Rane (Madras) Limited · NSE:RML
Rane (Madras) — Q2 FY19 Earnings Presentation
35 slides from Rane (Madras)'s earnings presentation, Nov 1, 2018
Slide 1: Exchange cover letter: earnings presentation for quarter ended September 30, 2018
Registered Office' Tel : 91 44 2811 2472 " Maithri " Fax : 91 44 2811 2449 132, Cathedral Road, Chennai 600 086. URL : www, ranegroup.com lndia. CIN : 165993TN2004PLCO52856 Rane (Madras) Limited Eæ //Online Submission// RML / SE t Vt t2018-19 November 01, 2018 BSE Limited National Stock Exchange of
Slide 2: Rane Group Earnings Presentation | Q2 FY19
Rane Group Earnings Presentation | Q2 FY19 N o v e m b e r 2 0 1 8 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Industry Performance Review – Q2 FY19 › Rane Group Performance Review – Q2 FY19 › Group Companies Performance Highlights – Q2 FY19 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Industry Performance Review (Q2 FY19)
Industry Performance Review (Q2 FY19) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) 4% 16% 42% Utility Vehicles (MUV) 2% 10% 18% - Total Passenger Vehicle 3% 14% 60% Vans (MPV) 14% 22% 1% Small Comm
Slide 5: Outline
Outline › Industry Performance Review – Q2 FY19 › Rane Group Performance Review – Q2 FY19 › Group Companies Performance Highlights – Q2 FY19 Not to be copied or distributed without permission of Rane Holdings Limited 4
Slide 6: Group Aggregate Performance Review (Q2 FY19)
Group Aggregate Performance Review (Q2 FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 12.7% 10.7% 7.5% 1,372.1 147.3 147.4 87.1 4.5% 6.1% 1,161.0 18.2% 83.1 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 18.
Slide 7: RHL Consolidated Performance Review (Q2 FY19)
RHL Consolidated Performance Review (Q2 FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 12.0% 10.8% 9.6% 8.3% 647.9 67.4 61.9 60.8 562.0 15.3% 8.2% 11.3% 54.0 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items and includes profits from JV › Tota
Slide 8: Group Aggregate Performance Review (YTD)
Group Aggregate Performance Review (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 2,172.6 2,718.2 25.1% EBITDA 259.8 291.0 12.0% EBITDA Margin 12.0% 10.7% -125 bps PBT Before Exceptional Items 140.1 164.9 17.7% Exceptional (Expenses) / Income 32.1 - PBT 172.2 164.9 -4.2% PBT Margin 7.9% 6.1% -
Slide 9: RHL Consolidated Performance Review (YTD)
RHL Consolidated Performance Review (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 1,053.6 1,290.6 22.5% EBITDA 119.4 123.0 3.0% EBITDA Margin 11.3% 9.5% -181 bps PBT Before Exceptional Items 97.1 108.3 11.5% Exceptional (Expenses) / Income 15.7 - - PBT 112.8 108.3 -4.0% PBT Margin 10.7% 8.4%
Slide 10: Outline
Outline › Industry Performance Review – Q2 FY19 › Rane Group Performance Review – Q2 FY19 › Group Companies Performance Highlights – Q2 FY19 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 10
Slide 12: RML Standalone – Operational Performance Review
RML Standalone – Operational Performance Review Business Split (Q2 FY19) Market Environment By Market (%) › Indian automotive industry witnessed positive growth across vehicle segments Intl OEM, 20 India OEM&OES, 67 › Lower offtake on served models for die casting products from the North American ma
Slide 13: RML Standalone – Financial Performance Review
RML Standalone – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.4% 5.6% 10.9% 4.3% 40.5 20.1 356.1 12.7 297.3 32.5 24.5% 58.3% 19.7% Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 1
Slide 14: RML – Standalone Financials (YTD)
RML – Standalone Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 547.7 707.2 29.1% EBITDA 56.2 79.5 41.6% EBITDA Margin 10.3% 11.2% 99 bps PBT Before Exceptional Items 16.0 40.4 153.2% Exceptional (Expenses) / Income - - PBT 16.0 40.4 153.2% PBT Margin 2.9% 5.7% 280 bps PAT 11.1 27.2
Slide 15: RML Consolidated – Financial Performance Review
RML Consolidated – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 10.3% 9.5% 3.5% 3.3% 35.6 38.2 401.3 13.1 12.0 9.8% 345.2 7.5% 16.2% Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 16
Slide 16: RML – Consolidated Financials (YTD)
RML – Consolidated Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 640.2 801.6 25.2% EBITDA 59.9 72.2 20.7% EBITDA Margin 9.4% 9.0% -34 bps PBT Before Exceptional Items 12.5 24.1 92.5% Exceptional (Expenses) / Income - - PBT 12.5 24.1 92.5% PBT Margin 2.0% 3.0% 105 bps PAT 7.7 10.9 4
Slide 17: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 16
