S.J.S. Enterprises Limited has informed the Exchange about Investor Presentation
February 10, 2023
To,
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra – Kurla Complex, Bandra (E), Mumbai -400 051
BSE Limited Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai – 400 001
Symbol: SJS
ISIN: INE284S01014
Dear Sir/Madam,
Scrip Code: 543387
Subject: Earnings Call Presentation of the Company pertaining to Q3 of FY 2022-23
In continuation to the letter dated February 09, 2023 with respect to the earnings presentation filed with Stock Exchange, we hereby submit the revised earnings presentation of the unaudited Financial Results of the Company for the quarter and nine-months ended December 31, 2022 as there was minor typo in the earlier earnings presentation.
Request you to kindly take the above on record.
Thank you,
Yours faithfully, For S.J.S. Enterprises Limited
Thabraz Hushain W. Company Secretary & Compliance Officer Membership No.: A51119
Encl: As mentioned above
SJS Enterprises Limited
Q3FY23 EARNINGS PRESENTATION
SJS| Disclaimer
Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy. The company cannot, therefore, guarantee that the ‘forward-looking’ statements made herein shall be realized. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events
Q3FY23 Earnings Presentation
December 2022
2
SJS| Today’s Presenters
K A JOSEPH Managing Director
SANJAY THAPAR CEO & Executive Director
MAHENDRA NAREDI Chief Financial Officer
DEVANSHI DHRUVA Head–Investor Relations
• Founded the company in 1987
• More than 34 years of
experience in aesthetics printing business
• Post graduate diploma in
business administration from the St. Joseph’s College of Business Administration, Bangalore; B.Sc from Bangalore University
• Over 30 years of experience in
the automotive industry
• Previously worked with Ashok Minda Group, Minda Valeo Security Systems, Minda HUF Limited, Tata Engineering and Locomotive Company Limited (now known as Tata Motors Limited)
• Bachelor’s degree in science
(mechanical engineering) from the Delhi College of Engineering
• 20+ years of experience in financial management, key accounting & financial analysis, FP&A, fundraising, M&As, legal & compliances, and strategy.
• Previously worked in Minda Corporation, Wipro & GE
• Bachelor’s degree in Law & Commerce from Rajasthan University, Chartered Accountant and Company Secretary from ICAI and ICSI
• Previously worked with Westlife
Development Limited (McDonald’s India) and Piramal Enterprises Limited managing Investor Relations. Earlier worked as Equity Research Analyst with Dolat Capital Markets Pvt. Ltd.
• PGDM – Finance from K J
Somaiya Institute; M.Com & B.Com (Accounting & Finance) from University of Mumbai
Q3FY23 Earnings Presentation
December 2022
3
SJS| Premium aesthetics products manufacturer Overview
Key Facts
Rs 3,264.8 Mn Revenue 9MFY231
26.9% EBITDA margin 9MFY23
2 Production facilities
(Bangalore, Pune)
~2000 Workforce
22 Countries served
175+ Customer locations (Mar’22)
6,000 SKUs (FY22)
123 Mn Parts supplied (FY22)
Established market leader in an attractive business segment
Operates in the high value-add aesthetics market across multiple consumer-oriented end industries; increased focus on aesthetics and premium content creating opportunity throughout the component supply chain: SJS well-positioned to capitalize on the trends
Differentiated, comprehensive product portfolio
