Kirloskar Oil Engines : Investor Presentation_March 2024

Earnings Call Presentation Q4 FY24 9th May 2024

DISCLAIMER & SAFE HARBOR STATEMENT

Statements in this presentation, particularly those which relate to management's views and analysis, describing the Company's objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward looking statements to reflect actual results, changed assumptions or other factors.

The presentation has been prepared by the Company based on the information and data which the Company considers reliable, but the Company makes no representation or warranty, expressed 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 the information that you may consider material. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded.

This presentation has been prepared solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract binding commitment whatsoever. No offering of the securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

All amounts in INR Crore	2
All numbers are rounded off to the nearest unit

KOEL GROUP

KOEL- Earnings Call - Q4 FY24 - KOEL Group

La-Gajjar

Machineries

(P) Ltd1 (100%)

Optiqua Pipes &

Electricals (P) Ltd4

(100%)

ESVA Pumps India

(P) Ltd (49% JV)6

Kirloskar Americas

Corporation2

(100%)

Engines LPG, LLC

dba Wildcat Power

Gen8 (51%)

Arka Financial

Holdings (P) Ltd5

(100%)

Arka Fincap Ltd3	Arka Investment
Advisory Services
(99.998%)
(P) Ltd7 (100%)

1 76% with effect from 1st August 2017 and 100% with effect from 26th September 2022.

2 with effect from 1st July 2015, formerly known as KOEL Americas Corp.

3 with effect from 20th April 2018, formerly known as Kirloskar Capital Ltd.

4 with effect from 19th February 2021. The appointed date for amalgamation of LGM and OPEPL, is 1 April 2023.

5 with effect from 13th July 2021.

6 with effect from 4th October 2021 (Optiqua has entered JV agreement with ESVA pumps).

7 with effect from 30th March 2022.

8 with effect from 29th November 2023.

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CONTENT

• STRATEGY
• BUSINESS OVERVIEW
• FINANCIAL OVERVIEW

4

- Earnings Call - Q4 FY24 - Strategy

OUR 2X-3Y STRATEGY

Looking to drive exponential growth from FY 2022 - FY 2025

		2X-3Y Strategy: Grow 2 times in 3 years
		Revenue ₹ 65 Bn
		@ double digit
		EBITDA
		Our progress, FY24
Goal		Revenue ₹ 48.06 Bn
	@ 11.9% EBITDA*
	Actions driven
		by strategy

Our progress, FY23 Revenue ₹ 40.73 Bn @ 11.1% EBITDA*

Where we were in FY22 Revenue ~₹ 32.60 Bn @ 8.1% EBITDA

Time

2X-3Y Strategy Pillars

Growth

Strategy

Channel & Path to Market

Technology

Roadmap

Operations

Excellence

People &

Talent

Development

KOEL

• Numbers excluding provision/(reversal) for overdue receivables made for a customer towards sales made in previous year. For details, please refer 'Note to the Unaudited Financial Results' published on the stock exchanges.

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WE ARE PROGRESSING WELL

18%		₹ 4,806
Top line growth (FY24)		Cr Revenue (FY24)

		11.9%			26%		₹ ~269 Cr
		EBITDA # Margin (FY24)		PAT # growth (FY24 YOY)		Strong net cash* position
Call- Q4 FY24 - Strategy
	26%						7
- Earnings		EBITDA # growth ( FY24 YOY)			consecutive quarters of over ₹ 1,000 Cr revenue
* Net of debt; includes treasury investments and excludes unclaimed dividends.							from operations
KOEL	# Numbers excluding provision/(reversal) for overdue receivables made for a customer towards sales made in previous year. For details, please refer 'Note to the Unaudited Financial Results' published on the
stock exchanges.						6

Deploying the 2X-3Y strategy to deliver value to all stakeholders

KOEL- Earnings Call - Q4 FY24 - Strategy

65Bn @	Customer	Employer
double-
Delight	of Choice
digit
EBITDA

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CONTENT

• STRATEGY
• BUSINESS OVERVIEW
• • STANDALONE
  • • SALES HIGHLIGHTS
  • CONSOLIDATED
  • • SEGMENT OVERVIEW
• FINANCIAL OVERVIEW

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Products to Business Segments…

Product Lines

			Engines and Gensets
			Industrial Engines
			Power Solutions for Large / Institutional Project Clients (Marine,
			Defence etc)
			After Sales Support
Overview	Retail Channel - Tractor spares, Oil, Batteries
Engine based Pump Sets
Business
	Electric Pumps (KOEL)
FY24 -
	Electric Pumps (LGM)
Call - Q4
Farm Equipment
- Earnings
Financial Services
KOEL

Business Segments

B2B Business Segment
Power Gen
	Industrial
Aftermarket
and
Distribution	International
	Business
B2C Business Segment
Water	Farm
Management
Mechanisation
Solutions
	Arka Group

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STANDALONE SALES HIGHLIGHTS - Q4 FY24 YoY

B2B Sales	Power Gen	Industrial
22%	1210	11%	518	28%
988	468	242	309
Q4 FY23	Q4 FY24	Q4 FY23	Q4 FY24	Q4 FY23	Q4 FY24
B2C Sales		WMS
10%	168			22%
153			153
Business Overview			125
Q4 FY24		Q4 FY23	Q4 FY24
Q4 FY23

Distribution & After

Market

19%
176	210
Q4 FY23	Q4 FY24
FMS
-45%
28
	15
Q4 FY23	Q4 FY24

International
70%	173
102
Q4 FY23	Q4 FY24

Standalone	Total Sales		1141	1,378
21%				186,
-		1,378		119,	13%
Q4 FY24	1,141
		10%
		Exports
-			1022,
Call			Domestic	1192,
		90%
-Earnings				87%
Q4 FY23	Q4 FY24		Q4 FY23	Q4 FY24
KOEL

			12	186
WMS + FMS	119	13
		7	62
Distribution & After	12
Market
Industrial	56	99
Power Gen		53
	Q4 FY23		Q4 FY24

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