Bajaj Electricals Limited · NSE:BAJAJELEC
Bajaj Electricals — Q4 FY2022 Earnings Presentation
30 slides from Bajaj Electricals's earnings presentation, May 17, 2022
Slide 1: Cover letter to stock exchanges
May 17, 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 Sir/M
Slide 2: Investor Presentation: Q4 FY'22
Investor Presentation : Q4 FY’22 17th May, 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. Executive Summary 2. Performance Overview 3. Financial Overview 4. Business Highlights 5. Corporate Initiatives 6. Annexures - FY’22 Statements Note : All financials depicted in this presentation are based on Consolidated Financial Results 3
Slide 5: Executive Summary: FY'22
Executive Summary : FY’22 1. Consolidated Revenue grew 5% on YoY basis in FY’22 a. During the year, Consumer Products Segment grew by 14% on YoY basis led by – • Strong double-digit growth in Fans, Appliances and Lighting • Synchronised growth across channels of Trade, MT, E-Com and Institutions b.
Slide 6: Performance Overview: Q4 FY'22
Performance Overview : Q4 FY’22 CP Performance (6.4% YoY growth ; 18% 2-Year CAGR) • Surpassed INR 1,000 crores mark (consecutively for last 3 quarters) • Operating Margin at 6.2%, dilution of 250 bps mainly on a/c of commodity headwinds & unfavourable mix • Surpassed milestone of INR 1,000 crores a
Slide 7: Financial Overview: Q4 FY'22
• Profit & Loss Statement • Segment Details Financial Overview : Q4 FY’22 • 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 Q4 FY’22 Q4 FY’21 YoY Gr (%) Q3 FY’22 Commentary Net Sales 1,334 1,258 6.0 % 1,320 Gross Margin : Less : COGS 988 891 10.9 % 951 • Decline in excess of 300 bps mainly Gross Margin 346 367 (5.7) % 369 on a/c of rise in input costs Sta
Slide 9: Segment Details
Segment Details Segment Revenue Commentary Q4 FY’22 Q4 FY’21 YoY Gr Q3 FY’22 CP Segment : Particulars (in Crores) (in Crores) (in %) (in Crores) • Flattish volume due to subdued rural 1,038 975 6.4 % 1,080 demand & lower offtake in E-Com Consumer Products • Gross Margin & EBIT dilution in EPC 296 28
Slide 10: Operational Highlights
Operational Highlights Category Growth Commentary Q4 FY’22 Q4 FY’21 YoY Gr Q3 FY’22 Fans : Particulars (in Crs) (in Crs) (in %) (in Crs) • > 20% growth on YoY basis backed Appliances 448 473 (5.3) % 682 by 130+ new launches in last 2 years (mainly premium & decorative) Fans 419 343 22.3 % 198 Lighti
Slide 11: Cash Flow Summary
Cash Flow Summary (All fig. in INR Crores) Particulars Q4 FY’22 Q4 FY’21 Commentary 52 72 WC release on a/c of : Profit Before Tax Adjustments for : • Inventory lower by INR 80 crores (aided • Non-Cash items 3 27 by summer product sales of CP BU) • (Increase) / Decrease in WC 208 (61) • Trade receiv
Slide 12: Debt Position
Debt Position (All fig. in INR Crores) Particulars As on Mar’22 As on Dec’21 As on Mar’21 Gross Debt* 45 201 471 Less: Cash & Cash Equivalent 119 45 46 Net Debt (74) 156 425 Net Worth 1,705 1,659 1,578 Net Debt / Equity (x) NA 0.1 0.3 *includes INR 23 crores with scheduled repayment dates in Aug’22
Slide 13: Business Highlights
• New Launches (Consumer Products, Illumination) • Brand Campaigns (Consumer Products) Business Highlights • Project Update (Power Transmission, Distribution) • Awards & Recognitions 12
Slide 14: New Product Launches (Fans)
New Product Launches (Fans) Energos 26 BEE 5 star rated** Silent BLDC motor (26W) >65% savings in electricity z Nuvo Dominus Silent BLDC Motor Silent BLDC motor Table Cum Pedestal Fan 56* 26 speed functions with Remote Control 18 Blades with remote control Launches in Q4 *c.90 during FY’22 | **Star
Slide 15: New Product Launches (Appliances & Lighting)
New Product Launches (Appliances & Lighting) Juvel MG Juvel Digital MG 800W Titan motor with 800W Titan Motor with Nutri-Pro feature, 40% Nutri-Pro feature & faster grinding, Jar lock Preset Menus mechanism 25* Launches z in Q4 4B Gas Stove Hyperion Downlighter With Auto ignition Recessed LED; avail
