PG Electroplast Limited — Earnings Release 2020

Jun 23, 2020

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Exciting opportunities in new Initiatives

Delhi (India), June 23, 2020: PG Electroplast Ltd. Pioneer and leader in the Plastic molding and Electronic Manufacturing services announced its results for the quarter ended Mar. 31, 2020, as approved by its Board of Directors.

“With government sharpening focus on MAKE IN INDIA in Appliances and consumer durable space, PGEL is well placed with its newly commissioned Room AC IDU facilities, ODM Washing machine offering own Design and Tool room capabilities. With proven Capabilities and large scale manufacturing capacities, Company today is a one one-stop solution partner and preferred vendor of choice to its OEM clients in the consumer durable & automotive space in India.” Said Shri Anurag Gupta, Chairman of the company

Key Financial Highlights:

Quarter ended Mar. 31, 2020

• Revenues of Rs. 1.83 billion – growth of 7.4% YoY

• EBITDA of Rs. 142.3 million – growth of 8.6% YoY

• PBT (pre-exceptional) of Rs. 47.9 million – decline of 26.9% YoY

12M ended Mar. 31, 2020

• Revenues of Rs 6.42 billion – growth of 25.5 % YoY

• EBITDA of Rs. 424 million – growth of 25.2% YoY

• PBT (pre-exceptional) of Rs 113 million - growth of 11.4%

• PAT of Rs 26 million – decline of 74.9% YoY

Company’s revenue mix is moving towards higher value addition

• Product Sales (Coolers, Washing Machines and Room AC IDU) have reached 24% of the total revenues in 12M FY2020

					12M-
Segment	Q-1	Q-2	Q-3	Q-4	2020
	% Mix	% Mix	% Mix	% Mix	% Mix
Plastic Moulding	75%	74%	63%	61%	68%
Electronics	5%	10%	7%	5%	7%
Mould Mnf.	1%	1%	2%	0%	1%
Product sale	19%	15%	28%	34%	24%
Total	100%	100%	100%	100%	100%

• Product Sales (Coolers, Washing Machines and Room AC IDU ) is expected to grow faster and will contribute higher percentage of Revenues going forward

Other Highlights

• PGEL’s foray into Room AC IDU (Indoor Unit) has been a big milestone this year. Company successfully commissioned the new heat exchanger and assembly line setup for AC IDU business.

• ODM washing machine business has panned out well and company received very encouraging response to its semi-automatic platforms in last fiscal. This year company is investing in new fully automatic platform and hopes to become a sizeable player in this space in coming years.

• Significant opportunities are emerging in existing and new clients due to competencies developed in last few years.

• During the year, Promoters have converted the zero-coupon loan of Rs 50 Mn into Equity, thus further strengthening the balance sheet.

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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 durable & automotive plastics space in India. In coming quarters, company aspires

• To have Industry leading growth in the Revenues

• Gradual improvement in margins due to operational efficiencies and operating leverage

• Better capital efficiency due to improving cash flows and balance sheet optimisation

About PG Electroplast Ltd.

PG Electroplast [NSE:PGEL] is a trusted partner for Plastic Molding and Electronic Manufacturing Services for leading consumer durable and automotive plastic companies in India. Company has one of the biggest capacities in the Plastic Injection molding and has capabilities across the value chain in the Electronic manufacturing services(EMS).

Safe harbour

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. We do not undertake to update any forwardlooking statement that may be made from time to time by us or on our behalf.

Visit us at www.pgel.in. For more information, contact

investors@pgel.in