Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q1 FY2025 Earnings Presentation
25 slides from Varroc Engineering's earnings presentation, Aug 8, 2024
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/2024-25/53 August 7, 2024 To, The Manager- Listing
Slide 2: Press Release
Press Release Varroc Engineering continues to strengthen its balance sheet • Consolidated revenue from operations was ₹18,989 million in Q1 FY25 • Net Debt reduces by 668 million and Net Debt/Equity improves to 0.59 in Q1 FY24 Pune, August 7, 2024: Varroc Engineering Ltd. (Varroc), a global tier-I a
Slide 3: Press Release
Press Release In Q1FY25, our lifetime new business win was over Rs. 7959 million. The cumulative order wins are expected to result in annual peak revenue levels of around Rs.1416 million. Nearly 48% of our business win in the quarter has come from EV players. Our Revenue from supplying to EV players
Slide 4: Presentation to Investors - Q1 FY25
Presentation to Investors - Q1 FY25 7th August 2024 1
Slide 5: 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 6: 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 7: Update on Q1 FY25 Performance
Update on Q1 FY 25 Performance 7th August 2024 1
Slide 8: Highlights for Q1 FY25
Highlights for Q1 FY25 1.Revenue for Q1 FY25 at 18,989 mn with a growth of 5.2% YoY driven by India business growth of 11.3% . 2. Profitability for Q1 FY25 Q1 FY25 PBT at 2.9% vs. 3.6% in Q1FY 24 Q1 FY25 EBITDA at 9.1% vs. 10.0% in Q1 FY 24 Net debt reduced by further Rs.666 million in Q1 FY25 and i
Slide 9: Automotive Production in India
Automotive Production in India Units in million • In Q1 FY25 strong domestic macro factors resulted most of 5.86 the segment to grow on YoY basis other than CV segment. 5.52 • 2W grew by 19.6% 4.90 • 3W grew by 9.4% • PV grew by 5.8% • CV de-grew by 1.4% • Due to cyclicity, on QoQ basis, we saw de-g
Slide 10: Consolidated Financials of Q1 FY25
Consolidated Financials of Q1 FY25 19749 5.3% 18989 Rs. In Million Q1 FY25 Q1 FY24 YoY Q4 FY24 QoQ 18057 Revenue 18,989 18,057 5.2% 19,749 -3.8% 3.6% 2.9% EBITDA 1,724 1,802 -4.3% 2,187 -21.2% EBITDA % 9.1% 10.0% -90 bps 11.1% -200 bps PBT 560 652 -14.2% 1,050 -46.7% Q1 FY24 Q4 FY24 Q1 FY25 PBT % 2.
Slide 11: Consolidated Balance Sheet & Return Ratio's
Consolidated Balance Sheet & Return Ratio’s 31st March 2023 Rs. in Million 30th June 2024 31st March 2024 Net Debt 9,160 9,828 12,779 Equity 15.518 15,262 10,042 Annualised Adjusted EBITDA 6,896 7,590 5986 Net Debt/Equity 0.59 0.64 1.27 Net Debt/EBITDA 1.33 1.29 2.13 ROCE (Annualized) 16.3% 20.3% 12
Slide 12: Revenue Breakdown for Q1 FY25
Revenue Breakdown for Q1 FY25 Business Unit Segment 6.0% 2.1% Electrical Electronics Lighting 22% 8.7% 10.0% 3.0% Polymer 28% 36.9% 8.8% 35.7% 12.5% Metalic 2 & 3W 12.4% 4W & Others Aftermarket 72% Other (Overseas) 30.2% 78% Lighting & Electronics Overseas 33.8% Geography Customer 12.8% 17.9% 39.2%
Slide 13: New Lifetime Order Win in Q1 FY25
New Lifetime Order Win in Q1 FY25 (Lifetime Value is 7,959 million and Annual Peak Revenue is Rs.1,417 million) New business win adding to our revenue* in next 3 years Lifetime Revenue win from 2&3W and 4W Players 18,600 17500 15,200 2,312 14500 2W & 3W, 29.0% 8500 8,650 5000 5000 5000 4W, 71.0% 5,6
Slide 14: 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 15: Our Businesses
Our Businesses 7th August 2024 1
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: Sustainability
Sustainability PERFORM@CHANGE
Slide 22: 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 23: 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 24: 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 25: Thank You
THANK YOU PERFORM@CHANGE