Leading edge technologies and a wide product suite including decals, appliques/dials, overlays, logos/3D lux, aluminium badges, in-mold decoratives (IMD), optical plastics and lens mask covers for diverse applications
Legacy of technology and innovation: in-house design / development
Strong in-house design and engineering capabilities and innovation track record across technologies and materials; history of new product development and successful supported by a dedicated R&D team
products, commercialization
Long-standing core customer base consisting of leading OEMs
Partner, co-creator and supplier of choice to several durables industry; dominant share of business in India and focused strategy to increase global presence
leading OEMs in the automotive and consumer
Well-invested, lean operations designed to support multi-fold revenue
New state-of-the-art manufacturing facility commissioned in 2018 to support future growth
Market leadership in India for Aesthetic Products
Demonstrated product portfolio expansion
Design-backed new product development
Entrenched customer relationships
Well invested for the next 3-5 years
Q3FY23 Earnings Presentation
December 2022
4
Q3FY23 Business & Financial Highlights
SJS| Q3FY23 Highlights
•
•
SJS outperformed auto industry (2W + PV) with 25.3% YoY revenue growth in auto compared to 3.9% YoY growth in Auto industry production volumes during the quarter
Total Revenue at Rs 1063.7 mn grew 20.8% YoY on back of 43.5% and 14.1% YoY growth in PV and 2W respectively
• Company generates strong cash flows and has maintained a robust cash & bank balance at Rs 1,431 Mn • Debt free company on net debt basis
• Added Foxconn in 2W EV segment and IFB Industries in Consumer Durables as our marquee customers in
Q3FY23
• 12 Villages with 3000 Families benefitted by our Garbage collection “Clean Village Initiative Campaign” • Added 20 beds Community Health Centre - benefitting 50 patients daily at Govt. Hospital Kaggalipura
Q3FY23 Earnings Presentation
December 2022
6
SJS| Consistently Outperforming Auto Industry
Q3FY23 - Industry Production Volume1 v/s SJS YoY Sales2
Industry SJS
14.1%
0.5%
Industry SJS
34.9%
13.3%
43.5%
21.4%
25.3%
3.9%
+
9MFY23 - Industry Production Volume1 v/s SJS YoY Sales2
32.3%
30.6%
33.9%
16.1%
+
Strong growth, despite macro economic headwinds
20.8%
Consistently maintaining 20-25% Revenue growth
24.6%
Note: 1) Industry Production Volumes are production in India; 2) For SJS YoY Sales it is Consolidated numbers
Q3FY23 Earnings Presentation
December 2022
7
SJS| Q3FY23 Business Highlights Strong growth story continues…
Highlights of the quarter
1
2
3
Growing Mega Accounts - Key Business Projects Won
Adding marquee Customers
Increasing Global Presence
2W EV
Consumer Appliances
In addition to having sales representatives in Brazil, Argentina and Turkey, we added sales representative in Columbia in Q3FY23, thereby covering key markets of Latin America
Q3FY23 Earnings Presentation
8 December 2022
8
SJS | Awards & Recognition
Visteon award for the Extra mile Support for the flaw less launch of Scorpio - N
3rd Prize in Regional Kaizen Contest, held by ACMA Southern Region
Honda India recognition for Consistent Good Quality Product supplied for exports
Customer Quality - received GREEN RATING from our Top 15 customers
Q3FY23 Earnings Presentation
December 2022
9
SJS | ESG Framework
EHS Policy • Compliance with Laws • Prevention of Pollution • Monitoring of Environmental
& Safety Performance • Continual Improvement
Sustainable Operations
• Material Management • Energy Management • Waste Reduction • Resource Efficiency