Slide 16: Brand Campaigns (Consumer Products)
Brand Campaigns (Consumer Products) Pongal Mixer Grinder Campaign Air Cooler Campaign (AP & Karnataka) (PAN India) 15
Slide 17: New Product Launches (Illumination)
New Product Launches (Illumination) Arian Plus Post Top Supremo Landscape lighting with high Most efficient Solar efficiency (100 LPW) Streetlight (195 LPW) 106* Launches in Q4 Praze Gleam Broad Beam Floodlight series Low wattage floodlight (range 150 to 200 LPW) for small junction & periphery light
Slide 18: Project Update
Project Update Power Transmission (PT) • Orders worth INR c.480 crores secured (c.90% from PGCIL & c.80% in core transmission segment) • L1 in orders worth INR 107 crores (c.70% domestic & c.30% international) • c.210 c-kms of transmission line commissioned in Q4 FY’22 Wardha Substation (MH) Power D
Slide 19: Awards & Recognitions
ee Awards & Recognitions BAJAJ © Bajaj pecticals Ltd. /aspiri (WG Trust GREATS a ed TO WORK <ez/ GOOD DESIGN® Award 2021 Skive TMH36 18
Slide 20: Corporate Initiatives
• Portfolio Updates • Brand Licensing : Morphy Richards Corporate Initiatives • Technology Partnership : Wtec • ESG Framework 19
Slide 21: Portfolio Updates
Portfolio Updates Corporate Restructuring Update • Conceptualisation of Vision & Carve-Out for Bajel Projects Ltd • Demerger scheme filed with Stock Exchanges (awaiting approval) • Governance structure in place to carry out seamless transition Starlite Lighting Ltd. • Scheme of Merger for absorption
Slide 22: Brand Licensing: Morphy Richards
Brand Licensing : Morphy Richards L-R: Fergal Naughton, Executive Chairman, Glen Dimplex; Shekhar Bajaj, CMD, Bajaj Electricals, Anuj Poddar, ED, Bajaj Electricals • Extension of Exclusive license for further 15 years w.e.f. 1st July’22 • Endeavour for superior value creation in India & neighboring
Slide 23: Technology Partnership: Wtec
Technology Partnership : Wtec • To provide smartengine (intelligent building technology) for network-powered lighting & sensor infrastructure in India • Energy-efficient smart lighting based on fine-mesh sensor network (potential energy saving to tune of 30-75%) • Partnership aimed to bring disrupti
Slide 24: ESG Initiatives & Framework
ESG Initiatives & Framework 1 ESG Purpose 4 Strategic Pillars 10 Focus Areas Our Purpose : “Inspiring Sustainable Living” 23
Slide 25: Thank You
Thank You 24
Slide 26: Annexures (FY'22 Statements)
• Profit & Loss (P&L) Annexures (FY’22 Statements) • Balance Sheet (BS) • Cash Flow (CF) 25
Slide 27: Profit & Loss (P&L) Statement: FY'22
(All fig. in INR Crores) Profit & Loss (P&L) Statement : FY’22 Particulars FY’22 FY’21 YoY Gr (%) Net Sales 4,813 4,585 5.0% Less : COGS 3,425 3,239 5.7% Gross Margin 1,388 1,345 3.2% Staff Cost 401 395 1.7% Other Expenses 736 648 13.7% Less : Dep. & Amortisation 69 75 (7.9) % Add : Other Income 68
Slide 28: Balance Sheet Statement
Balance Sheet Statement (All fig. in INR Crores) Particulars FY’22 FY’21 Particulars FY’22 FY’21 Assets Equity & Liabilities Non-Current Assets Share Capital 23 23 Reserves & Surplus 1,709 1,555 Fixed Assets (incl. Goodwill) 797 549 Minority Interest (26) (0) Financial/Non-Financial Assets 398 621 T
Slide 29: Cash Flow Summary
Cash Flow Summary (All fig. in INR Crores) Particulars FY’22 FY’21 Profit Before Tax 166 246 Adjustments for : • Non-Cash items 128 100 • (Increase) / Decrease in WC 665 324 • Taxes Paid (45) (12) Net Cash from Operating Activities (A) 914 658 Investment for Control in Group Entities (25) 0 Capital
Slide 30: Shareholding Information
Shareholding Information Pattern as on 31st March, 2022 14.4% For IR related queries 12.0% Write to us at Rakesh Dash Rakesh.dash@bajajelectricals.com 10.6% 63.0% Suketu Shah Suketu.shah@bajajelectricals.com Promoter & Promoter Group Foreign Institutional Investors Domestic Investors Others/Retail I