Samvardhana Motherson International Limited
6,765words
9turns
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0executives
Key numbers — 40 extracted
rs,
75%
25%
28%
34%
39%
49%
125%
22%
1.9x
2.5x
13,416 crore
Guidance — 9 items
Regd Office
opening
“The results will be uploaded on Company’s website at www.motherson.com in compliance with Regulation 46(2)(l)(ii) and will be published in the newspapers in terms of Regulation 47(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
Regd Office
opening
“in developed markets to improve efficiencies Capex guidance for the full FY revised to Rs.”
Notes
opening
“YoY represents comparison between Q2FY24 vs Q2FY23 & QoQ represents Q2FY24 vs Q1FY24 Source: Light Vehicles: S&P Global Mobility; Light Vehicle Forecast October 2023, SIAM (Region India) / Commercial Vehicles: Global Data UK Limited; Commercial Vehicle Production Data October 2023, SIAM (Region India) Taking appropriate measures to adapt to the ever-changing and unpredictable external factors.”
Notes
opening
“• Discussions with customers are a constant feature in the short to medium term.”
Notes
opening
“(+10%) Increase on account of investments into emerging markets and capex for acquired assets New expected Capex Guidance of Rs.”
Notes
opening
“Capex to support growth in Emerging markets Capex for acquired assets New Capex Guidance Capex for acquired assets closed till October 2023.”
Notes
opening
“Main challenges Ø Labour strike in USA impacting production of OEMs Ø Disruption in OEM supply chain in Europe ü Transformative acquisitions announced for non-auto businesses, ü Booked business of the Aerospace division will be ~1.3 Bn USD post closure of AD Industries acquisition ü Elastomers, approx.”
Notes
opening
“In addition, this presentation does not purport to be all- inclusive or to contain all of the information that may be required to make a full analysis of the Company, target entitles or the proposed transaction.”
Notes
opening
“In addition, this presentation does not purport to be all- inclusive or to contain all of the information that may be required to make a full analysis of the Company, target entitles or the proposed transaction.”
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Risks & concerns — 15 flagged
Growth in India & China is offset by temporary slowdown in production in North America due to labour strikes and in Europe on account of annual summer holiday shutdowns at OEMs Material and energy stabilized, albeit at elevated levels; However, high wages and interest rates still posing challenges Sharing of Inflationary cost structure continues with customers
— Regd Office
• New capacities in emerging markets, to support impending high growth in both auto and non- auto sectors • Taking proactive steps to improve operational efficiency by realigning automotive capacities in developed market • More opportunities to support customers by M&A • Diversification strategy (3CX) continues to limit the impact of volatilities.
— Notes
Q2FY23 PAT includes net impact of a) exceptional items of Rs 98 Cr on account of impairment provisions on the assets as well as other costs related to production suspension in Russia b) one time income of ~ Rs 33 crores (Post Tax) on account of insurance claims for the production stoppage due to flood in Durban plant in Q1FY23 c) Rs 14 crores on account of deferred tax reversal in Russia 4.
— Notes
Q2FY24 PAT includes a negative impact of Rs 129.9 crores of loss in net monetary position in subsidiaries located in the hyperinflationary economy of Argentina and an approximate equal positive impact of reversal of impairment and restructuring cost in respect to one subsidiary in Brazil amounting to Rs.
— Notes
Reported PAT (Concern share) is INR 202 Cr.
— Notes
Calculated based on average of closing and opening inventory for the reported period and annualized sales for the reported period De-risking via Diversification, limiting the impact of regional volatilities.
— Notes
Continued Focus on risk mitigation via diversification 3CX10 (H1FY24).
— Notes
(Rs in Crores) Revenues Growth 28% 18,302 23,474 EBITDA Growth 34% Q2 FY23 1 Q2 FY24 PBT (before exceptional items and share of associates) Growth 24% 699 PAT (Concern Share) Growth 39% 565 462 519 Q2 FY23 2 Q2 FY24 2,000 1,000 - 500 450 400 350 300 250 200 150 100 50 - 8.2% 1,494 46 1,448 8.5% 2,001 10.
