Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY21 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, July 2020
Slide 1: Financial Results Presentation Q1 FY21
Vaibhav Global Limited Financial Results Presentation Q1 FY21 Global Retailer of Fashion Jewellery, Accessories, and Lifestyle Products on Home Shopping TV and e-Commerce Platforms
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that contain “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 affiliated companies’ future busine
Slide 3: MD's Message
MD’s Message "I am very pleased to report yet another quarter of exceptional performance by VGL. In the backdrop of widespread impact of the Covid-19 pandemic, we have once again demonstrated our core business characteristics of inclusion and agility. This has resulted in solid growth in retail reve
Slide 4: Covid-19: Continuous Response
Covid-19: Continuous Response Covid-19 Response Employees Investors Customers Supply Chain Community ▪ ‘Borderless workforce’ ▪ Sustained focus on a ▪ Continued retail operations ▪ Temporary shutdown in ▪ Donated ~1,61,500 masks with no latency healthy Balance Sheet in US & UK operations balanced by
Slide 5: Q1FY21 – Key Highlights
Q1FY21 – Key Highlights ` Robust 32% Y-o-Y growth in retail revenues EBITDA grew by a strong 42% Y-o-Y with margins at 14.1% Further improvement in return ratios with ROCE expanding to 49% Free Cash Flows enhanced to Rs. 82 crore; Declared interim divided of Rs. 5 per share Significant Y-o-Y jump in
Slide 6: Table of Contents
TABLE OF CONTENTS 1 Business Background Details 2 Q1 FY21 Financial Performance 3 Financial Performance Trends 4 Annexures RESULTS PRESENTATION - JULY 2020
Slide 7: Business Background Details
Business Background Details RESULTS PRESENTATION - JULY 2020
Slide 8: Vaibhav Global Limited (VGL) at a Glance
Vaibhav Global Limited (VGL) at a Glance MISSION VISION Through the delivery of Be the Value Leader in high quality, affordable Electronic Retailing of products, made possible by our low cost direct sourcing, Jewellery & Lifestyle we change the world and Products touch people’s lives one piece at a
Slide 9: Our Global Presence
Our Global Presence Retail Markets UK Shop LC (US) | Shop TJC (UK) Sourcing US ▪ India ▪ Brazil China ▪ China ▪ Sri Lanka ▪ Thailand ▪ US ▪ Indonesia ▪ UK ▪ Tanzania ▪ Mozambique India ▪ Russia ▪ Germany ▪ Morocco ▪ Italy ▪ Myanmar ▪ Turkey ▪ Madagascar ▪ Poland ▪ Bolivia ▪ Singapore ▪ Kenya ▪ UAE M
Slide 10: Corporate Overview
Corporate Overview Vertically-integrated fashion retailer on electronic retail platforms Shop LC (US) & Shop TJC (UK) are brands with strong customer ▪ End-to-end B2C business model visibility ▪ Significant geographical cost arbitrage ▪ TV Homes accessed (*FTE) - 100 million ▪ Proprietary TV home-sh
Slide 11: Our Omni-Channel Sales Platform
Our Omni-Channel Sales Platform Shop LC (US) Shop LC Proprietary TV channels – 75 mn HH including Shop LC live TV stream on shoplc.com, YouTube, 14 mn OTA* HH* Facebook and Amazon Live TV Shop LC mobile app Social retail of targeted Proprietary web platform available on Marketplaces products on shop
Slide 12: Our Omni-Channel Sales Platform
Our Omni-Channel Sales Platform Shop TJC (UK) Shop TJC Proprietary TV channels – 25 mn HH Shop TJC live TV stream available on tjc.co.uk, including 17 mn OTA* HH* YouTube and Facebook TV Shop TJC mobile app Social retail of targeted Proprietary web platform available on Marketplaces products on tjc.
