CREATIVE NEWTECH LIMITED — Interim / Quarterly Report 2021

Feb 11, 2021

Date: 11th February 2021

To, The Manager Listing Department National Securities Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051

Sub: Creative Peripherals and Distribution Limited announces the un-audited consolidated financial results for Q3 & 9M FY21

Dear Sir,

Please find attached Media Release regarding announcement of un-audited consolidated financial results for Q3 & 9M FY21.

Thanking you,

Yours Faithfully

For Creative Peripheral and Distribution Limited

Tejas Doshi Company Secretary & Compliance Officer ACS – 30828

Date: 11th February 2021 Place: Mumbai

Creative Peripherals and Distribution Limited

Media Release – Consolidated

9M FY21 Total Income at Rs. 347.45 cr – sustained by robust demand in IT and Gaming products – Cooler Master, Samsung & PNY

9M FY21 EBIDTA at Rs. 11.22 crore – operational efficiencies and high margin products offset by higher raw material costs from changing product mix

9M FY21 Net Profit at Rs. 5.05 crore

EPS Reported at Rs. 4.45

Mumbai, 11th February 2021: Creative Peripherals and Distribution Limited (NSE: CREATIVE), market specialists for experiential products in IT, Imaging, Lifestyle, and Security domains with a pan-India presence, announced its un-audited consolidated financial results for the third quarter and nine months ended December 31st, 2020.

Key Consolidated Financials (Rs. Cr.):

Particulars	Q3FY21	Q3FY20	YoY%	9MFY21	9MFY20	YoY%
Total Income	168.47	129.50	30.10%	347.45	330.84	5.02%
EBIDTA(Incl. Other
Income)	5.21	5.95	(12.41%)	11.22	13.97	(19.72%)
EBITDA Margin	3.10%	4.60%	(150 bps)	3.23%	4.22%	(99 bps)
Net Profit	2.42	3.12	(22.51%)	5.05	7.10	(28.85%)
Net Profit Margin	1.44%	2.41%	(97 bps)	1.45%	2.15%	(70 bps)
Basic EPS (in Rs.)	2.21	2.83	(21.91%)	4.45	6.47	(31.22%)

Creative Peripherals and Distribution Limited

Performance Highlights for the quarter ended December 31st, 2020:

• Total Income for the quarter was Rs. 168.47 crore in Q3 FY21, a YoY increase of 30.10%, mainly due to robust demand for existing brands such as Samsung, expansion of Honeywell product portfolio and pick-up from new brands like Cooler Master and PNY.
• EBITDA is at Rs. 5.21 crore in Q3 FY21, YoY decrease of 12.41%. Higher contribution from the IT segment led to higher blended raw material prices, which offset the cost reduction exercises. EBITDA Margin is 3.10%, vis-à-vis 4.60% in Q3 FY20
• Net Profit is Rs. 2.42 crore in Q3 FY21 compared to Rs. 3.12 crore in Q3 FY20, while Net Profit Margin stood at 1.44%

Performance Highlights for the nine months ended December 31st, 2020:

• Total Income for the nine months was Rs. 347.45 crore in 9M FY21, a YoY increase of 5.02%. Uptake in demand for existing and new product lines offset the impact of the nationwide lockdown during the first quarter.
• EBITDA is at Rs. 11.22 crore in 9M FY21, YoY decrease of 19.72%. Continued employee and fixed expenses despite lower sales during the first two quarters, coupled with higher raw material expense due to changing product mix, led to contraction in EBITDA margins. EBITDA Margin is 3.23%, vis-à-vis 4.22% in 9M FY20
• Net Profit is Rs. 5.05 crore in 9M FY21 compared to Rs. 7.10 crore in 9M FY20, while Net Profit Margin stood at 1.45%

Recent Key Developments:

• Creative Peripherals tied up with Reliance Retail to distribute a range of audio and home appliance products branded under Disney and Marvel labels
• The Company signed an agreement with Edelkrone to distribute videography/photography accessories in India
• Creative Peripherals expanded its licensing agreement with Honeywell to include air purifiers for 10 countries across the world

Creative Peripherals and Distribution Limited

• The Company signed a distribution agreement with ZEISS to distribute binoculars and monoculars across India
• The Company launched Ckart an online digital B2B eCommerce platform which will help in expanding customer- and product-base
• The Company renewed its licensing agreement with Honeywell for another five years, and expanded distribution reach to 29 countries across APAC and the Middle East

Management Comment:

Commenting on the performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Peripherals & Distribution Limited said:

"This financial year started on a tough note, with the COVID pandemic impacting the whole supply chain and entire economies across the world. While our company was also impacted by the lockdown, I am happy to say that we have sustained well through the turbulent phase and are getting back on track to our growth trajectory.

