Rane (madras) Limited · NSE:RML
Rane (madras) — Q1 FY21 Earnings Presentation
21 slides from Rane (madras)'s earnings presentation, Aug 18, 2020
Slide 1: Exchange filing cover letter: Earnings Presentation Q1 FY21
Registered Office Tel: 91 44 2811 2472 “Maithri” Fax: 91 44 2811 2449 132, Cathedral Road, URL:www.ranegroup.com Chennai 600 086, India. CIN: L65993TN2004PLC052856 ___________________________________________ Rane (Madras) Limited __________________________________________ // Online submission // RML
Slide 2: Rane Group Earnings Presentation | Q1 FY21
Rane Group Earnings Presentation | Q1 FY21 A u g u s t 2 0 2 0 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Impact of Covid-19
Impact of Covid-19 With the Covid-19 pandemic and Government announcing lockdown measures in March 24, 2020, all our places of business including manufacturing plants, corporate office, branch offices and warehouses were shutdown. • Critical maintenance activities were undertaken during lockdown • E
Slide 4: Rane's Response to Covid-19
Rane’s Response to Covid-19 01 Organisational Preparedness RESPONSE Be agile and respond TO COVID-19 02 Plant Preparedness quickly to changes 03 Tier-2 Readiness Despite challenges, all 25 Plants of Rane Group have been able to meet Customer Demand up till now Not to be copied or distributed without
Slide 5: Rane's Response to Covid-19: Organizational Preparedness
Rane’s Response to Covid-19 1 Organizational Preparedness Executive Leadership Team Group • Executive leadership team reviews business conditions, risks, provides guidelines, etc. Business Head Company Company • Company level team Functional Heads 1 N reconfigures business plans, cost initiatives, e
Slide 6: Rane's Response to Covid-19: Plant Preparedness
Rane’s Response to Covid-19 2 Plant Preparedness • Based on interaction with key customers and benchmarking of best Temperature Screening of practices, Rane Group all employees at Gate Marking at various places to maintain social distancing developed Safety Procedures for reopening and sustenance •
Slide 7: Rane's Response to Covid-19: Tier-2 Readiness
Rane’s Response to Covid-19 Virtual Audit 3 Factory Sanitization Decontamination Tunnel & Sanitizers Tier-2 Readiness • Frequent communication during lockdown • Addressed supplier community to provide guidance on restart • Assessed supplier readiness to start and sustain supplies Raw material Identi
Slide 8: Measures to minimize impact of Covid-19
Measures to minimize impact of Covid-19 01. Sales Maximization • Increase share of business with key customers; BS6 transition provides opportunity in few products • Increased focus on Aftermarket segment 02. Cost Reduction • Salary reduction of 10% to 35% from junior to senior level employees respe
Slide 9: Update on New Business Development
Update on New Business Development RANE (MADRAS) RANE ENGINE VALVE • SLD has got breakthrough for Ball joint • Got nominations for new programs in India with Hyundai, Kia product in export market and Toyota • LMCI is diversifying its business portfolio – • Won new export business with leading engine
Slide 10: Industry Performance Review (Q1 FY21)
Industry Performance Review (Q1 FY21) Production YoY Growth# Rane Group Sales Growth YoY Rane Group Revenue Vehicle Segment in % in % (India OEM) Split * (India OEM) Passenger Cars (PC) -87% -89% 30% Utility Vehicles (MUV) -76% -85% 17% Vans -91% -90% 1% - Total Passenger Vehicle -84% -88% 48% Small
Slide 11: Industry Outlook (FY21)
Industry Outlook (FY21) Estimated Segment • Q1 performance is not reflective of market demand Growth PV -30% to -25% • Signs of recovery seen across vehicle segments in July • Recovery in FT driven by strong Agri sector CV -40% to -30% • Increased pull by OEMs to re-stock as the inventory levels wer
Slide 12: Financial Performance
Financial Performance Not to be copied or distributed without permission of Rane Holdings Limited 11
Slide 13: Group Aggregate
Group Aggregate Business Split – Group Aggregate (Q1 FY’21) By Market segment (%) By Vehicle Segment (%) FT, 12 2W, 3 OTH, 7 Intl Aftermarket M & HCV, & OEM, 38 India OEM & 14 OES, 48 LCV, 5 PC, 26 SCV, 3 MPV, 1 India Aftermarket, 14 MUV, 29 Financial Performance (Q1 FY’21) Group Aggregate Q1 FY21 Q
Slide 14: Rane (Madras)
Rane (Madras) Business Split (Q1 FY’21) - Standalone By Market Segment (%) By Vehicle Segment (%) FT, 32 Intl OEM, 30 India OEM&OES, 51 M & HCV, PC, 24 12 LCV, 4 India SCV, 3 Aftermarket, 19 MPV, 1 MUV, 24 Financial Performance (Q1 FY’21) Standalone Q1 FY21 Q1 FY20 Consolidated Q1 FY21 Q1 FY20 Total
Slide 15: Rane Engine Valve
Rane Engine Valve Business Split (Q1 FY’21) By Market Segment (%) By Vehicle Segment (%) 2W/3W, 19 MUV&MPV, Intl Aftermarket 3 India & OEM, 46 OEM&OES, 47 SE & Others, 31 PC, 23 SCV&LCV, India FT, 15 M & HCV, 3 Aftermarket, 7 6 Financial Performance (Q1 FY’21) Particulars Q1 FY21 Q1 FY20 Total Net R
Slide 16: Rane Brake Lining
Rane Brake Lining Business Split (Q1 FY’21) By Market Segment (%) By Vehicle Segment (%) Intl OEM, 9 FT, 3 2W, 11 OTH, 1 India OEM&OES, 39 PC, 20 M & HCV, India 48 Aftermarket, 52 MUV, 13 MPV, 1 LCV&SCV, 3 Financial Performance (Q1 FY’21) Particulars Q1 FY21 Q1 FY20 Total Net Revenue 41.2 118.9 EBIT
Slide 17: Rane TRW Steering Systems
Rane TRW Steering Systems Business Split (Q1 FY’21) By Market Segment (%) By Vehicle Segment (%) LCV, 9 M & HCV, 13 India OEM&OES, 34 PC, 18 Intl OEM, 62 India Aftermarket, 4 MUV, 60 Financial Performance (Q1 FY’21) Particulars Q1 FY21 Q1 FY20 Total Net Revenue 86.5 353.7 EBITDA (15.6) 23.3 PBT* (27
Slide 18: Rane NSK Steering Systems
Rane NSK Steering Systems Business Split (Q1 FY’21) By Market Segment (%) By Vehicle Segment (%) Intl OEM, 4 LCV, 4 OTH, 5 M & HCV, 5 MUV, 24 India PC, 62 OEM&OES, 96 Financial Performance (Q1 FY’21) Particulars Q1 FY21 Q1 FY20 Total Net Revenue 38.4 324.9 EBITDA (12.1) 35.2 PBT* (25.2) 22.2 * PBT b
Slide 19: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 18
Slide 20: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion EBITDA Earnings Before Interest, Tax and MSC Manual Steering Column Depreciation & Amortization OEM Original Equipment Manufacturer FT Farm Tractors OES Original Equipment Supplier FY Financial Year PBT Profit Before Tax Intl In
Slide 21: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T