VGUARDNSE28 January 2025

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

V-Guard Industries Limited

January 28, 2025

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: Submission of 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 nine months ended December 31, 2024.

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 Q3 FY25 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 Q3 FY25, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “Topline for the third quarter grew 8.9% Y-o-Y with a strong performance from the Electronics segment. The overall demand situation remained moderate during the quarter.

The Electronics segment led the growth, achieving a topline increase of 27.9% YoY, followed by the Consumer Durables and Electricals segments, which grew by 8.1% and 1.2%, respectively. The demand for wires was impacted by commodity price fluctuations. The kitchen business is currently facing subdued demand which impacted the overall growth in the Durables segment. Geographically, the Non-South regions continued to perform well with topline growth of ~16% YoY for the quarter, while South markets registered growth of 3.8% YoY.

The improvement in Gross Margin was sustained during the quarter. Higher Advertising and Promotion (A&P) spends during the quarter, especially in Sunflame, had some impact on the bottomline.

We continue our efforts towards efficiently managing working capital which has helped us to maintain the pace of cash generation during the quarter. With the repayment of the Sunflame debt progressing as scheduled, we are on track to fully repay the debt by the close of the financial year.

Margins remain healthy and we look forward to the upcoming summer season with the expectation to deliver robust performance.”

Based on Consolidated Financials

Key Highlights – Q3 FY25

Revenue increased by 8.9% YoY in Q3 FY25

• Q3 FY25 revenue increased by 8.9% YoY to Rs. 1268.65 crore • South markets witnessed a YoY growth of 3.7% whereas Non-South markets grew by 15.8% in Q3 FY25 • Non-South markets contributed to 48.4% of total revenues in Q3 FY25 as compared to 45.6% in Q3 FY24

EBITDA performance and PAT

• Gross margin expanded by 250 bps YoY, at 36.2% in Q3 FY25 as compared to 33.7% in Q3 FY24 • Ad/promotional spends, at 3.4% of revenues in Q3 FY25 as compared to 2.7% in Q3 FY24 with higher spends especially in Sunflame • Employee cost for Q3 FY25 is 10.3% of revenues as compared to 7.2% in Q3 FY24. The increase is mainly due to significant one-off

reversals in Q3 FY24 towards employee incentives and stock options.

• EBITDA at Rs. 104.14 crore in Q3 FY25 grew 2.5% YoY, as compared to Rs. 101.62 crore in Q3 FY24 • EBITDA margin for Q3 FY25 is 8.2% as compared to 8.7% in Q3 FY24 • Q3 FY25 PAT increased 3.4% YoY to Rs. 60.22 crore

Robust cash flow generation and balance sheet

• CFO generation continued to remain strong for 9M FY25 at Rs. 402.95 crore compared to Rs. 410.04 crore for 9M FY24 • ROE and ROCE at 14.9% and 18.8%, respectively over the last 12 months • Net cash as on 31st December 2024 is Rs. 27.72 crore, as against net debt of Rs. 145.12 crore as on 31st December 2023.

Based on Consolidated Financials

P&L Snapshot (including Sunflame)

P&L Statement

Particulars

Net Revenue (NR)

COGS

Gross Margin

809.96

772.53

36.2%

33.7%

EBITDA (excluding other income)

104.14

101.62

as a % to Net Revenue (NR)

Other Income (including finance income)

8.2%

5.43

8.7%

3.19

EBITDA including other income

109.57

104.81

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

8.6%

9.0%

78.74

76.25

6.2%

6.5%

60.22

58.24

4.7%

5.0%

Q3 FY25

Q3 FY24

Change

Q2 FY25

9M FY25

9M FY24

Change

(Rs. Cr)

1,268.65

1,165.39

8.9%

1,293.99

4,039.74

3,513.90

15.0%

4.8%

2.5%

-0.5%

70.2%

4.5%

-0.4%

3.3%

-0.3%

3.4%

-0.3%

830.22

2,581.00

2,348.46

35.8%

36.1%

33.2%

9.9%

2.9%

110.26

370.17

298.86

23.9%

8.5%

4.05

9.2%

8.5%

0.7%

16.39

29.14

-43.8%

114.31

386.56

328.00

17.9%

8.8%

84.62

6.5%

63.39

4.9%

9.6%

9.3%

0.3%

295.72

239.69

23.4%

7.3%

6.8%

0.5%

222.58

181.41

22.7%

5.5%

5.2%

0.3%

P&L Snapshot (excluding Sunflame)

P&L Statement

Particulars

Net Revenue (NR)

COGS

Gross Margin

Q3 FY25

Q3 FY24

Change

Q2 FY25

9M FY25

9M FY24

Change

(Rs. Cr)