Slide 13: Our Value Dashboard
Our Value Dashboard B2C Revenues by format B2C Revenues by product category TV revenues Web revenues Jewellery Non-jewellery revenues 19% 9% 22% 33% 37% 36% 81% 91% 78% 67% 63% 64% FY15-16 FY19-20 Q1 FY21 FY15-16 FY19-20 Q1 FY21 59% of web revenues in Q1FY21 were from Mobile platform Jewellery reven
Slide 14: Q1 FY21 Financial Performance
Q1 FY21 Financial Performance RESULTS PRESENTATION - JULY 2020
Slide 15: Financials – Q1 FY21 Performance
Financials – Q1 FY21 Performance Revenue Breakdown – (Rs. crore) Fashion Jewelry, Accessories & Lifestyle Products Revenue TV Revenue Web Revenue B2B Revenue 550 440 342 274 203 138 28 5 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Note: B2B has been a non-core and opportunistic b
Slide 16: Financials – Q1 FY21 Performance
Financials – Q1 FY21 Performance Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) (USD million) (GBP million) 17.1 51.0 42.4 13.0 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 RESULTS PRESENTATION - JULY 2020 16
Slide 17: Retail Performance Trends – Q1 FY21
Retail Performance Trends – Q1 FY21 Volume and ASP TV Sales Volume ('000s) Average Selling Price US$ 1,880 29.2 1,355 24.1 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Web Sales Volume ('000s) Average Selling Price US$ 1,306 21.3 932 20.6 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 RESULTS PRESENTATION - JULY 2020 17
Slide 18: Financials – Q1 FY21 Performance
Financials – Q1 FY21 Performance Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA Margin (%) 63.1% 64.3% Margin (%) 12.4% 14.1% 354 78 278 55 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 PAT EPS (Rs.) PAT Margin (%) 8.2% 9.6% 16.37 53 11.02 36 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 RESULTS PRESENTATION - JULY 202
Slide 19: Financial Performance Trends
Financial Performance Trends RESULTS PRESENTATION - JULY 2020
Slide 20: Financials Performance Trends
Financials Performance Trends Revenue Breakdown – (Rs. crore) Revenue 1,986 1,814 1,436 1,571 1,276 440 550 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 Fashion Jewelry, Accessories & Lifestyle Products TV Revenue Web Revenue B2B Revenue 1,285 633 1,157 201 972 997 510 190 931 373 147 122 274 223 203 69 2
Slide 21: Retail Performance Trends
Retail Performance Trends Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 5,854 5,877 5,737 6,275 6,070 29.9 29.2 24.4 24.9 27.0 26.4 24.1 1,355 1,880 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 Web Sales Sales Volume ('000s) Average Selling P
Slide 22: Financials Performance Trends
Financials Performance Trends Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA Margin (%) 63.0% 60.1% 59.6% 62.5% 61.6% 63.1% 64.3% Margin (%) 5.9% 7.1% 10.1% 12.0% 13.9% 12.4% 14.1% 1,133 1,224 276 865 936 217 804 159 354 102 278 75 55 78 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18
Slide 23: Financial Performance Trends
Financial Performance Trends Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles 815 ** 163 ** 163 697 ** 751 129 126 120 117 550 379 434 FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Net Debt Net Assets *** 55 6 417 399 ** 394 ** 373 (13) 305 314
Slide 24: Financial Performance Trends
Financial Performance Trends Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 203 211 181 176 87 82 70 52 38 35 32 20 (28) (77) FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21 Operating Cash Flow: PBT+ Depreciation-(Changes in working Free Cash Flow: Opera
Slide 25: Financial Performance Trends
Financial Performance Trends Key Ratios ROE (TTM) ROCE (TTM) 26% 26% 25% 49% 23% 46% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Note - ROE – based on average net worth ROCE – based on average capital employed RESULTS PRESENTATION - JULY 2020 25
Slide 26: Annexures
Annexures RESULTS PRESENTATION - JULY 2020
Slide 27: Delivering Joy to Stakeholders
Delivering Joy to Stakeholders ▪ Unique Customers – 425,921 (Q1FY21 – TTM basis) ▪ Average qty. per customer – 27 pieces (Q1FY21 – TTM basis) Customers ▪ High quality products & Exotic designs Rating ▪ Lowe Price – high quality - high affordability ▪ Omni-channel access ▪ Budget Pay (monthly install
Slide 28: Delivering Joy to Stakeholders
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 2020 26% 49% Rank #219 #162 #147 #132 ROE ROCE ▪ Solar power projects to meet ~45% of the total power requirement at the manufacturing facilities in Jaipur (current + Environment planned solar power project) ▪ Invested in sewage treatment,
Slide 29: VGL Shareholder Base – As on 30-June-2020
VGL Shareholder Base – As on 30-June-2020 Holding as on Shareholding Pattern Key Shareholders (Holding 1%+) 30-June-2020 Individual - >1% Others Promoter & Promoter Group 58.50% 3.7% 5.9% Nalanda India Fund Limited (FII) 10.38% AIF 1.1% Domestic Institutions Motilal Oswal Multicap 35 Fund (MF) 8.96%
Slide 30: Management Team
Management Team Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha Managing Director Group CFO President, Shop LC (US) Managing Director, Shop TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Vivek Jain Group Chief Technology Vice President, Supply Vice Presiden
Slide 31: Thank You
THANK YOU For more information please contact: Vaibhav Global Limited Vineet Ganeriwala, Group CFO Dipti Rajput, DGM (IR) Vineet@vglgroup.com Dipti.Rajput@vglgroup.com +91-141-2771975 +91-9116653352