Slide 1: Exchange filing cover letter for investor presentation
To, Listing Manager The Secretary The National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, Plot No: C/1, G Block, PJ Towers Bandra Kurla Complex- Bandra(E), Dalal Streets Mumbai - 400 051 Mumbai- 400001 Symbol: EMIL Scrip Code: 543626 Series: EQ ISIN: INE02YR01019 Sub: Investor’s Prese
Slide 2: Investor Presentation August 2023
Investor Presentation August 2023
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Electronics Mart India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 4: Q1FY24 Business & Financial Performance
Q1FY24 BUSINESS & FINANCIAL PERFORMANCE
Slide 5: Strong Q1FY24 Performance
STRONG Q1FY24 PERFORMANCE Revenue from Operations EBITDA Profit Before Tax Profit After Tax Rs. 1,689 crores Rs. 130 crores Rs. 81 crores Rs. 60 crores 20% 34% 47% 48% Sales Mix Store Ownership Store Count Retail Store Area 13% 11 11 14 1.27 Mn Sq. Ft. 37% Same Store Sales Growth 49% 111 119 13.6% M
Slide 6: Q1FY24 Financial Highlights
Q1FY24 FINANCIAL HIGHLIGHTS Revenue from Sale of Electronic & Total Revenues (Rs. Crs.) Same Store Sales Growth (SSSG) Consumer Durables +20% 1,689 Q1FY24 1,408 2% 1% 2% 0% 97% 98% 13.6% Q1FY23 Q1FY24 Q1FY23 Q1FY24 Bill Cuts (Nos. in ‘000) Average Ticket Size (Rs.) Net Retail Sales per store (Rs. Cr
Slide 7: Q1FY24 Financial Highlights
Q1FY24 FINANCIAL HIGHLIGHTS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) +34% 80 bps +48% 130 7.7% 60 6.9% 97 41 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 PAT Margins RoCE# RoE 68 bps 1,450 bps 900 bps 3.6% 28.2% 19.4% 2.9% 13.7% 10.4% Q1FY23 Q1FY24 FY23 Q1FY24* FY23 Q1FY24* *RoCE & RoE f
Slide 8: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital* Inventory Days Recievable Days Creditor Days Working 67 69 46 Capital Days 60 60 40 9 9 8 2 0 2 Mar-22 Mar-23 Jun-23 Cash Flow from Operations (Rs. Crs.) Debt to Equity Ratio Net Debt to EBITDA # (excl. Working Capital Adj.) Net Debt to Equity Gross Debt to Equi
Slide 9: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) Q1FY24 Q1FY23 YoY Revenue from Operations 1,689.1 1,408.4 20% Purchases of stock in trade 1,310.6 1,071.0 Changes in Inventory 132.8 140.5 Gross Profit 245.7 196.9 25% Gross Profit Margin 14.5% 14.0% Employee Cost 27.6 21.7 Other Expenses 88.1
Slide 10: Balance Sheet
BALANCE SHEET Assets (in Rs. Crs.) Mar-23 Mar-22 Equity & Liabilities (in Rs. Crs.) Mar-23 Mar-22 Non - Current Assets 1,283.9 875.4 Total Equity 1,184.3 596.5 Property Plant & Equipments 509.9 279.5 Share Capital 384.7 300.0 CWIP 13.9 23.8 Reserves & Surplus 799.6 296.5 Intangible assets 0.5 0.6 No
Slide 11: Cash Flow Statement
CASH FLOW STATEMENT Particulars (Rs. Crs.) FY23 FY22 Net Profit Before Tax 163.2 139.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 171.7 152.6 Operating profit before working capital changes 334.9 292.3 Changes in working capital -287.0 -138.6 Cash generated from Operation
Slide 12: Overview & Key Strategies
Electronics Mart India Limited OVERVIEW & KEY STRATEGIES
Slide 13: About Us
ABOUT US Largest Player in the Southern region in revenue terms with dominance in Telangana and Andhra MBOs P Pradesh and the 4 th largest consumer durables and electronics retailer in India 119 EBOs 14 P Diversified product offerings from 70+ brands comprising of more than 6,000 SKU across product
Slide 14: Our Journey
OUR JOURNEY 2022 2021 2020 2019 2018 2017 2014 o IPO Listed at BSE /NSE 1980 o Raised INR 500 crores Op eration al store count reached: 99 for fu n d in g in cremen tal o Crossed Rs. 3,000 workin g cap ital stores (88 MBOs + crores in Net Sales req u iremen ts , for o E xp an d ed 11 E BOs) o Award
Slide 15: Largest Electronics Goods Retailer in South India
LARGEST ELECTRONICS GOODS RETAILER IN SOUTH INDIA We are the Largest player in the Southern region in revenue terms with dominance in Telangana and Andhra Pradesh AND 4 th Largest Consumer Durables and Electronics retailer in India FY22 Revenues (Rs. Bn.)* 1,694.0 South Based Chains 82.1 53.3 43.5 1
Slide 16: Cluster Based Distribution Network
CLUSTER BASED DISTRIBUTION NETWORK Deep penetration in the states of Andhra Pradesh & Telangana with a growing presence in NCR Online Presence MBO Brands (# Stores) Cities States Retail Stores NCR 46 4 133 97 MBO : 14 EBO : 1 Cities : 4 119 MBO; 14 EBO Retail Area Central Warehouses 13 1.27 mn. sq.
