Khadim India Limited · NSE:KHADIM
Khadim India — Q3 & 9M FY21 Earnings Presentation
25 slides from Khadim India's earnings presentation, Feb 15, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation Q3 & 9M FY21
.~. K KHADIM February 15, 2021 The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400001 Bandra (East), Mumbai - 400051 Scrip Code- 540775
Slide 2: Q3 & 9M FY21 Results Presentation
Q3 & 9M FY21 RESULTS PRESENTATION FEBRUARY 2021 1
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Khadim India Limited (“Khadim” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial c
Slide 4: Discussion Summary
BRITISH W LAZARD LAZARD DISCUSSION SUMMARY BUSINESS OVERVIEW Q3 & 9M FY21 RESULTS SHARON CLEO SHARON BUSINESS STRATEGY & OUTLOOK FINANCIAL & OPERATIONAL SUMMARY PRO PRO PRO MANAGEMENT TEAM & SHAREHOLDING PATTERN 3
Slide 5: Business Overview
BRITISH WALKERS LAZARD BUSINESS OVERVIEW 4
Slide 6: Quick Snapshot
QUICK SNAPSHOT 1 Leading Footwear Brand in India 2 Extensive Reach & Presence • 2nd largest footwear retailer in India * • Retail presence across 23 states & 1 union • Largest presence in East India territory • One of the top 3 players in South India • 774 ‘Khadim’s’ branded retail stores (Dec-20) •
Slide 7: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory Retail Stores 1 Distributors 3 4 5 1 14 3 1 9 21 47 50 Brand Network Dec ‘20 Retail Stores – Tier wise 42 44 1 2 89 40 5 Retail Stores 774 Metros 20% 12 2 24 11 25 33 16 5 - COCO 215 Tier I 48% 15 19 257 244 1 - Fra
Slide 8: Q3 & 9M FY21 Results Update
SHARON CLEO Q3 & 9M FY21 RESULTS UPDATE 7
Slide 9: Q3 & 9M Business Highlights
Q3 & 9M BUSINESS HIGHLIGHTS • Following Unlock 5.0 guidelines and nationwide ease on restrictions, our entire store network was operational in the quarter • Encouraging response received to the new sub-brands & range of products introduced in Distribution segment. Demand for open footwear continues
Slide 10: Result Highlight – 9M FY21
RESULT HIGHLIGHT – 9M FY21 9M FY21 Revenues Rs 3,562.3 Mn Retail Distribution Others * • Rev Share – Rs 1,914.4 m • Rev Share – Rs 1,502.8 m • Rev Share – Rs 145.1 m • GM – 44.2% • GM – 30.2% COCO Franchises • Rev Share – 57.8% • Rev Share – 42.2% Asset Light Model for Frontend Expansion and Scalabi
Slide 11: Q3 & 9M FY21 Results: Segment Analysis
Q3 & 9M FY21 RESULTS: SEGMENT ANALYSIS Q3 FY21 YoY ANALYSIS – REVENUE BREAKUP 9M FY21 YoY ANALYSIS – REVENUE BREAKUP 1,519 -1% 468 31% 615 1503 1,168 3,790 -8% 1,075 -49% 1,914 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Retail Distribution Retail Distribution Segment Share % * Q3 FY20 Q3 FY21 Segment Share % *
Slide 12: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY21 Q3 FY20 YoY % Q2 FY21 QoQ % 9M FY21 9M FY20 YoY % Revenue 1,740.8 1,747.6 -0.4% 1,217.5 43.0% 3,562.3 6,136.5 -41.9% COGS 1,097.5 1,048.8 4.6% 831.6 32.0% 2,360.9 3,804.0 -37.9% Gross Profit 643.3 698.8 -7.9% 385.9 66.7% 1201.4 2332
Slide 13: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 14: Financial Summary
FINANCIAL SUMMARY* In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 9.8% 10.6% 10.1% 4.7% 5.0% 5.1% 37.1% 39.2% 37.9% 37.9% 36.4% 7.1% 2.6% 757 4.0% 379 7,489 7,992 7,719 645 252 306 6,106 570 212 5,345 524 -4.0% 305 -312 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16
Slide 15: Financial Summary
