VGUARDNSE30 May 2023

V-Guard Industries Limited has informed the Exchange about Investor Presentation

V-Guard Industries Limited

May 30, 2023

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

Ref:- Scrip Code: 532953

Ref:- Symbol: VGUARD

Dear Sir / Madam,

Sub: Submission to Exchange Investor presentation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015

Pursuant to Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, we hereby submit the Investor Presentation on Audited Financial Results of the Company for the quarter and year ended March 31, 2023.

Kindly take the above information on your records.

This is for your information and record.

Thanking You,

Yours Sincerely,

For V-Guard Industries Limited

Vikas Kumar Tak Company Secretary & Compliance Officer Membership No. FCS 6618 Encl: as above

V-GUARD INDUSTRIES LTD

Regd. Office: 42/962, Vennala High School Road, Vennala, Kochi – 682 028. CIN: L31200KL1996PLC010010

P E W

+91 484 300 5000, 200 5000 mail@vguard.in www.vguard.in

V-Guard Industries Q4 FY23 Earnings Presentation

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

suggested by

the

forward-looking statements.

Important

developments

that could affect

the Company’s operations

include

changes in the industry structure, significant changes in political and

economic environment in India and overseas, tax laws,

import duties,

litigation and labour relations.

V-Guard Industries Limited (V-Guard) will not be in any way

responsible for any action taken based on such statements and

undertakes no obligation to publicly update these forward-looking

statements to reflect subsequent events or circumstances.

Table of Contents

MD’s Message

Key Highlights

Financial Highlights

05-07

08-10

Segment-wise/Geographical Breakup of Revenues

11-13

Annexure

14-16

Managing Director’s Message

Commenting on the performance for Q4 FY23, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “We reported consolidated Net revenues of Rs. 4,126 crore in FY23, higher by 17.9% on a year-on-year basis. Excluding the revenues from Sunflame, like-for-like revenue growth is 16.3% yoy and this is ahead of the CAGR of 11.9% in revenues over the period FY19-23.

Within our segments, the Electronics and Consumer Durables registered strong topline growth. We are making sustained progress towards achieving scale in key Durable categories.

During the year, the South market grew by 9% y-o-y while the Non-South markets grew by 26.4% YoY. With continued strong growth from Non-South markets, the contribution to revenues exceeds 45% for the quarter as well as for financial year 22-23. We continue to make progress in growing the business in the Non-South markets and the enriched contribution from these markets has strengthened the business with a diversified revenue base.

In the fourth quarter, we have witnessed an improvement in Gross Margin as the benefit of stable commodity prices begins to flow through. A&P spends are higher as they return towards normative levels. One-time costs of about Rs 10 Cr relating to the Sunflame acquisition have been recognized in Q4 results. We expect gross margins to further improve in Q1 FY 24.

It is also pertinent to note that in FY 22 we had prior-year tax credit of Rs 8 Cr as we switched over to the new In FY 23, the tax benefit arising from the Simon merger has been shown under Other Income Tax regime. Comprehensive Income (Rs 20 cr).

The Board of Directors have recommended a final dividend of Rs. 1.3 per share of a face value of Re. 1 each for the financial year 2022-23.

During Q4 FY 23, we completed the acquisition of Sunflame and the merger of Simon. Work relating to business integration is ongoing. These M&As are a good strategic fit to V-Guard with multiple levers for synergy benefits."

Based on Consolidated Financials

Key Highlights – Q4 FY23

Revenue increased by 7.6% YoY in Q4 FY23

• Q4 FY23 revenue increased by 7.6% YoY to Rs. 1,140.1 crore • South markets witnessed a YoY decline of 3.3% whereas Non-South markets witnessed YoY growth of 9.7% in Q4 FY23 • Non-South markets contributed to 45.7% of total revenues in Q4 FY23 as compared to 42.6% in Q4 FY22

• FY23 revenue increased by 17.9% YoY to Rs. 4,126.0 crore • South markets witnessed a YoY growth of 9.0% whereas Non-South markets witnessed YoY growth of 26.4% in FY23 • Non-South markets contributed to 45.3% of total revenues in FY23 as compared to 41.6% in FY22

EBITDA performance and PAT

• Gross margin expanded by 210 bps YoY, at 31.3% in Q4 FY23 with the moderation in input costs and normalising of high-cost

inventories in Consumer Durables segment

• Ad/promotional spends, at 1.6% of revenues in Q4 FY23 as compared to 1.2% in Q4 FY22, steadily reverting to pre-COVID levels • EBITDA at Rs. 98.7 crore in Q4 FY23 declined 11.9% YoY, as compared to Rs. 112.0 crore in Q4 FY22 • EBITDA margins contracted by 190 bps YoY, at 8.7% as compared to 10.6% in Q4 FY22 • Q4 FY23 PAT of Rs. 52.7 crore, decreased 41.1% YoY. The PAT in base period was higher due to tax reversal on account of migration

to the new tax regime.