Slide 17: Diversified Product Profile Comprising of 6,000+ SKUs
DIVERSIFIED PRODUCT PROFILE COMPRISING OF 6,000+ SKUS 1,864 Fastest growing segment with rising 1,395 contribution to the overall revenue pie Mobiles from 29% (FY19) to 37% in FY23 1,031 Phones, Fitness Tracker 598 Revenue Split (Q1FY24) & Tablets Have relationships with the large brands in this spa
Slide 18: Rapid Store Expansion
RAPID STORE EXPANSION Stores 71 +31.0% 93 +10.8% 103 +23.3% 127 +4.7% 133 Retail ‘000s sq. ft 765 +23.0% 940 +10.7% 1,041 +17.4% 1,222 3.8% 1,268 133 6 24 10 22 59 12 Opened 12 11 24 6 22 Closed - - 1* - - FY19 FY20 FY21 FY22 FY23 FY24 additions Q1FY24 Particulars FY20 FY21 FY22 FY23 Q1FY24 Store Co
Slide 19: Our Retail Outlets
OUR RETAIL OUTLETS ELECTRONICS
Slide 20: Our Specialised Retail Stores
OUR SPECIALISED RETAIL STORES 19
Slide 21: Strategically Located Logistics and Warehousing Facilities
STRATEGICALLY LOCATED LOGISTICS AND WAREHOUSING FACILITIES 10 large centrally located warehousing facilities which are backed by individual storage areas at store level of varying sizes to cater to individual stores or a group of st ores Efficient Inventory Management Robust Information Technology S
Slide 22: Strong Growth in Organised Brick & Mortar Retail
STRONG GROWTH IN ORGANISED BRICK & MORTAR RETAIL Retail Industry Market Size Expected to Grow at Organised Retail Penetration also Organised Brick & Mortar (B&M) Growing Faster 14% CAGR Expected to Grow CAGR +14% 103 13% CAGR +5% CAGR +14% 7908 CAGR +6% 9% 5680 62 66 4627 57 4028 43 3149 FY 16 FY 20
Slide 23: Continued Growth Momentum in Consumer Durables Across Categories
CONTINUED GROWTH MOMENTUM IN CONSUMER DURABLES ACROSS CATEGORIES Consumer Durable Industry Stated to Grow at India lags global peers in consumer durables penetration 13-15% ahead % of households 4.6 +14% Colour Televisions 50% 98 - 100% 96 - 98% 96 - 98% 98 - 100% 96 - 98% 95 - 97% Refrigerator 40%
Slide 24: Board of Directors
BOARD OF DIRECTORS Pavan Kumar Bajaj Karan Bajaj Astha Bajaj Chairman & Managing Director Chief Executive Officer & WTD Executive Director & WTD • 40+ years experience in the retail • 10+ years experience in the retail • 4+ years experience in business management business management business managem
Slide 25: Senior Management Team
SENIOR MANAGEMENT TEAM Premchand Devarakonda Giridhar Rao Chilamkurthi Vishal Singh Chief Financial Officer Vice-President - Sales Head - Marketing • Qu alified Ch artered Accou n tan t an d • Holds Master’s degree in Business • Holds Bachelor’s of Commer c e and h old s Bach elor’s d egree in Comme
Slide 26: Awards & Accolades
AWARDS & ACCOLADES Certificate of Appreciation For Best Electronics Retail Chain Best Business Performance Q1 exemplary sales CY22 CY22 Contribution CY22 RADIO CITY SAMSUNG SAMSUNG 25
Slide 27: Key Growth Strategies
KEY GROWTH STRATEGIES • Deepen store network in existing clusters and increase market share in existing markets, Follow a peripheral and Expand reach across concentric expansion approach select geographies and • Plan to open a further 13 MBOs in NCR, 21 MBOs in AP, and 8 MBOs in Telangana by FY25 .
