V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q1 FY20 Earnings Presentation
22 slides from V-guard Industries's earnings presentation, Jul 24, 2019
Slide 1: Cover letter to stock exchanges on Q1 results presentation
July 24, 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:- Scr
Slide 2: V-Guard Industries Q1 FY20 Earnings Presentation
V-Guard Industries Q1 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 6-8 Segment-wise/Geographical Breakup of Revenues 9-11 Business Outlook 12 Annexure 13
Slide 5: Managing Director's Message
4 Managing Commenting on the performance for Q1 FY20, Mr. Mithun Chittilappilly, Managing Director – V-Guard Director’s Message Industries Limited said, “We have made a steady start to the year with a top line growth of over 10% and PAT growth of 52% in Q1 FY20. We are making good progress in the no
Slide 6: Key Highlights – Q1 FY20
Key Highlights – Q1 FY20 5 • Q1 FY20 revenue up 10.2% YoY to Rs. 699 crore Revenue growth of 10.2% YoY in • Led by robust growth of 14% in non-South markets with the extended summer season Q1 FY20 • Non-South markets accounted for 46% of the net revenue in Q1 FY20 against 44% in Q1 FY19 • Electronic
Slide 7: P&L Snapshot
6 P&L Snapshot P&L Statement Q1 FY20 Q1 FY19 Change Q4 FY 19 FY 19 FY 18 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue 699.39 634.89 10.2% 739.69 2,566.44 2,321.27 10.6% COGS 471.71 441.92 6.7% 471.71 1,799.18 1,624.65 10.7% Gross Margin 32.6% 30.4% 2.2% 36.2% 29.9%
Slide 8: Financial Highlights (Q1 FY20 vs Q1 FY19)
7 Financial Highlights (Q1 FY20 vs Q1 FY19) Total Income (Rs. Gross Profit crore) 228 699 193 635 Key ratios (%) Q1 FY20 Q1 FY19 Gross Margin 32.6% 30.4% 10.2% 18.0% EBITDA Margin (incl other income) 11.1% 7.8% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Net Margin 7.5% 5.4% Ad Exp (incl. promotions)/Total Reve
Slide 9: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 8 Balance Sheet Snapshot (Rs. cr) 30 June 2019 31 Mar 2019 30 June 2018 Net worth 955.2 899.7 791.6 Gross debt 10.0 10.0 11.6 Current Investments 166.6 83.1 145.2 Cash and cash equivalents 168.0 84.3 4.5 Net Cash Position (Rs. crore) 324.6 157.4 136.2
Slide 10: Segment-wise Breakup – Q1 FY20 vs Q1 FY19
Segment-wise Breakup – Q1 FY20 vs Q1 FY19 9 Q1 FY20 Q1 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 282.8 40% 240.5 38% 17.6% Electricals 263.2 38% 261.4 41% 0.7% Consumer Durables 153.4 22% 133.0 21% 15.3% Grand Total 699.4 100% 634.9 100% 10.2
Slide 11: Geographical Breakup of Revenues
10 Geographical Breakup of Revenues Q1 FY20 Contributio Q1 FY19 Contributio YoY growth Region (Rs. Cr) n (%) (Rs. Cr) n (%) (%) South 379.8 54.3% 354.6 55.9% 7.1% Non-South 319.6 45.7% 280.3 44.1% 14.0% Total Revenue 699.4 100% 634.9 100% 10.2%
Slide 12: Business Outlook
11 Business Outlook • 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 13: Annexure
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Slide 14: Company Overview
13 Company Overview • Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Comprehensive portfolio catering Modular Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air to the mass consumption market Coolers • Household consumption market wil
Slide 15: Production Model
14 Production Model PVC Wires Factory Solar Water Heater Stabilizer Manufacturing Factory Units No. of Outsourcing Objectives Product Location Units Own Manufacturing Facilities • Asset light model outsourcing ~58% products PVC Wiring Cables 2 Coimbatore, Kashipur • Complete control over supply chai
Slide 16: Financial Highlights (FY14-19)
15 Financial Highlights (FY14-19) Revenue EBITDA and EBITDA PAT and PAT Margins Margins 6.8% 6.0% 6.4% 2,566 9.3% 5.7% 9.9% 10.5% Rs. crore 2,321 2,114 Rs. crore 4.6% Rs. crore 8.4% 8.5% 4.1% 1,746 1,862 7.9% 1,518 127 138 185 222 198 238 70 71 112 145 133 166 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15
Slide 17: Operational Highlights (FY14-19)
16 Operational Highlights (FY14-19) Ad & Promo Spends and as a % of Expanding Geographic Presence Sales 153 30% 33% 33% 35% 37% 39% 135 95 80 60 69 70% 67% 67% 65% 63% 61% 6.6% 4.5% 5.2% 3.9% 4.0% 4.3% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 South Non-Sout
Slide 18: Market Size across Product Segments
17 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 Unorganize 550.00 4,000.00 180.00 – 200.00 5,000.00 d Total 1,250.00 9,500.00 600.00 – 650.00 10,500.00 Micro tech, Livguard, Polycab
Slide 19: Market Size across Product Segments
18 Market Size across Product Segments Products WATER HEATERS FANS UPS Digital UPS (Rs. Crore)* Organized Market Size 1,325.00 5,000.00 160.00 4,500.00 Unorganize 700.00 1,500.00 240.00 750.00 d Total 2,025.00 6,500.00 400.00 5,250.00 A.O. Smith, Racold, Crompton, Usha, Bajaj Microtek, Luminous, Su-
Slide 20: Market Size across Product Segments
19 Market Size across Product Segments SOLAR WATER Products SWITCHGEAR GAS STOVES MIXER GRINDERS HEATER (Rs. Crore)* Organized Market Size 420.00 1,400.00 1,000.00 1,500.00 Unorganize 180.00 600 1,000.00 1,000.00 d Total 600.00 2,000.00^ 2,000.00 2,500.00 Racold, Emmvee Solar, Butterfly (glass top),
Slide 21: About V-Guard Industries
20 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 22: Thank You
Na V-GUARD THANK YOU