1,189.30

1,089.12

9.2%

1,232.94

3,840.68

3,312.76

758.76

724.25

36.2%

33.5%

791.48

2,455.29

2,219.21

35.8%

36.1%

33.0%

15.9%

10.6%

3.1%

4.8%

2.7%

8.7%

EBITDA (excluding other income)

101.62

93.46

109.36

364.12

277.93

31.0%

as a % to Net Revenue (NR)

Other Income (including finance income)

8.5%

5.42

8.6%

-0.1%

2.35

130.6%

8.9%

3.76

9.5%

8.4%

1.1%

15.73

27.20

-42.2%

EBITDA including other income

107.04

95.81

11.7%

113.12

379.85

305.13

24.5%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

Based on Consolidated Financials

9.0%

8.8%

0.2%

78.01

68.10

14.6%

6.6%

6.3%

0.3%

59.82

51.88

15.3%

5.0%

4.8%

0.2%

9.2%

85.24

6.9%

63.79

5.2%

9.9%

9.2%

0.7%

294.38

222.13

32.5%

7.7%

6.7%

1.0%

221.78

168.10

31.9%

5.8%

5.1%

0.7%

Financial Highlights (Q3 FY25 vs. Q3 FY24)

Revenue (Rs. crore)

Gross Profit (Rs. crore)

1,165

1,269

393

459

8.9%

16.8%

Q3 FY24

Q3 FY25

Q3 FY24

Q3 FY25

EBITDA (Rs. crore)

PAT (Rs. crore)

102

104

2.5%

3.4%

Q3 FY24

Q3 FY25

Q3 FY24

Q3 FY25

Key ratios (%)

Gross Margin

EBITDA Margin (excl. other income)

Profit after Tax %

Ad & Promotion Exp./ Revenue

Employee Cost/ Revenue

Other Expenditure/ Revenue

Tax rate

Diluted EPS (Rs.)

Q3 FY25

Q3 FY24

36.2%

33.7%

8.2%

4.7%

3.4%

10.3%

17.7%

23.5%

1.37

8.7%

5.0%

2.7%

7.2%

17.8%

23.6%

1.33

Based on Consolidated Financials

Employee cost for Q3 FY24 includes significant one-off reversals towards employee incentives and stock options.

Financial Highlights (9M FY25 vs. 9M FY24)

Revenue (Rs. crore) 4,040

3,514

Gross Profit (Rs. crore)

1,459

1,165

15.0%

25.2%

9M FY24

9M FY25

9M FY24

9M FY25

EBITDA (Rs. crore) 370

299

PAT (Rs. crore) 223

181

23.9%

22.7%

9M FY24

9M FY25

9M FY24

9M FY25

Based on Consolidated Financials

Key ratios (%)

Gross Margin

9M FY25

9M FY24

36.1%

33.2%

EBITDA Margin (excl. other income)

Profit after Tax %

Ad & Promotion Exp./ Revenue

Employee Cost/ Revenue

Other Expenditure/ Revenue

Tax rate

Diluted EPS (Rs.)

9.2%

5.5%

3.1%

9.5%

17.5%

24.7%

5.07

8.5%

5.2%

2.4%

8.4%

16.3%

24.3%

4.14

Financial Highlights – Balance Sheet Perspective

Balance Sheet Snapshot (Rs. Cr)

31 December 2024

30 September 2024

31 December 2023

Net Worth

Gross Debt

Current Investments

Cash & Cash Equivalents (inc. bank balance)

Net Cash Position

Fixed Assets

1,999.57

76.65

30.14

74.23

27.72

1,930.94

146.91

80.46

70.71

4.26

1,146.96

1,130.47

1,737.16

290.03

40.16

104.76

-145.12

1,069.51

Balance Sheet Snapshot

31 December 2024

30 September 2024

31 December 2023

Debtor (days)*

Inventory (days)*

Creditor (days)*

Working Capital Turnover (days)*

RoE* (%)

RoCE* (%)

106

14.9%

18.8%

15.4%

18.9%

13.5%

15.1%

Note: *Calculations are on a trailing twelve month basis

Based on Consolidated Financials

Segment-wise Breakup – Q3 FY25 vs. Q3 FY24

Segment Revenue

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Segment Result

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Contribution (%)

YoY growth (%)

Q3 FY25 (Rs. Cr)

285.99

478.55

424.76

79.35

Contribution (%)

22.5%

37.7%

33.5%

6.3%

Q3 FY24 (Rs. Cr)

223.62

472.70

392.80

76.27

19.2%

40.6%

33.7%

6.5%

1,268.65

100.0%

1,165.39

100.0%

Q3 FY25

(Rs. Cr)

56.19

42.94

17.66

2.20

118.99

Margin (%)

19.6%

9.0%

4.2%

2.8%

9.4%

Q3 FY24

(Rs. Cr)

33.75

52.12

20.06

9.59

115.52

Margin (%)

15.1%

11.0%

5.1%

12.6%

9.9%

27.9%

1.2%

8.1%

4.0%

8.9%

YoY growth

(%)

66.5%

-17.6%

-12.0%

-77.1%

3.0%

Based on changes in internal reporting of segment results, certain costs pertaining to corporate functions which were previous allocated to various segments are now presented under unallocable expense. Accordingly, segment information including comparatives for previous periods have been restated.

