MAKING IN INDIA - Bharat Forge · MAKING IN INDIA FOR THE WORLD 20% 38% 26% 16% CV Engine CV...
Transcript of MAKING IN INDIA - Bharat Forge · MAKING IN INDIA FOR THE WORLD 20% 38% 26% 16% CV Engine CV...
M A K I N G I N
INDIA F O R T H E W O R L D
INVESTOR PRESENTATION February 2016 | Bharat Forge Ltd. | Pune
MAKING IN INDIA FOR THE WORLD
20%
26% 38%
16% CV Engine
CV chassis
Non-Auto
Passenger Vehicle
32%
25%
41%
2% India
USA
Europe
Asia-Pac
Bharat Forge Limited - A Global Industrial Conglomerate
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• Consolidated Revenues: ~ US$ 1.3 bn.
• 9 Manufacturing locations across 4 countries.
• Global Marquee Customer base of more than 35 OEM’s &Tier- 1
companies across automotive & industrial applications.
• Non Auto: 38% of consolidated revenues in FY 2015.
• No single customer exceeds 6% of consolidated revenues.
BHARAT FORGE: PROFILE GLOBAL FORGING CONGLOMERATE
REVENUE BREAK-UP BY GEOGRAPHY – FY 2015 REVENUE BREAK-UP BY SEGMENTS – FY 2015
Geography Capacity (TPA)
403,750
180,000
Total 583,750
MAKING IN INDIA FOR THE WORLD
Bharat Forge Limited – Key Differentiators
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Key Differentiators
Technology & Innovation
Relationship
Customers
De-risked Business Model
Full service supply capability
Strong focus on product & process innovation.
Development partners
Leveraging relationship to expand in to new sectors
Strong Marquee Clientele
Biggest customer: 6%
Extensive product portfolio: auto & Industrial
Balanced business: segments & Geography
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Transformational Shifts around the three Success Levers
ENGINEERING
&
INNOVATION
TECHNO-LOGY
PEOPLE
1. From ‘Muscle Power’ to ‘Brain Power’
2. Creating a ‘Knowledge Workforce’
3. Modernizing ‘Technology & Operations’
4. From a ‘Generic Supplier’ to a ‘Partner of Choice’
5. From an ‘Indian Company’ to a ‘Global Company’
6. Business Model is diversified across – i. Geographies ii. Industry Segments
MAKING IN INDIA FOR THE WORLD
Highlights for 9M FY 2016
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Strong growth in the Auto segment with market share gain in specific products and geographies.
Improved product mix, efficient manufacturing practices and cost control measures has helped to improve EBIDTA margins.
Passenger Vehicle focus remains steadfast with export revenues growing more than 100% Y-o-Y
Continued weakness in the global commodities and its allied sectors is affecting the demand in Industrial segment
Maintaining a healthy balance sheet by focus on free cash generation. Aim to be net debt free by 2018.
Started serial production of aerospace parts. Witnessing good progress in the sector.
Strong concentration on R&D and innovation giving a competitive edge in the “Make in India” initiative.
Continue to focus on expanding product portfolio across sectors and acquire new customers across geographies.
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Standalone Results – Q3 FY 2016 Vs Q2 FY 2016
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Particulars Q3 FY16
Q2 FY16 Q-o-Q % change
Shipment Tonnage 50,741 54,559 (7.0)%
Domestic Revenue 4,230 4,789 (11.7)%
Export Revenue 6,290 6,379 (1.4)%
Total Revenue 10,520 11,168 (5.8)%
EBITDA 3,301 3,362 (1.8)%
EBITDA % 31.4% 30.1%
PBT before Ex Gain/ (loss) 2,632 2,742 (4.0)%
PAT 1,661 1,751 (5.1)%
(INR Million)
MAKING IN INDIA FOR THE WORLD
Standalone Results – Q3 FY 2016 Vs Q3 FY 2015
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Particulars Q3 FY16
Q3 FY15 Y-o-Y % change
Shipment Tonnage 50,741 53,306 (4.8)%
Domestic Revenue 4,230 4,643 (8.9)%
Export Revenue 6,290 7,335 (14.2)%
Total Revenue 10,520 11,978 (12.2)%
EBITDA 3,301 3,668 (10.0)%
EBITDA % 31.4% 30.6%
PBT before Ex Gain/ (loss) 2,632 2,908 (9.5)%
PAT 1,661 1,963 (15.4)%
(INR Million)
MAKING IN INDIA FOR THE WORLD
Standalone Results – 9M FY 2016
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Particulars 9M FY16
9M FY15 Growth %
Shipment Tonnage 157,284 154,989 1.5%
Domestic Revenue 13,634 13,415 1.6%
