter Ended SOth June,2023 Thank You This presentation contuins sfctements r'vhich reflect the Managernentk current uiews snd estirnates and may be construed as foward-looking in nature. The future involves certain risks nnd unceftainties thnt mny cause acfual results to rltffer m
Slide 45: Over 7 Million Satisfied Customers
OVER 7 MILLION SATISFIED CUSTOMERS ffi Micmwws 0ven Buih in 0ven 0islnvasher Chinrney I Built ir Hob Top Load Fmnt Load 100t6 fiothm Dryer Air Conditioner Prabir fhatterjee Directsr and Chief Finoncinl Oficer Phone +9,l 33 59849475/9524 Mobile +91 933.1 64880219674686372 Fax +91 33 i9849676 Ernai I