16th June, 2022

Q4FY22 RESULT UPDATE

Retail Equity Research

Schneider Electric Infrastructure Ltd. Accumulate
Industrials 12 Months Investment period Rating as per Small Cap
BSE CODE: 534139 NSE CODE: SCHNEIDER CMP Rs. 106 TARGET Rs. 122 RETURN 16%
(Closing: 15-06-22)
Bloomberg CODE: SCHN:IN SENSEX: 52,541

KEY CHANGES: TARGET RATING EARNINGS

Company Data
Strong performance; Positive outlook Market Cap (cr) Rs. 2,507
Schneider Electric drives digital transformation by integrating world- Enterprise Value (cr) Rs. 2,982
leading process and energy technologies, endpoint to cloud connecting Outstanding Shares (cr) 24.0
products, controls, software, and services, across the entire lifecycle, Free Float 25.0%
enabling integrated company management, for homes, buildings, data Dividend Yield 0.0%
center, infrastructure and industries. 52 week high Rs. 154
• Revenue increased to Rs. 340cr in Q4FY22 (+37.6% YoY) driven by 52 week low Rs. 99
strong growth momentum in order. Adj. PAT grew by a significant 6m average volume (lacs) 1.1
125.3% YoY to Rs. 2.7cr. Beta 0.9
• EBITDA margin came in at 5% (+700bps YoY), aided by managements Face value Rs. 2
actions to mitigate raw material inflation impact. Shareholding % Q2FY22 Q3FY22 Q4FY22
• We expect the company to continue its growth momentum. We assign a Promoters 75.0 75.0 75.0
BUY rating on the stock with a target price of Rs. 122 based on 34.5x FII’s 0.2 0.3 0.3
FY24E EV/EBITDA. MFs/Insti 3.2 2.2 2.2
• Public 17.2 17.2 17.2
Topline led by strong growth momentum in order Others 4.3 5.3 5.3
Revenue grew 37.6% YoY to Rs. 340cr in Q4FY22 aided by strong growth momentum Total 100.0 100.0 100.0
in order. Orders grew 46% YoY to INR5,040 million in Q4FY22. EBITDA rose by 448.6% Promoters’ pledge 0.0 0.0 0.0
YoY to Rs. 17cr in Q4FY22. Company has been able to solve issues with customers due Price Performance 3 Month 6 Month 1 Year
to sight readiness or the liquidity issues and that have helped in maximizing the
Absolute Return -3.0% -2.1% -18.1%
revenue. Gross margin for the quarter was about 29.2%, decreased by (-6.4%) points
Absolute Sensex -6.7% -9.3% 0.3%
versus last year. EBITDA margin came in at 5% (+700bps YoY), as company has been
able to partly pass on raw material inflation impact to customers, also actions on the Relative Return* 3.7% 7.2% -18.4%
overall structural costs helped to mitigate impact. Adj. PAT grew by 125.3% YoY to Rs. *over or under performance to benchmark index
2.7cr.
160 SCHNEIDER Sensex Rebased
Key concall highlights
• As a result of 46% order growth, backlog at the end of financial year has increased
140
by about 24% versus same period last year, so which shows a good pipeline for
the sales in the next year.
• Bhutan Engineering, BSCS, GE T&D, Torrent Power, Humboldt etc. have been the 120
major customers.
• For the first time Schneider Electric Infrastructure Ltd have crossed INR1,500 100
crores mark in one year. Jun-21 Sep-21 Dec-21 Mar-22 Jun-22

Roadmap ahead...
Consolidated (cr) FY22A FY23E FY24E
The economy currently is inflationary, which has been a result of solid demand coming Sales 1,530 1,648 1,802
back post COVID also due to the Ukraine war, commodities are at all-time high and Growth (%) 18.0 7.7 9.4
there are severe shortages in the market. Company probably will see a little bit of
EBITDA 86 90 98
turbulence going ahead. Considering the various announcements by the Government
EBITDA Margin (%) 5.6 5.5 5.5
of India on modernizing the grade, improving the digitization in the utilities, there is a
solid runway for growth as far as both generation and distribution of electricity is Adj. PAT 30 33 40
concerned. The positive momentum in the construction sector, Transportation and Growth (%) 151.8 10.4 18.5
data centers are expected to generate solid demand. Adj. EPS 1.3 1.4 1.7
Growth (%) 167.3 10.4 18.5
Valuation P/E 93.3 75.2 63.5
With robust growth in topline and strong growth momentum in order across all the P/B 78.1 36.1 23.0
segments, we expect the business to continue its growth. Raw material inflation may EV/EBITDA 38.1 33.1 30.7
remain a concern, however company has been able mitigate the impact by price hikes ROE (%) 76.5 48.0 36.3
and cost optimization actions. We expect earnings to grow at healthy 34% CAGR over D/E 13.8 7.6 5.3
FY22-24E. We assign a BUY rating with a target price of Rs.122 based on 34.5x FY24E
EV/EBITDA.

