Stove Kraft Ltd. · NSE:STOVEKRAFT
Stove Kraft — Q4 FY21 Earnings Presentation
36 slides from Stove Kraft's earnings presentation, May 2021
Slide 1: Stove Kraft Limited Investor Presentation
STOVE KRAFT LIMITED INVESTOR PRESENTATION May 2021
Slide 2: 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 3: Q4 & FY21 Financial Performance
Q4 & FY21 Financial Performance
Slide 4: Strong FY21 Performance
Strong FY21 Performance Revenue from Operations +28% Revenue Breakup : FY21 Rs. 859 crores Pressure Cookers EBITDA +234% 22.0% LED 28.5% Rs. 113 crores Induction Cooktop EBITDA Margins at 13.1% 6.3% Gas Cook Top 5.2% Nonstick Cookware 8.6% Mixer Grinder Profit After Tax +2,758% 18.5% 10.9% Small App
Slide 5: Strong Q4 FY21 Performance
Strong Q4 FY21 Performance Revenue from Operations +53% Revenue Breakup : Q4 FY21 Rs. 235 crores Pressure Cookers Stellar Performance EBITDA Q4 FY20 : Rs. -1.7 crores LED 24.6% 25.6% Rs. 25 crores Induction Cooktop EBITDA Margins at 10.7% Gas Cook Top 5.8% 6.5% Nonstick Cookware Stellar Performance
Slide 6: Increased Volumes during the year
Increased Volumes during the year Pressure Cooker Gas Cooktops Induction Cooktops +90% +19% +11% +52% +21% -18% 8.0 25.9 1.8 8.6 2.5 8.1 21.8 1.6 6.7 7.0 1.6 4.2 Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 Non Stick Cookware LED Small Appliances/Mixers/Others +39% +
Slide 7: Improving Efficiencies
Improving Efficiencies Reducing Trading Sales (% of Sales) Reducing Debt (Rs. Crs.)* 13% 28% 338 10% 19% 185 90 48 15 Q4 FY20 Q4 FY21 FY20 FY21 Mar-20 Conversion IPO Proceeds Internal Current Debt of CCDs to Accruals Position Equity RoCE RoE Working Capital (in Days)^ Working Capital (in Days) 37 27
Slide 8: Profit & Loss Statement – Q4 & FY21
Profit & Loss Statement – Q4 & FY21 Profit & Loss Statement (Rs. Crs.) Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y Revenue from Operations 235.4 154.0 53% 859.0 669.9 28% Cost of Materials Consumed 137.7 74.9 442.4 323.2 Purchase of stock-in-trade 18.3 18.7 125.2 128.8 Changes in Inventories of Finished G
Slide 9: Balance Sheet as on 31st March 2021
Balance Sheet as on 31st March 2021 EQUITY AND LIABILITIES (Rs. Crs.) 31-Mar-21 31-Mar-20 ASSETS 31-Mar-21 31-Mar-20 Equity share capital 32.6 24.7 Property, plant and equipment 217.7 193.4 Other equity 270.1 -83.4 Capital work-in-progress 19.1 4.2 Total Equity 302.7 -58.7 Intangible Assets 3.2 0.3
Slide 10: Cash Flow Statement as on 31st March 2021
Cash Flow Statement as on 31st March 2021 Cash Flow Statement (Rs. Crs.) Mar-21 Mar-20 Cash Flow from Operating Activities Profit before Tax 81.2 2.8 Adjustment for Non-Operating Items -36.8 -34.4 Operating Profit before Working Capital Changes 117.9 37.2 Changes in Working Capital -8.1 -27.5 Cash G
Slide 11: Delivering value to stakeholders with IPO
Delivering value to stakeholders with IPO February 2021 ▪ Listing of Stove Kraft Limited on BSE & NSE ▪ IPO Price: Rs. 385 per share ▪ Listing Price: Rs. 467 per share ▪ Objects of Issue: o Repayment of certain borrowings availed by Company Stove Kraft Limited Listing at Valuation of ~ Rs. 1,500 Crs
Slide 12: About Stove Kraft Limited
About Stove Kraft Limited
Slide 13: About Stove Kraft Limited
About Stove Kraft Limited Manufacture and retail of a wide Well equipped backward and diverse suite of kitchen integrated manufacturing Headquartered in solutions under Pigeon, Gilma, facilities Bengaluru, Karnataka and Black+Decker brands • Bengaluru (Karnataka) Retail lighting solutions under the
Slide 14: Key Milestones
Key Milestones 1999 2001 2003 2008 2010 Investments by SIDBI Incorporated as Stove Granted trademark Granted trademark Received factory license First Investment by Kraft Pvt. Limited registrations for Gilma registrations for Pigeon for unit 1 of the Sequoia Bengaluru Facility 2014 2015 2018 2019 202
Slide 15: 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 16: 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 LPG Stoves • Small appliances –Food processors, rice cookers and titanium hard anodized cookware juicers, hand blenders, hand mixers, mini Massage apparatus choppe
Slide 17: With 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 products With forced air-cooling technology into multiple utilities Personal Blender Pro
Slide 18: Well connected distribution network
2. Well connected distribution network… ◼ Implemented BIZOM for tracking and capturing movement of field sales executives and Sales Services Framework service engineers on real time basis ◼ Utilise DMS to track secondary and tertiary sales and maintain inventory level at the distributor’s centre ◼ D
Slide 19: With 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 19
Slide 20: 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 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 15 personnel • in-shop displays, merchandising, kiosks, live demo stands and social media marketing • continuously engage wi
Slide 22: 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 23: 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 24: Growth Strategies
Growth Strategies Scale up branding, promotional and ◼ Increased advertising, factory visits for trade partners, increasing digital presence and engagements, generating digital activities contemporary educational content and engaging in brand associations Expand our portfolio in the existing ◼ We pr
Slide 25: 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 26: 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 27: 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 Tawa Appachetty Cookware Ka
Slide 28: Awards & Recognition
Awards & Recognition Awarded the ‘Gold Award’ by Quality Circle Forum of India Awarded ‘India’s Most Admired Brand 2016’ by White Page (Bengaluru chapter) in the years 2013 and 2014 International 28
Slide 29: 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 30: Historical Financials
Historical Financials
Slide 31: 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 32: 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 75 Cash Flow from Operations (Rs. Crs.) 70 64 66 56 48 49 36 110 Mar-18 Mar-19 Mar-20^ Mar-21^ 11 13 16 Inventory Debtors Cred
Slide 33: 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 34: 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 35: 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 36: Thank You
Thank You Investor Relations Advisors : CIN: U29301KA1999PLC025387 Contact Person: Mr. Deven Dhruva Ms. Neha Shroff Email Address: +91 9833373300 +91 7738073466 Mr. Elangovan S., CS elangovan.s@stovekraft.com deven.dhruva@linkintime.co.in neha.shroff@linkintime.co.in