Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY25 Earnings Presentation
52 slides from Vaibhav Global's earnings presentation, December 2024
Slide 1: Q3 FY25 Investor Presentation
Q3 FY25 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its group companies’ future business developments and economic p
Slide 3: MD's Message
I am glad to share that in line with our guidance, Germany operations have broken even at the EBITDA level, and Ideal World has turned profitable in Q3. I am pleased to share that we achieved 10% revenue growth this quarter, and achieved highest ever quarterly sales of Rs. 977 crores. Owing to surge
Slide 4: Q3 FY25 Highlights
Q3 FY25 Highlights 10% YoY 11.5% Rs. 106 cr. ₹ Revenue Growth EBITDA Margin Net Cash Positive Highest ever A Strong Balance Sheet: Highest ever unique Declared 3rd interim IGJ Award: Highest quarterly sales of Net cash position of Rs. customer base of ~698 k, dividend of Rs. 1.50/- exporter of ‘Cut
Slide 5: Table of Contents
Table of Contents 06 11 Company Overview Business Overview 26 30 Update on Acquisitions Emerging Industry & Germany Trends 34 40 Operational & Financial Financial Performance Highlights Trends 45 Annexures
Slide 6: Company Overview
Company Overview
Slide 7: About Us
About Us Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products • TV Homes accessed (*FTE): ~ 127 mn households • End-to-end B2C business model • Growing digital presence • Presence through proprietary TV channels and digital platforms Exceptional
Slide 8: Guiding Pillars Defining VGL Group
Guiding Pillars Defining VGL Group Our Vision Vaibhav Global Limited Be the Value Leader in Electronic Retailing of Jewellery & Lifestyle Products Global Retailer on TV and Digital Platforms of Fashion Jewelry, Lifestyle Products and Accessories Our Mission To deliver 1 million meals per school day
Slide 9: An Evolving Journey
An Evolving Journey Started Gemstones business Started Jewellery manufacturing Listing on stock for B2B exchange 1980 1996 1997 Started 'Lifestyle Products' category, Shifted strategy towards 'value name changed to Vaibhav Global Ltd. conscious offering' 2008 06-07 Started own TV channels 2013 in UK
Slide 10: Strong & Experienced Management
Strong & Experienced Management Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Ms. Dee Kumar Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Mohammed Farooq Mr. Pushpendra
Slide 11: Business Overview
Business Overview
Slide 12: A Global Retailer on Proprietary TV Channels
A Global Retailer on Proprietary TV Channels Proprietary ‘TV Channels’ Primary Retail Markets UNITED STATES UNITED KINGDOM GERMANY & AUSTRIA 60 million HH 27 million HH 40^ million HH Reaching TV homes through Cable, Satellite and OTA broadcasts (Over The Air) ^ A government authority-led household
Slide 13: Complimented by Digital Platforms
Complimented by Digital Platforms Digital Platforms Our Presence Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de www.idealworld.tv www.mindfulsouls.com Third Party Marketplaces Social Retail OTT Platforms
Slide 14: With Huge Growth Potential: TAM of USD 20 bn
With Huge Growth Potential : TAM of USD 20 bn Opportunity size UNITED STATES $14- $15 bn Target customers Value-buying Baby Boomers proposition of $30-$45 UNITED KINGDOM (65+ years) & Gen X (45+ years) $2-$2.5 bn GERMANY & AUSTRIA ~$3 bn Widest product range comprising ~30,000 SKUs Statista, Marketr
Slide 15: Vertically Integrated Supply Chain: Jaipur
