Stove Kraft Ltd. · NSE:STOVEKRAFT
Stove Kraft — H1 FY22 Earnings Presentation
37 slides from Stove Kraft's earnings presentation, November 2021
Slide 1: Stove Kraft Limited Investor Presentation November 2021
STOVE KRAFT LIMITED NEW-AGE SOLUTIONS FOR THE NEW-AGE HOME Stunning, elegant products that speak out your class INVESTOR PRESENTATION November 2021
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Stove Kraft Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or induce
Slide 3: Q2 & H1 FY22 Financial Performance
Q2 & H1 FY22 Financial Performance
Slide 4: Strong H1 FY22 Performance
Strong H1 FY22 Performance Revenue from Operations EBITDA^ Profit Before Tax (PBT) Profit After Tax (PAT)* Rs. 577 crores Rs. 66 crores Rs. 46 crores Rs. 36 crores +75% +38% +60% +28% Margin Profile No. of Outlets Revenue Breakup : H1 FY22 EBITDA PAT Margins 11,452 63,428 Margins^ 51,976 24.2% 29.8%
Slide 5: Strong Q2 FY22 Performance
Strong Q2 FY22 Performance Revenue from Operations EBITDA^ Profit Before Tax (PBT) Profit After Tax (PAT)* Rs. 363 crores Rs. 43 crores Rs. 32 crores Rs. 23 crores +53% +10% +14% -19% Margin Profile No. of Outlets Revenue Breakup : Q2 FY22 EBITDA PAT Margins 8,247 63,428 Margins^ 55,181 25.6% 29.9%
Slide 6: Increased Volumes during H1 FY22
Increased Volumes during H1 FY22 Pressure Cooker Gas Cooktops Induction Cooktops +53% +81% +31% +35% +53% +82% 10.9 16.2 3.0 4.1 3.1 5.2 2.3 3.0 7.2 2.0 8.9 2.9 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Non Stick Cookware LED Small Appliances/Mixers/Others +
Slide 7: Improving Efficiencies
Improving Efficiencies Reducing Trading Sales (% of Sales) Reducing Debt (Rs. Crs.)* 22% 20% 338.0 16% 14% 52.5 53.4 Q2FY21 Q2FY22 H1FY21 H1FY22 Mar-20 Mar-21 Sep-21 RoCE RoE Working Capital (in Days)^ Working Inventory Capital 37 27 23 Debtors 33.6% 21.6% (in Days) Creditors 82 86 75 64 66 66 56 36
Slide 8: Profit & Loss Statement – Q2 & H1 FY22
Profit & Loss Statement – Q2 & H1 FY22 Profit & Loss Statement (Rs. Crs.) Q2 FY22 Q2 FY21 Y-o-Y H1 FY22 H1 FY21 Y-o-Y Revenue from Operations 362.8 236.8 53% 577.0 328.8 75% Cost of Materials Consumed 217.4 98.4 346.5 160.0 Purchase of stock-in-trade 32.4 50.5 50.9 61.5 Changes in Inventories of Fin
Slide 9: Balance Sheet as on 30th September 2021
Balance Sheet as on 30th September 2021 EQUITY AND LIABILITIES (Rs. Crs.) 30-Sep-21 31-Mar-21 ASSETS 30-Sep-21 31-Mar-21 Equity share capital 32.6 32.6 Property, plant and equipment 264.2 217.7 Other equity 305.1 270.1 Intangible Assets 2.9 3.2 Total Equity 337.6 302.7 Capital Work in Progress 11.7
Slide 10: Cash Flow Statement as on 30th September 2021
Cash Flow Statement as on 30th September 2021 Cash Flow Statement (Rs. Crs.) Sep-21 Mar-21 Cash Flow from Operating Activities Profit before Tax 45.6 81.2 Adjustment for Non-Operating Items -20.5 -36.8 Operating Profit before Working Capital Changes 66.0 117.9 Changes in Working Capital -29.8 -8.1 C
Slide 11: Introducing Distributor Management System
Introducing Distributor Management System Tally Connect and DMS Insights on basis of this picks up Pigeon data will help distributor Why DMS products billing data grow Improve operations DMS Insights and provide effective Improved inventory Information on the sales and inventory management leading r
Slide 12: Backward Integration of our Facility
Backward Integration of our Facility Pressure Cooker Gasket Manufacturing Plant Glass Lid Manufacturing Plant • Backward integrated to now make all our pressure cooker gaskets in • At 32,000 lids a day we have our 100% requirement being house covered by this plant • The facility has a testing and fo
Slide 13: About Stove Kraft Limited
About Stove Kraft Limited
Slide 14: About Stove Kraft Limited
