Compuage Infocom Limited has informed the Exchange regarding Investor Presentation
\USpeed
Reliability Value Performance COMPUAGE INFOCOM LTD
15th November 2019
To, The Corporate Services Dept. BSE Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
Security Code: 532456 ISIN: 1NE070C01037
Dear Sir/ Ma’am,
National Stock Exchange of India Ltd., Exchange Plaza, C-i, Block C, Bandra Kurla Complex, Bandra (E), Mumbai —400 051.
Symbol: COMPINFO
Sub: Investor Presentation
Pursuant Requirements) presentation.
to Regulation
Regulations,
30 of
the SEBI
2015, please find enclosed herewith the
(Listing Obligations and Disclosures investor
This is for your information and records.
Thanking you,
Yours faithfully For Compuage Infocom Ltd.
Disha Shah Company Secretary
Place: Mumbai
End: As above.
0-601/602 & G-6rn/602 Lotus Corporate Pork, Graham Firth Street Compound, Western Express Highway Goregoon (EJ, Mumbor -400063. India. Ph.:+91.22-6711 4444 Fox: +91-22-6711 4445 Fnto@compuagoIndIa.com w,n compuagoindlo .com ON; L99999MH1999PLC1 35914
Enhanced Commitment
Enduring Growth
COMPUAGE INFOCOM LIMITED
Investor Presentation
November 2019
1
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Compuage Infocom Limited (the “Company”),
have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of
the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but 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.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are
individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to,
the performance of the Indian economy and of the economies of various international markets, the performance of the tire industry in India and
world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion,
technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its
exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially
and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking
information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are
not adopted by the Company and the Company is not responsible for such third party statements and projections.
2
Q2 & H1 FY20
Financial Highlights
3
Strong Q2 & H1 FY20 Performance
Stable
YoY
Q2 Revenue
1,288.5 Crores
Up 13%
YoY
Q2 Gross Profit
51.1 Crores
Up 11%
YoY
Q2 EBITDA
26.0 Crores
Up 51%
YoY
Q2 PAT
10.4 Crores
Improving
Improving
H1 ROCE
15.6%* up from
13.5% for FY19
H1 ROE
14.7%* up from
12.8% for FY19
*On Annualised Basis
4
Q2FY20 Consolidated Performance
Revenue
-0.8%
1,298.3
1,288.5
Gross Profit
+13.3%
45.1
51.1
EBITDA
+10.7%
23.5
26.0
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Gross Profit%
EBITDA%
+49 bps
3.48%
3.97%
+ 21 bps
1.81%
2.02%
PAT
+51.5%
10.4
6.9
PAT%
+28 bps
0.81%
0.53%
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
Q2FY19
Q2FY20
All figures in Rs. Crs
5
H1FY20 Consolidated Performance
Revenue
+2.0%
2,171.9
2,214.7
Gross Profit
+8.9%
81.6
88.8
EBITDA
+5.4%
40.5
42.7
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
Gross Profit%
EBITDA%
+25 bps
3.75%
4.01%
+ 6 bps
1.87%
1.93%
PAT
+23.2%
11.9
14.6
PAT%
+11 bps
0.55%
0.66%
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
H1FY19
H1FY20
All figures in Rs. Crs
6
Consolidated Profit & Loss
Profit & Loss Statement (Rs. Crs)
Revenue from Operations
Cost of Goods Sold
Gross Profit
Gross Profit Margin (%)
Employee Expenses
Other Expenses
EBITDA
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Profit before Tax
Tax
Profit After Tax
PAT Margin (%)
Q2FY20
1,288.5
1,237.3
51.1
3.97%
9.3
15.9
26.0
