V-Guard Industries Limited · NSE:VGUARD
V-Guard Industries — Q2 FY2018 Earnings Presentation
27 slides from V-Guard Industries's earnings presentation, 2017
Slide 1: V-Guard Industries Q2 & H1 FY2018 Earnings Presentation
V-Guard Industries Q2 & H1 FY2018 Earnings Presentation
Slide 2: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 3: Table of Contents
Table of Contents MD’s Message F i n a n c i al H i g h l i g ht s S e g m e n t - w i se / Ge o g r ap hi c a l B r e a k u p o f R e v e n ue s Outlook A n n e x ur e 3
Slide 4: Managing Director's Message
Managing Director’s Message Commenting on the performance for Q2 & H1 FY18, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “We have delivered a good second quarter with a topline growth of 15.3% YoY. Adjusted for the GST related price impact across our product catego
Slide 5: Key Highlights – Q2 FY2018
Key Highlights – Q2 FY2018 Revenue growth of 15.3% YoY Working capital cycle at 64 days in Q2 FY18 • Adjusted for GST related price changes, revenue growth for • Working capital cycle at 64 days in Q2 FY18 vs 71 days in Q2 the quarter stood at ~21% YoY FY17 • Broad-based growth across all product ca
Slide 6: Business Updates – Q2 FY18
Business Updates – Q2 FY18 • Roll-out of salesforce.com (a sales automation tool) pan India to enhance field productivity • Initiated Phase-II of project “Udaan” to enhance supply chain logistics • Launched gas cooktops during Onam season this quarter 6
Slide 7: Ind-AS Impact on V-Guard
Ind-AS Impact on V-Guard Key Ind-AS Adjustments • Turnover is net of cash discount & schemes (under IGAAP, the cash discounts were included in other expenses) • Excise duty to be grossed with turnover and shown as expense (under IGAAP, excise duty was netted with turnover) • ESOP valuation under fai
Slide 8: Financial Highlights (Q2 FY18 vs Q2 FY17)
Financial Highlights (Q2 FY18 vs Q2 FY17) Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS . Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 180 69 46 560 486 145 55 37 Q2 FY17 Q2 FY18 Q2 FY
Slide 9: Financial Highlights (H1 FY18 vs H1 FY17)
Financial Highlights (H1 FY18 vs H1 FY17) Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS . Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 1,129 334 123 1,047 304 105 80 70 H1 FY17 H1 FY18
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective Balance Sheet Snapshot (Rs. cr) 30 Sep 2017 30 June 2017 30 Sep 2016 Net worth 677.0 662.1 555.0 Gross debt 4.5 4.9 7.4 Current Investments 101.0 143.4 79.4 Cash and cash equivalents 6.2 6.5 3.6 Net Cash Position (Rs. crore) 102.6 145.2 75.5 Fixed Ass
Slide 11: Segment-wise Breakup of Revenues – Q2 FY18 vs Q2 FY17
Segment-wise Breakup of Revenues – Q2 FY18 vs Q2 FY17 Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS. Q2 FY2018 Q2 FY2017 Category Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Electronics 1
Slide 12: Segment-wise Breakup of Revenues – H1 FY18 vs H1 FY17
Segment-wise Breakup of Revenues – H1 FY18 vs H1 FY17 Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS. H1 FY2018 H1 FY2017 Category Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Electronics 3
Slide 13: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 378 335 486 560 182 151 31% 32% South 69% 68% Non-South Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 South Non-South Contribution (%) 684 718 411 1,047 1,129 363 35% 36% South 65% 64% Non-South H1 FY17 H1 FY18 H1 FY17 H1 FY18 H1 FY
Slide 14: Business Outlook
Business Outlook • The Company is confident of achieving a 15% CAGR growth over the next few years. • The Company envisages adding 15,000 retailers across the country over the next five years with higher addition in the non-South region. The Company is also looking to use online platforms like sales
Slide 15: Annexure
Annexure
Slide 16: Company Overview
Company Overview • Electronics - Stabilizers, UPS and Digital UPS C o m p r e he n s iv e p o r t f o li o • Electricals - Pumps, House Wiring and Industrial Cables, Electric Water Heaters, Fans catering to the mass • Other products include Solar Water Heaters, Induction cooktops, Switchgears and Mi
Slide 17: Production Model
Production Model PVC Cable Factory LT Cable Factory Solar Water Heater Factory Stabilizer Manufacturing Units Product No. of Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~60% products PVC Wiring Cables 2 Coimbatore, Kashipur LT Cables 1 Coimbator
Slide 18: Financial Highlights (FY12-17)
Financial Highlights (FY12-17) Revenue EBITDA and EBITDA Margins PAT and PAT Margins CAGR – 17% CAGR – 20% CAGR – 24% 2,151 250 15.0% 7.1% 8.0% 160 1,746 1,862 200 9.9% 12.0% 6.0% 9.9% 140 5.3% 7.0% 1,518 8.3% 8.4% 120 4.7% 4.6% 6.0% 1,360 Rs. crore Rs. crore Rs. crore 150 9.0% 100 4.1% 5.0% 965 10.
Slide 19: Operational Highlights (FY12-17)
Operational Highlights (FY12-17) Ad Spends and as a % of Sales Expanding Geographic Presence CAGR – 18% 100 15.0% 21% 25% 30% 80 12.0% 33% 33% 35% 60 9.0% 40 4.2% 4.3% 3.9% 4.0% 4.3% 6.0% 79% 75% 70% 67% 67% 65% 4.4% 20 3.0% 41 58 60 69 80 95 0 0.0% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2012 F
Slide 20: Segment-wise Breakup of Revenues – FY17 vs FY16
Segment-wise Breakup of Revenues – FY17 vs FY16 FY2017 FY2016 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 436.2 20.3% 369.1 19.8% 18.2% UPS (Digital + Standalone) 235.1 10.9% 193.6 10.4% 21.4% Pumps 268.5 12.5% 210.0 11.3% 27.9% Cables & Wires (PVC + LT)
Slide 21: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 1,246 1,407 744 1,862 2,151 616 33% 35% South 67% 65% Non-South FY16 FY17 FY16 FY17 FY16 FY17 21 Note: Numbers are in IGAAP.
Slide 22: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Micro tech, Livguard, Bluebird, Consumer Durable stores, 700.00 550.00 1,250.00 Capri, 90% Outsourced Electrical and Hardware Logicstat, Stores
Slide 23: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Crompton Electrical and hardware Greaves, 5,000.00 5,000.00 10,000.00 90% Outsourced Stores, Pump and Pipe Kirloskar, CRI, fittings Stores Texmo
Slide 24: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Numeric, 160.00 240.00 400.00 APC, Outsourced Consumer Durable stores Emerson UPS Microtek, Consumer Durable stores, Luminous, Electrical and Ha
Slide 25: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Distribution Channel Product Key Players Model Strategy Organized Unorganized Total Havells, 1,400.00 600.00 2,000.00^ Legrand, 100% Outsourced Electrical stores L&T, ABB SWITCHGEAR Butterfly (glass top), Consumer Durables / 1,0
Slide 26: About V-Guard Industries
About V-Guard Industries V-Guard Industries Limited (BSE:532953, NSE: VGUARD) is a Kochi based company, incepted in 1977 by Kochouseph Chittilapilly to manufacture and market Voltage stabilizers. The Company has since then established a strong brand name and aggressively diversified to become a mult
Slide 27: Thank You
THANK YOU