saturday, december 05, 2015 analyst / investor presentation q2 fy 2010-11 update

Tuesday, April 18, 2023

Analyst / Investor PresentationAnalyst / Investor Presentation

Q2 FY 2010-11 updateQ2 FY 2010-11 update


Economic Environment

Business and Financial Highlights Q2 & H1 FY 2010-11

Way Forward

Agenda


Economic Environment

• GDP is expected to grow by 8-8.5% in FY 2010-11 as projected by

the Ministry of Finance.

• According to the Finance Ministry, Y-O-Y inflation in terms of WPI

was 8.51% in August down from 9.97% in July.

• The automobile segment has registered an impressive performance

in Q2 FY’11 with all major players growing 20% YOY in volumes.

• Tyre Industry is also projected to register double digit growth in

FY’11 backed by buoyant demand for automobiles but margins

are already under pressure due to volatile rubber prices.


Business & Financial Highlights Q2 FY’11

Net Sales Turnover was Rs. 832 cr. (+21.4% over Q2FY’10, +7.7% over Q1FY’11) Net sales in H1 stood at Rs. 1604 cr. (+21.1% over H1FY’10)

EBDITA margin of 5.3% in Q2 & H1 (15.6% in Q2FY’10 and 5.3% in Q1FY’11). Op. PBT to Net Sales of 2.7% in Q2 & H1 (13.5% in Q2FY’10 and 2.7% in Q1FY’11). Despite sequential growth of 7.7% in Net Sales, margins have remained flat due to high raw material cost.

PBT clocked Rs. 22.6 cr. in Q2 & Rs. 43.7 cr. in H1FY’11.

Natural rubber touched peak levels in July and has increased by over 50% since September last year. Heavy rains in rubber producing countries considerably impacted the availability of Natural Rubber. Imports were temporarily affected due to the congestion of cargo at Mumbai port following the collision between two vessels in August.

PCR & TBR trial runs have started at the Halol plant.


Manufacturing Highlights Q2 FY’11

Lakh nos.Q2 FY'09-10 Q2 FY'10-11 YOY

Actual Actual Growth

4.90 Truck Tyres 4.99 2%1.80 Light Truck Tyres 1.86 3%0.26 Speciality Tyres 0.35 35%1.28 PCV/UV Radial Tyres 1.30 2%9.37 2/3 Wheeler Tyres - Outsourced 10.52 12%

Particulars


Manufacturing Highlights H1 FY’11

Lakh nos.H1 FY'09-10 H1 FY'10-11 YOY


9.66 Truck Tyres 9.79 1%3.54 Light Truck Tyres 3.57 1%0.40 Speciality Tyres 0.59 48%2.46 PCV/UV Radial Tyres 2.38 -3%

17.21 2/3 Wheeler Tyres - Outsourced 20.10 17%

Particulars


Sales Highlights Q2 FY’11

Rs. Cr.Q2 FY '09-10 Q2 FY '10-11 YOY


523 - Replacement 636 21.5%79 - OE 122 54.5%

602 - Domestic 757 25.8%126 - Export 143 13.5%728 - Total 900 23.7%

43 Excise Duty 68 59.8%

685 Net Sales 832 21.4%

Particulars


Sales Highlights H1 FY’11

Rs. Cr.H1 FY '09-10 H1 FY '10-11 YOY


1,055 - Replacement 1,287 22.0%138 - OE 211 52.5%

1,193 - Domestic 1,498 25.5%218 - Export 240 10.3%

1,411 - Total 1,738 23.2%

87 Excise Duty 134 54.7%

1,324 Net Sales 1,604 21.1%

Particulars


Net Sales and EBITDA - Q2 FY’11

Net Sales - Rs. Cr. Comparative EBDITA

500

600

700

800

900

Q2'10 Q1'11 Q2'11

685.2

772.2

831.7 15.6%

5.3% 5.3%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Q2'10 Q1'11 Q2'11

21.4%

Rubber prices have gone up by more than 50% since last September impacting margins.


Financial Performance – Q2 FY’11

Rs. Cr.Q2 FY '09-10 Q2 FY '10-11

Actual Budget

727.70 Gross Sales 899.61685.18 Net Sales 831.65106.62 Operating Profit 43.85

7.89 Interest 13.296.30 Depreciation 8.05

92.43 Operating PBT 22.510.39 Non-Operating Income 0.14

92.82 PBT 22.65

13.5% Op. PBT / Net Sales % 2.7%

Particulars


Financial Performance – H1 FY’11

Rs. Cr.H1 FY '09-10 H1 FY '10-11

Actual Actual

1410.81 Gross Sales 1737.811324.25 Net Sales 1603.87

216.08 Operating Profit 84.8019.99 Interest 25.2812.61 Depreciation 16.10

183.48 Operating PBT 43.420.87 Non-Operating Income 0.24

184.35 PBT 43.66

13.9% Op. PBT to Net sales % 2.7%

Particulars


Way Forward

Raw Material cost continues to be matter of serious concern. Rubber prices had temporarily softened in September in anticipation of the Government relaxing the duty on imports of Natural Rubber. However, the Government has not issued any official notification as yet. Consequently Rubber prices have started climbing up despite resumption of tapping.

Commercial production at Halol is expected to begin in Q3.


Statement in this “Management Discussion and Analysis” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities law and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include demand supply conditions , finished goods prices, availability and prices of raw materials , changes in the govt. regulations, tax regimes, economic development within India & countries within which the company conducts business and other factors such as litigations and labour negotiations.

Cautionary Statement


Thank you

saturday, december 05, 2015 analyst / investor presentation q2 fy 2010-11 update

Documents