14
1 Minda Corporation Q2 FY2016 Earnings Presentation Safety, Security and Restraint Systems Driver Information and Telematics Systems Interior Systems Interior Systems Driver I Inf nf nf nformati tion a an nd nd T T Tel el elem m em emat at atic ic ics s s Sy S S stems Q2 FY2016 Consolidated Earnings Presentation November 04, 2015 Minda Corporation Limited (NSE: MINDACORP; BSE: 538962) Leading automotive component and flagship company of Spark Minda, Ashok Minda Group

Minda Corporation Ltd (CRD4) - Business Standardbsmedia.business-standard.com/_media/bs/data/announcements/bse/...Minda Corporation Limited (NSE: MINDACORP; BSE: 538962) Q2 FY2016

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1 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Saf

ety,

Sec

urit

y an

d R

estr

aint

Sys

tem

s

Dri

ver

Info

rmat

ion

and

Tel

emat

ics

Sys

tem

s

Inte

rior

Sys

tem

sIn

teri

or S

yste

ms

Dri

ver

I Infnfnfnf

orm

atition

a andndndnd

T T Telelel

emememematatat

icicics s s

Sy

Sy

Sys

tem

s

Q2

FY

2016

Con

soli

dat

ed E

arn

ings

Pre

sen

tati

on

Nov

emb

er 0

4, 2

015

Min

da

Cor

por

atio

n L

imit

ed

(NS

E: M

IND

AC

OR

P; B

SE

: 538

962)

Lea

din

g au

tom

otiv

e co

mp

onen

t an

d f

lags

hip

com

pan

y of

Sp

ark

Min

da,

Ash

ok M

ind

a G

rou

p

2 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Thi

s pr

esen

tati

on c

onta

ins

stat

emen

ts t

hat

cont

ain

“for

war

d lo

okin

g st

atem

ents

” in

clud

ing,

but

wit

hout

lim

itat

ion,

sta

tem

ents

rel

atin

g to

the

im

plem

enta

tion

of s

trat

egic

ini

tiat

ives

, an

d ot

her

stat

emen

ts r

elat

ing

to M

inda

Cor

pora

tion

Lim

ited

(“M

inda

Cor

p” o

r th

e C

ompa

ny)

futu

re b

usin

ess

deve

lopm

ents

and

econ

omic

per

form

ance

.

Whi

le t

hese

for

war

d lo

okin

g st

atem

ents

ind

icat

e ou

r as

sess

men

t an

d fu

ture

exp

ecta

tion

s co

ncer

ning

the

dev

elop

men

t of

our

bus

ines

s, a

num

ber

of r

isks

,

unce

rtai

ntie

s an

d ot

her

unkn

own

fact

ors

coul

d ca

use

actu

al d

evel

opm

ents

and

res

ults

to d

iffe

r m

ater

iall

y fr

om o

ur e

xpec

tati

ons.

The

se f

acto

rs i

nclu

de,

but

are

not

lim

ited

to,

gen

eral

mar

ket,

mac

ro-e

cono

mic

, go

vern

men

tal

and

regu

lato

ry t

rend

s, m

ovem

ents

in

curr

ency

exc

hang

e an

d

inte

rest

ra

tes,

co

mpe

titi

ve

pres

sure

s,

tech

nolo

gica

l de

velo

pmen

ts,

chan

ges

in

the

fina

ncia

l co

ndit

ions

of

th

ird

part

ies

deal

ing

wit

h us

, le

gisl

ativ

e

deve

lopm

ents

, and

oth

er k

ey f

acto

rs th

at c

ould

aff

ect o

ur b

usin

ess

and

fina

ncia

l per

form

ance

.

Min

da C

orp

unde

rtak

es n

o ob

liga

tion

to p

ubli

cly

revi

se a

ny f

orw

ard

look

ing

stat

emen

ts to

ref

lect

futu

re/ l

ikel

y ev

ents

or

circ

umst

ance

s.

Imp

orta

nt

Not

ice

Con

fere

nce

Dia

l-In

Nu

mb

ers:

Nov

emb

er 0

5, 2

015

(Th

urs

day

) at

03.

30 P

M I

ST

Pri

mar

y N

umbe

r +

91

22 3

938

1028

Sec

onda

ry N

umbe

r +

91

22 6

746

8328

The

num

bers

list

ed a

bove

are

uni

vers

ally

acc

essi

ble

from

all

net

wor

ks a

nd a

ll c

ount

ries

Inte

rnat

iona

l

Tol

l Fre

e N

umbe

r

US

A: 1

866

746

213

3

UK

: 0 8

08 1

01 1

573

Sin

gapo

re: 8

00 1

01 2

045

Hon

g K

ong:

800

964

448

3 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Fin

anci

al H

igh

ligh

ts

§T

otal

Rev

enue

inc

reas

ed b

y 27

.2%

Y-o

-Y t

o R

s. 6

,162

mill

ion

§E

BIT

DA

inc

reas

ed b

y 30

.4%

Y-o

-Y t

o R

s. 6

38 m

illio

n; M

argi

ns g

rew

26

bps

§P

rofi

t aft

er T

ax i

ncre

ased

by

33.7

% t

o R

s. 2

91 m

illio

n, M

argi

ns e

xpan

ded

by 2

3 bp

s

H1

FY

2016

vs.

