V-guard Industries Limited · NSE:VGUARD
V-guard Industries — Q1 FY2018 Earnings Presentation
24 slides from V-guard Industries's earnings presentation, 2017
Slide 1: V-Guard Industries Q1 FY2018 Earnings Presentation
V-Guard Industries Q1 FY2018 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 FY18, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “Performance during Q1 has been impacted by the transition from the VAT regime to the GST regime. We have seen substantial de-stocking by the trade c
Slide 5: Key Highlights – Q1 FY2018
Key Highlights – Q1 FY2018 Revenue growth impacted on account of de-stocking Working capital cycle at 59 days in Q1 FY18 • Revenue grew 1.5% to Rs. 569 crore in Q1 FY17 • Working capital cycle at 59 days in Q1 FY18 vs 47 days in Q1 • GST-related temporary de-stocking by trade led to drop in FY17 vol
Slide 6: Ind-AS Impact on V-Guard
Ind-AS Impact on V-Guard Key Ind-AS Adjustments • Turnover is net of cash discount & schemes (under IGAAP, the cash discounts were included in other expenses) • Excise duty to be grossed with turnover and shown as expense (under IGAAP, excise duty was netted with turnover) • ESOP valuation under fai
Slide 7: Financial Highlights (Q1 FY18 vs Q1 FY17)
Financial Highlights (Q1 FY18 vs Q1 FY17) Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS . Total Income (Rs. crore) Gross Profit EBITDA (Rs. crore) PAT (Rs. crore) 67 561 569 159 154 43 36 23 Q1 FY17 Q1 FY18 Q1 FY
Slide 8: Financial Highlights – Balance Sheet Perspective
Financial Highlights – Balance Sheet Perspective Balance Sheet Snapshot (Rs. crore) 30 June 2017 30 June 2016 Net worth 662.1 520.9 Gross debt 4.9 18.7 Current Investments 143.4 105.8 Cash and cash equivalents 6.5 15.7 Net Cash Position (Rs. crore) 145.2 102.9 Fixed Assets 192.4 159.7 Key Ratios 30
Slide 9: Segment-wise Breakup of Revenues – Q1 FY18 vs Q1 FY17
Segment-wise Breakup of Revenues – Q1 FY18 vs Q1 FY17 Note: V-Guard adopted Ind-AS framework starting Q1 FY18. Comparable prior period numbers have been restated in compliance with Ind-AS. Q1 FY2018 Q1 FY2017 Category Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Electronics 2
Slide 10: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 212 229 561 569 349 340 38% 40% South 62% 60% Non-South Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Note: V-Guard adopted Ind-AS framework starting Q1 FY17. Comparable prior period numbers have been restated in compliance with 10
Slide 11: Business Outlook
Business Outlook • The Company is confident of achieving a 15% CAGR growth over the next few years. • The Company envisages adding 15,000 retailers across the country over the next five years with higher addition in the non-South region. The Company is also looking to use online platforms like sales
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 Product No. of Units Location Outsourcing Objectives Own Manufacturing Facilities • Asset light model outsourcing ~60% products PVC Wiring Cables 2 Coimbatore, Kashipur LT Cables 1 Coimbator
Slide 15: Financial Highlights (FY12-17)
Financial Highlights (FY12-17) Revenue EBITDA and EBITDA Margins PAT and PAT Margins CAGR – 17% CAGR – 20% CAGR – 24% 2,151 250 15.0% 7.1% 8.0% 160 1,746 1,862 200 9.9% 12.0% 6.0% 9.9% 140 5.3% 7.0% 1,518 8.3% 8.4% 120 4.7% 4.6% 6.0% 1,360 Rs. crore Rs. crore Rs. crore 150 9.0% 100 4.1% 5.0% 965 10.
Slide 16: Operational Highlights (FY12-17)
Operational Highlights (FY12-17) Ad Spends and as a % of Sales Expanding Geographic Presence CAGR – 18% 100 15.0% 21% 25% 30% 80 12.0% 33% 33% 35% 60 9.0% 40 4.2% 4.3% 3.9% 4.0% 4.3% 6.0% 79% 75% 70% 67% 67% 65% 4.4% 20 3.0% 41 58 60 69 80 95 0 0.0% FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2012 F
Slide 17: Segment-wise Breakup of Revenues – FY17 vs FY16
Segment-wise Breakup of Revenues – FY17 vs FY16 FY2017 FY2016 Products Contribution (%) Contribution (%) YoY growth (%) (Rs. cr.) (Rs. cr.) Stabilizers 436.2 20.3% 369.1 19.8% 18.2% UPS (Digital + Standalone) 235.1 10.9% 193.6 10.4% 21.4% Pumps 268.5 12.5% 210.0 11.3% 27.9% Cables & Wires (PVC + LT)
Slide 18: Geographical Breakup of Revenues
Geographical Breakup of Revenues South Non-South Contribution (%) 1,246 1,407 744 1,862 2,151 616 33% 35% South 67% 65% Non-South FY16 FY17 FY16 FY17 FY16 FY17 18 Note: Numbers are in IGAAP.
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 Micro tech, Livguard, Bluebird, Consumer Durable stores, 700.00 550.00 1,250.00 Capri, 90% Outsourced Electrical and Hardware Logicstat, Stores
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, 5,000.00 5,000.00 10,000.00 90% Outsourced Stores, Pump and Pipe Kirloskar, CRI, fittings Stores Texmo
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 Microtek, Consumer Durable stores, Luminous, Electrical and Ha
Slide 22: Market Size across Product Segments
Market Size across Product Segments Market Size (Rs. Crore)* Production Distribution Channel Product Key Players Model Strategy Organized Unorganized Total Havells, 1,400.00 600.00 2,000.00^ Legrand, 100% Outsourced Electrical stores L&T, ABB SWITCHGEAR Butterfly (glass top), Consumer Durables / 1,0
Slide 23: 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 24: Thank You
THANK YOU