butterfly gandhimathi appliances limited...2012 2015 2018 ·preferential issue to. bagged the tncsc...
TRANSCRIPT
BUTTERFLY GANDHIMATHI APPLIANCES LIMITED
February 11, 2019
General Manager - DCS,Dept. of Corporate Services,BSE Ltd,Floor I, P.J.Towers,Dalal Street,Mumbai - 400 001Scrip: 517421
Manager,National Stock Exchange of India LtdExchange Plaza,BandraKurla Complex,Bandra (E),Mumbai - 400051Scrip: BUTTERFLY
Dear Sir,
Butterfly Gandhimathi Appliances Limited - Results presentationfor the third quarter ended on 31.12.2018
Enclosed please find the Company's Performance/Results presentation for the thirdquarter ended on 31.12.2018, which may please be uploaded on the website forinformation of our investors.
Thanking you,
Yours faithfully,For Butterfly Gandhimathi Appliances Limited
( .. '1. t\c,,-.A_.:.\..-v~J~(,~·i,-~jt/v,Company Secretary &General Manager (Legal)
Regd. Office. 143. Pudupakkarn V:ila~le. Vandalur - KeiarntJakkarn Hoao Kelan:tJa~.kanl 603 103. Kancneeouram District.Phone' +91-44-474! 5500 CIN No. L28931TN1986FLC012728E·mall : gmal:Ci>butterf!yindia.com Web www.buttorttvrnrna.com
Corporate Office' E-34. II Floor. Rajiv GilncJhl Salai, Egattur Villa~le. Navatur . GOO 130. Kancheepurarn District.Phone. 044 ,lgOO 5100. 5154 E·mail . buttPriiyilo:{l'l:>utterfIYlndla.com
Safe Harbour
Certain statements in this presentation concerning our future growth prospects are forward
looking statements, which involve a number of risks and uncertainties that could cause actual
results to differ materially from those in such forward-looking statements. The risks and
uncertainties relating to these statements include, but are not limited to, fluctuations in earnings,
our ability to managegrowth, competitive intensity in our industry of operations including those
factors which may affect our cost advantage, wage increases, our ability to attract and retain
highly skilled professionals, sufficient availability of raw materials, our ability to successfully
complete and integrate potential acquisitions, liability for damages on our contracts to supply
products, the successof the companies in which Butterfly Gandhimathi Appliances Ltd has made
strategic investments, withdrawal of governmental fiscal incentives, political instability, legal
restrictions on raising capital or acquiring companies outside India, and unauthorized use of our
intellectual property and general economic conditions affecting our industry. Butterfly
Gandhimathi Appliances Ltd may, from time to time, make additional written and oral forward-
looking statements, including our reports to shareholders. The Company does not undertake to
update any forward-looking statement that may be made from time to time by or on behalf of the
company
. . 4Butterll~
Contents
e Company Overview
o New Products Launched FYl 9
8 Financial Overview
o Q3 FY19 Operating Performance & Highlights
8 Outlook
. . 4Butterll~
About Us..
Leading manufacturer of Kitchen and Electrical Appliances
Market Leader in India for SS LPG Stoves & Table Top Wet Grinders and major supplier of Mixer Grinders &Pressure Cookers
The 'Butterfly' brand is a highly respected brand synonymous with quality
Established in 1986 by Shri V. Murugesa Chettiar - currently helmed by 2nd and 3rd generation of promoterfamily
Headquartered in Tamil Nadu with Pan India presence
Strong R&D focus which has led to several pioneering initiatives and continues to drive in-housedevelopment of new products
4Butterll~
Quick Facts
IN THE TOP
IN INDIAFOR SS LPG STOVES
& TABLE TOP WET GRINDERS
BRANDEDREVENUE CAGR
FY10-18
IN INDIA FOR DOMESTICKITCHEN APPLIANCES
PRESENCE IN ALLSALES OF BRANDEDPRODUCTS IN FYl 8
STATES IN INDIA CRORE
EXCLUSIVEDISTRIBUTORS ACROSS
INDIA
NET DEBT / EQUITYRATIO
REVEN UE GROWTHOVER FY18
OF FY18REVENUES FROM NON-SOUTH
STATES
. . 4Butterll~
Growth Levers
Initiatives
Wider Product Offering
Geographical Expansion
Premium Products
Capacity Expansion
Impact
o Fresh growth avenues in existing markets
o Accelerated growth opportunity in new markets
o Addressable market increases manifold
o Wider National footprint
o Expansion in blended margins