Export Revenue 19,339 19,827 (2.5)%
Total Revenue 32,973 33,242 (0.8)%
EBITDA 10,253 9,888 3.7%
EBITDA % 31.1% 29.7%
PBT before Ex Gain/ (loss) 8,397 7,718 8.8%
PAT 5,366 5,158 4.0%
(INR Million)
MAKING IN INDIA FOR THE WORLD
Geographical Breakup - Standalone
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Particulars (INR Million) 9M FY 2016 9M FY 2015 % Change
India 13,635 13,414 1.6
Americas 12,590 12,509 0.7
Europe 5,708 6,302 (9.4)
Asia Pacific 1,041 1,016 2.5
41%
39%
17% 3%
9M FY16
India
Americas
Europe
Asia-Pac
40%
38%
19% 3%
9M FY15
India
Americas
Europe
Asia-Pac
MAKING IN INDIA FOR THE WORLD
Segmental Breakup - Standalone
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Particulars (INR Million) 9M FY 2016 9M FY 2015 % Change
Commercial Vehicles 16,200 13,948 16.1
Industrial 11,767 14,347 (18.0)
Passenger Vehicles 2,673 2,237 19.5
53% 38%
9%
9M FY16
Commercial Vehicles
Industrial
Passenger Vehicles
46% 47%
7%
9M FY15
Commercial Vehicles
Industrial
Passenger Vehicles
MAKING IN INDIA FOR THE WORLD
Standalone Financial Ratios
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0.51 0.51
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
Debt Equity Ratio
Dec-15
Mar-15 0.21 0.22
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
Debt Equity Ratio (Net)
Dec-15
Mar-15
20.4%
22.7%
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
24.0%
Return on Capital Employed
Dec-15
Mar-1519.1%
20.7%
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
24.0%
Return on Net Worth
Dec-15
Mar-15
MAKING IN INDIA FOR THE WORLD
Industrial Segment – Focus on New Sectors
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INDUSTRIAL BUSINESS
ENERGY
TRANSPORTATION
CONSTRUCTION & MINING
OIL & GAS POWER NUCLEAR, THERMAL, WIND
RAIL MARINE AEROSPACE
CONSTRUCTION METAL & MINING GENERAL ENGINEERING INF
RA
ST
RU
CT
UR
E S
UP
PL
Y B
US
INE
SS
MAKING IN INDIA FOR THE WORLD
Contributing to “Make in India”
• Working on import substitution
• Identified 4 sectors - Mining, Power, Railways/Marine & Defense
• Focus on developing new and technologically differentiated products across these
sectors.
• Significant progress made to get accredited with the government agencies for initial
sample orders
• Won initial sample orders for new products & systems across industries.
MAKING IN INDIA FOR THE WORLD
State of Markets / BFL Engagement
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SECTOR YEAR 2001
YEAR 2004
YEAR 2012
YEAR 2015
YEAR 2017
TRUCK
PASSENGER CAR
CONSTRUCTION
MINING
AGRICULTURE
OIL & GAS
AEROSPACE
DE RISKED BUSINESS MODEL
GEOGRAPHICAL DIVERSIFICATION
SECTOR DIVERSIFICATION
PRODUCT EXPANSION
3,331 5,105 6,555 7,513 9,610 10,024
7,066 12,195
17,347 15,867 18,482
27,207
0
5,000
10,000
15,000
20,000
25,000
30,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Revenue Development Exports (INR Million)
MAKING IN INDIA FOR THE WORLD
Asset Light Capex: Changing the Approach
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CAPEX
CUSTOMER
PEOPLE
PRODUCT
PEOPLE
PRODUCT
CUSTOMER
CAPEX
MAKING IN INDIA FOR THE WORLD
Building a highly skilled & competitive Talent Pipeline
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BITS PILANI
B Sc. , Manufacturing Engineering; BITS Pilani, India
M Sc., Engineering Business Management; Warwick, U.K.
IIT Bombay
M Tech., Materials, Manufacturing & Model Science; IIT Bombay, India
Ph.D. Program, Focused & Generic Research; Deakin University, Australia
We promote a culture of continuous learning, skill &
knowledge up-gradation across employee groups
UNDER GRADUATE
STUDIES
POST GRADUATE STUDIES
(Management)
POST GRADUATE STUDIES
(Technical)
DOCTORAL PROGRAMS (Technical)
MAKING IN INDIA FOR THE WORLD
State of Markets
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Particulars INDIA NORTH AMERICA EUROPE
Commercial Vehicles
Passenger Vehicles – High End
Passenger Vehicles – Mass Market
Oil & Gas
Construction
Mining
Aerospace
Power (Renewable & Thermal)
MAKING IN INDIA FOR THE WORLD 18
WHEN OBSTACLES ARISE,
YOU CHANGE YOUR DIRECTION TO
REACH YOUR GOAL,
YOU DO NOT CHANGE YOUR
DECISION TO GET THERE.
THANK YOU