Human Capital
Employee Engagement
• • Diversity • Health & Safety • Collaboration
Inclusive Growth • Local Community • Customer Satisfaction • •
Product Quality Training & Development
Risk Management
Stakeholder Management
• • Code of Conduct • Accountability • Business Principles • Adaptation of New Technologies
SOCIAL
ENVIRONMENTAL
GOVERNANCE
Ethical Business • Business Ethics • Regulatory Compliance • Anti-competitive behaviour • Economic performance
Q3FY23 Earnings Presentation
December 2022
10
SJS | CSR – Serving the Community
12 Villages with 3000 Families benefitted by our Garbage collection “Clean Village Initiative Campaign” Added 20 beds Community Health Centre - benefitting 50 patients daily
RO Water plant installed at benefitting Agara approx. 1000 families
district
Garbage Collection vehicle for Agara Gram Panchayat under our ‘Clean Village Initiative Campaign’
20 Beds & Medical apparatus contributed to CHC - Govt. Hospital, Kaggalipura
Contributed towards infrastructure building and refurbishments for Govt. School at Tathaguni & Banjarapalya
Q3FY23 Earnings Presentation
December 2022
11
SJS| Q3FY23 Financial Performance (Consolidated)
Picking up a strong pace…
20.8% YoY growth
25.3% YoY growth
29.5% YoY growth
• Revenue* at Rs 1,063.7 Mn on account of 25.3% YoY growth in automotive
(2W+PV) segment - outperforming the underlying industry
• EBITDA* at Rs 284.0 Mn, Strong EBITDA margins of 26.1%
• Adjusted Net Profit* at Rs 157.1 Mn, with a margin of 14.8%
• Overall Domestic sales clocked 22.2% YoY growth; on back of 56.4% and 16.7%
YoY growth in PV and 2W segments for the Company
Note: Q3FY22 Sales, EBITDA, PBT & PAT are adjusted for provision of discount of Rs. 37.61 Mn on a customer sales that was created during FY21 and which was later reversed in December 2021
Q3FY23 Earnings Presentation
12 December 2022
12
SJS| 9MFY23 Financial Performance (Consolidated) Consistently delivering robust performance…
ROCE for 9MFY23 is 33% (annualized) compared to 27% in FY22
24.6% YoY growth
31.6% YoY growth
40.6% YoY growth
• Revenue* at Rs 3,264.8 Mn on account of 33.9% YoY growth in automotive
(2W+PV) segment - outperforming the underlying industry
• EBITDA* at Rs 896.0 Mn, on back of higher sales, softening in commodity prices and
operational efficiencies; Strong margins of 26.9%
• Adjusted Net Profit* at Rs 518.7 Mn, with a margin of 15.9%
• Domestic sales clocked 31.7% YoY growth; on back of 39.9% and 37.2% YoY
growth in 2W and PV segments for the Company
Exotech achieved FY22 full year revenue in just 9M of FY23 with EBITDA margin improvement to 14.0% from 12.8% in FY22, 115 bps improvement in 9 months
Note: Q3FY22 Sales, EBITDA, PBT & PAT are adjusted for provision of discount of Rs. 37.61 Mn on a customer sales that was created during FY21 and which was later reversed in December 2021
Q3FY23 Earnings Presentation
13 December 2022
13
SJS| Diversified Revenue Portfolio
Revenue by end segment
Revenue by Geography
9MFY22
9MFY23
9MFY22
9MFY23
92.8%
86.6%
50.0%
46.5%
45.0%
42.4%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
31.3%
29.1%
Macro economic uncertainties in Europe & NA, rising inflation & the ongoing geo politic issues led to subdued demand & lower production volumes
20.0%
14.7%
8.6%
7.5%
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Exports declined due to subdued demand in European and North American markets and macroeconomic issues in certain other regions.
