Hindware Q2 & H1 FY24 Financial Results
Hindware Q2 & H1 FY24 Financial Results
Listing Department
National Stock Exchange of India
Limited Plot No. C-1, Block-G,
Exchange Plaza, 5th Floor,
Bandra Kurla Complex, Bandra (E),
Mumbai - 400 051
(NSE Symbol: HINDWAREAP)
Dear Sir/Madam,
Sub: Financial Result Presentation for the second quarter and half year ended 30.09.2023
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, please find enclosed herewith the copy of Financial Result Presentation on the unaudited
Standalone & Consolidated Financial Results of the Company for the Second quarter and half year ended
30th September, 2023.
The aforesaid presentation will also be available on the website of the Company i.e.
www.hindwarehomes.com.
You are requested to take the enclosed document on records.
For Hindware Home Innovation Limited
(Formerly known as Somany Home Innovation Limited)
PAYAL Digitally signed
by PAYAL M PURI
Payal M Puri
(Company Secretary and Sr. V. P. Group General Counsel)
Name: Payal M Puri
Address: 301-302, 3rd Floor, Park Centra, Sector-30, Gurugram-122001
Membership No.: 16068
Q2 & H1 FY24 Financial
Result Presentation
“Delivering
sustainable growth”
“With customers at
November 08, 2023 the core”
Disclaimer
This presentation has been prepared by Hindware Home Innovation Limited (formerly Somany Home Innovation Limited) (the “Company”) solely for your information and may not be distributed,
reproduced, or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly
or indirectly to any other person. By accessing this presentation, you agree to be bound by the following restrictions and to maintain absolute confidentiality regarding the information disclosed in these
materials. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any persons of such change or changes. This presentation and
its contents are confidential and may not be copied, published, reproduced or disseminated in any manner. This presentation may contain certain forward looking statements based on the currently held
beliefs and assumptions of the management of the Company which are expressed in good faith and in their opinion, reasonable. These statements include descriptions regarding the intent, belief or current
expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to
be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from any future
results, performances, or achievements. Significant factors that could make a difference to the Company’s operations include, but are not reasonable to, domestic and international economic conditions,
changes in government regulations, tax regime and other statutes. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the
Company. This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian GAAP, and should not be considered an
alternative to profit, operating revenue or any other performance measures derived in accordance with Indian GAAP or an alternative to cash flow from operations as a measure of liquidity of the Company.
In no event shall the Company be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising out of access or use or dissemination of
information contained in this presentation, including, but not limited to, loss of profits. No representation, warranty, guarantee or undertaking (express or implied) is made as to, and no reliance should be
placed on, the accuracy, completeness or correctness of any information, including any estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions
or misstatements contained herein and, accordingly, none of the Company, its advisors and representative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on
behalf of such persons accepts any responsibility or liability whatsoever, in negligence or otherwise, arising directly or indirectly from this presentation or its contents or otherwise arising in connection
therewith. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent analysis as you may consider
necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this
presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely
responsible for forming your own view of the potential future performance of the Company’s business. This presentation and its contents are not and should not be construed as a prospectus or an offer
document, including as defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009, as amended. This presentation is not for publication or distribution or release in any country where such distribution may lead to a breach of any law or regulatory
requirement. The information contained herein does not constitute or form part of an offer, or solicitation of an offer to purchase or subscribe, for securities for sale. The distribution of this presentation in
certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. None of the Company’s
securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. By accessing
this presentation, you accept that this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Delhi, and no
other courts, shall have jurisdiction over the same.
2
Business Overview
3 Distinct Channels
Sanitaryware & Faucets
Consumer Appliances
Retail Touch Points Distribution Partners Modern & Retail Outlets Omni-channel Hardware (Pipes)
35,000+ 3,100+ 700+ presence
3
About Us
▪ Hindware Home Innovation is a Consumer Appliances and Building
Hindware Home Innovation
Products Company Limited
▪ Owner of Hindware, a reliable and trusted brand across India
▪ Leveraging innovation and expansive distribution infrastructure Consumer Retail
across businesses Appliances
o Building Products Business –
• Well entrenched distribution network supported by strong Subsidiary Companies JV 50%
and efficient manufacturing and sourcing capabilities
− Leading player in sanitaryware & faucets space Evok Homes Retail Pvt.
