V-Guard Industries Limited · NSE:VGUARD
V-Guard Industries — Q2 FY2016 Earnings Presentation
24 slides from V-Guard Industries's earnings presentation, 2015
Slide 1: V-Guard Industries Q2 FY2016 Earnings Presentation
V-Guard Industries Q2 FY2016 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 C o m p a ny O v e r v i e w 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: 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 5: Managing Director's Message
Managing Director’s Message Commenting on the performance for Q2 FY16, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “Our topline performance this quarter was impacted by some macro influences including a shorter summer season, weak housing demand and pressure on co
Slide 6: Key Highlights – Q2 FY2016
Key Highlights – Q2 FY2016 Revenue growth flat YoY at Rs. 433 crore Working capital improves by 5 days to 76 days in Q2 FY16 • Weak consumer sentiment attributed to the muted growth • Inventory days improve by 24 days YoY to 64 days • Wires segment impacted on account of lower realisations • Decline
Slide 7: Financial Highlights (Q2 FY2016 vs Q2 FY2015)
Financial Highlights (Q2 FY2016 vs Q2 FY2015) Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 431 433 116 124 38 23 37 19 Q2 FY15 Q2 FY16 Q2 FY15 Q2 FY16 Q2 FY15 Q2 FY16 Q2 FY15 Q2 FY16 Key ratios (%) Q2 FY16 Q2 FY15 Gross Margin 28.7% 26.9% EBITDA Margin 8.8% 8.5% Net Margi
Slide 8: Financial Highlights (H1 FY2016 vs H1 FY2015)
Financial Highlights (H1 FY2016 vs H1 FY2015) Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 909 933 264 78 83 238 48 41 H1 FY15 H1 FY16 H1 FY15 H1 FY16 H1 FY15 H1 FY16 H1 FY15 H1 FY16 Key ratios (%) H1 FY16 H1 FY15 Gross Margin 28.3% 26.1% EBITDA Margin 8.9% 8.6% Net Margi
Slide 9: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective Balance Sheet Snapshot (Rs. crore) 30 September 2015 30 June 2015 30 September 2014 Net worth 427.8 403.6 360.4 Total debt 38.6 52.5 129.1 o Working capital 12.5 24.0 93.2 o Term loan 26.1 28.5 35.9 Acceptances 22.6 33.5 71.6 Key Ratios 30 September 2
Slide 10: Segment-wise Breakup of Revenues – Q2 FY16 vs Q2 FY15
Segment-wise Breakup of Revenues – Q1 FY16 vs Q1 FY15 Q2 FY2016 Q2 FY2015 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 71.6 16.5% 67.9 15.7% 5.5% UPS (Digital + Standalone) 48.4 11.2% 53.6 12.4% -9.6% Electronics Segment Total 120.0 27.7% 121.4 28% -1.2%
Slide 11: Segment-wise Breakup of Revenues – H1 FY16 vs H1 FY15
Segment-wise Breakup of Revenues – H1 FY16 vs H1 FY15 H1 FY2016 H1 FY2015 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 191.2 20.5% 178.9 19.7% 6.9% UPS (Digital + Standalone) 107.9 11.6% 136.6 15.0% -21.0% Electronics Segment Total 299.2 32.1% 315.5 35% -
Slide 12: Geographical Breakup of Gross Revenues
Geographical Breakup of Gross Revenues South Non-South Contribution (%) 291 300 431 433 3% 140 134 33% 31% -4.7% South 67% 69% Non-South Q2 FY15 Q2 FY16 Q2 FY15 Q2 FY16 Q2 FY15 Q2 FY16 South Non-South Contribution (%) 608 608 301 325 909 933 0% 33% 35% South 67% 65% Non-South H1 FY15 H1 FY16 H1 FY15
Slide 13: Outlook
Outlook Distribution Advertising Working Capital Financial Industry Drivers Network Expenditure Efficiencies Performance • Strong demand from • To increase more • Continued investments • Target to reduce cash • Topline growth housing construction retailers below existing in advertising and conversio
Slide 14: Annexure
Annexure
Slide 15: Production Model
Production Model PVC Cable Factory LT Cable Factory Solar Water Heater Factory Stabilizer Manufacturing Units No. of Product Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~60% products PVC Wiring Cables 2 Coimbatore, Kashipur • Complete control ov
Slide 16: Financial Highlights (FY11-15)
Financial Highlights (FY11-15) Revenue EBITDA and EBITDA Margins PAT and PAT Margins CAGR – 26% CAGR – 16% CAGR – 16% 1,746 160 15.0% 1,518 140 10.7% 80 5.6% 7.0% 1,360 9.9% 12.0% 70 5.3% 6.0% 120 4.7% 4.6% 8.3% 7.9% 60 4.1% 5.0% Rs. crore Rs. crore Rs. crore 965 100 9.0% 50 4.0% 699 80 40 8.4% 6.0%
Slide 17: Operational Highlights (FY11-15)
Operational Highlights (FY11-15) Ad Spends and as a % of Sales Expanding Geographic Presence CAGR – 26% 80 15.0% 22% 21% 25% 30% 12.0% 33% 60 9.0% 40 4.0% 4.2% 4.3% 3.9% 4.0% 6.0% 78% 79% 75% 70% 67% 20 3.0% 27 41 58 60 69 0 0.0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015
Slide 18: Segment-wise Breakup of Revenues – FY15 vs FY14
Segment-wise Breakup of Revenues – FY15 vs FY14 FY2015 FY2014 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 326.8 19% 266.4 17.6% 22.7% UPS (Digital + Standalone) 222.1 13% 184.0 12.1% 20.7% Electronics Segment Total 548.9 31% 450.4 30% 21.9% Pumps 189.0 1
Slide 19: Geographic Breakup of Revenues – FY15 vs FY14
Geographic Breakup of Revenues – FY15 vs FY14 South Non-South Contribution (%) 1,175 581 1,538 1,082 1,756 456 30% 33% South 70% 67% Non-South FY14 FY15 FY14 FY15 FY14 FY15 19
Slide 20: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organised Unorganised Total Bluebird, Capri, Consumer Durable stores, 400.00 800.00 1,200.00 Logicstat, 100% Outsourced Electrical and Hardware Premier, Stores Everest STAB
Slide 21: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organised Unorganised Total Crompton Electrical and hardware Greaves, 900.00 1,100.00 2,000.00 90% Outsourced Stores, Pump and Pipe Kirloskar, CRI, fittings Stores Texmo MO
Slide 22: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organised Unorganised Total Numeric, 160.00 240.00 400.00 APC, Outsourced Consumer Durable stores Emerson UPS Consumer Durable stores, Microtek, Electrical and Hardware 6,5
Slide 23: 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 24: Thank You
THANK YOU