H1

FY

2015

(Con

solid

ated

)

Q2

FY

2016

vs.

Q2

FY

2015

(Con

solid

ated

)

§T

otal

Rev

enue

inc

reas

ed b

y 21

.4%

Y-o

-Y t

o R

s. 1

1,44

3 m

illio

n

§E

BIT

DA

inc

reas

ed b

y 22

.5%

Y-o

-Y t

o R

s. 1

,140

mill

ion

§P

rofi

t aft

er T

ax i

ncre

ased

by

26.0

% t

o R

s. 4

93 m

illio

n, M

argi

ns e

xpan

ded

by 1

6 bp

s

§N

et D

ebt

of R

s. 4

,524

mill

ion

(FY

2015

: R

s. 4

,577

mill

ion)

§N

et D

ebt

/ Equ

ity r

atio

of

0.87

x (F

Y20

15:

0.98

x)

§T

otal

Rev

enue

inc

reas

ed b

y 6.

5% Y

-o-Y

to

Rs.

1,8

28 m

illio

n

§P

rofi

t bef

ore

Tax

inc

reas

ed b

y 38

.1%

Y-o

-Y t

o R

s. 2

13 m

illio

n; M

argi

ns i

ncre

ased

by

266

bps

§P

rofi

t aft

er T

ax i

ncre

ased

by

44.8

% t

o R

s. 1

53 m

illio

n, M

argi

ns e

xpan

ded

by 2

22 b

ps

Q2

FY

2016

vs.

Q2

FY

2015

(Sta

nd

alon

e)

4 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Man

agem

ent

Com

men

tary

Str

ivin

g to

war

ds

bu

sin

ess

and

fin

anci

al e

xcel

len

ce

Mr.

D.C

Sh

arm

a

Gro

up C

FO

“I

am p

leas

ed t

o pr

esen

t ou

r Q

2 F

Y20

16 r

esul

ts w

ith

a se

nse

of p

ride

and

opt

imis

m.

The

sen

se o

f pr

ide

stem

s fr

om t

he r

obus

t im

prov

emen

t ac

ross

all

fin

anci

al m

etri

cs.

Dur

ing

the

quar

ter,

we

achi

eved

a t

opli

ne

grow

th o

f 27

.2%

y-o

-y w

ith

the

back

drop

of

only

a m

argi

nal

sale

s de

-gro

wth

of

(0.4

)% r

egis

tere

d by

the

dom

esti

c au

tom

obil

e in

dust

ry.

Our

con

tinu

ed f

ocus

on

valu

e ad

ded

prod

ucts

cou

pled

wit

h th

e on

goin

g co

st

opti

miz

atio

n in

itia

tive

s re

sult

ed in

an

even

str

onge

r P

AT

grow

th o

f 33.

7%.

My

sens

e of

opt

imis

m c

omes

fro

m t

he r

ecen

t bu

sine

ss d

evel

opm

ents

whi

ch a

re e

xpec

ted

to b

ear

frui

t in

the

futu

re.

Our

ong

oing

foc

us o

n be

ing

ahea

d on

the

tec

hnol

ogy

curv

e he

lped

us

laun

ch n

ew p

rodu

cts

and

proc

ure

new

ord

ers

from

glo

bal

OE

Ms.

We

also

com

plet

ed t

he group’s

reo

rgan

izat

ion

effo

rts

wit

h th

e

succ

essf

ul a

cqui

siti

on o

f M

inda

Sto

neri

dge

Inst

rum

ents

whi

ch h

elps

cre

ate

a st

rong

er o

pera

ting

str

uctu

re

wit

h fo

cuse

d bu

sine

ss v

erti

cals

.

We

are

wit

ness

ing

a gr

adua

l rec

over

y in

the

glo

bal a

utom

obil

e m

arke

ts. H

owev

er, t

he g

row

th v

arie

s ac

ross

geog

raph

ies

and

diff

eren

t se

gmen

ts.

Whi

le

the

dom

esti

c pa

ssen

ger

car

sale

s m

aint

aine

d it

s gr

owth

mom

entu

m,

the

2 W

heel

er s

egm

ent

show

ed s

igns

of

stag

nati

on w

ith

a m

argi

nal

de-g

row

th o

f (1

.3)%

. A

s

Eur

opea

n m

arke

ts s

how

enc

oura

ging

sig

ns,

we

look

for

war

d to

an

incr

ease

d sh

are

of b

usin

ess

from

tha

t

regi

on.

