Butterfly Gandhimathi Appliances Ltd. Announces its Results for Q1 FY24
Tuesday, 1 August 2023
· Q1 Revenue at Rs. 219 Crs
· Significant improvement in Material Margins to 42% (+650 bps YoY)
· PAT at Rs. 15 Cr, growth of 11%Butterfly Gandhimathi Appliances Ltd. ('Company'), South-India's leading kitchen and small domestic appliances player, reported its standalone financials for the first quarter ended 30^th June 2023.*Operational and Financial Highlights*
· *Revenue at Rs. 219 Crs* (-14% YoY). Continued the strategic restructuring of channel mix in favour of Trade. This led to *strong double-digit growth in B2C channels**such as Retail, Modern Trade, Chain stores* across categories, while de-risking Corporate channel.
· Online channel faced subdued growth due to conscious phasing aligned to secondary offtakes.
· *Share of business from new products at 14%* of Total Q1 Sales.
· Marketing investments continued in Q1. Carried out several ATL & BTL activities to support new product launches, strengthen the 'Butterfly' brand and increase consumer awareness.
· Company's market position remained relatively unchanged even though the industry continues to face demand challenges.
· As part of its expansion outside South, investments made in manpower both at front and back end.
· Material Margin at 42%, expansion of 650 bps YoY. *Significant improvement in Material Margins driven by rebound in Trade channel along with value engineering.*
· EBITDA at Rs. 20 Crs. *EBITDA Margin at 9.0% post investments in marketing and people.*
· *PAT at Rs. 15 Crs (+11% YoY).**PAT Margin at 6.7%, expansion of 150 bps YoY.*
Commenting on the performance,* Rangarajan Sriram, Managing Director, Butterfly Gandhimathi Appliances Ltd. *said, "Through our strategic focus on channel restructuring, we continue to drive sustainable growth in B2C channels such as retail outlets, modern trade, chain stores and e-commerce, while de-risking non-core channels. This led to Revenue of Rs. 219 Crs for the quarter amidst a challenging demand situation and strong Material Margins of ~42% (+650 bps YoY) on account of improvement in channel mix and value engineering. EBITDA Margin stood at 9.0% for the quarter.With the merger of Butterfly and Crompton underway, there is an opportunity to start realizing Go-to-Market synergies as we endeavour to improve Butterfly's reach in the Western and Northern markets. Our focus on new premium product launches continues in addition to driving improvements in non-retail channel, especially e-commerce, through product, pricing and marketing interventions."
*BGMAL Financials*
*Particulars (Rs. Crs)*
*Q1 FY24*
*Q1 FY23*
*Y-o-Y*
*Q4 FY23*
*Q-o-Q*
Revenue
219
253
-14%
187
+17%
Material Margin
92
90
+2%
73
+25%
Material Margin (%)
42.0%
35.5%
+650 bps
39.3%
+270 bps
EBITDA
20
26
-24%
8
152%
EBITDA Margin (%)
9.0%
10.2%
-120 bps
4.2%
+480 bps
PAT
15
13
11%
2
844%
PAT Margin (%)
6.7%
5.2%
+150 bps
0.8%
+590 bps
*About Butterfly Gandhimathi Appliances Ltd.*
'Butterfly' is amongst the Top 3 Brands in India in kitchen and small domestic appliances. It is a reputed brand with high consumer recall in South, known for Aesthetics and Product Quality. It has a diverse product portfolio, with variants adapted to meeting consumer needs. It has 4 core products - Mixer Grinders, Pressure Cookers, Gas Stove, Wet Grinders and backed by a full suite of small domestic appliances. It has a state-of-art in-house manufacturing setup with strong backward integration.
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