Earnings Presentation

FAS A2
About the Company

• The company started in 1974 as Indian Fine Blanks Ltd.

• In 1990-91, the home appliances division was started with its factory in Bangalore

• The company is pioneer in manufacturing of fully automated washing machines

• The company is leader in front load washing machines with 39% market share

• The company has market share of 24% in microwave ovens

SUBSIDIARIES

IFB
Industries

Trishal
GAAL-100%
Metals
stake
51.12% stake

TAAL-100%
stake
Market Share of Products
PRODUCTS MARKET SHARE
Front Load Washing Machines 40%

Top Load Washing Machines 9%

Microwaves 22%
ACs 1%
Industrial Products 35%-40% Value share
Second Quarter
Updates
 SHAREHOLDING PATTERN
SHAREHOLDING PATTERN
Jun-19 Sep-19
Public Holding
15%
Promoter 74.96% 74.96%
Institutional-
10%
Institutional 10.52% 10.63%
Promoter
Mutual Funds 2.44% 2.48%
Institutional- Foreign Portfolio Investors 7.98% 8.05%
Public Holding

Public Holding 14.52% 14.40%

Promoter
75%
Total 100.00% 100.0%
 INCOME STATEMENT
(Rs millions) 2QFY20 2QFY19 1QFY20 YoY (%) QoQ (%)
Revenues 7158 6889 6996 3.9% 2.3%
Raw material costs 3976 3811 4167 4.3% -4.6%
Staff costs 725 671 738 8.0% -1.8%
Other expenses 1924 1964 1774 -2.0% 8.5%
Total expenditure 6625 6446 6679 2.8% -0.8%
EBITDA 533 443 317 20.3% 68.1%
EBITDA margin (%) 7.4% 6.4% 4.5% - -
Depreciation 155 142 163 9.2% -4.9%
EBIT 378 301 154 25.6% 145.5%
Interest costs 20 17 22 17.6% -9.1%
Exceptional Items 194
PBT 358 478 132 -25.1% 171.2%
Tax 141 134 37 5.2% 281.1%
PAT 217 344 95 -36.9% 128.4%
PAT margin (%) 3.0% 5.0% 1.4%
EPS (Rs) 5.43 8.56 2.48 -36.6% 119.0%
 Fine Blanking
• Chain
• Sprokets

Kitchen Appliances
• Microwave Oven
• Modular kitchen
• Built-in Ovens, Chimneys and
Hobs

Products Washing Category

• Front loaders
• Top loading washing machines
• Dish washers
• Cloth dryers
• Industrial segment

Cooling Category
• Air Conditioners

Revenue contribution in Q2
 REVENUE BREAKUP

YoY QoQ
(Rs millions) 2QFY20 2QFY19 1QFY20 (%) (%) Revenue breakup(Rs. Millions)
7000

Revenues 6000

Home appliance 5898 5451 5676 8.2 3.9 5000

Engineering 1164 1240 1185 -6.2 -1.8 4000

EBIT (Rsmn)
3000

2000
Home appliance 356 253 127 40.4 180.9
1000

Engineering* 80 311 94 -74.3 -15 0

2QFY20 2QFY19 1QFY20
EBIT margin (%)
Home appliance 6 4.6 2.2 - - Home appliance Engineering

Engineering 6.9 25.1 7.9 - -

 APPLIANCE SEGMENT BREAKUP

(Rs millions) 2QFY20 2QFY19 1QFY20 YoY (%) QoQ (%)

Revenue break-up (%)

Front-load washing machine 51.1 50.9 38.3 8.7 38.2

Top- load washing machine 16.6 18.7 13.7 -3.9 25.5
Microwave oven 12.3 12.6 7.5 5.7 69.9
ACs 3.5 3.2 25.5 18.4 -85.8
Others 16.5 14.6 15 13% 10%
 52.3
50.7 50.9 50.7 51.1

42.3 42 41.5 41.2

38.3

25.5

21.1
20.1
18.7 18.1 17.9
17.5 17 16.5 16.6
15.4 15.1 15.7
14.5 14.7
13.1 13.7
12.3 12.6 12.6 12.8
12.3
11.5 11.7
10.4 10.6 10.1 10.1 10.4
9.5
8.8 9.5 9
7.7 7.5
4.4 4.6
3.2 2.8 3.5
2.3 2.5
2 2.6 2.3 2.1 2.4 2.2 2.7 2.6
2 1.9
1.6 1.1 1.5 1.2 1.3 1.3 1.7 1.8

Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY 20 Q2 FY20

Front loaders Top loaders Microwaves Modular kitchen Dsihwasher AC others

 Capex plans
• Capex outlay planned is Rs.2.5bn –
• New AC plant – 1.5bn
• Fine Blanking segment – 500mn
• Motor indigenization- 500mn

PRODUCTS IMPORT CONTENT IMPORT CONTENT

(CURRENTLY) (After New Plant )
Front Load Washing Machines 25% 20%
Top Load Washing Machines 40% 25%
ACs (Motors) 100% 0%
 5 Step DuPont Analysis

2QFY20 2QFY19 1QFY20

EBIT Margin 5% 4% 2%
Interest Burden 95% 94% 86%
Tax Burden 61% 72% 72%
Asset Turnover 2.28 2.47 2.35
Equity Multiplier 1.94 2.04 1.93
ROE(annualized) 13% 15% 6%