bkt analyst presentation jan 11 (1)
TRANSCRIPT
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7/31/2019 BKT Analyst Presentation Jan 11 (1)
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Analyst PresentationQ3 FY 2011 Result Update
January 2011
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Safe Harbor
This presentation and the accompanying slides (the Presentation), which have been prepared by BalkrishnaIndustries Limited (the Company), have been prepared solely for information purposes and do notconstitute any offer, recommendation orinvitation to purchase or subscribe for any securities, and shall not formthe 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 mayconsider 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 Companys 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 tyre industry in India and world-wide, competition, the companys ability to successfully
implement its strategy, the Companys future levels of growth and expansion, technological implementation,
changes and advancements, changes in revenue, income or cash flows, the Companys market preferences and its
exposure to market risks, as well as other risks. The Companys 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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Standalone Tire Business :
Financial Highlights - Q3 FY2011
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* Includes Rs.8 Cr Redemption Premium on FCCB
Rs.Crs Q3 FY11 Q3FY10 YoY % Q2 FY11 QoQ %
Sales (MT) 27,825 21,303 31% 26,532 4%
Revenue 496 347 43% 476 4%
Raw Material 302 168 287
Employee Expenses 13 11 13
Other Expenses 93 81 86
EBITDA 88 87 1% 91 -3%
EBITDA Margin 17.8% 25% 19.1%
Exchange (Gain)/Loss 2 -6 -7
Interest 11* 4 3
Depreciation 19 17 19
PBT 57 72 76
Tax 18 25 25
PAT 38 48 -20% 51 -25%
PAT Margin 7.7% 13.7% 10.7%
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Standalone Tire Business :
Financial Highlights 9M FY2011
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Rs.Crs 9M FY11 9M FY10 YoY % FY10
Sales (MT) 80,959 59,174 37% 84,454
Revenue 1,430 952 50% 1,395
Raw Material 857 433 673
Employee Expenses 38 31 42Other Expenses 264 218 300
EBITDA 271 269 1% 380
EBITDA Margin 18.9% 28.3% 27%
Exchange (Gain)/Loss -1 -14 -18
Interest 18* 15 19
Depreciation 56 49 66
PBT 199 220 314
Tax 65 75 105
PAT 134 145 -8% 209
PAT Margin 9.3% 15.3% 15.0%
* Includes Rs.8 Cr Redemption Premium on FCCB
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Sales Volume Break-up : 9M FY 2011
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34,000 MT
equivalent to
3.5 months
of Sales Volume
Europe48%
America22%
Asia 20%
RoW 10%
Agriculture 65%
OTR 29%
Others 6%
Distributors; 81%
OEM 13%
Off-Take6%
Guidance for FY 2011 : Sales of Tires ~ 100,000 - 110,000 MT
& EBITDA margin in the range of 18% - 19%
Geography Wise Segment Wise
Channel Wise Strong Order Book
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Increase in Natural Rubber Prices largely offset
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100
150
200
250
Rs/Kg
~ 50 % rise in Natural Rubber Prices
Natural Rubber Constitutes 32% of
Raw-Material Composition
Major Rubber producing countries facing
erratic climatic conditions
More of Speculation, Less ofdemand-
supply Mismatch
Ability to offset substantial cost
increase by Price hikes Three Product Price Hikes in last one
year, resulted in 20-25% increase in
prices
Rubber Inventory/ Forward Contract
Production requirement covered till
May 11
Natural Rubber Price Movement in 2010
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Corporate Update
Split of Equity Shares Face value reduced from Rs.10 to Rs.2 effective from Dec 10
Total outstanding shares 96,658,595
Redemption of FCCB - USD 24 Mn in Dec 10
Including USD 2 Mn paid towards redemption premium
Brownfield Expansion to be completed by Jun 11
To increase achievable production capacity to 130,000 MT
Spent Rs. 70 Crs. through Internal Accruals out of total project cost of Rs. 200 Crs.
Greenfield expansion at Bhuj progressing as per schedule
To add achievable production capacity by 90,000 MT
Estimated Project cost of Rs. 1,200 Crs
Debt of USD 175 mn tied-up, to be drawn in phases
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For further information, please contact:
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Company : Investor Relations Advisors :
Balakrishna Industries Ltd.Mr. B K Bansal, Director - Finance
www.bkt-tires.com
Strategic Growth Advisors Pvt. Ltd.Mr. Gaurang Vasani
www.sgapl.net
mailto:[email protected]://www.bkt-tires.com/mailto:[email protected]://www.sgapl.net/http://www.sgapl.net/mailto:[email protected]://www.bkt-tires.com/http://www.bkt-tires.com/http://www.bkt-tires.com/mailto:[email protected]:[email protected]:[email protected]