Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Q2 FY2022 Earnings Presentation
25 slides from Greaves Cotton's earnings presentation, Oct 26, 2021
Slide 1: Cover letter to stock exchanges
GREAVES SINCE 1859 26th October, 2021 The Manager - Listing The Manager - Listing BSE Limited National Stock Exchange of India Limited BSE Code - 501455 NSE Code - GREAVESCOT Dear Sir/Madam, Sub: Investor Presentation In furtherance to our letter dated 23rd October, 2021 and pursuant to Regulation 3
Slide 2: Recovery. Resilience. Resurgence. Q2 and H1 FY2022 Investor's Presentation
RECOVERY. RESILIENCE. RESURGENCE. ENGINES RETAIL ELECTRIC MOBILITY Q2 and H1 FY2022 Investor’s Presentation (October 2021) www.greavescotton.com
Slide 3: Q2 FY22 Highlights
Q2 FY22 Highlights Financial Overview Key Highlights • E-mobility business recorded highest ever sales. Q2 FY’22 vs Q2 FY’21 : Revenue Normalized PAT 85% growth - Crossed cumulative sales 100,000+ EV customers across India Rs. 374 Cr EBITDA Rs. (23) Cr • Strengthened E3W business with the subscripti
Slide 4: Rebuilding New Greaves
Rebuilding New Greaves. - A story of rapid transformation with diversification & consolidation Driving future growth with Nagesh Basavanhalli Managing Director and Group CEO Investment in Technology & Innovation Focus on Talent & People development “The company has seen progress across key busin
Slide 5: Greaves' Re-imagination Journey Gaining Pace
Greaves’ Re-imagination Journey Gaining Pace Growth rebounds riding on strong brand pull and efficiency improvements Quarterly Revenue Trend (INR Cr.) Covid Impact & NBFC Crisis Rapid Recovery 15 23 26 68 58 27 42 90 486 495 506 528 477 490 495 406 452 447 458 437 457 15 391 360 9 288 284 214 147 Q4
Slide 6: New opportunities now account for over 40% of total revenue
New opportunities now account for over 40% of total revenue. Further new initiatives being explored by businesses to grow revenue New business revenue as % of Consolidated Revenue has increased from 10% in Q2 FY19 to ~43% in Q2 FY22 Q2 FY19 10% Q2 FY22 • Multi-brand spares • Greaves Retail 43% • CNG
Slide 7: Focus on Strong Cash Flow Management
Focus on Strong Cash Flow Management Operational efficiencies driving cash improvement Sources and deployment of Cash Enhanced ‘better margin’ product sales contribution in INR 265 Crore of cash available to drive transformative growth portfolio Greaves E-Mobility subscribed to 26% stake in ML
Slide 8: Focus on Strong Cash Flow Management
Focus on Strong Cash Flow Management - Redeploy for funding future growth in different business Greaves manufacturing footprint transition Consolidation of Manufacturing plants has led to : E-Rick mfg. at Greater Noida • Reduced overheads (Leased Assembly Facility) • Removing redundancies • Resource
Slide 9: Diversification strategy with "& and &" approach pays well
Diversification strategy with “& and &” approach pays well for the Group H1FY22 Revenues – Rs. 602cr NEW E-Scooters E-Rickshaw E-Auto BUSINESS Auto Non-Auto Volumes – 18,093 Volumes – 37,765* Multi-Brand EV Multi-Brand Volumes – 15,433 retail format service format Auto business recovering post Cov
Slide 10: Greaves E-Mobility – Powering Sustainable Transformation
Greaves E-Mobility – Powering Sustainable Transformation One of the fastest growing EV brands in country Volume Sales for Greaves Electric Mobility (e2W + e3W) Product/Technology People 13,280 o 4 New Products across Economy & Performance o Addition of new Talent at key positions to drive aggressive
Slide 11: Sales Volume
Greaves Electric Mobility – eyes big for the festival period Volume Sales for Greaves Electric Mobility (E2W + E3W) Highest ever retail MTD as on 25th Oct Sales Volume Q 2 - Sales 13,280 5,000+ July Aug Sept Oct Increased customers at stores Increased visitors on website Record sale of 500 vehicles
Slide 12: Greaves E-mobility – Strong Drivers in Place for Accelerated Growth
Greaves E-mobility – Strong Drivers in Place for Accelerated Growth Upcoming State-of-the-Art L&D sessions manufacturing setup Experience Centre Access to affordable finance Growing customer & network base Learn more @Savings in EV over Petrol 5000 + New Channel Prospects Multi-brand EV service supp