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Quarterly Financials (Consolidated)
Profit & Loss Account
YoY QoQ YoY
Q4FY22 Q4FY21 Q3FY22 FY22 FY21
Growth % Growth % Growth %
Revenue 340 247 37.6 600 (43.4) 1,530 1,297 18.0
EBITDA 17 (5) n.m. 67 (74.8) 86 64 35.0
EBITDA margins 5.0 (2.0) n.m. 11.2 (620bps) 5.6 4.9 70bps
Depreciation 4 5 (19.6) 4 (3.4) 17 22 (21.8)
EBIT 13 (10) n.m. 63 (79.9) 69 42 65.1
Interest 13 11 14.9 12 5.0 48 48 0.6
Other Income 3 11 (72.1) 2 56.0 10 19 (46.5)
Exceptional Items (3) (1) (274.1) - n.m. (3) (13) 80.0
PBT 0 (11) n.m. 52 (99.9) 28 (1) n.m.1
Tax - - n.m. - n.m. - - n.m.
Share of profit from
- - n.m. - n.m. - - n.m.
Associate
Minority Interest - - n.m. - n.m. - - n.m.
Reported PAT 0 (11) n.m. 52 (99.9) 28 (1) n.m.
Adjustments 3 1 274.1 - n.m. 3 13 (80.0)
Adj. PAT 3 (11) n.m. 52 (94.9) 30 12 151.8
No. of shares 24.0 24.0 - 24.0 - 24.0 24.0 -
Adj. EPS (Rs.) 0.1 (0.4) n.m. 2.2 (94.9) 1.3 0.5 151.8

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PROFIT & LOSS BALANCE SHEET
Y.E March (Rs. cr) FY20A FY21A FY22A FY23E FY24E Y.E March (Rs. cr) FY20A FY21A FY22A FY23E FY24E
Revenue 1,384 1,297 1,530 1,648 1,802 Cash 13 23 36 54 77
% change 0.0 (6.3) 18.0 7.7 9.4 Accounts Receivable 421 426 443 494 559
EBITDA 27 64 86 90 98 Inventories 218 220 226 245 282
% change 11.8 136.7 35.0 4.6 9.1 Other Cur. Assets 78 93 76 91 109
Depreciation 22 22 17 20 21 Investments 12 3 6 7 8
EBIT 5 42 69 70 77 Gross Fixed Assets 299 308 333 366 411
Interest 48 48 48 46 47 Net Fixed Assets 311 300 308 320 344
Other Income 13 6 7 10 10 CWIP 3 8 5 5 6
PBT (30) (1) 28 33 40 Intangible Assets 3 0 0 0 0
% change 21.4 (96.6) (2832.1) 20.7 18.5 Def. Tax (Net) 27 28 30 33 37
Tax - - - - - Other Assets 32 47 40 43 47
Tax Rate (%) - - - - - Total Assets 1,119 1,149 1,170 1,294 1,468
Reported PAT (30) (1) 28 33 40 Current Liabilities 608 578 607 665 744
Adj* (1) 13 3 - - Provisions 19 21 19 21 24
Adj PAT (31) 12 30 33 40 Debt Funds 478 538 499 529 582
% change (950.1) (138.8) 151.8 10.4 18.5 Other Liabilities 12 8 8 9 10
No. of shares (cr) 23.9 25.3 23.8 23.8 23.8 Equity Capital 48 48 48 48 48
Adj EPS (Rs.) (1.3) 0.5 1.3 1.4 1.7 Reserves & Surplus (46) (44) (12) 22 61
% change (951.4) (136.6) 167.3 10.4 18.5 Shareholder’s Fund 1 4 36 69 109
DPS (Rs.) - - - - - Minority Interest - - - - -
CEPS (Rs.) (0.4) 1.3 2.0 2.3 2.5 Total Liabilities 1,119 1,149 1,170 1,294 1,468
BVPS (Rs.) 0 0 2 3 5

