Hindware Home Innovation Limited · NSE:HINDWAREAP
Hindware Home Innovation — Q2 FY24 Earnings Presentation
34 slides from Hindware Home Innovation's earnings presentation, Nov 8, 2023
Slide 1: Exchange filing cover letter for financial result presentation
NEAPS/BSE ONLINE 8th November, 2023 The Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, 1st Floor, New Trading Ring, Rotunda Building, Mumbai-400001 (BSE Scrip Code: 542905) Listing Department National Stock Exchange of India Limited Plot No. C-1, Block-G, Exchange Plaza, 5t
Slide 2: Q2 & H1 FY24 Financial Result Presentation
Q2 & H1 FY24 Financial Result Presentation “Delivering sustainable growth” “With customers at November 08, 2023 the core”
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Hindware Home Innovation Limited (formerly Somany Home Innovation Limited) (the “Company”) solely for your information and may not be distributed, reproduced, or redistributed or passed on directly or indirectly to any other person, whether within or
Slide 4: Business Overview
Business Overview Premium Consumer Appliances Leader in Industry Judicial mix of and Building Products Company leading growth owned and Sanitaryware and second largest in the in Plastic Pipes outsourced Owner of Brand Building Products faucets segment & Fittings manufacturing Hindware Segment segmen
Slide 5: About Us
About Us ▪ Hindware Home Innovation is a Consumer Appliances and Building Hindware Home Innovation Products Company Limited ▪ Owner of Hindware, a reliable and trusted brand across India ▪ Leveraging innovation and expansive distribution infrastructure Consumer Retail across businesses Appliances o
Slide 6: Our Approach
Our Approach ▪ Harnessing distinct distribution ▪ Several successful launches at networks to market newer regular intervals to cater to the products and cross-selling burgeoning needs of the Introduce ▪ Expansive distribution reach customers across all segments, enabling us ▪ Strong R&D capabilities
Slide 7: Proficient and Committed Leadership
Proficient and Committed Leadership Mr. Sandip Somany Mr. Sandeep Sikka Mr. Naveen Malik Mr. Salil Kappoor Mr. Sudhanshu Pokhriyal Mr. Rajesh Pajnoo Chief Executive Officer, Chief Financial Officer, Chairman and Non- Group Chief Financial Hindware Home Chief Executive Officer, Chief Executive Office
Slide 8: Our Environmental, Social and Governance Commitments
Our Environmental, Social and Governance Commitments Environment: Hindware Home Innovation Limited is dedicated to reducing its carbon footprint, adopting energy-efficient technologies, and promoting the use of recycled materials to minimize its environmental impact, in aligning with global sustaina
Slide 9: Fulfilling Our Sustainability Initiatives
Fulfilling Our Sustainability Initiatives Waste management Greenhouse gas emissions Energy efficiency is practices involve process Water efficiency includes Rooftop solar energy are reduced through on-site achieved through daylight mapping, source segregation, 'Zero' discharge, rainwater across our
Slide 10: Financial Performance
Financial Performance 9
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance (₹ in crore) Revenue EBITDA Margin (%) PAT -2%YoY 25% YoY 35% YoY 20.9 Q2 FY 24 714.8 700.4 633.9 80.0 15.5 64.3 68.4 9.0% 10.8% 11.4% 2.9 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Revenue EBITDA Margin (%) PAT -4% YoY 13%YoY -15% Y
Slide 12: Building Products Segment
Building Products Segment 11
Slide 13: Building Products Business Update
Building Products Business Update Bathware Business Building Products Business (₹ in crore) ▪ Inflation, higher interest rates and liquidity pressures translated to subdued demand for mid and lower-priced products Revenue 4% YoY ▪ Year-over-year, margins increased on the back of operating 575.9 59
Slide 14: Bathware Business Update – Q2 FY24
Bathware Business Update – Q2 FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) 5% YoY 33% YoY 39% YoY 60.6 63.8 379.0 362.1 396.1 48.0 43.4 45.9 33.0 16.7% 16.1% 12.7% 12.0% 11.6% 8.7% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 PBT Margin (%) Net Working Capital
Slide 15: Bathware Business Update – H1 FY24
Bathware Business Update – H1 FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) 2% YoY 30% YoY 31% YoY 89.3 124.4 743.4 758.2 68.0 95.7 16.4% 12.9% 9.1% 11.8% H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 PBT Margin (%) Net Working Capital (Days) Net Borrowing 121 457 23% YoY 68.0 119
Slide 16: Building Products Business - Bathware
Building Products Business - Bathware ▪ Leading player in sanitaryware & faucets segments o Brands available across price points ▪ Control over the entire value chain & a strong network of distribution & service o In-house manufacturing and sourcing capabilities of Sanitaryware and Faucets, enchance
Slide 17: Industry-First Innovative-Design Led Products
Industry- First Innovative-Design Led Products 16
Slide 18: Marketing Initiatives
