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

May 26, 2021

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

Ref:- 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 Ref:- Symbol: VGUARD

Sub: Submission of Investor presentation pursuant to Regulation 30 of SEBI (Listing

Obligations and Disclosures Requirements) Regulations, 2015

Pursuant to Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, we hereby submit the Earnings Presentation on Audited Financial Results of the Company for the quarter and year ended March 31, 2021.

Kindly take the above information on your records.

Thanking You,

For V-Guard Industries Limited

----� Jayasree K Company Secretary

Encl: as stated

V-GUARD INDUSTRIES LTD. Regd. office 42/962, Vennala High School Road, Vennala, Kochi - 682 028. CIN:L31200KL1996PLC010010

P +91 484 433 5000, 200 5000 E mail@vguard.in W www.vguard.in

V-Guard Industries Q4 FY21 Earnings Presentation

Disclaimer

2

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

3

MD’s Message

Key Highlights

Financial Highlights

04

05

6-9

Segment-wise/Geographical Breakup of Revenues

10-12

Annexure

13-15

Managing Director’s Message

4

Commenting on the performance for Q4 FY21, Mr. Mithun Chittilappilly, Managing Director – V-Guard Industries Limited said, “I am pleased to report a very encouraging financial performance by V-Guard in what has been the most challenging period in recent memory for both human and commercial activity. Impact of the pandemic resulted in nationwide and localized lockdowns during a large part of the year, creating widespread uncertainty – with significant bearing on consumer demand as well as product supply chains. In this backdrop, we have achieved broad-based growth across product categories and geographical regions. We have continued to expand distribution presence, while launching several new products and driving greater focus on online engagement with customers. As a result, we saw sharp bounce-back in volumes as the economy opened up in the second half of the year. However, raw material cost inflation has remained a challenge and, while we have been able to mitigate this to a large extent, some near term pressures are likely to continue. We have also focused on tight cost control that has driven operating leverage to the business. The net result was that revenues grew 8.7% in FY21, EBITDA margin expanded by 120 basis points to 11.4% and profit before tax was higher by 16%. Tax rate for the year was higher due to production stoppages at the Sikkim facility where we enjoy tax advantages. Our net cash position increased by Rs. 133 crore, working capital saw further improvement and core ROCE rose significantly to touch 40%.

Q4 performance saw a sharp uptick, continuing on the growth momentum witnessed in Q3. As we enter the new financial year, the country has been hit by a more severe second wave of the pandemic. Extensive lockdowns have been imposed which are likely to cause significant impact on consumer demand during Q1. However, we remain confident that our business, built on the edifice of a strong brand, high-quality products, widespread distribution and deep customer relationships, has the resilience to come back strongly when the situation normalizes from Q2.”

Key Highlights – Q4 FY21

Revenue increased by 58.2% YoY in Q4 FY21

• Q4 FY21 revenue increased by 58.2% YoY to Rs. 849.10 crore • South and Non-South markets witnessed YoY growth of 49.6% and 70.9%, respectively • Non-South markets contributed to 43.7% of total revenue in Q4 FY21 as compared to 40.5% in Q4 FY20 • South markets contributed to 56.3% of total revenue in Q4 FY21 as compared to 59.5% in Q4 FY20

EBITDA and PAT improve

• Gross margins were lower by 190 bps YoY mainly due to raw material cost inflation in recent months • EBITDA margins (excl. other income) at 12.9% as compared to 8.4% in Q4 FY20 • Ad/promotional spends (exclusive of schemes) marginally lower at 1.7% of revenues in Q4 FY21 as compared to 1.9% in Q4 FY20 • Q4 FY21 PAT of Rs. 68.3 crore, increased 110.2%; PAT margin at 8.0% as against 6.1% in Q4 FY20

Strong cash flow generation; robust balance sheet

• Strong CFO generation in FY21 of Rs. 221.8 crore as compared to Rs. 139.4 crore in FY20 • Core ROCE at 40.0%, up from 33.2% over the last 12 months • Net cash of Rs. 271.1 crore on balance sheet as on 31st March 2021, as against Rs. 137.5 crore as on 31st March 2020

