Wonder Electricals Limited Investor Presentation November 2024 PDF

Date: 14.11.2024 To, To, Chief Manager BSE Limited Listing Compliance Department Corporate Relation Department National Stock Exchange of India Limited (NSE)...

Date: 14.11.2024 To, To, Chief Manager BSE Limited Listing Compliance Department Corporate Relation Department National Stock Exchange of India Limited (NSE) 1st Floor, New Trading Ring Exchange Plaza, Plot no. C-1, Block-G, Rotunga Building Phiroze Jeejeebhoy Bandra Kurla Complex, Towers Bandra (E), Mumbai -400 051 Dalal Street, Mumbai - 400 001 Scrip Code: 543449 Scrip Symbol: WEL ISIN: INE02WG01024 Sub: Submission of Corporate Presentation Dear Sir/Madam Please find enclosed the corporate presentation for Investors. The presentation is being submitted in compliance with Regulation 30 read with Schedule III of Para A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. You are requested to kindly take the same in your records. Thanking You, For Wonder Electricals Limited DHRUV Digitally by DHRUV signed KUMAR KUMAR Date: JHA 2024.11.14 JHA 11:52:04 +05'30' __________________ Dhruv Kumar Jha Company Secretary & Compliance Officer Encl: As above Investor Presentation November 2024 This presentation has been prepared by Wonder Electricals Ltd. solely to provide information about the Company to its stakeholders. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. None of the Company nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to number of factors, including future changes or developments in the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India. Please note that this presentation is based on the publicly available information including but not limited to Company’s website and Annual Reports. This communication is for general information purposes only, without regard to specific objectives, financial situations and needs of any particular person. Please note that investments in securities are subject to risks including loss of principal amount. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Quarterly & Half Yearly Performance Company Overview Business Overview Manufacturing Facilities Financial Overview Way Forward Induction Fans (Units in Lakhs) BLDC Fans (Units in Lakhs) 7.41 1.37 4.71 0.32 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Exhaust, Farrata & TPW Fans (Units In Lakhs) 1.75 0.79 0.15 0.04 Q2 FY24 Q2 FY25 Exhaust & Farrata TPW Induction Fans (Units in Lakhs) BLDC Fans (Units in Lakhs) 26.42 2.35 13.31 0.60 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Exhaust, Farrata & TPW Fans (Units In Lakhs) 3.71 1.93 0.47 0.14 H1 FY24 H1 FY25 Exhaust & Farrata TPW Operational Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 129.58 3.51 0.51 62.58 0.97 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 -0.10 Operational Revenue (Rs. Cr.) EBITDA (Rs. Cr.) PAT (Rs. Cr.) 9.69 2.30 360.94 179.53 4.07 0.63 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25  I am pleased to share that Wonder Electricals has achieved significant growth in the second quarter of FY25, demonstrating our ongoing commitment on value creation. Our Revenue from Operations in this quarter has more than doubled, with a robust YoY growth of 107.08%, reaching Rs. 129.58 crore led by higher sales volume. Our EBITDA increased by 261.31% to Rs. 3.51 crore, driven by sales of value added products which has also led to a notable improvement in our EBITDA margins, to 2.71% compared to 1.55% in the same period last year. Additionally, it is gratifying to report a positive PAT of Rs. 0.51 crore, a turnaround from the previous year, underscoring our improved profitability and operational resilience. As a commitment to sustainable growth, we have installed a 128-kilowatt solar power plant at our Hyderabad factory. This investment underscores our focus on sustainability and cost-efficiency, as it will help us reduce electricity costs significantly. Further to this, we are dedicated to lead the industry with our range of energy-efficient BLDC fans. We also aim to expand our plastic TPW and ventilating segments to meet the diverse requirements of our growing customer base. Our robust vendor network strengthens our supply capabilities, and, as demand continues to grow, we plan to strategically expand our production