PG Electroplast Ltd reports impressive growth for Quarter ended March 31st, 2023

PG Electroplast Ltd reports impressive growth for Quarter ended March 31st, 2023

New Delhi,27th May 2023: PG Electroplast Ltd. (PGEL), one of the pioneers and leaders in the Electronic Manufacturing Services and Plastic Molding announced its results for the quarter ended March 31st, 2023, as approved by its Board of Directors.

Key Financial Highlights:

Quarter ended March 31st, FY2023

  •  Net Sales for the quarter was INR 8.269 billion – a growth of 65.4% YoY.
  •  Operating profit for the quarter was INR 744.2 million a growth of 105.0%
  •  Quarterly EBITDA stood at INR 769.0 million versus Rs 529.3 million in 4QFY2022 – a growth of 45.3%.
  •  Quarterly Net profit stood at INR 401.7 million versus INR 276.3 million in 4QFY2022. 12-Month Year ended March 31st, FY2023
  •  Net Sales were INR 21.478 billion – growth of 95.7% YoY.
  •  Operating profit for the year was INR 1.639 billion – growth of 115.6%
  •  EBITDA for FY2023 stood at INR 1.804 billion vs INR 942.8 million– growth of 91.4%.
  •  Net profit for FY2023 stood at INR 774.7 million versus INR 374.2 million – a growth of 107.0%.

Commenting on the results, Mr. Anurag Gupta, Chairman, said “PG’s growth strategy is now bearing fruit and with over Rs 1300 crores in Product business, company has firmly established itself as a credible contract manufacturer & ODM player in Room AC and Washing Machine industry. Growth outlook across current focus segments remains robust and with new initiatives, Company’s addressable market in Consumer Electronics and Consumer Durables will see multifold increase.

Focus on capital efficiency, driven by improving Asset turns through product business growth has been the hallmark of our strategy and we aim to deliver Industry leading growth with best in class return ratios in coming years. We believe that our new initiatives and planned capacities will open new growth horizon for Company in near future.”

Other Highlights:

FY2023 was another landmark year with several milestones of achievement:

o Consolidated Sales crossed INR 21 billion with Product business sales crossing INR 13 billion. PGEL’s 100% subsidiary, PG Technoplast, crossed INR 10 billion in revenue in its second year of operations.

o Developed, validated, and launched successfully new products in washing machines, Room AC and Coolers. During the year company doubled its capacity across Room AC and Washing machine segment and increased its Product business by over 180%.

o Capital efficiency of business improved, and company’s RoCE was 18.7% and RoE was 21.9% for the financial year ending March 2023. Net fixed Asset turns for the consolidated entity crossed 4x.

o In AC business during the season, company achieved over 85% capacity Utilisation on the expanded capacity during the 4th quarter.

o PG group serviced 14 leading brands in the AC for its ODM models and over 20 leading brands for washing machines in ODM model.

o The Product business contributed 70% of the total revenues in 4QFY23 and 62.4% for FY2023. The Product business has grown 121% YoY for the quarter and for FY2023 growth is 180%.

o The Washing machines business had a growth of 56.6% YoY for FY2023, while the AC product Business grew 180.5% for FY2023. Order book for product business remains robust and the company is on track to scale the product business again significantly in FY2024.

o TV & Electronics business contributing 7.5% of the total revenues and grew 131% in FY2023.

o Significant enquiries and commitment for new business are being witnessed across business segments and addition of new clients has been robust across verticals.

o Company plans to further invest in significant capacity enhancement in FY2024 in the product business for future sales growth and further backward integration.

Future Outlook:

Management sees increased opportunities in the existing and new clients and based on the current business environment. With new capacities and capabilities, company is uniquely positioned in the consumer durables & plastics space in India. In coming years, company aspires:

  • To have Industry leading growth in Revenues.
  •  Gradual improvement in margins due to operational efficiencies and operating leverage.
  •  Best in class capital efficiency resulting from improved cash flows & balance sheet optimization.
  • Specific guidance for FY2024:
  •  Sales guidance of INR 28 billion which will be a growth of 30% over FY2023 consolidated sales and operating profit guidance of INR 2.10 billion which will be a growth of 28% over FY2023 operating profit of INR 1.64 billion.
  •  The growth in product business i.e., Washing Machines, Room Air Conditioners and Air Coolers is expected to be ~43% to INR 19.20 billion from INR 13.41 billion in FY2023.
  •  Capex for FY2023 will also be in the range of INR 1.70-1.80 billion and Company will invest in new models of washing machines. Also further expand Room AC capacity along with a new location for Integrated AC manufacturing plant in North India.