Bajaj Electricals Limited · NSE:BAJAJELEC
Bajaj Electricals — Q3 FY2022 Earnings Presentation
24 slides from Bajaj Electricals's earnings presentation, Feb 8, 2022
Slide 1: Cover letter to stock exchanges
February 8, 2022 To, BSE Limited : Scrip Code- 500031 Department of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 National Stock Exchange of India Limited : BAJAJELEC - Series: EQ Listing Department Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Dear S
Slide 2: Investor Presentation: Q3 FY'22
Investor Presentation : Q3 FY’22 08th February 2022
Slide 3: Disclaimer
Disclaimer The material that follows is a Presentation of general background information about the activities of Bajaj Electricals Limited (“Company”) or its subsidiary or joint venture or associate (together with the Company, the “Group”) as at the date of the Presentation or as otherwise indicated
Slide 4: Table of Contents
Table of Contents 1. Covid-19 Update 2. Performance Overview 3. Financial Overview 4. Business Highlights 5. Update : Corporate Restructuring 3
Slide 5: Covid-19 Update
Covid-19 Update 1. c.92% of on-roll employees are fully vaccinated 2. All offices have resumed & are operational 3. Head office working at c.50%, following Covid protocols 4. Adopting a hybrid model 5. Sales, Operations, Manufacturing and Logistics operations continue to function smoothly 4
Slide 6: Performance Overview
Performance Overview CP Performance (moderate 6% YoY de-growth on higher base ; 12% 2-Year CAGR) • Surpassed INR 1,000 crores mark (2nd highest historical high) • Operating Margin at 9.0% (dilution of 330 bps mainly on a/c of rise in input costs & -ve operating leverage) • 2-year Operating Profit (E
Slide 7: Financial Overview
• Profit & Loss Statement • Segment Details Financial Overview • Operational Highlights • Cash Flow Summary • Debt Position 6
Slide 8: Profit & Loss (P&L) Statement
(All fig. in INR Crores) Profit & Loss (P&L) Statement Particulars Q3 FY’22 Q3 FY’21 YoY Gr (%) Q2 FY’22 Commentary Net Sales 1,320 1,500 (12.0) % 1,302 Staff Cost : Less : COGS 951 1,052 (9.6) % 918 • Includes 2 rounds of salary Gross Margin 369 448 (17.7) % 384 increment post Q3 FY’21 (in Jan’21 a
Slide 9: Segment Details
Segment Details Segment Revenue Commentary Q3 FY’22 Q3 FY’21 YoY Gr Q2 FY’22 CP Segment : Particulars (in Crores) (in Crores) (in %) (in Crores) • Volume de-growth mainly due to high base effect (heavy pent-up Consumer Products 1,080 1,153 (6.3) % 1,035 demand in Q3 FY’21) and greater exposure to ru
Slide 10: Operational Highlights
Operational Highlights Category Growth Commentary Q3 FY’22 Q3 FY’21 YoY Gr Q2 FY’22 Fans : Particulars (in Crs) (in Crs) (in %) (in Crs) • Double-digit 2 year CAGR (c.26%) Appliances 682 716 (4.7) % 603 backed by new launches Fans 198 190 4.2 % 220 Appliances : Lighting 130 150 (13.2) % 131 • De-gro
Slide 11: Cash Flow Summary
Cash Flow Summary (All fig. in INR Crores) Particulars Q3 Q3 9M 9M Commentary FY’22 FY’21 FY’22 FY’21 Profit Before Exceptional Items and Tax 66 134 114 174 Cash from Operations: Adjustments for : • Non-Cash items 32 20 125 73 • To the tune of INR 139 crores for • (Increase) / Decrease in WC 60 7 45
Slide 12: Debt Position
Debt Position (All fig. in INR Crores) Particulars As on Dec’21 As on Sep’21 As on Dec’20 Gross Debt 201 281 441 Less: Cash & Cash Equivalent 45 44 28 Net Debt 156 237 413 Networth 1,659 1,606 1,527 Net Debt / Equity (x) 0.09 0.15 0.27 Interest Coverage (x) (YTD) 3.1 Note : Interest coverage = EBIT/
Slide 13: Business Highlights
• New Launches (Consumer Products, Illumination) • Brand Campaigns (Consumer Products) Business Highlights • Marquee Project (Illumination) • Project Update (Power Transmission, Distribution) • Awards & Recognitions 12
Slide 14: New Product Launches (Consumer Products)
New Product Launches (Consumer Products) Twister Neo Fierro Nutri-Pro feature with Titanium glass lined coated 2-in-1 function blade tank with Swirl flow technology Ivora Duo Glow LED 32* Herculo 3 mode options- Cool Day, Launches Heavy weight plastic-body Warm Day & Decorative Mode Iron in Q3 Hurri
Slide 15: Brand Campaigns (Consumer Products)
Brand Campaigns (Consumer Products) Water Heater Campaign (Pan India) Mixer Grinder Festive Campaign (Pan India) 14
Slide 16: New Product Launches (Illumination)
New Product Launches (Illumination) Nuke Hexo High Lumen efficacy & UV & corrosion resistant, Uniform Illumination non-yellowing secondary lens 173* Launches in Q3 Levitare Lucid Workspace ambience High Energy Efficient & lighting (suspended & improved Thermal recessed) Management * 331 during 9M FY
Slide 17: Marquee Project (Architectural Lighting)
Marquee Project (Architectural Lighting) Baladevjew Temple, Odisha Heritage Lighting 16
Slide 18: Project Update
Project Update Power Transmission (PT) • L1 in orders worth INR 510 crores (c.90% domestic & c.10% international) • c.111 ckms of transmission line commissioned at Karnataka • Commissioning of the Hybrid Gas Insulated substation for PGCIL at Bhadla, Rajasthan with one of the longest bus ducts HGIS,
Slide 19: Awards & Recognitions
Awards & Recognitions © BAJAJ a Ss ——a Bajaj Electricals winner in ENVIRONMENT LEADERSHIP in the Manufacturing Sector Project Evaluation and Recognition Program’ by FROST & SULLIVAN We are proud to have won the SUSTAINABILITY EXCELLENCE AWARD *s Awards ***
Slide 20: Update: Corporate Restructuring
• Strategic Intent Update : Corporate Restructuring • Proposed Structure : Key Highlights 19
Slide 21: Strategic Intent
Strategic Intent Bajaj Electricals Limited (Existing) RemainCo & DivestCo (Proposed) Streamlined Business Enhances Focus Long term EPC Segment Structure on each business growth Distinct PowerPower Power Attract & retain the right Enhances growth Distribution Illumination Organisation Transmission Di
Slide 22: Proposed Structure: Key Highlights
Proposed Structure : Key Highlights Transaction Mechanics • New Company “ Bajel Projects Limited (BPL)” incorporated • Power Distribution & Power Transmission business segments to be demerged to BPL on a going concern basis, • Above is pursuant to a scheme of arrangement of demerger via Consumer Pro
Slide 23: Thank You
Thank You 22
Slide 24: Shareholding Information
Shareholding Information Pattern as on 31st December, 2021 13.6% For IR related queries 11.6% Write to us at Rakesh Dash Rakesh.dash@bajajelectricals.com 11.8% 63.0% Suketu Shah Suketu.shah@bajajelectricals.com Promoter & Promoter Group Foreign Institutional Investors Domestic Investors Others/ Reta