Philips Domestic Unlisted Shares (Versuni)
Buy - ₹520.00
Sell - ₹555.00
About Philips Domestic Unlisted Shares (Versuni)
1. About Philips Domestic Appliances India Limited
Philips Domestic Appliances India Limited, a leading name in the consumer durables sector, has cemented its place as a key player in the Indian market. Established as a wholly-owned subsidiary of Philips India Limited on July 17, 2020, the company took a significant step forward with its demerger from Philips India, which became effective on July 1, 2021. This strategic decision, approved by the Hon’ble National Company Law Tribunal in Mumbai and Kolkata, was aimed at allowing the company to focus on the growing domestic appliances space. The demerger also led to the formation of two distinct entities: Philips Domestic Appliances India Limited and Preethi Kitchen Appliances Private Limited. As a result of this demerger, Philips India shareholders were allocated equity shares in Philips Domestic Appliances India, showcasing the company’s commitment to maximizing shareholder value.
Philips Domestic Appliances India continues to build on its strong legacy, offering a wide range of products across various consumer categories, from kitchen appliances to home care products. The company’s presence in India has made it a trusted name in the household products segment, catering to a diverse range of consumers.
2. Business Divisions
Philips Domestic Appliances India operates across several key business divisions, positioning itself as a versatile player in the consumer durables industry:
- Kitchen Appliances: The company offers a variety of kitchen solutions, including juicers, air fryers, food processors, and coffee machines. These products are designed to make daily cooking tasks more convenient and efficient, helping to improve the overall kitchen experience for consumers.
- Home Care Products: Philips Domestic Appliances also caters to home care needs with products like vacuum cleaners and air purifiers. These items are crafted to enhance the comfort and cleanliness of living spaces, a growing need in today’s urban environment.
- Garment Care: The company provides garment care solutions such as irons, which are designed to deliver exceptional performance while ensuring convenience and ease of use for consumers.
- Personal Care: Philips Domestic Appliances also offers a range of personal care products, including face shavers, designed to cater to the grooming needs of its customers.
- Electronics: Philips has expanded its reach into the electronics market with products such as TVs, monitors, projectors, headphones, and speakers. This diversification helps Philips establish a broader market presence, catering to both household and entertainment needs.
3. Financial Highlights
Here are the key financial highlights of Philips Domestic Appliances India based on its P&L statement for the years 2022–2024:
- Revenue:
Philips Domestic Appliances India reported a revenue of ₹1,745 crore in FY 2024, slightly down from ₹1,781 crore in FY 2023 but still reflecting a stable performance over the years. The revenue growth from ₹1,739 crore in FY 2022 highlights the company’s ability to maintain a solid position in the market despite external pressures. - Gross Margins:
The company’s gross margin improved to 40.8% in FY 2024, up from 37.84% in FY 2023. This is a positive indicator of the company’s ability to control production costs and achieve better profitability despite challenges in the competitive consumer durables market. - EBITDA:
Philips Domestic Appliances India posted an EBITDA of ₹184 crore in FY 2024, compared to ₹204 crore in FY 2023. The EBITDA margin stood at 10.54%, demonstrating consistent profitability in core operations, although slightly lower than the previous year’s margin. - Net Profit After Tax (PAT):
The company’s PAT decreased to ₹121 crore in FY 2024 from ₹145 crore in FY 2023. The net profit margin (NPM) for FY 2024 was 6.93%, which, though slightly down from the previous year, still reflects a healthy profit generation capacity. - Earnings Per Share (EPS):
Philips Domestic Appliances India’s EPS stood at ₹21.04 in FY 2024, showing a decline from ₹25.22 in FY 2023. The decrease in EPS is aligned with the drop in net profit but still indicates strong performance in terms of profitability on a per-share basis.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Brand Legacy: Well-established global brand, trusted for high-quality and reliable consumer products.
- Diverse Product Portfolio: Wide range of products meeting the needs of various consumer segments.
- Innovation and Technology: Continual investment in R&D to introduce innovative products and stay ahead of competitors.
Cons
- Profitability Pressures: Consistent revenue growth but thin profitability margins, due to intense market competition.
- Dependence on Imports: Reliance on overseas components exposes the company to currency and supply chain risks.
- Intense Competition: Faces pressure from numerous established players in the highly competitive consumer durables market.