capacity over time to stay ahead of evolving market needs As we move forward, I am confident that our strategic initiatives will continue to propel Wonder Electricals to new heights. I want to thank our shareholders, customers, and employees for their continued trust and support.” Mr. Yogesh Sahni  Particulars (Rs. Crore) Q2 FY25 Q2 FY24 YoY% Revenue from Operations 129.58 62.58 107.08% Other Income 0.01 0.84 Total Operational Revenue 129.59 63.41 104.4% Raw Materials 115.26 56.61 Employee Cost 9.54 4.22 Other Cost 1.27 0.77 Total Expenditure 126.07 61.61 EBITDA (excl. Other Income) 3.51 0.97 261.31% EBITDA Margin (%) 2.71% 1.55% 115 bps Depreciation 1.63 1.34 Interest 1.32 0.65 PBT 0.56 (0.18) Tax 0.05 (0.08) PAT 0.51 (0.10) PAT Margin (%) 0.39% (0.16%) Basic EPS (Rs.) 0.38 (0.08) Particulars (Rs. Crore) H1 FY25 H1 FY24 YoY% Revenue from Operations 360.94 179.53 101.05% Other Income 0.01 0.84 Total Operational Revenue 360.95 180.37 100.12% Raw Materials 327.64 164.56 Employee Cost 20.85 9.35 Other Cost 2.77 1.56 Total Expenditure 351.26 175.46 EBITDA (excl. Other Income) 9.69 4.07 137.90% EBITDA Margin (%) 2.68% 2.27% 41 bps Depreciation 3.18 2.56 Interest 3.01 1.39 PBT 3.51 0.97 Tax 1.22 0.33 PAT 2.30 0.63 263.19% PAT Margin (%) 0.64% 0.35% 28 bps Basic EPS (Rs.) 1.71 0.47  As on 30th As on 30th As on 31st As on 31st Equity and Liabilities (Rs. Crore) September, Assets (Rs. Crore) September, March, 2024 March, 2024 2024 2024 Share Capital 13.40 13.40 Property Plant & Equipment Reserves and Surplus 0.00 0.00 (i) Tangible Assets 39.26 39.08 Preference Share Capital 19.93 19.93 (ii) Right of Use Assets 0.83 0.34 Other Equity 56.88 54.54 (iii) Intangible Assets – Goodwill 15.19 15.19 Shareholders Funds 90.21 87.87 Financial Liabilities Financial Assets -Borrowings 7.65 6.65 Non-current Investment 0.00 0.00 -Other Long term liabilities 0.91 0.48 Other Financial Assets 0.00 0.00 -Provisions 0.00 0.00 Deferred Tax Assets (Net) 0.32 0.31 Deferred Tax Liabilities (net) 0.00 0.00 Other Non Current Assets 0.19 0.25 Other Non-Current Liabilities 0.00 0.00 Non Current Assets 55.78 55.16 Non Current Liabilities 8.56 7.13 Financial Liabilities Inventories 61.66 63.25 Borrowings 42.11 57.45 Financial assets Trade Payables -Trade receivables 147.15 220.72 -Payable to MSME Creditors 97.75 168.51 -Cash & Cash equivalents 0.36 4.37 -Payable to Other Creditors 28.81 17.94 -Short Term Loans & Advances 4.03 1.97 Other Current Liabilities 0.68 0.42 Provisions 6.74 13.16 Other Current Assets 5.88 7.01 Current Liabilities 176.09 257.48 Current Assets 219.07 297.32 Total Equity & Liabilities 274.86 352.48 Total Assets 274.86 352.48  One of India’s leading fans and appliances FY24 Total number of Fans sold: 56 Lakh 01 manufacturer, with a history of over two units 06 decades Specializing in both ODM and OEM services FY24 Operational Revenue: INR 570 Crore 02 07 3 strategically located plants in Roorkee, FY24 EBITDA: INR 24.6 Crore 03 Haridwar, and Hyderabad spread across 08 3lakhs+ sq ft of total area Product Portfolio – Ceiling, Exhaust, 04 Pedestal & TPW Fans FY24 ROE: 11.56% New products added –Heaters, 09 Ventilating Fans & now Kettles Total installed capacity – 12 Million FY24 ROCE: 12.37% 05 Units p.a. 10 Supplies to more than 10 top brands of India Aims Outpace market growth and become a leading name by leveraging five key pillars: Branding, Portfolio, Go-to-Market strategies, Operational excellence, and Organizational leadership. Diversification Expand product portfolio to align with evolving consumer trends and technological advancements. Growth Increase presence in motors based on market demand. Vision Become a global leader in energy-efficient fans, motors, home appliances, and related equipment through technology-driven solutions. Capacity Enhance production capacity to meet current market needs. Innovation Prioritize energy efficiency and technology in new products. International Expansion Enter global markets with existing products. Product Range Introduce new products for both domestic and international markets. Company inception Incorporated as “Wonder Increased our Conversion of Company from and start of operation Fibromats Private Limited” total buyer base private limited into public under the provisions of the to 6 customers limited company