Balkrishna Industries Limited has informed the Exchange about Investor Presentation
BALKRISHNA INDUSTRIES LTD
Investor Presentation
May ‘22
Safe Harbor
GROWING TOGETHER
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the tire industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
2
Performance Snapshot – Q4FY22
GROWING TOGETHER
Sales Volume
77,119 MT
+13% YoY
Revenue
Rs. 2,432 Cr
+39% YoY
EBITDA
Rs. 576 Cr
+3% YoY
Net Profit
Rs. 374 cr
+1% YoY
Declared Final Dividend of Rs. 4/- per equity share Total Dividend for FY22 will be Rs. 28/- per equity share including special dividend of Rs. 12/- per equity share
All Figures on Standalone basis
3
Management Commentary
GROWING TOGETHER
The geo-political situation has aggravated supply chain problems. This has increased both the prices and availability of raw materials. Similarly, Logistics and freight costs have continued to remain at elevated levels
End user markets continue to remain strong inspite of inflationary trends. The OHT industry continues to see higher offtake on account of healthy demand across mining and agriculture markets; BKT brand is continuing to gain market share
The Board of Directors have decided keep the capex investment of Rs. 350cr announced at Old waluj Plant in November 2021, on hold. The operations at this plant will continue in order to have unhindered production and cater to the strong demand and quicker production schedule demanded by end customers
Sales Volume guidance for FY23 stands at 320,000 – 330,000 MT
4
Capex Status
GROWING TOGETHER
Brownfield Tire Plant at Bhuj
▪ Commissioned the 50,000 MTPA brownfield tire plant at Bhuj ▪ Expect complete ramp-up in production in H2FY23 ▪ Project Capex Cost - Rs. 800cr
Carbon Black and Captive Power Plant
▪ Expect commissioning for 55,000 MTPA Carbon Black capacity along with Power Plant in the next 2-3 months ▪ The Project of advanced carbon material for 30,000 MTPA will be commissioned in H2FY23 ▪ Project Capex cost - Rs. 650cr
Modernization, Automation and Technology Upgradation
▪ Capex on Track ▪ Expect completion by end H1FY23 ▪ Project Capex cost - Rs. 450cr
The achievable capacity by end of FY23 will be 360,000 MT p.a
5
Sales Volume Profile – FY22
GROWING TOGETHER
In MT
1,99,213
2,11,261
+10%
2,01,760
2,27,131
2,88,795
FY18
FY19
FY20
FY21
FY22
All Figures on Standalone basis
FY23 Guidance : 320,000 MT – 330,000 MT
6
Volume Profile
GROWING TOGETHER
Segmental Sales
Channel Sales
Geographical Sales
3.3%
3.3%
31.1%
27.7%
11.2%
17.6%
FY22
FY22
FY22
53.9%
65.5%
69.1%
17.3%
Agriculture
OTR
Others
Replacement
OEM
Others
Europe
Americas
India
RoW
All Figures on Standalone basis
7
Profit & Loss
GROWING TOGETHER
Particulars (Rs in Cr)
Q4FY22
Q4FY21
Sales (MT)
77,119
68,003
YoY
13%
Q3FY22
FY22
FY21
70,320
288,795
2,27,131
Revenue from Operations
Realized Gain on Forex
2,374
58
1,746
4
Total Income
2,432
1,750
39%
Raw Material
(Inc) / Dec in Stock
Employee Expenses
Other Expenses
EBITDA Margin
Other Income
Unrealized Gain / (Loss)
Interest & Finance
Depreciation
1,144
-42
90
663
576
776
-54
88
383
558
23.7%
31.9%
EBITDA
52
-21
2
117
488
115
374
20
23
2
103
495
122
372
Tax
Profit Before Tax
Profit After Tax
3%
-1%
1%
2,030
49
2,079
1,015
-49
97
510
507
24.4%
31
17
2
115
439
110
329
PAT Margin
15.4%
21.3%
15.8%
All Figures on Standalone basis
8,267
152
8,419
4,034
-255
380
2,078
2,182
25.9%
185
39
8
444
1,954
544
1,411
16.8%
5,758
-18
5,740
2,452
-149
326
1,302
1,810
31.5%
119
18
10
406
1,531
376
1,155
20.1%
YoY
27%
47%
21%
28%
22%
8
Net Forex Gain/(Loss)
GROWING TOGETHER
Particulars (Rs in Cr)
Q4FY22
Q4FY21
FY22
FY21
Foreign Exchange Fluctuation on Sales
Foreign Exchange Fluctuation on Others
Total Realised Gain/(Loss) – A
Total Unrealized Gain/(Loss) - B
Net Forex Gain/(Loss) = A + B
58
19
77
-21
56
4
12
16
23
38
152
55
207
39
246
-18
42
24
18
42
All Figures on Standalone basis
9
Balance Sheet
Particulars (Rs. Cr.)
