Compuage Infocom Limited has informed the Exchange regarding Investor PresentationPursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please fin...
\U Speed 41J Reliability \X1 Value Performance COMPUAGE INFOCOM LTD
15t February 2020
To, The Corporate Services Dept. BSE Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
Security Code: 532456 ISIN: 1ME070C01037
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
to Regulation 30 of
(Listing Obligations and Disclosures Pursuant Requirements) Regulations, 2015, please find enclosed herewith the February 2020 Investor Presentation for Q3 & 9M Fl 20.
the SEBI
This is for your information and records.
Thanking you,
Yours faithfully For Compuage Infocom Limited
Ruchita Shah Company Secretary
Place: Mumbai
End: As above.
D’601j602 & G-eO1/602 Lotus Corporate Part Graham Flh Street Compout Western Express Highway. Goregoan (E), Mumbal 4OGO63 India. Ph.;+91-22-6711 4444 Fax:+91-22-671 1 4445 Into@compuageindlacom vnn,compuageindlacom ON: L99999MH19c9PLc135914
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Enhanced Commitment
Enduring Growth
COMPUAGE INFOCOM LIMITED Investor Presentation February 2020
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
Q3 & 9M FY20 Financial Highlights
3
New Partnerships
Service Agreement with HP
Signed a service agreement with HP to provide after-market support for their printers, PC Commercials & notebooks; this is for Mumbai market to begin with
Joining hands with GOQii
Tie up with GOQii, the smart-tech enabled preventive healthcare platform for their range of healthcare & fitness devices for Pan- India distribution
The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
4
Steady Q3 & 9M FY20 Performance
Down 7% YoY
Q3 Revenue 974.4 Crores
Stable YoY
Q3 Gross Profit 39.5 Crores
Stable YoY
Q3 EBITDA 18.2 Crores
Up 11% YoY
Q3 PAT 5.4 Crores
Improving
H1 ROCE 15.6%* up from 13.5% for FY19
Improving
H1 ROE 14.7%* up from 12.8% for FY19
*On Annualised Basis
5
Q3FY20 Consolidated Performance
Revenue
-7.1%
1,048.5
974.4
Gross Profit
-0.7%
39.8
39.5
EBITDA
+0.1%
PAT
+11.1%
18.2
18.2
4.9
5.4
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Gross Profit%
EBITDA%
+26 bps
3.80%
4.06%
+ 13 bps
1.74%
1.87%
PAT%
+9 bps
0.47%
0.56%
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
Q3FY19
Q3FY20
All figures in Rs. Crs
6
9MFY20 Consolidated Performance
Revenue
Gross Profit
-1.0%
3,220.3
3,189.1
+5.7%
121.4
128.3
EBITDA
+3.7%
58.7
60.9
PAT
+19.6%
16.8
20.1
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
Gross Profit%
EBITDA%
+25 bps
3.77%
4.02%
+ 9 bps
1.82%
1.91%
PAT%
+11 bps
0.52%
0.63%
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
9MFY19
9MFY20
All figures in Rs. Crs
7
Consolidated Profit & Loss
Profit & Loss Statement (Rs. Crs)
Q3FY20
Revenue from Operations
Cost of Goods Sold
Gross Profit
Gross Profit Margin (%)
Employee Expenses
Other Expenses
EBITDA
974.4
934.9
39.5
4.06%
9.3
11.9
18.2
Q3FY19
1,048.5
1,008.6
39.8
3.80%
9.9
11.7
18.2
EBITDA Margin (%)
1.87%
1.74%
Other Income
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Profit before Tax
Tax
Profit After Tax
PAT Margin (%)
4.5
1.1
21.7
2.23%
14.5
7.2
1.8
5.4
4.7
1.6
21.3
2.03%
13.5
7.7
2.8
4.9
0.56%
0.47%
YoY%
-7.1%
-0.7%
0.1%
2.2%
-6.2%
11.1%
Q2FY20
1,288.5
1,237.3
51.1
3.97%
9.3
15.9
26.0
2.02%
3.8
1.1
28.7
2.22%
15.7
12.9
2.5
10.4
0.81%
QoQ%
-24.4%
-22.7%
-29.8%
-24.2%
-43.9%
-47.6%
9MFY20
9MFY19
3,189.1
3,060.8
128.3
4.02%
28.9
38.4
60.9
3,220.3
3,099.0
121.4
3.77%
29.1
33.6
58.7
1.91%
1.82%
11.8
3.2
69.5
12.4
4.2
67.0
2.18%
2.08%
42.7
26.7
6.7
20.1
40.8
26.2
9.4
16.8
0.63%
0.52%
YoY%
-1.0%
5.7%
3.7%
3.7%
2.1%
19.6%
8
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
53.9 0.0
0.5
0.0 54.4
313.4
301.4
655.7 11.2 81.0 5.6 7.8 3.6 97.4 1,175.6
2.5 644.6 44.6 73.4 5.3 7.5 3.8 103.6 1,186.8
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
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
9
About the Company
10
Compuage in a Nutshell
AT A GLANCE
Revenue
Channel Partners
Presence
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
Rs. 4,515 Crs 3 Year CAGR 13.3%
