Rolex Rings Limited has informed the Exchange about Investor Presentation
Rolex Rings Limited Corporate presentation and update on earnings for Q1FY23
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Rolex Rings Ltd (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 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
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About our Company
Company Overview | Introduction
Market Leadership Position
4.7 Mn MTPA Installed forging capacity of India's forging industry
5th largest Forging capacity in India
80 customers across ~20 countries
One of the key supplier of Bearing Rings in India and supplier to most of the leading bearing companies
Tier-I supplier to global auto companies and some auto OEMs across segments including 2W,PV, CV, OHV & EV
Manufacturing Capabilities
34+ Years of experience
22 Forging lines with a Combined installed capacity of 1,44,750 tonnes per annum
532 Spindles with a Combined installed capacity of 70 Million Parts per annum
Diverse Product Portfolio
Manufacturing infrastructure includes combination of high-speed hot formers from Sakamura & Hatebur.
lines Existing Machine consist of spindles from DMG, FUJI, ACE, TSUGAMI, Hyundai, Mazak, Muratec
Bearing Rings
Automotive Components
Well Qualified & Accredited Team
1,846 Full-time employees 729 Contractual employees
• Founders with experience of over 40 years • Supported by professional management team with
capabilities across various domains
64%
• Award received for new product development
52%
X 3
X 4
X 1
X 1
Robust Financial Performance
₹ 10,167 mn Revenue from operations (FY22)
₹ 2,403 mn EBITDA (FY22)
~58% Revenue from Exports (FY22)**
~24% RONW (FY22)*
Revenue (INR mn)
₹ 1,319 mn PAT (FY22)
Revenue Contribution
0.37 Net Debt: Equity (FY22)*
EBITDA (INR mn)
Product Portfolio suitable for a wide range of end-user industries such as automotive (PV, CV, 2W, 3W, tractor), railways, industrial infrastructure, renewable energy etc
FY22
Note : Return on Net Worth = Profit After Tax / Total Equity .
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Bearings industry | $50bn sector globally, with India expected to show robust growth
Global bearing industry
Indian bearings industry is expected to show healthy growth going forward
Global Split by Segment (%)
Domestic Bearings Market (₹ Cr)
CAGR: +9%-11% FY2021-FY2025e
CAGR: +10.1% FY2013-FY2019
$50bn
Size of the Global Bearings Market (CY2019)
•
localization
Increasing in industry bearings Indian (currently 40% imports), will help domestic suppliers of components for bearings;
• Demand for domestic bearing components (rollers, rings) is expected to grow at a faster rate (~CAGR of 10-12%) than the bearings industry
underlying
~80% of domestic market share with #5 players
Domestic market for forged bearing rings is ~ ₹ 11,000mn
₹ mn
supplies to most of the leading bearing manufacturers domestically
Source : Indian Bearings Industry – Industry Revenue to witness a smart recovery in FY 2022
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Comprehensive product portfolio | across bearing rings and Automotive components
Bearing Rings
Automotive Components
One of the key manufacturers of Bearing Rings in India focused on Hot Rolled and machined bearing rings
Customers Caters to most leading bearing companies in India;
Product portfolio includes wheel hubs, shafts and spindles and gears amongst others
Comprehensive product range
Till date, Rolex Rings has offered a diverse range ofhot forged and machined alloy steel bearing rings
0.01
Weight Kg
163
25
Diameter (mm)
900
Break-up of revenue from sale of products (FY22)
Suitable for wide range of end-user industries Suitable for Automotive, railways, industrial infrastructure, renewable energy, among others
Capabilities to cater to large rings requirements Higher value-added products with relatively lower competitive intensity
Customers Tier-I suppliers to global auto OEMs across segments including 2W,PV, CV, OHV and EV
Product Portfolio includes a wide range of bearing rings, parts of gear box and automotive components
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Revenue mix by end-user industries
Revenues from operations (excluding scrap sales and other operating income)
Strategically Located
Locational advantage to serve marquee clientele
Proximity to key customers
Key Ports
Key Cities
Upcoming solar project (Taluka Muli, Gujarat)
Windmills
(present across 3 locations in Gujarat)
Mundra
Ahmedabad
Vadodara
Rajkot
Pipavav
3 Manufacturing Units at Rajkot, Gujarat
Unit I : Forging, Heat Treatment and Shot Blasting
