BKT Analyst Presentation Jan 11 (1)

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

[email protected]

www.bkt-tires.com

Strategic Growth Advisors Pvt. Ltd.Mr. Gaurang Vasani

[email protected]

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]

Documents

BKT Analyst Presentation Jan 11 (1)