Eureka Forbes Limited · NSE:EUREKAFORB
Eureka Forbes — Q4 FY24 Earnings Presentation
39 slides from Eureka Forbes's earnings presentation, May 28, 2024
Slide 1: Q4 FY24 & FY24 Earnings Presentation
Q4 FY24 & FY24 Earnings Presentation May 28, 2024
Slide 2: Disclaimer
Disclaimer The statements contained in this document speak only as at the date as of which they are made and certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ with
Slide 3: Agenda: Q4 FY24 Highlights, FY24 Highlights, Transformation Update
➢ Q4 FY24 Highlights ➢ FY24 Highlights ➢ Transformation Update ➢ Overview ➢ Eureka Forbes ➢ Industry 3
Slide 4: Q4 FY24 Highlights (Standalone Results)
Q4 FY24 Highlights (Standalone Results) Q4 FY24 Q4 FY23 YoY Revenue Rs. 553.1Cr Rs. 508.1Cr +8.8% Continuing Business^ - - +11.4% 012262 Adj. EBITDA* Rs. 61.9Cr Rs. 47.4Cr +30.6% Adj. EBITDA Margin* 11.2% 9.3% +186bps Adj. PBT** Rs. 48.6Cr Rs. 35.0Cr +38.9% PAT Rs. 21.4Cr Rs. 16.3Cr +31.1% ^ Exclude
Slide 5: Q4 FY24 Standalone P&L Statement
Q4 FY24 Standalone P&L Statement Particulars (Rs. Cr) Q4 FY24 Q4 FY23 YoY (%) Q3 FY24 QoQ (%) Revenue 553.1 508.1 8.8% 538.6 2.7% Employee Benefit Expenses 75.1 61.6 22.0% 71.9 4.5% Service Charges 79.6 77.1 3.1% 70.2 13.3% Other Expenses 109.6 117.6 -6.8% 122.3 -10.5% Total Expenses 264.3 256.3 3.1
Slide 6: Revenue: Second consecutive quarter of double-digit growth
Revenue : Second consecutive quarter of double-digit growth^ Revenue Growth 16.8% 11.4% 14.1% 4.8% 8.8% -0.1% 012262 3.0% -3.8% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Reported Continuing Business^ ▪ Continuing business grows 11.4% YoY; Fourth successive quarter of volume growth ▪ Sustained growth in both Water
Slide 7: Service: First-ever advertising campaign focused on Genuine Service
Service : First-ever advertising campaign focused on Genuine Service 012262 Click on the image to view the video 7
Slide 8: Service: New filters allow customers to verify authenticity
Service : New filters allow customers to verify authenticity New design with QR code Convenient app-based authentication Instant verification & awareness 012262 8
Slide 9: Adjusted EBITDA Margin: Record-high of 11.2%
Adjusted EBITDA Margin* : Record-high of 11.2% Adjusted EBITDA Margin* % 11.2% 10.5% 9.8% 9.8% 012262 9.3% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 ▪ Adjusted EBITDA Margin expanded 186bps YoY driven by operating leverage and structured cost optimization program * Pre-ESOP charges 9
Slide 10: Agenda: FY24 Highlights
➢ Q4 FY24 Highlights ➢ FY24 Highlights ➢ Transformation Update ➢ Overview ➢ Eureka Forbes ➢ Industry 10
Slide 11: FY24 Highlights (Standalone Results)
FY24 Highlights (Standalone Results) FY24 FY23 YoY Revenue Rs. 2,189.2Cr Rs. 2,080.4Cr +5.2% Continuing Business^ - - +7.9% 012262 Adj. EBITDA* Rs. 226.3Cr Rs. 131.7Cr +71.9% Adj. EBITDA Margin* 10.3% 6.3% +401bps Adj. PBT** Rs. 172.0Cr Rs. 67.0Cr +156.8% PAT Rs. 91.5Cr Rs. 17.1Cr +435.5% ^ Excludes
Slide 12: FY24 Standalone P&L Statement
FY24 Standalone P&L Statement Particulars (Rs. Cr) FY24 FY23 YoY (%) Revenue 2,189.2 2,080.4 5.2% Employee Benefit Expenses 293.3 300.5 -2.4% Service Charges 301.6 297.6 1.4% Other Expenses 467.0 505.3 -7.6% Total Expenses 1,062.0 1,103.4 -3.8% Total Expenses % of Revenue 48.5% 53.0% -453bps Adj. EB
Slide 13: Cash Flow: Efficient cash management leading to net surplus
