Greaves Cotton Limited · NSE:GREAVESCOT

Greaves Cotton — Investor Presentation (2011)

25 slides from Greaves Cotton's investor presentation, 2011

  1. Slide 1: Greaves Cotton Limited Investors Meet 2011

    GREAVES COTTON LIMITED INVESTORS MEET 2011

  2. Slide 2: Contents

    CONTENTS  GREAVES SNAPSHOT  HIGHLIGHTS OF 2010-11  THE ROAD AHEAD… 2

  3. Slide 3: Greaves has a pioneering history in Indian industry spanning over 150 years

    GREAVES HAS A PIONEERING HISTORY IN INDIAN INDUSTRY SPANNING OVER 150 YEARS 1859 1947 1986 1996 2007 2009 2010 James GREAVES India attains Technical Introduces Transit Acquires Bukh Crosses two Acquires Ascot forms the independence. collaboration with Mixer and Farymann Diesel million in light Inter

  4. Slide 4: Greaves today is one of the leading single cylinder engine manufacturers in the world

    GREAVES TODAY IS ONE OF THE LEADING SINGLE CYLINDER ENGINE MANUFACTURERS IN THE WORLD GREAVES TODAY Consolidated Net Sales of INR 1,725 Cr (9M CORE COMPETENCE FY11 - INR 1,279 Cr ) 1 Engine Technology Development Manufactures over 5 Lac IC engines in 1.4 to State of Art R&D centers with over a 1000

  5. Slide 5: The company operates through five business divisions with automotive being the largest

    THE COMPANY OPERATES THROUGH FIVE BUSINESS DIVISIONS WITH AUTOMOTIVE BEING THE LARGEST GCL - Business Divisions AUXILIARY AGRO I INDUSTRIAL CONSTRUCTION AUTOMOTIVE POWER EQUIPMENT ENGINE EQUIPMENT  Fuel efficient, rugged  Wide range of agro-  Light Diesel Engines  Diesel Engines from  Construct

  6. Slide 6: Greaves offers a diversified product profile to its valued customers

    GREAVES OFFERS A DIVERSIFIED PRODUCT PROFILE TO ITS VALUED CUSTOMERS… GCL - Major Products AUXILIARY POWER AGRO EQUIPMENT AUTOMOTIVE INDUSTRIAL ENGINE CONSTRUCTION EQP Single Cylinder Portable Genset Power Tiller Marine Engine Road Compactor Engine Twin Cylinder Canopised Genset Reaper 8 Cylinder En

  7. Slide 7: Serves multiple sectors of industry

    … AND SERVES MULTIPLE SECTORS OF INDUSTRY GCL – End Use Sectors AUXILIARY POWER AGRO EQUIPMENT AUTOMOTIVE INDUSTRIAL ENGINE CONSTRUCTION EQP • Manufacturing • Medium & • 3 Wheeled • Agriculture • Concreting Enterprises Small Farms Commercial Industry Vehicle • Fire Fighting • Commercial & • Gardens

  8. Slide 8: The company serves its customers through a strong sales & service network

    THE COMPANY SERVES ITS CUSTOMERS THROUGH A STRONG SALES & SERVICE NETWORK 8

  9. Slide 9: Institutional shareholding has gone up by 5% during 2010-11

    INSTITUTIONAL SHAREHOLDING HAS GONE-UP BY 5% DURING 2010-11 SHAREHOLDING PATTERN (as on 31.03.11) 9% • Share Capital : INR 48.84 Cr 52% • Listing : 39% • Bombay Stock Exchange (BSE) • National Stock Exchange (NSE) Promoters • Market Capitalization : INR 2,327 Cr (as on Institutional Investors 31.03.

  10. Slide 10: Contents

    CONTENTS  GREAVES SNAPSHOT 10  HIGHLIGHTS OF 2010-11  THE ROAD AHEAD…

  11. Slide 11: Greaves continued its improved performance in 2010-11 as well

    GREAVES CONTINUED ITS IMPROVED PERFORMANCE IN 2010-11 AS WELL Sound operating performance in FY11 Produced ~390,000 engines in 9M FY11, corresponding to over 500,000 units on annualized basis Consolidated EBITDA improved to INR 199 Cr in 9M FY11 (up 22%), corresponding to INR 256 Cr on annualized ba

  12. Slide 12: 9 months performance was close to 12 months performance of last year

    9 MONTHS PERFORMANCE WAS CLOSE TO 12 MONTHS PERFORMANCE OF LAST YEAR REVENUE (INR Cr) 1684 1347 434 347 1250 1000 358 453  9M Revenue grew by 25% on account of strong performance by FY10 FY11* Q3FY10 Q3FY11 all business units EBITDA (INR Cr)  9M EBITDA continued to grow 253 strongly and reached IN

  13. Slide 13: 9 months profitability performance exceeded 12 months performance of last year

    9 MONTHS PROFITABILITY PERFORMANCE EXCEEDED 12 MONTHS PERFORMANCE OF LAST YEAR PROFIT BEFORE TAX (INR Cr) 238 173 54 39 184 134 50 67  9M PBT grew by 37% FY10 FY11* Q3FY10 Q3FY11  9M PAT continued to grow strongly PROFIT AFTER TAX (INR Cr) and reached INR 127 Cr in 2010-11 167 up by 41%; an all ti