Robust cash flow generation and balance sheet

• CFO generation for FY23 at Rs. 423.8 crore, improved significantly as compared to negative Rs. 37.7 crore for FY22 on account of

reduction in inventory to normative levels as guided earlier

• ROE and ROCE at 11.8% and 12.0%, respectively over the last 12 months • Net debt has increased to Rs. 380.0 crore as on 31st March 2023, as against net cash of Rs. 49.0 crore as on 31st March 2022. This is

due to funding requirements for the Sunflame acquisition.

Based on Consolidated Financials

P&L Snapshot (including Sunflame)

P&L Statement

Particulars

Net Revenue

COGS

Gross Margin

Q4 FY23

Q4 FY22

Change

Q3 FY23

FY23

FY22

Change

(Rs. Cr)

1,140.14

1,059.17

783.11

749.94

31.3%

29.2%

7.6%

4.4%

2.1%

980.84

4,126.04

3,500.19

690.70

2,884.39

2,413.89

29.6%

30.1%

31.0%

EBITDA (excluding other income)

98.66

111.99

-11.9%

65.88

319.91

340.23

as a % to Net Revenue (NR)

Other Income (including finance income)

8.7%

2.63

10.6%

2.68

-1.9%

-1.8%

6.7%

6.03

7.8%

9.7%

16.44

10.76

52.7%

EBITDA including other income

101.29

114.67

-11.7%

71.91

336.35

350.99

17.9%

19.5%

-0.9%

-6.0%

-2.0%

-4.2%

-1.8%

8.9%

10.8%

-1.9%

7.3%

8.2%

10.0%

72.07

99.99

-27.9%

52.84

255.74

293.96

-13.0%

6.3%

9.4%

-3.1%

5.4%

6.2%

8.4%

-2.2%

52.73

89.58

-41.1%

39.29

189.05

228.44

-17.2%

4.6%

8.5%

-3.9%

4.0%

4.6%

6.5%

-1.9%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

P&L Snapshot (excluding Sunflame)

P&L Statement

Particulars

Net Revenue

COGS

Gross Margin

Q4 FY23

Q4 FY22

Change

Q3 FY23

FY23

FY22

Change

(Rs. Cr)

1,083.24

1,059.17

748.04

749.94

30.9%

29.2%

2.3%

-0.3%

1.7%

980.84

4,069.14

3,500.19

690.70

2,849.32

2,413.89

29.6%

30.0%

31.0%

EBITDA (excluding other income)

89.21

111.99

-20.3%

65.88

310.46

340.23

as a % to Net Revenue (NR)

Other Income (including finance income)

8.2%

2.17

10.6%

-2.4%

2.68

-19.0%

6.7%

6.03

7.6%

9.7%

15.98

10.76

48.5%

EBITDA including other income

91.38

114.67

-20.3%

71.91

326.44

350.99

16.3%

18.0%

-1.1%

-8.7%

-2.1%

-7.0%

-2.0%

8.4%

10.8%

-2.4%

7.3%

8.0%

10.0%

64.06

99.99

-35.9%

52.84

247.73

293.96

-15.7%

5.9%

9.4%

-3.5%

5.4%

6.1%

8.4%

-2.3%

46.69

89.58

-47.9%

39.29

183.01

228.44

-19.9%

4.3%

8.5%

-4.1%

4.0%

4.5%

6.5%

-2.0%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

Financial Highlights (Q4 FY23 vs. Q4 FY22)

Total Income (Rs. crore)

Gross Profit

1,059

1,140

309

357

Key ratios (%)

Gross Margin

7.6%

15.5%

EBITDA Margin (excl. other income)

Q4 FY22

Q4 FY23

Q4 FY22

Q4 FY23

Net Margin

EBITDA (Rs. crore)

PAT (Rs. crore)

112

Ad & Promotion Exp./ Total Revenues

Employee Cost/ Total Operating Income

Other Expenditure/ Total Operating Income

Tax rate

Diluted EPS (Rs.)

