Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Q2 FY2021 Earnings Presentation
39 slides from Balkrishna Industries's earnings presentation, November 2020
Slide 1: Investor Presentation - November 2020
BALKRISHNA INDUSTRIES LTD Investor Presentation - November 2020
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna 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 any
Slide 3: Strong Recovery in Sales Volumes
Strong Recovery in Sales Volumes In MT +60.71% 61,224 -11.96% 51,304 Sales Volume impacted 45,169 on-account of Covid-19 38,096 Q1FY20 Q2FY20 Q1FY21 Q2FY21 Reported Highest ever Quarterly Sales Volume in Q2FY21 3
Slide 4: Improving trend in Sales Volume…continues
Improving trend in Sales Volume…continues In MT +9.14% 105,287 96,473 99,320 Q1FY21 Sales Volume impacted on-account of Covid-19 H1FY20 H2FY20 H1FY21 Despite covid-19 impact in Q1FY21, H1FY21 witnessed growth over H1FY20 4
Slide 5: Performance Snapshot – Q2FY21
Performance Snapshot – Q2FY21 Sales Volumes Revenue 61,224 MT Rs. 1,551 Cr +36% YoY +40% YoY EBITDA PBT Rs. 527 Cr EBITDA Rs. 450 Cr with margin of +76% YoY 34.0% Board of Directors have declared a 2nd Interim Dividend of Rs. 4/- per equity share All figures on Standalone basis 5
Slide 6: Management Commentary
Management Commentary The demand continues to be strong in Agriculture segment across Geographies. In the 01 other segments, demand continues to remain stable Our diversified products portfolio, strong presence across the globe, multiple sourcing 02 bases of raw materials and strong balance sheet wi
Slide 7: Sales Volume Profile – H1FY21
Sales Volume Profile – H1FY21 In MT +8% 211,261 Lockdown 199,213 Impact 172,419 148,244 201,760 99,320 FY16 FY17 FY18 FY19 FY20 H1FY21 7
Slide 8: Volume Profile – H1FY21
Volume Profile – H1FY21 Segmental Sales Channel Sales Geographical Sales Others Others RoW 3% 4% 13% OEM OTR 25% 33% 23% 51% 64% India 71% 14% Europe Americas Agriculture Replacement 8
Slide 9: Profit & Loss
Profit & Loss Standalone Particulars (Rs.Cr) Q2FY21 Q2FY20 Growth H1FY21 H1FY20 Growth FY20 Sales (MT) 61,224 45,169 36% 99,230 96,473 3% 201,760 Revenue from Operations 1,579 1,071 2,507 2,265 4,782 Realized Gain on Foreign -27 36 -14 60 115 Exchange Total Income 1,551 1,107 40% 2,493 2,325 7% 4,89
Slide 10: Other Income and Net Forex Gain/(Loss)
Other Income and Net Forex Gain/(Loss) Standalone Particulars (Rs. Cr) Q2FY21 Q2FY20 H1FY21 H1FY20 Exchange Difference Gain (Realized) -14 41 8 69 Exchange Difference Gain (Un-Realized) 10 14 -19 28 Others 18 26 59 55 Total Other Income 14 81 47 152 Standalone Particulars (Rs. Cr) Q2FY21 Q2FY20 H1FY
Slide 11: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Sep’20 Mar’20 Particulars (Rs. Cr.) Sep’20 Mar’19 ASSETS EQUITY AND LIABILITIES Non-current assets 5,118 4,854 EQUITY 5,429 5,028 Property, Plant and Equipment 3,186 3,189 Equity Share Capital 39 39 Capital work-in-progress 666 586 Other Equity 5,390 4,989 Investm
Slide 12: Cash Flow
Cash Flow Particulars (Rs. Cr.) H1FY21 FY20 Operating profit before working capital changes 792 1,402 Changes in working capital 20 57 Cash generated from operations 812 1,459 Direct taxes paid (net of refund) and others 149 -295 Net Cash from Operating Activities 663 1,164 Net Cash from Investing A
Slide 13: Strong Balance Sheet performance in FY18 to FY20… Future Ready
Strong Balance Sheet performance in FY18 to FY20… Future Ready Cash Accruals of Rs. Distributed Dividend of 3,500cr over Rs. 800cr FY18 Capex Spends to the tune of to Rs.2,000cr from Internal Net Cash company Accruals FY20 Balance Sheet Repaid Debt undertaken Cash and Cash equivalents for Capex in B
Slide 14: Resilient Business Model
Resilient Business Model Long Term Debt Free with Cash and Cash equivalents of Rs. 1,299 crs as on 30th September 2020 Diversified Product Portfolio, Self Reliant in Carbon Black spread across Agriculture, along with Multiple sourcing Industrial, Construction arrangements for other Raw and mining ti
Slide 15: BKT 2.0: Continuing the next Phase of Growth
BKT 2.0: Continuing the next Phase of Growth 01 02 01 Replacement of Waluj Plant Capex at Bhuj Plant New state of the art fully Upscaling to large sized All integrated facility at a steel radial OTR Tires by capex of approximately investing in new capacity of Rs. 500 crores to replace a 5,000 MT p.a
Slide 16: Strategy at BKT
BK /T GROWING TOGETHER Strategy at BKT Tae | ‘9 GROWING TOGETHER 16
Slide 17: Our Focus Area
Our Focus Area Market Reach Expand reach within existing Sales Channels as well increase footprint within replacement segment and OEMs 01 Penetrate Americas Increase share of business in USA markets by increasing 02 supplies from India Product portfolio expansion 03 Expand the product portfolio by a
