TVS Electronics Limited has informed the Exchange about Investor Presentation
9th May, 2023
Scrip Code - 532513
Scrip Symbol - TVSELECT
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra - Kurla Complex Bandra (E) Mumbai - 400 051
Dear Sir/ Madam,
Sub: Earnings Presentation – Q4 FY 2022-23
Pursuant to Regulation 30(2) and other respective regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing the copy of Earnings Presentation – Q4 FY 2022 -23.
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.
Earnings Presentation Q4-FY23/FY23
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Snapshot
PRODUCTS
SERVICES
OPERATIONS
FY23 FINANCIALS
Leading Transaction Automation Company in IT Industry
Servicing over 2,00,000 customers every month
500+ Employees
Revenue: INR 3,535 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 198 Mn
Net Profit: INR 95 Mn
Market Leaders in Point of Sale Devices
Infra Management Services (IT-IMS)
57 Drop Points 820+ Authorized Partners
ROCE: 13%
Products developed under ‘Make in India’ initiative
Unique edge of software bundling, product design solutions & customization
E-Auction
345 Walk in Centres
ROE: 9%
Repair Manufacturing Services (RMS)
3,000 Sq.Ft. Clean Room located in Tumkur
Net Debt to Equity: (0.02)x
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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 categories and also customer support services.
Revenue (INR Mn) & EBITDA Margins (%)
Segmental Revenue (INR Mn)
Geographical Distribution (FY23)
2,587
2,246
3,079
8.6%
4.2%
3.8%
3,535
5.6%
830
1,757
690
1,556
1,075
987
2,092
2,460
FY20 Revenue (INR in Mn)
FY21
FY22
FY23
EBITDA Margin (%)
FY20 FY21 Products & Solutions
FY22
FY23
Customer Support Service
10%
15%
33%
42%
South
North
West
East
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Business Segments
Product & Solutions Group (PSG) 70%
Track & Trace Products
Point of Transaction Products
Business Mix Percentage as on FY23
Customer Support Services (CSS) 30%
IT Infrastructure Managed Services
E-Auction
Warranty Management Services
Repair Manufacturing Services
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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
5 Branch Offices
19 Warehouses 290 sales partners
580 service partners
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Marquee Clientele
Products & Solutions
Top 10 Customer Concentration*
RETAIL
BFSI
96%
Hospitality
Government Entities
Railways
41%
37%
28%
27%
Customer Support Services
FY20
FY19
FY21 *Note: Online Distribution Business segment with high volume low margin was terminated during FY19, resulted in customer diversification
FY22
FY23
IT & Peripherals
Audio Lifestyle
Payment Devices - EDC
Consumer Electronics
Solar Energy
Smart Phones
EV Charging
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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
in house digital platform.
• Invested in artificial learning during FY23.
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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Q4-FY23/FY23 HIGHLIGHTS
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Q4-FY23/FY23 Financial Highlights
Q4-FY23 performance
FY23 performance
INR 852 Mn Revenue from Operations
INR 31 Mn EBITDA
3.64% EBITDA Margin
INR 3,535 Mn Revenue from Operations
INR 198 Mn EBITDA
5.60% EBITDA Margin
INR 15 Mn PAT
1.76 % PAT Margin
INR 0.81/share EPS
INR 95 Mn PAT
2.69% PAT Margin
INR 5.11/share EPS
Divisional Breakup:
INR Mn
Q4-FY23
Q4-FY22
Y-o-Y Growth
FY23
FY22
Y-o-Y Growth
Product & Solutions Group
Customer Support Services
Income from Operations
627
225
852
603
281
884
3.98%
(19.57)%
2,460
1,075
2,092
17.59%
987
8.92%
(3.62)%
3,535
3,079
14.81%
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Q4-FY23/FY23 Operational Highlights
• The Company recorded a revenue of INR 3,535 million for the year ended March 31, 2023 as against INR 3,079
million last year, with a growth of 15%.
• The revenue from ‘Products and Solutions’ segment for the year ended March 31, 2023 was INR 2,460 million as against INR 2,092 million in the previous year, with a growth of 18% while the revenue from ‘Customer Support Services’ segment grew by 9% over last year at INR 1,075 million.
• The Company has incurred expenses on consolidation of factories and technology upgradation during the year which
are part of P&L statement and are non-routine.
• EBITDA margin declined during the year due to investments in new business initiatives which increased the cost
during the year. These new initiatives toward building capabilities are expected to improve the revenue and margin trends in the coming years.
• The Board of Directors has recommended a final dividend of ₹2 per equity share for the financial year ended March
31, 2023.
