TVS Electronics Limited has informed the Exchange about Investor Presentation
3rd March 2023
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001
Scrip Code - 532513
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra - Kurla Complex Bandra (E) Mumbai - 400 051 Scrip Symbol - TVSELECT
Dear Sir/ Madam,
Sub: Investor Presentation - March, 2023
Pursuant to Regulation 30(2) and other respective regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing Investor Presentation of the Company.
the copy of
Kindly take the above information on record.
Thanking You,
For TVS Electronics Limited
K Santosh Company Secretary
TVS Electronics Limited
“Arihant E-Park”, No.117/1, 9th Floor, L.B. Road, Adyar, Chennai – 600 020. Tel.: +91-44-42005200 Registered Office: Greenways Towers, 2nd Floor, No.119, St. Mary’s Road, Abhiramapuram, Chennai – 600 018 Corporate Identity Number: L30007TN1995PLC032941 E-mail id: webmaster@tvs-e.in Website: www.tvs-e.in
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TVS Electronics Ltd.
Investor Presentation March 2023
2
Snapshot
PRODUCTS
SERVICES
OPERATIONS
FY22 FINANCIALS
Leading Transaction Automation Company in IT Industry
Servicing over 2,00,000 customers every month
500+ Employees
Revenue: INR 3,079 Mn
3+ Decades Experience
Pioneers in DOT Matrix Printer & Keyboards
19,000+ codes Pin Serviced and Logistics coverage > 90% (of total districts)
Diversified Business & Preferred Service Partner across Global Brands
1 Factory 1 Repair Centre
6 Branch Offices 24 Warehouses
EBITDA: INR 264 Mn
Net Profit: INR 151 Mn
Market Leaders in Point of Sale Devices
Infra Management Services (IT-IMS)
57 Drop Points 820+ Authorized Partners
ROCE: 22%
Products developed under ‘Make in India’ initiative
Unique edge of software bundling, product design solutions & customization
E-Auction
345 Walk in Centres
ROE: 16%
Repair Manufacturing Services (RMS)
3,000 Sq.Ft. Clean Room located in Tumkur
Net Debt to Equity: (0.08)x
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Company Overview
4
Company Overview
TVS Electronics (TVS-E) Limited was incorporated in 1987, under the leadership of Mr. Gopal Srinivasan and is a part of the esteemed TVS Group.
The company has emerged as one of the frontrunners in the IT peripherals, point-of- sale solutions, and comprehensive warranty management services.
The company caters to vast customer segments including, Retail, BFSI, Warehousing, Shipping & Logistics, Transport, Railways, small offices, and homes.
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It is headquarters out of Chennai, India and has 1 state-of-the-art manufacturing plant, located at Tumkur, Karnataka.
TVS-E offers a diversified portfolio of products and solutions with more than 20 products across 4 categories and also customer support services.
Revenue (INR Mn) & EBITDA Margins (%)
Segmental Revenue (INR Mn)
Geographical Distribution (FY22)
3,079
8.6%
2,683
6.2%
2,587
2,246
4.2%
3.8%
830
690
987
850
1,757
1,556
2,092
1,833
FY20 Revenue (INR in Mn)
FY21
FY22
9M-FY23
EBITDA Margin (%)
FY20 FY21 Products & Solutions
FY22
9M-FY23 Customer Support Service
10%
15%
42%
33%
South
North
West
East
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TVS Group
111 yrs. Presence
84 Businesses
129 Countries
8.5 Bn USD Group rev.
28 Mn Customers
40 K Employees
• TVS Group was founded by T. V. Sundram Iyengar in 1911 and started as bus transportation company.
• TVS Group is one of India’s largest diversified industrial conglomerates.
• The Group is one of the five largest family-owned business groups in India.
• Proven excellence across industry segments where it operates, and has a strong brand equity.
• TVS name is synonymous with Trust, Values and Service with customer centricity.
• It emerged as one of the first companies in Asia to be accredited with the Deming Award for quality.
• The group has reinforced its position globally and has emerged as an Employer of choice.
