Goodyear India
#GoodyearIndia
#TechnoFunda
#Fibonalysis
Presence in India: 90 years+
Number of Plants: 02 (Ballabgarh and Aurangabad)
Tyres supplied to: Passenger Car Segment (pioneer in introducing tubeless radial tyres in this segment) & Farm Segment
#GoodyearIndia
#TechnoFunda
#Fibonalysis
Presence in India: 90 years+
Number of Plants: 02 (Ballabgarh and Aurangabad)
Tyres supplied to: Passenger Car Segment (pioneer in introducing tubeless radial tyres in this segment) & Farm Segment
1/n
Goodyear manufactures automotive tyres viz. farm tyres and commercial truck tyres at its Ballabgarh plant. It also trades in “Goodyear” passenger car tyres (Radial) for Consumer business which are manufactured by Goodyear South Asia Tyres Private Ltd (‘GSATPL’), Aurangabad.
Goodyear manufactures automotive tyres viz. farm tyres and commercial truck tyres at its Ballabgarh plant. It also trades in “Goodyear” passenger car tyres (Radial) for Consumer business which are manufactured by Goodyear South Asia Tyres Private Ltd (‘GSATPL’), Aurangabad.
2/n
Other products which the Company markets and sells include tubes and flaps.
Sales performance during the year:
Tyres: 1654.19 cr
Tubes: 86.60 cr
Flaps: 0.31 cr
Consumer replacement business delivered a strong performance by growing faster than the industry in FY 19-20.
Other products which the Company markets and sells include tubes and flaps.
Sales performance during the year:
Tyres: 1654.19 cr
Tubes: 86.60 cr
Flaps: 0.31 cr
Consumer replacement business delivered a strong performance by growing faster than the industry in FY 19-20.
3/n
This was a result of key initiatives as mentioned below:
i) Strengthening the product portfolio by launching two flagship products i.e. Assurance Duraplus 2 in the mid passenger car segment and Wrangler AT SilentTrac in the SUV segment.
This was a result of key initiatives as mentioned below:
i) Strengthening the product portfolio by launching two flagship products i.e. Assurance Duraplus 2 in the mid passenger car segment and Wrangler AT SilentTrac in the SUV segment.
4/n
(ii) Enhancing consumer experience by making Goodyear easy to buy and increasing the reach and distribution footprint.
(iii) Growth in brand salience through brand building activities including traditional and digital.
(ii) Enhancing consumer experience by making Goodyear easy to buy and increasing the reach and distribution footprint.
(iii) Growth in brand salience through brand building activities including traditional and digital.
5/n
After a turbulent year in the tractor industry, company is again seeing short to mid-term headwinds in demand for Financial Year 2020- 21 and industry is expected to de-grow by 8-10% in 2020-21 (Source: Crisil).
After a turbulent year in the tractor industry, company is again seeing short to mid-term headwinds in demand for Financial Year 2020- 21 and industry is expected to de-grow by 8-10% in 2020-21 (Source: Crisil).
6/n
The mid to long-term outlook of the farm tyre industry continue to be positive with an expected growth of 6%-8% (source: ICRA) due to following factors:
(i) Agriculture contribution to GDP at ~17%; (ii) Strong focus of the Government to enhance rural income through enhanced
The mid to long-term outlook of the farm tyre industry continue to be positive with an expected growth of 6%-8% (source: ICRA) due to following factors:
(i) Agriculture contribution to GDP at ~17%; (ii) Strong focus of the Government to enhance rural income through enhanced
7/n
MSPs (‘Minimum Support Price’);
(iii) Lower tractor penetration driving and increasing trend towards mechanization. (Source: Crisil & ICRA)
The passenger tyre industry is expected to continue witnessing headwinds in 2020 due to the Covid-19 pandemic.
MSPs (‘Minimum Support Price’);
(iii) Lower tractor penetration driving and increasing trend towards mechanization. (Source: Crisil & ICRA)
The passenger tyre industry is expected to continue witnessing headwinds in 2020 due to the Covid-19 pandemic.
8/n
The Company is a leading player in the India farm tyre market. Its major strength is that Goodyear is a strong global brand in a category dominated by local players.
The Company is a leading player in the India farm tyre market. Its major strength is that Goodyear is a strong global brand in a category dominated by local players.
9/n
The Company has a high share of business with its OE customers which helps leverage strong consumer pull in the replacement market. The Company works with its key OEM customers on Raw Material Index (RMI) based pricing, driving trust and transparency.
The Company has a high share of business with its OE customers which helps leverage strong consumer pull in the replacement market. The Company works with its key OEM customers on Raw Material Index (RMI) based pricing, driving trust and transparency.
10/n
Global Tractor Sales:
2015: India: 4,84,000
China: 5,57,000
2019: India: 7,24,000
China: 3,80,000
the Company has limited presence in Commercial category (Truck & Bus) which contributes almost half of the tyre industries’ contribution.