vide a fresh Companies Act, 1956 Certificate of Incorporation Completed IPO got Increased our Migrated to the main board Increased our Started manufacturing listed on NSE total buyer base of NSE & BSE stock total buyer base of TPW fans and EMERGE SME to 12 customers Exchanges in January. to 15 forayed into Platform. Changed its name from customers manufacturing of Wonder Fibromats Limited heaters to WONDER ELECTRICALS LIMITED in December Founded in 2003, Focused on leveraging Possess a clear and Operate three fan manufacturing we are a prominent fan cutting-edge technology ambitious vision for future units and two captive component manufacturer and in our processes and products. growth. facilities, providing fully integrated OEM/ ODM in India. manufacturing solutions. Among the largest fan Guided by a highly Achieved consistent Serve over 10 major producers in the country. experienced and robust growth Indian brands and export Production capacity of 40,000 management team and since our inception. Holds to the Gulf and neighboring fans a day supported by a committed critical ISO & Compliance countries. vendor network. certifications for quality management and control.  Efficient mass production with an installed capacity exceeding 12 million units annually, committed to 01 quality and complete customer satisfaction. As the company is leading ODM for fans in the country, their In-house design and development team, 02 including engineers, draftsmen, and designers, with expertise in mechanical, electrical, and aesthetic design for quick turnaround is one of their moats and preferred by many customers As the market shifts to BLDC fans, Wonder Electricals stands as a leader to capitalize on this 03 opportunity and further expand it’s reach Their in house manufacturing facilities produces significant synergies for them as they have a 04 complete backward integration of this process Extensive and diverse product portfolio which includes ceiling fans with star rating between 1 to 5 star 05 (this is a range of induction & BLDC fans), metal exhaust & farrata fans. We also produce a plastic range of Table, Pedestal and Wall Fans. 06 Capacity to produce 40,000 fans in a day, one of the highest capacities in the country Guided by a highly experienced management team who possess over 5 decades of Industry 07 experience  Fans BLDC Induction Exhaust & Farrata Fans TPW fans Appliances Electric Heater Kettles Harsh Kumar Anand Yogesh Sahni Mr. Harsh, B.Tech (Electrical), is the Mr. Yogesh Sahni, Promoter and Managing Promoter, Director, and Chairman of the Director, holds a Graduate degree from Sri Company. With over 50 years of Ram College of Commerce. With over 40 experience in manufacturing years of diverse industry components for electric fans, sales, and experience(packaging, stationery, client retention, he oversees daily construction) he began fan manufacturing operations and formulates business in 1988 and has significantly grown the policies and growth strategies. He has business. He has been on the board since been on the board since June 7, 2013. June 7, 2013. Yogesh Anand Mr, Yogesh Anand is the Promoter , Director and CFO of the Company, holding a Postgraduate degree in Commerce. With over 45 years of experience in fan manufacturing and financial management, he oversees both financial operations and strategy and has overseen similar companies in the past Jatin Anand Karan Anand Mr. Jatin Anand, a Whole Time Mr. Karan Anand, a Whole Time Director, holds a B.E. in IT and an MBA. Director, holds a B.E. in Computer With over 15 years of experience in Science and an MBA. With over manufacturing electric ceiling, exhaust, 15 years of experience in and plastic fans, he manages daily manufacturing electric ceiling, operations, including production and exhaust, and plastic fans, as well supply chain. He has been on the board as their components, he has been since May 12, 2016. on the board since May 12, 2016. Siddhant Sahni Mr. Siddhant Sahni, a Whole Time Director, holds a Bachelor’s degree in Business Administration. With over 13 years of experience in consumer electronics and home appliances, particularly in ceiling and exhaust fans, he is known for his strategic vision, operational excellence, and commitment to innovation. He has been on the board since May 12, 2016.  