Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — Q2 FY22 Earnings Presentation
37 slides from Sharda Motor Industries's earnings presentation, Nov 10, 2021
Slide 1: Submission of Investors Presentation to exchanges
SMIL: BSE/NSE: 21-22/1011 November 10, 2021 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor Pheroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602) (S
Slide 2: Sharda Motor Industries Limited Investor Presentation – November 2021
Sharda Motor Industries Limited Lets do great things together Investor Presentation – November 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Motor Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Group Overview
GROUP OVERVIEW 3
Slide 5: Sharda Motor at a Glance
Sharda Motor at a Glance Leading Auto-ancillary Company with Global Aspirations • Offers highly engineered products and services commencing from emission to suspension systems, roof systems & supply chain management solutions • Strong market share and healthy long-term relationships with OEMs • Alig
Slide 6: Key Milestones
Key Milestones 1986 1994 2002 2013 2018 2020 Formed a Joint Formed a Joint Venture (JV) with Foray into Exhaust System Venture (JV) with Kinetic Green for business with a facility in IPO and listing on Established R&D for Germany based Lithium Battery Chennai & Agreement Delhi Stock Exchange Emissio
Slide 7: Manufacturing Infrastructure
Manufacturing Infrastructure SMIL Units Design & Development Centre Namyang, Korea • Sanand • Exhaust System • Nashik • Suspension Assembly Namyang • Exhaust System Haridwar • Roof System • Pune Delhi • Exhaust System • Suspension Assembly • Chennai • Tube Mill / R&D ‘State of Art’ manufacturing fac
Slide 8: Research & Development
Research & Development Established R&D unit for exhaust system in 2002 and emission system 2010 at Mahindra World City, Chennai A state of art facility to Design, Simulate, Testing and Prototype of exhaust system for PVs & CVs as well as non-automotive applications R&D Centre has the full capabiliti
Slide 9: Our Experience of more than 3 Decades
Our Experience of more than 3 Decades Timing: Achievement of all timing milestones Tractors – All Ranges Medium & Heavy Commercial Costs: Achievement of all cost targets Vehicle ranging from 2.5L – 8L Process stability: Method of mass production realized in prototype tooling Off-road vehicle ranging
Slide 10: Our Technology Expertise
Our Technology Expertise Acoustic Structural Responsibilities Concept Design CFD Analysis Proto Build Industrialization Testing SOP Simulation Analysis Passenger Vehicle Engine Small Commercial Vehicle Engine Light Commercial Vehicle Engine Medium Commercial Vehicle Engine Heavy Commercial Vehicle 3
Slide 11: Legislation Tailwinds
Legislation Tailwinds Leading to increase in content per Vehicle Legislation Impact Off-Road • With applicability of new emission norms, the addressable market segment is expected to grow a CAGR of ~114% in CEV IV* (April 2021) next 5 years CEV IV & V and TREM IV & V emission standards are for non T
Slide 12: Growth Drivers
Growth Drivers ▪ Sustainable growth in operating profits vs Cyclical auto industry Operational efficiencies ▪ Backward integration by producing in-house bought out parts Technology – Key entry ▪ Strategic technology partnership giving access to world class technology in barrier emission control syst
Slide 13: Backward Integration & Opportunities
Backward Integration & Opportunities Structural Advantage Complete control Over process and supply Completely backward chain efficiencies, leading to integrated with two tube cost optimization and mills and three stamping With manufacturing gaining strategic advantage plants. infrastructure already
Slide 14: Electric Vehicle Drivers
Future Ready Getting Future Ready Electric vehicle market is estimated to be a Rs. 50,000 crore opportunity in India by 2025. Most of Indian consumers would consider Electric Vehicle Drivers buying an electric vehicle by the year 2022 Investment in Emerging De-Risking technologies The study also hig
Slide 15: Strategic Technology Partnerships – Key Entry Barrier
Strategic Technology Partnerships – Key Entry Barrier Eberspaecher and Sharda Motor Industries Ltd. entered Joint Venture – Lithium Battery into a JV to manufacture commercial vehicle exhaust Manufacturing systems in India. Eberspaecher brings in Global know-how Technical Kinetic Green^ and Sharda M
Slide 16: Exhaust Systems
Exhaust Systems From an idea to its manufacturing, Sharda Motor leads the market in this category Serving PV, CV and Catering to Domestic & Indian Market Share Annual Production Off-road segment. International customers of ~30% of ~1 million units 5 plants strategically located Catering to most of 3
Slide 17: Suspension Systems
Suspension Systems Expertise in this arena with its world-class manufacturing processes Indian Market Share Annual Production 2 manufacturing units of ~10% of ~1.5 lakh units Development, Concept, Design and Project planning & Digitizing Testing & Validation Arm Lower Control Front Suspension Upper
Slide 18: Experienced Board of Directors
Experienced Board of Directors Holds Bachelor’s Degree in commerce and has Mr. Ashok Kumar He holds Bachelor’s degree from IIT, Kharagpur Mr. Kishan Parikh overall experience of more than 30 years in area and P.H.D from Cambridge. Has more than 40 of Business Management and managing Financial Bhatta
Slide 19: Management Team
Management Team Mr. Ajay Relan Mr. Anand Dinkar Sontakke Managing Director Chief Operating Officer Responsible for overall manufacturing operations, Plant, BE in Mechanical from NIT, ICWAI (intermediate) & CPM from ISM, Research & Development, Product Development and USA. Has more than 29 years of e