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Board of Directors
Mr. Gopal Srinivasan (Founder and Chairman) Mr. Gopal is a graduate in commerce from Loyola College in Chennai, and a MBA graduate from the University of Michigan, US. Being a passionate entrepreneur, he is actively involved in the promotion of entrepreneurship as an angel investor in association with Chennai Angels and TiE (The Indus Entrepreneurs), where he provides guidance to budding entrepreneurs on incubating businesses. He is also the Founder, Chairman and Managing Director of TVS Capital Funds Pvt. Ltd. and a third-generation member of the TVS Family. Over an entrepreneurial career spanning 30 years, he has incubated 8 companies operating in diverse sectors including technology, financial services & auto components. He is a Governing Council member of Reserve Bank Innovation Hub (RBIH), which is a centre for idea generation and development facilitating environment stewardship, encouraging collaboration, and in turn, promoting innovation in the financial sector. He has been recently appointed as the Honorary Consul for the Kingdom of Netherlands in Tamil Nadu. He was the Chairman of the Confederation of Indian Industry (CII) Tamil Nadu State Council in 2007-08, and the Chairman of CII National for Private Equity & Venture Capital in 2010- 11.
Mrs. Srilalitha Gopal (Managing Director) She is an engineering graduate in Computer Science from IISc, Bangalore, she, was appointed as director in TVS Electronics on 10th November 2011 and she was subsequently appointed as Managing Director of the Company for a period of 5 years with effect from 11th May 2018. She has been at the forefront of the various strategic initiatives directed towards increasing the profitability of the Company and drive the growth initiatives of TVS Electronics. She provides active directional support to TVS Electronics in CSR initiatives. She is also a director of TVS Investments Private Limited, holding Company of TVS Electronics. She is also the Managing Director of M/s Harita Techserv Private Limited (HTPL) since 2008. Her direction has enabled the growth of HTPL and spurred it to become one of the most preferred design engineering and talent services partners, ensuring success for every stakeholder of HTPL.
Mr. Lakshminarayan M (Independent Director) He is a postgraduate in Management studies (MMS) from Chennai, and an attendant of Harvard Business School’s Advanced Management Programme. He is a fellow member of the Institute of Cost and Management Accountants, and has a rich experience of more than three decades in the field of Infotainment System and Automotive Sector. Currently, he is the Chairman of ZF Commercial Vehicle Control Systems India Ltd., a Member of the advisory board of VOITH Industrial Services, a Member of the Board of Directors in Sansera Engineering Limited, Suprajit Engineering Ltd., ASM Technologies Ltd. He was the Managing Director of Harman International India Pvt. Ltd., a 100% subsidiary of Harman International USA from 2009 till 2017. He also had a stint at the Karnataka State and Southern Region of Confederation of Indian Industry (CII) as Chairman, and the Bangalore Chamber of Industries and Commerce as the President. He was also appointed by the government as the Chairman of the Research Advisory Board of Central Manufacturing Technology Institute, Bangalore.
Mr. M F Farooqui (Independent Director) He is a retired IAS officer and a master's degree holder in Physics and Business Administration. He is also the Chairman of The Ramco Cements Ltd. In addition, he is a member of Dispute Resolution Committee of Ministry of New and Renewable Energy Government of India and Chairman TN Human Resources Reform Committee. He retired as the Secretary of Department of Telecommunications (DoT) and Chairman of Telecom Commission in June 2014. He was also the Secretary in the Department of Heavy Industry. While serving in the Government of Tamil Nadu, he played a crucial role in increasing the footprint in Tamil Nadu of the industry especially Electronic hardware and Automobile sectors as the Principal Secretary of the Department of Industry. He also served as Special Secretary in the Ministry of Environment and Forests, and helped in shaping critical environmental policies in the Ministry. During his career, also worked as the Joint Secretary in the Department of Economic Affairs, under the Ministry of Finance and as the Consul General of India in Jeddah, Saudi Arabia. He also had a stint as the Chief Executive and Member Secretary in the Chennai Metropolitan Development Authority (CMDA).
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Board of Directors
Mr. R S Raghavan (Director) He is a Chartered Accountant, Cost Accountant and Company Secretary, he is the Non Executive Non Independent Director of TVS Electronics. Mr. Raghavan’s experience spans corporate finance, business performance, investment, governance, mergers & acquisitions, strategy, fund raising, Investor relations, talent/people management, legal etc. A professional with nearly 40 years experience in the manufacturing and financial services Industry like VCPE, NBFC, Wealth management, manufacturing etc., he brings deep financial experience and significant understanding of business, risk management. He is currently the Non Executive Non Independent Director of TVS Capital Funds Pvt. Ltd., a growth capital Private Equity firm. He is currently in the Boards of some of the group companies.