Marketing Initiatives Pre Festive Season – Hindware @AsiaCup Hindware @IPL 2023 ▪ Hindware partnered with two IPL teams Royal Challengers Bangalore & ▪ Coverage – 6 India Matches Punjab Kings for this IPL season ▪ 2 Crore impressions served in 2 Ind-Pak Matches ▪ Launched “5 star Hotel like Bathroom
Slide 19: Hindware - World Cup Presence with Super 4s
Hindware - World Cup Presence with Super 4s ▪ Platforms – Hotstar CTV & Mobile ▪ Impressions served in 5 Weeks – 5.58 Billion (558 Crore) ▪ Ind-Pak match ended on a 4 and Viewership was 3.4 Crore
Slide 20: Regional Festive Campaigns
Regional Festive Campaigns Onam Ganesh Chaturthi Puri Rath Yatra Boat Race Hindware Stall & water distribution on the way to temple Queo Gold Scheme for selected Dealers
Slide 21: Marketing Initiatives
Marketing Initiatives ▪ Hindware Italian Collection Tiles – Digital Media Campaign ▪ New In shop branding developed for Elevated Imagery o Executed digital media campaign to drive awareness for o New in shop branding focusing on USP’s of the product with clear Hindware Italian Collection Tiles focus
Slide 22: Marketing Initiatives
Marketing Initiatives ▪ Launched Online Reputation Management Tool – LOCOBUZZ ▪ Launch of 3D Bathroom Visualizer – Live on Hindware Website o A platform which enables brands to listen, analyze and engage o Empowers the customers to experience the actual setting of bath with audiences and customers a
Slide 23: Marketing Initiatives
Marketing Initiatives ▪ Queo New brand film launched with redefined brand identity & ▪ QUEO Refresh Website Launched positioning-“Let Time Wait” o QUEO’s brand new website with new brand story “LIVE o 105Mn impressions on digital and OTT EXTRAORDINARY WITH QUEO” focusing on accentuation of the brand
Slide 24: Marquee Clients
Marquee Clients = BRIGADE if SEW, country (@- fi) GAR Pry rome PROVIDENT PURAVANKARA Google | sosarijonsor Infosys w/ Sahit? | caROVAR ill | osai | IndianOil Fn iene OFS 8 ESOT SATTVA i @ & | taj | i > \ 2 7 2, — R sa LARSEN & TOUBRO 4 MERIDIEN Sunteck) supertech a AJ Ml. Vaishnavi ge fre seer meee
Slide 25: Plastic Pipes & Fittings Business Update
Plastic Pipes & Fittings Business Update ▪ The Business continue its momentum towards expanding market share and presence across product portfolio despite slight headwinds on account of muted demand in home plumbing segment o Endeavour towards maintaining prices in line with superior quality product
Slide 26: Plastic Pipes & Fittings Business Update – Q2 FY24
Plastic Pipes & Fittings Business Update – Q2 FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) 2% YoY 292%YoY Positive YoY 14.6 196.9 201.1 21.7 156.0 10.4 3.6 5.5 -0.1 7.3% 2.8% 6.6% 10.8% 2.3% -0.04% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 PBT Margin (%) Net
Slide 27: Plastic Pipes & Fittings Business Update – H1FY24
Plastic Pipes & Fittings Business Update – H1FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) -3% YoY 74% YoY 32.0 139% YoY 18.3 367.4 357.0 18.4 7.6 5.0% 9.0% 2.1% 5.1% H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 PBT Margin (%) Net Working Capital (Days) Net Borrowing 76 Positive Y
Slide 28: Plastic Pipes & Fittings
Plastic Pipes & Fittings ▪ TRUFLO by Hindware, is the fastest growing plastic pipes and fittings brand in India o With 2000+ SKUs already being offered and many more being added, TRUFLO aims to be amongst the top 5 CPVC players in 3 years ▪ In-house manufacturing for better efficiencies & end to end
Slide 29: Consumer Appliances Business
Consumer Appliances Business 28
Slide 30: Consumer Appliances Business Update – Q2 FY24
Consumer Appliances Business Update – Q2 FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) -23% YoY 7.2 8.6% 1.3% 125.3 105.2 96.3 5.8% 10.7 1.4 -2.8 -6.9 -2.7 -2.7% -2.6% -7.2% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 PBT Margin (%) Working Capital (Days) Net Borro
Slide 31: Consumer Appliances Business Update – H1 FY24
Consumer Appliances Business Update – H1 FY24 (₹ in crore) Revenue EBITDA Margin (%) EBIT Margin (%) -21% YoY 9.5 6.4% 254.4 201.5 3.7% 16.2 -1.3 -9.7 -0.6% -4.8% H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 PBT Margin (%) Net Working Capital (Days) Net Borrowing* 1.2 137 139 126 0.5% 128 -19.5 -9.6%
Slide 32: Consumer Appliances Business Update
Consumer Appliances Business Update ▪ Consumer Business built over last 6 years with a leading position in Kitchen appliances and growing presence in water heating and air coolers segments ▪ Revenue stood at ₹96 crore in Q2FY24 and ₹202 crore in H1FY24 o Market sentiment facing challenges on account
Slide 33: Diverse and Exciting Products & Brands
Diverse and Exciting Products & Brands Kitchen Appliances Air Coolers Water Purifiers Kitchen & Furniture Fittings Water Heaters (50:50 JV with Groupe Atlantic) Fans 32
Slide 34: Thank You
Thank You Naveen Malik Hindware Home Innovation Ltd +91 124 477 9200 investors@shilgroup.com Gavin Desa / Jenny Rose Kunnappally CDR India +91 9820637649 +91 8689972124 gavin@cdr-india.com jenny@cdr-india.com
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