Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Q2 FY2020 Earnings Presentation
21 slides from Bharat Forge's earnings presentation, Nov 12, 2019
Slide 1: Exchange filing cover letter
BHARAT FORGE November 12, 2019 To, BSE Limited, National Stock Exchange of India Limited 1st Floor, New Trading Ring, 'Exchange Plaza', Rotunda Building, P.J. Towers, Bandra-Kurla Complex, Bandra (East) Symbol: BHARATFORG Dalal Street, Fort, Mumbai- 400 051 BSE SCRIP CODE - 500493 Mumbai - 400 001 S
Slide 2: Investor Presentation November 2019
INVESTOR PRESENTATION NOVEMBER 2019 1
Slide 3: Bharat Forge Overview
Bharat Forge Overview GLOBAL VERTICALLY ROBUST MANUFACTURING 10 locations across INTEGRATED FINANCIALS 5 countries ‐ With end‐to‐end Consolidated Revenue US, Germany, Sweden, capabilities US$ 1.6 B France and India MARQUEE GLOBAL CUSTOMERS LEADERSHIP Leading Automotive LARGEST In Powertrain OEMs & T
Slide 4: Summary Financials
Summary Financials Revenue (Rs.mln) 16,385 13,084 12,205 9,434 7,527 7,725 6,951 5,557 4,480 Domestic Export Sales Revenue Q II FY 19 Q I FY 20 Q II FY 20 EBIDTA (Rs.mln) PBT before ex. Diff (Rs. mln) 4,753 3,856 3,519 3,005 2,646 2,315 28.3% 26.1% 23.9% Q II FY 19 Q I FY 20 Q II FY 20 Q II FY 19 Q
Slide 5: Standalone Numbers – Q2 FY 2020
Standalone Numbers – Q2 FY 2020 (INR Million) Domestic Sales EBITDA 7,358 Export Sales Profit Before Tax 4,753 4,870 3,005 (33.8)% 9,434 (36.8)% 7,725 3,856 (18.1)% 2,315 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 (40.0)% Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 4
Slide 6: Export sales overview
Export sales overview (INR Million) COMMERCIAL VEHICLES PASSENGER VEHICLES 4,017 1,602 3,893 1,195 1,206 3,450 Q2FY19 Q1 FY20 Q2 FY20 Q2FY19 Q1 FY20 Q2 FY20 INDUSTRIAL • CV business impacted by weakness in EU 4,222 markets. • PV business continues to perform well with 2,672 2,429 strong traction on
Slide 7: Domestic sales overview
Domestic sales overview (INR Million) COMMERCIAL VEHICLES PASSENGER VEHICLES 607 2,894 2,159 576 935 536 Q2FY19 Q1 FY20 Q2 FY20 Q2FY19 Q1 FY20 Q2 FY20 INDUSTRIAL • Sharp decline in CV revenues on back of 2,748 production cuts undertaken by OEM’s ahead of BS VI emission standard change. 2,249 2,090 •
Slide 8: Segmental Breakup - Standalone
Segmental Breakup ‐ Standalone (INR Million) Commercial Vehicles Passenger Vehicles Industrials 38 % 19 % 43 % of total revenues of total revenues of total revenues Q2 FY 2020: 4,385 Q2 FY 2020: 2,178 Q2 FY 2020: 4,921 Q2 FY 2019 : 6,912 Q2 FY 2019 : 1,801 Q2 FY 2019 : 6,971 (36.6)% 20.9% (29.4)% 7
Slide 9: Geographical Breakup - Standalone
Geographical Breakup ‐ Standalone (INR Million) India USA Europe Rest of World 39 % 43 % 15 % 3% of total revenues of total revenues of total revenues of total revenues Q2 FY 2020: 4,870 Q2 FY 2020: 5,475 Q2 FY 2020: 1,896 Q2 FY 2020: 354 Q2 FY 2019 : 7,358 Q2 FY 2019 : 6,618 Q2 FY 2019 : 2,537 Q2 F
Slide 10: Strong Balance Sheet
