Butterfly Gandhimathi Appliances Limited · NSE:BUTTERFLY
Butterfly Gandhimathi Appliances — H1 FY2017 Earnings Presentation
46 slides from Butterfly Gandhimathi Appliances's earnings presentation, Nov 19, 2016
Slide 1: Results presentation cover letter to stock exchanges
www.butterflyindia.com of BUTTERFLY GANDHIMATHI APPLIANCES LIMITED November 19 2016 General Manager DCS, Manager, Dept: of Corporate Services, National Stock Exchange of India Lid BSE Ltd. Exchange Plaza, Floor |, P.J.Towers, Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai ~ 400 001 Mumbai —
Slide 2: Results Presentation Q2 & H1 FY17
BUTTERFLY GANDHIMATHI APPLIANCES LIMITED RESULTS PRESENTATION Q2 & H1 FY17 www.butterflyindia.com
Slide 3: Safe Harbour
Safe Harbour Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertaintie
Slide 4: Contents
Contents 1 Company Overview 2 Financial Overview 3 Product launches in H1 FY17 4 Q2 & H1 FY17 Operating Performance & Highlights 5 Outlook www.butterflyindia.com 4
Slide 5: Company Overview
1 Company Overview www.butterflyindia.com
Slide 6: About Us
About Us.. Leading manufacturer of Kitchen and Electrical Appliances Market Leader in India for SS LPG Stoves & Table Top Wet Grinders and major supplier of Mixer Grinders & Pressure Cookers The „Butterfly‟ brand is a highly respected brand synonymous with quality Established in 1986 by Shri V. Muru
Slide 7: Quick Facts
Quick Facts IN THE TOP IN INDIA BRANDED IN INDIA FOR DOMESTIC FOR SS LPG STOVES REVENUE CAGR KITCHEN APPLIANCES & TABLE TOP WET GRINDERS FY11-16 SALES OF BRANDED PRESENCE IN ALL PRODUCTS IN FY16 EXCLUSIVE STATES IN INDIA CRORE DISTRIBUTORS ACROSS INDIA NET DEBT / EQUITY OF FY16 RATIO REVENUES FROM N
Slide 8: Growth Levers
Growth Levers Initiatives Impact o Fresh growth avenues in existing markets Wider Product Offering o Accelerated growth opportunity in new markets o Addressable market increases manifold Geographical Expansion o Wider National footprint o Expansion in blended margins Premium Products o Attracts new
Slide 9: Product Portfolio
Product Portfolio Every product exhibits the highest standards in Safety, Durability, Efficiency, Aesthetics & Reliability LPG Stove Mixer Grinder Table Top Electric Chimney Wet Grinder Pressure Cooker Non Stick Cookware Induction Cooktop Electric Rice Cooker Juicer Mixer Grinder Electric Kettle San
Slide 10: Product Portfolio
Product Portfolio Other Pioneering Products Washer Juicer Hand Blender Water Heater Electric Iron Pop-up Toaster www.butterflyindia.com 10
Slide 11: Milestones
Milestones • Bagged the TNCSC order for the 4th • Bagged the first consecutive year – • First in India to TNCSC order of Rs. latest order be awarded ISO 285 crore for amounting to Rs. 9000 manufacturing of 510 crore for certification for Table Top Wet manufacturing of its LPG Stoves Grinder and Mixe
Slide 12: Revenue Profile
Revenue Profile Annual Revenue (Rs. crore) CAGR: 995 30% 839 807 46% 642 39% 577 46% 16% 44% 267 61% 84% 54% 54% 56% 100% FY11 FY12 FY13 FY14 FY15 FY16 Branded Sales Govt Order Note: FY15 Government Tender was deferred and combined with FY16 tender which resulted in increased Govt. revenues in FY16
Slide 13: Government Orders
Government Orders Government Order Sales (Rs. crore) Products supplied (in lakh units) 461 369 331 21.3 16.1 15.9 92 3.0 4.5 3.0 0.7 0.0 FY13 FY14 FY15* FY16 FY13 FY14 FY15 FY16 TTWG Mixer Grinder For the last 4 years in succession, BGMAL won orders in the annual tender of Tamil Nadu Civil Supplie
Slide 14: Branded Retail Sales
Branded Retail Sales Branded Gross Sales (Rs. crore) Through Institutions CAGR: • Tie ups with Gas dealers of IOCL, BPCL and HPCL 15% 508 534 • Customers for new gas connection are provided with co- 438 485 branded products manufactured by BGMAL 357 267 264 • This provides the Company a ready market
Slide 15: Augmenting Organic Growth
Augmenting Organic Growth Increased Product Categories For Wider Product Portfolio And Higher Market Share Product Categories (Nos.) SKUs (Nos.) 500 552 554 20+ 20+ 20+ 320 250 250 6 6 6 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Enhancing Sales and Marketing Efficiency For Better P
Slide 16: Strong R&D Capabilities
