V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q3 FY20 Earnings Presentation
24 slides from V-guard Industries's earnings presentation, Jan 31, 2020
Slide 1: Exchange filing cover letter
January 31, 2020 The Manager, Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 The Manager, Listing Department, National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra-East, Mumbai- 400 051 Scrip
Slide 2: V-Guard Industries Q3 FY20 Earnings Presentation
V-Guard Industries Q3 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 Q3 FY20, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, "During the third quarter, which included the annual festive season, consumer sentiment continued to be sluggish and demand outlook remained challe
Slide 6: Key Highlights – Q3 FY20
5 Key Highlights – Q3 FY20 • Q3 FY20 revenue up 5.4% YoY to Rs. 626.6 crore. Revenue growth of • Fans, electric water heaters and pumps had good growth during the quarter. 5.4% YoY in Q3 FY20 • Non-South market revenues grew 7.8% , similar to Q2 FY20, while South markets grew 4.0%. • Non-South marke
Slide 7: P&L Snapshot
6 P&L Snapshot P&L Statement Q3 FY20 Q3 FY19 Change Q2 FY20 9M FY 20 9M FY 19 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue 626.64 594.27 5.4% 619.31 1,945.34 1,826.75 6.5% COGS 418.58 415.89 0.6% 410.16 1,300.44 1,278.37 1.7% Gross Margin 33.2% 30.0% 3.2% 33.8% 33.
Slide 8: Financial Highlights (Q3 FY20 vs Q3 FY19)
7 Financial Highlights (Q3 FY20 vs Q3 FY19) Total Income (Rs. crore) Gross Profit 627 208 594 178 Key ratios (%) Q3 FY20 Q3 FY19 Gross Margin 33.2% 30.0% 5.4% 16.6% EBITDA Margin (excl. other income) 9.5% 7.6% Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Net Margin 6.8% 5.7% Ad Exp (incl. promotions)/Total Reven
Slide 9: Financial Highlights (9M FY20 vs 9M FY19)
8 Financial Highlights (9M FY20 vs 9M FY19) Total Income (Rs. crore) Gross Profit 1,945 645 1,827 548 Key ratios (%) 9M FY20 9M FY19 Gross Margin 33.2% 30.0% 6.5% 17.6% EBITDA Margin (excl. other income) 10.7% 7.7% 9M FY19 9M FY20 9M FY19 9M FY20 Net Margin 7.8% 5.8% Ad Exp (incl. promotions)/Total
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective 9 Balance Sheet Snapshot (Rs. cr) 31 December 2019 30 September 2019 31 December 2018 Net worth 1008.7 963.1 837.5 Gross debt 10.0 10.0 10.0 Current Investments 180.0 160.4 157.1 Cash and cash equivalents 153.3 138.5 55.8 Net Cash Position (Rs. crore)
Slide 11: Segment-wise Breakup – Q3 FY20 vs Q3 FY19
10 Segment-wise Breakup – Q3 FY20 vs Q3 FY19 Q3 FY20 Q3 FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 153.8 24.5% 152.5 25.7% 0.8% Electricals 270.9 43.2% 257.9 43.4% 5.0% Consumer Durables 202.0 32.2% 183.8 30.9% 9.9% Grand Total 626.6 100.0% 59
Slide 12: Segment-wise Breakup – 9M FY20 vs 9M FY19
11 Segment-wise Breakup – 9M FY20 vs 9M FY19 9M FY20 9M FY19 YoY growth Segment Revenue Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) Electronics 604.2 31.1% 554.4 30.3% 9.0% Electricals 810.8 41.7% 773.4 42.3% 4.8% Consumer Durables 530.3 27.3% 498.9 27.3% 6.3% Grand Total 1,945.3 100.0%
Slide 13: Geographical Breakup of Revenues
12 Geographical Breakup of Revenues Q3 FY20 Q3 FY19 YoY growth Region Contribution (%) Contribution (%) (Rs. Cr) (Rs. Cr) (%) South 388.1 61.9% 373.0 62.8% 4.0% Non-South 238.6 38.1% 221.2 37.2% 7.8% Total Revenue 626.6 100% 594.2 100% 5.5% 9M FY20 9M 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
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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