TVS Srichakra Limited has informed the Exchange about Investor Presentation
TVS "'YEUNDGN/P
REF:TSL:SEC:2022! ).)-it
August 10, 2022
National Stock Exchange of India Ltd., 5th Floor Exchange Plaza Sandra (E), Mumbai - 400051
Scrip Code: TVSSRICHAK by NEAPS
Dear Sirs
SSE Limited P J Towers Dalal Street Fort, Mumbai 400 001
Scrip Code: 509243 by Listing Centre
Sub: Investor Presentation on the Operations and Financial Results for the quarter ended
June 30, 2022.
Pursuant to Regulation 30 of SESI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith investor presentation for the quarter ended June 30, 2022.
The above information is also being uploaded on the Company's website.
Kindly take the above on record.
Thanking you
Yours faithfully For TVS SRICHAKRA LIMITED
k· NI~v""""\
K Narayanan General Mana Compliance 0
- Secretarial &
TVS Srichakra Limited GIN: L25111TN1982PLG009414 Regd. Office: lVS Building, 7-B West Veli Street, Madurai 625 001. Tel: +91 04522356400. Fax: +91 04522443466 I Website: www.tvseurogrip.com Manufacturing Unit: Veliaripatti, Melur Taluk, Madurai - 625 122. Tel: +91 452 2443300
••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
.r •••••••••
TVS Srichakra Ltd.
1st Quarter FY23 – Standalone Financials
Investor Presentation
10th August 2022
Disclaimer
This presentation has been prepared by TVS Srichakra Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person.
This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. By reviewing this presentation, you agree to be bound by the trailing restrictions regarding the information disclosed in these materials. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the management with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements, as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years.
The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, ability of Company to manage its operations, government policies, regulations etc. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation.
Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, investment or any other advice. The Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person ,any placement agent, or any other persons that may participate in the offering of any securities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from the use of this presentation or its contents or otherwise arising in connection therewith, for any purpose whatsoever. This presentation and its contents is only meant for consumption of its recipient, and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person.
This presentation may include certain industry data and projections that have been obtained from industry publications and surveys. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance that the information is accurate or complete. Neither the Company nor any of its advisors or representatives have independently verified any of the data from third-party sources or ascertained the underlying economic assumptions relied upon therein. All industry data and projections contained in this presentation are based on data obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct. For the reasons mentioned above, you should not rely in any way on any of the projections contained in this presentation for any purpose
This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, in India, or elsewhere, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or any such related commitment. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India, or under any applicable law of any other Country.
Confidential
2
Contents
1. About the Group
2. About the Company
3. Q1 Standalone Financials
Slide No. 4 - 6
7 - 14
15 - 18
3
About The Group
4
The Group
TVS Srichakra is a member of the TVS Mobility group
5
About the Group
Manufacturing
TVS Srichakra
Sundaram Industries
TVS ARGOMM
SI Air Springs
Global Supply Chain Solutions
Aftermarket Distribution & Services Platform
Automobile Distribution
TVS Supply Chain Solutions
TVS Automobile Solutions
TVS Mobility Pvt. Ltd.
The Associated Auto Parts
TVS Lanka
TVS Auto Bangladesh
• The Group has a heritage of over 100 years
• The Group employs over 25,000 people, spread over 6 continents and 25 countries
6
About The Company
7
About the Company
2 State of art Manufacturing Facilities
1000+ Product range
Years since inception in 1982
Depots across India
40 38 86 Export to Countries
Incorporated in 1982 and headquartered in Madurai, Tamil Nadu
• Makers of “TVS Eurogrip” and “TVS Tyres” brand of tyres • One of India’s leading manufacturers and exporters of Two, Three-Wheeler tyres and Off-Highway tyres. • • Manufacturing facilities in Madurai (Tamil Nadu) and Rudrapur (Uttarakhand) • Design Centre in Milan, Italy supporting the R&D centre in Madurai • Tyres tested in Indian, European, and Japanese road conditions. • Products available in over 86 countries •
In India, the company enjoys a significant market share in the OEM and Replacement markets
8
Corporate Journey
2019
Launch of Design Centre in Milan
2018
9
Building The Brand
10
Growing International Presence
6 Continents
86 Countries
380+ Distributors
* Countries marked in blue represent our current global presence
11
Global R&D Capabilities
Designed Globally, Manufactured in India, Tested & Sold Worldwide
Design Centre at Italy, Europe
State of the art R&D Centre and proving grounds in Madurai
International experts for technology, product and process development
Jury of global test riders
Advanced tyre models for predictive
technology
International expertise in material science
research
12
OEM Relationships
MAJOR Tyre supplier to 2 & 3 wheeler manufacturers
Major 2-wheeler manufacturing customers
13
Growing the Aftermarket
PRODUCT RANGE
DISTRIBUTION
FOCUS ON DIGITALIZATION
RETAIL VISIBILITY & ACTIVATION
BRAND BUILDING
Wide Product Range in category
Presence in 480+ Districts with 500+ Distributors
Major 2-wheeler manufacturing customers
Entire channel & distribution system automated for better customer service
Reach Out Campaigns & Visibility for Retailers & Mechanics
Focused Brand Campaigns
14
Q1 FY23 Standalone Financials
15
1st Quarter Standalone Results
16
Q1 FY23Q4 FY22Q1 FY22 Total Income 715.39 649.27 481.96 Expenses Raw Material Cost (including purchase of stock in trade and changes in inventories) 439.24 402.02 265.55 Employee expenses 72.29 66.86 70.19 Other expenses 173.59 142.00 119.25 EBITDA 30.28 38.39 26.97 EBITDA Margin (%) 4.2%5.9%5.6% Financial costs 8.85 8.86 6.63 Depreciation and amortisation expenses 21.12 15.84 20.05 Profit / (Loss) before exceptional items and Tax 0.31 13.68 0.29 Exceptional Items (VRS Expenses) 5.06 2.77 - Profit / (Loss) before Tax -4.75 10.91 0.29 Tax Expense Current Tax - 1.89 0.07 Deferred Tax -1.20 1.91 - Net Profit / (Loss) after tax for the period (5-6) -3.56 7.11 0.22 Standalone Results(Figs. In Rs. Crores) Quarter ended 1st Quarter Standalone Results - Highlights
1.
Income grew – quarter on quarter as well as year on year
2. Raw Material costs remained elevated
• •
High raw material costs not fully passed on to customers impacting operating margins Internal cost mitigation actions continue to be taken
3.
Increase in Other Expenses
1. Q1 FY23 figure includes an increased spend on advertising and promotion (5.9% of sales)
2. Expenses were front loaded into Q1, in line with the company’s sponsorship of CSK in the IPL 3. These expenses are expected to be in the range
of 3% of sales on an annualized basis
17
Change in Total Income10%48% Q1 FY23 vsQ4 FY22 Q1 FY23 vsQ1 FY22 ParticularQ1 FY23Q4 FY22Q1 FY22Raw Material/Income61.4%61.9%55.1%ParticularQuarter endedQ1 FY23Q4 FY22Q1 FY22Other Expenses/Income24.3%21.9%24.7%Change in Other Expenses22%46%ParticularQuarter endedParticular Q1 FY23 vsQ4 FY22 Q1 FY23 vsQ1 FY22 1st Quarter Standalone Results - Highlights
4.
Exceptional Expenses
•
•
•
The company instituted a VRS scheme for workmen at its Madurai plant, starting in Q4 of FY22
Q1 of FY23 saw an exceptional spend of Rs. 5.06 on this count
The company believes that the scheme will be of benefit in the long term
18
Thank You
19