3.8
1.1
28.7
2.22%
15.7
12.9
2.5
10.4
Q2FY19
1,298.3
1,253.2
45.1
3.48%
9.5
12.2
23.5
3.5
1.6
25.4
1.96%
14.6
10.9
4.0
6.9
YoY%
-0.8%
13.3%
QoQ%
39.1%
35.9%
12.7%
50.2%
19.1%
51.5%
96.7%
144.8%
Q1FY20
926.2
888.6
37.6
4.06%
10.3
10.6
16.7
1.81%
3.4
1.1
19.1
2.06%
12.5
6.6
2.3
4.2
0.46%
H1FY20
2,214.7
2,125.9
88.8
4.01%
19.6
26.5
42.7
7.2
2.2
47.7
2.16%
28.2
19.5
4.9
14.6
H1FY19
2,171.9
2,090.3
81.6
3.75%
19.2
21.8
40.5
7.8
2.6
45.7
2.10%
27.3
18.5
6.6
11.9
YoY%
2.0%
8.9%
5.4%
4.4%
5.6%
23.2%
EBITDA Margin (%)
2.02%
1.81%
1.93%
1.87%
10.7%
55.3%
0.81%
0.53%
0.66%
0.55%
7
Consolidated Balance Sheet
ASSETS (Rs.Crs)
Sep-19
Mar-19
EQUITY AND LIABILITIES (Rs.Crs)
Sep-19
Mar-19
Non-Current Assets
Property, Plant & equipment
Intangible Assets
Financial Assets
i) Investments
ii) Other Financial Assets
Total Non-Current Assets
Current Assets
Inventories
Financial Assets
i) Investments
ii) Trade Receivables
iii) Cash and Cash Equivalents
iv) Bank Balances
v)Loans
vi)Other Financial Assets
Current Tax Assests
Other Current Assets
Total Current Assets
51.9
0.0
0.5
-
52.4
313.4
655.7
11.2
81.0
5.6
7.8
3.6
53.9
0.0
0.5
0.0
54.4
301.4
2.5
644.6
44.6
73.4
5.3
7.5
3.8
Equity
Equity Share Capital
Other Equity
Total Equity
Non Current Liabilities
Financial Liabilities
i) Borrowings
Provisions
Deferred Tax Liabilities
Total Non-Current Liabilities
Current Liabilities
i)Borrowings
ii)Trade Payables
iii) Other financial liabilities
Other Current Liabilities
Provisions
23.0
175.8
198.8
18.7
2.3
6.2
27.1
396.1
539.3
41.2
25.0
0.5
13.0
163.8
176.8
22.9
2.3
6.2
31.3
460.3
507.5
39.2
25.6
0.5
97.4
1,175.6
103.6
1,186.8
Total Current Liabilities
1,002.0
1,033.1
Total Assets
1,228.0
1,241.2
Total Equity and Liabilities
1,228.0
1,241.2
8
Cash Flow Statement for Six Months Ended (Rs in Cr)
H1 FY20
H1 FY19
Consolidated Cash Flow
Profit Before Tax
Adjustments for Depreciation and other items
Operating profit before working capital changes
Changes in working capital
Cash generated from operations
Direct taxes paid (net of refund)
Net Cash from Operating Activities
Net Cash from Investing Activities
Net Cash from Financing Activities
Net Change in cash and cash equivalents
14.6
23.2
37.8
15.7
53.5
0.3
53.8
2.0
-89.2
-33.5
18.5
22.1
40.5
-61.8
-21.3
-6.5
-27.8
-12.6
10.9
-29.6
9
About the Company
10
Compuage in a Nutshell
Compuage has evolved into a seamless
distribution intermediary of top of-the-
line technology products and solutions
like PC Components and Peripherals, PCs,
Enterprise Solutions, Cloud Computing,
Mobility Products & Services
Founded in
1987
At Compuage, we are known for performance through partnership and
capabilities to market technological advancements to various customer
segments. We are the partner by choice because of our wide reseller network
that is steered by our superior technical assistance, well-defined go-to-market
strategy and prudent distribution practices
Listing in
2000
Headquarters
Mumbai
Fortune 500 Indian
Company
AT A GLANCE
Revenue
Channel Partners
Rs. 4,515 Crs
3 Year CAGR 13.3%
12,500+
Online & Offline
Channel Partners
Presence
600+
Presence across Indian Cities
through Branch Offices, Service
Centers and Channel Partners
28
Global Brands
28
Warehouses
69
Service Centers
46
Sales Offices
800+
Employees
Global Footprint
7 countries
across SAARC Nations
11
Milestones
Commencement - Reseller
Commencement of business of
Computer Consumables as a
Corporate Reseller
Started Distribution & Got Listed
Global Foot Prints
Forayed into Distribution.
