Pg Electroplast Limited · NSE:PGEL
Pg Electroplast — Investor Presentation (November 2024)
29 slides from Pg Electroplast's investor presentation, Nov 11, 2024
Slide 1: Exchange filing cover letter: Corporate Presentation
November 11, 2024 To, To, The Manager (Listing) The Manager (Listing) BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 533581 Scrip Symbol: PGEL Sub: Corp
Slide 2: PG Electroplast Investor Presentation November 2024
PG Electroplast Investor Presentation November 2024
Slide 3: Disclaimer
Disclaimer "This presentation and the accompanying slides (the “Presentation") contains selected information about the activities of PG Electroplast Limited ("Company") and its subsidiaries (together, the “Group") as at the date of the presentation. It does not purport to present a comprehensive ove
Slide 4: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 3
Slide 5: About PG Electroplast
About PG Electroplast ▪PGEL specializes in Original Design Manufacturing (ODM), Contract Manufacturing (CM), and Plastic Injection Moulding across multiple product lines, providing End-to-end Solutions to various Indian and Global brands. ▪PG has 9 manufacturing units across Greater Noida in Uttar P
Slide 6: Our Journey
Our Journey 1997 2014 1977 2003 2011 • Began • Entered • PG Group Color • Launched 2009 •New small starts as an producing Plastic Injection domestic electronic TV and Injection • Started Molding appliances components Audio Molding making CFL plant set up with a motor unit in Delhi Products Plant lig
Slide 7: Evolution of the Business
Evolution of the • From 2014, as the government policies changed and started Business favoring local manufacturing, the company started re-focusing on the product business. • The company’s Product Business Journey: • 2014: Air Coolers • 2017: Semi-Automatic Washing Machines (SAWM) • 2018: AC Indoor
Slide 8: Our Business Verticals
Our Business Verticals 30000 116 Products Plastic Moulding Products Plastic Moulding Electronics Tool Manufacturing 3524 25000 Consumer Durables 103 • Indoor Units Sanitaryware Room Air 1572 56 Conditioners • Outdoor Units Automotive Consumer Electronics 20000 7423 2143 Figures in INR Millions 6541
Slide 9: 9 Strategically Located Manufacturing Units
4 Units Greater Noida, UP 1 Washing Machines, LED TVs, Air Coolers, Unit PCB Assemblies, Plastic Moulding, Tool Manufacturing, PU Paintshop Roorkee, UK Washing Machines, Plastic Moulding 9 Strategically 1 + 1* Unit Located Bhiwadi, RJ Air Conditioners, Sheet Metal, Manufacturing Copper Tubing Units
Slide 10: Product Business Overview
▪ Room Air Conditioner Product Business ▪ Second largest ODM for Room Air Conditioners in India1. ▪ Efficiently serving pan-India demand through new facility Overview in Bhiwadi ▪ Current Monthly Capacities: 250k IDUs, 200k ODUs, 25k WACs Product Business Composition ▪ till 18000 ▪ Washing Machines
Slide 11: Key Highlights
▪ End to End Solutions Provider to Consumer Durable brands. ▪ Focus on Cost Leadership and Product Leadership. ▪ Strategic locations of manufacturing facilities. Key ▪ Diversified Product Portfolio enables greater Highlights customer acquisition opportunities. ▪ In-house Tool Design & R&D capabiliti
Slide 12: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 11
Slide 13: Key Growth Drivers for Products Business
Key Growth Drivers for Products Business Indian Overall Market Growth Outsourcing Market Growth • Low penetration levels in India • Increase in disposable incomes and rise in consumer • Intense competition in market forcing brands to focus financing on Marketing while outsourcing manufacturing • Cli
Slide 14: Government impetus to Domestic Manufacturing
Impetus to Domestic Manufacturing PLI scheme worth INR 62bn announced for ACs and LED Production Linked Lighting. PLI schemes can help in boosting domestic Incentives (PLI) manufacturing as well as addressing ‘China+1’ strategy of global RAC brands. Government Lower Income Tax for New companies that