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Quarterly Financial Performance
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
Finance Cost
Profit before exceptional items and tax
Exceptional Items (Net)
PBT
Tax
PAT
PAT Margin (%)
Other Comprehensive Income
Total Comprehensive Income
EPS (INR)(not annualised)
Q4-FY23
Q3-FY23
Q-o-Q
Q4-FY22
Y-o-Y
852
821
31
886
843
43
(3.8)%
(2.6)%
(27.9)%
884
806
78
(3.6)%
1.9%
(60.3)%
3.64%
4.85%
(121) Bps
8.82%
(518) Bps
(1)
7
2
21
0
21
6
15
(3)
24
2
14
0
14
0
14
66.7%
(70.8)%
NA
50.0%
NA
50.0%
NA
7.1%
5
19
4
60
5
65
20
45
NA
(63.2)%
(50.0)%
(65.0)%
NA
(67.7)%
(70.0)%
(66.7)%
1.76%
1.58%
18 Bps
5.09%
(333) Bps
(2)
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0.81
0
14
0.74
NA
(7.1)%
9.5%
1
46
2.41
NA
(71.7)%
(66.4)%
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Annual Financial Performance
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
Finance Cost
Profit before exceptional items and tax
Exceptional Items (Net)
PBT
Tax
PAT
PAT Margin (%)
Other Comprehensive Income
Total Comprehensive Income
EPS (INR)
FY23
FY22
Y-o-Y
3,535
3,337
198
5.60%
15
71
14
128
0
128
33
95
2.69%
(3)
92
5.11
3,079
2,815
264
8.57%
12
63
10
203
5
208
57
151
14.8%
18.5%
(25.0)%
(297) Bps
25.0%
12.7%
40.0%
(36.9)%
NA
(38.5)%
(42.1)%
(37.1)%
4.90%
(221) Bps
(5)
146
8.10
40.0%
(37.0)%
(36.9)%
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Historical Income Statement
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
Finance Cost
Profit before exceptional items and tax
Exceptional Items (Net)
PBT
Tax
PAT
PAT Margin (%)
Other Comprehensive Income
Total Comprehensive Income
EPS (INR)(not annualised)
FY20
FY21
FY22
FY23
2,587
2,478
109
4.21%
54
104
24
35
(35)
0
(4)
4
0.15%
(1)
3
0.21
2,246
2,160
86
3.83%
21
78
19
10
0
10
2
8
0.36%
4
12
0.41
3,079
2,815
264
8.57%
12
63
10
203
5
208
57
151
4.90%
(5)
146
8.10
3,535
3,337
198
5.60%
15
71
14
128
0
128
33
95
2.69%
(3)
92
5.11
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Balance Sheet
Equity and Liabilities (INR Mn) Equity Share Capital Other Equity Total Equity Non Current Liabilities Financial liabilities (i) Borrowings (ii) Lease Liabilities Provisions Other non-current liabilities Total Non-Current Liabilities Current Liabilities Financial liabilities (i) Borrowings (ii) Lease Liabilities (iii) Trade Payables (iv) Other Financial liabilities Provisions Current Tax Liabilities (net) Other Current liabilities Total Current Liabilities Total Liabilities Grand Total – Equity and Liabilities
FY21
FY22
FY23
186 632 818
0 36 13 1 50
0 31 603 72 65 0 59 830 880 1,698
186 740 926
0 27 16 2 45
37 24 679 152 84 13 66 1,055 1,100 2,026
186 832 1,018
62 28 11 2 103
33 14 682 148 78 0 136 1,091 1,194 2,212
Assets (INR Mn) Non Current Assets Property, Plant & Equipment Right of 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 Curent tax assets (Net) Other non-current assets Total Non-Current Assets Current Assets Inventories Financial assets (i) Investments (ii) Trade Receivable (iii) Cash and cash equivalents (iv) Other bank balances (v) Other financial assets Other current assets Total Current Assets Grand Total - Assets
FY21
FY22
FY23
78 63 0 153 27
11 14 3 23 256 628
370
159 277 81 5 89 89 1,070 1,698
75 51 2 136 12
10 1 10 3 258 558
469
336 352 104 6 106 95 1,468 2,026
166 44 18 132 13
11 6 12 9 258 669
619
113 465 91 23 96 136 1,543 2,212
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Financial Highlights
Operational Revenue (INR Mn)
EBITDA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
3,535
3,079
2,587
2,246
264
8.57%
198
5.60%
109
86
4.21%
3.83%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
151
95
4.90%
0.15%
4
0.36%
8
2.69%
FY20
FY21
FY22
FY23
ROE AND ROCE (%)
Net Debt to Equity (x)
Net Worth (INR Mn)
ROE (%)
7%
1%
3%
1%
ROCE (%) 22%
16%
13%
9%
FY20
FY21
FY22
FY23
0.01
FY20
FY21
FY22
FY23
-0.02
806
818
926
1,018
-0.08
-0.11
FY20
FY21
FY22
FY23
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Capital Market Data
Stock Market Performance (As on 31st March 2023)
60%
40%
20%
0%
-20%
-40%
Apr22
May22
Jun22
Jul22
Aug22
Sep22
Oct22
Nov22
Dec22
Jan23
Feb23
Mar23
TVS Electronics
BSE Sensex
Price Data (As on 31st March, 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
332.05
448.0/166.5
6,192.8
18.6
303.37
Shareholding Pattern (As on 31st March, 2023)
Public, 39.99%
Promoters, 59.91%
FPI/FII/Banks, 0.10%
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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