Pg Electroplast Limited · NSE:PGEL
Pg Electroplast — Investor Presentation (August 2023)
27 slides from Pg Electroplast's investor presentation, Aug 22, 2023
Slide 1: Intimation of investor/analyst meetings letter to exchanges
August 22, 2023 To, To, The General Manager The Manager Department of Corporate Services Listing Department BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip Cod
Slide 2: PG Electroplast Investor Presentation August 2023
PG Electroplast Investor Presentation August 2023
Slide 3: Disclaimer
Disclaimer "This presentation and the accompanying slides (the “Presentation") contains selected information about the activities of PG Electroplast Limited ("Company") and its subsidiaries (together, the “Group") as at the date of the presentation. It does not purport to present a comprehensive ove
Slide 4: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 3
Slide 5: About PG Electroplast
About PG Electroplast ▪PGEL specializes in Original Design Manufacturing (ODM), Contract Manufacturing (CM) and Plastic Injection Moulding and across multiple product lines, thereby providing End to end Solutions to various Indian and Global brands. ▪PG has seven manufacturing units across Greater N
Slide 6: Our Business Verticals
Our Business Verticals 2500 Products Plastic Moulding Products 10 Plastic Moulding Consumer Durables 2000 157 • Indoor Units Sanitaryware Electronics Room Air Conditioners • Outdoor Units Automotive Tool Manufacturing 654 Consumer Electronics 1500 Figures in INR Ten Millions 6 • Semi-Automatic Elect
Slide 7: 7 Strategically Located Manufacturing Units
1 4 Unit Units Roorkee, UK Greater Noida, UP 7 Strategically Located Manufacturing 2 Units Units Ahmednagar, MH 6
Slide 8: Evolution of the Business
Evolution of the • From 2014, as the government policies changed and started Business favoring local manufacturing, the company started re-focusing on the product business. • The company’s Product Business Journey: • 2014: Air Coolers • 2017: Semi-Automatic Washing Machines (SAWM) • 2018: AC Indoor
Slide 9: Product Business Overview
▪ Room Air Conditioner Product Business ▪ Second largest ODM for Room Air Conditioners in Overview India1. ▪ Created one of the most backward integrated and one of the largest Indian AC manufacturing plants at a single location in Ahmednagar, Maharashtra. Product Business Composition 1,500 38 ▪ Wash
Slide 10: Today and the Way Forward
▪ The largest manufacturer of plastic moulded components for Consumer Durables industry in India1. ▪ End to End Solutions Provider to Consumer Durable brands. Today ▪ Focus on Cost Leadership and Product development. and the ▪ Strategic locations of manufacturing facilities. ▪ Diversified Product Po
Slide 11: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 10
Slide 12: Key Growth Drivers for Products Business
Key Growth Drivers for Products Business Indian Overall Market Growth Outsourcing Market Growth • Low penetration levels in India. • Increase in disposable incomes and rise in • Intense competition in market forcing consumer financing. brands to focus on Marketing while • Climate change leading to r
Slide 13: Government impetus through policy interventions
Impetus to Domestic Manufacturing PLI scheme worth INR 62bn announced for ACs and LED Lighting. PLI schemes can help in boosting domestic Production Linked manufacturing as well as addressing ‘China+1’ strategy of Incentives (PLI) global RAC brands. India can aim to capture 16% of the export market
Slide 14: PG's Unique Advantage under PLI for AC Components
PG’s Unique Advantage under PLI for AC Components PG Technoplast Private Limited (PGTL) is a wholly owned subsidiary of PG Electroplast which is engaged in the business of manufacturing Room Air Conditioners and various components. Has one of the largest allocations2 (5th) of the benefit in the sche
Slide 15: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 14
Slide 16: Growth Strategy
Growth Strategy • Product business to drive growth for the company. • Utilize platform strength to add new products – recently added Increased Fully Automatic Washing profitability, Machines, AC ODUs and LED TVs better return Focus on cost ratios, with an reductions, better to the product lineup. Co
Slide 17: Industry Outlook
Industry Outlook Rapid rate of urbanization, Government reforms like Low penetration levels, young population, rising Power for All, Nal se Jal, falling prices, and changing income levels is leading to Digital India, Make in India, lifestyles of the Indian large emerging middle class Aatmanirbhar Bh
Slide 18: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 17
Slide 19: Key Financials
• The Company has grown ~3x in two years with total income rising at a ~75% CAGR from ~INR 7,058 million in Fiscal 2021, to INR ~21,643 million in Fiscal 2023. Total income for the first 3 months of Key Fiscal 2024 was ~INR 6,789 million. Financials • EBITDA increased ~3.5x in two years growing at a
Slide 20: Financial Metrics
• Net profit margin is showing an increasing trend over Fiscal 2021 to 2023 due to scale benefit and operating leverage. Financial • Increasing asset turns driving the RoCE improvement for the company, which has scaled to high teens in FY23. Metrics • Company has undertaken numerous measures to impr
Slide 21: Business Breakup
• The Products business strategy is playing out for the company with growth from Product revenues. Business • For product business, capacities have been increased in FY23 for all three categories. The company is looking for opportunities to enter other product categories. Breakup • The Washing Machi
Slide 22: Thank You!
Thank You! We look forward to working with you!
Slide 23: Annexures
Annexures
Slide 24: 3MFY24 Profit and Loss - Consolidated
3MFY24 Profit and Loss - Consolidated Figures in INR millions 2 2 Figures in INR millions 3M FY23 3M FY24 Net Sales 5,367 6,776 Growth (%) 26.25% Operating Expenses 5,001 6,117 Cost of Materials Consumed 3,597 4902 Purchase of Traded Goods 1032 271 Changes in inventories of finished goods and work-i
Slide 25: Profit & Loss Statement
Profit & Loss Statement Figures in INR millions Figures in ₹ million Mar-20 Mar-21 Mar-22 Mar-23 Net Sales 6,399 7,032 11,116 21,599 Growth (%) . - 9.9% 58.1% 94.3% Expenditure Increase/Decrease in Stock (70) 32 (291) (283) Raw Material Consumed 4,761 5,183 7,315 16,046 Purchase of stock-in-trade 34
Slide 26: Balance Sheet
Figures in INR millions As at March, 31st As at March, 31st ASSETS 2020 2021 2022 2023 EQUITY AND LIABILITIES 2020 2021 2022 2023 Non-current assets Equity (a) Property, Plant and Equipment 2,532 2,726 4,403 5,766 (a) Equity Share capital 195 197 212 227 (b) Capital work-in-progress 55 60 49 20 (b)
Slide 27: Glossary
Glossary Abbreviation Full Form / Definition Abbreviation Full Form / Definition EBITDA Earnings Before Interest Depreciation and Tax Operating Profit Margin Calculated as – Calculated as – [Earnings (including other income) Before [Operating Income/Net Sales] Interest Depreciation and Tax] CAGR Com
PG Electroplast — Investor Presentation (August 2023) on 6ix