Vertically Integrated Supply Chain Leveraging Global Jewellery Manufacturing Hub: Jaipur UK USA Jaipur Germany Global manufacturing hub of Fashion 169,000 sq. ft. Making in India Jewellery & Gemstones Fully-integrated Manufacturing Set-up in Jaipur Production for ‘Western Markets’ Availability of sk
Slide 16: Vertically Integrated Supply Chain: Global Sourcing Base
Vertically Integrated Supply Chain Complemented by a Strong Global Sourcing Base Sourcing Countries ▪ India ▪ Mozambique ▪ China ▪ Germany ▪ Thailand ▪ Italy ▪ Indonesia ▪ Turkey ▪ Tanzania ▪ Poland ▪ Russia ▪ Singapore ▪ Morocco ▪ UAE ▪ Myanmar ▪ Japan ▪ Madagascar ▪ Bangladesh ▪ Bolivia ▪ Philippi
Slide 17: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Through New Designs & Products Fashion Jewellery & Gemstones Life-Style Products Lab Grown Diamond Jewellery Soulsmart Ring Detangler Hair-Brush Walking Cane (Retractable Bristle Technology) • ~14K-15K new jewellery designs launched annually • A rich product basket of ~
Slide 18: 'Innovation' Focused
‘Innovation’ Focused 59,000+ 6,700+ 2,600+ Ideas Generated Ideas Approved Products sold 58,000+ 4,500+ Ideas Proposed to Buyers Orders Placed Global Search Program Crowdsourcing of Ideas Received ‘Design Patent’ Received ‘Design Patent’ A Global product innovation and search From employees, customer
Slide 19: Strengthening Own Brand Portfolio
Strengthening Own Brand Portfolio • Leveraging manufacturing & digital capabilities • Number of brands: 33 • Current revenue mix: ~31% of gross B2C sales • Target revenue mix: ~50% by FY27 of gross B2C sales • Strategic brand matrix (price laddering and offering) • Increase repeats and retention usi
Slide 20: Resulting In
Resulting In
Slide 21: Top decile shareholders' returns since listing
Top decile shareholders’ returns since listing Growing Consistently Parameters (Rs. in crores) CAGR (27 years) Return (x times) Revenue 18% 93 EBITDA 17% 66 Profit After Tax 14% 35 ~22% CAGR in market cap. since listing (~259 times), excluding dividends
Slide 22: R's of Customer Engagement
4 R’s of Customer Engagement TV Products Linear | OTA Registrations & Reach (HH) Acquisitions ^ Deep value proposition 127mn Digital Browsers | Mobile Apps | Market-places | OTT| Social Media 4.1 lakh (TTM) Engrossing Content Enduring relationships Expanding wallet share Retention Repeat Purchases C
Slide 23: Broad Basing Customer Base
Broad Basing Customer Base Unique Customer Base (in 000') • Highest ever unique customer base of 698 K 204 215 164 126 • YoY growth of 30% (incl. acquisition) 84 472 478 483 452 454 459 • YoY growth of 6% (ex-acquisition) • Healthy ‘spend per customer’ of $853 (ex- acquisition) Q2 FY24 Q3 FY24 Q4 FY
Slide 24: With long term value creation
With long term value creation Cash accretive business model With strong dividend payouts 272 268 237 230 190 176 105 127 119 Since FY20 Rs. in crores 90 54 Profits After Tax 1,050 FY 20 FY 21 FY22 FY23 FY24 9M FY25 Dividends Paid 561 Impact of one-time planned higher capex Payout Ratio 53% (214) Net
Slide 25: Broad Based E-tailer
Broad Based E-tailer B2C Revenues by Format B2C Revenues by Product 12% 30% 27% 39% 40% 34% 88% 70% 66% 73% 61% 60% FY18 FY24 9M FY25 FY18 FY24 9M FY25 Jewellery Lifestyle TV revenues Digital revenues Jewellery : Fashion Jewellery, Gemstones and Accessories Lifestyle : Home Décor, Beauty & Hair Care
Slide 26: An update on Germany and Recent Acquisitions
An update on GERMANY AND RECENT ACQUISITIONS
Slide 27: Germany
Germany Increased TAM (immediate target addressable market) by ~20% Q3 revenue Revenue growth Repeat purchase Euro 7.5 mn by 31% YoY 23 pieces Digital sales mix Achieved Presence in 27% EBITDA level 40 million breakeven Households^ Revenue (in Euro mn) No. of HH (in mn) 42 40 40 21.4 19.4 27 16.0 14
