Rolex Rings Limited has informed the Exchange about Investor Presentation
Rolex Rings Limited Corporate Presentation & Update on earnings for Q2FY22
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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Q2 FY22 financials and business developments
Financial Performance - Quarterly
Total Income (₹ mn)
EBITDA and margins
PBT/ PAT (₹ mn)
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
1 2 5 1
,
1 1 3 2
,
4 9 5 2
,
EBITDA (INR mn)
EBITDA Margin %
24.9%
22.4%
18.3%
279
575
581
700.00
600.00
500.00
400.00
300.00
200.00
100.00
-
500.00
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
-
191
PBT (INR Mn)
PAT (INR Mn)
445
456
283
303
327
Q2FY21
Q1FY22
Q2FY22
Q2FY21
Q1FY22
Q2FY22
Q2FY21
Q1FY22
Q2FY22
Revenues from Operations (excluding scrap) for Q2 FY22
o Continued momentum in business;
44%
Bearing Rings
Auto Components
Exports
Domestic
60%
56%
40%
.
o Exports
revenues partially impacted by chip shortage segment and
in auto-component
delaying schedules logistics related challenges;
o Raw material inflation impacted margins due to lag effect
of price adjustments;
o Margins were also impacted by ~INR 32mn on account of
IndAS adjustment towards redemption of NCRPS;
o We expect commissioning of 4.2MW in ground mounted solar by end of CY21 and are planning to commission additional 12MW in ground mounted solar by June 2022;
4
Rolex continues to maintain growth momentum with focus on margins and strengthening balance sheet
Total Income (₹ mn)
EBITDA and margins
PBT/ PAT (₹ mn)
Inside India
Outside India
10,000.00
9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
-
5,089
4,769
3,585
3,459
3,074
3,955
3,075
2,704
2,650
2,256
FY18*
FY19*
FY20*
FY21*
H1 FY22
Operating Cash Flows & Capex (₹ mn)
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
8 5 3 1
,
CFO (INR Mn)
Capex (INR Mn)
8 3 9 1
,
8 3 8 1
,
1 6 3
7 6 3
2 9 5
1 6 1
7 8 3
4 8 1
6 4 3
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
-
EBITDA (INR mn) 22.8%
EBITDA Margin % 23.6%
21.3%
0 8 0 2
,
3 8 6 1
,
19.4%
18.1%
8 0 3 1
,
3 2 1 1
,
6 5 1 1
,
PBT (INR Mn)
PAT (INR Mn)
6 0 4 1
,
1 4 9
9 2 7
0 9 5
1 2 7
9 2 5
0 7 8
2 0 9
2 5 7
0 3 6
1,600.00
1,400.00
1,200.00
1,000.00
800.00
600.00
400.00
200.00
-
FY18*
FY19*
FY20*
FY21*
H1 FY22
FY18*
FY19*
FY20*
FY21*
H1 FY22
Net Debt (₹ mn) and Net Debt: Equity
RoE/ RoCE (₹ mn)
Net Debt (INR mn)
Net Debt: Equity
3.23
4 4 0 5
,
1.79
0 5 8 3
,
0.95
0.69
0.43
7 7 5 2
,
9 4 4 2
,
5 6 0 2
,
47%
RoE (%)
RoCE (%)
38%
28%
27%
36%
27%
24%
24%
20%
21%
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
FY18*
FY19*
FY20*
FY21*
H1 FY22
FY18*
FY19*
FY20*
FY21*
H1 FY22
FY18*
FY19*
FY20*
FY21*
H1 FY22
Note : Return on Net Worth = Profit After Tax / Total Equity ;ROCE = EBIT/(Total Assets – Current Liabilities + Current Maturities of long-term debt) .
5
Statement of Profit and Loss
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)
.
Q2FY22
Q4FY21
2,585
9
2,594
1,325
(124)
155
61
64
658
2,138
456
152
(22)
129
327
2,274
37
2,311
1,094
(63)
143
67
63
562
1,866
445
154
(11)
142
303
Q-o-Q %
12%
2%
8%
Q2FY21
1,514
7
1,521
830
(161)
132
24
63
441
1,329
191
27
(119)
(91)
283
Y-o-Y %
71%
138%
16%
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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
H1FY22
FY21
FY20
FY19
3,755
221
0
9
-
79
20
219
3,714
12
1
9
-
140
20
288
3,730
3,808
-
1
12
25
34
20
111
10
1
14
33
125
20
131
2,217
1,711
1,306
1,602
1
1,859
31
156
194
165
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)
H1FY22
FY21
FY20
FY19
272 4,482 4,755
246 1 179 439 29
2,007 0 1,156 55 12 8 41
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
240 1,914 2,153
913 1 171 506 23
2,343 0 913 671 13 7 107
Total liabilities
4,171
4,402
4,181
5,669
Total assets
8,926
7,969
6,862
7,823
Total equity and liabilities
8,926
7,969
6,862
7,823
.