— Notes
Q2FY23 PAT includes net impact of a) exceptional items of Rs 98 Cr on account of impairment provisions on the assets as well as other costs related to production suspension in Russia b) one time income of ~ Rs 33 crores (Post Tax) on account of insurance claims for the production stoppage due to flood in Durban plant in Q1FY23 , c) Rs 14 crores on account of deferred tax reversal in Russia 4.
— Notes
Q2FY24 PAT includes a negative impact of Rs 129.9 crores of loss in net monetary position in subsidiaries located in the hyperinflationary economy of Argentina and an approximate equal positive impact of reversal of impairment and restructuring cost in respect to one subsidiary in Brazil amounting to Rs.
— Notes
Reported PAT (Concern share) is INR 202 Cr.
— Notes
0% H1 FY23 2 1 H1 FY24 PAT (Concern Share) Growth 125% 900 467 79 388 One time provision for footprint rationalization 1,052 249 803 H1 FY23 2 H1 FY24 One-offs - H1 FY23 3 H1 FY24 4,5 PAT 1.
— Notes
Q2FY23 PAT includes the net impact of a) exceptional items of Rs 98 Cr on account of impairment provisions on the assets as well as other costs related to production suspension in Russia b) one time income of ~ Rs 33 crores (Post Tax) on account of insurance claims for the production stoppage due to flood in Durban plant in Q1FY23 , c) Rs 14 crores on account of deferred tax reversal in Russia 4.
— Notes
Q2FY24 PAT includes a negative impact of Rs 129.9 crores of loss in net monetary position in subsidiaries located in the hyperinflationary economy of Argentina and an approximate equal positive impact of reversal of impairment and restructuring cost in respect to one subsidiary in Brazil amounting to Rs.
— Notes
Reported PAT (Concern share) is INR 802 Cr.
— Notes
Speaking time
7
1
1
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Opening remarks
Regd Office
Unit – 705, C Wing, ONE BKC, G Block Bandra Kurla Complex, Bandra East Mumbai – 400051, Maharashtra (India) Tel: 022-61354800, Fax: 022-61354801 CIN No.: L34300MH1986PLC284510 Email: investorrelations@motherson.com -2- The Board Meeting of the Company commenced at 1130 Hours (IST) and concluded at 1355 Hours (IST). The results will be uploaded on Company’s website at www.motherson.com in compliance with Regulation 46(2)(l)(ii) and will be published in the newspapers in terms of Regulation 47(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The above is for your information and records. Thanking you, Yours truly, For Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) Alok Goel Company Secretary Encl(s). : As above Samvardhana Motherson International Limited. (Formerly Motherson Sumi Systems Ltd.) Q2 FY 2023-24 Results Presentation 11 Key Highlights Consistent performance in challenging environment, Well-prepared to ada
Notes
1. Includes revenue from acquired assets of Rs 1,851 Cr and EBITDA of Rs 180 Cr (SAS, Ichikoh’s Mirror business and Rollon consolidated for 2 months in the quarter, and Saddles consolidated for the full quarter) 2. Booked business is the sum of the lifetime sale value of orders yet to start production and orders currently under production; EV sales include only pure EV programs. 3. The leverage ratio (Net Debt + Lease Liability) / EBITDA for Sep-23 computed assuming LTM EBITDA of the acquired assets (SAS, Ichikoh’s Mirror business, Saddles and Rollon). Total LTM EBITDA for the 22 these acquired assets is approximately. Rs. 958 crores. 4. Details of the phased operational realignment initiatives announced in October 2023. https://www.motherson.com/storage/Corporate%20Announcements/FY2023-24/25Oct-Stock-Exchange-Disclosure.pdf Amidst stabilising indicators, global uncertainties still loom. Manpower inflation and interest rates continue to pose challenges, Energy and commodities stable at
Notes