13.4%
7.2%
2W
PV
Cons Dur
Others
Domestic
Exports
New generation products contributed ~11-12% of revenue during 9MFY23, impacted due to drop in exports
Q3FY23 Earnings Presentation
December 2022
14
SJS| Consolidated P&L Performance
Note: 1) Exceptional item – Rs. 37.61 Mn of provision for discount on a customer sale created during FY21 was reversed in December 2021 resulted in increased Sales, EBITDA, PBT & PAT
Q3FY23 Earnings Presentation
15 December 2022
15
Particulars (INR in Mn)Q3FY23Q3FY221YoY%Q2FY23QoQ%9MFY239MFY221YoY%Operating Revenue1063.7880.320.8%1169.4-9.0%3264.82619.924.6%EBITDA284.0226.725.3%333.8-14.9%896.0680.731.6%EBITDA Margin %26.1%25.6%28.0%26.9%25.7%Reported PAT157.1148.95.5%199.5-21.3%518.7396.630.8%PAT Margin %14.8%16.9%17.1%15.9%15.1%Adjusted PAT157.1121.329.5%199.5-21.3%518.7368.940.6%PAT Margin %14.8%13.8%17.1%15.9%14.1% Future Growth Outlook
SJS | One stop aesthetics solution provider
Transforming SJS with a well diversified product suite addressing every requirement of varied customer base
PV (Interior View)
Rs 1200 – 1500 Per vehicle
Legacy Kit Value
3 - 4x growth Per vehicle
Future Kit Value
Q3FY23 Earnings Presentation
December 2022
17
SJS | One stop aesthetics solution provider
Transforming SJS with a well diversified product suite addressing every requirement of varied customer base
PV (Exterior View)
Q3FY23 Earnings Presentation
December 2022
18
SJS | One stop aesthetics solution provider
Transforming SJS with a well diversified product suite addressing every requirement of varied customer base
Two Wheeler
Rs 300 - 500 Per vehicle
Legacy Kit Value
1.5 - 2x growth Per vehicle
Future Kit Value
Q3FY23 Earnings Presentation
December 2022
19
SJS | One stop aesthetics solution provider
Transforming SJS with a well diversified product suite addressing every requirement of varied customer base
Rs 50 - 150 Per appliance
Legacy Kit Value
3 - 4x growth Per appliance
Future Kit Value
Q3FY23 Earnings Presentation
December 2022
20
Consumer Appliances
SJS| Organic growth expected at ~25% CAGR, with best-in-class margins
Strategy for organic growth over FY23-25
Exports : Increasing global presence • Penetrate deeper in existing geographies and enter new geographies
• Strong focus on expanding presence in ASEAN
• Strengthening our sales force in Turkey, Brazil & Argentina and exploring similar opportunities in other countries
Products : Focus on development of new technologies & advanced products •
Intend to develop and introduce Illuminated logos, In Moulded Electronic (IME) parts and other new gen technologies
• Continue to build capabilities to innovate & develop new products & increase application of products across industries
Key Customers : Growing mega accounts • Building mega accounts with existing customers by expanding the array of products
•
Increase customer base by marketing existing products to new customers and explore cross selling opportunities between SJS and Exotech
Capacity Expansion : Expand chrome plating capacity to meet higher demand pipeline • •
Double the chrome plating capacity to support revenues of Rs 3,000 Mn from the current Rs 1,300 Mn capacity Higher capacity will also enable entry into global markets
Q3FY23 Earnings Presentation
December 2022
21
SJS| Inorganic Growth Expected to Boost Organic Growth Trajectory
Merger & Acquisitions Strategy
SJS successfully integrated Exotech business and demonstrated credible business improvement in Exotech’s FY22 performance:
• ~50% YoY growth in Revenue, increasing from Rs 685 Mn to Rs 1,020 Mn in FY22. Exotech already achieved Rs 1,008 Mn for 9MFY23
• Cost synergies & efficiency resulted in Exotech EBITDA margin expansion by 70 bps YoY from 12.2% in FY211 to 12.8% in FY22. Continuous improvement initiatives led to another 115 bps expansion in margins to 14% in 9MFY23.