In Q3 FY21, we registered a 30.10% YoY growth in our revenue, at Rs. 168.47 cr, while our EBITDA and PAT stood at Rs. 5.21 cr and Rs. 2.46 cr, respectively. Our 9M FY21 topline also grew 5% YoY, affirming our path of recovery from the damp start to the year. Growth in topline has been driven by more demand from our established brands such as Samsung and Viewsonic, complemented by adoption of newer products from Cooler Master and PNY. A change in product mix – higher contribution from the IT segment – led to increased raw material prices, which impacted margins.

We have also added various new brands to our portfolio during this period, with the most recent tieup being with Reliance Retail to sell a wide array of products spanning multiple categories, which is expected to broaden our target market as well as boost profitability. We are also seeing increased adoption of Ckart among existing as well as new customers. Higher business volume through Ckart will help us generate more revenue without additional costs. These developments, along with the ongoing shift to digitization across India, give us an upbeat view of the coming quarters.

We are well positioned to cater to the domestic as well as international markets while keeping a lean and efficient business model, thereby ensuring long-term, sustainable growth for all stakeholders. I would like to thank the entire team for their dedication and for coming together during such uncertain times."

Creative Peripherals and Distribution Limited

Company Overview

Established in 1992, Creative Peripherals and Distribution Limited is a well-established company in India's Information and Communication Technology distribution market. Through a robust network of partners and distribution channels, the Company has made a strong foothold in the IT distribution market in the country. The Company has an omni-channel network across all three channels of online, offline and retail trade.

Creative Peripherals specializes in market entry and penetration for global brands. The Company offers demographic intelligence, and enables the formulation and execution of marketing strategies for its clients. In addition to such services, Creative continues to focus on timely delivery, diversification of its product portfolio, sustained long-term relationships with its channel partners, and extending value-added services over and above distribution.

These efforts have enabled the Company to win long running contracts as well as garner accolades in the Industry as amongst the best distributors in India by leading brands. Creative Peripherals is associated with over 20 renowned brands globally. These brands encompass a wide range of applications and help the Company to cater to a broad array of customers, both in the consumer and industrial businesses. Moreover, the Company is well-positioned to leverage the changing trends in the technology industry and be a part of the paradigm shift towards digitization in India.

Creative Peripherals has a unique value-added business model. They provide end-to-end solutions, from market research and competition analysis for brands, to import, distribution, sales and servicing for the brand. Additionally, the Company suggests and executes marketing strategies and recommends viability in specific regions across India for their clients. This is enabled by specialized skill sets, local insights and experience, along with relevant market intelligence. Creative Peripherals also prepares strategic plans for market entry for foreign brands and their target category.

Furthermore, the Company conducts pre-sales and marketing activities for the success of the brand as well as to enable the channel partners to leverage their expertise and bottom line. Creative Peripherals works closely with partners across channels including Large Format Retail (LFR), e-commerce and specialized retailers. The Company is one of the few large distributors

Creative Peripherals and Distribution Limited

who conduct specialized training modules, events and promotional activities at the ground level with channel partners. They also conduct workshops and demos for resellers. This is possible due to the dedication and experience of the corporate and sales teams which constantly track latest market developments to build a closer market connect.

The Company's wide reach and superior logistics capabilities helps it provide end-to-end services including warranty and post-warranty, high-level repair services, and response centres, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative Peripherals as exclusive partners and have been with the Company since over five years. The Company focuses on higher operational efficiencies and adding higher-margin and value-added products to its existing product portfolio and such brand associations are a concrete step in that direction.

For more details please visit: www.ecreativeindia.com

For further information please contact:

Company:	Investor Relations:
Abhijit Kanvinde	Rahul Trivedi / Anviksha Konnure
Chief Financial Officer	Bridge Investor Relations Private Limited
Creative Peripherals and Distribution Ltd.	Email: rahul@bridge-ir.com/
E-mail: abhijit@ecreativeindia.com	anviksha@bridge-ir.com

Note: Certain statements in this document may be forward-looking statements. Such forwardlooking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Creative Peripherals and Distribution Limited