ASSETS
Non-current assets
Property, Plant and Equipment
Capital work-in-progress
Investment Property
Other Tangible Assets
Financial Assets
(i) Investments
(ii) Other Financial Assets
Income Tax Assets (Net)
Other non-current assets
Current assets
Inventories
Financial Assets
(i)Investments
(ii) Trade Receivables
(iii) Cash and cash equivalents
(iv) Bank Balances other than (iii) above
(v) Loans
(vi) Others
Other Current Assets
TOTAL
All Figures on Standalone basis
Mar’22
Mar’21
Particulars (Rs. Cr.)
Mar’22
Mar’21
GROWING TOGETHER
7,054
3,906
1,258
79
0
5,652
3,247
856
86
1
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital
Other Equity
Non-Current Liabilities
Financial Liabilities
1,213
1,026
(i)Borrowings
83
8
506
3,803
1,639
685
1,098
29
6
3
65
277
10,857
18
70
348
2,389
909
392
730
34
20
4
35
264
8,040
(i)Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non-Current Liabilities
Current liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other Financial Liabilities
Other Current Liabilities
Provisions
TOTAL
6,925
39
6,886
6,007
39
5,969
807
262
501
0
24
251
31
1
0
25
204
33
3,126
1,771
1,942
808
120
251
4
893
633
74
165
5
10,857
8,040
10
Cash Flow
Particulars (Rs. Cr.)
Operating profit before working capital changes
Changes in working capital
Cash generated from operations
Direct taxes paid (net of refund) and others
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Change in cash and cash equivalents
GROWING TOGETHER
FY22
2,163
-825
1,339
-457
881
-1889
1,003
-5
FY21
1,789
-77
1,712
-349
1,363
-1,159
-194
10
All Figures on Standalone basis
11
Resilient Business Model
GROWING TOGETHER
Net Cash on Long Term Borrowings
Gross Cash and Cash equivalents of Rs. 1,932 Cr as on 31st March, 2022
Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires
Self Reliant in Carbon Black along with Multiple sourcing arrangements for other Raw Materials
Ongoing Capex
BKT has built a resilient business model and is confident to withstand the near-term challenges to emerge stronger with a higher global market share
12
Strategy at BKT
GROWING TOGETHER
13
Our Focus Area
GROWING TOGETHER
Expand reach within existing Sales
Channels as well increase footprint
within replacement segment and OEMs
Expand the product portfolio by adding
Reach 100% utilization levels at Bhuj
large sized tires and strengthen
relationship with Customer base
Plant in the next few years
Market Reach
+
Penetrate Americas
+
Product portfolio expansion
+
Indian Markets
+
Utilization
Increase share of business in USA
markets by increasing supplies from
India
Strengthen our distribution channels
within Indian Markets
14
To Serve Global OEMs…
GROWING TOGETHER
The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only
15
With India Production and Global Sales
GROWING TOGETHER
Waluj, Maharashtra
Bhiwadi, Rajasthan
Chopanki, Rajasthan
Bhuj, Gujarat
Mould plant, Dombivali
India Our Manufacturing base
Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
16
Balkrishna Industries – A Snapshot
GROWING TOGETHER
01
02
Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market
Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 2,700 SKUs
03
Capacities Achievable Capacity at end of FY23 will be 360,000 M.T.P.A.