Q4 FY23

Q4 FY22

31.3%

8.7%

4.6%

1.6%

7.0%

15.6%

26.8%

1.21

29.2%

10.6%

8.5%

1.2%

6.2%

12.5%

10.4%

2.07

-11.9%

-41.1%

Q4 FY22

Q4 FY23

Q4 FY22

Q4 FY23

Based on Consolidated Financials

Financial Highlights (FY23 vs. FY22)

Total Income (Rs. crore)

4,126

3,500

Gross Profit

1,242

1,086

17.9%

14.3%

FY22

FY23

FY22

FY23

EBITDA (Rs. crore) 340

320

PAT (Rs. crore) 228

Key ratios (%)

Gross Margin

EBITDA Margin (excl other income)

Net Margin

Ad & Promotion Exp./ Total Revenues

Employee Cost/ Total Operating Income

189

Other Expenditure/ Total Operating Income

Tax rate

Diluted EPS (Rs.)

FY23

30.1%

7.8%

4.6%

2.1%

7.3%

15.0%

26.1%

4.35

FY22

31.0%

9.7%

6.5%

1.6%

7.7%

13.6%

22.3%

5.25

-6.0%

-17.2%

FY22

FY23

FY22

FY23

Based on Consolidated Financials

Financial Highlights – Balance Sheet Perspective

Balance Sheet Snapshot (Rs. Cr)

31 March 2023

31 December 2022

31 March 2022

Net Worth

Gross Debt

Current Investments

Cash & Cash Equivalents (inc. bank balance)

Net Cash Position (Rs. crore)

Fixed Assets

1,607.6

419.6

0.1

39.5

-380.0

912.4

1,503.3

1,407.0

116.7

325.5

130.8

339.6

416.2

11.8

60.8

49.0

398.3

Balance Sheet Snapshot (Rs. Cr)

31 March 2023

31 December 2022

31 March 2022

Debtor (days)*

Inventory (days)*

Creditor (days)*

Working Capital Turnover (days)

RoE* (%)

RoCE* (%)

11.8%

12.0%

15.0%

17.0%

130

111

16.2%

20.5%

Note: *Calculations are on a trailing twelve month basis

Based on Consolidated Financials

Segment-wise Breakup – Q4 FY23 vs. Q4 FY22

Segment Revenue

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Segment Result

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Q4 FY23

(Rs. Cr)

271.7

525.3

286.2

56.9

Contribution (%)

23.8%

46.1%

25.1%

5.0%

Q4 FY22

(Rs. Cr)

247.4

515.7

296.1

Contribution (%)

23.4%

48.7%

28.0%

1,140.1

100.0%

1,059.2

100.0%

Q4 FY23

(Rs. Cr)

32.5

47.8

-1.1

8.0

87.1

Margin (%)

12.0%

9.1%

-0.4%

14.1%

7.6%

Q4 FY22

(Rs. Cr)

43.1

55.5

5.0

103.6

Margin (%)

17.4%

10.8%

1.7%

9.8%

YoY growth

(%)

9.9%

1.9%

-3.4%

7.6%

YoY growth

(%)

-24.5%

-14.0%

-122.7%

-15.8%

Electronics – Stabilizers, UPS, Inverters Electricals – Wires, Pumps, Switchgears, Modular Switches Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers Sunflame – Products sold under trademark Sunflame and Superflame Based on Consolidated Financials

Segment-wise Breakup – FY23 vs. FY22

Segment Revenue

Electronics Electricals

Consumer Durables

Sunflame Grand Total

Segment Result

Electronics Electricals Consumer Durables Sunflame Grand Total

FY23 (Rs. Cr) 994.0 1,798.8

1,276.3

56.9 4,126.0

FY23 (Rs. Cr) 130.9 138.6 7.9 8.0 285.3

Contribution (%)

24.1% 43.6%

30.9%

1.4% 100.0%

Margin (%)

13.2% 7.7% 0.6% 14.1% 6.9%

FY22 (Rs. Cr) 815.6 1,620.6

1,064.0

- 3,500.2

FY22 (Rs. Cr) 136.8 158.6 17.1 - 312.4

Contribution (%)

23.3% 46.3%

30.4%

- 100.0%

Margin (%)

16.8% 9.8% 1.6% - 8.9%

YoY growth (%) 21.9% 11.0%

20.0%

- 17.9%

YoY growth (%) -4.3% -12.6% -53.8% - -8.7%

Based on Consolidated Financials

Geographical Breakup of Revenues

Region

South Non-South Total (excl. Sunflame) Sunflame Total Revenue

Region

South Non-South Total (excl. Sunflame) Sunflame Total Revenue

Q4 FY23 (Rs. Cr) 588.3 495.0 1,083.2 56.9 1,140.1

FY23 (Rs. Cr) 2,227.5 1,841.7 4,069.1 56.9 4,126.0

Contribution (%)

54.3% 45.7% 100%

Contribution (%)

54.7% 45.3% 100%

Q4 FY22 (Rs. Cr) 608.1 451.1 1,059.2 - 1,059.2

FY22 (Rs. Cr) 2,042.9 1,457.3 3,500.2 - 3,500.2

Contribution (%)

57.4% 42.6% 100%

Contribution (%)

58.4% 41.6% 100%

YoY growth (%) -3.3% 9.7% 2.3% - 7.6%

YoY growth (%) 9.0% 26.4% 16.3% - 17.9%

Based on Consolidated Financials

Market Overview of V-Guard’s Product Portfolio

Electronics

Product

Total Market Size (Rs. Crs.)

