Bhatia Communications & Retail (india) Ltd. · BSE:BHATIA
Bhatia Communications & Retail (india) — H2 FY2019 Earnings Presentation
33 slides from Bhatia Communications & Retail (india)'s earnings presentation, June 2019
Slide 1: Cover letter to BSE on half yearly results
BHATIA COMMUNICATIONS 8: RETAIL (INDIA) LIMITED CIN: L32109GJ2008PLC053336 BHATIA•s® Regd Off: 132, Dr. Ambedkar Shopping Centre, Ring Road, Surat-395002 The mob(i)le one stop shop Email: info@bhatiamobile.com, Ph: 0261-2349892 Website : www.bhatiamobile.com Date: 15lo:tl.2.o19 To BSE Limited Phiroz
Slide 2: 2nd Half Year Ended & FY19 Update
BHATIA COMMUNICATIONS & RETAIL (INDIA) LIMITED 2nd Half Year Ended & FY19 Update
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bhatia Communication & Retail Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 4: Content
CONTENT • Key Financials • Company at a Glance • Sector Overview
Slide 5: Key Financials Highlights H2 FY19
Key Financials Highlights H2 FY19 Total Revenue EBITDA PAT INR INR INR H2 FY19 919 Mn 46 Mn 28 Mn 12% YoY 3% YoY 16% YoY 3.5% Growth from H1 19% Growth from H1 21% Growth from H1 FY2019 FY2019 FY2019
Slide 6: Key Financials: Profitability Highlights Half Year Ending FY19
Key Financials: Profitability Highlights Half Year Ending FY19 6 months ending (in millions) H2 FY18 H2 FY19 YoY TOTAL REVENUE 818 919 12% Purchase of Stock-in-trade 712 817 Employee Benefit Expenses 29 20 Other Expenditure 32 35 EBITDA 45 46 3% EBITDA Margin 5.5% 5.04% Depreciation 4 4 Interest 4 3
Slide 7: Key Financials: Growth Trajectory
Promising Topline Key Financials Growth Trajectory. Revenue (in millions) 2000 1807.6 With the Multi-product 1800 1670.2 Outlets, Revenue can 1600 1400 1334.9 be expected to grow 1200 at a higher rate. 1000 800 600 Continuously 400 Improving EBITDA and 200 0 PAT profile with FY17 FY18 FY19 improved
Slide 8: Key Financials: Profitability Highlights FY19
Key Financials: Profitability Highlights FY19 (INR in millions) FY18 FY19 YoY TOTAL REVENUE 1670 1808 8% Purchase of Stock-in-trade 1494 1614 Employee Benefit Expenses 48 38 Other Expenses 58 70 EBITDA 70 86 23% EBITDA Margin 4% 5% Depreciation 8 9 Interest 9 5 Exceptional Items - - PBT 54 72 Tax 18
Slide 9: Key Financials: Balance Sheet Highlights – H2 FY19
Key Financials: Balance Sheet Highlights – H2 FY19 (INR in millions) Mar-18 Sep-18 Mar-19 (INR in millions) Mar-18 Sep-18 Mar-19 Shareholders' Funds 282 305 333 Non-current assets 82 86 99 Share Capital 63 63 125 Tangible Assets 55 59 71 Reserves & Surplus 220 243 208 CWIP 0 0 0 Intangible Assets 3
Slide 10: Company at a Glance: Business Overview
Company at a Glance: Business Overview ▪ Business of trading Mobile Phones & Accessories, Tablets, LED TVs and other Electronic Equipments. 43 Number of Awards Won ▪ The company sells cellular mobile devices and accessories through 20 franchisee retail chain dealers located in the South Gujarat regi
Slide 11: Company at a Glance: Business Overview
Company at a Glance: Business Overview Number of Retail Stores 90 80 76 72 70 60 57 50 47 Product Range: 40 38 Mobile Phones 30 Tablets 20 10 Mobile Accessories 0 Smart TVs FY15 FY16 FY17 FY18 FY19 TVs (LEDs and LCDs) Number of Franchise Retail Stores Refrigerators 60 55 Air Conditioners 50 Air Cool
Slide 12: Company at a Glance: Business Overview
Company at a Glance: Business Overview Owned Retail Stores: 76 Mobile Mobile Phones and Phones and Accessories Franchise Retail Stores: 20 Accessories Bhatia Trading Smart TVs Communications Home Electronic Number of & Retail (India) Appliances Stores: 10 Limited Home Electronic Appliances OnlyMobil
Slide 13: Company at a Glance: Future Growth Strategy
Company at a Glance: Future Growth Strategy Plan for Pan Gujarat Growth Strategy . Retail Space Price Competitiveness Customer Satisfaction • Scaling up retail presence every • Brand Association with almost • 1000+ Expert Advisors ensuring year. every Top Brands in Mobile rich Customer Experience. •
Slide 14: Company at a Glance: Retail Space and Presence
Company at a Glance: Retail Space and Presence Top 10 Retail & Franchise Store Location Location Area (Sq. ft.) Average Ticket Size IBC, Piplod 4,000 ~ Rs. 9000 Krishna Market 4,000 Krishna Market 2,000 Revenue ~ Rs. 19,600 per sq. ft Poddar Arcade 1,500 (for FY19) Ring Road 1,250 Total Retail Space
Slide 15: Retail Space and Presence: Newer and Bigger Stores
Company at a Glance: Retail Space and Presence Newer and Bigger Stores in Surat Bhatia Mobile associated with all Top Mobile Brands Customer Experience given top priority Association with Top Accessories Brands as well.
