TVS Electronics Limited has informed the Exchange about Investor Presentation
20th November, 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 – Q2 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 – Q2 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 Q2/H1-FY24
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Snapshot
PRODUCTS & SOLUTIONS
CUSTOMER SUPPORT SERIVCES
OPERATIONS
FY23 FINANCIALS
Leading Transaction Automation Products company
Diversified Business & Preferred Service Partner across Global Brands
600+ Employees
Revenue: INR 3,535 Mn
3+ Decades Experience
Field Support Services
6 Branch Offices 13 Warehouses
EBITDA: INR 198 Mn
Market Leaders in Point of Sale devices
Infra Managed Services – IT, Solar
57 Drop Points 740+ Authorized Partners
Net Profit: INR 95 Mn
Pioneers in DOT Matrix Printer & Keyboards
Repair & Manufacturing Services (RMS)
345 Walk in Centres
ROCE: 13%
Products developed under ‘Make in India’ initiative
E-Auction Services
Manufacturing plant at Tumakuru
ROE: 9%
Unique edge of software bundled product solutions
Servicing over 2,00,000 customers every month,19,250+ pincodes served, Logistics coverage > 90% (of total districts)
Repair Factory: 1,500 Sq.Ft. Clean Room located in Tumakuru
Net Debt to Equity ratio: (0.02)x
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Company Overview
TVS Electronics (TVS-E) Limited was incorporated in 1986, under the leadership of Mr. Gopal Srinivasan
The company has emerged as one of the frontrunners in the IT peripherals, point-of- sale solutions, field support services and infra managed services for IT
The company caters to vast customer segments including, Retail, BFSI, Shipping & Logistics, Government.
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It is headquarters out of Chennai, India and has 1 state-of-the-art manufacturing plant, located at Tumakuru, 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%
1,820
3.5%
1,075
987
2,092
2,460
690
1,556
500
1,320
FY21 Revenue (INR in Mn)
FY22
FY23
H1-FY24
EBITDA Margin (%)
FY21 FY22 Products & Solutions
FY23
H1-FY24 Customer Support Service
10%
15%
33%
42%
South
North
West
East
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Business Segments
Product & Solutions Group (PSG) 73%
Track & Trace Products
Point of Transaction Products
Business Mix Percentage as on Q2-FY24
Customer Support Services (CSS) 27%
IT Infrastructure Managed Services
E-Auction
Field Support Services
Repair Manufacturing Services
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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
FY19
FY20
FY21
FY22
FY23
41%
37%
28%
27%
*Note: Online Distribution Business segment with high volume low margin was diversification
terminated during FY19,
resulted in customer
BFSI
IT IMS
Banking & Technology
Consumer Electronics
Banks
Solar
EVS Charging
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Strategic Overview
Single point solution provider • Our aim is to be the trusted single-point solution provider, offering reliable point of transaction and track and trace products to our customers in the banking, retail, Govt. shipping, and logistics.
Hardware devices with software solutions • The retail and parking sectors are undergoing a digital transformation and software solutions play a crucial role in optimizing operations. TVS-E provides total solutions by bundling hardware products with inbuilt solutions.
Customer Support Services - One stop solution • Global brands and Indian customers depend on trusted partners for post sales support. We offer end-to-end service which includes:
o Field support services: IT products /peripherals, POS products,
Banking POS.
o Infra Managed Services: IT devise endpoint computing to data
centers, both on-premise and in cloud
o Repair services : PCBA and display panel repair o eAuction services: disposal of scrap, machinery, excess
inventory, e-Waste and end-of-life management support for B2B customers.
o Our in-house CRM AI/ML-enabled platform to connect brands,
service partners, parts management, and logistics.
STRATEGIC PRIORITIES
Manufacturing IT Peripherals / Make in India • To capitalize on the demand, TVS-E focus is on enhancing manufacturing capabilities through SKD,CKD at Tumakuru and strengthening supply eco-system that cater to the evolving needs of our customers.
Contract Manufacturing Services for Tech Partners • Collaborating with our Technology partners presents a significant opportunity for growth. By leveraging our manufacturing capabilities and expertise, we assist our partners in bringing their products to market efficiently and cost-effectively. This strategic partnership will not only strengthen our relationships but also contribute to the "Make in India" initiative by promoting local manufacturing.