12,500+ Online & Offline Channel Partners
600+ Presence across Indian Cities through Branch Offices, Service Centers and Channel Partners
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
29 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, 29 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
Inventory Management
Sales
Credit Deployment
14
Association with Renowned Brands
IT Consumer
Enterprise Solutions
Mobility
Cloud Computing
Hardware Services
The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
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
Diversifying Risks
s e s s e n i s u B 5
s l
a c i t r e V e c i v r e S &
t c u d o r P
IT Consumers
Enterprise Solutions
Mobility
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
Communication & Collaboration
Cloud Management Services
Chip Level Repairs
Online and Onsite Support
Infrastructure
Swap
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 than 30+ years
Expert in Human Behaviour
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
2017
HP Envisage National Distribution Meet Consumer Notebook - Best Distributor YOY Notebook Growth Consumer Printer - Best Distributor - Modern Retail – 2017 HP Supplies Best Individual Contributor - Alternate Pipe – 2017
Distributor of the year award – Tyco
Cisco Best Performer
LG Best Performer
Samsung security surveillance best
partnership award
2018
Tyco Elite League Award ACVS Partner of the year
Cisco Start Award - Best Adoption Award
Lenovo - T1 Business Experts Award
Hanwha Techwin - Highest Growth 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
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 •
Adding product lines that would enable Compuage offer a complete basket of products to its channel partners.
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
+13.3%
4,514.8
4,074.4
3,551.3
3,107.3
Gross Profit
+16.6%
171.9
108.5
123.3
142.5
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
Inventory Days
On Consolidated basis
52
52
47
33
34
30
26
24
FY16
FY17
FY18
FY19
FY16
FY17
FY18
FY19
Creditor Days
Working Capital Cycle
48
45
41
31
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
1.7%
10
5
57
1.8%
34
22
7
15
0.5%
FY17
3,551
3,428
123
3.5%
33
33
57
1.6%
19
4
73
2.0%
45
28
10
17
0.5%
FY18
4,074
3,932
143
3.5%
38
35
70
1.7%
15
3
81
2.0%
49
32
11
20
0.5%
FY19
4,515
4,343
172
3.8%
44
51
77
1.7%
17
4
89
2.0%
54
35
12
23
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
43.2 -
0.3 0.5 44.1
44.0 0.1
0.3 0.0 44.4
53.9 0.0
0.5 0.0 54.4
254.3
334.9
292.6
301.4
2.5 281.8 35.9 59.0 6.2 2.2 - 25.3 667.3
2.5 455.7 37.1 65.1 6.3 1.4 - 24.1 927.0
2.6 577.5 46.4 75.6 4.9 8.4 2.1 68.7 1,078.8
2.5 644.6 44.6 73.4 5.3 7.5 3.8 103.6 1,186.8
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 Current Tax Liabilities Total Current 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 1.0 595.7
17.7 - 6.1 23.8
306.8 465.1 27.7 22.4 0.1 0.2 822.4
13.7 - 6.2 19.9
400.7 504.6 26.9 28.8 0.1 - 961.0
22.9 2.3 6.2 31.3
460.3 507.5 39.2 25.6 0.5 - 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
Programming Growth: VERSION 2.0
COMPUAGE 1.0
COMPUAGE 2.0
✓ From sole IT Consumer Distributor to IT
Consumer, IT Enterprise and Mobility Products Distributor
Transform to a Products, Cloud & Services Organization (Cloud & Services to be > 10% of Revenue)
EBITDA Accretive Business
Higher Net Profits
✓ From a Single brand portfolio to 29 Global
Brands in portfolio
✓ Focus on addition of Global Brands
Distribution Strength: ✓ 12,500+ Channel Partners ✓ 600+ presence across Indian Cities
Distribution Strengths – 3 Year Plan: ✓ 15,000+ Channel Partners ✓ 800+ presence across Indian Cities
✓ FY19 Revenue : Rs. 4,515 Crores
✓ 3 Year Target Revenue : Rs.7,000 Crores
30
For further information, please contact:
Company :
Investor Relations Advisors :
Compuage Infocom Ltd. CIN – L99999MH1999PLC135914
Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285
Ms. Ruchita Shah Email Id – ruchita.shah@compuageindia.com
www.compuageindia.com
Ms. Ami Parekh / Mr. Shrenik Shah ami.parekh@sgapl.net / shrenik.shah@sgapl.net +91 80824 66052 / +91 96647 64465
www.sgapl.net
31