Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q1 FY2019 Earnings Presentation
16 slides from Varroc Engineering's earnings presentation, Sep 5, 2018
Slide 1: Q1 FY19 Results Presentation
Q1 FY19 Results Presentation
Slide 2: Varroc Group Overview
Varroc Group Overview • Founded in 1988 in Aurangabad, India • Listed on BSE & NSE in July 2018 Leading Two primary businesses: tier-1 manufacturer and supplier to 1. Varroc Lighting Systems (“VLS”): global supplier of exterior lighting the Indian 2W and 3W OEMs systems to passenger car OEMs 2. Indi
Slide 3: Industry Trends in Q1 FY19
Industry Trends in Q1 FY19 • Global Passenger Vehicle production grew at an Global Passenger Cars Market Q1 Sales estimated rate of 3.7%YoY in Q1 +3.5% +5.2% +4.8% FY19 61,39,298 64,59,113 46,69,629 44,56,891 57,27,468 59,27,182 • Our Global Lighting Business (VLS) outperformed the Passenger Vehicle
Slide 4: Business Highlights: Q1 FY19
Business Highlights : Q1 FY19 • Revenue from Operations for Q1 FY19 up by 28.8% YoY# • EBITDA increased by 26.0% YoY* • Reported PAT for the quarter at Rs 1,004 Million • VLS successfully closed acquisition of SA-BA, a lighting company in Turkey, on 2nd July, 2018 • VLS on track to complete Brazil a
Slide 5: Varroc Group: Summary Key Financials
Varroc Group: Summary Key Financials Q1 FY19 (INR Mn) Growth Particulars Q1 FY 19 Q1 FY18 (Y-o-Y)/ Change Revenue from Operations 29270 24343 20.2% Revenue from operations (excl. Excise Duty & NA Interiors 29188 22658 28.8% Business) EBITDA - Reported* 2412 2210 9.1% EBITDA : like-for-like$ 2578 204
Slide 6: Varroc Group: Business Wise Performance
Varroc Group: Business Wise Performance Q1 FY19 (INR Mn) Q1 FY19 Q1 FY18 EBITDA # % EBITDA % EBITDA Adjusted Revenue Like-for- Like-for- Revenue EBITDA # Like-for- Revenue SBU Revenue Adjusted* EBITDA like like Revenue Adjusted* EBITDA Like-for-like like Growth YoY India Business 10,431 10,431 1,064
Slide 7: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) Q1 FY 2019, % (INR Mn) +28% 10,431 Bajaj 9,082 8,130 25.6% Honda 2.5% 49.9% Royal Enfield 4.8% Yamaha Q1 FY2018 Q1 FY2018 Q1 FY2019 Reported Net of Excise Reported 6.0% Mahindra & Mahindra 11.2% • Strong growth across
Slide 8: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q1 FY 19 Revenue: 1605 Mn INR Revenue (1) Q1 FY 18 Revenue: 1345 Mn INR VLS Production Revenue Split by Customer(2) (INR Mn) Q1 FY 2019, % +29% 12.5% Customer A 21.2% 17,494 17,412 Customer B 14,220 13,488 10.9% Customer
Slide 9: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) +5% 20 19 18.2 2.3 18 17 1.7 0.7 16.7 16 15.9 2.3 0.6 1.0 15 0.2 14.6 3.4 14 1.0 13 12 11 10 Q1 FY2018 Interior Plastics Q1 FY2018: Revenue impact RM impact - Employee Cost Overheads volume Other income Q1 FY2019: Start-up Costs not
Slide 10: R & D Updates
R & D Updates Global Lighting Business • Adaptive Driving Beam (ADB) technology developed by VLS: Headlamps communicate with onboard cameras and sensors to allow the customer to drive with high beams on permanently without glaring other road users. VLS also held a workshop to demonstrate technology
Slide 11: Construction Status – Brazil
Construction Status – Brazil Building Decorating/WIP Shop Floor Moulding 11
Slide 12: Construction Status – Czech Republic
Construction Status – Czech Republic Manufacturing facility expansion CTP Industrial Park Expansion Manufacturing facility expansion Engineering & Admin Building 12
Slide 13: Construction Status - Morocco
Construction Status - Morocco Building under construction Inside view of the work in progress Inside view Inside view of the work in progress 13
Slide 14: Construction Status – Halol, India
Construction Status – Halol, India Material entry gate work-in-progres Moulding M/C Installation Surface treatment-paint booth installation Surface treatment-hard coat installation 13
Slide 15: Business Outlook
Business Outlook • Indian 2W/3W market expected to maintain growth momentum • Halol, Gujarat plant to start commercial production in September 2018; will supply lamps for a leading Indian 2W OEM • Focused efforts for improving operating efficiencies in VLS Czech plant along with significant volume i
Slide 16: Thank You
Thank You