VGUARDNSE31 October 2023

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

V-Guard Industries Limited

October 31, 2023

The Manager, Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001

Scrip Code: 532953

Dear Sir/Madam,

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 Symbol: VGUARD

Sub: Investor Presentation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

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

We request you to kindly take the above information on 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 Q2 FY24 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

06-10

Segment-wise/Geographical Breakup of Revenues

11-13

Annexure

14-16

Managing Director’s Message

Commenting on the performance for Q2 FY24, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “The second quarter witnessed subdued consumer demand especially in discretionary categories like consumer durables thereby impacting topline growth. We have reported consolidated Net revenues of Rs. 1,134 crore in Q2, higher by 14.9% on a year-on-year basis. Excluding the revenues from Sunflame, like-for-like revenue growth is 8.7% YoY.

The Electronics segment continues to lead the growth with revenues rising 12.1% year-on-year followed by Electricals where revenues were higher by 9.6% year-on-year. While Consumer Durables growth has slowed to 5.1% year-on-year, we continue to make progress towards achieving scale in key Durable categories.

In Q2, the South market grew by 6.7% YoY while the Non-South markets grew by 11.3% YoY. As Non-South markets continue to grow in double digits, their contribution to revenues has increased to 43.8%, indicating the enhanced scale for V-Guard across all regions of the country.

Continued softening in commodity prices has meant that gross margin improved further during the quarter and is now moving closer towards the pre-covid levels.

Further reduction in working capital has enabled cash generation to remain strong during the quarter, even as we continue to invest in augmentation of capacity and enhancement of capabilities for the long term.

Consumer response for some of our recent product launches has been positive and we expect a strong topline growth in the second half of the year."

Based on Consolidated Financials

Key Highlights – Q2 FY24

Revenue increased by 14.9% YoY in Q2 FY24

• Q2 FY24 revenue increased by 14.9% YoY to Rs. 1,133.75 crore • South markets witnessed a YoY growth of 6.7% whereas Non-South markets grew by 11.3% in Q2 FY24 • Non-South markets contributed to 43.8% of total revenues in Q2 FY24 as compared to 42.7% in Q2 FY23

EBITDA performance and PAT

• Gross margin expanded by 450 bps YoY, at 33.8% in Q2 FY24 with continued moderation in input costs • Ad/promotional spends, at 2.2% of revenues in Q2 FY24 as compared to 2.2% in Q2 FY23 • EBITDA at Rs. 92.49 crore in Q2 FY24 grew 26.5% YoY, as compared to Rs. 73.13 crore in Q2 FY23 • EBITDA margins expanded by 80 bps YoY, at 8.2% as compared to 7.4% in Q2 FY23 • Q2 FY24 PAT increased 35.0% YoY to Rs. 58.95 crore

Robust cash flow generation and balance sheet

• CFO generation for H1 FY24 at Rs. 333.66 crore, improved significantly as compared to Rs. 227.77 crore for H1 FY23 on account of

reduction in working capital

• ROE and ROCE at 12.8% and 13.8%, respectively over the last 12 months • Net debt has increased to Rs. 158.96 crore as on 30th September 2023, as against net cash of Rs. 160.57 crore as on 30th September

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

Q2 FY24

Q2 FY23

Change

Q1 FY24

H1 FY24

H1 FY23

Change

(Rs. Cr)

1,133.75

986.55

14.9%

1,214.76

2,348.51

2,005.05

750.92

697.73

33.8%

29.3%

7.6%

4.5%

819.91

1,570.83

1,410.59

32.5%

33.1%

29.6%

17.1%

11.4%

3.5%

EBITDA (excluding other income)

92.49

73.13

26.5%

104.75

197.24

155.37

26.9%

as a % to Net Revenue (NR)

Other Income (including finance income)

