Kirloskar Oil Engines : Investor Presentation_September 2023

Earnings Call Presentation Q2 FY24 3rd November 2023

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

La-Gajjar Machineries	Kirloskar Americas	Arka Financial
(P) Ltd1
Holdings (P) Ltd5
Corporation2	(100%)
(100%)	(100%)

KOEL- Earnings Call - Q2 FY24 - KOEL Group

Optiqua Pipes &

Electricals (P) Ltd4

(100%)

ESVA Pumps India (P)

Ltd (49% JV)6

Arka Fincap Ltd3	Arka Investment
(99.998%)	Advisory Services (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
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

3

CONTENT

• STRATEGY
• BUSINESS OVERVIEW
• FINANCIAL OVERVIEW

4

OUR 2X-3Y STRATEGY

Looking to drive exponential growth over the next 3 years

2X-3Y Strategy: Grow 2 times in 3 years

2X-3Y Strategy Pillars

Revenue ₹ 65 Bn

@ double digit

EBITDA

	Goal		Actions driven
				by strategy
Strategy				Our progress, FY23
			Revenue ₹ 40.73 Bn
			@ 10.4% EBITDA
-
FY24				Where we were in FY22
			Revenue ₹ 32.60 Bn
- Q2
			@ 8.4% EBITDA
Call
KOEL- Earnings
			Time

Growth

Strategy

Channel & Path to Market

Technology

Roadmap

Operations

Excellence

People &

Talent

Development

5

WE ARE PROGRESSING WELL

We have made a beginning

19%		₹ 2,324
Top line growth (H1 YOY)		Cr Revenue (H1 FY24)

		11.7%		31%		₹ ~112 Cr
		EBITDA # Margin (H1 FY24)
			PAT # growth (H1 YOY)		Strong net cash* position
Call - Q2 FY24 - Strategy
	24%					5
Earnings-
						from operations
	EBITDA # growth (H1 YOY)
						consecutive quarters of over ₹ 1,000 Cr revenue
KOEL
* Net of debt; includes treasury investments and excludes unclaimed dividends.
	# Numbers excluding provision 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 - Q2 FY24 - Strategy

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

7

CONTENT

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

8

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 - Q2
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

9

STANDALONE SALES HIGHLIGHTS - Q2 FY 24 YoY

	B2B Sales	Power Generation	Industrial
	3%	904	-8%		5%
	878		393	360	223	235
	Q2 FY 23	Q2 FY 24	Q2 FY 23	Q2 FY 24	Q2 FY 23	Q2 FY 24
	B2C Sales			WMS
	19%				21%
BusinessOverview	120	143			116
		96

Distribution & After

Market
23%
150	184
Q2 FY 23	Q2 FY 24
	FMS
	12%
24	27

International
12%
112	125
Q2 FY 23	Q2 FY 24

Standalone	Q2 FY 23	Q2 FY 24		Q2 FY 23 Q2 FY 24
	Total Sales			998		1,047
		5%							141,			140,
-	998	1,047				14%			13%
- Q2 FY24			Exports
								857,
Call									Domestic	86%			907,
											87%
- Earnings
Q2 FY 23	Q2 FY 24			Q2 FY 23	Q2 FY 24
KOEL

Q2 FY 23 Q2 FY 24

	14	141	140
		9
FMS + WMS	12		10
Distribution & After	47		52
Market
Industrial
Power Gen	68		69
		Q2 FY 23	Q2 FY 24

10