o Attracts new categories of customers
o Poised to address growth in demand arisingfrom selling & marketing initiatives andgeographic expansion
4Butterll~
Overview Milestones
• FirsttoLaunchStainless SteelVacuum Flasksin India
• Launched MixerGrinders
• Year ofIncorporation
• Importedmachinery to setup manufacturingoperations
• First to launchStainless SteelPressure Cookersin India
• Launched LPGStoves
• Launched 4 new • First in India. Bagged the first Product to be awarded. First in India to TNCSC order of Rs. Categories "BEELabelbe awarded ISO 285 crore for • Added 60 SKUs to with 2 star9000 manufacturing of product range rating" forcertification for Table Top Wet • Enhanced Pan- manufactureits LPGStoves Grinder and Mixer India presence to of LPGstovesand Mixer Grinders - Highest in include all 28 • SuccessfulGrinders the organized sector states completion of. Launched . Awarded ISO· Name changed to • Acquired a both TNCSCproprietary 3 9000 Butterfly Gandhimathi division from andconical stone certification Appliances Ltd from Associate Pondicherrygrinding for Table Top Gandhimathi Company LLM Co-op. Listed on BSE technology Wet Grinder Appliances Ltd Appliances Wholesale
Stores orders
• Invented BrazingMachine with In-house Technologywhich replacedthe hazardouscopper platingprocess forPressureCooker/Utensils -successfulindigenoussubstitution forimportedtechnology
1998• Awarded
patent for3 conicalstone TableTop WetGrinder
• Commencedexports toUSA, UK,Canada,Mauritius,Australia &Japan
2002
• First in Indiato receive"GREENLABEL"Certificationfor highthermalefficient LPGStoves
2011 2014
2012 2015 2018· Preferential Issue to . Bagged the TNCSC • Re-Launch of
Reliance PE- raised Rs. order for the 4th Stainless100 crore of growth consecutive year - Steel Vacuumcapital latest order Flasks
· Net sales crossed Rs. amounting to Rs. • Registered500 crore - growth of 510 crore for with140% over the previous manufacturing of Alternatefiscal TTWGs Channel like. Won order for Rs. Canteen· Established a branch 90 crores fromoffice in the United Stores Dept
Kingdom to overseePondicherry Co-op (CSD)." TN PC
and promote exportsWholesale Stores (Tamilnadu
in the regionto supply TTWGs Policeand mixer grinders Cateen),
Online etc
4Butterll~
Revenue Profile
II :1 (, Annual Net Revenue (Rs. crore)
900
Revenue Excluding ExciseDuty / CST
725 764
502529 537
402
244
FYll FY12 FY13 FY14 FY15 FY16
• Branded Sales • Govt OrderFY17 FY18
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Branded Retail Sales
Branded Net Sales (Rs. crore)
398 461330
537
FYll FYl 2 FYl 3 FYl 4 FYl 5 FYl 6 FYl 7 FYl 8
Branded Product Distribution (96)
6%
Kitchen Appliances Cooker/Cookware Others
.Through Institutions I
. Tie ups with Gas dealers of IOCl, BPCl and HPCl
. Customers for new gas connection are provided with co-branded products manufactured by BGMAl
Through Retail Marketing•
· Network of 550+ exclusive distributors· Distributors supply to dealer network which is customerfacing
· Tie-up with Modern Trade, CSD, CPC,TNPC etc.· 22000+ retail points across the Indian map
Region-wise Break-up
4%
FY13 FY14 FY15 FY16 FY17 FY18IiiiISouth Non-South
4Butterll~. .
Augmenting Organic Growth
Increased Product Categories ForWider Product Portfolio And Higher Market Share
Product Categories (Nos.) SKUs (Nos.)619 651
500 552 554020+ 20+ 20+ 20+ 20+ 0 0 0
0 0 0 0 250 250 320 06 6 6 0 0 00 0
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Enhancing Sales and Marketing Efficiency For Better Penetration And Brand Development
Sales Team (Personnel)
425 359240 0 310 260 300
180 180 0 0 0 00 0 0
2011 2012 2013 2014 2015 2016 2017 2018
Marketing Spend (Rs. Cr)68 5849 49 57**46 37 0 00 016 0
02011 2012 2013 2014 2015 2016 2017 2018
** Including Rs.3 Cr spent on newchannels
4Butterll~. .
Prod uct Portfol io
Every product exhibits the highest standards in Safety, Durability, Efficiency, Aesthetics & Reliability
LPG Stove
Pressure Cooker
Juicer Mixer Grinder
Mixer Grinder
Non Stick Cookware
Electric Kettle
Table TopWet Grinder
Induction Cooktop
Sandwich Maker
Electric Chimney
Electric Rice Cooker
Air Cooler
4Butterll~. .
