Elin Electronics Limited — Investor Presentation 2024

Nov 12, 2024

Lata Rani Digitally signed by Lata Rani Pawa Pawa Date: 2024.11.12 14:24:00 +05'30'

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Elin Electronics Limited Q2 & H1FY25 Earnings Presentation November 2024

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Q2FY25 Snapshot
Total Income EBITDA Profit After Tax
INR 3,071 million INR 113 million INR 48 million
up ~11% YoY from up ~15% YoY from up ~ 22% YoY from
INR 2,754 million INR 99 million INR 39 million
Net Cash / (Debt) Net WC Days
INR 984 million ~ 58 days
from from
INR 823 million ~63 days
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Q2FY25 & H1FY25 Snapshot

INR million	Q2-FY24	Q2-FY25	Q1-FY25	Q2-FY25	H1FY24	H1FY25
Revenue	2,733	3,046	2,936	3,046	5,272	5,981
EBITDA	99	113	133	113	196	246
Margin %	3.6%	3.7%	4.5%	3.7%	3.7%	4.1%
PAT	39	48	59	48	77	107

 Revenue grew ~11% on a YoY basis and ~4% on a QoQ basis:

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• YoY growth was largely on account of better volume growth in motors as well as small appliances which was partially offset by weakness in the lighting & fans category

• Non EMS business i.e. precision components and medical cartridge business showed reasonable growth YoY

 EBITDA was impacted primarily because of:

• Increase in material costs with RMC to sales ratio increasing from 74.3% to 75.2% on a YoY basis

• Non cash provisions amounting to INR 3.5 million pertaining to ESOP granted to senior management

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Revenue Breakdown
INR million
Q2-FY24 Q2-FY25 Q1-FY25 Q2-FY25 H1FY24 H1FY25
796 666 894 666 1,628 1,560
Lighting, Fans & Switches
690 829 636 829 1,216 1,465
Small Appliances
FHP Motors 557 741 656 741 1,098 1,398
85 111 111 178 250
Other EMS 140
Total EMS 2,128 2,347 2,327 2,347 4,121 4,674
Precision Components & Others 597 661 607 661 1,137 1,268
8 38 38 14 40
Medical Cartridges 2
Total Non-EMS 605 699 609 699 1,151 1,308
Total Revenue 2,733 3,046 2,936 3,046 5,272 5,981
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Revenue Breakdown

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Expenditure Analysis
Q2-FY24 Q2-FY25 Q1-FY25 Q2-FY25 H1FY24 H1FY25
Cost of Material Consumed 74.3% 75.2% 73.6% 75.2% 74.0% 74.4%
Employee Benefits 14.1% 14.1% 14.6% 14.1% 14.2% 14.4%
Other Expenses 8.0% 7.0% 7.3% 7.0% 8.1% 7.2%
EBITDA 3.6% 3.7% 4.5% 3.7% 3.7% 4.1%
Finance Costs 0.5% 0.7% 0.6% 0.7% 0.8% 0.6%
Depreciation 1.7% 1.8% 1.9% 1.8% 1.8% 1.9%
Profit Before Tax 2.1% 2.1% 2.7% 2.1% 2.0% 2.4%
Tax 0.7% 0.5% 0.7% 0.5% 0.6% 0.6%
Profit After Tax 1.4% 1.6% 2.0% 1.6% 1.5% 1.8%
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Lighting, Fans & Switches

INR million	Q2-FY24	Q2-FY25	Q1-FY25	Q2-FY25	H1FY24	H1FY25
Lighting	643	500	634	500	1,239	1,135
Flashlights	55	61	105	61	159	166
Fans	66	87	126	87	170	213
Switches	32	18	28	18	60	47
Total	796	666	894	666	1,628	1,560

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• Lighting revenue declined ~22% YoY as the industry continues to face impact of weak volume demand as well as price erosion

• As of April 2024, we are out of exclusivity with Signify for a certain basket of products, they have further committed that they will also waiver the balance categories over the next few quarters

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• We have initiated discussions with potential new customers already, expect progress in next few quarters

• Flashlights showed marginal growth on YoY basis

• Fans revenue improved YoY on better volumes; this was on the back of better offtake in the TPW fans category which was offset by some weakness in ceiling fans due to seasonality impact

5

Small Appliances

INR million	Q2-FY24	Q2-FY25	Q1-FY25	Q2-FY25	H1FY24	H1FY25
Kitchen & Home Care	459	494	395	494	795	888
Personal Care	231	336	242	336	422	577
Total	690	829	636	829	1,216	1,465

• Kitchen & home care revenue grew by ~8% YoY largely on the back of better volumes in bar blender and irons, single digit decline in mixer grinder volumes

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• Capacity utilization continues to be sub optimal across categories

• Personal care segment showed strong growth of ~45% on the back of addition of new products such as sterilizers, heated hair brush and new model of trimmer

• Strong volume growth in hair dryers whereas volumes were flat in hair straighteners

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Fractional Horsepower Motors

INR million	Q2-FY24	Q2-FY25	Q1-FY25	Q2-FY25	H1FY24	H1FY25
Consumer Durables	481	612	471	612	896	1,084
Fans	43	68	120	68	120	187
Others	33	61	65	61	82	127
Total	557	741	656	741	1,098	1,398

 Motors of Consumer durables comprise mixer grinders, hand blenders and chimney

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 YoY growth was led by strong volume growth primarily in mixer grinder motors and chimney motors

 Fan motors was up YoY led by better volumes; declined QoQ because of impact of seasonality

 Others represents sale of synchronous motors and submersible pumps

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Capex Overview (H1FY25)

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	Ghaziabad	Baddi	Goa	Total
Land & Building	97.1	-	-	97.1
Plant & Machinery	37.7	2.4	19.3	59.4
Electrical Installation	6.2	0.2	0.4	6.8
Tools, Dies & Moulds	29.3	6.6	2.6	38.5
Others	13.6	2.2	0.5	16.3
Total	183.9	11.4	22.8	218.1

• Capex in Q2FY25 was INR 183 million, largely on account of INR 97 million of building in Ghaziabad – this will be used largely for production of OFR, OTG and TPW fans

• Plant & Machinery represents addition of machinery primarily for OFR, OTG and TPW fans

• Tools, Dies & Moulds, represent tooling development for new products

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Status of New Product Launches
Description Category Current Status
Trimmer 3000 Small Appliances Launched in Q2FY25
Electric Kettle Small Appliances Product under development, launch in FY25
Oil Filled Radiator Small Appliances Launched in Q2FY25
Chimney Small Appliances Product under development, launch in FY26
OTG Small Appliances Product under development, launch in FY25
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Thank You

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