Pg Electroplast Limited · NSE:PGEL
Pg Electroplast — Investor Presentation (March 2023)
29 slides from Pg Electroplast's investor presentation, Mar 13, 2023
Slide 1: Intimation of investor/analyst meetings cover letter
March 13, 2023 To, To, The General Manager The Manager Department of Corporate Services) Listing Department BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip Cod
Slide 2: PG Electroplast Investor Presentation March 2023
PG Electroplast Investor Presentation March 2023
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 and across multiple product lines, thereby providing End to end Solutions to various Indian and Global brands. §PG has eight manufacturing units across Greater N
Slide 6: Our Business Verticals
Our Business Verticals 14000 42 Products Plastic Moulding Products 1308 12000 38 Plastic Moulding Consumer Durables • Indoor Units Sanitaryware Electronics 700 Room Air Conditioners • Outdoor Units Automotive 10000 Tool Manufacturing 4643 Consumer Electronics 46 8000 Figures in INR Millions 64 5460
Slide 7: 8 Strategically Located Manufacturing Units
1 4 Unit Units Roorkee, UK Greater Noida, UP 8 Strategically Located Manufacturing 3 Units Units Ahmednagar, MH 6
Slide 8: 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 9: Product Business Overview
§ Room Air Conditioner Product Business § Created one of the most backward integrated and one Overview of the largest Indian AC manufacturing plants at a single location in Ahmednagar, Maharashtra. § Current Monthly Capacities: 200k IDUs, 100k ODUs Product Business Composition 8000 § Washing Machine
Slide 10: Transformation into an End-to-end Solution Provider
Transformation into a End-to-end Solution Provider from a Pure Moulding supplier CM-ODM Product Business Mix 8000 § Historical revenue profile dominated 7000 by low asset-turn Plastic Injection CM Moulding business – Company 6000 ODM worked using customers’ moulds Figures in INR Millions and designs
Slide 11: Today and the Way Forward
§ The largest manufacturer of plastic moulded components for Consumer Durables industry in India1. § End to End Solutions Provider to Consumer Durable brands. Today § Focus on Cost Leadership and Product Leadership. and the § Strategic locations of manufacturing facilities. § Diversified Product Por
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 • Intense competition in market forcing consumer financing. brands to focus on Marketing while • Climate change leading to r
Slide 14: Government impetus through policy interventions
Impetus to Domestic Manufacturing PLI scheme worth INR 62bn announced for ACs and LED Lighting. PLI schemes can help in boosting domestic Production Linked manufacturing as well as addressing ‘China+1’ strategy of Incentives (PLI) global RAC brands. India can aim to capture 16% of the export market
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 allocations2 (5th) of the benefit in the sch
Slide 16: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 15
Slide 17: Growth Strategy
Gradual Growth improvement in margins due to better operational Strategy efficiencies and higher operating leverage • Product business to drive growth Improving profitability and for the company. higher cash- • Utilize platform strength to add flows, will lead to better capital new products – recent
Slide 18: Industry Outlook
Industry Outlook Rapid rate of urbanization, Government reforms like young population, rising Low penetration levels, falling Power for All, Nal se Jal, Digital income levels is leading to prices, and changing lifestyles India, Make in India, large emerging middle class in of the Indian consumer Aat
Slide 19: Agenda
Company Introduction Market Assessment Agenda Strategy & Outlook Financial Metrics 18
Slide 20: Key Financials
• The Company has grown ~2x in less than three years from a total income of ~INR 6,419 million in Fiscal 2020, to INR ~13,349 million for the 9 months ended December 31, 20222, and at a ~31% income CAGR over Fiscal 2020 to 2022 and EBITDA Key Financials increasing at a ~48% CAGR over the same period
Slide 21: Financial Metrics
• Net profit margin is showing an increasing trend over Fiscal 2020 to 2022 due to scale benefit and operating leverage. Financial • Increasing asset turns driving the RoCE growth for the company, which have scaled to high teens. Metrics • Company has undertaken numerous measures to improve capital
Slide 22: Business Breakup
• The Products business strategy is playing out for the company and very sharp ramp up is being seen in Product revenues. Product Business stood at INR 7,216 million and constituted 54.6% of the sales for the 9MFY20232. Business • For product business, capacities have been doubled from last year in
Slide 23: Thank You!
Thank You! We look forward to working with you! https://in.lin https://t https://www.yout ube.com/watch? kedin.com/c witter.co v=5BroRPMkLBU &ab_channel=PG ompany/pg- m/PGEle ELECTROPLAST electroplast ctroplast LIMITED
Slide 24: Annexures
Annexures
Slide 25: Major Highlights of 9MFY23
• 9MFY20231 has been strong growth period as Consolidated Sales grew 121% YoY and crossed INR 13,209 million for the company. • The Product business contributed 54.6% of the total revenues in 9MFY231. Room AC business at INR 4,977 million grew 431% YoY during the period1 while the Washing Machines b
Slide 26: 9MFY23 Profit and Loss - Consolidated
9MFY23 Profit and Loss - Consolidated (Figures in ₹ million) 2 2 Figures in ₹ million 9M FY22 9M FY23 Net Sales 5,979 13,209 Growth (%) 120.93% Expenditure 5,593 12,314 Cost of Materials Consumed 4,362 9,338 Purchase of Traded Goods 442 1579 Changes in inventories of finished goods and work-in- -86
Slide 27: Profit & Loss Statement
Profit & Loss Statement (Figures in ₹ million) Figures in ₹ million Mar-20 Mar-21 Mar-22 Net Sales 6,394 7,032 10,977 Growth (%) - 10.0% 56.1% Expenditure 5,993 6,534 10,232 Increase/Decrease in Stock (70) 32 (291) Raw Material Consumed 5,108 5,533 9,131 Power & Fuel Cost 166 161 206 Selling and Dis
Slide 28: Balance Sheet
Balance As at March, 31st As at March, 31st ASSETS 2020 2021 2022 EQUITY AND LIABILITIES 2020 2021 2022 Sheet Non-current assets Equity (a) Property, Plant and Equipment 2,532 2,726 4,403 (a) Equity Share capital 195 197 212 (b) Capital work-in-progress 55 60 49 (b) Other Equity 1,567 1,728 2,911 (F
Slide 29: Glossary
Glossary 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 [Operating Income/Net Sales] Interest Depreciation and Tax] CAGR Com