Strong R&D Capabilities R&D focused Company with a demonstrated track record in innovation 1st to introduce Stainless Steel Pressure Cookers in India 1st to manufacture Stainless Steel LPG Stoves in India 1st to introduce Stainless Steel Vacuum Flasks in India which deliver enhanced Heat Retention u
Slide 17: Key Focus Areas
Key Focus Areas • Optimize investment on expansion of distribution network and brand building activities • Continued focus on enhanced working capital position • Inventory de-stocking efforts undertaken by the Company are nearly complete and is expected to further boost efficiency and cash flow, whi
Slide 18: Financial Overview
Financial Overview 2 www.butterflyindia.com
Slide 19: Abridged Balance Sheet
Abridged Balance Sheet Rs. crore Sources of Funds FY 2013 FY 2014 FY 2015 FY 2016 H1FY16 H1FY17 a) Shareholders’ Funds 201.3 223.7 225.6 238.1 236.4 226.7 b) Non-current Liabilities 12.7 21.4 77.0 52.8 64.1 82.0 (NCL) Decrease in - Long-term Borrowings 6.4 14.3 68.3 43.4 54.9 74.3 current liabilitie
Slide 20: Abridged Balance Sheet
Abridged Balance Sheet Rs. crore Application Of Funds FY 2013 FY 2014 FY 2015 FY 2016 H1FY16 H1FY17 a) Non-current Assets 105.3 164.0 175.4 173.6 174.5 172.8 Decrease in Receivables due to completion of a) Current Assets 436.3 508.7 393.5 413.6 592.4 373.5 Govt. order and collection of - Inventories
Slide 21: Abridged Profit & Loss Statement
Abridged Profit & Loss Statement Rs. crore Particulars FY 2013 FY 2014 FY 2015 FY 2016 H1 FY16 H1 FY17 Total Net Revenues (Incl. OI) 730.5 770.7 533.3 906.3 547.8 239.6 - Branded Net Revenues 390.6 460.8 447.5 468.2 255.2 237.9 - Government Net Revenues 338.0 308.2 84.3 432.7 289.4 - - Other Income
Slide 22: Performance Track Record - Annualized
Performance Track Record - Annualized Total Revenue (Rs crore) EBITDA (Rs crore) CAGR: CAGR: 30% 19% 73 995 63 62 65 807 839 642 44 577 27 267 FY11* FY12 FY13 FY14 FY15 FY16 FY11* FY12 FY13 FY14 FY15 FY16 Profit Before Tax (Rs crore) Profit After Tax (Rs crore) 48 44 34 33 30 19 22 18 19 12 4 3 FY11
Slide 23: Key Financials
Key Financials Earning Per Share (Rs) - Annualized Book value per share (Rs) 126 133 125 20 20 113 19 13 43 49 7 2 FY11 @ FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 @ FY11 was for period of 9 months ending 31.03.2011. The figures above represent the annualized numbers in order to facilit
Slide 24: Key Financials
Key Financials Net Worth (Rs crore) 239 224 226 Net Debt (Rs crore) 201 177 154 159 84 76 68 41 1 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 Net Debt - Equity Ratio Market Cap (Rs crore) 1.6 1.1 587 492 523 0.7 0.7 0.8 343 298 140 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY1
Slide 25: Product Launches in H1FY17
Product Launches in 3 H1FY17 www.butterflyindia.com
Slide 26: Products Launched in H1 FY17
Products Launched in H1 FY17 56 new SKU‟s launched Built-in Hobs category launched with 4 SKU‟s www.butterflyindia.com 26
Slide 27: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Mixer Grinder – „Spectra‟ Range Spectra Spectra Features: • Present in 3 color variants – Red, Green and Black • Overlapping jar with wider jar base • Easy to clean • New bayonet system • Space saving & stackable jars • More sturdy and appealing Drive (backward compa
Slide 28: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Built-in-Hobs 3B 4B Features: • Four models BHA –A 3B01- 3 Burner, BHA- A 3B01 F – 3Burner, BHA – A 4B01 – 4 Burner, BHA – A4B01 F – 4 Burner • Auto-ignition feature • 3 ring burner • Flame Failure Device • Cast iron mixing tube • Easy grip knob and easy to clean fac
Slide 29: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Chimney – „Matchless‟, „Splendid‟ and „Rhino Plus‟ Range Matchless Splendid Rhino Plus Features: • Size 60CM, • Suction capacity: 1200M3/Hr (Matchless), 1000M3/Hr (Splendid), 700M3/Hr (Rhino Plus) • 3 speed push button • Normal lamp 2* 40W (Except Matchless) • Oil co
Slide 30: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Glass Top Stoves – „Prism‟, „Signature‟ and „Spectra‟ Range Prism Signature Spectra Features: • Extra durable toughened glass • Heat resistant reinforced polymer legs and flame retardant front panel • Smart lock pan support for easy fitment • Leak proof stainless ste
Slide 31: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Glass Top Stoves – „Grand‟, „Jet‟, „Reflection Plus‟ Range Grand Jet Reflection Plus Features: • Thick toughened glass • Detachable spill tray • Enamel pan stand www.butterflyindia.com 31