Slide 18: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (Q2 FY19) Market Environment By Market (%) › Ramp up in supplies to cater to demand from Indian OE customers India Intl Aftermarket, 6 Aftermarket, 8 › Ramp up in supplies to key International customers › Moderate demand from Indian aftermarket ›
Slide 19: REVL – Financial Performance Review
REVL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 5.5% Q2 FY2018 Q2 FY2019 (3.6) 75.4% 3.1% 107.8 5.2 -3.9% (6.4) 94.1 35.1% 14.6% 3.4 -5.9% Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 14.6% from
Slide 20: REVL – Financials (YTD)
REVL – Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 183.1 210.9 15.2% EBITDA 9.8 6.7 -31.5% EBITDA Margin 5.4% 3.2% -217 bps PBT Before Exceptional Items (7.7) (13.0) -69.1% Exceptional (Expenses) / Income - - PBT (7.7) (13.0) -69.1% PBT Margin -4.2% -6.2% -197 bps PAT (5.0) (8.5)
Slide 21: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 20
Slide 22: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (Q2 FY19) Market Environment By Market (%) › Favourable demand from Indian OE customers Intl OEM, 5 India › Moderate demand from Aftermarket segment; Drop on account of high base in OEM&OES, 62 Q2FY18 India Aftermarket, 33 Operational Highlights By
Slide 23: RBL – Financial Performance Review
RBL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 17.0% 12.2% 10.8% 6.1% 13.7 19.1 31.4% 46.3% 112.3 8.0% 121.3 13.1 7.4 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 8.0% from Rs.
Slide 24: RBL – Financials (YTD)
RBL – Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 213.3 244.4 14.6% EBITDA 35.0 28.6 -18.3% EBITDA Margin 16.4% 11.7% -472 bps PBT Before Exceptional Items 24.3 17.3 -28.7% Exceptional (Expenses) / Income - - PBT 24.3 17.3 -28.7% PBT Margin 11.4% 7.1% -431 bps PAT 16.7 11.9 -28.6
Slide 25: Rane TRW Steering Systems (RTSS)
Rane TRW Steering Systems (RTSS) Not to be copied or distributed without permission of Rane Holdings Limited 24
Slide 26: RTSS – Operational Performance Review
RTSS – Operational Performance Review Business Split (Q2 FY19) Market Environment By Market (%) › Robust demand for steering gear products from commercial vehicle segment India OEM&OES, Intl OEM, 27 68 › Strong demand for occupant safety products barring lower schedules on select served models India
Slide 27: RTSS – Financial Performance Review
RTSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 13.8% 10.0% 11.9% 8.4% 320.8 36.5 265.0 4.8% 38.2 1.8% 21.1% 26.4 26.9 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 21.1% from R
Slide 28: RTSS – Standalone Financials (YTD)
RTSS – Standalone Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 504.1 662.7 31.5% EBITDA 63.4 79.4 25.4% EBITDA Margin 12.6% 12.0% -58 bps PBT Before Exceptional Items 43.7 57.2 30.8% Exceptional (Expenses) / Income - - - PBT 43.7 57.2 30.8% PBT Margin 8.7% 8.6% -4 bps PAT 29.3 38.
Slide 29: Rane NSK Steering Systems (RNSS)
Rane NSK Steering Systems (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 28
Slide 30: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (Q2 FY19) Market Environment By Market (%) › EPS: Higher off-take from served models in passenger vehicle segment Intl OEM, 1 India OEM&OES, › MSC: Higher volumes on served programs 99 Operational Highlights By Vehicle Segment (%) › Awarded 2018 D
Slide 31: RNSS – Financial Performance Review
RNSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 15.4% 11.8% 43.3 13.7% 400.1 11.2% 330.9 20.9% 50.8 8.0% 39.0 54.8 10.8% Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 Q2 FY2018 Q2 FY2019 * PBT before exceptional items › Total Net Revenue increased by 20.9% from
Slide 32: RNSS – Financials (YTD)
RNSS – Financials (YTD) Rs Cr 6M FY18 6M FY19 Growth Total Net Revenue 604.0 756.7 25.3% EBITDA 91.1 104.9 15.1% EBITDA Margin 15.1% 13.9% -122 bps PBT Before Exceptional Items 67.2 81.7 21.7% Exceptional (Expenses) / Income 32.1 - - PBT 99.3 81.7 -17.7% PBT Margin 16.4% 10.8% -564 bps PAT 68.4 52.8
Slide 33: 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 32
Slide 34: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion bps Basis point, 100 bps equal to 1% OE Original Equipment CV Commercial Vehicles OEM Original Equipment Manufacturer EBITDA Earnings Before Interest, Tax and Depreciation & OES Original Equipment Supplier Amortization PBT Profi
Slide 35: Disclaimer
Disclaimer This presentation contains 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. The