About Stove Kraft Limited Manufacture and retail of a Well equipped backward wide and diverse suite of integrated manufacturing kitchen solutions under Pigeon, Headquartered in facilities Gilma, and Black+Decker Bengaluru, Karnataka brands • Bengaluru (Karnataka) Retail lighting solutions under • Ba
Slide 15: Key Milestones
Key Milestones 1999 2001 2003 2008 2010 Investments by SIDBI Incorporated as Stove Granted trademark Granted trademark First Investment by Kraft Pvt. Limited registrations for Gilma registrations for Received factory Sequoia Pigeon license for unit 1 of the Bengaluru Facility 2014 2015 2018 2019 202
Slide 16: Competitive Strengths
Competitive Strengths One stop shop for well recognised, award winning portfolio of 1 kitchen solutions brands with a diverse range of products across consumer preferences and consistent focus on innovation Widespread, well connected distribution network with a presence 2 across multiple retail chan
Slide 17: Diverse range of products across consumer preferences
1. Diverse range of products across consumer preferences… • Cookware–Pressure cooker, wonder cast cookware, non-stick cookware, electric rice cookers and titanium hard anodized cookware LPG Stoves • Small appliances –Food processors, juicers, hand blenders, hand mixers, • Cooktops and other kitchen
Slide 18: …with continuous focus on innovations
1. …with continuous focus on innovations Consistent launch of innovative products Upcoming Launches Turbo Chopper Feather Touch Mixer Grinder Super Cooker Super Storm Advanced Registered design with customizable With forced air-cooling technology products into multiple utilities Personal Blender Pro
Slide 19: Well connected distribution network: Sales Services Framework
2. Well connected distribution network… ◼ Implemented BIZOM for tracking and capturing movement of field sales executives and service engineers on real time basis Sales Services Framework ◼ Utilise DMS to track secondary and tertiary sales and maintain inventory level at the distributor’s centre ◼ D
Slide 20: …with huge exports opportunity
2. … with huge exports opportunity 12 Export Countries UK Netherlands USA Kuwait 2 Countries Bahrain Iran Qatar UAE Nepal Mexico India OEM Partnerships Sri Lanka Philippines Uganda 9% Tanzania Stovekraft (OEM) Pigeon Export Sales % Head Quartered 20
Slide 21: State of the Art Manufacturing Facilities with focus on quality
3. State of the Art Manufacturing Facilities with focus on quality Baddi, Himachal Pradesh ◼ Dedicated in-house R&D facility Comprising of 13 personnel and tie-ups with foreign companies for technology enablement ◼ Focus on quality is maintained at all stages ISO 9001:2015 certified Sourcing of
Slide 22: Wide range of branding and marketing
4. Wide range of branding and marketing Brand popularity and recall value is maintained by a wide range of marketing and advertising activities coordinated by in-house team of 15 personnel • in-shop displays, merchandising, kiosks, live demo stands and social media marketing • continuously engage wi
Slide 23: Professional Management
5. Professional Management Mr. Rajendra Gandhi, Managing Director • Founder of Stove Kraft with over 21 years of experience • Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances in India • Continues to be closely involved in the day-to-day affairs of the Company an
Slide 24: Backed by Experienced Board
5. Backed by Experienced Board Ms. Shubha Rao Mayya, Independent Director Mr. Rajendra Gandhi, Managing Director Holds a bachelor’s degree in commerce from the University of Mumbai and Founder of Stove Kraft with over 21 years of experience is a chartered accountant with the Institute of Chartered A
Slide 25: Growth Strategies
Growth Strategies Scale up branding, promotional ◼ Increased advertising, factory visits for trade partners, increasing digital presence and engagements, and digital activities generating contemporary educational content and engaging in brand associations Expand our portfolio in the ◼ We propose to