Slide 32: New Products Launched in H1 FY17
New Products Launched in H1 FY17 SS LPG Stoves – „DLX-60‟, „Acme‟ and „Nitro‟ Range DLX-60 Acme Nitro Features: • Specially launched to cater to PM Ujjwala Yojana Scheme – Institution channel • Long lasting SS body • Thermal efficient brass burners www.butterflyindia.com 32
Slide 33: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Electric Rice Cooker – „Streak‟, „Aura‟ and „Iris‟ Range Streak Aura Iris Features: • Size 60CM, • Suction capacity: 1200M3/Hr (Matchless), 1000M3/Hr (Splendid), 700M3/Hr (Rhino Plus) • 3 speed push button • Normal lamp 2* 40W (Except Matchless) • Oil collector • LCD
Slide 34: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Non-Stick Cookware – „Raga‟ Range Electric Kettle – „ST5510‟ Range Washer - „7000S‟ and „7000G‟ Range Air Cooler – „Desert +‟ Range Raga Appachatty Raga Omni Tawa Electric Kettle – ST5510 Washer - Features: • Rust-free cabinet • Large body and capacity • High Motor p
Slide 35: New Products Launched in H1 FY17
New Products Launched in H1 FY17 Power Hob – „Jet‟ Range Jet Features: • Bigger in size • 1600 Watts • 5 Indian cooking menus • Push Button control • Auto Timer Settings • Over heating protection function www.butterflyindia.com 35
Slide 36: Q2 & H1 FY17 Operating Performance & Highlights
Q2 & H1 FY17 Operating 4 Performance & Highlights www.butterflyindia.com
Slide 37: Q2 FY17 – Performance highlights
Q2 FY17 – Performance highlights Total Income (Net) (Rs. crore) EBITDA (Rs. crore) 313.2 150.3 22.5 - 9.9 162.9 155.9 Q2FY16 Q2FY17 Q2FY16 Q2FY17 Branded Sales Govt Order Sales • Total Income (Net) during Q2 FY17 stood at Rs. 155.9 crore, as against 313.2 crore in Q2 FY16 PAT (Rs crore) • Branded sa
Slide 38: H1 FY17 – Performance highlights
H1 FY17 – Performance highlights Total Income (Net) (Rs. crore) EBITDA (Rs. crore) 547.8 289.4 38.2 239.6 - 258.4 9.7 H1FY16 H1FY17 H1FY16 H1FY17 Branded Sales Govt Order Sales • Total Income (Net) during H1 FY17 stood at Rs. 239.6 crore, as against 547.8 crore in H1 FY16 PAT (Rs crore) • Branded sa
Slide 39: Performance Overview for Q2 & H1 FY17
Performance Overview for Q2 & H1 FY17 • Branded Net Sales during the quarter was lower by 4.3% on a Y-o-Y basis (half yearly sales was lower by 7.3%) due to the short term drag of the institution channel sale • Retail sales during the quarter witnessed a positive growth on a Y-o-Y basis aided by buo
Slide 40: Product Categories
Product Categories Kitchen Appliances •LPG Stove •Hand Blender •Juicer Mixer Grinder •Mixer Grinder •Induction Cooktop •Slice Toaster •Table Top Wet Grinder •Electric Kettle •Sandwich Maker •Electric Chimney •Juicer Cookers/Cookware •Pressure Cooker •Non-Stick Cookware •Electric Rice Cooker Others •
Slide 41: Key Highlights
Key Highlights Branded Gross Sales (including excise) (Rs crore) Y-o-Y Q-o-Q Product Q2 FY17 Q2 FY16 Q1 FY17 Growth Growth Branded Market Kitchen Appliances 138.2 133.5 69.5 4.7% 68.7% Cooker/Cookware 29.9 26.0 14.7 3.9% 15.2% Others 4.2 - 7.7 - -3.5% Total-Branded 172.3 159.5 91.9 12.8% 80.4% Other
Slide 42: Outlook
5 Outlook www.butterflyindia.com
Slide 43: Industry Growth Drivers
Industry Growth Drivers Increasing Improvement Sustained number of in Consumer GDP Growth nuclear Financing families Increase in Impetus on Changing Rise in rural disposable „Make in Demographics incomes income India‟ Shift in Continued Rise in per Consumption Urbanization capita spend patterns Pref
Slide 44: Attractive Growth Prospects
Attractive Growth Prospects Enhanced Marketing & Improved Distribution New Product Pipeline Capacity Expansion Brand Awareness & Sustained Presence Activities • Currently concentrated in • Revenues currently • Planned enhancement of • Have launched strong South India which dominated by 6 key capacit
Slide 45: Outlook
Outlook H1 FY17 CATEGORY MARKET ENVIRONMENT OUTLOOK CONTRIBUTION • The market scenario was comparatively Retail channel demand improved, especially in Southern markets rebounded in current quarter 85-90% of Branded Retail Channel Sales • New model launches coupled with and is expected to be positive
Slide 46: Thank you
weeectersly Thank you
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