Unit 2 : Forging, Heat Treatment, Shot blasting, cold rolling, Machining, Quality control & testing, Packing and dispatch
Unit 3 : Tool & die making, shot blasting, machining, quality control and testing, finished good warehouse , packing and dispatch
• Rajkot is ~250 km from Mundra and Pipavav ports and
700 km from Mumbai port
• Location at Rajkot helps the Company cater to access the various automotive clusters in North India, West India and South India
• Leverage the presence of smaller machining units in Rajkot which the company opportunistically uses for pre-machining;
• Presence of trained manpower
Gujarat & Maharashtra
• The company owns parcels ofland for the purposes of setting up a solar plant at Taluka Muli (Gujarat) and for operation of windmills at Taluka Vanku (Gujarat)
• Operational windmills are situated at Bhogat and Lamba
sites (Gujarat)
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State-of-the-art manufacturing facilities
3 manufacturing units located at Rajkot, with integrated forging, machining and heat treatment facilities
Investments in Renewable energy to help keep power cost in check Windmills with an installed capacity of 8.75 MW; solar with an installed capacity of 1.58MW; in the process of expanding solar capacity by ~16 MW
Unutilized land area which will help future expansion Unutilized land area of 32,071.44 square metres at Rajkot and 691,312 square metres of land in Taluka Gondal (Gujarat).
Forging Infrastructure
Machining Infrastructure
● 22 forging lines. Combined installed capacity of 1,44,750 MTPA ● Includes high-speed hot formers from Sakamura and Hatebur; vertical forging lines from Manyo, Mistubishi, SMS Meer, Enomoto and Eumocoand conventional forging lines integrated with induction heating furnaces
● 528 spindles with a combined installed capacity of 69 million parts per
annum
● Machines sourced from global manufacturers like DMG, FUJI, ACE, TSUGAMI, Hyundai, Mazak, Muratec and domestic CNC turning machines
HM 75XL
HBP 120 SS
HM 35
In-house tool making
● In-house tool making done through CNC machine programming with relevant 2D drawing, 3D model & other machines
Machining
Capabilities
Tool Design Room
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Robust forging infrastructure in place
Details of forging lines including capacity and utilization
Sr. No.
Category
Line
No. of Lines
AchievableAnnual Capacity
1
2
3
4
5
6
7
8
9
10
11
Conventional
Vertical Forging Lines
Conventional
SMS-MEER
Enomoto Press
Eumoco
Manyo
Mitshubishi
Sakamura 160 Hot Former High Speed
Sakamura 120 Hot Former High Speed
High-Speed Hot Formers
Hatebur-HM75 Hot Former High Speed
Hatebur-HM35 Hot Former High Speed
Sakamura HFW-1000
Total
6
1
1
1
6
2
1
1
1
1
1
22
11,250
9,000
6,250
2,250
25,000
8,750
17,500
12,500
18,750
12,500
18,750
144,750
Hatebur HM 75XL
Sakamura HBP 120 SS
Sakamura HBP 160
Sakamura HFW 1000
Hatebur HM 35
Mitsubishi MRX – 300 & 400
Manyo Forging Press
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Manufacturing units equipped with end-to-end capabilities to ensure quality control
Engineering, design and procurement
o Converts customer designs, drawings and inputs into actionable part drawings, cost estimates, process parameters, monitoring
protocols, production simulation, trial runs, sample preparation;
o Tool making is done through CNC machine programming with relevant 2D drawing, 3D model and other machines
o Raw material – sourced from customer approved vendors
o In most customer contracts, raw material costs are pass through to the client
Engineering, design, tooling and die-making
Raw material procurement
Manufacturing process
Forging
o High-speed hot formers are best suited for high volume precision components while vertical forging lines are ideally suited
o Diversified forging infrastructure converts steel rods into rings/ gear blanks/ other shapes as required
Heat treatment
Cold Rolling
Machining
for medium as well as lower volume production
o Heat treatment provide the proper hardness & wear
o Normalizing, Spherodize-annealing, Iso-annealing, Hardening and tempering, Case carburizing and Induction hardening
o Components are passed through one or more pairs of rolls to reduce the thickness, increase diameter, to make the thickness
uniform, to impart desired mechanical properties and improve yield in manufacturing process
o Pre-Machining - forged parts are pre-machined on conventional lathe and manually operated CNC turning centres;
o CNC Turning & Vertical Machining Centres (“VMC”) - milling, grooving, facing, threading, drilling, boring etc.