Slide 28: Ideal World
Ideal World TTM revenue 60%+ Unique customer £ 19mn gross margins 112 k Presence in Also transponding on Achieved full- 27 million households HD cost (100% penetration) networks profitability Revenue and New Customers New Customers (cumulative) (in '000) 7.0 147 160 6.0 120 140 Net Revenue (£ in mn)
Slide 29: Mindful Souls
Mindful Souls TTM performance AOV PBT margin Revenue $ 45 ~7% $ 17 mn Unique customer 102 k Leveraging VGL’s supply chain ➢ Launched 5 new products during Q3 FY25 ➢ Best selling products also shifted under India’s supply chain ➢ Benefits of in-house supply chain to accrue from near term onwards
Slide 30: Emerging Industry Trends
Emerging INDUSTRY TRENDS
Slide 31: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer watching traditional Expanding presence through OTA Pay-TV % of population having TV Total OTA HH in US (age group wise) 80% 86% 81% 23mn 73% 65% 66% Shop LC’s Presence Low Power Full Power 46% 34% ~18mn HH ~5mn HH Revenue Mix 18-
Slide 32: Widening Digital Presence OTT: Huge Growth opportunity
Widening Digital Presence OTT: Huge Growth opportunity In US, OTT’s are projected to be the fastest growing video distribution medium US internet connected device installed base, 2016 to 2026 Live & Interactive Apps Shop LC (US) OTT revenue trend (USD mn) $10.5 $9.3 $7.5 $6.0 $2.2 FY21 FY22 FY23 FY2
Slide 33: Being Resilient
Being Resilient 18.0% 46.0% Revenue and EBITA % trends 16.0% • Continuing market share gains across territories 14.0% 36.0% 11.1% 11.5% • Focused pricing and product mix helped 12.0% 10.0% 9.5% 26.0% 22.8% 8.7% 8.7% 10.0% 8.0% 8.1% sustained gross margins above 60% 8.0% 16.0% 14.0% 14.9% 13.0% 10.0%
Slide 34: Q3 FY25 Operational & Financial Highlights
Q3 FY25 OPERATIONAL & FINANCIAL HIGHLIGHTS
Slide 35: Financial Highlights – Q3 FY25 Revenue breakup
Financial Highlights – Q3 FY25 Revenue breakup Revenue & Revenue Split (Rs. Crore) Total B2C Revenue Digital Revenue B2B Revenue TV Revenue 10.0% 11.8% 977 5.6% 380 888 50 340 547 518 30 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Note: B2B has been non-core and opportunist
Slide 36: Financial Highlights – Q3 FY25 Revenue breakup
Financial Highlights – Q3 FY25 Revenue breakup Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) 5 years CAGR 5 years CAGR 3% 7% (USD million) (GBP million) 3.6% 64.4 6.5% 62.2 25.6 24.1 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 36
Slide 37: Retail Performance Trends – Q3 FY25
Retail Performance Trends – Q3 FY25 TV Sales Sales Volume ('000s) 2.1% Average Selling Price US$ 1,701 1,737 36.7 37.2 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Digital Sales Sales Volume ('000s) Average Selling Price US$ 1.2% 32.4 1,370 1,387 29.8 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Volume and ASP impacted d
Slide 38: Financials – Q3 FY25 Performance
Financials – Q3 FY25 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) Gross 62.4% 61.3% EBITDA 11.1% 11.5% Margin (%) Margin (%) 13.1% 7.9% 99 112 599 555 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 PAT (Rs. Cr) and PAT Margin (%) EPS (Rs.) PAT 5.3% 6.5% Margin (%) 35.5% 3.9
Slide 39: EBITDA Margin Walk
EBITDA Margin Walk % to Particulars Remarks revenue EBITDA Q3 FY24 11.1% Gross margin 1.1% Product mix to match the consumer demand Digital marketing 1.1% Increased spend in Mindful Souls and Ideal World Shipping cost 1.6% Cost renegotiation with channel partners Employee cost 0.8% Operating