Prod uct Portfol io
Juicer
Electric Iron
Other Pioneering Products
Hand Blender
Vacuum Flasks
I ' 4Butterll~. .
Pop-up Toaster
NEW PRODUCT LAUNCHES during FY 2018-19LPG Stoves / Mixer Grinder / Table Top Wet Grinder
Cu rve 2B 55 LPG Stove
Cyclone Mixergrinder 3J
Mixer Grinder - Tulip - 4J 750 w
Pebble MixerGrinder - 750 W Wet Grinder -
Rhino 2.0 - Redand White
Drk:lJ@[ffiil&)@]@
Wet Grinder -Rhino 2 Itr -
Blue
I . 4Butterll~. .
NEW PRODUCT LAUNCHES - Non-Stick Cookware Items
Matchless - Sauce Pan with GlassLid - 250 mm
Matchless - Handi Gold - 2.5 Itr
Matchless-Casserole 250 mm Matchless Gold Fry Pan 240 mmwith Glass Lid
Matchless - Kadai with Glass Lid Matchless - Omni Tawa 280 mm240 mm
4Butterll~. .
NEW PRODUCT LAUNCHES - Electric Chimney and Power Hob
Electric Chimney Fortis 60 Electric Chimney Fusion 60 Electric Chimney Aura 60 Electric ChimneySleek 60 Black
Electric ChimneyMatchless + 90 and 60
Electric ChimneyCurve + 90 and 60 Turbo 2.0 Power Hob
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NEW PRODUCT LAUNCHES - Hand Blender and Hand Mixers
Hand Blender - HPB-l 7
\4-KEY FEATURES \/
~ Full stain lass~steelbOdY
@ErgonomlCallYdesigned to hold withcomfort while In use®2-speed setting
Hand Mixer - Swril 400
KEY FEATURES
Aestheticallydesigned ASS body
~ Multi-recipe support~~ with 5-speed control
with turbo speed
One-yearwarranty
HBE17 IHand Blender - HBE- 17
200 WATTS
Hand Mixer Jazz 300
••KEY FEATURES
Aestheticallydesigned ASS body
~ Multi-recipe support~~ with s-soeed control
with turbo speed
One-yearwarranty
~KEY FEATURES\'
@ Full ABS body
@ErgOnOmIC.,IIY designedto hold with comfortwhile in use
® 2-speed setting
Hand Mixer Swing 300
SWING300 WATTS
KEY FEATURES
Aestheticallydesigned ASS body
~ Multi-recipe support~;!J with 5-speed control~ with turbo speed
One-yearwarranty
4Butterll~
NEW PRODUCT LAUNCHES - SliceToasters, Sandwich Maker and Electric Kettle
Sandwich Maker BSWR17Slice Toaster BSTE-1 7-1 8 Slice Toaster - BSTP 17-18
BSWR17750 WATTS
B~~E1_7-181700 WATTS
BSTP17-1SAI800 WATTS
•e'_' "
PRODUCT HIGHLIGHTS 4
@ ~ 0 (c®Cool touch Reheat. Slide-out One-year
2-slice defrost, crumb tray; warrantytoaster cancel button easy to clean
PRODUCT HIGHLIGHTS 4
.~.Cool touch
2-511c8 toasterceocetbutton
Slide-out One-yearcrumb trey: W8rrantyeasy to ctoen
Sandwich Maker BSWG17
PRODUCT HIGHLIGHTS •••
z-euce fixed Fuse fors<lnd'Wich maker overheat
protection
One-year'Warranty
Water Kettle - EKN 1.5 Electric Kettles - Wave 1.2
BSWG17750 WATTS
WAVE1,2 LTR
EKN 1500 WATTS1.5 LTR
PRODUCT HIGHLIGHTS 4
~\ ~ VJ ®2-slice fixed Non-stick Indication One-yearsandwich coating light for warranty
maker plate on/Off
KEY FEATURES
.~~ ~o (OJKEY FEATURES
Superior Auto cut-offquahty stainless faCility
steel body
Durable and Temperature One-yearelegant stainless control knob warranty
steel body and auto switch-ott
One-yearwarranty
4Butterll~
NEW PRODUCT LAUNCHES Chopper and Blender
Butterfly®MINI CHOPPER & BLENDER
4Butterll~. .
