Creative Newtech Limited · NSE:CNL
Creative Newtech — Q3 FY24 Earnings Presentation
38 slides from Creative Newtech's earnings presentation, February 2024
Slide 1: Result Update Presentation Q3 & 9M FY24
Result Update Presentation Q3 & 9M FY24 Creative Newtech Limited (Formerly known as Creative Peripherals and Distribution Limited)
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by Creative Newtech Limited (the “Company”), formerly known as Creative Peripherals & Distribution Ltd., solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 3: Company at a Glance
3 Company at a Glance Diversified Product Portfolio 25+ 3,200+ 1992 1. Licensee of Honeywell Inc. Brands Products Started 2. 25+ Brands under various segments (FMSG+FMCT+FMEG+EB) Journey 3. 8,000+ Trusted partners 1,167 Cr * 8,000+ Market Cap Happy Channel Total 20+ branches in India Partners Over 3
Slide 4: Business Structure
4 Business Structure Diversified, Diversified,Value AddedBusiness Value Added Business Niche Product Brand Brand Licensing Licensing Niche Brand Distribution Ckart B2B E-Commerce Distribution • Honeywell License Holder offering vast suite of • Market entry specialist for niche brands offering • Ckar
Slide 5: About Honeywell
ABOUT HONEYWELL 5 ~1,300 Sites, ~70 Countries ~$36 BILLION in sales for 2022 More Than 129,000 Employees Charlotte, N.C. Headquarters 53% of sales outside U.S. Fortune 100 NYSE: HON PERFORMANCE SAFETY AND BUILDING AEROSPACE MATERIALS AND PRODUCTIVITY SOLUTIONS TECHNOLOGIES TECHNOLOGIES
Slide 6: Who is Honeywell?
WHO IS HONEYWELL? 6 Business Overview Aerospace Building Performance Safety and technologies materials and productivity technologies solutions $11.8 Billion $6.0 Billion $10.7Billion $6.9 Billion Great Positions In Good Industries Honeywell developed the first Honeywell began the Smart Homes Honeywe
Slide 7: Honeywell License
7 Honeywell License Brand Licensing Licensed by Honeywell for Rights on many Can manufacture and Aiming to get more Maintain Asset light model while contract manufacturing product designs/casts sell Honeywell branded international brands under expanding the business products in many APAC the licensi
Slide 8: Creative – Honeywell
8 Creative – Honeywell Exclusive rights to sell across 38 countries
Slide 9: Honeywell Business
9 Honeywell Business Tough Entry Barrier & Robust Growth Ahead Entry Barrier One of the biggest entry barrier to breakthrough in Honeywell is the long- drawn compliance process and product approval including certifications Approval Process The process of getting approval for each product is time con
Slide 10: Niche Product Portfolio
10 Niche Product Portfolio FMSG + FMCT + FMEG + EB Specialist in end-to- Well positioned in a fast growing Portfolio of 25+ world Command niche Continually enhancing Multi channel end solutions of country like India with an renowned brands, most value in market portfolio with high- network FMSG for
Slide 11: Our Brand Partners
11 Our Brand Partners Fast Moving Social- FMSG Media Gadgets Fast Moving Consumer FMCT Technology Fast Moving FMEG Electronics Goods EB Enterprise Business
Slide 12: Omni-Channel Sales
Omni-Channel Sales 12 General Trade Retail Sales Sales Channels Channels Corporate Online Extended Sales Channels D2C
Slide 13: B2B E-Commerce
13 B2B E-Commerce www.ckartonline.com Ckart Online digital B2B Captive Expands the Boosts customer-base With growing digitization eCommerce marketplace for Company’s without additional in industry, CKart paves platform subscribed product domain manpower the way for a future- business ready growth pa
Slide 14: Target Addressable Market
