Announcement under Regulation 30 (LODR)-Investor Presentation

Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, please note that the management of the Company would be meeting with the following research and fund houses over 25th and 26th August 2022: Name of Research/Fund Houses Edelweiss Wealth Anand Rathi Philip Capital PMS Edelweiss Entrust Emkay Global JM Financial ICICI Direct Reliance Securities Phillip Capital B&K Securities ....

about 1 month ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 23
  • Well entrenched distribution network supported by strong and efficient manufacturing and sourcing capabilities 100%

  • Our Approach  Harnessing distinct distribution  Several successful launches at networks to market newer products regular intervals to cater to the

  • Introduce and cross-selling burgeoning needs of the customers  Expansive distribution reach across  Strong R&D capabilities help in innovative all segments, enabling us to service introducing an innovative range of products

  •  Strong connect with trade partners enables a deeper understanding of customer preferences  Emphasis on further improving capital return ratios in the long term  Completely integrated player: High quality, versatile manufacturing and  Differentiated product mix supported sourcing combined with robust Capital efficient model by intelligent marketing and branding supply chain ensures efficient campaigns delivery of a wide range of quality

  •  Scaling up presence in fast growing products streams Plastic pipes and fittings segment 5

  •  Sanitaryware and Faucets continued to deliver industry- leading growth performance, led by Revenue

  • o New product launches including marquee products  102% YoY such as Easy Clean and Ellipse o Expanded distribution network, added 75+ new 550.0 535.0 distributors 265.3  Financial performance underscores continued strong customer preference

  • o Revenue higher by 102% Y-o-Y to ₹535 crore Q1FY22 Q4FY22 Q1FY23

  • This increase due to a stressed macro 42.7 environment erased gains derived from commencement of 15.0 10.4% 8.0% manufacturing operations post acquisition of the Building Products division of AGI Greenpac Limited 5.7% 

  • Undertook calibrated price hikes to offset the impact of Q1FY22 Q4FY22 Q1FY23 higher input prices in coming quarters

  • Q1 FY23 – Plastic Pipes & Fittings Business Update  Delivered encouraging growth of 97% Y-o-Y with revenue at ₹171 crore; Continues to be the fastest growing plastic pipes brand in India

  • o Rising brand awareness and superior product quality remain the driving forces behind higher sales, volumes, and market share o

  • o Additional 200 + SKU’s introduced o Strong market demand for overhead water storage tanks  Towards enhancing reach and market access, a new manufacturing facility is being set up in Roorkee, Uttarakhand.

  • Q1 FY23 – Consumer Appliances Business Update  Strong product and brand salience helps reduce impact of highly inflationary environment that has affected demand sentiment

  • o Revenue grew 93% to ₹128 crore, higher growth rate also attributable to low base in Q1 FY22 o EBIT came in at ₹2.2 crore  Undertook price hikes to help combat impact of stubborn input prices; EBIT margins for the quarter improved to 2% for the quarter  Continued focus on new product introductions: 5 new models with over 13 SKUs launched across product categories in Q1 FY23 12

  • Q1 FY23 – Retail Business Update  Delivered steady performance in the quarter despite margin constraints o Revenue stood at ₹14 crore, registering a growth of 48% Y-o-Y

  • o EBIT remained flattish and came in at ₹0.12 crore translating into an EBIT margin of 1%  Improved strategy to highlight franchises & online retail through owned websites like www.evok.in and other e-commerce platforms in order to sustain profitability  EVOK has improved its omni-channel presence owing to an approach comprising online shopping and EVOK franchise stores nationwide.

  • Breakthrough achieved in the Project segment - made one office for a large PSU Revenue EBIT Margin (%)  48% YoY 1.3 ) 0.1 e r 15.0 -1.0 o 14.0 r c 9.5 8.6% n i ₹ -10.5% 0.9% ( Q1FY22 Q4FY22

  • Bathware  Leading player in sanitaryware & faucets segments o Brands available across price points  Expanded our reach in the Indian tiles market, with plans to expand the network further  Control over entire value chain and strong network of distribution and service

  • o Establish Hindware as a modern, innovative, design-led brand to connect with millennials o Increased brand salience at retail (product displays and refreshed in- shop imagery) o Expand the distribution reach to establish a truly pan-India presence

  • Plastic Pipes & Fittings  TRUFLO by Hindware, is the fastest growing plastic pipes and fittings brand in India

  • o Room Heaters o Kitchen & Furniture fittings (brand FGV Powered by Hindware, a #6 strategic tie-up with Italian company Formenti & Giovenzana)  Strong Distribution reach Player in the Water Heater Segment* o 13,000+ Retail outlets (50:50 JV with Groupe o 1,400+ Distributors, dealers and modern & large retail outlets Atlantic) o 150+ Exclusive Kitchen galleries *Source GFK Report, March 2020

  • o Focus on on-line retail channels in terms of developing new Products, Build on Hyper Local Initiative  Emphasis on minimising overheads; higher profitability – move from Cash burn to Cash earn  Collaboration with Dalmia Group (Hippo Store) as SIS operation, First SIS open in Noida

Negative 2
  • The change may happen due to exigencies on the part of the Analyst/Institutional Investor/Company.

  •  Polymer prices decreased ~14%-16% in Q1 FY23 while Fuel & Power increased by 10%-12% leading to impact on Pipes & Fittings margins

Mentioned Phrases & Organizations

Important keywords detected (20+)

presentation (18)
business (18)
products (18)
pipes (17)
retail (16)
hindware (15)
margin (14)
crore (13)
information (12)
distribution (12)
yoy (12)
home (11)
innovation (11)
appliances (11)
building (11)
brand (11)
water (11)
india (10)
performance (10)
market (10)

Organizations identified (10+)

Groupe Atlantic (3)
AGI Greenpac Limited (3)
HSIL Limited (3)
Hindware Limited (3)
Working Capital (3)
EVOK (2)
Hindware (2)
TRUFLO (2)
NEAPS (1)
HINDWAREAP (1)

Tables extracted (1)

Name of Research/Fund Houses
Edelweiss WealthAnand Rathi
Philip Capital PMSEdelweiss
EntrustEmkay Global
JM FinancialICICI Direct
Reliance SecuritiesPhillip Capital
B&K SecuritiesAntique Stockbroking
DSP Investment ManagersSunidhi Securities
Monarch Networth CapitalDhanki Securities
MK VenturesDolat Capital
AlfAccurate AdvisorsBOB Capital
Equity Intelligence IndiaIDBI Capital
Lucky Investment ManagersSharekhan

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