04
05
06
Global reach Sales to over 160 countries through Distribution network in Americas, Europe, India and Rest of the World
Strong OEM Presence Strong Partnerships with Global OEM’s a testimony of our Brand Acceptance & Performance
Experienced Management Team Experienced Management Teams across business divisions and verticals
17
Our Strong Evolution
GROWING TOGETHER
1987
1995
2002
2003
1st Plant in Aurangabad inaugurated by our Founder Chairman, Late Mr. M P Poddar
Started Production of Off-Highway Tires
Plant in Bhiwadi, Rajasthan
Production of ATV, Gardening and earthmoving Tires
2011
2009
2008
2006
2004
Rebranding of BKT
Crosses Rs. 1,000 cr Turnover
Launch of Earthmax Tires
Plant in Chopanki, Rajasthan
Launch of Radial Agrimax Tires
2015
2018
2020
2021
2022
Started Greenfield Plant in Bhuj, Gujarat
Announced Capex at Waluj and Bhuj
Self Reliant on Carbon Black with the completion of Phase 2 at Bhuj in Gujarat
Commercialized new replacement plant at Waluj (Waluj 2) with capacity of 30,000 MTPA
Commercialized brownfield tire plant at Bhuj with capacity of 50,000 MTPA
India’s Largest Off-Highway Tire Manufacturer
18
BKT… at the forefront of Sustainability
GROWING TOGETHER
✓ Part of electricity needs of the North India plants are being met
by green energy generated through our own wind and solar
projects
✓ In Bhuj, the Company’s largest production site, the company has
✓ Planted over 100,000 trees
✓ Created two large water reservoirs and
✓ Set up a co-generation plant for self-efficiency
‘Sustainable Business Operations’ is core to our Business ethos
19
BKT – A Strong Global Brand from INDIA
GROWING TOGETHER
20
Strengthening BKT Brand : Americas
GROWING TOGETHER
BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its fleet of Monster Trucks – Monster Jam is a top sporting event in America
21
Strengthening BKT Brand : Canada
GROWING TOGETHER
BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup
22
Strengthening BKT Brand: Spain
GROWING TOGETHER
BKT is the Official Global Partner for the Spanish Football League “La Liga”
23
Strengthening BKT Brand: Italy
GROWING TOGETHER
BKT is the Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT”
24
Strengthening BKT Brand: France, Europe
GROWING TOGETHER
BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France
25
Strengthening BKT Brand: France, Europe
GROWING TOGETHER
BKT Is Official Tire Supplier for Rugby World Cup France 2023
26
Strengthening BKT Brand : EUROPE
GROWING TOGETHER
Premium Partner of EUROLEAGUE BASKETBALL
27
Strengthening BKT Brand : Tractor of the year (TotY) - EUROPE
GROWING TOGETHER
Team of 26 expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’
28
Strengthening BKT Brand : Australia
GROWING TOGETHER
BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE)
29
Strengthening BKT Brand : India
GROWING TOGETHER
The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only
30
Official Partner of Teams in the Cricket T20 League for Season 14
Strengthening BKT Brand : India
GROWING TOGETHER
Partnership with Teams in the Indian Football League
31
Strengthening BKT Brand : India
GROWING TOGETHER
Ranveer Singh is now the Brand Ambassador of BKT
32
Thank You
Company
Investor Relations Advisor
Balkrishna Industries Ltd. CIN - L99999MH1961PLC012185 Mr. M S Bajaj President (Commercial) & CFO msbajaj@bkt-tires.com www.bkt-tires.com
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shogun Jain shogun.jain@sgapl.net +91 77383 77756 www.sgapl.net
All images, texts and graphics contained in this document are the copyright of BKT. Permission to print hard copies of this material and to share it with interested people is granted unless otherwise provided by the Author of the document. It is forbidden to extract parts of the presentation without the express consent of the author. Balkrishna Industries Limited (BKT) cannot be held responsible for any incorrect data contained in this document. Any other form of reproduction, electronic or otherwise, as well as the application of any changes, partially or entirely, to images, texts, graphs and data is strictly prohibited without prior written permission from BKT. Balkrishna Industries Limited (BKT) reserves itself the right to alter any details contained in the document without prior notice.