Our

str

ong

fina

ncia

l po

siti

on a

nd r

obus

t bu

sine

ss m

odel

mak

es u

s w

ell

posi

tion

ed t

o ta

ke a

dvan

tage

of

an

expe

cted

upt

ick

in g

loba

l au

tom

obil

e m

arke

ts i

n th

e ne

ar t

erm

. T

his

wil

l en

sure

tha

t w

e co

ntin

ue t

o cr

eate

valu

e fo

r al

l our

sta

keho

lder

s.”

5 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Cor

por

ate

Soc

ial

Res

pon

sib

ilit

y: S

par

k M

ind

a F

oun

dat

ion

(S

PV

for

Gro

up

CS

R a

ctiv

itie

s)

Oth

er S

ign

ific

ant

Dev

elop

men

ts

Bu

sin

ess

Inte

grat

ed

•P

artn

ered

wit

h Y

erw

ada

Jail

for

on

the

job

trai

ning

of

inm

ates

•A

fter

the

1st in

itia

tive

at T

ihar

Jai

l by

Min

da F

uruk

awa,

this

is th

e 2nd

PP

P m

odel

prog

ram

in I

ndia

n A

utom

obil

e In

dust

ry

•S

take

hold

ers –

Min

da S

AI,

Yer

wad

a Ja

il, M

ahin

dra

& M

ahin

dra

•30

inm

ates

wor

king

pre

sent

ly

Soc

ieta

l Lev

el

•A

akar

shan

: Suc

cess

ful o

peni

ng o

f ne

w c

ente

rs

oP

antn

agar

, Utt

rakh

and:

Com

pute

r tra

inin

g, E

ngli

sh a

nd T

ailo

ring

oP

une,

Mah

aras

htra

: Bea

uty

cult

ure

trai

ning

for

wom

en

oT

amil

Nad

u: C

utti

ng &

Tai

lori

ng a

nd S

poke

n E

ngli

sh

•A

akar

shan

: Con

voca

tion

to e

ncou

rage

lear

ners

oG

reat

er N

oida

: 93

lear

ners

gra

duat

ed; 3

00 le

arne

rs ti

ll d

ate

oP

antn

agar

: 80

lear

ners

gra

duat

ed; 1

87 le

arne

rs ti

ll d

ate

§L

aunc

hed

new

adv

ance

d pr

oduc

t li

ne f

or 2

whe

eler

s an

d 4

whe

eler

s. T

his

new

lin

e in

clud

es h

igh

valu

e pr

oduc

ts s

uch

as O

il D

ipp

ed r

eady

to

inst

all c

lutc

h pl

ates

,

Bra

ke s

hoe

for

2 w

heel

ers

and

auto

mot

ive

filt

ers

§P

rodu

ctio

n st

arte

d fo

r do

or h

andl

es o

f ne

w m

odel

s of

Mar

uti

Suz

uki

§O

rder

win

for

sup

ply

of ‘

Air

Ven

ts’

for

BM

W’s

sel

ecte

d se

ries

for

thei

r E

urop

ean

and

Am

eric

an v

olum

es t

hrou

gh C

ompa

ny’s

Eur

opea

n fa

cili

ties

§O

rder

win

for

man

ufac

turi

ng o

f A

BS

wir

ing

harn

ess

for

com

mer

cial

veh

icle

s O

EM

§M

inda

SA

I (a

100

% s

ubsi

diar

y of

Min

da C

orpo

rati

on)

acqu

ired

51%

equ

ity

of M

inda

Sto

neri

dge

Inst

rum

ents

Ltd

. Wit

h th

is, M

inda

Cor

pora

tion

com

plet

es G

roup

’s

reor

gani

zati

on i

niti

ativ

es

Rec

ent

Cor

por

ate

Dev

elop

men

ts

6 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Ind

ust

ry O

verv

iew

Pas

sen

ger

& C

omm

erci

al V

eh. –

Eu

rop

ean

Sal

es

Sour

ce:

•D

omes

tic:

SIA

M

•E

urop

e: A

CE

A

4.9%

4.

2%

8.5%

7.

9%

10.1

%

13.2

%

9.4%

13.4

%

10.8

%

8.8%

0.0%

10.0

%

20.0

%

Q3

CY

14

Q4

CY

14

Q1

CY

15

Q2

CY

15

Q3

CY

15

Pas

seng

er C

ars

Com

mer

cial

Veh

icle

s

Pas

sen

ger

Veh

icle

s –

Dom

esti

c S

ales

C

omm

erci

al V

ehic

les –

Dom

esti

c S

ales

2 W

hee

lers

– D

omes

tic

Sal

es

7.3%

2.6%

4.

