V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q3 FY2019 Earnings Presentation
25 slides from V-guard Industries's earnings presentation, Jan 31, 2019
Slide 1: Cover letter to stock exchanges
January 31, 2019 The Manager The Manager Listing Department, Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/1, Mumbai- 400 001 G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 051 Ref:-
Slide 2: V-Guard Industries Q3 FY2019 Earnings Presentation
V-Guard Industries Q3 FY2019 Earnings Presentation
Slide 3: Disclaimer
Disclaimer 2 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
Slide 4: Table of Contents
Table of Contents 3 MD’s Message 04 Key Highlights 05 Financial Highlights 6-8 Segment-wise/Geographical Breakup of Revenues 9-11 Business Outlook 12 Annexure 13
Slide 5: Managing Director's Message
4 Managing Director’s Commenting on the performance for Q3 FY19, Mr. Mithun Chittilappilly, Managing Director – V- Message Guard Industries Limited said, “Revenue growth during Q3 FY19 came in at 12% YoY, driven by Water Heater, Stabilizer, Fan and Digital UPS segments. The new product categories of
Slide 6: Key Highlights – Q3 FY2019
5 Key Highlights – Q3 FY2019 • Reported growth of 12.2% YoY to Rs. 594.3 crore Revenue growth of • Recovery seen in South markets with revenue growth of 9.2%, highest seen in the last seven quarters 12.2% YoY in Q3 • Non-South markets sustain momentum with18% YoY growth in Q3 FY19; Non-South contrib
Slide 7: Financial Highlights (Q3 FY19 vs Q3 FY18)
Financial Highlights (Q3 FY19 vs Q3 FY18) 6 Total Income (Rs. crore) Gross Profit 594 178 530 170 Key ratios (%) Q3 FY19 Q3 FY18 Gross Margin 30.0% 32.1% 12.2% 5% EBITDA Margin 8.3% 9.8% Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Net Margin 5.7% 6.8% Ad Expenditure (incl. promotions)/Total Revenues 5.5% 5.7% E
Slide 8: Financial Highlights (9M FY19 vs 9M FY18)
Financial Highlights (9M FY19 vs 9M FY18) 7 Total Income (Rs. crore) Gross Profit 1,827 548 1,663 504 Key ratios (%) 9M FY19 9M FY18 Gross Margin 30.0% 30.3% 9.9% 8.9% EBITDA Margin 8.4% 9.4% 9M FY18 9M FY19 9M FY18 9M FY19 Net Margin 5.8% 6.3% Ad Expenditure (incl. promotions)/Total Revenues 5.5% 5
Slide 9: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 8 Balance Sheet Snapshot (Rs. cr) 31 Dec 2018 30 Sept 2018 31Dec 2017 Net worth 837.5 799.7 716.3 Gross debt 10.0 10.0 3.3 Current Investments 157.1 158.9 104.1 Cash and cash equivalents 55.8 6.2 4.1 Net Cash Position (Rs. crore) 202.9 155.2 104.9 Fix
Slide 10: Segment-wise Breakup of Revenues – Q3 FY19 vs Q3 FY18
Segment-wise Breakup of Revenues – Q3 FY19 vs Q3 FY18 9 Q3 FY19 Contribution Q3 FY18 Contribution YoY growth Products (Rs. Cr) (%) (Rs. Cr) (%) (%) Electronics 152.5 26% 129.9 25% 17.4% Electricals 257.9 43% 249.9 47% 3.2% Consumer Durables 183.8 31% 149.9 28% 22.6% Grand Total 594.3 100% 529.7 100%
Slide 11: Segment-wise Breakup of Revenues – 9M FY19 vs 9M FY18
Segment-wise Breakup of Revenues – 9M FY19 vs 9M FY18 10 9M FY19 Contribution 9M FY18 Contribution YoY growth Products (Rs. Cr) (%) (Rs. Cr) (%) (%) Electronics 554.4 30% 521.5 31% 6.3% Electricals 773.4 42% 722.5 43% 7.0% Consumer Durables 498.9 27% 418.7 25% 19.2% Grand Total 1,826.7 100% 1,662.7
Slide 12: Geographical Breakup of Revenues
Geographical Breakup of Revenues 11 Q3 FY19 Contribution Q3 FY18 Contribution YoY growth Region (Rs. Cr) (%) (Rs. Cr) (%) (%) South 373.0 62.8% 341.7 64.5% 9.2% Non-South 221.2 37.2% 188.1 35.5% 17.6% Total Revenue 594.2 100% 529.7 100% 12.2% 9M FY19 Contribution 9M FY18 Contribution YoY growth Regi