  14. Slide 14: Return on capital employed improved to 49% and ROE improved to 35% in FY11

    RETURN ON CAPITAL EMPLOYED IMPROVED TO 49% AND ROE IMPROVED TO 35% IN FY11 RETURN ON CAPITAL EMPLOYED (%) 52% 49% 38% 39% 22%  ROCE improved to 49% in FY11 FY07 FY08 FY09 FY10 FY11* (annualized) from 39% in FY10 RETURN ON EQUITY (%)  ROE improved to 35% in FY11 (annualized) from 28% in FY10 48% 33

  15. Slide 15: Infra equipment segment's share has inched-up

    WHILE ENGINES SEGMENT CONTINUES TO DOMINATE, INFRA EQUIPMENT SEGMENT’S SHARE HAS INCHED-UP SEGMENT REVENUE SPLIT 4% 12% 84% Engine Infrastructure Equipment Trading  Engine segment continues to dominate the company with 84% (last year 85%) share of revenue SEGMENT PROFIT SPLIT and 93% share of profi

  16. Slide 16: The company provided better shareholder returns in FY11

    THE COMPANY PROVIDED BETTER SHAREHOLDER RETURNS IN FY11 SHARE HOLDER RETURNS 8.0 100 6.9 90 7.0 87 80 6.0 5.0 66 70 4.8 5.0 INR/ Share 4.5 60 INR 4.0 50 50 42 3 3.0 40 2.3 30 2.0 1.4 1.5 1.2 22 20 0.8 1.0 10 0.0 0 FY07 FY08 FY09 FY10 FY11 EPS Dividend Avg. Market Price  EPS expanded to 5.2 in 9M FY

  17. Slide 17: Snapshot - Income Statement

    SNAPSHOT - INCOME STATEMENT FY10 FY11 Rs Cr Q3 9M Q3 9M Revenue 358.0 999.5 452.7 1250.4 EBITDA 58.4 161.0 66.7 197.8 Depreciation 6.6 20.2 7.2 21.0 Operating Profit 51.8 140.8 59.5 176.8 Interest 3.0 10.2 2.4 7.2 Other Income 1.5 3.1 9.8 14.1 PBT 50.3 133.7 66.9 183.7 PAT 33.6 90.2 46.7 127.3 17

  18. Slide 18: Snapshot - Balance Sheet

    SNAPSHOT - BALANCE SHEET Rs Cr Mar’10 Jun’10 Mar’11 Sources Shareholders Fund 484 441 526 Loan Fund 6 5 6 Deferred Tax Liability (Net) 26 25 26 Total 516 471 558 Applications Fixed Assets (Net) 259 266 287 Investment 95 130 84 Net Current Assets 162 75 187 Total 516 471 558 18

  19. Slide 19: Snapshot - Key Financial & Operational Ratios

    SNAPSHOT - KEY FINANCIAL & OPERATIONAL RATIOS Category Unit FY 10 9MFY10 9MFY11 EBITDA Margin % 15.3 16.1 15.8 Profitability Net Profit Margin % 8.8 9.0 10.2 Fixed Asset Turnover Times 5.1 5.0 6.0 Average Debtor Days Days 49 51 54 Activity Average Inventory Days Days 58 54 53 Average Trade Creditors

  20. Slide 20: Snapshot - Key Initiatives 2010-11

    SNAPSHOT - KEY INITIATIVES 2010-11 KEY INITIATIVES UNDERTAKEN IN 2010-11  BS III emission norms achieved for automotive engines using cost competitive technology developed by in-house R&D  Construction of new plant at Shendra (Aurangabad) initiated to augment capacity for Automotive engines  Cons

  21. Slide 21: Contents

    CONTENTS  GREAVES SNAPSHOT  HIGHLIGHTS OF 2010-11  THE ROAD AHEAD…

  22. Slide 22: Global economic growth expected to moderate in 2011; India expected to grow at 8.3%

    GLOBAL ECONOMIC GROWTH EXPECTED TO MODERATE IN 2011; INDIA EXPECTED TO GROW AT 8.3% GLOBAL GDP GROWTH RATE (%) • Global GDP growth expected to moderate to 3.2% in 2011 from 3.4% World 3.2 in 2010 on account of increase in 3.4 7.1 oil prices due to geopolitical BRICS 8.4 tensions in the Middle East a

  23. Slide 23: Key sectors of Greaves' presence expected to sustain growth in the year ahead

    KEY SECTORS OF GREAVES’ PRESENCE EXPECTED TO SUSTAIN GROWTH IN THE YEAR AHEAD • Continued growth in domestic market, coupled with strong exports, expected to support AUTOMOTIVE volume growth in FY12 SECTOR • 3-Wheeled and 4-Wheeled SCV segment expected to grow rapidly in FY12 due to additional thrus

  24. Slide 24: Strategic initiatives planned for FY12

    THE COMPANY HAS ALSO PLANNED SEVERAL STRATEGIC INITIATIVES FOR FY12 TO STRENGTHEN ITS POSITIONING KEY INITIATIVES PLANNED IN 2011-12  Increased R&D investments to: - evolve products for new regulations on Emission and Noise while maintaining optimum product cost - add new products categories (multi

  25. Slide 25: Thank you

    THANK YOU GREAVES COTTON LIMITED www.greavescotton.com 25

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