Indicative Org. Market Size (%)

Industry Growth Rate (%)

VG Share in Org. Market (%)

Key Players

Stabilizers

1,700-1,800

55-60%

7-8%

42-45%

DUPS & Battery

11,500 -12,000

65-70%

8-10%

4-6%

Microtek, Livguard, Bluebird

Luminous, Microtek, Exide

Electricals

Product

Total Market Size (Rs. Crs.)

Indicative Org. Market Size (%)

Industry Growth Rate (%)

VG Share in Org. Market (%)

Key Players

House Wiring Cables 16,500 -17,000

62-65%

8-10%

6-8%

Switchgears*

3,000-3,500

75-80%

8-10%

3-5%

Modular Switches

6,000-6,500

70-75%

8-10%

Pumps*

3,000-3,500

60-65%

5-8%

8-10%

Polycab, Finolex, Havells

Havells, Legrand, Schneider

Anchor, Legrand, Havells

Crompton, Kirloskar, CRI

*Market estimates of VG active product segments only | ** Recent entry/ Growth plan under activation

Market Overview of V-Guard’s Product Portfolio

Appliances

Product

Total Market Size (Rs. Crs.)

Indicative Org. Market Size (%)

Industry Growth Rate (%)

VG Share in Org. Market (%)

Key Players

Water Heaters

2,500-2,600

65-70%

10-12%

14-16%

Havells, Bajaj, Crompton, Racold

Electric Fans

9,200-9,500

75-80%

8-10%

3-5%

Crompton, Usha, Havells, Orient Bajaj

Solar Water Heaters

500-600

60-65%

6-8%

14-16%

Sudarshan Saur, Supreme Solar

Air Coolers

4,500-5,000

30-35%

15-20%

Symphony, Bajaj, Voltas

Kitchen Appliances -

• Mixer Grinders • Gas Stoves • Water Purifiers • Other Small Kitchen

Appliances#

12,000-14,000

65-75%

8-10%

Mixer Grinders - Bajaj, Preethi, Prestige Gas Stoves - Stovekraft, Sunflame, Butterfly Water Purifiers - Eureka Forbes, Kent RO, HUL Pureit Others - Faber, Bajaj, Havells

# Includes Induction Cooktop, Rice Cooker, Sandwich Makers, Toasters, Grills, Kettles, Chimneys, etc. ** Recent entry/ Growth plan under activation

About V-Guard Industries

V-Guard Industries Limited (BSE:532953, NSE: VGUARD) is a Kochi based company, founded 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 multi-product Company catering to the Light Electricals sector manufacturing Voltage stabilizers, Digital UPS systems & Batteries, Pumps, House wiring cables, Switch gears, Modular switches, Electric water heaters, Fans, Solar water heaters, Air coolers and various Kitchen appliances.

V-Guard outsources ~ 40% of its product profile while the rest are manufactured in – house while keeping a strong control in designs and quality. It has manufacturing facilities at Coimbatore (Tamil Nadu), Kashipur & Roorkee (Uttarakhand), Kala Amb (Himachal Pradesh) and Sikkim.

V-Guard has been a dominant player in the South market, though the last ten years have also seen the Company expanding rapidly in the non-South geographies with their contribution increasing from 5% of total revenues in FY08 to around 45% of total revenues in FY23. Significant investments continue to be made to expand its outlet coverage in the non-South geographies and become a dominant pan-India player.

V-Guard has a diversified client base and an extensive marketing & distribution network. to product and includes direct marketing agents, distributors and retailers. The Company today has a strong network of 31 branches which cover ~40,000+ retailers across the country.

Its client base differs from product

For further information, please contact:

Sudarshan Kasturi (Senior VP & CFO)

V-Guard Industries Limited

Tel: +91 484 300 5601

Email: sudarshan.kasturi@vguard.in

Mayank Vaswani / Shruti Joshi

CDR India

Tel: +91 982 094 0953 / +91 750 656 7349

Email: mayank@cdr-india.com / shruti@cdr-india.com

THANK YOU

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