Slide 26: Shift in Consumption Patterns and Favourable Governments Policies
Shift in Consumption Patterns and Favourable Governments Policies Indian Consumer Appliance Market expected to grow @CAGR of ~9% Key Growth Drivers Indian Appliance and (INR Bn) Kitchen Appliances Market Consumer Electronics (ACE) Market LCA SCA Non Stick Cookware Moving towards Aspirational Lifesty
Slide 27: Indian Large & Small Cooking Appliance Market
Indian Large & Small Cooking Appliance Market Increasing Market for Large Cooking Appliances (LAC) Increasing Trend by Sub Segments – Value (INR Billion) Large Cooking Appliances 21,761 8 19,955 18,313 7 16,817 52 14,209 15,453 6 45 6 39 5 34 53 202 5 29 46 SKL is the market 179 25 39 159 30 34 lead
Slide 28: Non-Stick Cookware and Indian Household Utility Products
Non – Stick Cookware and Indian Household Utility Products Increasing Market for Non-Stick Cookware Types of Non-Stick Cookware Used (%) in 2020 11,389 74.1% 10,367 16.8% 67.0% 9,437 56.2% 8,590 7,819 9.9% 7,117 35.1% 21.0 6.4% 18.0 1.9% 1.3% 15.4 11.3 13.2 9.7 Frying Pan Tawa Appachetty Cookware Ka
Slide 29: Awards & Recognition
Awards & Recognition Awarded the ‘Gold Award’ by Quality Circle Forum of Awarded ‘India’s Most Admired Brand 2016’ by White India (Bengaluru chapter) in the years 2013 and 2014 Page International 29
Slide 30: CSR Activities
CSR Activities Enriching Lives In an area that was suffering from the shortage of one of the most basic needs of life, we worked to alleviate the pain of the people, however much we could. Stove Kraft saw to the drilling of a bore- well for the local village in order to meet the water-needs of the v
Slide 31: Historical Financials
Historical Financials
Slide 32: Strong track record and financial stability
Strong track record and financial stability Revenues (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) 857 113 81 641 670 524 30 34 1 3 10 -12 FY 2018 FY 2019 FY 2020 FY21 FY 2018 FY 2019 FY 2020 FY21 FY 2018 FY 2019 FY 2020 FY21 Gross Profit Margins EBITDA Margins PAT Margins 35.0% 13.2% 9.5% 34.0% 32.5%
Slide 33: Strong track record and financial stability
Strong track record and financial stability RoCE 32.1% Working Capital (in Days) 7.8% 9.2% Working 2.1% 38 38 37 28 Capital (in Days) Mar-18 Mar-19 Mar-20 Mar-21 86 82 80 Cash Flow from Operations (Rs. 76 70 75 64 66 Crs.) 56 48 49 36 110 Mar-18 Mar-19 Mar-20^ Mar-21^ 11 13 16 Inventory Debtors Cred
Slide 34: Historical Profit & Loss Statement
Historical Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) FY21 Mar-20 Mar-19 Mar-18 Revenue from Operations 857.4 669.9 640.9 523.7 Cost of Materials Consumed 441.9 323.2 317.5 241.1 Purchase of stock-in-trade 125.2 128.8 132.6 120.3 Changes in Inventories of Finished Goods and Work in P
Slide 35: Historical Balance Sheet
Historical Balance Sheet EQUITY AND LIABILITIES (Rs. Crs.) 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 Equity share capital 32.6 24.7 24.7 18.9 Other equity 270.2 -83.4 -88.7 -199.0 Total Equity 302.8 -58.7 -63.7 -179.9 Financial liabilities Borrowings 20.7 204.8 210.0 311.3 Other Financial Liabilities
Slide 36: Historical Balance Sheet
Historical Balance Sheet ASSETS 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 Property, plant and equipment 217.7 193.4 178.7 182.1 Capital work-in-progress 19.1 4.2 0.9 0.6 Intangible assets 3.2 3.6 1.2 0.6 Financial Assets Investments 0.0 0.9 0.0 0.0 Other Financial assets 5.3 5.0 5.1 3.8 Non-Current Ta
Slide 37: Thank You
Thank You Investor Relations Advisors : CIN: L29301KA1999PLC025387 Contact Person: Mr. Deven Dhruva Ms. Neha Shroff Email Address: +91 9833373300 +91 7738073466 Mr. Elangovan S., CS elangovan.s@stovekraft.com deven.dhruva@linkintime.co.in neha.shroff@linkintime.co.in