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 – 9M FY25 vs. 9M FY24

Segment Revenue

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

Segment Result

Electronics

Electricals

Consumer Durables

Sunflame

Grand Total

9M FY25 (Rs. Cr)

1,102.10

1,503.86

1,234.72

199.06

4,039.74

9M FY25

(Rs. Cr)

219.15

141.23

55.47

5.79

421.64

Contribution (%)

27.3%

37.2%

30.6%

4.9%

100.0%

Margin (%)

19.9%

9.4%

4.5%

2.9%

10.4%

9M FY24 (Rs. Cr)

842.44

1,391.70

1,078.62

201.14

3,513.90

9M FY24

(Rs. Cr)

144.00

140.22

35.54

19.13

338.89

Contribution (%)

YoY growth (%)

24.0%

39.6%

30.7%

5.7%

100.0%

Margin (%)

17.1%

10.1%

3.3%

9.5%

9.6%

30.8%

8.1%

14.5%

-1.0%

15.0%

YoY growth

(%)

52.2%

0.7%

56.1%

-69.7%

24.4%

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

Q3 FY25 (Rs. Cr) 614.07 575.23 1,189.30 79.35 1,268.65

9M FY25 (Rs. Cr) 1,990.31 1,850.37 3,840.68 199.06 4,039.74

Contribution (%)

51.6% 48.4% 100.0%

Contribution (%)

51.8% 48.2% 100.0%

Q3 FY24 (Rs. Cr) 592.20 496.92 1,089.12 76.27 1,165.39

9M FY24 (Rs. Cr) 1,787.61 1,525.15 3,312.76 201.14 3,513.90

Contribution (%)

54.4% 45.6% 100.0%

Contribution (%)

54.0% 46.0% 100.0%

YoY growth (%) 3.7% 15.8% 9.2% 4.0% 8.9%

YoY growth (%) 11.3% 21.3% 15.9% -1.0% 15.0%

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 (%)

Other Key Players

Stabilizers

1,600-2,000

65-70%

4-6%

40-45%

DUPS & Battery

13,000-16,000

65-70%

13-15%

5-7%

Microtek, Everest, Premier

Exide, Luminous, Microtek

Electricals

Product

Total Market Size (Rs. Crs.)

Indicative Org. Market Size (%)

Industry Growth Rate (%)

VG Share in Org. Market (%)

Other Key Players

House Wiring Cables 21,000-25,000

65-70%

9-10%

8-9%

Switchgears*

4,000-4,500

75-80%

8-10%

~ 5%

Modular Switches

7,000-9,000

75-80%

12-14%

Pumps*

5,000-6,000

65-70%

7-9%

9-12%

Polycab, Finolex, Havells

Legrand, Havells, Anchor

Anchor, Legrand, Havells

Crompton, Kirloskar, Texmo

*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 (%)

Other Key Players

Water Heaters

3,000-4,000

80-85%

8-10%

14-16%

Bajaj, Havells, Crompton, Racold

Electric Fans

12,000-14,000

80-85%

8-10%

5-7%

Crompton, Havells, Orient, Usha, Bajaj

Solar Water Heaters

800-900

60-65%

5-7%

15-17%

Sudarshan Saur, Supreme Solar, Racold

Air Coolers

6,500-8,000

35-40%

11-12%

Symphony, Bajaj, Voltas

Kitchen Appliances

• Mixer Grinders • Gas Stoves • Water Purifiers • Other Kitchen Appliances#

3,500-5,000 2,500-3,000 6,000-6,500 2,200-2,500

70-75% 60-65% 60-65% 75-80%

9-10% 11-13% 15-18% 10-15%

** 5-7% ** **

Mixer Grinders - Bajaj, Preethi, Butterfly Gas Stoves - Prestige, 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 ~ 35% of its product profile while the rest are manufactured in – house while keeping a strong control in designs and quality. It has manufacturing (Tamil Nadu), Kashipur, Pantnagar & Haridwar facilities at Coimbatore (Uttarakhand), Kala Amb (Himachal Pradesh), Hyderabad (Telangana), Faridabad (Haryana), Sikkim and Vapi (Gujarat).

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 FY24. 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. Its client base differs from product to product and includes direct 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 (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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