Mr. K Balakrishnan (Independent Director) Mr. K Balakrishnan is a graduate in Electronics and Communication from the National Institute of Technology at Surathkal, lndia. He is currently the Co-Founder and CEO of a SaaS platform start-up Autonom8 and the Chairman of the Board of Servion Global Solutions. He is also on the advisory Board of IIT- Palakkad, and Cisco’s start-up accelerator programme LaunchPad. He Co-founded Servion, and served as its Managing Director and Chief Executive Officer prior to taking over his current role. During the first decade of his career, he wore many managerial hats in Senior Product Management and Sales positions. Earlier, he was the Founder and CEO of Acqueon Technologies, which is a products company focused on Customer Experience Management domain, and was on the Board of Custommerce Service Excellence Foundation, a non-profit organization focused on improving customer service. He brings to the table a rich experience of more than 25 years in the Customer Interaction Management domain, with specialised expertise in Telecom and IT. With his rich knowledge and experience as the co-founder, he is an industry thought leader and enjoys successful associations with numerous large enterprises in the conceptualisation and design of their CEM programmes.
Mr. V Sumantran (Independent Director) He is an alumnus of the Indian Institute of Technology, Madras, a MS from Princeton University, and Ph.D. in Aerospace Engineering from Virginia Tech. He is also a Master’s degree holder in Management of Technology, and a Fellow of SAE International and the Indian National Academy of Engineers. He is a business leader, technocrat and academic, having worked in the USA, Europe, and Asia through a career spanning over 37 years. He is currently the Chairman and Managing Director of Celeris Technologies, Chairman of Interglobe Aviation Limited, and an advisor to several Fortune-100 organisations in autos, industrial equipment, defence, and aerospace sector. He was the Executive Vice-Chairman of Hinduja Automotive in the UK, and the Vice Chairman of Ashok Leyland as well. He also served as Chief Executive Officer in charge of the car business at Tata Motors in its early days. Previously, he had a 16-year-long career with General Motors with R&D operations in Detroit and subsequently served on deputation in Europe as Director-R&D at GM-Europe. He has co-authored a book, namely ‘Faster, Smarter, Greener: The Future of the Car and Urban Mobility’ which was published by the MIT Press in 2017.
Ms. Subhasri Sriram (Independent Director) She is currently the Joint Managing Director of Shriram Capital (P) Ltd., the holding company of the financial services and insurance businesses of Shriram Group. She has more than 3 decades of professional experience including 24 years in Shriram Group’s Financial Services business and during this period for more than 15 years held the position of Executive Director & CFO of one of their listed NBFC. Has handled many critical assignments related to implementing new organization structures, improving business processes, raising several rounds of equity from marquee investors across globe and raising external commercial borrowings. She has won the “Best Performing CFO in the NBFC Sector” for 2013 at the 8th edition of the awards instituted by a leading business television channel CNBC TV 18 and in 2016 she was also chosen as one of the most influential CFOs in India by CIMA. In the year 2022, won the Woman Leader of the Organization award from UBS Forums. She is a Postgraduate in Commerce, Fellow Member of the Institute of Cost Accountants of India (ICMAI) and the Institute of Company Secretaries of India (ICSI). She also holds Post Graduate Diploma in Systems Management from NIIT and Post Graduate Diploma in Cyber Laws from NALSAR, Hyderabad and is in the board of several listed and unlisted companies across industries.
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Key Milestones
Commissioned Tumkur Factory
India’s 1st language printer launched
India’s 1st POS - TVS Sprint launched
TVS Proton- World’s quickest bill printer launched
1 Mn Key Board sold & 0.2 Mn UPS sold
Dell Service Partnership Pan India Support Service for Laptops & PCs
Exclusive Service Centers of HTC
Support for Banktech, NCR Corporation & Diebold
Break fix services for Lenovo
Support for Flipkart & Amazon
Support for HP
Support for ATOS -Repairs
Installation & Demo, Break-fix, Warranty Support for Daikin, Voltas, EFL.