CASH FLOW RATIOS

Y.E March (Rs. cr) FY20A FY21A FY22A FY23E FY24E Y.E March FY20A FY21A FY22A FY23E FY24E
Net inc. + Depn. (8) 21 45 54 61 Profitab. & Return
Non-cash adj. 32 21 65 40 39 EBITDA margin (%) 1.9 4.9 5.6 5.5 5.5
Changes in W.C (19) (35) 10 (28) (39) EBIT margin (%) 0.4 3.2 4.5 4.2 4.3
C.F. Operation 4 8 120 66 61 Net profit mgn.(%) (2.1) (0.1) 1.8 2.0 2.2
Capital exp. (13) (10) (25) (33) (45) ROE (%) (2,102.0) (28.5) 76.5 48.0 36.3
Change in inv. - - - - - ROCE (%) 1.1 7.7 12.9 11.7 11.2
Other invest.CF (0) 0 0 - - W.C & Liquidity
C.F – Investment (13) (9) (25) (33) (45) Receivables (days) 111.0 120.0 105.7 109.5 113.2
Issue of equity - - - - - Inventory (days) 81.1 89.7 76.2 76.7 80.3
Issue/repay debt 36 42 (52) 30 53 Payables (days) 165.5 174.2 155.0 157.0 160.6
Dividends paid - - - - - Current ratio (x) 1.0 1.0 1.1 1.1 1.2
Other finance.CF (34) (31) (30) (45) (46) Quick ratio (x) 0.6 0.6 0.7 0.7 0.7
C.F – Finance 2 11 (82) (15) 7 Turnover & Leverage
Chg. in cash (7) 9 13 18 23 Gross asset T.O (x) 4.2 4.3 4.8 4.7 4.6
Closing cash 13 23 36 54 77 Total asset T.O (x) 1.2 1.1 1.3 1.3 1.3
Int. coverage ratio (x) 0.1 0.9 1.4 1.5 1.6
Adj. debt/equity (x) 339.6 151.8 13.8 7.6 5.3
Valuation
EV/Sales (x) 1.5 2.2 2.1 1.8 1.7
EV/EBITDA (x) 75.3 45.5 38.1 33.1 30.7
P/E (x) (50.6) 199.0 93.3 75.2 63.5
P/BV (x) 1,112.0 673.6 78.1 36.1 23.0

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Recommendation Summary (Last 3 Years) Dates Rating Target
160 16-Jun-22 Accumulate 122

120

80

40

0
Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22

Source: Bloomberg, Geojit research

Investment Rating Criteria

Ratings Large caps Midcaps Small Caps
Buy Upside is above 10% Upside is above 15% Upside is above 20%
Accumulate - Upside is between 10%-15% Upside is between 10%-20%
Hold Upside is between 0% - 10% Upside is between 0%-10% Upside is between 0%-10%
Reduce/sell Downside is more than 0% Downside is more than 0% Downside is more than 0%
Not rated/Neutral

Definition:
Buy: Acquire at Current Market Price (CMP), with the target mentioned in the research note.
Accumulate: Partial buying or to accumulate as CMP dips in the future.
Hold: Hold the stock with the expected target mentioned in the note.
Reduce: Reduce your exposure to the stock due to limited upside.
Sell: Exit from the stock.
Not rated/Neutral: The analyst has no investment opinion on the stock.

To satisfy regulatory requirements, we attribute ‘Accumulate’ as Buy and ‘Reduce’ as Sell.

The recommendations are based on 12 month horizon, unless otherwise specified. The investment ratings are on absolute positive/negative return
basis. It is possible that due to volatile price fluctuation in the near to medium term, there could be a temporary mismatch to rating. For reasons of
valuations/ return/lack of clarity/event we may revisit rating at appropriate time. Please note that the stock always carries the risk of being upgraded
to BUY or downgraded to a HOLD, REDUCE or SELL.

General Disclosures and Disclaimers

CERTIFICATION
I, Cyril Charly, author of this Report, hereby certify that all the views expressed in this research report reflect our personal views about any or all of the
subject issuer or securities. This report has been prepared by the Research Team of Geojit Financial Services Limited, hereinafter referred to as Geojit.

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Digitally signed by CYRIL CHARLY

CYRIL CHARLY
DN: c=IN, o=GEOJIT FINANCIAL SERVICES LIMITED, ou=EXECUTIVE,
pseudonym=944b78b0174ad56fbc2a96f48e28dcf2600dbf9866d82b4d
40d346999a31baf1, postalCode=682024, st=KERALA,
serialNumber=3bc013f21f1e22e847d67e2ea38f360042f168799ac754ef
6948246c706f69a8, cn=CYRIL CHARLY
Date: 2022.06.16 14:49:06 +05'30'

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