Stove Kraft Ltd. · NSE:STOVEKRAFT
Stove Kraft — Q3 FY22 Earnings Presentation
37 slides from Stove Kraft's earnings presentation, Feb 8, 2022
Slide 1: Cover letter to stock exchanges
Ww X STOVEKRAFT’ February 8, 2022 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai- 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 543260 NSE Symbol: STOVEKRAFT Dear Sir/Madam, Sub: Investo
Slide 2: Stove Kraft Limited Investor Presentation February 2022
STOVE KRAFT LIMITED NEW-AGE SOLUTIONS FOR THE NEW-AGE HOME Stunning, elegant products that speak out your class INVESTOR PRESENTATION February 2022
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Stove Kraft Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or induce
Slide 4: Q3 & 9M FY22 Financial Performance
Q3 & 9M FY22 Financial Performance
Slide 5: 9M FY22 Performance
9M FY22 Performance Revenue from Operations EBITDA^ Profit Before Tax (PBT) Profit After Tax (PAT)* Rs. 875 crores Rs. 87.1 crores Rs. 55.6 crores Rs. 47.6 crores +40.3% -4.9% -10.2% -23.2% Margin Profile No. of Outlets Revenue Breakup : 9M FY22 EBITDA PAT Margins 70,610 Margins^ 24.4% 18,634 30.3%
Slide 6: Q3 FY22 Performance
Q3 FY22 Performance Revenue from Operations EBITDA^ Profit Before Tax (PBT) Profit After Tax (PAT) Rs. 298 crores Rs. 21 crores Rs. 10 crores Rs. 11 crores +1.1% -51.1% -70.0% -66.8 % Margin Profile No. of Outlets Revenue Breakup : Q3 FY22 EBITDA PAT Margins 70,610 Margins^ 24.8% 63,428 7,182 31.5%
Slide 7: Operational & Financial Highlights for Q3/9M FY22
Operational & Financial Highlights for Q3/9M FY22 • The quarter saw a tepid growth in revenue vis-à-vis last year. This was primarily driven by a higher base in FY20 since Diwali was in middle of November last year and consequently had a positive impact in third quarter of FY20. For this year, major
Slide 8: Increased Volumes during 9M FY22
Increased Volumes during 9M FY22 Pressure Cooker* Gas Cooktops Induction Cooktops +41.3% +47.9% +65.2% -9.8% -28.2% +8.3% 12.3 34.9 2.2 5.7 4.1 9.3 11.1 5.3 24.7 1.6 2.8 5.6 Q3FY21 Q3FY22 9MFY21 9MFY22 Q3FY21 Q3FY22 9MFY21 9MFY22 Q3FY21 Q3FY22 9MFY21 9MFY22 Non Stick Cookware* LED Small Appliances/M
Slide 9: Expansion into New Businesses
Expansion into New Businesses Branded Modular Kitchen Segment Electric Switches and Accessories • Stove Kraft will enter into branded modular kitchen segment through • Through acquisition of business of SKAVA Electric Private Limited, Stove acquisition of Metsmith, along with the entire team of oper
Slide 10: Profit & Loss Statement – Q3 & 9M FY22
Profit & Loss Statement – Q3 & 9M FY22 Profit & Loss Statement (Rs. Crs.) Q3 FY22 Q3 FY21 Y-o-Y 9M FY22 9M FY21 Y-o-Y Revenue from Operations 298.0 294.7 1.1% 875.0 623.5 40.3% Cost of Materials Consumed 206.7 144.7 553.2 304.7 Purchase of stock-in-trade 39.9 45.4 90.8 106.9 Changes in Inventories o
Slide 11: About Stove Kraft Limited
About Stove Kraft Limited
Slide 12: About Stove Kraft Limited
About Stove Kraft Limited Manufacture and retail of a wide Well equipped backward and diverse suite of kitchen integrated manufacturing solutions under Pigeon, Gilma, Headquartered in facilities and Black+Decker brands Bengaluru, Karnataka • Bengaluru (Karnataka) Retail lighting solutions under the
Slide 13: Key Milestones
Key Milestones 1999 2001 2003 2008 2010 Investments by SIDBI Incorporated Stove Granted trademark Granted trademark First Investment by Kraft as a Pvt. Limited registrations for Gilma registrations for Pigeon Commenced Sequoia production at Harohalli facility 2014 2015 2018 2019 2021 Commenced expor
Slide 14: Competitive Strengths
Competitive Strengths One stop shop for well recognised, award winning portfolio of 1 kitchen solutions brands with a diverse range of products across consumer preferences and consistent focus on innovation Widespread, well connected distribution network with a presence 2 across multiple retail chan