Hindware Ltd. HPL
− Leading growth in plastic pipes and fittings Ltd. (Evok.in)
Building Products Water Heater
solutions B2C E-commerce
− Expanding manufacturing for our plastic pipes
business to cater to markets across geographies
Revenue Mix (%)
o Consumer Appliances Business – innovative offerings across 2.9 2.0 1.0
varied product categories
18.8 17.4 13.8
o Retail Business - Specialty home interior products under the
brand ‘Evok’
FY22 FY23 H1FY24
▪ Hintastica Private Limited (HPL) is a 50:50 JV with Groupe Atlantic,
a leading French Group in heating solutions globally
78.3 80.6 85.2
5
Proficient and Committed Leadership
Mr. Sandip Somany Mr. Sandeep Sikka Mr. Naveen Malik Mr. Salil Kappoor Mr. Sudhanshu Pokhriyal Mr. Rajesh Pajnoo
6
Our Environmental, Social and Governance Commitments
Environment:
Hindware Home Innovation Limited is dedicated to reducing its carbon
footprint, adopting energy-efficient technologies, and promoting the
use of recycled materials to minimize its environmental impact, in
aligning with global sustainability benchmarks.
Social:
The company prioritizes social responsibility by fostering an inclusive
workplace, ensuring employee well-being and safety, and promoting
diversity, fairness, and development opportunities. It actively engages
with stakeholders and upholds ethical standards.
Governance:
The Company values governance based on trust, transparency, and
accountability. It integrates ESG factors into its strategy, setting
ambitious sustainability goals, and actively seeking partnerships to
drive innovation and sustainability, all to ensure long-term success and
resilience.
7
Fulfilling Our Sustainability Initiatives
Waste management
Greenhouse gas emissions
Energy efficiency is practices involve process
Water efficiency includes Rooftop solar energy are reduced through on-site
achieved through daylight mapping, source segregation,
'Zero' discharge, rainwater across our plants helps in solar PV, green spaces,
harvesting, LED lights, wastewater treatment, &
harvesting, low-flow reducing carbon emissions, efficient logistics, and eco-
efficient motors, and vermi-composting for
fixtures, meter monitoring, lowering energy costs, and friendly products and
cooling, while electric organic waste which
and domestic wastewater enhancing energy processes helps in the
belling machines and helps in minimizing
recycling independence mitigation of the climate
robotics enhance efficiency environmental pollution, and
change
efficient resource utilization
8
Financial
Performance
9
Consolidated Financial Performance
(₹ in crore)
714.8 700.4
633.9 80.0 15.5
64.3 68.4
9.4% 11.1%
10
Building Products
Segment
11
Building Products Business Update
Bathware Business
Building Products Business (₹ in crore)
▪ Inflation, higher interest rates and liquidity pressures
translated to subdued demand for mid and lower-priced
products
Revenue
4% YoY
▪ Partnered with the Water Management & Plumbing Skill EBIT Margin (%)
Council (WMPSC) to upskill 5,000 plumbers within the next 84% YoY
two years 60.5
47.0
32.9
▪ Expansion through setting up of brand shops to explore new
markets remains a key focus 5.7% 9.1% 10.1%
Note: Revenue and EBIT for BPD include contribution from Bathware and Plastic Pipes & Fittings businesses
12
Bathware Business Update – Q2 FY24
(₹ in crore)
Notes:
• Above stated financials are rounded off and as per management reported figures
13
Bathware Business Update – H1 FY24
(₹ in crore)
16.4%
12.9%
9.1% 11.8%
H1FY23 H1FY24
H1FY23 H1FY24 H1FY23 H1FY24
7.5% 9.0%
Notes:
• Above stated financials are rounded off and as per management reported figures
14
Building Products Business - Bathware
▪ Leading player in sanitaryware & faucets segments
o Brands available across price points
▪ Control over the entire value chain & a strong network of distribution & service
o In-house manufacturing and sourcing capabilities of Sanitaryware and Faucets,
enchances our control over processes for improved efficiency.
o 577 Brand Stores for an immersive customer experience
o 430+ distributors, dealers and modern retail outlets
o 34,700+ active retail touchpoints
Market Size
o Catering to 1,200+ institutional clients
o A service network of 650+ technicians pan India covering more than 700+ districts,
with a TAT of 24 hours in metro markets and 48 hours in upcountry markets ₹6,000+ crore
Sanitaryware
▪ Building eco-system for accelerated growth
o Continuing engagement with both intermediaries and end-users
o Creating a platform for channel partners to manage operations efficiently ₹12,000+ crore
o Positioning Hindware as a contemporary, innovative, design-driven brand to
resonate with millennial Faucets
o Enhancing brand visibility in retail through updated product displays and store
imagery
o Expanding distribution channels to establish a nationwide presence
o Expanded our reach in the Indian tiles market, with plans to expand the network
further
• Expanded our reach in the Indian tiles market, with plans to expand the network further
15
Industry- First Innovative-Design Led Products
16
Marketing Initiatives
▪ Hindware partnered with two IPL teams Royal Challengers Bangalore &
▪ Coverage – 6 India Matches
Punjab Kings for this IPL season
▪ 2 Crore impressions served in 2 Ind-Pak Matches
▪ Launched “5 star Hotel like Bathroom” campaign featuring players from
