Khadim India Limited · NSE:KHADIM
Khadim India — Q1 FY2021 Earnings Presentation
27 slides from Khadim India's earnings presentation, Sep 2, 2020
Slide 1: Intimation of Investor Meet letter to BSE and NSE
September 02, 2020 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 - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code - 540775 Symbol -
Slide 2: IDFC Securities invites you to the Q1FY21 Earnings call
IDFC Securities invites you to the Q1FY21 Earnings call of Khadim India Thursday, 3rd September 2020 at 14:30 hrs IST Khadim India’s management will be represented by: Mr Siddhartha Roy Burman - CMD Ms. Namrata Chotrani - CEO Mr Indrajit Chowdhury – CFO Diamond Passcode link: Click here Universal Ac
Slide 3: Q1 FY21 Results Presentation
Q1 FY21 RESULTS PRESENTATION SEPTEMBER 2020 1
Slide 4: 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 5: Discussion Summary
BRITISH W LAZARD LAZARD DISCUSSION SUMMARY ▪ BUSINESS OVERVIEW ▪ Q1 FY21 RESULTS SHARON CLEO SHARON ▪ BUSINESS STRATEGY & OUTLOOK ▪ FINANCIAL & OPERATIONAL SUMMARY PRO PRO PRO ▪ MANAGEMENT TEAM & SHAREHOLDING PATTERN 3
Slide 6: Business Overview
BRITISH WALKERS LAZARD BUSINESS OVERVIEW 4
Slide 7: 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 • 796 ‘Khadim’s’ branded retail stores (Jun-20) •
Slide 8: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory Retail Stores 1 Distributors 2 3 1 1 13 3 1 11 18 45 48 Brand Network Jun ‘20 Retail Stores – Tier wise 48 42 1 2 88 38 4 Retail Stores 796 Metros 20% 12 2 26 11 25 27 17 3 - COCO 223 Tier I 47% 18 17 261 237 1 - Fr
Slide 9: Social Media & E-commerce Engagement
SOCIAL MEDIA & E-COMMERCE ENGAGEMENT @khadimindia @khadimsindia 7
Slide 10: Overcoming Challenges of Lockdown
OVERCOMING CHALLENGES OF LOCKDOWN We understood the inability of our patrons to visit stores due to COVID 19 break-out. Hence we took a step to take our products to customers and reach them by launching “On the Go”- a store on wheels; “Hot Spots” – to disseminate Shoe Sanitizer & Masks ; “Khadims Ne
Slide 11: Q1 FY21 Results Update
SHARON CLEO Q1 FY21 RESULTS UPDATE 9
Slide 12: Result Highlight – Q1 FY21
RESULT HIGHLIGHT – Q1 FY21 Q1 FY21 Revenues Rs 603.9 Mn Retail Distribution Others * • Rev Share – Rs 214 m • Rev Share – Rs 14.9 m • Rev Share – Rs 375 m • GM – 44.4% • GM – 30.7% COCO Franchises • Rev Share – 55.7% • Rev Share – 44.3% Asset Light Model for Frontend Expansion and Scalability • Reta
Slide 13: Q1 FY21 Results: Segment Analysis
Q1 FY21 RESULTS: SEGMENT ANALYSIS Q1 FY21 YoY ANALYSIS – REVENUE BREAKUP 598 1,201 375 214 Q1 FY20 Q1 FY21 Retail Distribution Segment Share % * Q1 FY20 Q1 FY21 Retail 55.6% 35.4% Distribution 27.7% 62.1% Gross Margin % Q1 FY20 Q1 FY21 Retail 45.8% 44.4% Distribution 29.3% 30.7% EBITDA Margin % Q1 F
Slide 14: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY21 Q1 FY20 YoY % Q4 FY20 QoQ % FY20 Revenue 604.0 2,160.7 -72.0% 1,582.2 -61.8% 7,718.7 COGS 431.9 1,371.4 -68.5% 1,108.3 -61.0% 4,912.2 Gross Profit 172.1 789.3 -78.2% 473.9 -63.7% 2806.5 Gross Margin % 28.5% 36.5% -803 bps 30.0% -145
Slide 15: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 16: 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 17: 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 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESS STRATEGY & OUTLOOK
Slide 19: Two-Pronged Business Model & Growth Strategy
TWO-PRONGED BUSINESS MODEL & GROWTH STRATEGY Retail Business Distribution Business Reach 796 ‘Khadim’s exclusive branded outlets 581 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 20: 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 21: 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 22: 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 23: 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 34 years of experience in the footwear industry • Responsible for the overall strategic decision making and provides leadership to all oper
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Namrata Chotrani, CEO Indrajit Chowdhury, CFO • She was associated with KPMG & Fairwinds Asset Managers Limited • 15+ yrs of experience in finance& accounts, taxation and strategic planning (since 2012) and has a total experience of over nine years in tax, private • Respo
Slide 25: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – June ‘20 Key Institutional Investors % Holding IDFC MUTUAL FUND 5.4% Others, 19.0 UTI MF 4.8% Promoter & SUNDARAM MUTUAL FUND 4.3% Promoter Group, 60.8 TRUSTLINE DEEP ALPHA 1.9% Institutions, 20.2 Source: BSE 23
Slide 26: 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 27: Contact details
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 25