investors’ presentation q1 fy’20 · • cv sector impacted by demand slowdown because of higher...

Future ready for growth…

Investors’ Presentation

Q1 FY’20

Jamshedpur Plant

1


Company Overview

Jamshedpur Plant

2


9 Strategically

located plants

across India

India’s #1

Spring Manufacturer

Rated

A1+/AA by ICRA

Manufacture

~ 500 Parts

for OEMs &

2,000+parts for After

Market

In-house R&D Centre

Strong After Market network:

More than

15,000 touch points

Jamna Auto Industries Limited is referred to as “JAI” hereafter

JAI at a glance

3


1954

Started Business

19571st Multi-leaf manufacturing

Plant in Yamuna Nagar

1991

2nd Multi-leaf manufacturing

Plant in Malanpur

19993rd Multi-leaf manufacturing

Plant in Chennai

2007

Acquired Tata’s Captive Springs

Business in Jamshedpur

20084th Multi-leaf manufacturing

Plants in Jamshedpur & 5th plant

in Pantnagar (Assy)

2012

Assembly line in Hosur

2018

Technical Collaboration with

Tinsley Bridge UK

2015Set up in-house R&D in Pune

2016

6th & 7th Plant in Pune &

Pillaipakkam for Air Suspension

and Lift Axle

20178th manufacturing Plant in Hosur

& 9th plant in Lucknow (Assy)

We are

Still going!

Collaboration with Ridewell

corporation USA

4

Key Milestones

Future ready for growth…5

Expand LocationsManufacturing Plants

Yamuna Nagar

Malanpur

Chennai 1- Leaf Spring

Chennai 2- Suspension

Jamshedpur

Pune

Hosur

Assembly Plants

• Lucknow*

• Pant Nagar*

Upcoming Plants

• Indore

• Adityapur*

*Under subsidiaries of Jamna

Diversify Products

Existing Products

• Leaf Spring

• Parabolic Spring

• Lift Axle

• Air Suspension

Products in the pipeline

Stabilizer Bar

U Bolt

Z Springs

Trailer Suspension

Key Strengths

Team of expert, innovative, self driven people Best in class manufacturing facilities

Largest Supplier to Tata, Leyland & Daimler Prudent financial management policies

De-risk Markets

Existing Markets

• OE India

• AM India

• AM Exports

• OE Exports

JAI’s Corporate Strategy : Growth and Diversification


33%ROCE

*9th consecutive year of dividend payout

6

33%Dividend*

Payout

Product De-risking Diversifying Markets

33%Revenue from New Market

33%Revenue from New Products

33%Dividend Payout

Operational Goals Financial Goals

16%Revenue from New Market

34%Revenue from New Products

33%ROCE

55%ROCEA

CHIEVED

FY’19

GO

AL

S

Maximizing Returns Value Creation

6

JAI’s Corporate Strategy: Lakshya


WORLD’S LEADING PLAYERS IN LEAF SPRING

JAI’s OEM Customers

7

http://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0CAcQjRw&url=http://www.ranklogos.com/car-logos/mahindra-logo/&ei=FDJGVJq1NILVuQTB-oGgCA&bvm=bv.77880786,d.c2E&psig=AFQjCNH8o9Sc46B6mGW2SeGkjnu5tSqWQQ&ust=1413972876277995


Conventional Leaf Spring Parabolic Leaf Spring

Lift Axle Air Suspension

8

Z Spring

Stabilizer Bar

U Bolt

Upcoming ProductsExisting Products

JAI’s Product Portfolio

Trailer Suspension

8


Ropar

SML Isuzu

Gurugram

Maruti

Bhuj

AMW

Pune

Tata Motors

Mahindra

Force Motors

Bangalore

Vovlo

Ashok Leyland (Hosur)

Kamaz Vectra (Hosur)

Leyland Nissan (Hosur)

Scania

Jamshedpur

TATA Motors

Lucknow

Tata Motors

Chennai

Ashok Leyland (Ennore)

Bharat Benz (Daimler)

Renault Nissan

Ford India

Pant Nagar

TATA Motors

Ashok Leyland

OEM Plants

JAI Existing Plants (9)

Upcoming Plants (2)

Map Source: as available on www.surveyofindia.gov.in dated 17.02.2017

The Map is for illustrative purpose only

Alwar

Ashok Leyland

Indore

VECV

Man Trucks

Force Motors

Sri City

ISUZU

Yamuna Nagar

Pant Nagar

Lucknow

Malanpur

Jamshedpur

Hosur

Pune

Chennai- Pillaipakkam

Chennai- MM Nagar

9

AdityapurIndore

JAI’s Plants: Strategically located across CV hubs

9

http://www.surveyofindia.gov.in/


Shareholding Pattern as on June 30, 2019

10

Categories % Holding

Promoters 48%

Individuals 33%

Mutual Funds 8%

Foreign Portfolio Investors 5%

Bodies Corporate 3%

Financial Institution & Others 3%

NRIs 1%

Total 100%


Industry Highlights

Jamshedpur Plant


Industry Highlights

12

• Indian and Global economic growth sentiment remains subdued, according to World