Got listed by merging with a listed entity
Established operations in Singapore
to serve SAARC Region
1987
1995
2001
2006
2012
2017
Regional Offices
Commenced Imports of IT Hardware
and started Regional Sales Offices at
Bangalore, Kolkata and Delhi.
Aggressive reach out Campaign
Completed 30 successful years
Branch expansion continues.
Launched and executed 60 City India
Campaign which showcased our products
to over 6000 Resellers across India
Having 46 sales offices, 28
warehouses, 69 service centers, 28
global brands, 12,500 resellers with
presence in 600 cities & towns
12
Vision & Mission
To be a world class Technology Products and
Services Distribution Company
To deliver superior value to our Customers,
Vendors, Shareholders, Employees and
Society at large
Vision
Mission
Values
✓ Integrity and Fairness
✓ Reliability and Commitment
✓ Teamwork
✓ Respect for All
✓ Excellence
✓ Passion
13
Business Flow
Manufacturer
Distributor
Re-Seller, System Integrator,
Online Channel, Retail
Customer
Our Key Business Activities
Sourcing
Warehousing
Sales
Inventory
Management
Credit
Deployment
14
Association with Renowned Brands
IT Consumer
Enterprise Solutions
Mobility
Cloud Computing
Hardware Services
15
International Reach
Afghanistan
Nepal
Pakistan
Bhutan
Bangladesh
Srilanka
Singapore
Maldives
Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
16
Geographical Presence
Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
17
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Diversifying Risks
IT Consumers
Mobility
Enterprise
Solutions
Cloud
Computing
Hardware
Services
Audio & Video Products
Network Infrastructure
Mobile Accessories
Business Applications
Basic Repairs
Consumables
Components
Peripherals
PCs
Physical Safety &
Security
Power
Security
Software
Smartphones
Tablets
Cloud Management
Online and Onsite
Chip Level Repairs
Support
Swap
Communication &
Collaboration
Services
Infrastructure
Security
Vertical Solutions
No vertical accounts for more than 30% of its revenues
No brand accounts for more than 30% of its business
The Company has successfully entered the Cloud segment to offer several Cloud –based offerings which will be the next growth engine
18
Advantage - Compuage
Product Portfolio
Strong product portfolio based on in-depth expertise and
strong domain knowledge which drives cross sales enhancing
sales volumes
Partner Bonding
Customer Satisfaction
Wide spread distribution network, regular promotional
programmes to maintain partner interest & help
partners with accelerator tools to boost sales
Strong pre & post sales support and efficient supply
chain management
Market Leadership
Emerged as one of the leading IT and Mobility
products and services provider in India
Value
Creators
Technology Developments
Continuous and strategic investments in technology
upgradation across all businesses for efficient operation
& better productivity
19
Board of Directors
Bhavesh Mehta
Director & COO
G.S. Ganesh
Independent Director
Atul Mehta
Chairman & Managing
Director
B.Com and M.Com with specialization in
Marketing. Associated with the Company since
two decades with expertise in sales and
marketing
A Chartered Accountant by qualification and
Investment Banker by profession with experience
of 30+ years. His areas of expertise include,
Financial Restructuring, Mergers and Acquisitions
and Project Financing
B.Com and MBA in Finance from USA.
Founder Member of the Company with focus on
Strategic Planning and Financial Management
Vijay Agarwal
Independent Director
Fatima Nasab
Independent Director
M.Com and Chartered Accountant by
qualification. He has been in practice for more
Expert in Human Behaviour
than 30+ years
20
Management Team
Atul Mehta
Chairman & M.D.