RCB & Punjab Kings
▪ 360 degree campaign was launched on TV, OTT, Digital, Radio & BTL
activations
▪ 179M impressions were served during the campaign with a reach of
45M
17
Hindware - World Cup Presence with Super 4s
Boat Race
20
Marketing Initiatives
▪ Launched Online Reputation Management Tool – LOCOBUZZ ▪ Launch of 3D Bathroom Visualizer – Live on Hindware Website
o A platform which enables brands to listen, analyze and engage o Empowers the customers to experience the actual setting of bath
with audiences and customers across all digital platforms such products instantaneously in custom built 3D concept bathrooms
as Facebook, Twitter, Google+, Instagram, YouTube, News, Blogs
Discussion Forums etc., to ensure improved focus on customer
experience & grievance redressal
o The tool will also measure brand insights, customer behavior,
competitor insights and performance analytics across all key
digital channels to give empowering business insights on a
unified platform
21
Marketing Initiatives
▪ Queo New brand film launched with redefined brand identity & ▪ QUEO Refresh Website Launched
positioning-“Let Time Wait”
o QUEO’s brand new website with new brand story “LIVE
o 105Mn impressions on digital and OTT EXTRAORDINARY WITH QUEO” focusing on accentuation of the
brand and its products in the target consumer’s minds
o Extensive PR coverage of 150+ stories with PR value
22
Marquee Clients
23
Plastic Pipes & Fittings Business Update
▪ The Business continue its momentum towards expanding market share and presence across product portfolio
despite slight headwinds on account of muted demand in home plumbing segment
o Endeavour towards maintaining prices in line with superior quality product offering while driving volume
growth
o Sustained thrust on increasing brand awareness to further improve market share
▪ Diversified into PTMT Faucets and Accessories to offer comprehensive plumbing solutions for customers'
needs
▪ Exclusive collaboration up with RWC Reliance Worldwide Corporation to launch Truflo Sharkbite, a range of
innovative multilayer composite pipes and fittings
▪ Establishing a new manufacturing facility in Roorkee, Uttarakhand, and construction of the facility is underway
-2.8%
-3.6%
Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24
Notes :
• Above stated financials are rounded off and as per management reported figures
25
Plastic Pipes & Fittings Business Update – H1FY24
(₹ in crore)
-0.9%
H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24
Notes :
• Above stated financials are rounded off and as per management reported figures
26
Plastic Pipes & Fittings
▪ TRUFLO by Hindware, is the fastest growing plastic pipes and fittings
brand in India
o With 2000+ SKUs already being offered and many more being
added, TRUFLO aims to be amongst the top 5 CPVC players in 3
years
▪ In-house manufacturing for better efficiencies & end to end logistics
and supply chain control
▪ The Company offers CPVC pipes for hot and cold-water plumbing Market Size
applications, along with lead-free UPVC pipes, SWR pipes, PVC pipes
for potable water, column pipes and overhead water storage tanks
~₹22,000 crore
o Currently, the business has 300+ active distributors with more
than 30,000+ dealers/retail outlets TRUFLO by Hindware™,
▪ Best-in-class, NSF-certified (uses CPVC compound Durastream, addressable market size
supplied by ~US$10 Billon Sekisui Chemical Co. Ltd.)
27
Consumer
Appliances
Business
28
Consumer Appliances Business Update – Q2 FY24
(₹ in crore)
-6.9% -12.6%
Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24
Notes :
1. * Net Borrowing figure is for Hindware Home Innovation Limited on a standalone basis
2 . Above stated financials are rounded off and as per management reported figures
29
Consumer Appliances Business Update – H1 FY24
(₹ in crore)
-0.6% -4.8%
H1FY23 H1FY24 H1FY23 H1FY24
H1FY23 H1FY24
-9.6%
H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24
Notes :
1. * Net Borrowing figure is for Hindware Home Innovation Limited on standalone basis
2 . Above stated financials are rounded off and as per management reported figures
30
Consumer Appliances Business Update
▪ Consumer Business built over last 6 years with a leading position in Kitchen appliances and
growing presence in water heating and air coolers segments
▪ Revenue stood at ₹96 crore in Q2FY24 and ₹202 crore in H1FY24
o Market sentiment facing challenges on account of liquidity pressure, higher interest rates
and shifting of festival season to Quarter 3
o Market maintains a positive outlook for the upcoming festive season, driven by optimistic
market dynamics and consumer preferences
o Maintained leading position in kitchen appliances segment despite inflation and rising
competition
o Unseasonal rains impacted air coolers demand
▪ The Company has an extensive network in India with 1400+ distributors and 13,000+ retailers,
supported by a versatile commerce strategy effective in both online and offline domains
▪ With 33 patents filed since inception, providing us a distinct 'Product Differentiation' advantage
▪ Successful launch of the Hintastica Private Limited (JV) line of heating appliances at its state-
of-the-art manufacturing facility in Jadcherla, Telangana, is delivering as per expectations
31
Diverse and Exciting Products & Brands
Naveen Malik
CDR India
+91 9820637649
+91 8689972124