g n i t s e t d n a
l
o r t n o c y t i l
a u Q
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Long standing customer relationships and geographically diversified revenue base
In FY22, Rolex supplied bearing rings and automotive components to >80 customers spread across over 20 countries
Revenue Split
FY22
Canada
Slovakia
France
Portugal
Poland
Germany
Romania
Czech Republic
Hungary
Austria
Italy
USA
Supply relations with Top 10 customer groups
China
India
Thailand
FY22
Argentina
South Africa
• Rolex suppliers to leading bearing manufacturers, Tier-1
& Tier – 2 suppliers and certain auto OEMs
• Rolex has customers across multiple sectors including turbines &
industrial machinery, wind
automobile, railways;
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•
In the auto sector, Rolex has customers across all vehicle segments (2W,PV,CV, OHVs & EVs)
Key awards & certifications
Rolex Rings is widely recognized for its impeccable service & reliability
Year
2021
2019
2018
2018
2016
2014
2014
2011
2011
Awards and Accreditations
Q1 Preferred Quality Status - Ford
Supplier Quality Excellence Award – General Motors
Excellence in New Product Development – Timken
Supplier Quality Excellence Award – General Motors
Excellence in Technology Advancement by Timken powered by VRIDDHI
Certificate of Supplier Quality for fulfilling the quality assurance compliance by Hyundai Motors India Ltd.
GM Supplier Quality Excellence Award
Excellence in Technology – Timken
Excellence in Cost and Productivity – Timken
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Rolex continues to maintain growth momentum with focus on margins and strengthening balance sheet
Total Revenues from Operations (₹ mn)
EBITDA (₹ mn) and margins
PBT/ PAT (₹ mn)
9,043
7,843
6,660
6,163
10,167
2,868
Operating Cash Flows & Capex (₹ mn)
Net Debt (₹ mn) and Net Debt: Equity
RoE (%)
Note : Return on Net Worth = Profit After Tax / Total Equity; * indicates that numbers are based on Restated Financials .
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Q1 FY23 financials and business developments
Financial Performance - Quarterly
Total Income (₹ mn)
EBITDA (₹ mn) and margins
PBT/ PAT (₹ mn)
Revenues from Operations (excluding scrap) for Q1 FY23
.
o We continue to receive new enquiries from existing as well as new customers as they try and de-risk their supply chains in both bearing rings as well as auto components segment
o Our revenues on bearing side were impacted by inventory adjustment
at some of our customers; should normalize by end of this month
o While we have still not witnessed any perceptible impact of the slowdown in Americas or Europe, we have increased engagement with our customers to maintain revenue visibility
o If the current trends in RM continues, we anticipate our RM costs to
decrease from end of this quarter
o Net Debt of the Company as at end of Quarter has reduced to ~INR
1,860mn
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Statement of Profit and Loss (Quarterly)
Particulars (₹ mn)
Income
Revenue from operations
Other income
Total income (I)
Expenses
Cost of raw materials and components consumed
Decrease/ (increase) in inventories of finished goods and work-in progress
Employee benefits expense
Finance costs
Depreciation and amortization expense
Other expenses
Total expenses (II)
Profit before tax (III) = (I - II)
Tax expense
Current tax expenses
Deferred tax charge / (Credit)
Total tax expense (IV)
Profit for the period (V) = (III - IV)
.