Bhavesh Mehta
Director & COO
Sunil Mehta
Director & CFO
Deepak Karia
Vice President Sales
Nehal Sharma
Associate VP Sales
A Chartered Accountant by profession with
experience of over 2 decades. He is in-charge of
the Company’s financial management, financial
analysis & planning
Responsible for Mobility division and Value sales
by effectively extending the Company’s offerings
by pushing growth across markets
Responsible for driving sales with a focus on
growing the Company’s IT revenue across all
channels
Shreyas Vyas
Head IT
Sagar Abraham
Head Services
Dilip Darji
Head Accounts
With over 25 years of working knowledge, he
sets measurable short and long-term goals for
the team and is responsible for efficient project
management and IT vendor management
With almost 3 decades of experience, established
service business with next-gen services and
integrated client centric delivery models
With 2 decades of experience, responsible for
Accounts and Finance, Systems & Processes, MIS
and Automation
21
Awards & Accolades
HP Envisage National Distribution Meet
Consumer Notebook - Best Distributor YOY Notebook
Cisco Start Award - Best Adoption Award
Lenovo - T1 Business Experts Award
Consumer Printer - Best Distributor - Modern Retail –
Hanwha Techwin - Highest Growth
HP Supplies Best Individual Contributor - Alternate Pipe –
2017
Growth
2017
2017
2018
Tyco Elite League Award
ACVS Partner of the year
Achievement Award
Commscope Distributors Meet
Best AMP Net Connect Distributor Award
Best Managed Distributor Award
Asus Distributors Meet
Best Sales Team Award
Best Distributor Award
Distributor of the year award – Tyco
Cisco Best Performer
LG Best Performer
Samsung security surveillance best
partnership award
2019
Digital Terminal – Channel’s Favourite Distributor
HP Distributors Meet
Best Distributor Convertible Notebooks
Best Distributor CISS Print & Supplies
Cisco Distribution Partner of the Year FY18
Cisco Bulls Eye Scheme Award
Commscope
Best National Distributor - AMP Net Connect Enterprise
Network Business SAARC
100 Cr plus business Achiever
Significant contributor – Systimax Enterprise Business
Network SAARC
Distributor Employee Appreciation
Hanwha Techwin ACVS Partner of the year
Asus
Asus Leadership Award
Asus Champion of the year award
SanDisk Premier League
Best Market Expansion Award
22
Strategy
Brand Acquisitions
its channel partners.
Adding product lines that would enable Compuage offer a complete basket of products to
Penetrating Untapped Geographies
To be present across the metro cities as well as tier II and tier III cities
Penetrate across underserved geographies of the nation to help drive volume for the
distribution intermediaries
Diversified Sales Channels
Serving important link between channel partner and end customer
To be present across all forms of channels across the country
•
•
•
•
•
Enhance Service Offerings
•
Hardware Services and Technical Support - Pre and Post Sales
Target
•
•
•
Revenue of US$1 billion in 3 years
2X Profitability
Penetrate 15000 Partners in 800 cities in 3 years.
23
23
Historical Financials
24
Consolidated Financial Highlights
Revenue
Gross Profit
+13.3%
4,514.8
4,074.4
3,551.3
3,107.3
+16.6%
142.5
171.9
108.5
123.3
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
EBITDA
+14.5%
77.0
69.6
51.4
57.0
PAT
+15.0%
22.7
20.3
17.5
14.9
All Nos. in Rs. Crs.