8.2%

14.16

7.4%

0.8%

8.6%

8.4%

7.7%

0.7%

2.87

393.4%

11.79

25.95

7.78

233.5%

EBITDA including other income

106.65

76.00

40.3%

116.54

223.19

163.15

36.8%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

9.4%

7.7%

1.7%

9.6%

9.5%

8.1%

1.4%

77.53

59.16

31.0%

85.91

163.44

130.82

24.9%

6.8%

6.0%

0.8%

7.1%

7.0%

6.5%

0.5%

58.95

43.66

35.0%

64.22

123.17

97.03

26.9%

5.2%

4.4%

0.8%

5.3%

5.2%

4.8%

0.4%

P&L Snapshot (excluding Sunflame)

P&L Statement

Particulars

Net Revenue

COGS

Gross Margin

Q2 FY24

Q2 FY23

Change

Q1 FY24

H1 FY24

H1 FY23

Change

(Rs. Cr)

1,072.03

986.55

8.7%

1,151.61

2,223.64

2,005.05

10.9%

710.88

697.73

33.7%

29.3%

1.9%

4.4%

778.98

1,489.86

1,410.59

32.3%

33.0%

29.6%

5.6%

3.4%

EBITDA (excluding other income)

87.23

73.13

19.3%

97.25

184.48

155.37

18.7%

as a % to Net Revenue (NR)

Other Income (including finance income)

8.1%

13.53

7.4%

0.7%

8.4%

8.3%

7.7%

0.6%

2.87

371.4%

11.32

24.85

7.78

219.4%

EBITDA including other income

100.76

76.00

32.6%

108.57

209.33

163.15

28.3%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

9.4%

7.7%

1.7%

9.4%

8.1%

1.3%

73.89

59.16

24.9%

80.14

154.03

130.82

17.7%

6.9%

6.0%

0.9%

7.0%

6.9%

6.5%

0.4%

56.31

43.66

29.0%

59.91

116.22

97.03

19.8%

5.3%

4.4%

0.9%

5.2%

4.8%

0.4%

Financial Highlights (Q2 FY24 vs. Q2 FY23)

Revenue (Rs. crore)

Gross Profit (Rs. crore)

987

1,134

383

289

Key ratios (%)

Gross Margin

14.9%

32.5%

EBITDA Margin (excl. other income)

Q2 FY23

Q2 FY24

Q2 FY23

Q2 FY24

Net Margin

EBITDA (Rs. crore) 92

PAT (Rs. crore)

Ad & Promotion Exp./ Revenue

Employee Cost/ Revenue

Other Expenditure/ Revenue

Tax rate

Diluted EPS (Rs.)

26.5%

35.0%

Q2 FY23

Q2 FY24

Q2 FY23

Q2 FY24

Q2 FY23

33.8%

29.3%

8.2%

5.2%

2.2%

9.4%

16.2%

24.0%

1.34

7.4%

4.4%

2.2%

6.7%

15.1%

26.2%

1.00

Financial Highlights (H1 FY24 vs. H1 FY23)

Revenue (Rs. crore) 2,349

2,005

Gross Profit (Rs. crore)

778

594

17.1%

30.8%

H1 FY23

H1 FY24

H1 FY23

H1 FY24

EBITDA (Rs. crore)

197

155

PAT (Rs. crore)

123

26.9%

H1 FY23

H1 FY24

H1 FY23

H1 FY24

Key ratios (%)

Gross Margin

EBITDA Margin (excl other income)

Net Margin

Ad & Promotion Exp./ Revenue

Employee Cost/ Revenue

Other Expenditure/ Revenue

Tax rate

Diluted EPS (Rs.)