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About our Company
Company Overview | Introduction
Market Leadership Position
Well Qualified & Accredited Team
4.7 Mn MTPA Installed forging capacity of India's forging industry
5th largest Forging capacity in India
60 customers across 17 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
1,815 Full-time employees 654 Contractual employees
• Founders with experience of over 40 years
• Supported by professional management
capabilities across various domains
team with 64%
• Award received for new product development
52%
X 3
X 4
X 1
X 1
Manufacturing Capabilities
33+ Years of experience
22 Forging lines with a Combined installed capacity of 1,44,750 tonnes per annum
528 Spindles with a Combined installed capacity of 69 Million Parts per annum
Diverse Product Portfolio
Manufacturing infrastructure includes of high-speed hot formers from Sakamura & Hatebur.
combination
Machine
spindles
of
Existing consist DMG, TSUGAMI, Mazak, Muratec
FUJI,
lines from ACE, Hyundai,
Bearing Rings
Automotive Components
Product Portfilio suitable for a wide range of end-user industries such as automotive (PV, CV, 2W, 3W, tractor), railways, industrial infrastructure, renewable energy etc
Robust Financial Performance
₹ 6,163 mn Revenue from operations (FY21)
~55% Revenue from Exports (H1FY22)
₹ 1,123 mn EBITDA (FY21)
26.50% RONW (H1FY22)*
Revenue (INR mn)
1,521
2,311
2,594
Q2FY21
Q1FY22
Q2FY22
EBITDA (INR mn)
575
581
279
₹ 870 mn PAT (FY21)
1.79
36.41% ROCE (H1FY22)*
Q2FY21
Q1FY22
Q2FY22
Revenue Contribution Bearing Rings
Automotive
0.95
0.69
0.43
H1FY22
40%
60%
FY19*
FY20*
FY21*
H1 FY22
) x ( y t i u q E o t
t b e D
t e N
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
-
Note : Return on Net Worth = Profit After Tax / Total Equity; ROCE = EBIT/(Total Assets – Current Liabilities + Current Maturities of long-term debt); * Annualized .
9
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)
$50bn
Size of the Global Bearings Market (CY2019)
8%
39%
30%
23%
Automotive Aftermarket
Automotive OEM
Industrial Aftermarket
Industrial OEM
CAGR: +10.1% FY2013-FY2019
8,208
10,514
CAGR: +9%-11% FY2021-FY2025e
15,294
13,236
•
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 underlying bearings industry
~80% of domestic market share with #5 players
Domestic market for forged bearing rings is ~ ₹ 11,000mn
2017
2021E
2023E
2025E
₹ mn
1,20,000
20%
80%
supplies to most of the leading bearing manufacturers domestically
45,000
22,000
11,000
Others
Top 5 Players (%)
Domestic Bearing Market
Domestic bearing components suppliers
Domestic bearing ring market
Forged bearing rings
Source : Indian Bearings Industry – Industry Revenue to witness a smart recovery in FY 2022
.
10
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 of hot forged and machined alloy steel bearing rings
58%
0.01
Weight Kg
163 25
Diameter (mm)
900
42%
Break-up of revenue from sale of products (FY21)
Suitable for wide range of end-user industries Suitable for Automotive, railways, industrial infrastructure, renewable energy, among others
Bearing Rings
Automotive
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
.
11
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
• The company owns parcels of
land 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
Gujarat & Maharashtra
sites (Gujarat)
.
12
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 Eumoco and 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
1
2
3
4
5
6
7
8
9
10
11
Conventional
Conventional
Vertical Forging Lines
High-Speed Hot Formers
SMS-MEER
Enomoto Press
Eumoco
Manyo
Mitshubishi
Sakamura 160 Hot Former High Speed
Sakamura 120 Hot Former High Speed
Hatebur-HM75 Hot Former High Speed
Hatebur-HM35 Hot Former High Speed
Sakamura HFW-1000
Total
No. of Lines
6
1
1
1
6
2
1
1
1
1
1
22
Achievable Annual Capacity
% of total utilization
As at March 31, 2021
Fiscal 2019
Fiscal 2020
Fiscal 2021
11,250
9,000
6,250
2,250
25,000
8,750
17,500
12,500
18,750
12,500
18,750
144,750
64.77%
26.03%
60.55%
52.77%
45.61%
65.73%
47.42%
52.24%
38.46%
50.01%
41.23%
36.84%
6.40%
43.76%
40.67%
22.40%
39.79%
29.85%
37.54%
15.46%
32.92%
42.01%
31.87%
24.99%
9.78%
33.91%
37.86%
32.53%
48.90%
32.54%
35.68%
26.28%
33.48%
Hatebur HM 75XL
Sakamura HBP 120 SS
Sakamura HBP 160
Sakamura HFW 1000
Hatebur HM 35
Mitsubishi MRX – 300 & 400
Manyo Forging Press
.
14
Manufacturing units equipped with end-to-end capabilities to ensure quality control
Engineering, design and procurement
Engineering, design, tooling and die-making
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
Raw material procurement
o Raw material – sourced from customer approved vendors
o In most customer contracts, raw material costs are pass through to the client
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
.
15
Long standing customer relationships and geographically diversified revenue base
In FY21, Rolex supplied bearing rings and automotive components to leading domestic & international customers spread across 60 customers in 17 countries
Canada
Slovakia
France
Portugal
Poland
Germany
Romania
Czech Republic
Hungary
Austria
Italy
USA
China
India
Thailand
Argentina
South Africa
.
Revenue Split
44%
FY21
56%
Within India
Outside India
Supply relations with Top 10 customers
70%
FY21
30%
> decade
< decade
• Rolex suppliers to leading bearing manufacturers, Tier-1
& Tier – 2 suppliers and certain auto OEMs
• Rolex has customers across multiple sectors including industrial machinery, wind turbines &
automobile, railways;
•
In the auto sector, Rolex has customers across all vehicle segments (2W,PV,CV, OHVs & EVs)
16
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
.
17
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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