V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q4 FY20 Earnings Presentation
24 slides from V-guard Industries's earnings presentation, Jun 1, 2020
Slide 1: Exchange submission letter
June 1, 2020 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 001 Mumbai- 400 051 Scrip Cod
Slide 2: V-Guard Industries Q4 FY20 Earnings Presentation
V-Guard Industries Q4 FY20 Earnings Presentation
Slide 3: Disclaimer
2 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
Slide 4: Table of Contents
3 Table of Contents MD’s Message 04 Key Highlights 05 Financial Highlights 6-9 Segment-wise/Geographical Breakup of Revenues 10-12 Business Outlook 13 Annexure 14
Slide 5: Managing Director's Message
4 Managing Director’s Commenting on the performance for Q4 FY20, Mr. Mithun Chittilappilly, Managing Director – Message V-Guard Industries Limited said, "Collateral impact from the nationwide lockdown in the last few days of the financial year had a significantly adverse impact on our fourth quarter
Slide 6: Key Highlights – Q4 FY20
5 Key Highlights – Q4 FY20 Revenue lower • Q4 FY20 revenue declined by 27.5% YoY to Rs. 537 crore by 27.5% YoY • Non-South market revenues declined by 21.2% while South markets were lower by 31.2% in Q4 FY20 • Non-South markets’ contribution increased to 40.5% of the net revenue in Q4 FY20 compared
Slide 7: P&L Snapshot
6 P&L Snapshot P&L Statement Q4 FY20 Q4 FY19 Change Q3 FY20 FY 20 FY 19 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue 536.63 739.69 -27.5% 626.64 2,481.96 2,566.44 -3.3% COGS 357.75 520.81 -31.3% 418.58 1,658.20 1,799.18 -7.8% Gross Margin 33.3% 29.6% 3.7% 33.2% 33.
Slide 8: Financial Highlights (Q4 FY20 vs. Q4 FY19)
7 Financial Highlights (Q4 FY20 vs. Q4 FY19) Total Income (Rs. crore) Gross Profit 740 219 537 179 Key ratios (%) Q4 FY20 Q4 FY19 Gross Margin 33.3% 29.6% -27.5% -18.3% EBITDA Margin (excl. other income) 8.4% 10.6% Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Net Margin 6.1% 8.0% Ad Exp (incl. promotions)/Total
Slide 9: Financial Highlights (FY20 vs. FY19)
8 Financial Highlights (FY20 vs. FY19) Total Income (Rs. crore) Gross Profit 2,566 2,482 824 767 Key ratios (%) FY20 FY19 Gross Margin 33.2% 29.9% -3.3% 7.4% EBITDA Margin (excl. other income) 10.2% 8.5% FY19 FY20 FY19 FY20 Net Margin 7.5% 6.4% Ad Exp (incl. promotions)/Total Revenues 4.5% 5.2% EBIT
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 9 Balance Sheet Snapshot (Rs. cr) 31 March 2020 30 December 2019 31 March 2019 Net worth 993.8 1008.7 899.7 Gross debt 10.0 10.0 10.0 Current Investments 36.0 180.0 83.1 Cash and cash equivalents 111.5 153.3 84.3 Net Cash Position (Rs. crore) 137.5 32
Slide 11: Segment-wise Breakup – Q4 FY20 vs. Q4 FY19
10 Segment-wise Breakup – Q4 FY20 vs. Q4 FY19 Q4 FY20 Q4 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 150.3 28.0% 205.5 27.8% -26.8% Electricals 242.2 45.1% 355.2 48.0% -31.8% Consumer Durables 144.1 26.9% 179.0 24.2% -19.5% Grand Total 536.6 10
Slide 12: Segment-wise Breakup – FY20 vs. FY19
11 Segment-wise Breakup – FY20 vs. FY19 FY20 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 754.5 30.4% 759.9 29.6% -0.7% Electricals 1053.0 42.4% 1128.6 44.0% -6.7% Consumer Durables 674.5 27.2% 677.9 26.4% -0.5% Grand Total 2482.0 100.0% 2566.4
Slide 13: Geographical Breakup of Revenues
12 Geographical Breakup of Revenues Q4 FY20 Q4 FY19 YoY growth Region Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) South 319.4 59.5% 464.0 62.7% -31.2% Non-South 217.2 40.5% 275.7 37.3% -21.2% Total Revenue 536.6 100% 739.7 100% -27.5% FY20 FY19 YoY growth Region Contribution (%) Contribu
Slide 14: Business Outlook
13 Business Outlook • The Company is confident of achieving a topline growth of 15% over the longer term driven by expansion into non-South markets and introduction of new product categories. • The Company continues to undertake business strengthening initiatives and putting in place best in class p
Slide 15: Annexure
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Slide 16: Company Overview
15 Company Overview • 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 17: Production Model
16 Production Model PVC Wires Factory Solar Water Heater Stabilizer Manufacturing Units Factory 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 18: Financial Highlights (FY15-20)
17 Financial Highlights (FY15-20) Revenue EBITDA and EBITDA Margins PAT and PAT Margins 7.5% 11.2% 6.8% 6.0% 6.4% 2,566 2,482 5.7% 2,321 9.9% 10.5% 9.3% Rs. crore 2,114 8.5% 1,746 1,862 7.9% 4.1% Rs. crore Rs. crore 138 185 222 198 238 277 71 112 145 133 166 185 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY
Slide 19: Operational Highlights (FY15-20)
18 Operational Highlights (FY15-20) Ad & Promo Spends and as a % of Sales Expanding Geographic Presence 153 33% 33% 35% 37% 39% 41% 135 111 95 80 69 67% 67% 65% 63% 61% 60% 6.6% 4.5% 5.2% 4.5% 4.0% 4.3% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 South Non-Sou
Slide 20: Market Size across Product Segments
19 Market Size across Product Segments 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 21: Market Size across Product Segments
20 Market Size across Product Segments 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 22: Market Size across Product Segments
21 Market Size across Product Segments 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 23: About V-Guard Industries
22 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 m
Slide 24: Thank You
=< V-GUARD THANK YOU