Slide 40: Financial Performance Trends
FINANCIAL PERFORMANCE Trends
Slide 41: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 years CAGR: 11% 3,041 2,752 2,540 2,691 2,530 2,252 1,986 1,814 FY19 FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 years CAGR: 9% 5 years CAGR: 18% Digital Revenue B2B Revenue TV
Slide 42: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 38.0 39.1 39.1 38.3 6,998 6,275 32.6 6,070 29.9 5,331 5,459 26.5 27.7 4,073 4,489 FY19 FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 FY19 FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Digital Sales Average Selling Price US
Slide 43: Financials – Financial Performance
Financials – Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,332 1,203 1,258 622 602 1,127 511 964 494 697 751 192 163 117 FY19 FY20 FY21 FY22 FY23 FY24 9M FY25 FY19 FY20 FY21 FY22 FY23 FY24 9M FY25 Net Debt* (Rs. Cr) Net Assets^ (Rs. Cr) FY19 FY20 F
Slide 44: Financial Performance – Trends & Ratios
Financial Performance – Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 268 324 230 270 181 176 203 211 126 90 86 78 54 (214) FY19 FY20 FY21 FY22 FY23 FY24 9M FY25 FY19 FY20 FY21 FY22 FY23 FY24 9M FY25 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 46% 37% 31% 10% 11% 19% 9% 18% 14% F
Slide 45: Annexures
ANNEXURES
Slide 46: Digital Commerce Markets
Digital Commerce Markets Industry Trends US UK US 30.9% Improving consumer sentiments coupled 16.0% 27.8% 26.5% 26.6% 27.1% 14.0% 14.6% 14.5% 15.4% with a strong festive season driving the growth 11.0% 19.1% UK Gradual momentum is evident, amidst cautious consumer behaviour 2019 2020 2021 2022 2023
Slide 47: Sustainability Initiatives
Sustainability Initiatives ENERGY Solar 3.23 mw Solar power capacity Generated 18.9 Mn kWh units since inception WATER EV BIODIVERSITY 1,100 KL WASTE 184 two-wheelers & 4 four-wheelers for 3 Rainwater Storage Tanks employees’ commute. Replaced 12 buses ~28,000 100% till date Conversion of bio-degrad
Slide 48: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 97 million meals to underprivileged children through flagship One for One Program, ‘Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK ▪ Serving ~69k
Slide 49: Robust Corporate Governance
Robust Corporate Governance B S R & Co. LLP Statutory Auditors PWC Internal Auditors 9M FY25 ~Rs. 75 crores Credit Rating Long-term 39% Dividend Payout (3rd interim dividend for FY24-25) ICRA A (Positive Outlook) CARE A+* (Stable) Dividend Payout Policy (*upgraded from erstwhile rating of ‘CARE A’)
Slide 50: Awards & Accolades
Awards & Accolades INDIA RISK MANAGEMENT IGJA: HIGHEST EXPORTER OF CUT AWARD & POLISHED COLOURED LEED’S PLATINUM & GOLD CERTIFICATION GEMSTONES (FY24) from ICICI Lombard & CNBC-TV18 EXCELLENCE IN SUSTAINABILITY ICSI NATIONAL AWARD India, US, UK & China by Indo-American Chamber ‘NET ZERO ENERGY BUILD
Slide 51: Shareholding Pattern as on 31st December 2024
Shareholding Pattern as on 31st December 2024 Shareholding Pattern Key Shareholders Holding (in %) Nalanda India Fund Limited 7.6% Promoter & Promoter 21.55% Group 2.03% Foreign Institutions (FPI, FII) Malabar India Fund Limited 6.8% & NRI Domestic Instititions (MF) Vijay Kedia 2.0% 57.30% Individua
Slide 52: Vaibhav Global Limited Contact Details
Company Investor Relations Advisors Vaibhav Global Limited Adfactors PR Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma Nitin.panwad@vglgroup.com Amit.Sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations Disha.shah@adfactorspr.com VAIBHAV GLOBAL LIMITED Prashant.saraswat@vglgrou