V-Guard Industries Limited · NSE:VGUARD
V-Guard Industries — H1 FY2014 Earnings Presentation
23 slides from V-Guard Industries's earnings presentation, November 2013
Slide 1: V-Guard Industries Q2 & H1 FY2014 Earnings Presentation
V-Guard Industries Q2 & H1 FY2014 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 Company Overview MD’s Message Financia l Highlights – Q2 & H1 FY2014 Segment-w ise /G eogra phica l Breakup of Revenues Outlook About V-Guard Industrie s Strong Financia l Performance (FY08 – FY13) Broad-base d Growth across Segments (FY08 – FY13) Market Share Across Product Segmen
Slide 4: Company Overview
Company Overview • Electronics - Stabilizers, UPS and Digital UPS Comprehensive portfolio • Electricals - Pumps, House Wiring and Industrial Cables, Electric Water Heaters, Fans catering to the mass • Other launches include Solar Water Heaters, Induction cooktops, Switchgears consumption market • Ho
Slide 5: Managing Director's Message
Managing Director’s Message Commenting on the performance for Q2 FY2014, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “We have reported a subdued performance this quarter. Seasonality is a part of our business and sales of certain products were affected due to the
Slide 6: Key Highlights - Q2 & H1 FY14
Key Highlights - Q2 & H1 FY14 • Revenue growth of 7% YoY in Q2 FY14 – Improved power situation in South India and the extended monsoon season impacted sales of Digital UPS and Pumps – Further, performance has to be measured against a high base in Q2 FY13, when an extended summer season boosted sales
Slide 7: Financial Highlights (Q2 FY2014)
Financial Highlights (Q2 FY2014) Total Income (Rs. crore) Expenditure (Rs. crore) 334 310 286 314 Q2 FY13 Q2 FY14 Q2 FY13 Q2 FY14 EBITDA (Rs. crore) PAT (Rs. crore) 18 15 31 28 Q2 FY13 Q2 FY14 Q2 FY13 Q2 FY14 Key ratios (%) Q2 FY14 Q2 FY13 EBITDA Margin 8.4% 9.9% Net Margin 4.3% 5.7% COGS/ Total Ope
Slide 8: Financial Highlights (H1 FY2014)
Financial Highlights (H1 FY2014) Total Income (Rs. crore) Expenditure (Rs. crore) 742 690 574 633 H1 FY13 H1 FY14 H1 FY13 H1 FY14 EBITDA (Rs. crore) PAT (Rs. crore) 66 60 39 32 H1 FY13 H1 FY14 H1 FY13 H1 FY14 Key ratios (%) H1 FY14 H1FY13 EBITDA Margin 8.1% 10.4% Net Margin 4.3% 6.1% COGS/ Total Ope
Slide 9: Financial Highlights – B/S Perspective
Financial Highlights – B/S Perspective Balance Sheet Snapshot (Rs. crore) 30 September 2013 30 June 2013 30 September 2012 Net worth 294.5 279.2 249.3 Total debt 107.7 114.9 121.9 o Working capital 71.4 76.9 100.1 o Term loan 36.3 38.0 21.8 Acceptances 80.3 62.0 31.2 Fixed Assets 164.0 161.1 136.9 K
Slide 10: Segment-wise Breakup of Revenues - Q2 FY14 vs Q2 FY13
Segment-wise Breakup of Revenues - Q2 FY14 vs Q2 FY13 Q2 FY2014 Contribution Q2 FY2013 Contribution YoY growth Segment Products (Rs. cr.) (%) (Rs. cr.) (%) (%) Stabilizers 54.3 16.2% 50.3 16.1% 7.8% Electronics Standalone UPS 11.0 3.3% 15.1 4.8% -27.2% Digital UPS 19.4 5.8% 37.4 11.9% -48.2% Segment
Slide 11: Segment-wise Breakup of Revenues - H1 FY14 vs H1 FY13
Segment-wise Breakup of Revenues - H1 FY14 vs. H1 FY13 H1 FY2014 Contribution H1 FY2013 Contribution YoY growth Segment Products (Rs. cr.) (%) (Rs. cr.) (%) (%) Stabilizers 144.5 19.5% 127.8 20.2% 13.1% Electronics Standalone UPS 22.5 3.0% 26.0 4.1% -13.6% Digital UPS 82.7 11.1% 75.0 11.9% 10.3% Seg