Cash Flow : Efficient cash management leading to net surplus Cash generated from operations (Rs Cr) Net Surplus / (Debt) (Rs Cr) 194 108 175 012262 -50 FY23 FY24 FY23 FY24 ▪ Improved profitability and credit control were key drivers of cash flow generation ▪ Credit rating upgrade from CARE A Stable
Slide 14: Agenda: Transformation Update
➢ Q4 FY24 Highlights ➢ FY24 Highlights ➢ Transformation Update ➢ Overview ➢ Eureka Forbes ➢ Industry 14
Slide 15: EFL's key strategic priorities for profitable growth
EFL’s key strategic priorities for profitable growth Grow the Water Purifier Business Go Digital First 01 • Innovation and new product development 04 • Give customers control and visibility • Jump shift in distribution • Digital enablement of value chain 012262 Expand Portfolio Drive Lean Cost Struc
Slide 16: Grow the Water Purifier Business: Drive Penetration
01 Grow the Water Purifier Business : Drive Penetration Launch of affordable water purifier supported by advertising campaign A person and child in a kitchen Description automatically generated with medium confidence 012262 Aquaguard Sure Water Purifier Category Creating Campaign Launched in Entry-l
Slide 17: Grow the Water Purifier Business: Drive Innovation
01 Grow the Water Purifier Business : Drive Innovation Several category-first innovations launched 012262 Water Plus Form and Technology Functionality Alkaline and Stainless-Steel Range Slimtech UV Range Instant Hot and Ambient 17
Slide 18: Expand Portfolio: Strengthen Cleaning and Air
02 Expand Portfolio : Strengthen Cleaning and Air Best-in-class innovations launched 012262 Convenient and Cordless Cleaning Differentiated Portfolio Affordable Premium Products Uprights to Robotics Forbes Buddy Pet Grooming Kit Surround 360 Range of Air Purifiers Strong growth in new segments 18
Slide 19: Transform Customer Experience
03 Transform Customer Experience 360o intervention to drive customer experience and address service opportunity 012262 Enhanced Customer Experience New Service Booking Experience Segmented AMC Offerings Service Campaign on Web and App on TV, Print and Digital Service metrics at an all-time high 19
Slide 20: Go Digital First
04 Go Digital First New UI/UX on App and Website to drive customer connect, convenience & commerce App and Web based interactions (%) 012262 75% 30% JUN'23 MAR'24 20
Slide 21: Drive Lean Cost Structures: Creating headroom for growth investments
05 Drive Lean Cost Structures : Creating headroom for growth investments Opex as % of Revenue 53.0% -453bps % Revenue FY24 FY23 Change 48.5% Employee expenses 13.4% 14.4% -105bps Service charges 13.8% 14.3% -53bps 012262 Other expenses 21.3% 24.3% -295bps FY23 FY24 1. Reduction across all key spend
Slide 22: Build Future Ready Organization
06 Build Future Ready Organization Building Alignment and Ownership – Industry-first ESOP Plan for all Managers 012262 Building New Capabilities – R&D : Design & IoT Digital : Product Management & Engineering Getting Closer to Customers and Partners – Data Science Decentralized Regional Organization
Slide 23: Management Views
Management Views “As we exit the first full year of our transformation program Udaan, I am pleased to report Mr. Pratik Pota progress on multiple fronts. MD & CEO Continuing businesses grew by 11.4% in Q4 and by 7.9% for the year with H2 growth of 14.0%. Driven by operating efficiencies and leverage
Slide 24: Agenda: Overview Eureka Forbes
➢ Q4 FY24 Highlights ➢ FY24 Highlights ➢ Transformation Update ➢ Overview ➢ Eureka Forbes ➢ Industry 24
Slide 25: Eureka Forbes: Overview
