Aditya Vision Ltd. · NSE:AVL
Aditya Vision — Q1 FY25 Earnings Presentation
36 slides from Aditya Vision's earnings presentation, Jul 29, 2024
Slide 1: Submission of Investor Presentation to BSE
R R R Aditya Vision Limited R R R R R Date- July 29, 2024 BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 SCRIP Code: 540205 Sub:- Submission of Investor Presentation Dear Sir(s) With reference to the above captioned subject, please find attached herewith Investor Presentation for
Slide 2: 25 Years: A legacy of Promise, Performance & Progress
25 Years: A legacy of Promise, Performance & Progress Investor Presentation July 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Aditya Vision Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not form the
Slide 4: Table of Contents
Table of Contents 4-10 Q1FY25 Highlights 13-23 Business Overview 24-26 Historical Performance 27-32 Industry Overview 33-43 Appendix Q4FY24 Earnings Presentation 3
Slide 5: Q1FY25 Financial Highlights
Q1FY25 FINANCIAL HIGHLIGHTS 4
Slide 6: Q1FY25: PAT Growth Surpasses Revenue Growth
Q1FY25: PAT Growth Surpasses Revenue Growth 01 Opened five new Stores, Store count touched 150 02 Summer season in Q1 resulted in revenue growth of 39% YoY; AC growth 56% 03 Profit growth of 42% surpasses revenue growth of 39% 04 Reduction in Inventories by Rs 66cr In Q1, Aditya Vision has demonstra
Slide 7: Q1FY25 Financial Performance
Q1FY25 Financial Performance (Rs. in Cr) Revenue EBITDA PBT PAT 39% 35% 47% 42% 889 85 72 53 Q1FY25 63 641 49 37 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Margins 9.9% 9.6% 7.7% 8.1% 5.8% 6.0% 6
Slide 8: Q1FY25 Financial Performance
Q1FY25 Financial Performance Particulars (Rs in Cr) Q1FY25 Q1FY24 YoY% Q4FY24 QoQ% Revenue from Operations 888.8 641.2 39% 375.7 137% Total Expenditure 803.7 577.9 39% 338.0 138% EBITDA 85.1 63.3 34% 37.7 126% EBITDA Margin % 9.6% 9.9% -- 10.0% -- Depreciation 8.2 6.3 9% 7.5 9% Profit Before Interes
Slide 9: FY24 Snapshot
FY24 Snapshot 2x Topline in 2 years 100+ Stores in Bihar Nearly doubled its topline in just 2 years Strong Brand Patronage – Crossed 100 stores in Bihar Strong Inroads in UP in a short span Fund Raise from Marquee Investor Started expanding in UP in Q4FY23; now Successfully raised growth capital fro
Slide 10: Roadmap Ahead
Roadmap Ahead Targeting to grow at 20-25% Revenue CAGR over the next 3 – 5 years Progressing towards Central UP from Eastern UP. Business is ready to scale beyond Bihar, Jharkhand & Uttar Pradesh to adjoining states in the “Hindi Heartland” over the next 3-5 years based on “Creeping Cluster Approach
Slide 11: Business Overview
BUSINESS OVERVIEW 10
Slide 12: Aditya Vision at a Glance
Aditya Vision at a Glance Patna Headquarters 50%+ Mkt Share Largest Electronic 100% Retail 10,000+ In Bihar as per Crisil Report Retailer Sales Products sold at our in Jharkhand Outlets 150 Showrooms As on 30th June 100+ 1st Consumer Rs 282 cr 4,000+ Long Term Relationships 2016 Avg store size First
Slide 13: 25 years of Aditya Vision – Sambandh Bharose ka
25 years of Aditya Vision – Sambandh Bharose ka 2024: First fund raise after IPO from the one of the World’s largest FII – Capital Group Opened 18 stores in UP in one year Crossed 100 stores in Bihar 2016: 1st Consumer Electronics Company to be listed 2023: Started expanding in UP ; on Exchange Beca
Slide 14: Our Driving Principles
Our 5 Driving Principles Customer-centric Large Supplier Scaling up business Prudent Capital Building a people- approach based on base (Brands) to pass on better Allocation with centric culture within providing Best selling their prices to customers Strong Corporate a technology-driven Range, Lowest
Slide 15: Unique Business Model
Unique Business Model OEM Supply Customer Service ▪ 85% Direct OEM Supply leading ▪ Aditya Seva - One-stop solution for to higher margins after-sales services. ▪ 15% Distributors/C&F Agents ▪ Aditya Suraksha – Allows customers to ▪ Long-term relationships with enjoy an extended warranty 100+ brands
Slide 16: Store Unit Economics At A Glance
Store Unit Economics At A Glance Rs 60-70 lacs 150 (as on 30 June) th 13-15% Average Capex per Store Outlets in Bihar + Jharkhand + UP Gross Margin Range --------------------------------------------------- ----------------------------------------------- ----------------------------------------- Rs 2
Slide 17: Business Economics
Business Economics (% of Sales) FY20 FY21 FY22 FY23 FY24 Gross Margin (%) 11% 12% 16% 16% 16% Gross Margin has increased with scale Employee Cost 3% 3% 3% 3% 3% Low store-level employee cost Rent* 1% 2% 2% 2% 2% Average rent of Rs 2 – 2.25 lacs p.m/store. Advertisement & Publicity 1% 1% 1% 1%
Slide 18: Strategic Focus on Hindi Heartland Region