0%

6.2%

6.

3%

0.0%

5.0%

10.0

%

15.0

%

Q3

CY

14

Q4

CY

14

Q1

CY

15

Q2

CY

15

Q3

CY

15

(3.8

%)

4.6%

5.

5%

3.6%

9.5%

(5.0

%)

0.0%

5.0%

10.0

%

15.0

%

Q3

CY

14

Q4

CY

14

Q1

CY

15

Q2

CY

15

Q3

CY

15

19.0

%

1.4%

(0.2

%)

0.6%

(1

.3%

)

(5.0

%)

(0.0

%)

5.0%

10.0

%

15.0

%

20.0

%

Q3

CY

14

Q4

CY

14

Q1

CY

15

Q2

CY

15

Q3

CY

15

7 M

inda

Cor

pora

tion

– Q

2 F

Y20

16 E

arni

ngs

Pre

sent

atio

n

Con

soli

dat

ed F

inan

cial

Per

form

ance

Hig

hlig

hts

– Q

2 F

Y20

16 v

s. Q

2 F

Y20

15

•T

otal

rev

enue

for

the

qua

rter

inc

reas

ed b

y 27

.2%

y-o

-y t

o R

s. 6

,162

mil

lion

. W

hile

the

Ind

ian

auto

mob

ile

sale

s de

clin

e m

argi

nall

y by

(0.

4)%

, M

inda

Cor

pora

tion

achi

eved

a h

ighe

r gr

owth

on

the

back

of

new

bus

ines

s an

d st

rong

per

form

ance

by

Wir

ing

Har

ness

, Aft

er M

arke

t &

Die

Cas

ting

ope

rati

ons

•Q

2 F

Y20

16 E

BIT

DA

incr

ease

d by

30.

4% o

n a

y-o-

y ba

sis

wit

h m

argi

ns o

f 10

.3%

; M

argi

ns e

xpan

ded

by 2

6 bp

s

•In

tere

st e

xpen

se d

ecre

ased

fro

m R

s. 1

11 m

illi

on i

n Q

2 F

Y20

15 t

o R

s. 9

8 m

illi

on i

n Q

2 F

Y20

16 o

n ac

coun

t of

bet

ter

cash

man

agem

ent,

low

er w

orki

ng c

apit

al

requ

irem

ents

and

rep

aym

ent

of te

rm lo

an

•Q

2 F

Y20

16 P

AT

incr

ease

d by

33.

7%, m

argi

ns e

xpan

ded

by 2

3 bp

s

Q

2 y-

o-y

Q1

q-o-

q H

1 y-

o-y

(Rs.

Mil

lion

) F

Y20

16

FY

2015

G

row

th (

%)

FY

2016

G

row

th (

%)

FY

2016

F

Y20

15

Gro

wth

(%

)

Tot

al R

even

ue

6,16

2 4,

846

27.2

%

5,28

1 16

.7%

11

,443

9,

429

21.4

%

EB

ITD

A

638

489

30.4

%

502

27.0

%

1,14

0 93

0 22

.5%

M

argi

n (%

) 10

.3%

10

.1%

9.5%

10.0

%

9.9%

Pro

fit B

efor

e T

ax (

PB

T)

408

262

55.7

%

279

46.2

%

687

485

41.6

%

M

argi

n (%

) 6.

6%

5.4%

5.3%

6.0%

5.

1%

Pro

fit A

fter

Tax

(P

AT

) 29

1 21

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da

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ning

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rese

ntat

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Min

da

Cor

por

atio

n L

imit

ed

(CIN

: L74

899D

L19

85P

LC

0204

01)

Cor

por

ate

Off

ice:

Plo

t No:

68,

Ech

elon

Inst

itut

iona

l Are

a, S

ecto

r-32

,

Gur

gaon

-122

001,

Har

yana

(In

dia)

.

Tel

: +

91-1

24-4

6984

00; F

ax: +

91-1

24-4

6984

50

Reg

iste

red

Off

ice:

36A

, Raj

asth

an U

dyog

Nag

ar,

Del

hi –

110

033

, Ind

ia

Dee

pak

Bal

wan

i

Min

da

Cor

por

atio

n

deep

ak.b

alw

ani@

min

da.c

o.in

+91

124

469

8400

Ank

it A

ggar

wal

/ Ji

tesh

Bha

tia

Ch

urc

hga

te P

artn

ers

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da@

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chga

tepa

rtne

rsin

dia.

com

+91

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6169

598

8

Saf

ety,

Sec

urit

y an

d R

estr

aint

Sys

tem

s D

rive

r In

form

atio

n an

d T

elem

atic

s S

yste

ms

Inte

rior

Sys

tem

s