V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q2 FY20 Earnings Presentation
24 slides from V-guard Industries's earnings presentation, Nov 6, 2019
Slide 1: Exchange filing cover letter
November 06, 2019 The Manager The Manager Listing Department, Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited, Dalal Street, Exchange Plaza, 5th Floor, Plot No. C/I, Mumbai- 400 001 G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 051 Ref:-
Slide 2: V-Guard Industries Q2 FY20 Earnings Presentation
V-Guard Industries Q2 FY20 Earnings Presentation
Slide 3: Disclaimer
2 Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
Slide 4: Table of Contents
3 Table of Contents MD’s Message 04 Key Highlights 05 Financial Highlights 6-9 Segment-wise/Geographical Breakup of Revenues 10-12 Business Outlook 13 Annexure 14
Slide 5: Managing Director's Message
4 Managing Director’s Message Commenting on the performance for Q2 FY20, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, "The second quarter saw significant weakness in consumer demand, tight liquidity conditions and reduced discretionary spending, which impacted our
Slide 6: Key Highlights – Q2 FY20
5 Key Highlights – Q2 FY20 • Q2 FY20 revenue up 3.6% YoY to Rs. 619.3 crore in prevailing weak consumer demand conditions. Revenue growth of • Stabilisers, wires and pumps had good growth during the quarter. 3.6% YoY in Q2 FY20 • Non-South market revenues grew 7.5%, while South markets grew 1.5%, pa
Slide 7: P&L Snapshot
6 P&L Snapshot P&L Statement Q2 FY20 Q2 FY19 Change Q1 FY 20 H1 FY 20 H1 FY 19 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue 619.31 597.58 3.6% 699.39 1,318.70 1,232.47 7.0% COGS 410.16 420.56 -2.5% 471.71 881.86 862.48 2.2% Gross Margin 33.8% 29.6% 4.1% 32.6% 33.1%
Slide 8: Financial Highlights (Q2 FY20 vs Q2 FY19)
7 Financial Highlights (Q2 FY20 vs Q2 FY19) Total Income (Rs. crore) Gross Profit 209 598 619 177 Key ratios (%) Q2 FY20 Q2 FY19 Gross Margin 33.8% 29.6% 3.6% 18.2% EBITDA Margin (excl other income) 12.5% 8.3% Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Net Margin 9.3% 6.4% Ad Exp (incl. promotions)/Total Reven
Slide 9: Financial Highlights (H1 FY20 vs H1 FY19)
8 Financial Highlights (H1 FY20 vs H1 FY19) Total Income (Rs. crore) Gross Profit 1,319 437 1,232 370 Key ratios (%) H1 FY20 H1 FY19 Gross Margin 33.1% 30.0% 7.0% 18.1% EBITDA Margin (excl other income) 11.3% 7.8% H1 FY19 H1 FY20 H1 FY19 H1 FY20 Net Margin 8.3% 5.9% EBITDA (Rs. crore) PAT (Rs. crore
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 9 Balance Sheet Snapshot (Rs. cr) 30 Sept 2019 30 June 2019 30 Sept 2018 Net worth 963.05 955.2 799.7 Gross debt 10.0 10.0 10.0 Current Investments 160.4 166.6 158.9 Cash and cash equivalents 84.2 168.0 6.2 Net Cash Position (Rs. crore) 234.6 324.6 15
Slide 11: Segment-wise Breakup – Q2 FY20 vs Q2 FY19
10 Segment-wise Breakup – Q2 FY20 vs Q2 FY19 Q2 FY20 Q2 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 167.6 27.1% 161.4 27.0% 3.8% Electricals 276.8 44.7% 254.1 42.5% 8.9% Consumer Durables 175.0 28.3% 182.1 30.5% -3.9% Grand Total 619.3 100.0% 5
Slide 12: Segment-wise Breakup – H1 FY20 vs H1 FY19
11 Segment-wise Breakup – H1 FY20 vs H1 FY19 H1 FY20 H1 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 450.4 34.2% 401.9 32.6% 12.1% Electricals 539.9 40.9% 515.5 41.8% 4.7% Consumer Durables 328.4 24.9% 315.1 25.6% 4.2% Grand Total 1318.7 100.0%