Strong R&D Capabilities
R&D focused Company with a demonstrated track record in innovation
1st to introduce Stainless Steel Pressure Cookers in India
1st to manufacture Stainless Steel LPGStoves in India
1st to introduce Stainless Steel Vacuum Flasks in India which deliver enhanced Heat Retention up to 72 hours compared to 8hours with conventional products
Invented 3 conical stone grinding technology - awarded patent in 1998
Enhanced Fuel efficiency in LPGStoves from 50% to over 68% at present
In-house design of moulds, tools and dies has resulted in improved manufacturing efficiency
3600 R&D efforts focused on product efficiency, longevity and design
1st in India to get BEElabel with 2 star rating for manufacture of LPGStoves
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Abridged Profit & Loss Statement
Particulars 1111111533.3 906.3 405.5447.5 468.2 402.384.3 432.71.5 5.4 3.2317.5 621.9 251.7248.3 566.6 145.965.3 31.5 49
3.9 23.8 1
215.8 284.4 153.840% 31% 38%60.3 61.3 50111.5 157.9 127.544 65.2 -23.78% 7% -3%10.2 11.5 11.629.6 34.5 21.24.2 19.1 -56.6
Total Net Revenues (Incl. 01)
NOTE: *results are as per IND-AS standards.
FY2017 *Ind-AS
FY2018 *Ind-AS
Rs. crare
•••
••430.7 503.5430.2 502.5
r--------------: The Revenue
,,' has grown by" 16.8% across all' 1
~.... I the channel andII geography inII spite of KeralaII FloodI J
4Butterll~
406.6 542.1404.9 540.5
1.7 1.6247.3 315.2149.1 218.778.8 106.4
19.4 -9.9
159.3 226.939% 42%50.4 57.3126.9 133.2-18 36.3-4% 7%11.6 12.423.3 18.1-53.1 5.8
Q3 FYl 9 - Performance highlights
Total Income (Net) (Rs. crore) EBITDA (Rs. crore)
141.9 160.7
10.310.0
Q3FY18 Q3FY19 Q3FY18 Q3FY19• Branded Sales
PAT (Rs crore)
Total Income (Net) during Q3 FY19 stood at Rs.160. 7 crore,
as against Rs.141.9 crore in Q3 FY18
Branded sales was higher by 13% on a Y-o-Y basis.
EBIDTA reduced by 1.07% on Y-o-Y basis, because
of Gross Profit impact due to Product Mix and
Channel Mix.
PAT stood at Rs. 0.7 cr in Q3 FY19
Q3FY18 Q3FY19
NOTE: Results are as per Ind-AS standards
4Butterll~
Key Highlights
Branded Sales (Rs crore)
Product Q3 FY19 Q3 FY18 Q2 F19 ~;~:h ~~~~~
Branded MarketKitchen Appl iances 123.4 110.7 175.1 11.5% -29.5%Cooker /Cookware 30.7 23.7 33.1 29.5% -7.2%Others 5.3 6.6 8.1 -19.7% -34.4%Grand Total 159.4 141.0 216.2 1 3.096 -26.396
• Overall the branded business grew by 13% for the quarter on Y-o-Y basis
• However the quarter on quarter basis reduced due to festival season in Q2.
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9M FYl 9 - Performance highlights
Total Income (Net) (Rs. crore)502.5438.9
9M FY18 9M FY19
9M FY189M FY19• Branded Sales EBITDA (Rs. crore)
PAT (Rs crore)
Total Income during 9M FY19 stood at Rs.S02.S crore, as
against Rs.438.9 crore in 9M FY18
Branded sales was higher by 16.696 on a 9M FY19 vs
9M FY18 basis on net of Excise Duty basis.
PAT stood at Rs.8.3 crore in 9M FY19
9M FY18 9M FY19
NOTE: * Results are as per INDAS standards
4Butterll~
Key Highlights
Branded Gross Sales(Rs crore)
Y-o-YProduct 9M FY19 9M FY18 Growth
Branded MarketKitchen Appliances 398.9 350.9 13.7%Cooker /Cookware 81 .5 66.0 23.4%Others 18.3 19.7 -6.9%Grand Total 498.7 436.6 14.296Less: Excise Duty 8.8
Grand Total 498.7 427.8 16.696
• Overall the company had a very good in top line upto 9M and is looking forward for a good financial year.
• We are on track to achieve the targets set for the year
. . I · 4Butterll~
Outlook
The objective and focus of the plan is completely on delivering better Profit for FY18-19 also,improving balance sheet liquidity and reduction of debt
1. Improving working capital ratio of the Company
a. Focus on collections. Channel Financing is expected to reduce the Debtors in the coming quarters.
b. Increase in supplier credit days
c. Reduction in Inventory levels through optimised sales planning
2. For FY 2018-19 Company is targeting a growth of 1596to 2096.
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any queries please contact Mr.V.M.G.Mayuresan, vrngm@butterftyindiacom