Slide 16: Association with Top Accessory Brands
Company at a Glance: Retail Space and Presence Association with Top Accessory Brands Accessory Business is a Repeat Business Model. Mostly all consumers buy some accessory when they buy Mobile Phones, Tablets or any other Electronic Gadget.
Slide 17: OnlyMobiles – New Retail Format
Company at a Glance: Retail Space and Presence OnlyMobiles – New Retail Multi Product Retail Format Outlets Krishna Market, Ms Ring Road (Surat). Rich Customer Experience Total Area Sq. ft: 16,000 Minimum 150 sq. Retail space Brand Association with almost all top Only Smartphone & Premium Electronic
Slide 18: Multi Product Outlet
Company at a Glance: Multi Product Outlet Home Appliances sold through 10 different Outlets. Includes Air- conditioners, Washing Machines, Refrigerators, LED TVs, and other Appliances. The company received good response in the first year of Operations.
Slide 19: Brand Association for Multi Product Outlets
Company at a Glance: Brand Association for Multi Product Outlets
Slide 20: Multi Product Retail Outlets
Company at a Glance: Multi Product Retail Outlets Association with TOP BRANDS Offering BEST DEALS
Slide 21: Smart LED TV Segment
Company at a Glance: Smart LED TV Segment Launched Smart LED TV in Surat, Gujarat under HOM brand in FY19. Price Range from INR 9,500 to INR 39,510. Size of Smart TV launched: • 32 inch • 48 inch • 55 inch Premium Trade Partner for HOM • Smart TV • Full HD Display • 1-GB RAM | 8 -GM ROM • 1.29 GHz (
Slide 22: Association with Top Mobile Brands
Company at a Glance: Association with Top Mobile Brands High-End Mobile Phones Medium and Low- End Mobile Phones
Slide 23: Banking Channel Partners form 25% of Sales
Company at a Glance: Banking Channel Partners form 25% of Sales
Slide 24: Management
Company at a Glance: Management Bhatia Communications & Retail (India) Limited Holding Sanjeev Bhatia (Managing Director) 26.37% Sanjeev Bhatia, aged 40 years, is having 73.63% vast experience of 19 years and looks after Finance, Franchise Outlet and General Administration functions. Promoter & Prom
Slide 25: Key Distinctive Features
Key Distinctive Features: Bhatia Communications & Retail (India) Limited Inventory Risk Very Low Control Over Product Low Range of Products High Profitability Medium Scalability (Number of Shops) 96 (grew at a CAGR of 19% last 5 years) Investment Required in People and Stores Comparatively lesser th
Slide 26: Branding Strategy
Company at a Glance: Branding Strategy
Slide 27: Attractive offers on Samsung series
Attractive offers on the one of the most promising series of Samsung.
Slide 28: Tie-up with top Banking Channel Partners
Tie-up with top Banking Channel Partners helping Company to give better deals across Brands.
Slide 29: SWOT Analysis
Strength • Experienced Promoters and Weakness Management Team with a very • Lack of Brand Awareness. Active Marketing Team. • Limited Mobile Network • Trained Work force with 1000+ Infrastructure in rural areas would Advisors. make going PAN- Gujarat difficult. • Wide range of Products ranging • Lac
Slide 30: Porter's Five Forces
Bargaining Power of Threat of Suppliers Substitutes HIGH LOW PORTER’S Threat of New FIVE Power of FORCES Buyers Entrants MODERATE HIGH TO HIGH Rivalry among competing firms MODERATE TO HIGH
Slide 31: India Smartphone Market
India Smartphone Market Share of Mobile Phone users that use a Smart Phone Number of Smart Phone users (in millions) in India 1000 40.00% 859 36.20% 900 34.10% 35.00% 800 31.70% 29.80% 29% 12.9% 30.00% 700 26.30% 26% 25.00% 23.25% 600 21.20% 20.00% 500 468 15.00% 400 10.00% 300 5.00% 200 0.00% 100 2
Slide 32: India Home Appliances and Consumer Electronics Market
India Home Appliances and Consumer Electronics Market Indian Appliances and Consumer Electronics Market Size (in INR trillion) 3.5 3.15 Key Factors driving demand 3 Electrification of Rural Sector 2.5 2.05 2 Low Penetration in Air Conditioners 1.5 (4% in India) and Refrigerators market. 1 Rise in Di
Slide 33: Thank You
BHATIA'S The mobUle one stop shop Thank You
Bhatia Communications & Retail (India) — H2 FY2019 Earnings Presentation on 6ix