Slide 15: PG's Unique Advantage under PLI for AC Components
PG’s Unique Advantage under PLI for AC Components PG Technoplast Private Limited (PGTL) is a wholly owned subsidiary of PG Electroplast which is engaged in the business of manufacturing Room Air Conditioners and various components. Have one of the largest allocations1 (5th) of the benefit in the sch
Slide 16: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 15
Slide 17: Growth Strategy
Operational Growth Efficiencies Focus on better efficiencies and Strategy leverage for improved margins • Product business to drive growth Profitability & Cash Flow for the company. Drive higher cash flows for capital • Utilize platform strength to add efficiency and a new products – recently added
Slide 18: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 17
Slide 19: Key Financials
• The Company has grown ~4x in four years from a total income of ~INR 6,419 million in FY20, to ~ INR 27,595 million in FY24, and EBITDA increasing at a ~60% CAGR over the same period. Key Financials • 1HFY25 Revenue stood at INR 19,920 million with a ~75.0% YoY growth, driven largely by growth in P
Slide 20: Financial Metrics
• Net profit margin demonstrates a consistent upward trend from FY21 to FY24, attributed to economies of scale and enhanced operating leverage Financial • Asset turnover improvement has been a key driver of RoCE, with figures rising to high teens by FY24 Metrics • The company improved capital effici
Slide 21: Business Breakup
• The Products business strategy is playing out for the company and very sharp ramp up is being seen in Product revenues. In 1H25, Product Business stood at INR 13,511.6 million and constituted 68% of the sales. Business • For product business, capacities have been increased in all three categories.
Slide 22: Annexures
Annexures
Slide 23: Major Highlights of 1HFY25
• 1HFY2025 has been strong growth period as Consolidated Sales grew 75% YoY at INR 19,920 million for the company. • The Product business contributed 68% of the total revenues in 1HFY25. Room AC business at INR 11,145 million grew 143% YoY during the period while the Washing Machines business for th
Slide 24: Summary of Consolidated Results 1HFY25
Particulars Q2 Q2 % H1 H1 % (INR Crores) FY2024 FY2025 Change FY2024 FY2025 Change Sales 460.42 671.30 45.8% 1138.04 1991.98 75.0% CORM 365.33 523.55 43.3% 920.41 1605.48 74.4% % of Sales 79.3% 78.0% 80.9% 80.6% Summary of Gross Contribution 95.09 147.74 55.4% 217.63 386.49 77.6% Consolidated % of S
Slide 25: Guidance for FY25
Guidance for ▪ For PGEL Consolidated Revenue guidance is of at least INR 4250 crores which is a growth of 54.7% over FY2024 FY25 Revenues of INR 2746.5 crores. This is despite TV business revenues shifting to JV company Goodworth Electronics Ltd. ▪ For Goodworth, Revenues we expect at INR 600 crores
Slide 26: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) (Figures in ₹ million) Figures in ₹ million FY20 FY21 FY22 FY23 FY24 Net Sales 6,394 7,032 11,116 21,599 27,465 Growth (%) 9.9% 58.1% 94.3% 27.2% Expenditure 5,995 6,534 10,226 19,838 24,847 Increase/Decrease in Stock (70) 32 (291) (283) (727) Raw Material Cons
Slide 27: Balance Sheet
Balance Sheet (Figures in ₹ million) As on 31st March, ASSETS 2020 2021 2022 2023 2024 EQUITY AND LIABILITIES 2020 2021 2022 2023 2024 Non-current assets Equity (a) Property, Plant and Equipment 2,532 2,726 4,403 5,766 7,813 (a) Equity Share capital 195 197 212 227 260 (b) Capital work-in-progress 5
Slide 28: Glossary
Glossary Please list only the abbreviations used in the presentation. Abbreviation Full Form / Definition Abbreviation Full Form / Definition EBITDA Earnings Before Interest Depreciation and Tax Operating Profit Margin Calculated as – Calculated as – [Earnings (including other income) Before [Operat
Slide 29: Thank You!
Thank You! We look forward to working with you!
PG Electroplast — Investor Presentation (November 2024) on 6ix