V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q1 FY21 Earnings Presentation
23 slides from V-guard Industries's earnings presentation, Jul 27, 2020
Slide 1: Exchange submission cover letter
July 27, 2020 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/1, Mumbai- 400 001 G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 051 Ref:- Ser
Slide 2: V-Guard Industries Q1 FY21 Earnings Presentation
V-Guard Industries Q1 FY21 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 10-11 Business Outlook 12 Annexure 13
Slide 5: Managing Director's Message
4 Managing Director’s Commenting on the performance for Q1 FY21, Mr. Mithun Chittilappilly, Managing Director – Message V-Guard Industries Limited said, "While headline numbers during Q1 indicate the effect of the Covid-19 pandemic along expected lines, we believe that the business has demonstrated
Slide 6: Key Highlights – Q1 FY21
5 Key Highlights – Q1 FY21 Revenue lower • Q1 FY21 revenue declined by 42% YoY to Rs. 405.8 crore by 42% YoY • Non-South market revenues declined by 47% while South markets were lower by 37.7% in Q1 FY21 • South markets’ contribution increased to 58.3% of the net revenue in Q1 FY21 compared to 54.3%
Slide 7: P&L Snapshot
6 P&L Snapshot P&L Statement Q1 FY21 Q1 FY20 Change Q4 FY20 FY 20 FY 19 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue 405.83 699.39 -42.0% 536.63 2,481.96 2,566.44 -3.3% COGS 287.26 471.71 -39.1% 357.75 1,658.20 1,799.18 -7.8% Gross Margin 29.2% 32.6% -3.3% 33.3% 33
Slide 8: Gross Margin Movement (Q1 FY21 vs. Q1 FY20)
7 Gross Margin Movement (Q1 FY21 vs. Q1 FY20) Particulars Q1 FY21 Q1 FY20 (in Rs. Cr) April May June Total April May June Total Turnover 4.52 183.80 217.50 405.82 199.34 258.63 241.42 699.39 Gross Profit 0.59 46.69 71.30 118.57 60.50 83.71 83.47 227.68 Gross Margin 13.0% 25.4% 32.8% 29.2% 30.4% 32.4
Slide 9: Financial Highlights (Q1 FY21 vs. Q1 FY20)
8 Financial Highlights (Q1 FY21 vs. Q1 FY20) Total Income (Rs. crore) Gross Profit 699 228 406 119 Key ratios (%) Q1 FY21 Q1 FY20 Gross Margin 29.2% 32.6% -42.0% -47.9% EBITDA Margin (excl. other income) 2.2% 10.2% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Net Margin 0.9% 7.5% Ad & Promotion Exp. (excl. schem
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 9 Balance Sheet Snapshot (Rs. Cr) 30 June 2020 31 March 2020 30 June 2019 Net worth 999.1 993.8 955.2 Gross debt 10.0 10.0 10.0 Current Investments 0.0 36.0 166.6 Cash and cash equivalents 359.3 111.5 168.0 Net Cash Position (Rs. crore) 349.3 137.5 32
Slide 11: Segment-wise Breakup – Q1 FY21 vs. Q1 FY20
10 Segment-wise Breakup – Q1 FY21 vs. Q1 FY20 Q1 FY21 Q1 FY20 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 137.7 33.9% 282.8 40.4% -51.3% Electricals 182.7 45.0% 263.2 37.6% -30.6% Consumer Durables 85.5 21.1% 153.4 21.9% -44.3% Grand Total 405.8 100
Slide 12: Geographical Breakup of Revenues
11 Geographical Breakup of Revenues Q1 FY21 Q1 FY20 YoY growth Region Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) South 236.4 58.3% 379.8 54.3% -37.7% Non-South 169.4 41.7% 319.6 45.7% -47.0% Total Revenue 405.8 100% 699.4 100% -42.0%
Slide 13: Business Outlook
12 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 14: Annexure
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Slide 15: Company Overview
14 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 16: Production Model
15 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 ~55% products PVC Wiring Cables 2 Coimbatore, Kashipur Pumps & Motors 1 Coimbatore • Compl
Slide 17: Financial Highlights (FY15-20)
16 Financial Highlights (FY15-20) Revenue EBITDA and EBITDA Margins PAT and PAT Margins 7.5% 11.2% 6.8% 6.0% 6.4% 2,566 2,482 5.7% 2,321 9.9% 10.5% 9.3% Rs. crore 2,114 8.5% 1,746 1,862 7.9% 4.1% Rs. crore Rs. crore 138 185 222 198 238 277 71 112 145 133 166 185 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY
Slide 18: Operational Highlights (FY15-20)
17 Operational Highlights (FY15-20) Ad & Promo Spends and as a % of Sales Expanding Geographic Presence 153 33% 33% 35% 37% 39% 41% 135 111 95 80 69 67% 67% 65% 63% 61% 60% 6.6% 4.5% 5.2% 4.5% 4.0% 4.3% FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 South Non-Sou
Slide 19: Market Size across Product Segments
18 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 (Rs. Crore)* Market Size 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 20: Market Size across Product Segments
19 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 21: Market Size across Product Segments
20 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 22: About V-Guard Industries
21 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 23: Thank You
=< V-GUARD THANK YOU