Slide 20: Being Recognized
Being Recognized Silver award in Business Alignment Mahindra Supplier Excellence Award for Mahindra & Mahindra Annual Cummins India ABO Supplier Manufacturing Today Conference And Category by Ashok Leyland (2020-21) Business Partner of the Year (2015) Commodity Award (2014) Conference Award for Best
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS 20
Slide 22: Key Consolidated Financial Highlights for Q2FY22
Key Consolidated Financial Highlights for Q2FY22 Rs. Crores Revenue EBITDA PAT* +32% +79% +101% 587 61 42 472 444 40 24 34 21 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 21 * Including Profit/(loss) in JV and Associates
Slide 23: Key Consolidated Financial Highlights for H1FY22
Key Consolidated Financial Highlights for H1FY22 Rs. Crores Revenue EBITDA PAT* +93% +298% +582% 1,059 101 66 548 26 10 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 22 * Including Profit/(loss) in JV and Associates
Slide 24: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) Q2FY22 Q2FY21 YoY Q1FY22 QoQ H1FY22 H1FY21 YoY Revenue from Operations 587.1 444.3 32% 471.7 24% 1,058.9 547.9 93% Cost of Goods Sold 467.1 365.1 381.1 848.2 448.8 Gross Profit 120.1 79.2 52% 90.6 32% 210.7 99.1 113% Gross Profit Margin 2
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Equity & Liabilities (Rs. Crores) Sep-21 Mar-21 Assets (Rs. Crores) Sep-21 Mar-21 Non - Current Assets 199.7 218.1 Total Equity 489.0 430.8 Property Plant & Equipments 148.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.2 0.1 Right of Use Asset 10.7 10.5 Reserves
Slide 26: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. Crores) Q2FY22 Q2FY21 YoY Q1FY22 QoQ H1FY22 H1FY21 YoY Revenue from Operations 587.1 444.3 32% 471.7 24% 1,058.9 547.9 93% Cost of Goods Sold 467.1 365.1 381.1 848.2 448.8 Gross Profit 120.1 79.2 52% 90.6 32% 210.7 99.1 113% Gross Profit Margin 20.
Slide 27: Standalone Balance Sheet
Standalone Balance Sheet Equity & Liabilities (Rs. Crores) Sep-21 Mar-21 Assets (Rs. Crores) Sep-21 Mar-21 Non - Current Assets 220.7 232.7 Total Equity 510.0 445.4 Property Plant & Equipments 148.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.2 0.1 Right of Use Asset 10.7 10.5 Reserves &
Slide 28: Cash Flow Statement
Cash Flow Statement Standalone Consolidated as on Particulars (Rs. Crores) Half year ended Half year ended Half year ended Half year ended 30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20 Net Profit Before Tax 97.4 16.0 97.4 16.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items 8.2 12.4
Slide 29: Historical Proforma Financial Highlights
Historical Profoma Financial Highlights* Rs. Crores Revenue EBITDA PAT* 1,737 128 129 81 117 116 +24% 68 67 96 55 52 938 845 863 739 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 28 * Consolidated Excluding Seating Business * Including Profit/(loss) in JV and Associates
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crores) FY21 FY20 YoY Revenue from Operations 1,736.5 863.0 101% Cost of Goods Sold 1,419.5 585.9 Gross Profit 317.1 277.1 14% Gross Profit Margin 18.3% 32.1% Employee Cost 81.6 85.0 Other Expenses 106.2 96.3 EBITDA 129.3 95.8 35% EBITDA Margin 7
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Equity & Liabilities (Rs. Crores) Mar-21 Mar-20 Assets (Rs. Crores) Mar-21 Mar-20 Non - Current Assets 218.1 225.0 Total Equity 430.9 364.6 Property Plant & Equipments 168.0 175.4 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.9 Right of Use Asset 10.5 10.1 Reserves
Slide 32: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. Crores) FY21 FY20 YoY Revenue from Operations 1,736.50 863 101% Cost of Goods Sold 1,419.50 585.9 Gross Profit 317.0 277.1 14% Gross Profit Margin 18.3% 32.1% Employee Cost 81.6 85.0 Other Expenses 106.2 96.3 EBITDA 129.2 95.8 35% EBITDA Margin 7.4
Slide 33: Standalone Balance Sheet
Standalone Balance Sheet Equity & Liabilities (Rs. Crores) Mar-21 Mar-20 Assets (Rs. Crores) Mar-21 Mar-20 Non - Current Assets 232.7 227.7 Total Equity 445.4 367.2 Property Plant & Equipments 168.0 175.4 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.9 Reserves & Surplus 439.5 361.3 Right of
Slide 34: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Crores) FY21 FY20 FY21 FY20 Net Profit Before Tax 105.3 78.5 105.3 78.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 29.6 -104.4 29.6 -138.0 Operating profit before working capital changes 134.8 -25.9 134.8 -59.6
Slide 35: Adjusted ROCE
Adjusted ROCE* Particulars (Rs. Crores) H1FY22^ FY21 FY20 FY19 FY18 FY17 Interest Income on Cash (A) 13.8 10.0 5.5 4.8 3.9 3.0 EBIT (B) 188.1 106.7 79.4 113.3 97.2 87.8 Equity Capital (C) 489.0 430.9 364.6 409.4 318.0 260.0 Debt Capital (D) 0.0 0.0 0.0 0.0 0.0 22.5 Cash & Equivalents (E) 270.2 263.0
Slide 36: Corporate Social Responsibility Initiatives
Corporate Social Responsibility Initiatives Tree Planting Sharda Motor believes in the preservation of the environment. Our team of volunteers contributed their time, effort and sweat in making the environment better by planting trees and sapling of flowers. Stop Plastic Pollution Blood Donation Dri
Slide 37: For further information, please contact
For further information, please contact Company : Investor Relations Advisors: CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Srinivasan Narasimhan Mr. Jigar Kavaiya Chief Financial Officer Email: sn.s@shardamotor.com jigar.kavaiya@sgapl.net +91 9920602034 www.shardamotor.com www.sgapl.n
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