SJS will continue ahead with more business accretive acquisitions & the rationale for it will be:
Build capability in adjacent / new aesthetic product categories Identified key product categories to enter / expand presence which include: • • •
IMD / IML IME (In-Mould Electronics) Plastic injection moulding
Expand presence in consumer related industries Enter new segments and expand presence in other consumer related industries targeting • Appliance manufacturers • Consumer electricals
Enter new geographies / OEMs for chrome plating • Expand presence in chrome plating (largest segment)
and increase cross selling opportunities • Overcome logistics cost as bulky parts • Provides direct entry into OEMs to support cross
selling opportunities
Actively evaluating opportunities and building an M&A pipeline to give an impetus to revenue growth over and above the organic growth of ~25%
Note: 1) FY21 EBITDA Margins is excluding one time gain on sale of land to the extent of Rs 53.83 Mn
Q3FY23 Earnings Presentation
December 2022
22
SJS| FY23 Outlook
▪ SJS will continue to outperform the industry despite the macro economic headwinds in export markets and slow down in domestic
market post festive season
▪ SJS expects ~20% YoY revenue growth on account of expected outlook for 2W, PV and Consumer Durables
▪ Robust margin profile and expected operating leverage to drive PAT growth of ~20 - 25% YoY
9M FY 23 Performance (INR Mn)
YoY Growth %
Revenue
EBITDA
EBITDA margin
PAT
PAT Margin
3,264.8
896.0
26.9%
518.7
15.9%
24.6%
31.6%
40.6%
• Target revenue growth of ~20% & PAT growth
of ~20-25% in FY 23
• Continue to maintain best-in-class margins • Strong cash flow generation of Rs 478 Mn in
9MFY23
• Debt free company
Note: Q3FY22 Sales, EBITDA, PBT & PAT are adjusted for provision of discount of Rs. 37.61 Mn on a customer sales that was created during FY21 and which was later reversed in December 2021
Q3FY23 Earnings Presentation
December 2022
23
Q3FY23 Earnings Call Invite
SJS Enterprises Limited
SJS Enterprises Limited (BSE: 543387) announced its results for the third quarter ended December 31, 2022, on February 9th, 2023. Following the announcement, the management team will host a conference call for investors and analysts on February 10th, 2023, at 10:30 AM IST. The call will commence with a brief discussion on the previous quarter’s performance followed by an interactive question and answer session. Call details are below:
Date
Time
10th February, 2023
10:30 AM IST | 01:00 PM HK/SG | 05:00 AM UK (London) | 12:00 AM EST USA
Duration
60 minutes
Universal Dial in
+91 22 6280 1145 | +91 22 7115 8046
International Toll Free
HK: 800 964 448 | SG: 800 101 2045 | UK: 0 808 101 1573 | USA: 1 866 746 2133
Diamond Pass Link
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=8158285&link
SecurityString=28b3d45d24
Note: Please dial in at least 10 minutes prior to the schedule to ensure that you are connected in time. Audio and transcript will be available with in ten working days after the call on Investors page of company website (www.sjsindia.com). For further information, please contact: Devanshi Dhruva | devanshi@sjsindia.com
Q3FY23 Earnings Presentation
December 2022
24
THANK YOU
IR Contact Ms. Devanshi Dhruva | Head - Investor Relations devanshi@sjsindia.com
Appendix
SJS| Longstanding history of design backed manufacturing excellence Evolution into a leading design and aesthetics focused business
2021
Exotech Plastics Acquisition completed to further complement product suite with addition of chrome products
2019-20
Introduced premium / technologically advanced products (formed dials, Optical plastics, lens mask assemblies) and expanded PV customer base with new product range
2018
New manufacturing facility commissioned with 225,000 sq.ft. area and significant capacity boost
2015-17
Entry into new product lines - IMD parts, aluminum & electro formed badges
2015
Everstone Capital acquired a majority stake; exit by Serigraph
2010-14
New product addition in premium segment – 3D Lux etc.
