TVS Electronics Limited has informed the Exchange about Investor Presentation
17th August, 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: Earnings Presentation – Q1 FY 2023-24
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 – Q1 FY 2023-24.
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 Q1-FY24
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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
600+ Employees
Revenue: INR 3,535 Mn
3+ Decades Experience
Pioneers in DOT Matrix Printer & Keyboards
19,250+ codes Pin Serviced and Logistics coverage > 90% (of total districts)
Diversified Business & Preferred Service Partner across Global Brands
1 Centralised Factory 1 Repair Centre
EBITDA: INR 198 Mn
5 Branch Offices 13 Warehouses
Net Profit: INR 95 Mn
Market Leaders in Point of Sale Devices
Infra Management Services (IT-IMS)
57 Drop Points 740+ 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)
1,500 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.
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)
3,079
8.6%
3,535
5.6%
2,246
3.8%
898
2.8%
1,075
987
2,092
2,460
690
1,556
253 645
FY21 Revenue (INR in Mn)
FY22
FY23
Q1-FY24
EBITDA Margin (%)
FY21 FY22 Products & Solutions
FY23
Q1-FY24 Customer Support Service
10%
15%
33%
42%
South
North
West
East
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Business Segments
Product & Solutions Group (PSG) 72%
Track & Trace Products
Point of Transaction Products
Business Mix Percentage as on Q1-FY24
Customer Support Services (CSS) 28%
IT Infrastructure Managed Services
E-Auction
Field Support Services
Repair Manufacturing Services
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An Established Eco-System
1 Factory
CUSTOMERS
DISTRIBUTORS
PRODUCTS & SERVICES
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
13 Warehouses 140+ Sales partners
600+ Service partners
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Marquee Clientele
Products & Solutions
Customer Support Services
Top 10 Customer Concentration*
RETAIL
Manufacturing
IT & Peripherals
96%
Health Care & Hospitality
Government Entities
Audio Lifestyle
41%
37%
28%
27%
FY19
FY20
FY21
FY22
FY23
*Note: Online Distribution Business segment with high volume low margin was resulted in customer diversification
terminated during FY19,
BFSI
IT IMS
Banking & Technology
Consumer Electronics
Merchants
Solar
EVS Charging
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Strategic Overview
Focus on Digitalisation, SaaS, etc • Moved onto a subscription model for the service in house digital platform. Employed an in-house web application for the services vertical, hence it can grow without incurring any additional costs. Invested in artificial enhance and reinforce Customer Support Services segment.
intelligence & machine learning during FY23 to
•
• Proactively shifted focus
towards providing integrated packages encompassing hardware devices, tailored solutions, and advanced analytics.
• Offering depth, diversification and expertise in Point of Transaction, Track & Trace, Personal & Productivity and Security & Surveillance products portfolio
EMS as Part of the ‘Make in India initiative’ • TVS-E has undertaken backward integration of some of from neighbouring
processes and replaced imports countries with in-house production of certain products. • Products developed under ‘Make in India’ initiative include POS printers, barcode scanners, passbook printers, Touch POS systems, label printers, and membrane keyboards
STRATEGIC PRIORITIES
Contract Manufacturing Services • Expanded Tumakuru Factory with state-of -the-art assembly
lines to provide Contract Manufacturing Services.
• Developed a reliable vendor eco system for sheet metal works and plastic injection moulding around the plant. The team is highly skilled and have a trained group pf diverse people. Exploring opportunities to provide the services to our existing customers, brands and OEMs
•
Infra Managed Service (IMS) •
•
IMS services covers everything from endpoint computing to data centres, both on-premises and in the cloud, providing clients with a convenient one-stop solution. Provide infrastructure support for service desk management, asset management, server and data base management & workspace management viz. laptops, desktops, IOT devices, communication and conference tools.
• Also provide application management & cyber security support services under the umbrella of Infra Managed Services (IMS).
Renewable Energy (Solar and EV Charger) • Offer comprehensive monitoring, break fix & operations and maintenance services for solar invertors to ensure optimal solar power generation is achieved.
• Also provide installation, maintenance & break fix services for EV
charger infrastructure.
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Q1-FY24 HIGHLIGHTS
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Q1-FY24 Financial Highlights
Q1-FY24 performance
INR 898 Mn Revenue from Operations
INR 25 Mn EBITDA
2.78% EBITDA Margin
INR 3 Mn PAT
0.33 % PAT Margin
INR 0.17/share EPS
Divisional Breakup:
INR Mn
Q1-FY24
Q1-FY23
Y-o-Y Growth
Product & Solutions Group
Customer Support Services
Income from Operations
645
253
898
617
246
863
4.5%
2.8%
4.1%
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Q1-FY24 Operational Highlights
• The Products and Solutions business vertical clocked a revenue of INR 645 Mn, which grew by 4.5% YoY and 3%
QoQ
• The Customer Support Services business vertical delivered a revenue of INR 253 Mn, which grew by 2.8% YoY and
12% QoQ.
• Our performance for the quarter under review is reflective of slowdown in volume pick-up in our addressable
markets, inflationary impact and high Interest rates in the market. The Company expects this situation to ease in the coming quarters and thereby improve performance.
• EBITDA margin declined YoY basis to 2.78% due to higher expenditures towards new business initiatives and
towards building capabilities which are expected to yield better returns in the coming years.
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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)
Q1-FY24
Q4-FY23
Q-o-Q
Q1-FY23
Y-o-Y
898
873
25
852
821
31
2.78%
3.64%
5
23
3
4
0
4
1
3
(1)
7
2
21
0
21
6
15
5.4%
6.3%
(19.4)%
(86) Bps
NA
NA
50.0%
(81.0)%
NA
(81.0)%
(83.3)%
(80.0)%
863
799
64
4.1%
9.3%
(60.9)%
7.42%
(464) Bps
6
18
3
49
0
49
11
38
(16.7)%
27.8%
NA
(91.8)%
NA
(91.8)%
(90.9)%
(92.1)%
0.33%
1.76%
(143) Bps
4.40%
(407) Bps
0
3
0.17
(2)
13
0.81
NA
(76.9)%
(79.0)%
1
39
2.04
NA
(92.3)%
(91.7)%
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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)
FY21
FY22
FY23
Q1-FY24
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
898
873
25
2.78%
5
23
3
4
0
4
1
3
0.33%
0
3
0.17
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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
2,246
198
264
8.57%
5.60%
25 2.78%
8
0.36%
151
4.90%
95
2.69%
3
0.33%
898
86
3.83%
FY21
FY22
FY23
Q1-FY24
FY21
FY22
FY23
Q1-FY24
FY21
FY22
FY23
Q1-FY24
ROE AND ROCE (%)
Net Debt to Equity (x)
Net Worth (INR Mn)
ROE (%)
ROCE (%)
22%
16%
FY22
13%
9%
FY23
3%
1%
FY21
FY21
FY22
FY23
-0.02
-0.08
-0.11
926
1,018
818
FY21
FY22
FY23
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Capital Market Data
Stock Market Performance (As on 30th June, 2023)
140%
120%
100%
80%
60%
40%
20%
0%
-20%
Jul22
Aug22
Sep22
Oct22
Nov22
Dec22
Jan23
Feb23
Mar23
Apr23
May23
Jun23
TVS Electronics
BSE Sensex
Price Data (As on 30th June, 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
403.35
448.0/183.0
7,522.6
18.6
382.3
Shareholding Pattern (As on 30th June, 2023)
Public 40.07%
Promoters 59.91%
FPI/FII/DII 0.02%
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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