Note: Core ROCE is calculated on the basis of capital employed excluding cash

5

5

P&L Snapshot

P&L Statement Particulars

Net Revenue

COGS

Gross Margin

6

Q4 FY21 (Rs. Cr)

Q4 FY20 (Rs. Cr)

Change %

Q3 FY21 (Rs. Cr)

FY21 (Rs. Cr)

FY20 (Rs. Cr)

Change %

849.10 536.63

58.2% 827.41

2,699.00

2,481.96

8.7%

582.24 357.75

62.7% 557.28

1,848.73

1,658.20

11.5%

31.4%

33.3%

-1.9%

32.6%

31.5%

33.2%

-1.7%

EBITDA (excluding other income)

109.93 45.16

143.4%

113.57

306.49

253.27

21.0%

as a % to Net Revenue (NR)

Other Income (including finance income)

12.9%

4.36

8.4%

5.19

4.5%

13.7%

11.4%

10.2%

1.2%

-16.0%

5.42

21.10

23.99

-12.1%

EBITDA after other income

114.29

50.35

127.0% 118.99

327.59

277.26

18.2%

as a % to NR

PBT

as a % to NR

PAT

as a % to NR

13.5%

9.4%

4.1%

14.4%

12.1%

11.2%

1.0%

100.29

42.40

136.5% 108.44

284.67

245.44

16.0%

11.8%

7.9%

3.9%

13.1%

10.5%

9.9%

68.34

32.51

110.2%

77.02

198.98

185.16

0.7%

7.5%

8.0%

6.1%

2.0%

9.3%

7.4%

7.5%

-0.1%

Financial Highlights (Q4 FY21 vs. Q4 FY20)

7

Total Income (Rs. crore)

Gross Profit

849

267

537

179

Key ratios (%)

Gross Margin

58.2%

49.2%

EBITDA Margin (excl. other income)

Q4 FY20

Q4 FY21

Q4 FY20

Q4 FY21

Net Margin

EBITDA (Rs. crore)

PAT (Rs. crore)

Ad & Promotion Exp. (excl. schemes)/ Total Revenues

Employee Cost/ Total Operating Income

110

68

Other Expenditure/ Total Operating Income

45

143.4%

33

110.2%

Q4 FY20

Q4 FY21

Q4 FY20

Q4 FY21

Tax rate

Diluted EPS (Rs.)

Q4 FY21 Q4 FY20

31.4%

12.9%

8.0%

1.7%

6.7%

11.8%

31.9%

1.58

33.3%

8.4%

6.1%

1.9%

8.0%

16.9%

23.3%

0.75

Financial Highlights (FY21 vs. FY20)

8

Total Income (Rs. crore)

2,482

2,699

Gross Profit

824

850

8.7%

3.2%

FY20

FY21

FY20

FY21

EBITDA (Rs. crore)

307

253

PAT (Rs. crore) 199

185

21.0%

7.5%

FY20

FY21

FY20

FY21

Key ratios (%)

Gross Margin

EBITDA Margin (excl other income)

Net Margin

Ad & Promotion Exp. (excl. schemes)/ Total Revenues

Employee Cost/ Total Operating Income

FY21

FY20

31.5%

11.4%

7.4%

1.0%

8.3%

33.2%

10.2%

7.5%

2.3%

8.3%

Other Expenditure/ Total Operating Income

11.8%

14.7%

Tax rate

Diluted EPS (Rs.)

30.1%

24.6%

4.61

4.28

Financial Highlights – Balance Sheet Perspective

Balance Sheet Snapshot (Rs. Cr)

31 March 2021

31 December 2020

31 March 2020

Net Worth

Gross Debt

Current Investments

Cash & Cash Equivalents (inc. bank balance)

Net Cash Position (Rs. crore) Fixed Assets

1,207.8

10.0

0.0

281.1

271.1

373.3

1,133.0

10.0

0.0

492.3

482.3 337.5

993.8

10.0

36.0

111.5

137.5 334.4

Balance Sheet Snapshot (Rs. Cr)

31 March 2021

31 December 2020

31 March 2020

Debtor (days)*

Inventory (days)*

Creditor (days)*

Working Capital Turnover (days)

RoE* (%)

Core RoCE* (%)

52

124

93

83

16.5%

40.0%

42

101

94

48

14.4%

31.8%

47

105

66

86

18.6%

33.2%

Note: *Calculations are on a trailing twelve month basis

Core ROCE is calculated on the basis of capital employed excluding cash.