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Q2/H1-FY24 HIGHLIGHTS
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Q2/H1-FY24 Financial Highlights
Q2-FY24 performance
H1-FY24 performance
INR 922 Mn Revenue from Operations
INR 38 Mn EBITDA
4.12% EBITDA Margin
INR 1,820 Mn Revenue from Operations
INR 64 Mn EBITDA
3.52% EBITDA Margin
INR 11 Mn PAT
1.19% PAT Margin
INR 0.60/share EPS
INR 14 Mn PAT
0.77% PAT Margin
INR 0.77/share EPS
Divisional Breakup:
INR Mn
Q2-FY24
Q2-FY23
Y-O-Y
H1-FY24
H1-FY23
Y-O-Y
Product & Solutions Group
Customer Support Services
Income from Operations
675
247
922
629
304
933
7.2%
(18.7)%
(1.2)%
1,320
500
1,820
1,246
550
1,796
5.9%
(9.1)%
1.3%
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Q2/H1-FY24 Operational Highlights
• The Products and Solutions vertical clocked a revenue of INR 675 Million in Q2-FY24, which grew by 7.2% YoY and 4.6% QoQ. The performance improved over Q1-FY24 due to better Revenue mix that helped in improvement in margins.
• The Customer Support Services vertical delivered a revenue of INR 247 Million in Q2-FY24, which records variance of (18.7)% YoY and (2.4)% QoQ, as a few service offerings were discontinued which impacted revenue but helped in improving the margins.
• The company continues to invest in new business initiatives and building capabilities for future growth.
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Q2-FY24 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)
Q2-FY24
Q1-FY24
Q-o-Q
Q2-FY23
Y-o-Y
922
884
38
898
873
25
2.7%
1.3%
52.0%
933
873
60
(1.2)%
1.3%
(36.7)%
4.12%
2.78%
134 Bps
6.43%
(231) Bps
5
26
5
12
0
12
1
11
5
23
3
4
0
4
1
3
0.0%
13.0%
66.7%
NA
0.0%
NA
0.0%
NA
14
22
8
44
0
44
16
28
(64.3)%
18.2%
(37.5)%
(72.7)%
0.0%
(72.7)%
(93.8)%
(60.7)%
1.19%
0.33%
86 Bps
3.00%
(181) Bps
4
15
0.60
0
3
0.17
NA
NA
NA
(2)
26
1.50
NA
(42.3)%
(60.0)%
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H1-FY24 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)
H1-FY24
H1-FY23
Y-o-Y
1,820
1,756
64
3.52%
10
49
8
17
0
17
3
14
1,796
1,673
123
6.85%
20
40
10
93
0
93
27
66
1.3%
5.0%
(48.0)%
(333) Bps
(50.0)%
22.5%
(20.0)%
(81.7)%
0.0%
(81.7)%
(88.9)%
(78.8)%
0.77%
3.67%
(290) Bps
4
18
0.77
(1)
65
3.54
NA
(72.3)%
(78.2)%
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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
H1-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
1,820
1,756
64
3.52%
10
49
8
17
0
17
3
14
0.77%
4
18
0.77
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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
FY22
FY23
H1-FY24
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
186 813 999
75 14 13 2 104
38 25 626 153 86 0 98 1,026 1,130 2,129
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
FY22
FY23
H1-FY24
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
214 42 11 151 2
13 14 11 23 8 489
520
241 552 32 23 122 150 1,640 2,129
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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
1,820
264
8.57%
86
3.83%
198
5.60%
64
3.52%
FY21
FY22
FY23
H1-FY24
FY21
FY22
FY23
H1-FY24
151
4.90%
95
8
0.36%
2.69%
14
0.77%
FY21
FY22
FY23
H1-FY24
ROE AND ROCE (%)
Net Debt to Equity (x)
Net Worth (INR Mn)
ROE (%)
ROCE (%)
22%
16%
FY22
3%
1%
FY21
0.06
818
926
1,018
999
13%
9%
FY23
FY21
FY22
FY23 -0.02
H1-FY24
-0.08
-0.11
FY21
FY22
FY23
H1 FY24
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Capital Market Data
Stock Market Performance (As on 30th September, 2023)
80%
60%
40%
20%
0%
-20%
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
TVS Electronics
BSE Sensex
Price Data (As on 30th September, 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
345.95
448.0/239.9
6,452.08
18.6
376.7
Shareholding Pattern (As on 30th September, 2023)
Public 40.08%
Promoter & Promoter Group 59.91%
FPI/FII/DII 0.01%
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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