Xiaomi Distribution business terminated
1987 2002
2003 2006
2007 2010
2011 2015
2016 2020
2021 Onwards
1 Mn Printers sold
Made in India - Set Top Box
Mfg. of International language printer
APAC No. 2 in Dot Matrix Printers (DMP)
Ranked No. 4 Globally in DMP
Began Service segment “Servicetec”
Repairs & Refurbishment of Sony Consumer Products
Support for Samsung and LG Mobile phones
Flagship Service center for Samsung
Support for Xiaomi – Distribution business
ISO 9001: 2015 Accreditation
Tremendous Improvement in Market Share of Products such as DMP, Thermal Printers, Barcode Scanners
Investments in IT: GTID Solutions and Swiftomatics Ltd. in 2022
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Manufacturing Prowess
Tumkur, Karnataka Started operations in 1988 and it is a part of the smart city projects by the Govt. of India. It is strategically
located just 1 km away from Bangalore-Mumbai National Highway aiding logistics. The location has potential to become a satellite city to decongest the state capital Bengaluru.
• Established Capacity: 450K to 500K units p.a.
• Area: 65-acre campus & work area of 70,000 Sq. ft.
• Manufacturing and office facility: 2 Manufacturing blocks with 6 lines of Manufacturing & 1 office block
• Products Manufactured: Mechanical Key Boards, Dot Matrix Printers, POS Products and Consumables
• Warehouse, Repair & Refurbishing facility: Mother Warehouse; Repair- L3/L4 PCB & Panels
• Call Centre: Houses 200 seats multi-language call centre
• E-Auction: For OEMs and Manufacturers
• Accreditation: ISO 9001:2015 & ISO 14001:2015
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Pan India Footprint
PAN India Network
1
24
REPAIR CENTRE
WAREHOUSES
6
340+
BRANCH OFFICE
WALK-IN CENTRES
57
90%
DROP POINTS
DISTRICTS COVERED
5,000 +
19,000+
FEET ON STREET
PIN CODE SERVED
520+
SERVICE PARTNERS
300+
SALES PARTNERS
200 SEAT MULTI- LANGUAGE CALL CENTRE
KOLKATA
CHENNAI
Head Office - Chennai, Tamil Nadu
1 Factory, Repair Centre – Tumkur, Karnataka
6 Branch Offices
57 Drop Points
DELHI
MUMBAI
HYDERABAD
TUMKUR
BANGALORE
KOCHI
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An Established Eco-System
1 Factory
CUSTOMERS
DISTRIBUTORS
PRODUCTS & SERVICES
D2C
Small offices & Homes
Own Website www.tvs-e.in & store.tvs-e.in
E-Commerce Platforms
Justdial, Amazon
Quality Management Services
Total Employee Involvement
Deep Analysis
Customer Centricity
Process Audit
PDCA Cycle
Channel Financing Options
Logistic Tie Up
6 Branch Offices
24 Warehouses 306 Sales partners
520 Service Partners
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Marquee Clientele
Products & Solutions
Top 10 Customer Concentration*
RETAIL
BFSI
96%
Hospitality
Government Entities
Railways
Customer Support Services
41%
37%
28%
FY19
FY20
FY21
FY22
*Note: Online Distribution Business segment with high volume low margin was terminated during FY19, resulted in customer diversification.
IT & Peripherals
Audio Lifestyle
Payment Devices - EDC
Consumer Electronics
Solar Energy
Smart Phones
EV Charging
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Competitive Edge
In-house developed AI-ML Platform for service delivery
years of
experience
30+ in design, manufacturing, repair and services with being market leaders for many of product offerings
Service network capability across 95% of pin codes
Distribution network with last mile connectivity across 90% of Indian territory
Strong B2B presence across various sectors, partnership with global brands
Proven capability that seamlessly links the entire value-chain of the entire product life- cycle management
One Stop Solution for retail customers with Made in India Products
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Business Overview
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Business Segments
Product & Solutions Group (PSG) 68%
Track & Trace Products
Point of Transaction Products
Business Mix Percentage as on 9M-FY23
Customer Support Services (CSS) 32%
IT Infrastructure Managed Services
E-Auction
Warranty Management Services
Repair Manufacturing Services
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Product Solutions Range
Product and Solutions Group focuses on Transaction Automation Products and Solutions focusing for Retail, Logistics and PSUs with proven robustness. Under this category, the product range includes designed & manufactured, Semi Knocked Down assembly and ODM Products.
