Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q1 FY24 Earnings Presentation
35 slides from Varroc Engineering's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter
Varroc Engineering Limited 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/2023-24/47 August 9, 2023 To, The Manager- Listing
Slide 2: Financial Results Q1 FY24
Financial Results Q1 FY24 9th Aug 2023 1
Slide 3: Disclaimer
Disclaimer 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 development, market position, expenditures,
Slide 4: Content
Content 1. Highlights 2. Industry Performance 3. Financials 4. New Business Win 5. Awards & CSR 6. Annexure: 1. About Varroc Engineering Confidential 3
Slide 5: Highlights Q1 FY24
Highlights Q1 FY24 1. Registered a strong YoY revenue growth of 10.4% with Revenue in Q1 FY24 at Rs. 18,057 million 2. EBITDA margin @ 10.0%, higher by 180 bps on YoY basis and 50 bps on QoQ basis 3. Lifetime business won in India from new orders in Q1 FY24 of Rs.9.6 billion 4. Revenue from supplyin
Slide 6: Automotive Production in India
Automotive Production in India 4.90 4.37 Units in million • Automotive sales are cyclical on quarterly basis with Q4 being Q-o-Q the strongest and Q1 being little sluggish. We saw similar trend in Q-o-Q for Q1 FY24. Other than 2W all the segment saw the Q1 FY24 similar trend. 2W growth driven by gro
Slide 7: Consolidated Financials of Continued Operations
Consolidated Financials of Continued Operations 18057 Rs. In Million Q1 FY24 Q1 FY23 YoY Q4 FY23 QoQ 10.0% 8.2% 9.5% Revenue* 18,057 16,352 10.4% 17,011 6.2% 17011 Adj. EBITDA 1,802 1,347 33.7% 1,613 11.7% 16352 EBITDA % 10.0% 8.2% 180 bps 9.5% 50 bps Reported PBT 652 -4 N.A. 411 58.6% PBT % 3.6% -
Slide 8: Revenue Breakdown for Q1FY24 for Continued Operations
Revenue Breakdown for Q1FY24 for Continued Operations Business Unit Segment Aftermarket, 9.4% Others, 3.1% IMES, 3.1% EBU, 22.1% 4 Wheeler, 25.4% Lighting, 22.5% 2&3 Wheeler, PBU, 30.6% 71.5% MBU, 12.4% Geography Customer Outhside India, 18.3% Bajaj, 41.6% Non- Bajaj, 58.4% India, 81.7% Confidential
Slide 9: New Lifetime Order Win in Q1FY24 is Rs. 9,552 million
New Lifetime Order Win in Q1FY24 is Rs. 9,552 million* Lifetime Business win of Rs.9,552 Million Lifetime Revenue win from ICE & EV Players Start of Production Rs. In Million 1075 11% FY 2024 5,776 FY 2025 Onwards 3,776 EV ICE 8477 89% Lifetime Revenue win from Bajaj and Other Customers Lifetime Rev
Slide 10: Awards & CSR
AWARDS & CSR Solid waste management and cleanliness drive Platinum Award in Manufacturing Category in 3rd CII National Technology Competition-2023 held on 29-Apr-23 9
Slide 11: Annexure 1: Varroc Corporate
Annexure 1: VARROC CORPORATE PRESENTATION
Slide 12: Vision Mission
Vision Mission Create safe, smart and sustainable Be the trendsetter in delivering highest value for future mobility solutions for everyone. money mobility solutions • Extend India Market leader position in 2W mobility, lighting, and driver assistance to the world • Double profitable growth by 2030
Slide 13: Values
Values Sincerity Humility Integrity Passion Self-Discipline To speak & act from To walk with everyone To do what is right To go distance against To make it all happen the heart all odds
Slide 14: About Us
About Us Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, 08 7000+ lighting, polymer, metallic, Countries Employees after-market and advanced safety solutions 36 Operating Manufacturing Facilities REVENUE USD 842 MILLION BU
Slide 15: Our Journey
Varroc’s Transformation into a Our Journey Global Auto Technology Group 2022 2019 Signed SPA with Plastic Omnium to divest 4W Lighting Operations in EU & America 2017 Acquired 74% stake in CarIQ, a leading Telematics Began localized production of 2W EV components in India 2011 Acquired 90% stake in
Slide 16: Our Global Footprint
Our Global Footprint Timisoara Targu Mures Changzhou (VTYC) Krakow Romania Chongqing (VTYC) Poland China Dortmund Germany Cambiano Tokyo Sumirago Japan Italy EUROPE ASIA Romania India Poland China Hanoi Vietnam Italy 08 7000+ Vietnam Germany Japan COUNTRIES EMPLOYEES Czech Republic Aurangabad Pune S
Slide 17: Global Business
Global Business With diversified product lines Business Division - Global 4W Business Division - India Electronics & Lighting O.I. Polymer Electrical-Electronics & Lighting Lighting Electronics 13 Facilities in India 10 Facilities in India 2 Manufacturing Facilities in China and 3 Manufacturing Faci
Slide 18: Technology for Two Wheelers
Technology for Two Wheelers Electronic Fuel Injection LED Headlamps, Mirrors for ICE vehicles and BS6 Safety Sustainability catalytic converters Traction motor and controller, Power assist ISG, and e- Connected Displays, TFT Drivetrain energy management and sensor Interfaces, Electrification systems
Slide 19: Technology for Four Wheelers
Technology for Four Wheelers ADAS, Driver Monitoring Systems, Surround View Systems, LED Headlamps & LCUs, Adaptive Front Safety Lighting Systems Mirrors Safety Signature Lighting, Interior Systems, In-Cabin Sensing, Personalization Personalization Interior Mood Lighting, Center Consoles FOTA in Tel