Slide 18: ‘Atmanirbhar’ BKT – Our Pledge
‘Atmanirbhar’ BKT – Our Pledge We pledge to fulfil the vision of self-reliance by continuing to manufacture in India for domestic consumption and global markets Our focus will be on improving our product portfolio, sustaining the consistent product quality and efficient service levels, thus enhancin
Slide 19: To Serve Global OEMs…
To Serve Global OEMs… The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 19
Slide 20: With India Production and Global Sales
With India Production and Global Sales Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan Our plants India – Our Bhuj, Gujarat Manufacturing base Mould plant, Dombivali 20
Slide 21: Balkrishna Industries – A Snapshot
Balkrishna Industries – A Snapshot Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 2,700 SKU Capacities Achievable cap
Slide 22: Our Strong Evolution
Our Strong Evolution Self Reliant on Carbon 2019 Started Manufacturing for 2020 Black with the large size 51” diameter tires completion of Phase 2 at at Bhuj Bhuj in Gujarat Plant in Crosses Rs. Started 2018 2015 Announced 2009 2006 Chopanki, 1,000 cr Greenfield Plant in Bhuj, Capex at Waluj Rajasth
Slide 23: BKT… at the forefront of Sustainability
BKT… at the forefront of Sustainability • 50% of the production plants’ electricity needs in North India have been met by green energy generated in our own wind park since 2004 • In Bhuj, the Company’s largest production site, the company has o Planted ~100,000 trees o Created two large water reserv
Slide 24: Agriculture Tires
Application of our Tires Agriculture Tires Cotton Pick Harvester Tractor Vineyard Tractor Pivot Irrigator Industrial Tires Loader Telehandler Mobile Crane OTR Tires Load Haul Dump Underground Mining Container Handler 24
Slide 25: BKT – A Strong Global Brand from INDIA
BKT – A Strong Global Brand from INDIA 25
Slide 26: Strengthening BKT Brand : Americas
Strengthening BKT Brand : Americas BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its fleet of Monster Trucks – Monster Jam is a top sporting event in America 26
Slide 27: Strengthening BKT Brand : Canada
Strengthening BKT Brand : Canada BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup 27
Slide 28: Strengthening BKT Brand : Italy, Europe
Strengthening BKT Brand : Italy, Europe BKT is the new Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT” 28
Slide 29: Strengthening BKT Brand : Spain, Europe
Strengthening BKT Brand : Spain, Europe BKT is the New Official Global Partner for the Spanish Football League “La Liga” 29
Slide 30: Strengthening BKT Brand : France, Europe
Strengthening BKT Brand : France, Europe BKT was the TITLE Sponsor for the FRENCH Football League “COUPE DE LA LIGUE BKT”. The Competition has been abolished in 2020 and BKT will now be associated with “LIGUE de Football Professionel (LFP)” in France 30
Slide 31: Strengthening BKT Brand : France, Europe
Strengthening BKT Brand : France, Europe BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France 31
Slide 32: Strengthening BKT Brand : Europe
Strengthening BKT Brand : Europe Premium Partner of EUROLEAGUE BASKETBALL 32
Slide 33: Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE
Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE Team of 26 expert journalists in agricultural mechanization, will assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’ 33
Slide 34: Strengthening BKT Brand : Australia
Strengthening BKT Brand : Australia BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 34
Slide 35: Strengthening BKT Brand : India
Strengthening BKT Brand : India Official Partner of Teams in the Cricket T20 League 35
Slide 36: Strengthening BKT Brand : India
Strengthening BKT Brand : India Supporting Kabbadi by becoming the official Tire Partner for 8 marquee Teams in Pro Kabbadi League 36
Slide 37: Strengthening BKT Brand : India
Strengthening BKT Brand : India OFF-HIGHWAY TIRE PARTNER FOR THE ‘TAMIL NADU PREMIER LEAGUE’ (TNPL) FOR T-20 CRICKET 37
Slide 38: Acting Together… Doing our Part
Acting Together… Doing our Part Protecting Supporting Supporting Employees Communities Medical staff 60,000+ food grains packages At plants which would suffice a family of 4 55,000+ personal Standard Operating for 15 days distributed in various protection equipment Procedures (SOP) regions of India
Slide 39: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. M S Bajaj – President Commercial & CFO Mr. Shogun Jain shogun.jain@sgapl.net +91 77383 77756 www
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