Slide 15: Diverse range of products across consumer preferences
1. Diverse range of products across consumer preferences… • Cookware–Pressure cooker, wonder cast cookware, non-stick cookware, electric rice cookers and titanium hard anodized cookware LPG Stoves • Small appliances –Food processors, juicers, hand blenders, hand mixers, • Cooktops and other kitchen
Slide 16: Continuous focus on innovations
1. …with continuous focus on innovations Consistent launch of innovative products Upcoming Launches Turbo Chopper Feather Touch Mixer Grinder Super Cooker Super Storm Advanced Registered design with customizable With forced air-cooling technology products into multiple utilities Personal Blender Pro
Slide 17: Well connected distribution network
2. Well connected distribution network… Implemented BIZOM for tracking and capturing movement of field sales executives and service Sales Services Framework engineers on real time basis Utilise DMS to track secondary and tertiary sales and maintain inventory level at the distributor’s centre D
Slide 18: Huge exports opportunity
2. … with huge exports opportunity 12 Export Countries UK Netherlands USA Kuwait 2 Countries Bahrain Iran Qatar UAE Nepal Mexico India OEM Partnerships Sri Lanka Philippines Uganda 9% Tanzania Stovekraft (OEM) Pigeon Export Sales % Head Quartered 17
Slide 19: State of the Art Manufacturing Facilities with focus on quality
3. State of the Art Manufacturing Facilities with focus on quality Baddi, Himachal Pradesh Dedicated in-house R&D facility Comprising of 13 personnel and tie-ups with foreign companies for technology enablement Focus on quality is maintained at all stages ISO 9001:2015 certified Sourcing of
Slide 20: Backward Integration of our Facility
3. Backward Integration of our Facility Pressure Cooker Gasket Manufacturing Plant Glass Lid Manufacturing Plant • Backward integrated to now make all our pressure cooker gaskets in • At 32,000 lids a day we have our 100% requirement being house covered by this plant • The facility has a testing and
Slide 21: Wide range of branding and marketing
4. Wide range of branding and marketing Brand popularity and recall value is maintained by a wide range of marketing and advertising activities coordinated by in-house team of 5 personnel • in-shop displays, merchandising, kiosks, live demo stands and social media marketing • continuously engage wit
Slide 22: Introducing Distributor Management System
4. Introducing Distributor Management System Tally Connect and DMS Insights on basis of this picks up Pigeon data will help distributor Why DMS products billing data grow Improve operations DMS Insights and provide effective Improved inventory Information on the sales and inventory management leadin
Slide 23: Professional Management
5. Professional Management Mr. Rajendra Gandhi, Managing Director • Founder of Stove Kraft with over 21 years of experience • Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances in India • Continues to be closely involved in the day-to-day affairs of the Company an
Slide 24: Backed by Experienced Board
5. Backed by Experienced Board Ms. Shubha Rao Mayya, Independent Director Mr. Rajendra Gandhi, Managing Director Holds a bachelor’s degree in commerce from the University of Mumbai and is a Founder of Stove Kraft with over 21 years of experience chartered accountant with the Institute of Chartered A
Slide 25: Growth Strategies
Growth Strategies Scale up branding, promotional Increased advertising, factory visits for trade partners, increasing digital presence and engagements, and digital activities generating contemporary educational content and engaging in brand associations Expand our portfolio in the existing We pr