Slide 13: Business Outlook
Business Outlook 12 • The Company is confident of achieving a topline growth of 15% over the next few years driven by expansion into non-South markets and introduction of new product categories. • We continue to undertake business strengthening initiatives and putting in place best in class processe
Slide 14: Annexure
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Slide 15: Company Overview
Company Overview 14 • Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular Comprehensive portfolio catering to Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers the mass consumption market • Household consumption market wil
Slide 16: Production Model
Production Model 15 PVC Wires Factory Solar Water Heater Factory Stabilizer Manufacturing Units Product No. of Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~58% products PVC Wiring Cables 2 Coimbatore, Kashipur Pumps & Motors 1 Coimbatore • Compl
Slide 17: Financial Highlights (FY13-18)
Financial Highlights (FY13-18) 16 Revenue EBITDA and EBITDA Margins PAT and PAT Margins 6.8% 6.0% 5.7% 2,321 9.9% 10.5% 8.5% Rs. crore 2,114 8.4% 4.7% 4.6% 8.3% 4.1% Rs. crore 1,746 1,862 7.9% Rs. crore 1,360 1,518 114 127 138 185 222 198 63 70 71 112 145 133 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14
Slide 18: Operational Highlights (FY13-18)
Operational Highlights (FY13-18) 17 Ad & Promo Spends and as a % of Sales Expanding Geographic Presence 153 25% 30% 33% 33% 35% 37% 95 80 58 60 69 75% 70% 67% 67% 65% 63% 6.6% 4.3% 3.9% 4.0% 4.3% 4.5% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 South Non-South
Slide 19: Segment-wise Breakup of Revenues – FY18 vs FY17
Segment-wise Breakup of Revenues – FY18 vs FY17 18 FY18 Contribution FY17 Contribution YoY growth Products (Rs. Cr) (%) (Rs. Cr) (%) (%) Electronics 729.2 31.4% 664.8 31.4% 9.7% Electricals 1,017.1 43.8% 940.9 44.5% 8.1% Consumer Durables 575.0 24.8% 508.5 24.0% 13.1% Grand Total 2,321.3 100.0% 2,11
Slide 20: Geographical Breakup of Revenues
Geographical Breakup of Revenues 19 FY18 Contribution FY17 Contribution YoY growth Region (Rs. Cr) (%) (Rs. Cr) (%) (%) South 1,462.8 63% 1,385.5 66% 5.6% Non-South 858.5 37% 728.7 34% 17.8% Total Revenue 2,321.3 100% 2,114.2 100% 9.8%
Slide 21: Market Size (Rs. Crore)*
Market Size across Product Segments 20 Products STABILIZERS PVC WIRES COOKTOPS MOTOR PUMPS Organized 700.00 5,500.00 420.00 – 450.00 5,500.00 (Rs. Crore)* Market Size Unorganized 550.00 4,000.00 180.00 – 200.00 5,000.00 Total 1,250.00 9,500.00 600.00 – 650.00 10,500.00 Micro tech, Livguard, Prestige
Slide 22: Market Size (Rs. Crore)*
Market Size across Product Segments 21 Products WATER HEATERS FANS UPS Digital UPS Market Size (Rs. Organized 1,325.00 5,000.00 160.00 4,500.00 Crore)* Unorganized 700.00 1,500.00 240.00 750.00 Total 2,025.00 6,500.00 400.00 5,250.00 A.O. Smith, Racold, Bajaj, Crompton, Usha, Bajaj Microtek, Luminou
Slide 23: Market Size (Rs. Crore)*
Market Size across Product Segments 22 Products SOLAR WATER HEATER SWITCHGEAR GAS STOVES MIXER GRINDERS Market Size (Rs. Organized 420.00 1,400.00 1,000.00 1,500.00 Crore)* Unorganized 180.00 600 1,000.00 1,000.00 Total 600.00 2,000.00^ 2,000.00 2,500.00 Racold, Emmvee Solar, Butterfly (glass top),
Slide 24: About V-Guard Industries
About V-Guard Industries 23 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 m
Slide 25: Thank You
THANK YOU