H1 FY24

H1 FY23

33.1%

29.6%

8.4%

5.2%

2.2%

8.9%

15.8%

24.6%

2.81

7.7%

4.8%

2.1%

7.2%

14.7%

25.8%

2.22

Financial Highlights – Balance Sheet Perspective

Balance Sheet Snapshot (Rs. Cr)

30 September 2023

30 June 2023

30 September 2022

Net Worth

Gross Debt

Current Investments

Cash & Cash Equivalents (inc. bank balance)

Net Cash Position (Rs. crore)

Fixed Assets

1,682.55

293.17

35.13

99.08

-158.96

1,057.41

1,676.78

379.17

90.24

93.10

-195.83

1,025.17

1,460.42

10.00

100.62

69.95

160.57

514.19

Balance Sheet Snapshot (Rs. Cr)

30 September 2023

30 June 2023

30 September 2022

Debtor (days)*

Inventory (days)*

Creditor (days)*

Working Capital Turnover (days)

RoE* (%)

RoCE* (%)

12.8%

13.8%

11.9%

12.6%

107

16.6%

20.3%

Note: *Calculations are on a trailing twelve month basis

Based on Consolidated Financials

Segment-wise Breakup – Q2 FY24 vs. Q2 FY23

Segment Revenue

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Segment Result

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Q2 FY24 (Rs. Cr)

255.09

462.28

354.66

61.72

Contribution (%)

22.5%

40.8%

31.3%

5.4%

Q2 FY23 (Rs. Cr)

227.46

421.77

337.32

Contribution (%)

23.1%

42.7%

34.2%

YoY growth (%)

12.1%

9.6%

5.1%

1,133.75

100.0%

986.55

100.0%

14.9%

Q2 FY24

(Rs. Cr)

37.80

38.32

-0.92

3.70

78.90

Margin (%)

14.8%

8.3%

-0.3%

6.0%

7.0%

Q2 FY23

(Rs. Cr)

33.29

22.84

9.68

65.81

Margin (%)

14.6%

5.4%

2.9%

YoY growth

(%)

13.5%

67.8%

-109.5%

6.7%

19.9%

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 – H1 FY24 vs. H1 FY23

Segment Revenue

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Segment Result

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

H1 FY24 (Rs. Cr)

618.82

919.00

685.82

124.87

Contribution (%)

26.4%

39.1%

29.2%

5.3%

H1 FY23 (Rs. Cr)

530.91

837.72

636.42

Contribution (%)

26.5%

41.8%

31.7%

YoY growth (%)

16.6%

9.7%

7.8%

2,348.51

100.0%

2,005.05

100.0%

17.1%

H1 FY24

(Rs. Cr)

96.26

67.31

-0.04

9.54

173.07

Margin (%)

15.6%

7.3%

0.0%

7.6%

7.4%

H1 FY23

(Rs. Cr)

76.16

51.15

13.50

Margin (%)

14.3%

6.1%

2.1%

YoY growth

(%)

26.4%

31.6%

-100.3%

140.81

7.0%

22.9%

Geographical Breakup of Revenues

Region

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

Region

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

Q2 FY24 (Rs. Cr) 602.76 469.27 1,072.03 61.72 1,133.75

H1 FY24 (Rs. Cr) 1,195.41 1,028.23 2,223.64 124.87 2,348.51

Contribution (%)

56.2% 43.8% 100.0%

Contribution (%)

53.8% 46.2% 100.0%

Q2 FY23 (Rs. Cr) 564.94 421.61 986.55 - 986.55

H1 FY23 (Rs. Cr) 1,105.33 899.72 2,005.05

2,005.05

Contribution (%)

57.3% 42.7% 100.0%

Contribution (%)

55.1% 44.9% 100.0%

YoY growth (%) 6.7% 11.3% 8.7%

14.9%

YoY growth (%) 8.1% 14.3% 10.9%

17.1%

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, Pantnagar & Haridwar (Uttarakhand), Kala Amb (Himachal Pradesh), Hyderabad (Telangana), Faridabad (Haryana) 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.

Its client base differs from product

V-Guard has a diversified client base and an extensive marketing & distribution to product and includes direct network. marketing agents, distributors and retailers. The Company today has a strong network of 32 branches which cover ~60,000+ channel partners across the country.

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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