Slide 13: Geographical Breakup of Revenues
12 Geographical Breakup of Revenues Q2 FY20 Q2 FY19 YoY growth Region Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) South 390.3 63.0% 384.5 64.3% 1.5% Non-South 229.0 37.0% 213.1 35.7% 7.5% Total Revenue 619.3 100% 597.6 100% 3.6% H1 FY20 H1 FY19 YoY growth Region Contribution (%) Contribu
Slide 14: Business Outlook
13 Business Outlook • The Company is confident of achieving a topline growth of 15% over the longer term driven by expansion into non-South markets and introduction of new product categories. • The Company continues to undertake business strengthening initiatives and putting in place best in class p
Slide 15: Annexure
14 vguande —- eS 4, far 000 © A | @® 6
Slide 16: Company Overview
15 Company Overview • Electronics – Stabilizers, UPS, Solar Inverter; Electricals – Wires, Pumps, Switchgears, Modular Comprehensive portfolio catering to Switches; Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers the mass consumption market • Household consumption market wil
Slide 17: Production Model
16 Production Model PVC Wires Factory Solar Water Heater Stabilizer Manufacturing Units Factory Product No. of Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~58% products PVC Wiring Cables 2 Coimbatore, Kashipur Pumps & Motors 1 Coimbatore • Compl
Slide 18: Financial Highlights (FY14-19)
17 Financial Highlights (FY14-19) Revenue EBITDA and EBITDA Margins PAT and PAT Margins 6.8% 6.4% 2,566 9.3% 6.0% 5.7% 2,321 9.9% 10.5% Rs. crore 2,114 8.4% 8.5% 4.6% 4.1% Rs. crore 1,746 1,862 7.9% Rs. crore 1,518 127 138 185 222 198 238 70 71 112 145 133 166 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15
Slide 19: Operational Highlights (FY14-19)
18 Operational Highlights (FY14-19) Ad & Promo Spends and as a % of Sales Expanding Geographic Presence 153 30% 33% 33% 35% 37% 39% 135 95 80 60 69 70% 67% 67% 65% 63% 61% 6.6% 4.5% 5.2% 3.9% 4.0% 4.3% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 South Non-Sout
Slide 20: Market Size across Product Segments
19 Market Size across Product Segments Products STABILIZERS PVC WIRES COOKTOPS MOTOR PUMPS Organized 700.00 5,500.00 420.00 – 450.00 5,500.00 Market Size (Rs. Crore)* Unorganized 550.00 4,000.00 180.00 – 200.00 5,000.00 Total 1,250.00 9,500.00 600.00 – 650.00 10,500.00 Micro tech, Livguard, Prestige
Slide 21: Market Size across Product Segments
20 Market Size across Product Segments Products WATER HEATERS FANS UPS Digital UPS Market Size (Rs. Organized 1,325.00 5,000.00 160.00 4,500.00 Crore)* Unorganized 700.00 1,500.00 240.00 750.00 Total 2,025.00 6,500.00 400.00 5,250.00 A.O. Smith, Racold, Bajaj, Crompton, Usha, Bajaj Microtek, Luminou
Slide 22: Market Size across Product Segments
21 Market Size across Product Segments Products SOLAR WATER HEATER SWITCHGEAR GAS STOVES MIXER GRINDERS Market Size (Rs. Organized 420.00 1,400.00 1,000.00 1,500.00 Crore)* Unorganized 180.00 600 1,000.00 1,000.00 Total 600.00 2,000.00^ 2,000.00 2,500.00 Racold, Emmvee Solar, Butterfly (glass top),
Slide 23: About V-Guard Industries
22 About V-Guard Industries V-Guard Industries Limited (BSE:532953, NSE: VGUARD) is a Kochi based company, incepted in 1977 by Kochouseph Chittilapilly to manufacture and market Voltage stabilizers. The Company has since then established a strong brand name and aggressively diversified to become a m
Slide 24: Thank You
THANK YOU