Slide 20: Product Portfolio Enhancement Living our vision
Product Portfolio Enhancement Living our vision 1990 2010 2020 2030 • Proprietary products ELECTRICAL - ELECTRONICS & ELECTRICAL - ELECTRONICS ELECTRICAL - ELECTRONICS LIGHTING with continuous focus & LIGHTING & LIGHTING ADAS, DMS on innovative, cost competitive designs Lighting Catalytic Converter
Slide 21: Our 2W and 3W EV Capabilities
Our 2W and 3W EV Capabilities Charger • Locally designed, developed Telematics and manufactured • Fully IoT enabled machines BMS • Complete vertical integration DC-DC converter for Electronic Manufacturing • Motor Dyno Testing System for testing 2W and 3W EV Traction motor controller Traction motor/
Slide 22: Comprehensive Solution Provider to 2W OEMs in India
Comprehensive Solution Provider to 2W OEMs in India Diversified Portfolio Catering to 2W and 3W Segments Illuminated Handlebar Switch Mirror Assembly Adjustable Lever- holder Assembly Instrument Cluster/ USB Charger/ Seat Assembly Integrated Throttle Position Sensor/ Handlebar Assembly Switch Capaci
Slide 23: Product Portfolio for PV
Product Portfolio for PV Broad Portfolio of Lighting, Metallic, Polymer and Advanced Safety Solutions End to end capabilities across design, Engineering, testing/validation, tooling, manufacturing and delivery Polymer Lighting Metallic Electronics Roof Rails ADAS and DMS Gears Instrument Panel Conso
Slide 24: Unlocking Synergies across Businesses
Unlocking Synergies across Businesses Varroc's unique positioning as a systems supplier is strengthened through collaboration across its businesses. Traction Motor 4W ORVM Mirror with Gearbox Polymer + Electrical Electrical + Metallic Cross Mirror and Tailgate Business Seat with Signal Lighting Poly
Slide 25: Unlocking Synergies across Segments
Unlocking Synergies across Segments Varroc Vision Processing Platform one platform – various products and market segments VCAM-Air - Dual ADAS Systems Lev Dashboard Camera 1 – 2 From Mono Camera to Sensor HW: Ambarella CV22 SoC After Market- OEM Segment Fusion Platform Fleet Segment SW: Front Camera
Slide 26: Excelling as a Systems Supplier
Excelling as a Systems Supplier Components • Customer CTQs • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM Motor • Material and component data Base to speed up the design Sub-Systems • Customer requirements and CTQs • Sub-system level CTQs
Slide 27: Capabilities: Product Development
Capabilities: Product Development End-to-end capabilities across design, engineering, testing/validation, tooling, manufacturing and delivery Testing and Validation Project and Program Facilities CAE and Simulation Management Structural & Vibration Functional Performance DFSS/DMAIC Product Life Cycl
Slide 28: Capabilities: Manufacturing
Capabilities: Manufacturing ELECTRICAL - ELECTRONICS LIGHTING METALLIC POLYMER • SMT Lines for Electronics • High Vacuum Metallizing • Forging (Cold, Warm and Hot) • Plastic Injection Molding assemblies • Paint shop • Hard Coating and UV curing • Heat Treatment • Winding Machines for • Foam Molding
Slide 29: Our Customers
Our Customers TWO/THREE WHEELERS PASSENGER CARS COMMERCIAL VEHICLES EARTH MOVERS & OFF ROADS
Slide 30: Our Commitment
Our Commitment Creating meaningful differences to the society and environment Environmental Nurturing Future Social Impact Programs Sports Talent Programs • Kham River Eco Restoration Project (1.5 km) • Varroc Vengsarkar Cricket Academy (VVCA) • Learn and Earn Program at Varroc Academy • Solar & Win
Slide 31: Our Key Strengths
Our Key Strengths Continuous Focus on R&D Strong Competitive Long Standing, Comprehensive Low-Cost Capabilities Enhancing Position in a Growing Growing Customer Solution Provider Manufacturing Portfolio Market Segment Relationships Footprint • End-to-end services across design, • Developing innovati
Slide 32: Board & Leadership Team
Board & Leadership Team Independent Directors Arjun Jain Business Division Vidyadhar Limaye Head India and President –Polymer Business Marc Szulewicz Whole-time Director • Total Experience: ~34 years Ex-General Manager, • Previously associated with IAC • Total Experience: ~10 years Foreign equipment
Slide 33: Thank You
la Vorroc EXCELLENCE
Slide 34: Press Release
Press Release Varroc Engineering Limited delivers revenue growth ahead of Industry with 34% growth in EBITDA and significantly improved PBT. • Consolidated revenue from operations was ₹17,925 million in Q1 FY24, registering a growth of 10.0% on YoY basis • Consolidated EBITDA margins in Q1 FY24 were
Slide 35: Press Release: About Varroc Engineering Ltd.
Press Release About Varroc Engineering Ltd. Varroc Engineering Ltd is a global tier-1 automotive component group. It was incorporated in 1988. The group manufactures and supplies electricals-electronics, polymers, metallics and exterior lighting systems to leading OEM’s with end-to-end capabilities