Touch POS Solutions
CCTV Camera
Dot Matrix Printers
Barcode Scanners
Label Printers
Electronic Cash Register
Cash drawer
Keyboa rds
Mobile Label & Receipt Printer
Passbook Printer
Thermal Transfer Ribbon Blue
Cash Counter
Thermal Paper Roll
Thermal Receipt Printers
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Products and Solutions
KEYBOARD
DOT MATRIX PRINTERS (DMP)
THERMAL RECEIPT PRINTERS (TRP)
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Features: Robust and user-friendly, could be customized to 9 different vernacular language options, Fitted with mechanical switches for long life, Laser Etched Characters on Keycaps with an everlasting presence, Highly reliable, with more than 200,000 Hrs MTBF, 50 Mn strokes per key, Choice of Interfaces USB & click on touch PS2, Sculpted keycap with feeling.
• Market Share: Mechanical: >95%
•
Features: Minimal Cost, Value for Money, Maximum Productivity, Superior Reliability, Sustained user friendly.
Dependability,
compact,
• End Users: For printing letter-quality office documents such as invoices, bills, receipts and reports across Banks, Insurance company, Indian railways.
• Market Share: 47%
• TRP accelerates the billing process, by reducing transaction time and cutting back on long queues.
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Features: Robust Build Quality, User friendly, portable, superior printing speed, easy to maintain, lower power consumption.
• End Users: Toll booths and at retail outlets, cafes, grocery stores, ticketing outlets, kiosks, etc.
• Market Share: 21%
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Products and Solutions
TRACK & TRACE PRODUCTS
TOUCH SCREEN POS MACHINE & CASH DRAWERS
PASSBOOK PRINTERS
• The scanners offers
the freedom and convenience to capture the codes effortlessly in a steadfast manner without any loss of information. The Design is developed bearing in mind the volume of operations and man hours involved in the retail business.
• Applications: Hands-Free Barcode reading for Line,
Retail Laboratories, Jewelry Brand Stores.
Application,
Production
TOUCH SCREEN POS MACHINE
Features: Compact, durable, and rugged, Robust, stylish, and ideal for intensive billing, Easy to install and easily removable display.
End Users: Retail Outlets
CASH DRAWERS
•
•
Features: 5 Note and 8 Coin trays, Integrated cable with RJ12 connector, Three-position lock and Open drawer sensor.
End Users: Banks, Retail Outlets, Hospitality
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Features: High speed and high performance with 94 columns, most productive and compact size; Reliable, fast and powerful with auto alignment function; Bi-directional printing method with logical seeking.
• End Users: Banks
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Customer Support Services (CSS)
The Company provides customer support service catering to both OEMs and end customer services. These services include break fix, repair engineering, installation, demo, protection plans, IT infra management, remote-tech support, call center services, and e-waste management, among others. The average age of Service Contracts is 3 years across various industries.
Centralized Master Data Management
Calls Management System
Customer Enquiries and Automated Call Registration
Customer Centric Approach
Learning & Development
Parts AMC Services Manage ment System(W MS)
Remote Infrastructure Services
Partner Lifecycle Management
Data Science & Analytics
CAPABILITY ACROSS CATEGORIES
IT Products • Laptops • Printers • Servers • Barcode Scanners • Keyboards
Consumer Electronics • Washing Machines • Television • Air Conditioner • Refrigerator
Mobility Products • Smart Phones • Tablets
Banking & Retail Automation • Card Machine • ATMs
Remote Infrastructure Management of IT Products
Drivers of CSS segment at TVS-E:
• Expertise of working with a plethora of products lends the ability to handle customer
support services and end-of-life services related to such products.
• Holistic service provider of lifecycle management of products, such as the integration of parts management business, repair manufacturing services and B2C on demand service.
• The opportunities arising from the EV market, focus on battery swapping services and
services related to charging infrastructure of EV’s.
• With increasing focus of
India on renewable power, solar power space is another
opportunity.
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Warranty Management, IT Infra Managed, Repair Manufacturing, E-Auction
Warranty Management Services (WMS) In -Warranty and Out-of-Warranty From accidental damage to malfunction, handles products across Consumer Electronics, IT and Telecom categories.
Installation & Demo From unpacking the equipment to its careful demonstration, along with tips and advice on upkeep and care.
installation and working
IT Infrastructure Managed Services (IT-IMS)
The Company provides maintenance and upkeep services for MSMEs and small companies for the contractual period for products such as laptops, network devices, etc. It ensures genuine spare by skilled and certified experts providing highest quality and safety standards with > 99% up timing.
Repair Manufacturing Services (RMS)
Maintaining an exhaustive inventory to readily source critical spares and repair & replacement of parts like capacitor, diode, inductor, defective Integrated Circuits are carried out. Ensures that high cost of operations are controlled to render the pricing competitive and ensure the highest quality.