Eureka Forbes: Overview Electrolux & Shapoorji Pallonji Advent Tata Group Group International Professionally managed 012262 company governed by an 1982 2002 2022 Independent Board Joint Venture Subsidiary of a Publicly listed Public Company Company Shareholding 62.56 % Advent International 25
Slide 26: Pioneers & Leaders
Pioneers & Leaders Vacuum Cleaners Water Purifiers Direct Selling 26
Slide 27: Diversified Portfolio
Diversified Portfolio Market leaders in Water Purifiers and Vacuum Cleaners Wide range of products with state- of-the-art technology Product portfolio catering to both B2C and B2B customers Diversified revenue streams across product and service 27
Slide 28: One of the strongest consumer brands in India
: One of the strongest consumer brands in India Universal Brand Awareness and Consideration 40 Years of Unconditional Trust and Acceptance Click on the image to view the video 28
Slide 29: Omni Channel Presence
Omni Channel Presence • Direct Sales • General Trade • Modern Retail • Ecommerce • D2C • B2B • Canteen Stores (CSD) 29
Slide 30: Extensive Service network and strong customer connect
Extensive Service network and strong customer connect 19,500 ~14 30
Slide 31: EFL Management Team
EFL Management Team 012262 31
Slide 32: Agenda: Industry
➢ Q4 FY24 Highlights ➢ FY24 Highlights ➢ Transformation Update ➢ Overview ➢ Eureka Forbes ➢ Industry 32
Slide 33: Macro factors supportive of growth
Macro factors supportive of growth 012262 Growing consciousness Low Category Penetration Availability & Access to Growth in Electrification on health & hygiene of the core categories piped water 96.7% of Indian households now Amongst the lowest in Jal Jeevan Mission now covers Especially post Covid
Slide 34: Water Purifier Industry to grow at ~12% CAGR during FY23-FY28P
Water Purifier Industry to grow at ~12% CAGR during FY23-FY28P Water Purifier Penetration (CY2022) Water Purifier Industry – Products (Rs Cr) 11.7% CAGR 7,580 95% 985 80% 3.8% CAGR 4,350 3,610 783 012262 830 6,595 25% 3,567 2,780 6% South Korea Japan China India FY2018 FY2023 FY2028P Branded Unbrand
Slide 35: Water Purifier Services to become a Rs 6,500 Cr market by FY28P
Water Purifier Services to become a Rs 6,500 Cr market by FY28P Water Purifier Industry – Service (Rs Cr) 12.2% CAGR 6,500 2,275 012262 1.2% CAGR 3,660 3,330 1,830 1,830 4,225 1,500 1,830 FY2018 FY2023 FY2028P Branded Unbranded Source: Consumer Market Purification Devices in India – A Whitepaper by
Slide 36: Vacuum Cleaner Market to nearly double by FY28P
Vacuum Cleaner Market to nearly double by FY28P Vacuum Cleaner Penetration Vacuum Cleaner Industry (Rs Cr) 14.2% CAGR 96% 987 88% 012262 6.0% CAGR 509 380 20% 2% Japan Hong Kong China India FY2018 FY2023 FY2028P Source: Consumer Market Purification Devices in India – A Whitepaper by Technopak (repro
Slide 37: Rising demand for Air Purifiers amid deteriorating air quality
Rising demand for Air Purifiers amid deteriorating air quality Global Air Quality Index (AQI*) (CY2022) Air Purifier Industry (Rs Cr) ^ 83 out of 100 most polluted cities globally are in India, exceeding WHO’s air quality guidelines by more than 10 times 108 14.1% CAGR 444 012262 71 5.0% CAGR 230 49
Slide 38: Contact Us
Contact Us Corporate Identification No: L27310MH2008PLC188478 Regd. & Corporate Office: B1/B2, 7th Floor, 701, Marathon Innova, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013 Website: https://www.eurekaforbes.com/ Investor e-mail id: Investor.Relations@eurekaforbes.com EFL BSE Scrip Code : 54348
Slide 39: Thank You
THANK YOU of" FORBES