Slide 13: Redefining long distance city drive with Magnus EX
Redefining long distance city drive with Magnus EX Best-in-class comfort and functionally superior performance with improved & innovative features Extra-ordinary mileage of 121 kms per charge* Detachable light-weight & portable advanced lithium battery with dual speed modes Watch the unfolding of ne
Slide 14: Greaves Retail business- transforming Customer Experiences
Greaves Retail business- transforming Customer Experiences Widest auto Launched AutoEVMArt, aftermarket a one stop multi brand EV network showroom 7000+ Multibrand store Spare parts retail outlets for 3W spare 165 Care outlets parts 12,000+ Contributes significantly to Mechanics consolidated revenue
Slide 15: Financial Performance
Financial Performance Greaves Consolidated Result H1 FY22 Segment Revenues (INR Cr.) Revenue EBITDA PAT 17% 602 485 Greaves Engines Greaves Retail 24% 59% E-Mobility (11) (53) (27) (46) H1 FY21 H1 FY22 Greaves Standalone Result H1 FY21 Segment Revenues Revenue EBITDA PAT 10% 498 435 Greaves Engines
Slide 16: Financial Snapshot
Financial Snapshot Particulars (Consolidated) Q2 Growth (%) Q1 Growth (%) H1 Growth (%) (Rs. Cr.) FY22 FY21 Y-o-Y FY22 Q-o-Q FY22 FY21 Y-o-Y Income from Operations 374 329 13% 229 63% 602 485 24% RMC (%) 74% 72% 71% 73% 72% Employee Cost 41 32 42 83 71 Other Expenses 64 45 41 105 76 EBITDA (10) 16 (
Slide 17: Segment Volumes
Segment Volumes Q2 Growth (%) Q1 Growth (%) H1 Growth (%) Volumes (Units) FY22 FY21 Y-o-Y FY22 Q-o-Q FY22 FY21 Y-o-Y Auto Engines 8,667 19,234 (55%) 9,426 (8%) 18,093 30,450 (41%) Non-Auto Engines 11,032 12,187 (9%) 9,447 17% 20,479 17,492 17% Engines 19,699 31,421 (37%) 18,873 4% 38,572 47,942 (20%
Slide 18: Balance Sheet and Cash Flow Trend
Balance Sheet and Cash Flow Trend (Rs. Cr.) Sep-20 Jun-21 Sep-21 Strong Working Capital Management Long Term Debt 1 1 4 209 151 Short Term Debt 1 12 11 111 93 84 Total Debt 2 13 14 41 42 27 Cash & Cash Equivalent 181 220 279 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Net Cash 180 207 26
Slide 19: In summary - Driving growth momentum
In summary - Driving growth momentum Wide-product portfolio from Continuous growth in Greaves E-mobility GEMPL completes acquisition of Automotive to Non-Automotive Greaves Retail business with becomes one of large ELE E-Rickshaw (100%) and segments with multiple & diverse better EBIDTA margins. pla
Slide 20: Annexure
Annexure Q2 AND H1 FY22 INVESTOR’S PRESENTATION 19
Slide 21: Sustainability at the Core - Environment
Sustainability at the Core - Environment Adopted an environment friendly approach in all its initiatives, manufacturing processes and technological innovations Green Approach Zero Liquid essential part of the Discharge GHG Reduction Initiatives: To reduced carbon footprint, Company’s culture at Aura
Slide 22: Sustainability at the Core - Social
Sustainability at the Core - Social Strives to work towards inclusive growth and betterment of society and the environment ISO 9001 / TS16949 / 97% of the EMS14000 components Certified are procured from local suppliers DEEP - Development Education Empowerment PRIME - Program for Real Independence Pr
Slide 23: Sustainability at the Core - Governance
Sustainability at the Core - Governance Pancha Tatva: “5 values 1 way of life” encompassing Transparency, Integrity, Responsibility, Passion for Excellence and Respect • Behaviour and Business Ethics: Committed to conduct its business in accordance with the applicable Zero Cases laws, rules and regu
Slide 24: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Greaves Cotton (“Greaves” or the Company) future business developments an
Slide 25: Thank You
STRONG BASE| SOUND FUNDAMENTALS| STABLE CASHFLOW AGILE STRUCTURE | POWERFUL PORTFOLIO| NEW PRODUCTS SOLID MANAGEMENT EXPERTISE | STRONG EXECUTION TASKFORCE MORE INCOME OPPORTUNITIES | MORE FASTER RETURNS | MORE TO LIFE GROWING BRANDS | GROWING RETAIL FOOTPRINT | GROWING CUSTOMER BASE THANK YOU REGIS