HARIDWAR ROORKEE HYDERABAD  Wonder Electricals Limited – Roorkee Plant Land Area 9,500 sq. mtr. Approximately Covered Area 13,350 sq. mtr. Approximately Blade Fabrication Stator Winding and Machining Varnishing In-House Processe Fan Assembly: s Pre Treatment, Pedestal, Powder Coating Heavy Duty & & Liquid Painting Ceiling Fans  Wonder Electricals Limited – Haridwar Plant Land Area 3,600 sq. mtr. Approximately Covered Area 8,850 sq. mtr. Approximately Stator Winding and Machining Varnishing Blade LD & Pedestal Fabrication In-House Fan Assembly Processes Fan Pre-treatment, Assembly: Powder Coating Pedestal, Light & Liquid Painting Duty & Ceiling Fans  Wonder Electricals Limited – Hyderabad Plant Land Area 7,200 sq. mtr. Approximately Covered Area 11,100 sq. mtr. Approximately Blade Fabrication Stator Winding and Machining Varnishing In-House Fan Assembly: Processes Plastic TPW, Pre-treatment, Ventilating & Powder Coating Ceiling Fans & Liquid Painting The Indian ceiling fan market is majorly driven by rapid urbanization and the As per IMF estimates, India’s per capita income (at constant prices) is expected increasing construction of new residential buildings. This is further supported by to grow at 5-6% CAGR in real terms from Fiscal 2025 to Fiscal 2027. several initiatives undertaken by the Government of India (GoI) to expand Complemented by consumer shift towards premium products, will help in housing projects and develop smart cities across the country. improving realizations for both brands & OEMs Housing Growth in India - In the Union Budget 2023-24, the Finance Ministry The increasing market share of organized players, driven by a reduction in the announced a commitment of Rs. 79,000 crore for PM Awas Yojana, which price gap between organized and unorganized competitors, indicates that this represents a 66% increase compared to last year. In the 2024-25 interim Budget, trend is likely to continue. Finance Minister announced a boost for India's affordable housing sector by adding 2 Crore more houses to the flagship scheme PMAY-U. There has been exponential growth in the use of exhaust fans across various The Hospitality Industry - In Indian Hospitality Market size is estimated to sectors, including cloud kitchens, restaurants, manufacturing plants, and grow at a CAGR of 13.96% during the forecast period of 2024-2029. factories. Source: IBEF; Company  Operational Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs.) 569.99 10.16 24.63 398.36 402.52 7.28 17.50 17.24 305.53 6.29 11.50 4.69 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24  ROE% ROCE% 16.43% 13.59% 14.00% 11.56% 13.12% 10.55% 12.37% 9.71% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ROA% Net Debt/Equity 0.73 3.24% 2.88% 2.70% 2.33% 0.39 0.41 0.20 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Particulars (Rs. Crore) FY24 FY23 YoY% Revenue from Operations 569.99 402.52 41.61% Other Income 0.03 0.02 Total Operational Revenue 569.99 402.52 Raw Materials 513.53 364.48 Employee Cost 27.66 17.33 Other Cost 4.17 3.46 Total Expenditure 545.36 385.28 EBITDA (excl. Other Income) 24.63 17.24 42.84% EBITDA Margin (%) 4.32% 4.28% 4 bps Depreciation 5.80 5.41 Interest 4.33 2.96 PBT 14.52 8.89 53.34% Tax 4.37 2.60 PAT 10.16 6.29 47.41% PAT Margin (%) 1.78% 1.56% 6 bps Basic EPS 7.58 4.69  Energy Efficiency Focus Portfolio Diversification Margin Improvement Vendor Support Committed to leading the market with Started manufacturing of As the customer preference A robust vendor energy-efficient products like BLDC fans, heaters, ventilating fans and shifts towards BLDC Fans, it network ensures strong offering fans with 1 to 5 Star ratings and now kettles would enable margin supply capabilities for various energy-saving variants. expansion for the company the new capacity. Plastic TPW Expansion Capacity Expansion Technology Integration Plans to grow the Plastic The company plans Advanced technology is TPW & Ventilating segment, substantial capacity increases employed throughout the targeting significant growth. over the next few years. production process. Thank You Wonder Electricals Limited Adfactors PR Mr. Yogesh Sahni Namit Shah/ Bhavya Aggarwal Managing Director [email protected]/ [email protected] [email protected] www.wonderelectricals.com/