Strategic Focus on Hindi Heartland Region V BIHAR - 105 STORES (Present in all 38 districts) People living in Bihar, Jharkhand & UP JHARKHAND - 25 STORES constitute 30% of India’s Population (20 Districts Covered out of 24 Districts) • Estimated Population of Bihar: 13 crores UTTAR PRADESH - 20 STOR
Slide 19: Revenue Seasonality of the Business
Revenue Seasonality of the Business Quarterly Share of Revenue(%) Peak Summer Season + Marriage Season + Strong Q1 35% Demand for Cooling Products + Major Stocking up prior to this quarter Q2 19% Weaker Quarter owing to Monsoon + Shraadh months Q3 24% Festive Season with attractive Brand Offers Marr
Slide 20: Historical Performance
HISTORICAL PERFORMANCE 19
Slide 21: Historical Financial Highlights
Historical Financial Highlights Revenue EBITDA PAT 167 77 1,743 133 CAGR – 57% 64 CAGR: 33% CAGR: 47% 1,322 899 83 35 748 53 20 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Margins 7.1% 9.2% 10.1% 9.6% 2.7% 3.9% 4.9% 4.4% Net Debt to EBITDA (x) Net Debt to Equity (x) 1.6 1.5 1.4 1.4 1
Slide 22: Historical Financials and Operational Performance
Historical Financials and Operational Performance Working Capital Days* 106 98 87 83 91 77 66 45 53 19 17 13 FY21 FY22 FY23 FY24 *Receivable Days are less than 0 since the Company has negligible Trade Receivables **Payables & Inventory Days is calculated based on Purchases and Cost of Goods Sold res
Slide 23: Focussed on Growth
Focussed on Growth High Growth Trajectory while maintaining Return Ratios Gross Margin % ROCE & ROE* (%) 15.8% 16.0% 16.0% 12.3% 10.7% 60% 48% 55% 46% 2020 2021 2022 2023 2024 43% With Size, our Gross Margins have improved keeping customer value in focus. 24% 29% 28% 24% 25% PAT Margin % ROCE 4.9% R
Slide 24: Industry Overview
ADITYA VISION Industry Overview
Slide 25: Powering India's Retail Surge: Driving Consumer Spending Growth
Powering India's Retail Surge: Driving Consumer Spending Growth Consumer Durables Market Growth (Rs Trn) Shift in Consumption Pattern towards Non-Food Categories CAGR % share of monthly per capita consumption exp 11-15% 700ps 400bps CAGR 8% 57% 61% 54% 47% 2011-12 5.1 2022-23 3.1 3.6 2.1 2.4 Rural U
Slide 26: Low Penetration and Rising Premiumization is in favor for AVL
Low Penetration and Rising premiumization is in favor for AVL Share of Split ACs is on a rise Demand for Fully Automated WMs continuously rising Penetration in India (%) Window Split Semi Fully 60% 57% 62% 73% 81% 35% 43% 38% 27% 19% FY17 FY22 FY17 FY22 10% 8% 6% Share of Bigger Size TV Increasing F
Slide 27: Market Penetration & Opportunity in Hindi Heartland
Market Penetration & Opportunity in Hindi Heartland Source: www.statsofindia.in , Business Standard 26
Slide 28: Electricity Consumption Growth In Hindi Heartland States
Electricity Consumption Growth In Hindi Heartland Sates vs Other States has grown by 2x 211% ~2.1x 171% ~1.7x 164% ~1.6x 139% ~1.4x 130% ~1.3x 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Bihar Jharkhand Uttar Pradesh Maharashtra Gujarat Source: Central Electricity Authority, MoSPI *The startin
Slide 29: Hindi Heartland– Engine for Aditya Vision's Sustainable Growth
Hindi Heartland– Engine for Aditya Vision’s Sustainable Growth India’s 3rd largest Ranked 11th in economy - 8% India in terms of FDI contribution to inflows National GDP UTTAR Attractive economics of Bihar and Jharkhand PRADESH Breached $1000 Ranked 7th in the In the recent Union Budget, govt total
Slide 30: Shift from Unorganised to Organised
Shift from Unorganised to Organised: Aditya Vision is well Positioned to benefit Rapid Shift from Overall Un-Organised to Organised sector in Indian Consumer’s Durable Industry Organised Unorganised 23% 42% 51% 77% 58% 49% FY16 FY21 FY27P Organised Sector to Grow Faster than Overall Consumer Electro
Slide 31: Appendix
APPENDIX 30
Slide 32: Our Trade Partners
Our Trade Partners Our Consumer Finance Partners ~41% Sales Financed in FY24 31
Slide 33: Board of Directors
Board of Directors Yashovardhan Sinha Nishant Prabhakar Yosham Vardhan Sunita Sinha Chairman & Managing Director Whole Time Director Whole Time Director Non-Executive Director ✓Promoter, Chairman and ✓ Promoter and Whole-time ✓ Promoter and Whole-time ✓ Founder, Promoter and Non- Managing Director D
Slide 34: Independent Directors
Independent Directors ` Ravinder Zutshi Nusrat Syed Hassan Apeksha Agiwal Atul Sinha Rahul Kumar Independent Director Independent Director Independent Director Independent Director Independent Director ✓45+ years of experience in ✓Managing Director at ✓Highly qualified ✓35+ years at UCO Bank in ✓Qua
Slide 35: In-Store Photo Gallery
In-Store Photo Gallery 34
Slide 36: Thank You
Thank You For further information, please get in touch with: Aditya Vision Ltd. Ms. Akanksha Arya-Company Secretary Tel: +91-612-2520854 | Email: cs@adityavision.in www.adityavision.in Investor Relations Contact: Monali Jain – Research Analyst Tel: +91-8078675682 Email: monali@goindiaadvisors.com Sh