1. Q2 FY24 includes revenue from acquired assets of Rs 1,851 Cr and EBITDA of Rs 180 Cr (SAS, Ichikoh’s Mirror business and Rollon and Saddles) 2. Q2FY23 EBITDA includes income of ~Rs 46.4 crores (Euro 5.7 Mn) received on account of insurance claims for the production stoppage due to flood in the Durban plant in Q1FY23; EBITDA margin computed is excluding the one-off income. 3. Q2FY23 PAT includes net impact of a) exceptional items of Rs 98 Cr on account of impairment provisions on the assets as well as other costs related to production suspension in Russia b) one time income of ~ Rs 33 crores (Post Tax) on account of insurance claims for the production stoppage due to flood in Durban plant in Q1FY23 c) Rs 14 crores on account of deferred tax reversal in Russia 4. Q2FY24 PAT includes a negative impact of Rs 129.9 crores of loss in net monetary position in subsidiaries located in the hyperinflationary economy of Argentina and an approximate equal positive impact of reversal of impairmen
Notes
1. Net Debt = Gross Debt - Cash & Cash equivalents 2. Leverage ratio = (Net Debt + Lease Liability) / LTM EBITDA 3. The leverage ratio (Net Debt + Lease Liability) / EBITDA for Sep-23 computed assuming LTM EBITDA of the acquired assets (SAS, Ichikoh’s Mirror business, Saddles and Rollon). The total LTM EBITDA for the above-mentioned four acquired assets is approximately. Rs. 958 crores. 1010 Full growth potential of M&As to be unlocked in coming times. Combined Proforma Revenue since Sep 2022 USD ~2.6 bn. (Net2) 15 acquisitions. USD ~6.4 bn. (Gross1,2) Additional 75+ facilities3. New into Motherson family 17,000+ employees. Acquisitions. New Capability/ Rationale to support our customers. Closing Status. Consolidation with SAMIL (FY24) Q4 / Q1 Q2 Q3 Q4 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 DICV Frame & Assembly Frame Assembly business for Daimler trucks Closed (Feb 2023) Full benefit of impending growth in off highway segment Closed (Mar 2023) FMCEL Bolta YMAT Chrome plated poly
Notes
1. Calculated based on average of closing and opening inventory for the reported period and annualized sales for the reported period De-risking via Diversification, limiting the impact of regional volatilities. Continued Focus on risk mitigation via diversification 3CX10 (H1FY24). Component wise. Customer wise. (top 15 customers) Country wise. Wiring Harness 26% Vision Systems 18% Bumpers* Door Panels* 13% 11% Includes impact of two months only for post-acquisition closure of SAS 12% Instrument Panel* 6% Integrated Assembly Engineering* Other Polymer products* 3% 3% Wires 4% Non-Automotive Others 2% 2% Merced es Benz Aud i Volkswagen Suzu ki/ Maruti… BMW stellantis Porsch e Hyun dai Fo rd Daimler trucks Paccar Renault GM American EV OEM Seat John Deere Scan ia Tata Motors Mahindra Volvo Car 9% 9% 8% 6% 5% 4% 4% 3% 3% 3% 3% 3% Top 15 customers account for 70% of overall revenues 2% 2% 2% 1% 1% 1% 1% 1%
Notes
1.Total revenue considered is including 100% of joint venture and associate companies consolidated under equity method (Economic Revenue). 2. Revenue by country is based on manufacturing locations. * Under Modules and Polymer Products business division 1717 21% 18% 16% 11% India** USA Germany China Hungary Spain Mexico France Poland South Korea 6% 5% 4% 4% 3% 3% Others 9% Emerging markets1 account for ~ 55%+ of total revenues in H1 FY24 1Emerging markets defined as Brazil, China, India, Mexico, Sri Lanka, Thailand, South Korea, South Africa, Czech Republic, Hungary, UAE, Slovakia, Serbia, Turkey, Argentina, Philippines, Morocco, Indonesia, Poland as per MSCI Emerging Markets Index **Sales from India is 17.6% of total Economic Revenue excluding MSWIL. It has been calculated after excluding H1 FY24 MSWIL revenues and including procurement done by MSWIL from wiring business of SAMIL Building on customers’ trust. Healthy booked business for Automotive businesses SAMIL’s Automotive ‘Booked
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