Khadim India Limited · NSE:KHADIM
Khadim India — Q4 FY2021 Earnings Presentation
28 slides from Khadim India's earnings presentation, Jun 22, 2021
Slide 1: Regulation 30 cover letter to BSE and NSE
June 22, 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 - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code - 540775 Symbol - KHADI
Slide 2: Q4 & FY21 Results Presentation
KHADIM INDIA LIMITED Q4 & FY21 RESULTS PRESENTATION JUNE 2021 Q4 & FY21 RESULTS PRESENTATION JUNE 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 ▪ Q4 & 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 • 757 ‘Khadim’s’ branded retail stores (Mar-21) •
Slide 7: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory Retail Stores 1 Distributors 3 2 5 1 11 2 1 8 18 48 42 Brand Network Mar ‘21 Retail Stores – Tier wise 40 41 1 2 87 35 5 Retail Stores 757 Metros 19% 12 1 24 11 24 29 15 3 - COCO 214 Tier I 48% 15 19 247 223 1 - Fra
Slide 8: Q4 & FY21 Results Update
SHARON CLEO Q4 & FY21 Q4 & FY21 RESULTS UPDATE RESULTS UPDATE 7
Slide 9: Business Highlights
BUSINESS HIGHLIGHTS • As the economy opened & economic activity picked up, turnaround was observed across key metrics. Encouraging recovery was seen in revenue and gross margin, working capital also improved • In Q4, the company focused on reducing inventory in retail and distribution business while
Slide 10: Employee Welfare
EMPLOYEE WELFARE Our team continued to put their best foot forward during the pandemic and we take care of them every step of the way. 9
Slide 11: Sales Trajectory YoY (In Rs mn)
SALES TRAJECTORY YoY (In Rs mn) 1,80 0 RETAIL 120 % DISTRIBUTION 106% 1,20 0 160 % 1,60 0 1,449 89% 100 % 135% 140 % 1,40 0 1,247 1,00 0 116% 1,223 107% 120 % 1,20 0 1,094 1,061 80% 1,001 800 664 100 % 645 1,00 0 47% 60% 580 554 590 800 600 62% 499 491 80% 685 600 40% 400 398 60% 400 18% 40% 20% 220
Slide 12: Result Highlight – FY21
RESULT HIGHLIGHT – FY21 FY21 Revenues Rs 6,261.8 Mn Retail Distribution Others * • Rev Share – Rs 2,960.5 m • Rev Share - Rs 1,283.1m • Rev Share – Rs 2,018.2 m • GM – 45.1% • GM – 30% COCO Franchises • Rev Share – 59% • Rev Share – 41% Asset Light Model for Frontend Expansion and Scalability • Reta
Slide 13: Q4 & FY21 Results: Segment Analysis
Q4 & FY21 RESULTS: SEGMENT ANALYSIS Q4 FY21 YoY ANALYSIS – REVENUE* BREAKUP FY21 YoY ANALYSIS – REVENUE* BREAKUP 6% 2,188 554 590 2% 2,233 6% 4,920 -38% 1,001 1,061 3,060 Q4 FY20 Q4 FY21 FY20 FY21 Retail Distribution Retail Distribution Segment Share % * Q4 FY20 Q4 FY21 Segment Share % * FY20 FY21 R
Slide 14: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY21 Q4 FY20 YoY % Q3 FY21 QoQ % FY21 FY20 YoY % Revenue 2,699.5 1,582.2 70.6% 1,740.8 55.1% 6,261.8 7,718.7 -18.9% COGS 2,097.6 1,108.3 89.3% 1,097.5 91.1% 4,457.8 4,912.2 -9.3% Gross Profit 601.9 473.9 27.0% 643.3 -6.4% 1804.0 2806.5 -
Slide 15: Balance Sheet
BALANCE SHEET Particulars (In Rs Mn) Mar-21 Mar-20 Particulars (In Rs Mn) Mar-21 Mar-20 Equity Non-Current Assets Equity Share capital 179.7 179.7 Property, Plant and Equipment 1,140.7 1,299.7 Other Equity 1,828.8 2,154.8 Capital work - in - progress 9.5 5.5 Right of Use Assets 1,153.5 1,467.6 Non-C
Slide 16: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 17: Financial Summary
FINANCIAL SUMMARY* In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 10.6% 10.1% 5.0% 5.1% 39.2% 37.9% 37.9% 36.4% 7.1% 2.6% 28.8% 757 4.0% 379 7,489 7,992 7,719 645 306 6,106 570 0.6% 212 6,262 -4.0% -5.3% 305 35 -312 -329 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY1
Slide 18: Financial Summary
FINANCIAL SUMMARY In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 22% 24% 26% 27% 34% 42% 39% 41% 47% 46% 52% 52% 57% 57% 60% 73% 66% 63% 61% 46% 53% 54% 58% 61% 59% 48% 48% 43% 43% 40% 11% 12% 20% 5% 10% FY17 FY18 FY19 FY20 FY2
Slide 19: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESSBUSINESS STRATEGYSTRATEGY & OUTLOOK& OUTLOOK
Slide 20: Two-Pronged Business Model & Growth Strategy
TWO-PRONGED BUSINESS MODEL & GROWTH STRATEGY Retail Business Distribution Business Reach 757 ‘Khadim’s exclusive branded outlets 575 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 21: 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 22: 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 23: 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 24: 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 25: 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 nine years in tax, private • Respo
Slide 26: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – Mar ‘21 Key Institutional Investors % Holding UTI MF 4.6% Others, 23.6 SUNDARAM MUTUAL FUND 4.5% Promoter & IDFC MUTUAL FUND 3.6% Promoter Group, 61.1 TRUSTLINE DEEP ALPHA 1.9% Institutions, 15.3 Source: BSE 25
Slide 27: 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 28: Contact details
Namrata Chotrani CEO Contact No: +91 33 40090501 Vikash Verma/ Nachiket Kale Email: namrata.chotrani@khadims.com IR Consultant Contact: + 91 9664009029/ 9920940808 Indrajit Chowdhury Email – khadim@dickensonworld.com CFO Contact No : + 91 33 40090505 Email – indrajit.chowdhury@khadims.com 27