E-Auction
Procurement and disposal of industrial assets has always been an area of concern for businesses, small and big. At TVS Electronics, due care is taken of this with forward and reverse auction services respectively through our online business unit, www.auctionindia.com.
Data related to Electronic Devices Repaired
Mobile Phones
2.04 Mn
EDC Terminal & Adapters
250K
IT Products & IT Peripherals
57K
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Industry & Strategic Overview
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Electronics Industry Market Share & Size
Segmental Domestic Production (INR Bn)
Global Market Size of Key Product Segments (USD Bn)
20,500
900 1,100
2,000
800 1,400 1,400 1,500 1,900
9,500
FY26P Industrial Electronics Electronic Components Strategic Electronics LED Lighting
30% CAGR
163 223 297
5,545
37
668 705 779 2,227
445
FY21
Mobile Phones Consumer Electronics Auto Electronics IT Hardware (Laptops, Tablets) Printed Circuit Board Assembly
Source: Balaji Solutions, DRHP
540
210
143
66
25
4
Mobile Phones
IT Hardware (PC, Laptops, tablets)
Consumer Electronics (TV and Audio)
Wearbles and hearables
LED Lighting
Electric Vehicles
•
•
•
The Electronics Industry is one of the largest and fastest growing industries in the world. Electronic products continue to impact and shape the lifestyle prominently in today’s digital era.
The Global Electronics Industry is estimated at USD 2.9 Tn in 2020 which is equal to the GDP of India. United States and European Union together represent more than 40% of the global market size. The global market for laptops, tablets and desktop computers is expected to stabilize around USD 220 Bn by 2025.
The Indian Electronics Industry has grown at a CAGR of 13% from INR 4,723 Bn in FY16 to INR 8,720.1 Bn in FY21. Indian electronics industry is estimated to grow at a CAGR of 25% from INR 8,720.1 Bn in FY21 to INR 26,500 Bn in FY25P.
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Computer Hardware And Peripherals Industry
Consumer Electronics & Computer Hardware Consumption in India (INR Bn)
Computer Hardware & Peripherals Production, Import and Export in India (INR Bn)
798.4
Policy Initiatives and Recent Developments
836.7
27.3% CAGR
565.4
378
393.6
310
552
•
387.7
403.2
319.1
17.2
19.6
8.2
18.6
9.8
23.6
8.9
51.5
10.2
13.2
2017-18
2018-19
2019-20
2020-21
2021-22
2017-18
2018-19
2019-20
2020-21
2021-22
Production
Import
Export
Under the (PLI) scheme for IT Hardware Products, and Information the Ministry of Electronics Technology has approved 14 qualified applicants. To manufacture the government will offer incentives of USD 983.76 Mn over the next 4 years. In this duration, production worth USD 21.62 Bn and exports of USD 8.06 Bn are expected.
products
these
India,
in
Consumer Electronics Revenue Share (%)
13.0%
87.0%
15.7%
84.3%
18.3%
81.7%
22.2%
77.8%
2019
2021
2023P
2025P
Offline
Online
Source: Balaji Solutions, DRHP
• Ministry of Electronics & Information Technology (MeitY) has announced “Scheme for Promotion of Semiconductor Eco-System” in India with a massive outlay of INR 76,000 Cr (USD 9.48 Bn) in 2022.
•
As per Union Budget 2023-24, the Ministry of Electronics and Information Technology (MeitY) has been allocated INR 16,549 Cr .
24
Strategic Overview
Hardware coupled with solution & analytics • Tie ups with 3 software companies to provide bundled software solutions to retail sector.
Leveraging rich B2B experience to be a D2C player • Launched an on-demand service platform, namely ‘Assure’, catering to consumer durable electronic products, and service provided ranges from installation to upgradation and break/ fix services.
Focus on Digitalisation • Moved onto a subscription model for the service
vertical with SAP.
• Invested in artificial learning during FY22.
intelligence & machine
Expanding offerings to parts and logistics business • Has set up a strong go-to market strategy for the parts
business.
• Act as an aggregator by sourcing parts from global brands
and ensuring supply in the country. • Direct sales of spares to customers.
STRATEGIC PRIORITIES
Offering depth & expertise in Product Portfolio • Diversifying non-printing product portfolio by launching new products and enhancing the products portfolio by improving performance and features.