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
25
Consolidated Financial Highlights
Gross Profit Margins
EBITDA Margins
PAT Margins
3.49%
3.47%
3.50%
3.81%
1.65%
1.61% 1.71%
1.71%
0.48%
0.49%
0.50%
0.52%
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
ROCE
ROE
EBITDA
Dividend % on FV
16.1%
14.0%
14.6%
13.5%
13.5%
14.0%
14.3%
12.8%
20%
20%
20%
20%
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
26
Working Capital Cycle
Debtor Days
52
52
47
Inventory Days
On Consolidated basis
34
30
26
24
33
31
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
Creditor Days
Working Capital Cycle
48
45
41
32
33
33
35
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
27
Consolidated Profit & Loss Statement
Profit & Loss Statement (Rs. Crs)
Revenue from Operations
Cost of Goods Sold
Gross Profit
Gross Profit Margin (%)
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Profit before Tax
Tax
Profit After Tax
PAT Margin (%)
FY16
3,107
2,999
109
3.5%
26
31
51
10
5
57
34
22
7
15
FY17
3,551
3,428
123
3.5%
33
33
57
19
4
73
45
28
10
17
FY18
4,074
3,932
143
3.5%
38
35
70
15
3
81
49
32
11
20
1.7%
1.6%
1.7%
1.7%
1.8%
2.0%
2.0%
2.0%
FY19
4,515
4,343
172
3.8%
44
51
77
17
4
89
54
35
12
23
0.5%
0.5%
0.5%
0.5%
28
Consolidated Balance Sheet
ASSETS (Rs.Crs)
FY16
FY17
FY18
FY19
EQUITY AND LIABILITIES (Rs.Crs)
FY16
FY17
FY18
FY19
Non-Current Assets
Property, Plant & equipment
Intangible Assets
Financial Assets
i) Investments
ii) Other Financial Assets
Total Non-Current Assets
Current Assets
Inventories
Financial Assets
i) Investments
ii) Trade Receivables
iii) Cash and Cash Equivalents
iv) Bank Balances
v)Loans
vi)Other Financial Assets
Current Tax Assests
Other Current Assets
Total Current Assets
43.6
-
0.3
0.5
44.5
2.5
281.8
35.9
59.0
6.2
2.2
-
25.3
667.3
43.2
-
0.3
0.5
44.1
2.5
455.7
37.1
65.1
6.3
1.4
-
24.1
927.0
44.0
0.1
0.3
0.0
44.4
2.6
577.5
46.4
75.6
4.9
8.4
2.1
53.9
0.0
0.5
0.0
54.4
2.5
644.6
44.6
73.4
5.3
7.5
3.8
Equity
Equity Share Capital
Other Equity
Total Equity
Non Current Liabilities
Financial Liabilities
i) Borrowings
Provisions
Total Non-Current Liabilities
Current Liabilities
i)Borrowings
ii)Trade Payables
iii) Other financial liabilities
Other Current Liabilities
Provisions
254.3
334.9
292.6
301.4
Deferred Tax Liabilities
11.7
98.6
110.3
11.7
113.1
124.9
11.7
130.6
142.4
13.0
163.8
176.8
-
-
5.7
5.7
293.0
263.2
14.5
24.0
0.1
1.0
17.7
-
6.1
23.8
306.8
465.1
27.7
22.4
0.1
0.2
13.7
-
6.2
19.9
400.7
504.6
26.9
28.8
0.1
-
22.9
2.3
6.2
31.3
460.3
507.5
39.2
25.6
0.5
-
68.7
1,078.8
103.6
1,186.8
Current Tax Liabilities
Total Current Liabilities
595.7
822.4
961.0
1,033.1
Total Assets
711.8
971.1
1,123.3
1,241.2
Total Equity and Liabilities
711.8
971.1
1,123.3
1,241.2
29
For further information, please contact:
Company :
Investor Relations Advisors :
Compuage Infocom Ltd.
CIN – L99999MH1999PLC135914
Strategic Growth Advisors Pvt. Ltd.
CIN - U74140MH2010PTC204285
Ms. Disha Shah
Ms. Ami Parekh / Mr. Shrenik Shah
Email Id – disha.shah@compuageindia.com
ami.parekh@sgapl.net / shrenik.shah@sgapl.net
+91 80824 66052 / +91 96647 64465
www.compuageindia.com
www.sgapl.net
30