Slide 12: Geographical Breakup of Gross Revenues
Geographical Breakup of Gross Revenues Q2 FY2014 Contribution Q2 FY2013 Contribution YoY growth Region (Rs. cr.) (%) (Rs. cr.) (%) (%) South 243.1 72% 247.2 77% -2% Non-South 96.4 28% 71.8 23% 34% Gross Revenues 339.6 100% 319.0 100% 6% H1 FY2014 Contribution H1 FY2013 Contribution YoY growth Region
Slide 13: Outlook
Outlook • Household consumption expected to grow at a significant pace over the next five years • Continuing power deficit in South India to augment sales of Stabilizers, UPS and Inverters Strong demand outlook • Boom in residential real estate markets in South India • Investments towards establishi
Slide 14: 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 15: Strong Financial Performance FY08-13
Strong Financial Performance FY08-13 Revenue EBITDA and EBITDA Margins 12.0% 1600.0 120 11.1% 11.1% 10.7% 12.0% 1,360.0 9.9% 11.0% 1400.0 100 10.0% 1200.0 9.0% 964.6 80 8.3%8.0% Rs. crore 1000.0 Rs. crore 7.0% 800.0 699.2 60 6.0% 600.0 5.0% 430.0 40 4.0% 400.0 278.5 317.1 3.0% 114.0 20 2.0% 30.8 35.
Slide 16: Strong Financial Performance FY08-13
Strong Financial Performance FY08-13 ROE ROCE Net Worth D/E 300 0.80 0.90 25.9 0.60 0.80 23.1 24.0 250 0.60 0.50 0.70 17.6 19.1 24.1 200 0.60 Rs. crore 16.9 23.0 0.30 0.20 0.50 20.0 150 18.0 0.40 100 0.30 13.7 0.20 FY2008 117.8 FY2009 126.5 FY2010 141.5 FY2011 172.0 FY2012 210.6 FY2013 261.3 12.4 50
Slide 17: Broad-based Growth across Segments FY08-13
Broad-based Growth across Segments FY08-13 Segment Products FY08 Contribution (%) FY13 Contribution (%) CAGR(%) Stabilizers 93.7 35.3% 237.8 17.5% 20.5% Electronics Standalone UPS 16.9 6.4% 48.3 3.6% 23.4% Digital UPS 0.0 0.0% 173.3 12.7% NA Segment Total 110.6 41.6% 459.4 33.8% 32.9% Pumps 56.1 21.
Slide 18: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* V-Guard Organized Production Distribution Channel Product Key Players Market Model Strategy Organised Unorganised Total Share Bluebird, Capri, Consumer Durable 400.00 800.00 1200.00 59% Logicstat, 100% Outsourced stores, Electrical and Pre
Slide 19: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* V-Guard Organized Production Distribution Channel Product Key Players Market Model Strategy Organised Unorganised Total Share Crompton Electrical and hardware Greaves, 900.00 1100.00 2000.00 23% 90% Outsourced Stores, Pump and Pipe Kirlosk
Slide 20: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* V-Guard Organized Production Distribution Channel Product Key Players Market Model Strategy Organised Unorganised Total Share Numeric, 160.00 240.00 400.00 30% APC, Outsourced Consumer Durable stores Emerson UPS Consumer Durable Microtek,
Slide 21: New Product Launches
New Product Launches Induction Cooker Switchgears & DBs • Successful launch of new products in the Kerala market • Induction cooktops launched in the Karnataka market last quarter • Revenues of Rs. 15 crore from induction cooktops and Rs. 12 crore from switchgears in FY13 • Delivering gross margins
Slide 22: Production Model
Production Model PVC Cable Factory LT Cable Factory Solar Water Heater Factory Stabilizer Manufacturing Units No. of Product Location Outsourcing Objectives Units Own Manufacturing Facilities • Asset light model outsourcing ~60% products PVC Wiring Cables 2 Coimbatore, Kashipur • Complete control ov
Slide 23: Thank You
THANK YOU