14 Target Addressable Market Growing Social Media Trend FMSG – Key Drivers for Growth • Consumer trends to capture every moment of social life & post live events has led 834 to multi-fold growth in personal-use, Internet connected devices Growing Social • Millennials tend to follow multiple hobbies
Slide 15: Q3 FY24 Financial Highlights – Standalone & Consolidated
15 Q3 FY24 Financial Highlights – Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore Q3 FY24 Q3 FY23 YoY % Q3 FY24 Q3 FY23 YoY % driven by Honeywell Revenue from Operations 490.18 405.89 510.80 421.24 and EB product Other Operation Income 5.51 7.73 5.51 7.73 segments T
Slide 16: 9M FY24 Financial Highlights – Standalone & Consolidated
16 9M FY24 Financial Highlights – Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore 9M FY24 9M FY23 YoY % 9M FY24 9M FY23 YoY % driven by EB and FMSG segments Revenue from Operations 1360.83 939.87 1408.97 979.09 Other Operational Income 11.50 20.19 11.50 20.19 Total
Slide 17: Consolidated Balance Sheet Highlights as on 30th September 2023
17 Consolidated Balance Sheet Highlights as on 30th September 2023 As on As on As on As on INR Crore st th INR Crore st th 31 March 2023 30 Sept 2023 31 March 2023 30 Sept 2023 Equity 126.16 193.10 Non-Current Assets 9.97 9.76 Equity Share Capital 12.60 14.05 Property, Plant & Equipment 9.57 9.34 Ot
Slide 18: Segmental Revenue
18 Segmental Revenue *Sales in Crore FMSG FMEG 71.96 60.37 1.46 49.31 49.87 49.14 1.29 0.54 0.22 0.05 FMCT EB 66.00 63.99 65.39 56.71 354.68 382.09 54.15 316.50 279.81 303.84 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterpr
Slide 19: High Growth, High Margin and Small Working Capital cycle – the Criteria
19 High Growth, High Margin and Small Working Capital cycle – the Criteria Q3 FY23 Q3 FY24 11.71% 14.09% 12.85% 11.10% 0.31% 0.01% 75.13% 74.80% FMSG FMCT FMEG EB
Slide 20: Segmental Revenue 9M FY23 vs 9M FY24
20 Segmental Revenue 9M FY23 vs 9M FY24 9M FY23 9M FY24 15.05% 12.88% 13.21% 65.55% 18.46% 0.06% 73.86% 0.94% FMSG FMCT FMEG EB
Slide 21: Quarterly Segmental Revenue QoQ
21 Quarterly Segmental Revenue QoQ *Sales in Crore FMSG FMEG 71.96 0.22 60.37 0.05 FMCT EB 65.39 382.09 303.84 56.71 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterprise Business
Slide 22: Nine Months Segmental Revenue YOY
22 Nine Months Segmental Revenue YOY *Sales in Crore FMSG FMEG 181.46 9.25 147.34 0.81 FMCT EB 186.08 1,040.61 641.79 180.71 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterprise Business
Slide 23: Q3 FY24 Consolidated Financial Highlights in Charts
23 Q3 FY24 Consolidated Financial Highlights in Charts Sales in Crore Revenue from Operations (in Cr) PAT (in Cr) 510.80 11.55 468.33 10.46 421.24 429.83 397.14 7.69 6.45 5.88 EBITDA (in Cr) 16.27 14.99 12.69 11.49 9.91
Slide 24: Annual Consolidated Financial Highlights FY23
24 Annual Consolidated Financial Highlights FY23 Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 80.08% 1402.25 45.12 74.15% 947.81 32.62 47.95% 18.73 526.32 16.82 38.31% 459.06 13.32 370.72 14.65% 26.28% 23.83% 11.36% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 ** FY23 ** PAT (Rs. Cr.) 27.25 105.17% 19.25 9.38
Slide 25: Consolidated Key Return Ratios
25 Consolidated Key Return Ratios RoE % RoCE % 22.15% 23.88% 20.38% 20.25% 23.21% 18.82% 16.93% 18.81% 17.55% 14.22% 16.00% 10.33% FY18 FY19 FY20 FY21 FY22 ** FY23 FY18 FY19 FY20 FY21 FY22 ** FY23 Focus on improving RoCE and long-term value creation *RoE = Net Profit/Net Worth | RoCE = EBIT/(Shareho
Slide 26: Key Strengths & Investment Rationale