2006
Joint Venture with Serigraph, a US based commercial printing player
1987 SJS founded by three entrepreneurs
Q3FY23 Earnings Presentation
December 2022
27
SJS| Diverse Product Portfolio…(1/2)
Decals & Body Graphics
2D Appliques & Dials
Domes
3D Appliques & Dials
3D Lux Badges
Aluminium Badges
Q3FY23 Earnings Presentation
December 2022
28
SJS| Diverse Product Portfolio…(2/2)
Overlays
Lens Mask Assembly
Chrome plated parts
IMLs / IMDs
Optical Plastics
Aftermarket – “Transform”
Without Anti glare/ Anti Reflection
With Anti glare/ Anti Reflection
Q3FY23 Earnings Presentation
December 2022
29
SJS| Superior financial metrics and resilient business model
Revenue from Operation (INR Mn)
EBITDA (INR Mn) and EBITDA Margin (%)
4000 3500 3000 2500 2000 1500 1000 500 0
2372.55
2161.73
2516.15
3698.6
3264.8
FY 19
FY 20
FY 21
FY 22
9MFY23
31.0%
31.2%
26.7%
643.2
686.1
797.0
985.3
26.3%
1,200.0
1,000.0
800.0
600.0
400.0
200.0
-
32.0%
30.0%
26.9%
28.0%
896.0
26.0%
24.0%
22.0%
FY19
FY20 EBITDA
FY21 Margin
FY22
9MFY23
PAT (INR Mn) and PAT Margin (%)
ROCE (%)
600.0
500.0
400.0
300.0
200.0
100.0
-
18.7%
18.7%
15.6%
14.7%
15.9%
376.0
412.9
477.7
550.2
518.7
20.0%
15.0%
10.0%
5.0%
0.0%
35 30 25 20 15 10 5 0
FY19
FY20
FY21
FY22
9MFY23
PAT
Margin
Note: FY 22 and 9MFY23 figures consolidated for SJS and Exotech
28.3
26.4
31.6
27.1
33.1
FY 19
FY 20
FY 21
FY 22
9MFY23
Q3FY23 Earnings Presentation
December 2022
30
SJS| Experienced & Qualified Board & Management Team
K A Joseph Managing Director – Promoter & Co-founder
❖ More than 34 years of experience in aesthetics printing business
❖ Leads the manufacturing operations for the Company and has
spearheaded technological and product innovation over the years
❖ Also a director on the board of Exotech
Ramesh Chandra Jain Non-Exec Chairman & Independent Director
❖Worked for 25 years in Eicher & retired as group vice chairman
❖Received the Society of British Aerospace Companies Prize in Aircraft
Production ,1972-73 from the Cranfield University,
s r o t c e r i D
f o d r a o B
s P M K
Sanjay Thapar Executive Director and CEO
❖ Over 30 years of experience in the auto industry
❖ Previously Group Chief Strategy Officer with
Ashok Minda Group; MD of Minda Valeo Security Systems
Vishal Sharma Nominee Director
❖ MD - investments and operations with
Everstone Capital Advisors Private Limited
❖ Previously worked with BCG India (1); Sapient
Corp (now known as Publicis Sapient)
Mahendra Naredi Chief Financial Officer
❖ 20+ years of experience in financial management and analysis, key accounting and strategy. Previously worked in Minda Corp, Wipro & GE
Kevin K. Joseph Executive Director
❖ Holds a bachelor’s degree in mechanical
engineering
❖ Previously worked with Tata Elxsi Limited as
a senior design engineer
Kazi Arif Uz Zaman Nominee Director
❖ Ex-MD – private equity with Everstone
Capital
❖ Presently a partner of GestAlt Network
LLP
R. Raju Chief Marketing Officer
❖ Has over 22 years of experience in the field of marketing; Previously worked with ITW India Limited, ITW Signode India Limited etc.
Matthias Frenzel Non-Executive & Independent Director
❖ Previously worked with Visteon Electronics Germany GmbH, S-Y Systems Technologies Europe GmbH and Johnson Controls GmbH
Veni Thapar Non-Executive Independent Director
❖ Presently a partner of V K Thapar & Company,
Chartered Accountants
❖ Was on the board of Bank of India as a part-time, non-official director under the CA (2) category
Sadashiva Baligar Chief Operation Officer
❖ Previously worked with Motherson
Automotive Technologies, Automotive Manufacturers (Malaysia) SDN BHD, Toyota Kirloskar etc.
Note: (1) BCG India – Boston Consulting Group (India) Private Limited; (2) Chartered Accountant
Q3FY23 Earnings Presentation
December 2022
31