V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q1 FY2017 Earnings Presentation
23 slides from V-guard Industries's earnings presentation, Sep 10, 2016
Slide 1: V-Guard Industries Q1 FY2017 Earnings Presentation
V-Guard Industries Q1 FY2017 Earnings Presentation
Slide 2: Disclaimer
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 s
Slide 3: Table of Contents
Table of Contents MD’s Message F i n a n c i al H i g h l i g ht s S e g m e n t - w i se / Ge o g r ap hi c a l B r e a k u p o f R e v e n ue s Outlook A n n e x ur e 3
Slide 4: Managing Director's Message
Managing Director’s Message Commenting on the performance for Q1 FY17, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “We have started the year on a positive note, recording our highest ever quarterly sales and profit in Q1, which is a seasonally strong quarter for u
Slide 5: Key Highlights – Q1 FY2017
Key Highlights – Q1 FY2017 Revenue growth of ~15% YoY at Rs. 573 crore Working capital cycle improve by 21 days YoY / 6 days QoQ • Strong summer season contributed to the healthy growth • Working capital cycle at 54 days • Broad-based growth across product categories led by • Inventory days improve
Slide 6: Business Updates
Business Updates New Product Launches • Launched, IOT-enabled water heater, first of its kind by any company in India • To launch gas stoves in Q2 FY17, another addition to the kitchen appliance category Backward Integration • Set up in-house PVC compounding unit at Chavadi, Coimbatore • Unit expect
Slide 7: Financial Highlights (Q1 FY17 vs Q1 FY16)
Financial Highlights (Q1 FY17 vs Q1 FY16) Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 573 177 67 499 43 139 45 25 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Key ratios (%) Q1 FY17 Q1 FY16 Gross Margin 30.9% 27.9% EBITDA Margin 11.7% 9.0% Net Margin 7
Slide 8: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective Balance Sheet Snapshot (Rs. crore) 30 June 2016 31 March 2016 30 June 2015 Net worth 514.6 476.2 403.6 Total debt 8.1 10.4 52.5 o Working capital 0.0 1.5 24.0 o Term loan 8.1 8.9 28.5 Acceptances 7.7 4.0 33.5 Fixed Assets 159.7 161.1 160.1 Key Ratios
Slide 9: Segment-wise Breakup of Revenues – Q1 FY17 vs Q1 FY16
Segment-wise Breakup of Revenues – Q1 FY17 vs Q1 FY16 Q1 FY2017 Q1 FY2016 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 145.5 25.4% 119.7 24.0% 21.6% UPS (Digital + Standalone) 74.9 13.1% 59.7 12.0% 25.5% Electronics Segment Total 220.4 38.5% 179.4 36% 22.
Slide 10: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 356 217 308 191 499 573 38% 38% South 62% 62% Non-South Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 10
Slide 11: Outlook
Outlook Distribution Advertising Working Capital Industry Drivers Network Expenditure Efficiencies • Strong demand from • To increase more • Continued investments • Target to reduce cash housing construction retailers below existing in advertising and conversion cycle activity and increased distribu
Slide 12: Annexure
Annexure
Slide 13: Company Overview
Company Overview • Electronics - Stabilizers, UPS and Digital UPS C o m p r e he n s iv e p o r t f o li o • Electricals - Pumps, House Wiring and Industrial Cables, Electric Water Heaters, Fans catering to the mass • Other products include Solar Water Heaters, Induction cooktops, Switchgears and Mi
Slide 14: Production Model
Production Model PVC Cable Factory LT Cable Factory Solar Water Heater Factory Stabilizer Manufacturing Units No. of Product Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~60% products PVC Wiring Cables 2 Coimbatore, Kashipur • Complete control ov
Slide 15: Financial Highlights (FY11-16)
Financial Highlights (FY11-16) Revenue EBITDA and EBITDA Margins PAT and PAT Margins CAGR – 22% CAGR – 20% CAGR – 23% 1,862 200 15.0% 1,746 120 5.6% 6.0% 7.0% 1,518 10.7% 5.3% 1,360 150 9.9% 12.0% 100 4.7% 4.6% 6.0% 8.3% 7.9% 9.9%80 4.1% 5.0% Rs. crore Rs. crore Rs. crore 965 9.0% 100 4.0% 699 8.4%
Slide 16: Operational Highlights (FY11-16)
Operational Highlights (FY11-16) Ad Spends and as a % of Sales Expanding Geographic Presence CAGR – 24% 100 15.0% 22% 21% 25% 30% 80 12.0% 33% 33% 60 9.0% 40 4.0% 4.2% 4.3% 3.9% 4.0% 6.0% 78% 79% 75% 70% 67% 67% 4.3% 20 3.0% 27 41 58 60 69 80 0 0.0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2011 F
Slide 17: Segment-wise Breakup of Revenues – FY16 vs FY15
Segment-wise Breakup of Revenues – FY16 vs FY15 FY2016 FY2015 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 369.1 19.8% 326.8 18.7% 13.0% UPS (Digital + Standalone) 193.6 10.4% 222.1 12.7% -12.8% Electronics Segment Total 562.7 30.2% 548.9 31% 2.5% Pumps 2
Slide 18: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 1,162 1,246 584 616 1,746 1,862 7.2% 33% 33% South 67% 67% Non-South FY15 FY16 FY15 FY16 FY15 FY16 18
Slide 19: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Bluebird, Capri, Consumer Durable stores, 400.00 800.00 1,200.00 Logicstat, 100% Outsourced Electrical and Hardware Premier, Stores Everest STAB
Slide 20: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Crompton Electrical and hardware Greaves, 900.00 1,100.00 2,000.00 90% Outsourced Stores, Pump and Pipe Kirloskar, CRI, fittings Stores Texmo MO
Slide 21: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Product Key Players Distribution Channel Strategy Model Organized Unorganized Total Numeric, 160.00 240.00 400.00 APC, Outsourced Consumer Durable stores Emerson UPS Consumer Durable stores, Microtek, Electrical and Hardware 6,5
Slide 22: About V-Guard Industries
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 mult
Slide 23: Thank You
THANK YOU