FINANCIAL SUMMARY In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 19% 22% 24% 26% 27% 47% 47% 46% 42% 39% 50% 52% 52% 57% 57% 75% 73% 66% 63% 62% 53% 53% 54% 58% 61% 50% 48% 48% 43% 43% 6% 5% 10% 11% 12% FY16 FY17 FY18 FY19 FY20
Slide 16: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESS STRATEGY & OUTLOOK
Slide 17: Two-Pronged Business Model & Growth Strategy
TWO-PRONGED BUSINESS MODEL & GROWTH STRATEGY Retail Business Distribution Business Reach 774 ‘Khadim’s exclusive branded outlets 628 distributors supplying to MBOs across India Middle & upper middle income consumers in metros Lower & middle income consumers in Tier I – III cities, Target Segment who
Slide 18: Positive Industry Outlook
POSITIVE INDUSTRY OUTLOOK Domestic footwear retail to grow at a faster pace compared to the overall retail industry Favourable macro and Overall retail market in US $ Bn Domestic footwear market at retail price in US $ Bn demographic tailwinds 1200 Market Size 13.7 • Young demographics - 78% of the
Slide 19: Wide Product Range Across Various Categories & Price Points
WIDE PRODUCT RANGE ACROSS VARIOUS CATEGORIES & PRICE POINTS ‘Affordable Fashion’ brand catering to the entire family for all occasions - Men / Women / Kids - Menswear - Menswear - Menswear - Men & Women wear - Fashionable & casual - Formal shoes & sandals - Semi-formal & casual shoes / - Outdoor boo
Slide 20: Distinct Brand Positioning for Various Market Segments
DISTINCT BRAND POSITIONING FOR VARIOUS MARKET SEGMENTS Khadim’s brand presence and product range makes it capable to address ~85% of the total Indian footwear market potential Footwear Market Segmentation (MRP at retail stores in Rs) Distinct brand positioning to target customers % Share, Value Acro
Slide 21: Promoter, Board of Directors & Management Team
PROMOTER, BOARD OF DIRECTORS & MANAGEMENT TEAM Siddhartha Roy Burman, Chairman & Managing Director • Associated with the Company since its incorporation. He has 37 years of experience in the footwear industry • Responsible for the overall strategic decision making and provides leadership to all oper
Slide 22: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Namrata Chotrani, CEO Indrajit Chowdhury, CFO • She was associated with KPMG & Fairwinds Asset Managers Limited • 20+ yrs of experience in finance& accounts, taxation and strategic planning (since 2012) and has a total experience of over 11 years in tax, private • Respons
Slide 23: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – Dec ‘20 Key Institutional Investors % Holding IDFC MUTUAL FUND 3.8% Others, 23.5 UTI MF 4.6% Promoter & SUNDARAM MUTUAL FUND 2.5% Promoter Group, 60.9 SUNDARAM ALTERNATIVE OPPORTUNITIES FUND 2.2% Institutions, TRUSTLINE DEEP ALPHA 1.9% 15.6 Source: BSE 22
Slide 24: Key Milestones
KEY MILESTONES 1981 1993 1999 2002 2005 • Acquired and took over the • Commenced retail • Commenced retail • Commenced • Accredited with business of M/s S.N. business through operations in South manufacturing ISO 9001:2000 Industries as a going concern COOs for footwear India through with operations
Slide 25: Contact
Namrata Chotrani CEO Contact No: +91 33 40090501 Email: namrata.chotrani@khadims.com Indrajit Chowdhury Vikash Verma/ Nachiket Kale CFO IR Consultant Contact No : + 91 33 40090505 Contact: + 91 9664009029/ 9920940808 Email – indrajit.chowdhury@khadims.com Email – khadim@dickensonworld.com 24