Q1FY23
Q1FY22
2,868
69
2,936
1,405
(31)
146
38
63
708
2,329
608
155
(44)
110
497
2,274
37
2,311
1,094
(63)
143
67
63
562
1,866
445
154
(11)
142
303
Q-o-Q %
27%
36%
64%
Q3FY22
2,888
61
2,949
1,483
-168
143
54
63
770
2,346
603
211
1
212
391
Y-o-Y %
0%
1%
27%
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Statement of Profit and Loss (Annual)
Particulars (₹ mn)
Income
Revenue from operations
Other income
Total income (I)
Expenses
Cost of raw materials and components consumed
Decrease/ (increase) in inventories of finished goods and work-in progress
Employee benefits expense
Finance costs
Depreciation and amortization expense
Other expenses
Total expenses (II)
Profit before tax (III) = (I - II)
Tax expense
Current tax expenses
Deferred tax charge / (Credit)
Total tax expense (IV)
Profit for the period (V) = (III - IV)
.
FY22
10,167
114
10,281
5,195
(554)
588
204
256
2,649
8,338
1,944
666
(41)
625
1,319
FY21
6,163
34
6,198
3,166
(292)
519
117
254
1,682
5,446
752
130
(248)
(118)
870
FY20
6,660
93
6,753
3,137
156
527
322
265
1,626
6,032
721
127
64
191
529
FY19
9,043
69
9,113
4,529
(190)
608
420
254
2,085
7,707
1,406
309
506
815
590
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Balance Sheet - Snapshot
Particulars (₹ mn) Assets
Non-current assets
Property, plant, and equipment
Capital work in progress
Right-of-use assets
Intangible assets
Financial assets
a) Loans
b) Other financial assets
Income tax assets (net)
Other non-current assets
Current assets
Inventories
Financial assets
a) Loans
b) Trade receivables
c) Cash and cash equivalents
d) Bank balances other than Cash and cash equivalents
e) Other financial assets
Other current assets
FY22
FY21
FY20
FY19
3,789
460
0
8
-
42
20
155
3,714
3,730
3,808
12
1
9
-
140
20
288
-
1
12
25
34
20
111
10
1
14
33
125
20
131
2,617
1,711
1,306
1,602
0
2,305
37
162
104
156
1
1,708
46
58
68
195
31
1,277
12
152
60
92
1
1,815
1
45
102
113
Particulars (₹ mn) Equity and liabilities Equity Equity share capital Other equity Total equity Liabilities Non-current liabilities Financial liabilities a) Borrowings b) Lease liabilities Income tax liabilities (net) Deferred tax liabilities (net) Provisions
Current liabilities Financial Liabilities a) Borrowings b) Lease liabilities c) Trade payables d) Other financial liabilities Other liabilities Provisions Income tax liabilities (net)
FY22
FY21
FY20
FY19
272 5,176 5,448
205 1 179 608 33
2,024 0 1,201 58 23 8 67
240 3,328 3,567
323 1 179 324 31
1,836 0 1,176 434 15 7 75
240 2,441 2,681
442 1 179 569 31
1,939 0 738 261 8 7 3
4,181
240 1,914 2,153
913 1 171 506 23
2,343 0 913 671 13 7 107
5,669
Total liabilities
4,406
4,402
Total assets
9,854
7,969
6,862
7,823
Total equity and liabilities
9,854
7,969
6,862
7,823
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Contact Us
For further information, please contact:
+91 281 6699 577/ 677
info@rolexrings.com
Mr. Hiren Doshi – Chief Financial Officer
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