AI assistant
CREATIVE NEWTECH LIMITED Interim / Quarterly Report 2023
62737_rns_2022-11-14_f259ed84-3ccd-49a6-92a3-85f3141fc126.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
Date: 14th November 2022
To, The Manager Listing Department National Securities Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051
Sub: Creative Newtech Limited (formerly known as Creative Peripherals & Distribution Ltd.) announces the un-audited standalone financial results for Q2 & H1 FY23
Dear Sir,
Please find attached Media Release regarding announcement of un-audited standalone financial results for Q2 & H1 FY23.
Thanking you,
For Creative Newtech Limited (Formerly known as Creative Peripherals and Distribution Limited)
Tejas Doshi Chief Compliance Officer & Company Secretary ACS – 30828
Date – 14th November 2022 Place – Mumbai
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
Media Release – Standalone
46.12% YoY growth in H1 FY23 Total income at Rs. 546.44 Cr. – driven by demand for IT & other products like Samsung, Cooler Master & Honeywell
H1 FY23 EBIDTA at Rs. 16.62 Cr., YoY growth of 31.84%, on account of higher sales
H1 FY23 Net Profit at Rs. 8.87 Cr., YoY growth of 28.31%
Basic EPS at Rs. 7.04
Mumbai, 14th November 2021: Creative Newtech Limited (NSE: CREATIVE), market specialists for experiential products in Fast Moving Social-Media Gadgets (FMSG), Fast Moving Consumer Technology (FMCT), Fast Moving Electronics Goods (FMEG), and Enterprise Business (EB) domains with a pan-India presence, announced its un-audited Standalone financial results for the second quarter and half year ended September 30th, 2022.
Key Standalone Financials (Rs. Cr.):
| Particulars | Q2FY23 | Q2FY22 | YoY% | H1 FY23 | H1 FY22 | YoY% |
|---|---|---|---|---|---|---|
| Total Income | 313.16 | 240.22 | 30.36% | 546.44 | 373.97 | 46.12 |
| EBIDTA | 9.31 | 6.72 | 38.49% | 16.62 | 12.61 | 31.84% |
| EBITDA Margin | 2.97% | 2.80% | 17bps | 3.04% | 3.37% | -33bps |
| Net Profit | 5.16 | 3.90 | 32.23% | 8.87 | 6.92 | 28.31% |
| Net Profit Margin | 1.65% | 1.62% | 3bps | 1.62% | 1.85% | -23bps |
| Basic EPS (in Rs.) | 4.09 | 3.29 | 7.04 | 5.87 |
Registered Office: 3 rd & 4 th floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: [email protected] | Website: www.creativenewtech.com
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
Performance Highlights for the quarter ended September 30th,2022:
- Total Income for the quarter was Rs. 313.16 crore in Q2 FY23, a YoY increase of 30.36%. Strong demand for brands such as Samsung, Cooler Master and Honeywell also supported growth.
- EBITDA is at Rs. 9.31 crore in Q2 FY23, YoY growth of 38.49%, mainly on the back of higher revenues.
- EBITDA Margin is 2.97%, vis-à-vis 2.80% in Q2 FY22.
- Net Profit is Rs. 5.16 crore in Q2 FY23, YoY increase of 32.23%. Net Profit Margin stood at 1.65%
- Basic EPS is Rs. 4.09
Performance Highlights for the half year ended September 30th,2022:
- Total Income for the period was Rs. 546.44 crore in H1 FY23, a YoY increase of 46.12%. Strong demand for brands such as Samsung, Cooler Master and Honeywell also supported growth.
- EBITDA is at Rs. 16.62 crore in H1 FY23, YoY growth of 31.84%, primarily due to higher revenue. EBITDA Margin is 3.04%, vis-à-vis 3.37% in H1 FY22, due to a change in products mix.
- Net Profit is Rs. 8.87 crore in H1 FY23, YoY increase of 28.31%. Net Profit Margin stood at 1.62**%**
- Basic EPS is Rs. 7.04
Recent Key Developments:
- Creative signed distribution agreement with Hyperice Inc. (amongst a leading health & fitness brand) to offer range of muscle recovery and massage products across India
- Ckart is fast gaining strong momentum and acceptance among new and existing partners – recently launched seller module in the platform
- Creative tied up with Reliance Retail to distribute a range of audio and home appliance products branded under Disney and Marvel labels, as well as lights, bulbs, fans and small domestic appliances by BPL
- Creative expanded its licensing agreement with Honeywell to include audio products and air purifiers
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
Management Comment:
Commenting on performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech Limited said:
"As we were about to overcome uncertainties related to COVID-19, the Russia- Ukraine crisis escalated. Despite the macro shocks, we believe that India's economic fundamentals are strong and keeping aside these turbulences, the impact on the long-term outlook will be marginal.
In Standalone performance for the quarter ended September 2022, we reported a 30.36% YoY growth in total income at Rs. 313.16 Cr., with EBITDA and net profit growing 38.49% and 32.23 % YoY at Rs. 9.31 Cr. and Rs. 5.16 Cr., respectively. This growth was primarily supported by demand for new and existing products from brands like Samsung, Honeywell, Cooler Master and View Sonic along with higher overseas sales.
In the first quarter, we bagged distribution rights for Lexar across India. Lexar being a global leading brand in providing memory solutions would strengthen our FMSG product segment. We are pleased to announce that we are now licensee for Honeywell across 38 countries. With the addition of the new geographies and the synergies from the Honeywell portfolio will help us scale up the business and will help us grow.
We have also expanded the Category in Samsung brand by adding their Samsung Flash Memory products into our existing arrangement with them.
As consumer sentiment and market scenario improves, we are well positioned to cater to the markets while keeping a lean and efficient business model, ensuring long-term, sustainable growth for all stakeholders.
I would like to thank the entire team for their dedication and hard work which pushes the Company forward."
Company Overview
Established in 1992, Creative Newtech Ltd (formerly known as Creative Peripherals and Distribution Ltd)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 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.
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
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 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 Newtech 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 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 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 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 centers, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative 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.creativenewtech.com
For further information please contact:
Creative Newtech Limited Mr. Tejas Doshi Chief Compliance Officer & Company Secretary [email protected]
Mr. Abhijit Kanvinde Chief Financial Officer [email protected] Ernst & Young LLP Investor Relations
Ms. Rhea Dharia [email protected]
Ms. Nikita Atri [email protected]
Registered Office: 3 rd & 4 th floor, Plot No. 137AB, Kandivali Co-op Industrial Estate Limited, Charkop, Kandivali West, Mumbai 400067 Contact No.: +91 22 50612700 | Email: [email protected] | Website: www.creativenewtech.com
(Formerly known as Creative Peripherals and Distribution Limited) CIN - L52392MH2004PLC148754
An ISO 9001:2015 Certified Company
Note: Certain statements in this document may be forward-looking statements. Such forward-looking 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 forwardlooking 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.