Strong Balance Sheet (INR Million) Particulars September 30, 2019 March 31, 2019 Long Term Debt 15,887 15,722 WC & Bill Discounting 14,774 16,220 Equity 56,696 53,982 Cash 16,735 17,252 D/E 0.54 0.59 D/E (Net) 0.25 0.27 Long Term D/E (Net) (0.01) (0.03) ROCE 13.1% 21.2% RONW 14.8% 19.9% 9
Slide 11: State of BFL Markets: Current / Outlook
State of BFL Markets: Current (Y 2019) / Outlook (Y 2020) Construction Region CV PV O&G Agri Tractors & Mining NA / / / / / EU / / /- / - China / / - / - Brazil / /? - - - India / /? - /? /? 10
Slide 12: International Operations
International Operations (INR Million) Particulars Apr–Jun 19 Jan-Mar 19 Apr-Jun 18 Total Income 7,493 8,107 8,771 EBITDA 367 426 736 EBITDA % 4.9% 5.3% 8.4% PBT before Exceptional (64) (80) 292 Item Weakness in the auto sector in Europe impacted the financial performance Continue to focus on ma
Slide 13: Consolidated Numbers – Q2 FY20
Consolidated Numbers – Q2 FY20 (INR Million) Particulars Q2 FY20 Q1 FY20 Q2 FY19 Particulars September 30, 2019 March 31, 2019 Total Income 21,581 23,279 25,973 Long Term Debt 21,611 19,350 EBITDA 3,176 4,148 5,614 Equity 56,147 54,059 EBITDA % 14.7% 17.8% 21.6% Cash 18,533 18,352 PBT before 1,966 2
Slide 14: De-risking and Growing
De‐risking and Growing Reduced dependence on Auto sector Strong growth in Export Industrials and Passenger Diversified Industrials business across geographies Vehicles FY 2009 FY 2019 Domestic CV 13% 18% 20% 27% Export CV 19% Domestic PV 26% Export PV 34% 17% 7% 7% Domestic 8% Industrials 4% Ex
Slide 15: Resilient Operating Model
Resilient Operating Model FY 2019 FY 2019 28.8% FY 2017 24.9% FY 2017 28.5% 21.6% DEBT / EBITDA FY 2009 FY 2013 FY 2013 4.05 23.3% 14.2% FY 2013 FY 2009 FY 2009 2.55 21.7% 11.9% FY 2017 FY 2019 1.48 1.56 EBITDA MARGINS PBT MARGINS 14
Slide 16: ...Driven by Segmental Diversification
...Driven by Segmental Diversification YEAR YEAR YEAR YEAR YEAR SECTOR FOCUS ON A DE‐ RISKED BUSINESS MODEL 2001 2004 2012 2015 2017 TRUCK GEOGRAPHICAL DIVERSIFICATION PASSENGER CAR CONSTRUCTION & MINING SECTOR DIVERSIFICATION AGRICULTURE OIL & GAS PRODUCT EXPANSION AEROSPACE 15
Slide 17: New Strategic Business
New Strategic Business 1 Light Weighting Center 2 E‐Mobility 3 Transmissions 4 New Technologies 16
Slide 18: Addressing E-Mobility Opportunity
Addressing E‐Mobility Opportunity Develop solutions across the entire spectrum of EV’s from low voltage powertrains in personal mobility to high voltage applications for commercial vehicles Strategic investment in EV Strategic investment in EV R&D facility in UK for powertrain start‐up company
Slide 19: Leveraging our strengths
Leveraging our strengths People Technology & Innovation Future Growth A strong knowledge workforce Steadfast focus on new product We are leveraging all our strengths to development and emerging technologies drive our next leg of growth Capacity Customer Relationship Financials State of the art advan
Slide 20: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning Bharat Forge’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 statemen
Slide 21: Thank You
BHARAT FORGE KALYANI Thank You 20