9

9

Segment-wise Breakup – Q4 FY21 vs. Q4 FY20

10

Segment Revenue

Electronics Electricals Consumer Durables Grand Total

Segment Result

Electronics Electricals Consumer Durables Grand Total

Q4 FY21 (Rs. Cr)

242.8

382.7

223.7

849.1

Q4 FY21 (Rs. Cr)

53.1

43.0

8.9

105.0

Contribution (%)

28.6%

45.1%

26.3%

100.0%

Margin (%)

21.9%

11.2%

4.0%

12.4%

Q4 FY20 (Rs. Cr)

150.3

242.2

144.1

536.6

Q4 FY20 (Rs. Cr)

21.3

19.2

3.5

44.0

Contribution (%)

YoY growth (%)

28.0%

45.1%

26.9%

100.0%

Margin (%)

14.1%

7.9%

2.5%

8.2%

61.5%

58.0%

55.2%

58.2%

YoY growth (%)

149.7%

124.0%

151.4%

138.6%

Electronics – Stabilizers, UPS, Solar Inverters Electricals – Wires, Pumps, Switchgears, Modular Switches Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers

Segment-wise Breakup – FY21 vs. FY20

11

Segment Revenue

Electronics Electricals Consumer Durables Grand Total

Segment Result

Electronics Electricals Consumer Durables Grand Total

FY21 (Rs. Cr) 758.9

1,203.5

736.7

2,699.0

FY21 (Rs. Cr) 144.2

106.5

40.3

290.9

Contribution (%)

28.1%

44.6%

27.3%

100.0%

Margin (%)

19.0%

8.8%

5.5%

10.8%

FY20 (Rs. Cr) 754.5

1,053.0

674.5

2,482.0

FY20 (Rs. Cr) 123.7

81.3

39.9

244.9

Contribution (%)

30.4%

42.4%

27.2%

100.0%

Margin (%)

16.4%

7.7%

5.9%

9.9%

YoY growth (%) 0.6%

14.3%

9.2%

8.7%

YoY growth (%) 16.6%

30.9%

0.8%

18.8%

Electronics – Stabilizers, UPS, Solar Inverters Electricals – Wires, Pumps, Switchgears, Modular Switches Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers

Geographical Breakup of Revenues

12

Region

South

Non-South

Total Revenue

Region

South

Non-South

Total Revenue

Q4 FY21 (Rs. Cr) 477.9

371.1

849.1

FY21 (Rs. Cr) 1,578.3

1,120.7

2,699.0

Contribution (%)

56.3%

43.7%

100%

Contribution (%)

58.5%

41.5%

100.0%

Q4 FY20 (Rs. Cr) 319.4

217.2

536.6

FY20 (Rs. Cr) 1,477.6

1,004.4

2,482.0

Contribution (%)

59.5%

40.5%

100%

Contribution (%)

59.5%

40.5%

100.0%

YoY growth (%) 49.6%

70.9%

58.2%

YoY growth (%) 6.8%

11.6%

8.7%

Market Overview of V-Guard’s Product Portfolio

14

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

15

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 ~ 50% 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 & Roorkee (Uttarakhand), Kala Amb (Himachal Pradesh) 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 42% of total revenues in FY21. 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 31 branches which cover ~40,000+ retailers across the country.

16

For further information, please contact:

Sudarshan Kasturi (Senior VP & CFO)

V-Guard Industries Limited

Tel: +91 484 300 5601

Email: sudarshan.kasturi@vguard.in

Shiv Muttoo / Shruti Joshi

CDR India

Tel: +91 983 355 7572 / +91 750 656 7349

Email: shiv@cdr-india.com / shruti@cdr-india.com

THANK YOU