26 Key Strengths & Investment Rationale Mix of experienced & young dynamic Focus on Products with High Growth, High workforce Margin & Small Working Capital cycle Exclusive licensee for Honeywell Strong return ratios & Asset-Light Addresses niche growing market across ➢ Significant growth from highe
Slide 27: Way Ahead
27 Way Ahead Brand #1 Brand Licensing & Geographical Expansion Licensing in ➢ Growing brand licensing line of business with long-standing association with Honeywell with extensive product portfolio New ➢ Expanding geographically in new countries across Middle East & APAC with required approvals & ce
Slide 28: Annexure
28 Annexure
Slide 29: Management Comment
Management Comment 29 “Performance in the third quarter of this fiscal was in line with expectations. Our growth trajectory has continued through this period, despite uncertainties in the global markets on a macro-level. We are seeing steady demand for several products which contributed to growth. O
Slide 30: Management Team
30 Management Team Ketan Patel Purvi Patel Vijay Advani Mohit Anand A technologist with a humble Mr. Advani is a seasoned background and an experience A woman with exceptional As the CEO of Secure Connection, Professional with 30+ years of 30+ of years. With capital not an foresight, Purvi Patel he
Slide 31: Management Team
31 Management Team Abhijit Kanvinde Amol Patil Upendra Singh Chartered Accountant with over 25 MBA in Marketing with Engineering Bachelor of Commerce from Ranchi years of strong and multi-industry in Electronics and Telecom, with over University, with nearly 30 years experience. Worked in companies
Slide 32: Quadrant Segmentation of Business
Quadrant Segmentation of Business 32 Products have been ranked into Quadrants based on returns and working capital turns: Focus is on Quadrant 1 by dedicating best QUADRANT 1 QUADRANT 2 resources towards it. HIGH MARGINS AND QUICK HIGH MARGINS AND MEDIUM Simultaneously, Company is also CYCLE CYCLE m
Slide 33: Strategic Focus Area & Criteria
33 Strategic Focus Area & Criteria Creative’s business model is primarily of optimizing working capital. Success of our business depends on achieving higher growth through higher margin products and quick working capital cycle Over last few quarters we have continuously shifted our resources towards
Slide 34: Journey so far…
34 Journey so far… 2021- 2023- 2020 22 24 ▪ Tie-up with ZEISS to distribute binoculars & monoculars ▪ Distribution agreement with Panasonic for ▪ Signed up with Lexar for Flash Memory & ▪ Extended agreement with Honeywell for air purifiers audio products accessories ▪ Agreement with Edelkrone for vi
Slide 35: Geographical Presence
Geographical Presence 35 Our Network We are present at following Locations Domestic Pune Vijayawada Varanasi Gurgaon • Pan India presence. Mumbai Hong Kong Bangalore Ahmedabad • Kolkata 31 branches across India. Ahmedabad • Over 320-strong highly skilled Delhi workforce across India – mix of Auranga
Slide 36: Driving Social Media Transformation through Digital Offerings
36 Driving Social Media Transformation through Digital Offerings Our Value Edition Price Information Network Access to Product Partnership Scale Content & What is and Skills Community needed? Customer Brand Strategy Experience Service Omni – Channel Marketing Customer experience Contract Manufacturi
Slide 37: Key Developments
37 Key Developments Fund Raise Activity Recent Brand Agreements In July 2023, Creative raised Rs. 80.10 cr through preferential allotment of • Signed agreement with Hyperice Inc. to distribute massage & muscle recovery warrants to members of the promoter and non-promoter group, including some produc
Slide 38: Thank You!
THANK YOU! www.creativenewtech.com