Expanding presence and global aspirations • Launched an online e-commerce portal on company’s
website and partnered with service providers.
• Launched a service delivery platform (SDP) system, which is AI/ML-enabled, and is integrated with field mobility, spare parts prediction and ordering system.
Part of the ‘Make in India initiative’ • TVS-E has undertaken backward integration of some of processes and replaced imports from
neighbouring countries with in-house production of certain products.
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Financial Overview
26
Historical Income Statement
PARTICULARS (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
Exceptional Items
PBT
Tax
Profit After Tax
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR per share)
FY20
2,587
2,478
109
4.21%
54
104
24
(35)
0
(4)
4
0.15%
(1)
3
0.21
FY21
2,246
2,160
86
3.83%
21
78
19
-
10
2
8
0.36%
4
12
0.41
FY22
3,079
2,815
264
8.57%
12
63
10
5
208
57
151
4.90%
(5)
146
8.10
9M-FY23
2,683
2,517
166
6.19%
17
64
12
0
107
27
80
2.98%
(1)
79
4.30
27
Balance Sheet
PARTICULARS (INR Mn)
FY21
FY22
H1-FY23
PARTICULARS (INR Mn)
FY21
FY22 H1-FY23
Equity
Equity Share Capital
Other Equity
Non Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
Provisions
Other Non Current Liabilities
Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(ii) Trade Payables
(iii) Other Financial Liabilities
Provisions
Current Tax Liabilities
Other Current Liabilities GRAND TOTAL - EQUITIES & LIABILITES
818
186
632
50
0
36
13
1
926
186
740
45
0
27
16
2
991
186
805
90
41
34
13
2
830
1,053
1,144
-
31
603
72
65
0
59
38
24
767
66
69
13
76
16
28
785
159
76
0
80
1,698
2,024
2,225
Non Current Assets Property, Plant and Equipment Right to use Assets Capital Work In Progress Intangible Assets Intangible Assets Under Development Financial Assets (i) Investments (ii) Other financial assets Deferred Tax Assets (Net) Non Current Tax Assets (Net) Other Non-Current Assets Current Assets Inventories Financial Assets (i) Investments (ii) Trade Receivables (iii) Cash and Cash Equivalents (iv) Bank balances other than above (v) Other Financial Assets Other Current Assets GRAND TOTAL – ASSETS
628 78 63 - 153 27
11 14 3 23 256 1,070 370
159 277 81 5 89 89 1,698
558 84 51 2 127 12
10 1 10 3 258 1,466 469
336 351 104 6 106 94 2,024
641 72 66 57 127 12
11 7 6 14 269 1,584 593
187 512 69 4 107 112 2,225
28 28
Financial Highlights
Operational Revenue (INR Mn)
EBITDA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
2,587
2,246
3,079
2,683
FY20
FY21
FY22
9M-FY23
ROE AND ROCE (%)
ROE (%)
ROCE (%)
7%
1%
FY20
3%
1%
FY21
22%
16%
FY22
264
8.57%
166
6.19%
151
80
2.98%
4.90%
0.15%
4
0.36%
8
FY22
9M-FY23
FY20
FY21
FY22
9M-FY23
86
3.83%
FY21
Net Debt to Equity (x)
Net Worth (INR Mn)
806
818
926
991
109
4.21%
FY20
0.01
FY20
FY21
FY22
H1-FY23 -0.02
-0.08
-0.11
FY20
FY21
FY22
H1-FY23
29
Capital Market Data
1 Year Stock Market Performance (As on 28th February, 2023)
120%
100%
80%
60%
40%
20%
0%
-20%
Mar22
Apr22
May22
Jun22
Jul22
Aug22
Sep22
Oct22
Nov22
Dec22
Jan23
Feb23
TVS Electronics
BSE Sensex
Price Data (As on 28th February, 2023)
Face Value
Market Price
52 Week H/L
Market Cap (Mn)
Equity Shares Outstanding (Mn)
1 Year Avg Trading Volume (‘000)
INR
10.0
321.85
448.0/166.5
6,002.6
18.65
292.46
Shareholding Pattern (As on 31st December, 2022)
Public, 39.62%
Promoters, 59.91%
FPI/FII/Banks, 0.47%
30
Disclaimer
TVS Electronics Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of TVS Electronics Limited (Company), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward- looking statements to reflect future events or developments.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further details, please feel free to contact our Investor Relations Representatives:
Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: tvs-e@valoremadvisors.com
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Thank You