Slide 28: Key Growth Strategies
KEY GROWTH STRATEGIES • Right mix of product assortments at competitive pricing: Maintaining optimal customer service standards and introduce new products Enhancing sales • Leveraging consumer finance to provide convenience & enhance purchasing ability: Make our products accessible to wider customer
Slide 29: Historical Highlights
Electronics Mart India Limited HISTORICAL HIGHLIGHTS
Slide 30: Operating Indicators
OPERATING INDICATORS Top 5 Brands (Revenues) Top 5 Brands (% of Revenues) Store Ownership (#) Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Others POPL Owned Leased 5,047 65.1% 64.8% 61.9% 64.2% 127 103 9 4,062 1,163 93 12 2,978 3,029 889 782 71 6 7 7 8 740 740 671 586 5 323 340 8 555 544 274 367 106 169
Slide 31: Financial Indicators
FINANCIAL INDICATORS Sale of Products Retail dominates the Revenues H2 H1 Online Wholesale Retail 2% 1% 2% 1% 2% 1% 1% 0% 52% 57% 97% 97% 97% 98% 47% 63% 43% 48% 53% 37% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Summer Season Revenue (April - June) Festive Season Revenue (Sept - Nov) Same Store Sales
Slide 32: Financial Indicators
FINANCIAL INDICATORS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) 336 7.2% 123 6.4% 6.7% 292 6.2% 104 228 82 204 59 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 PAT Margins RoCE RoE 2.6% 20.3% 18.8% 2.4% 18.9% 17.4% 2.3% 1.8% 14.4% 13.7% 11.9% 10.4% FY20 FY21 FY22 FY23 FY20
Slide 33: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital* Inventory Days Recievable Days Creditor Days Working 63 days 73 days 66 days 68 days Capital Days 63 60 60 54 10 11 9 9 1 1 2 0 Mar-20 Mar-21 Mar-22 Mar-23 Cash Flow from Operations (Rs. Crs.) Debt to Equity Ratio Net Debt to EBITDA (excl. Working Capital Adj.)
Slide 34: Historical Profit and Loss Statement
HISTORICAL PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) FY23 FY22 FY21 FY20 Revenue from Operations 5,445.7 4,349.3 3,201.9 3,172.5 Purchases of stock in trade 4,864.7 3,887.8 2,846.9 2,776.2 Changes in Inventory -159.7 -132.5 -79.6 -74.0 Gross Profit 740.7 593.9 434.6 470.3 Gross Profit
Slide 35: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (in Rs. Crs.) Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs.) Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 1,283.9 875.4 720.2 625.9 Total Equity 1,184.3 596.5 491.9 433.1 Property Plant & Equipments 509.9 279.5 275.5 222.9 Share Capital 384.7 300.0
Slide 36: Historical Cash Flow
HISTORICAL CASH FLOW Particulars (Rs. Crs.) FY23 FY22 FY21 FY20 Net Profit Before Tax 163.2 139.8 79.6 112.2 Adjustments for: Non -Cash Items / Other Investment or Financial Items 171.7 152.6 130.4 119.6 Operating profit before working capital changes 334.9 292.3 209.9 231.8 Changes in working capit
Slide 37: Delivering Value to Shareholders
DELIVERING VALUE TO SHAREHOLDERS IPO in October 2022 ✓ Company raised Rs. 500 Cr via fresh issue of shares ✓ Objects of the issue ▪ Funding of capital expenditure for expansion and opening of stores and warehouses ▪ Funding incremental working capital requirements ▪ Repayment/prepayment, in full or
Slide 38: Key Takeaways
KEY TAKEAWAYS Cluster based expansion strategy with robust growth and highest Operating margins; Recently forayed in new geography by opening stores in the lucrative NCR market Flexible business model built to create long term sustainable footprint Long Term Relationship with marquee Brands in each
Slide 39: Thank You
THANK YOU Company: Electronics Mart India Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L52605TG2018PLC126593 CIN: U74140MH2010PTC204285 Mr. Premchand Devarakonda (CFO) Mr. Deven Dhruva / Ms. Hinal Kothari premchand.d@bajajelectronics.in deven.dhruva@sgapl.net / hinal.Kothari@sgap