Elecon Engineering Co. Ltd. · NSE:ELECON
Elecon Engineering — Q3 FY2017 Earnings Presentation
25 slides from Elecon Engineering's earnings presentation, Jun 30, 2017
Slide 1: Elecon Engineering Investor Presentation Q3FY17
Elecon Engineering Investor Presentation | Q3FY17
Slide 2: Safe Harbor
Safe Harbor Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "p
Slide 3: Financial Performance Q3FY17 and 9MFY17
Financial Performance Q3FY17 and 9MFY17
Slide 4: Quarterly Performance-Q3/9M FY17
Quarterly Performance-Q3/9M FY17 Standalone Q3FY17 Total Operating income was Rs.237 crores for Q3FY17 as compared to Rs.270 crores in the corresponding period of the previous year, reflecting a decline of 12%. EBITDA stood at Rs.17 crores as compared to Rs.18 crores during the corresponding period
Slide 5: Order Position
Order Position Orders booked in Q3FY17 Despite the headwinds in the order-execution activity, the gear business continued to witness traction from the customers. During the quarter, we booked orders worth Rs.108 crores in gear business. This translates to an order backlog of Rs.706 crores for execut
Slide 6: Yearly Performance-FY16
Yearly Performance-FY16 FY15 FY16 Standalone In INR Cr 518.8 106.5 43.2 107 50 520 45 106.5 33.2 40 515 106 35 30 3% increase in 105.5 99 bps drop in 104.7 510 30% increase in 503.2 25 105 505 the sales on year 104.5 EBITDA margins 20 15 Net Profits for 500 on year basis 104 due to change in 10 5 fi
Slide 7: Balance Sheet Position
Balance Sheet Position Standalone Consolidated Particulars (Rs. Cr.) FY16 FY15 FY16 FY15 Equity and Liability Shareholders Fund 553.5 510.4 561.9 535.6 Minority Interest 30.1 36.0 Non Current Liabilities 162.0 124.9 328.5 315.5 -Long-term borrowings 130.9 89.3 181.4 163.2 Current liabilities 450.6 4
Slide 8: Operational Highlights 2016
Operational Highlights 2016
Slide 9: Highlights- Gear Business
Highlights- Gear Business Synopsis Largest gear manufacturer in Asia 3 Years Revenue (INR m) Most comprehensive range of industrial gears under one roof in the world 6,200 Two broad segments of operation includes catalogue (standard) product and 5,012 5032 5188 engineered (customized) product Key Fi
Slide 10: Sales Mix- Gears
Sales Mix- Gears Crane Plastic & 2% Mining Marine Rubber 2% 3% 3% Chemicals Power 4% 28% Steel & Metal 7% Sugar 7% Others 23% Material Handling 8% Cement 9%
Slide 11: Target Industry Opportunity
Target Industry Opportunity Power Cement Sugar Steel Marine Chemicals Contributes over Contributes ~10% Contributes ~7% Contributed about We recently India is the third 28% to our to the topline and to our business 7% in fiscal 2016, received orders largest producer of business we have started likel
Slide 12: Gears Business- International
Gears Business- International Synopsis Radicon (David Brown) is a brand name known in Europe for over 70 years as an 3 Years Revenue (INR m) expert in high quality gears 4,000 Radicon and Benzlers deal - the company’s first international acquisition in 2010 3,200 3200 2969 Paved way for globalising
Slide 13: Material Handling(MHE) business
Material Handling(MHE) business Synopsis Pioneer in material handling business in India 3 Years Revenue (INR m) Providing end to end solutions to the core sectors like power, steel, mining, 8,000 cement, fertilizers and ports Complete in-house design and manufacturing capabilities 5,024 5201 4795 Ov
Slide 14: Industry Opportunity for MHE
Industry Opportunity for MHE Mining Others 3% 12% Steel 5% Cement Power 5% 55% Port 20%
Slide 15: Business Reorganization
GEARING THE FUTURE Business Reorganization
Slide 16: History
History Largest gear manufacturer in Established in Goregaon, Asia and a Mumbai by Ishwar Bhai Patel prominent MHE Established player separate Gear Foray into manufacturing division conveying equipment Listed on Bombay Stock Exchange 1951 1960 1962 1963 1976 2010 2012 Business restructuring by trans
Slide 17: Our Structure before merger
Our Structure before merger Elecon Engineering Company Ltd. Shareholding Pattern of Elecon Engineering Co. Ltd. Public Limited Company Elecon Engineering Promoters and Elecon Transmission 57.34% Company Limited Elecon EPC Promoters Group International (Gears) (Gears) FIIs 0.52% 60.49% Subsidiary 100
Slide 18: Reorganization of Business
Reorganization of Business Leading Manufacturer of Industrial Gears to merge with a prominent MHE player • The 60% holding in MHE of the • Strategy remains unchanged, existing investors collapsed into with continued focus on Elecon Engineering delivering attractive growth, • Shareholders of Elecon E
Slide 19: Structure-Overseas
Structure-Overseas Elecon Engineering Company Ltd. Public Limited Company Radicon Transmission UK Limited 100% Subsidiary Benzlers Radicon Elecon US AB Benzlers (Sweden) 100% Transmission Ltd. Subsidiary 100% Subsidiary
Slide 20: Strategic Rationale of Reorganization
Strategic Rationale of Reorganization Strategically reorganized MHE Focus Working The new entity will be able to business and focus only on the Capital improve working capital product businesses of MHE situation of the company and would de-stress the crunch at standalone EPC level The combined entit
Slide 21: Outlook
GEARING THE FUTURE
Slide 22: Economy Outlook
Economy Outlook Economy Economy is gradually moving towards revival, thereby increasing the level of capex within each industry. Sizable investments in the core sector industries are likely to boost demand The Indian Engineering Industry Government India likely to become a larger manufacturing base
Slide 23: Growth Outlook: Revenue and Margins 2016-2019
Growth Outlook 2016 2019 Gears Material Handling Benzlers and Radicon Revenue Outlook(INR m) 6500 4000 6000 7000 4500 7000 4000 5180 6000 4790 3000 6000 3500 5000 5000 3000 4000 4000 2500 3000 2000 3000 1500 2000 2000 1000 1000 1000 500 0 0 0 25-28% 17-19% 8-10% 10000 10000 10000 Margins(%) 9000 900
Slide 24: Multiple Growth Drivers
Multiple Growth Drivers Scale Elecon is the largest manufacturer of gears in Asia, ~30% market share in India Scope Encompasses both catalogue and engineered products for all the core industries Size Its MHE business has the capacity to address cross industry solutions Skills Over 6 decades of indus
Slide 25: Elecon: Gearing the Future
@€ELECON GEARING THE FUTURE www.elecon.com | BSE: 505700 | NSE: ELECON | Bloomberg: ELCN:IN | Reuters: ELCN.NS © 2016 Elecon Engineering Company Limited, All Rights Reserved. Elecon logo is trademarks of Elecon Engineering Company Limited In addition to Company data, data from market research agenci