Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q4 FY21 Earnings Presentation
17 slides from Varroc Engineering's earnings presentation, Jun 5, 2021
Slide 1: Exchange filing cover letter: Press Release and Investor Presentation
Varroc Engineering Ltd. Regd. & Corp. Office L‐4, MIDC, Industrial Area Tel + 91 240 6653700 email: [email protected] Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2021-22/10 June 4, 2021 To, The Manager- Listing The M
Slide 2: Press Release
Varroc Engineering Limited L-4, MIDC, Industrial Area Waluj, Aurangabad 431 136 Maharashtra, India CIN: U28920MH1988PLC047335 | Tel + 91 240 6653700 | www.varroc.com Press Release • Revenue from Operations for the quarter increased by 32% YoY to ₹ 36.2 billion; India business revenue growth at 44.6%
Slide 3: Press Release (continued)
o increase in raw material costs due to commodity price increases in semi-conductors, resin etc not offset by corresponding increases in selling prices o exceptional items (premium freight debited by a customer etc) China JV • China JV Revenue recovered to normal levels in comparison to Q4 FY20 whic
Slide 4: Financial Results Q4 FY21
Click to edit Master title style Varroc Engineering Limited Financial Results Q4 FY21 ::4th June 2021::
Slide 5: Disclaimers
Disclaimers Click to edit Master title style This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business developme
Slide 6: Industry Trends in Q4 FY21
Industry Trends in Q4 FY21 Click to edit Master title style • Passenger Vehicle volumes in Global Passenger Vehicle Market Production +69.8% Q4 FY21 declined albeit on a -3.3% 5.54m lower base (fortnight shutdown 4.71m in March 20); mainly impacted 4.55m -4.5% by severe semi-conductor 3.78m 3.61m sh
Slide 7: Business Highlights: Q4 FY21
Business Highlights: Q4 FY21 • Click to edit Master title style Revenue from operations for the quarter increased by 32% YoY to ₹ 36.2 Billion • Consolidated EBITDA for the quarter at ₹ 1,275 Million increased by 11% YoY • India Business: Revenue increased by 44.6% YoY, ahead of industry growth; EBI
Slide 8: Varroc Group: Financial Performance
Varroc Group: Financial Performance Click to edit Master title style Particulars Q4 FY21 Q4 FY20 Growth (Y-o-Y) FY21 FY20 ₹ million Growth (Y-o-Y) Revenue from Operations - Reported 36,193 27,447 32% 1,13,028 1,11,219 2% Other income - Operating 103 479 634 926 Other income - Non operating 217 8 637
Slide 9: Varroc Group: Business Wise Performance Q4 FY21
Varroc Group: Business Wise Performance Q4 FY21 Click to edit Master title style ₹ million Q4 FY21 Q4 FY20 Revenue Change SBU Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA YoY India Business 12,249 1,456 11.9% 8,471 698 8.2% 44.6% VLS 23,513 (171) -0.7% 18,789 433 2.3% 25.1% Others (IMES) 577 (11)
Slide 10: VLS: QoQ performance by plant
VLS: QoQ performance by plant Region Click to edit Master title style Production Revenue € million except otherwise mentioned Q-o-Q Change % Q3 FY21 Q4 FY21 North America 41 33 -19.3% Czech 152 146 -3.6% Poland 13 16 29.9% Established plants* production Morocco 12 15 23.0% India 6 7 16.2% revenue im
Slide 11: Semi-conductor shortage: OEM Reactions and Impact on VLS established plants
Semi-conductor shortage & other reasons – OEM Reactions and Impact on VLS established plants Click to edit Master title style Customer wise Plant shutdown days January February March VLS Region 2021 2021 2021 Impact details Average monthly production Revenue (€ mn) Average monthly production Revenue
Slide 12: Revenue by Customers and Order Wins
Revenue by Customers and Order Wins Click to edit Master title style India Revenue Split by Customer(1) Q4 FY 21 % VLS Revenue Split by Customer (2) Q4 FY 21, % Revenue in Europe 13.9% Customer A Bajaj increased by 13% YoY 32.3% 26.4% Customer B Honda Royal Enfield 15.8% Customer C Revenue in Americ
Slide 13: Varroc Group: Business Wise Performance FY21
Varroc Group: Business Wise Performance FY21 Click to edit Master title style ₹ million FY21 FY20 Revenue SBU Change YoY Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA India Business 36,466 4,052 11.1% 38,105 3,917 10.3% -4.3% VLS 75,514 722 1.0% 71,692 5,101 7.1% 5.3% Others (IMES) 1,918 (171) -8.
Slide 14: Debt Situation Status Update and Outlook
Debt Situation Status Update and Outlook for FY21 Click to edit Master title style ₹ Billion 10.0 investments in Intangibles , 0.5 D/E 8.0 Capex paid, 1.8 34.1 6.0 32 Working capital 4.0 change, 4.6 Forecast 30.6 29 0.8x 9.4 Actual ~0.8x 2.0 Forecast 27.3 26 24.7 Op. loss bef. WC chg. + Actual tax p
Slide 15: Launched Project RACE to bring VLS EBIT levels in line with benchmarks
Launched Project RACE to bring VLS EBIT levels in line with best-in-class industry benchmarks Click to edit Master title style Industry and internal challenges leading to sub-optimal EBIT in VLS: As widely known, our industry is going through one of the toughest times with significant issues across
Slide 16: Update on Current Business Environment
Update on Current Business Environment Click to edit Master title style • Current Situation in India and VLS • India revenue impacted negatively by customer shutdowns in May and June • April and May– Semiconductor issue impacting Europe and North America volumes of key customers • Soft schedules as
Slide 17: Varroc Group
Click to edit Master title style Confidential - Varroc Group 14