Slide 26: Shift in Consumption Patterns and Favourable Governments Policies
Shift in Consumption Patterns and Favourable Governments Policies Indian Consumer Appliance Market expected to grow @CAGR of ~9% Key Growth Drivers Indian Appliance and (INR Bn) Kitchen Appliances Market Consumer Electronics (ACE) Market LCA SCA Non Stick Cookware Moving towards Aspirational Lifesty
Slide 27: Indian Large & Small Cooking Appliance Market
Indian Large & Small Cooking Appliance Market Increasing Market for Large Cooking Appliances (LAC) Increasing Trend by Sub Segments – Value (INR Billion) Large Cooking Appliances 21,761 8 19,955 18,313 7 16,817 52 14,209 15,453 6 45 6 39 5 34 53 202 5 29 46 SKL is the market 179 25 39 159 30 34 lead
Slide 28: Non-Stick Cookware and Indian Household Utility Products
Non – Stick Cookware and Indian Household Utility Products Increasing Market for Non-Stick Cookware Types of Non-Stick Cookware Used (%) in 2020 11,389 74.1% 10,367 16.8% 67.0% 9,437 56.2% 8,590 7,819 9.9% 7,117 35.1% 21.0 6.4% 18.0 1.9% 1.3% 15.4 11.3 13.2 9.7 Frying Pan Cookware Appachetty Kadai T
Slide 29: Awards & Recognition
Awards & Recognition Awarded the ‘Gold Award’ by Quality Circle Forum of Awarded ‘India’s Most Admired Brand 2016’ by White India (Bengaluru chapter) in the years 2013 and 2014 Page International 28
Slide 30: CSR Activities
CSR Activities Enriching Lives In an area that was suffering from the shortage of one of the most basic needs of life, we worked to alleviate the pain of the people, however much we could. Stove Kraft saw to the drilling of a bore-well for the local village in order to meet the water-needs of the vi
Slide 31: Historical Financials
Historical Financials
Slide 32: Strong track record and financial stability
Strong track record and financial stability Revenues (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) 857 113 81 641 670 524 30 34 1 3 10 -12 FY 2018 FY 2019 FY 2020 FY21 FY 2018 FY 2019 FY 2020 FY21 FY 2018 FY 2019 FY 2020 FY21 Gross Profit Margins EBITDA Margins PAT Margins 35.0% 13.2% 9.5% 34.0% 32.5%
Slide 33: Strong track record and financial stability
Strong track record and financial stability RoCE 32.1% Working Capital (in Days) 7.8% 9.2% Working 2.1% 38 38 37 28 Capital (in Days) Mar-18 Mar-19 Mar-20 Mar-21 86 82 76 80 Cash Flow from Operations (Rs. 70 75 64 66 Crs.) 56 48 49 36 110 Mar-18 Mar-19 Mar-20^ Mar-21^ 11 13 16 Inventory Debtors Cred
Slide 34: Historical Profit & Loss Statement
Historical Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) FY21 Mar-20 Mar-19 Mar-18 Revenue from Operations 857.4 669.9 640.9 523.7 Cost of Materials Consumed 441.9 323.2 317.5 241.1 Purchase of stock-in-trade 125.2 128.8 132.6 120.3 Changes in Inventories of Finished Goods and Work in P
Slide 35: Historical Balance Sheet
Historical Balance Sheet EQUITY AND LIABILITIES (Rs. Crs.) 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 Equity share capital 32.6 24.7 24.7 18.9 Other equity 270.2 -83.4 -88.7 -199.0 Total Equity 302.8 -58.7 -63.7 -179.9 Financial liabilities Borrowings 20.7 204.8 210.0 311.3 Other Financial Liabilities
Slide 36: Historical Balance Sheet
Historical Balance Sheet ASSETS 31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 Property, plant and equipment 217.7 193.4 178.7 182.1 Capital work-in-progress 19.1 4.2 0.9 0.6 Intangible assets 3.2 3.6 1.2 0.6 Financial Assets Investments 0.0 0.9 0.0 0.0 Other Financial assets 5.3 5.0 5.1 3.8 Non-Current Ta
Slide 37: Thank You
Thank You Investor Relations Advisors : CIN: L29301KA1999PLC025387 Contact Person: Mr. Ashish Chovatia Mr. Irfan Raeen Email Address: +91 99300 44680 +91 97737 78669 Mr. Elangovan S., CS elangovan.s@stovekraft.com ashish.chovatia@linkintime.co.in irfan.raeen@linkintime.co.in