Transcript Slide 1

CEAT
Investors Presentation
Contents

Economic Environment

Industry Scenario

Financial Performance and Update

Product and Market Mix

Production Details

Raw Material – Price Trends

Highlights of the Year

Sri Lanka Performance

The Road Ahead
Economic Environment




Indian GDP expected to grow by around 8.5% in FY’12.
Volatility in global energy and food prices fueling inflation the world
over.
Automobile industry has registered volume growth of 27% in FY10-11.
Commercial Vehicles registered highest growth rate of 33% over the
previous year.
Tyre industry has registered double digit growth in FY’11. Margins are
under pressure due to the steep increase in raw material prices.
Industry Scenario
Others
15%
MRF
27%
BIRLA
11%
CEAT
12%
APOLLO
19%
JK
16%
Industry Size FY 11 ~ Rs.30,000 cr.
Top 5 contribute to 85% of sales
Past Growth –Top 5
Net Sales
30000
Rs in crs
26422
Trailing CAGR 18.5%
25000
20532
20000
13423
14829
17017
15000
10000
5000
2006-07
2007-08
2008-09
2009-10
Top 5 : CEAT, MRF,Apollo,JK,Birla
*JK Q4 figures are estimates
2010-11
Company Update
Financial Performance and Update
5 years Performance
2010-11
2009-10
2008-09 2007-08 2006-07
Gross Sales
Less: Excise Duty
Net Sales
EBIDTA
Depreciation
Interest (Net)
Exceptional Item
PBT
Less: Tax
PAT
3752
283
3469
141
34
66
8
33
11
22
2990
182
2808
306
27
40
0
239
78
161
2611
245
2366
48
31
54
0
-37
-21
-16
2603
273
2330
205
33
54
-80
198
49
149
2391
256
2135
150
31
58
0
61
22
39
Proposed Dividend
Dividend %
8
20%
16
40%
0
0
16
40%
10
18%
(all figures in ` crore)
Shareholding Pattern
Others , 34.00%
Promoters, 48.84%
Financial Institutions
/ Banks, 14.75%
Financial Institutional
Investors, 2.41%
Net Sales Growth (Rs in crore)
CAGR - 12.9%
3500
2808
Net Sales
3000
2500
3469
2135
2330
2366
2007-08
2008-09
2000
1500
1000
500
0
2006-07
2009-10
2010-11
Quarterly Performance
Q4
09-10
Q1
Particulars
Q2
Q3
10-11
Q4
824.8
Gross Sales
838.2
899.6
957.3
1056.5
772.8
Net Sales
772.2
831.7
886.8
978.3
39.9
EBIDTA
41.0
43.9
41.5
14.6
10.6
Interest
12.0
13.3
17.9
22.9
7.9
Depreciation
8.1
8.1
8.3
9.8
20.9
22.5
15.3
-18.1
21.5
Operating PBT
Exceptional expense (VRS)
0.1
Non-Operating Income
7.8
0.1
0.1
0.2
21.4
PBT
21.0
22.7
7.5
-17.9
5.1%
EBIDTA %
5.3%
5.3%
4.7%
1.5%
Lag between cost push and price hike
129
116
115
115
109
107
110
110
Q2 '11
Q3 '11
100 100
Mar'10
Q1 '11
RM
Price hike
Q4 '11
Sales and Market Mix – FY’11
Export,20%
OE, 14%
Repl, 66%
In value terms
Speciality, 7%
Other, 5%
Tractor, 6%
Jeep, 3%
Car, 2%
Trucks, 58%
2/3 wheelers,
10%
LCV, 10%
In volume terms
Raw Material- Price Trend Rs/Kg
NR
300
Local
PBR
International
250
200
250
150
200
100
150
50
100
0
RSS4 Prices as per Rubber Board Site
Other RM Price derived from ICISLOR site
SBR
250
200
150
100
50
0
Nylon Tyre Cord
310
300
290
280
270
260
250
240
230
220
Highlights of the FY’11
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Commencement of commercial production at radial facility
in Halol, Gujarat, in March’11
Acquisition of global rights of CEAT brand from Pirelli,
Italy for Euro 9 million
Capacity expansion by 35 MT/day at Nasik Plant
Increase in supply of 2/3 wheeler tyres from 2.00
lakh/month to 3.50 lakh/month.
Expansion Plans
MT/day
Production
Bhandup/Ambernath
Nasik
Halol
Outsourcing
Total
Volume Growth
FY'10
230
160
120
510
FY'11
240
175
5
140
560
FY'12
240
200
90
170
700
FY'13
220
200
175
205
800
10%
25%
14%
In value terms, 3 Year CAGR expected to be
~ 25% from FY10 to FY13
CEAT 2013 Scenario
Product Mix
Truck
Crossply,
47%
Non Truck,
39%
Truck
Radial, 14%
In MT
Radial Revenue
OEM
18%
Radial
25%
Exports
17%
Market Mix
Repl
65%
Cross Ply
75%
In Value terms
In MT
CEAT- Sri Lanka
FY10
FY’11
Net Sales
220
309
EBIDTA
38
40
PBT
29
31
PAT
21
23
EBIDTA %
17%
13%
(in ` crore)
The Road Ahead
CEAT

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Radial capacity at Halol Plant to ramp up to full capacity
utilisation
Increased supply of 2/3 wheeler tyres from 3 lakh/month to
5 lakh/month
Industry
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Raw material prices continue to be a concern
Radialisation to continue at rapid pace in Truck / Bus
segment
BIS Regulation positive for the Tyre industry.
Increase in interest rates and commodity prices to impact
the Automobile sector.
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