Global Tractor Sales:
2015: India: 4,84,000
China: 5,57,000
2019: India: 7,24,000
China: 3,80,000
the Company has limited presence in Commercial category (Truck & Bus) which contributes almost half of the tyre industries’ contribution.
11/n
This limits its ability for portfolio selling and ability to mitigate risk of the Farm category.
The strong government budgetary thrust together with positive monsoon forecast by IMD augur well for the agricultural economy.
This limits its ability for portfolio selling and ability to mitigate risk of the Farm category.
The strong government budgetary thrust together with positive monsoon forecast by IMD augur well for the agricultural economy.
12/n
Current water storage levels are ~10% higher in key reservoirs over the last year. This will help a Kharif crop sowing. There are some near term headwinds due to OEM Industry de-growth & Covid-19 outbreak which may impact the industry.
Current water storage levels are ~10% higher in key reservoirs over the last year. This will help a Kharif crop sowing. There are some near term headwinds due to OEM Industry de-growth & Covid-19 outbreak which may impact the industry.
13/n
The consumer tyre industry continues to witness a shift in demand from value to mid passenger car segment and similarly from mid to premium cars, thus fueling growth in these segments which are expected to create opportunities for the business to grow profitably.
The consumer tyre industry continues to witness a shift in demand from value to mid passenger car segment and similarly from mid to premium cars, thus fueling growth in these segments which are expected to create opportunities for the business to grow profitably.
14/n
The Company is expecting the farm economy to rebound post lifting of lockdown due to Covid-19, based on a favorable monsoon outlook and high focus from the government. This should lead to a sustained good performance from the Farm business.
The Company is expecting the farm economy to rebound post lifting of lockdown due to Covid-19, based on a favorable monsoon outlook and high focus from the government. This should lead to a sustained good performance from the Farm business.
15/n
In addition, higher mechanization will further support growth in this category.
Driving distribution expansion, building channel engagement, strong customer service and brand building with a focus on point of sale will be the key priorities in 2020-21.
In addition, higher mechanization will further support growth in this category.
Driving distribution expansion, building channel engagement, strong customer service and brand building with a focus on point of sale will be the key priorities in 2020-21.
16/n
Total number of Employees: 933
The percentage increase in the median remuneration of employees is 13.26%.
The average annual increase made in the salary of employees other than the managerial personnel in the FY was 10.24% and increase in managerial personnel was 10.43%.
Total number of Employees: 933
The percentage increase in the median remuneration of employees is 13.26%.
The average annual increase made in the salary of employees other than the managerial personnel in the FY was 10.24% and increase in managerial personnel was 10.43%.
17/n
Net Revenue of Rs. 330.47 cr (March 31, 2019 - Rs. 368.14 cr) are derived from a single external customer. No other single customer contributed 10% or more to the revenue.
Debtors Day: 7.9 vs 7.7
Inventory Turnover: 10.4 vs 10.7
Interest Coverage Ratio: 30.4 vs 53.7
Net Revenue of Rs. 330.47 cr (March 31, 2019 - Rs. 368.14 cr) are derived from a single external customer. No other single customer contributed 10% or more to the revenue.
Debtors Day: 7.9 vs 7.7
Inventory Turnover: 10.4 vs 10.7
Interest Coverage Ratio: 30.4 vs 53.7
18/n
Current Ratio: 2.7 vs 2.3
Debt Equity Ratio: 0.4 vs 0.5
OPM 4.9% vs 6.5%
NPM 4.9% vs 5.4%
Current Ratio: 2.7 vs 2.3
Debt Equity Ratio: 0.4 vs 0.5
OPM 4.9% vs 6.5%
NPM 4.9% vs 5.4%
19/n
YoY Numbers:
Revenue: 1745.57 cr vs 1911.91 cr -9%
Operating Income: 85.64 cr vs 123.45 cr -31%
EBITDA 135.74 cr vs 164.48 cr -17.47%
PBT 116.84 cr vs 158.14 cr -26%
PAT 88.84 cr vs 102.07 cr -12.96%
EPS 38.51 vs 44.25 -13%
YoY Numbers:
Revenue: 1745.57 cr vs 1911.91 cr -9%
Operating Income: 85.64 cr vs 123.45 cr -31%
EBITDA 135.74 cr vs 164.48 cr -17.47%
PBT 116.84 cr vs 158.14 cr -26%
PAT 88.84 cr vs 102.07 cr -12.96%
EPS 38.51 vs 44.25 -13%
Attached Technical Chart gives a perspective of stock outlook based on trend and patterns.
Chart is for educational purpose.
Request to consult expert advise in case required.
Chart is for educational purpose.
Request to consult expert advise in case required.