Economic Outlook Update, July 2019

• GDP growth forecast revised downwards by RBI to 6.9% for FY’20 in the August

Monetary Policy

• CV Sector impacted by demand slowdown because of higher axle loads, liquidity

stress, low freight availability for cargo operators

• CV production declined by 14% in Q1’20 and subdued demand momentum continues

to exist and will be impacted by the erratic monsoon season


CV Industry Outlook

Data Source- Internal

Decline in the CV Industry Total CV production declined by 14% YoY

M&HCV production saw a decline of 17% YoY

Data Source- SIAM + Internal

13

JAI improved its market share to 71%

for the quarter

240

280

97 116

144

164

-

50

100

150

200

250

300

FY'20Q1

FY'19Q1

In '0

00

No

s

CV Production: Q1'20 vs Q1'19

Total

M&HCV

LCV

71%

29%

Market Share - OEM India

Jamna Auto

Others


1980’s

Capacity in Tons per Annum

Shift in Global Leaf Spring Market

CurrentLeaf Spring Manufacturer Base Country Capacity

Rassini Mexico 250,000

Jamna Auto Industries Limited India 250,000

Hendrickson Canada & Mexico 216,000

NHK Spring Co. Ltd Japan & Thailand 150,000

Dong Feng China 105,000

FAW China 100,000

MBHA Spain 60,000

Olgen Turkey 40,000

LPDN Europe 26,500

Leaf Spring Manufacturer Base Country Capacity

NHK Spring Co. Ltd Japan 200,000

Delphi USA 100,000

Eaton/Oxford Canada 100,000

Krupp Germany 40,000

Hendrickson USA 40,000

DSP USA 40,000

Rejna Europe 40,000

Hoesh Germany 30,000

Sarfedern Germany 20,000

Johns Woodhead UK 10,000

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JAI has come as the top spring manufacturerof the world for CV Industry


Financial Updates

Jamshedpur Plant


Key Financial Trend : Q1 FY’19 Vs. Q1 FY’20

All Figures in Rupees Crore

Cash Accruals: PAT+ Depreciation

16

562

421

Q1 FY'19 Q1 FY'20

Net Sales

52

34

Q1 FY'19 Q1 FY'20

Cash Accruals

61

30

Q1 FY'19 Q1 FY'20

PBT

79

47

Q1 FY'19 Q1 FY'20

PBIDT


Cash Accruals: PAT+ Depreciation

All Figures in Rupees Crore

17

Financial Result – Q1 FY’20

Revenue and Profitability Indicators

Particulars

2018-19 2019-20 2018-19 2018-19 % Growth % Growth

12M Q1 Q1 Q4

Q1 FY'20

Vs

Q1 FY'19

Q1 FY'20

Vs

Q4 FY'19

Net Sales 2,135 421 562 543 -25% -23%

PBIDT 287 47 79 71 -40% -33%

Operating Margin 241 34 67 58 -49% -42%

PBT 215 30 61 54 -51% -44%

PAT 137 20 40 33 -49% -39%

Cash Accruals 184 34 52 45 -35% -26%

PBDITA Margin (%) 13% 11% 14% 13%

Operating Margin (%) 11% 8% 12% 11%

PBT (%) 10% 7% 11% 10%

PAT (%) 6% 5% 7% 6%

Cash Accruals (%) 9% 8% 9% 8%

Key Capital indicators

Particulars Q1'20 Q4'19

TOL/TNW 1.0 1.1

Debt to Equity 0.1 0.0

Average Cost of Borrowing 8.5% 8.8%


Planting saplings by involving our employees in Jamshedpur

CSR Achievements made in Q1 FY’19:

Environment: Planted 3800 saplings,distributed jute bags and glass bottles andwater canes to our beneficiaries alllocations on occasion of WorldEnvironment Day

Education: Improved facilities in 15government schools in Haryana byrenovating class rooms, teaching aids,water tanks, ground and toilets

Sports: Our sponsored star sports personPooja Raghav participated in TaekwondoOpen International Tournament andqualified for International Tournament.

Community Outreach: More than 86trainees awarded certificate aftersuccessfully completing their basic andadvance course in sewing & computer inDelhi, Gurgaon and Jamshedpur.

Distributing water canes to needy community people on occasion of World Environment Day in Delhi.

Distributing books to needy students in Govt Sr. Sec. School, Yamuna Nagar .

Almost 1280 beneficiaries were screened for oral cancer at

various locations in collaboration with Yuvraj Singh

Foundation

Contributing to the Society

Contributing to the Society

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Forward Looking Statement

This presentation is made to enable investors to comprehend our prospects and take informed investment decisions. This presentation

may contain certain forward looking statements within the meaning of applicable laws and regulations. We cannot guarantee that these

forward-looking statements will be realized, although we believe we have been prudent in assumptions. The achievement of results is

subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should

underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers

should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new

information, future events or otherwise.

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Thank You

investors’ presentation q1 fy’20 · • cv sector impacted by demand slowdown because of higher...

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