V2 Retail Limited · NSE:V2RETAIL
V2 Retail — Investor Presentation (October 2017)
36 slides from V2 Retail's investor presentation, Oct 12, 2017
Slide 1: Intimation to stock exchanges: Investor Presentation October 2017
V2 Retail Limited Value # Vaviedy Date: October 12, 2017 To, National Stock Exchange of India BSE (Bombay Stock Exchange) Limited Limited 25" floor,”PhirozeJeejeebhoy Tower”, | Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Narimal Point, Mumbai-400001 BandraKurla Complex, Bandra(East) BSE Cod
Slide 2: V2 Retail Limited Investor Presentation October 2017
V2 Retail Limited Investor Presentation October 2017 1
Slide 3: Disclaimer
Disclaimer This Investor Presentation has been prepared by V2 Retail Limited (“V2 Retail”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied shoul
Slide 4: Table of Contents
Table of Contents Section Particulars Page No. 1 Executive Summary 4 2 Key Strengths 6 3 Company Overview 8 4 Business Strategy 21 5 Industry Overview 24 6 Key Financial Indicators 28 3
Slide 5: Section 1: Executive Summary
Section 1: Executive Summary 4
Slide 6: Executive Summary
Executive Summary • Indian Retail is one of the fastest growing markets in the world due to economic growth. • Changing customer preferences leading to a rapid shift to organised retail. Growth of organised retail will Retail Industry: a further boost and help in enhance availability and drive growt
Slide 7: Section 2: Key Strengths
Section 2: Key Strengths 6
Slide 8: Key Strengths
Key Strengths 1 V2 Retail – one of the fastest growing retail chains in India Operating in a niche segment of ‘Value Retailing’. Clear focus on 2 Apparel and General Merchandise segment Consistent per square feet sale of more than ₹ 1100 per month for 3 past 3 years, the best amongst apparel retaile
Slide 9: Section 3: Company Overview
Section 3: Company Overview 8
Slide 10: Company Overview
Company Overview • V2 Retail Limited (formerly known as Vishal Retail Stores Limited), incorporated in the year 2001 with an objective of providing merchandise to masses at State No of Stores affordable price. Bihar 14 • The Company went Public in the year 2007. Himachal Pradesh 1 • The brand “Visha
Slide 11: Milestones
Milestones First Inning A new beginning.. • Stores increased • The number of stores to 16 with more increased to 37 than 2 lac square • Crossed an aggregate of feet of retail space 4.60 lac square feet of • Turnover crossed retail space Incorporated in Turnover of Approx 1st Store in ₹ 225 crores •
Slide 12: Business Verticals
Business Verticals Business Verticals Verticals Sales Mix • Men’s Wear – Upper, Lower, Occasion Wear, Winter Wear, Sportswear, Formal, Casual, Men’s Wear 44% • Ladies Wear – Ethnic wear, Upper, Lower, Occasion Wear, Winter Wear, Sportswear Ladies Wear 27% • Kids Wear – Boy, Girls, Infants, Winter We
Slide 13: Business Process
Business Process Transparent and Reasonable Pricing| One Stop Customer Engagement to convert footfalls into shop for entire family| Latest Trend| Strict Meeting Customer sales| Meeting Aspirations| Events, Shows, quality controls Aspirations Promotions, Schemes| Customer Feedback Strategic & Conveni
Slide 14: Store Presence and Strong Product Sourcing Capabilities
Store Presence and Strong Product Sourcing Capabilities Expansion of Stores with Focus on Profitability • V2 Retail opens new stores with a clear focus on profitability. The idea is to do profitable growth than geographical based expansion. • Currently, it owns and operates 44 stores spread out acro
Slide 15: Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities
Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities Hathibagan Jamshedpur Pitampura Average store sizes of 10,000 square feet Haldwani Jaunpaur 14
Slide 16: Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities
Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities Hazaribagh Ranchi Pitampura Ranchi Average store sizes of 10,000 square feet Guwahati Roorkee 15
Slide 17: Recent Promotional Campaign
Recent Promotional Campaign Pitampura 16
Slide 18: Recent Promotional Campaign
Recent Promotional Campaign Pitampura 17
Slide 19: Competitive Strengths
Competitive Strengths • 25 years of experience in serving the Indian Retail space • V2 Retail has a first mover advantage in various Tier-II and Tier-III cities. First mover advantage • It is one of the pioneers in opening stores in smaller Indian towns and Tier-II and Tier-III cities like Jaunpur,
Slide 20: Key Management Profile
Key Management Profile Name & Designation Brief Profile • Mr. Agarwal holds a bachelor’s degree in Commerce • He has more than 25 years of entrepreneurial and business experience. He has been a member of the Board of Directors since inception. He provides strategic direction to the Company and is th
Slide 21: Management Team
Management Team Name & Designation Brief Profile Mr. Pratik Adukia • Mr. Adukia is commerce graduate and CA Inter. Head – Merchandising • He has more than 15 years of experience in Retail Industry • Mr. Kaushik is a Chartered Accountant Mr. Vipin Kaushik • He has more than 11 years of experience in
Slide 22: Section 4: Business Strategy
Section 4: Business Strategy 21
Slide 23: Business Strategy …1
Business Strategy …1 Develop own brands & increase share of Private label Cross Promotion Focus on increasing through Intelligent same stores sales Marketing growth Drive Revenue Further Scaling up the retail Strengthening presence by adding 2 Procurement laq sq ft every year Network Continue to pro
Slide 24: Business Strategy …2
Business Strategy …2 Profitable Growth System & Processes for Inventory Management better efficiency Moving up the Value Growth in Zero working capital Chain Net Profit debt based expansion 23
Slide 25: Section 5: Industry Overview
Section 5: Industry Overview 24
Slide 26: Indian Retail industry
Indian Retail industry Overview Indian Retail Market Size • The Indian Retail sector is emerging as one of the Indian Retail sales to surge by 2 times by FY20 largest sector in the economy. Market Size (USD Billion) • Retail industry is expected to grow to US$ 1.3 trillion 1400 1200 by 2020, registe
Slide 27: Indian Retail Industry
Indian Retail Industry Rural - Urban Population Rural - Urban Population (%) The share of rural population in the total population has 100 declined from 80.1% in 1971 to 68.8% in 2011. 80 69 The primary reason for the higher share of unorganised retail 60 80 77 74 72 in India emanates from the f
Slide 28: Organised Retailing – Demand Supply Gap in Tier – II and Tier – III Cities
Organised Retailing – Demand Supply Gap in Tier – II and Tier – III Cities Demand Side Scenario Growing Greater Growing Easy access to Consumerism consumer Affordability credit awareness Increasing Increased Increasing Growing youth High propensity percentage of penetration of internet population to
Slide 29: Section 6: Key Financial Indicators
Section 6: Key Financial Indicators 28
Slide 30: Financial Highlights – Quarterly Performance (Q1FY18)
Financial Highlights – Quarterly Performance (Q1FY18) Particulars (₹ in Crores) Q1FY18 Q1FY17 Y-o-Y FY2017 Revenue 142.3 108.2 31% 471.4 Gross Profit 44.5 31.2 43% 138.1 Gross Margin (%) 31.3% 28.9% 29.3% EBIDTA 15.4 12.0 28% 44.6 EBIDTA Margin (%) 10.8% 11.1% 9.5% Profit Before Tax 13.8 8.0 73% 31.
Slide 31: Financial Highlights – Quarterly Performance
Financial Highlights – Quarterly Performance Profit Before Tax: Profit Before Tax (PBT) grew by 73% Y-o-Y in Q1FY18 from ₹ 8 crores to ₹ 13.80 crores. Profit After Tax (PAT): Profit After Tax (PAT) grew by 85% Y-o-Y in Q1FY18 from ₹ 4.7 crores to ₹ 8.7 crores. Others: The company has opened 2
Slide 32: Financial Highlights – Profit & Loss Account
Financial Highlights – Profit & Loss Account ₹ in Million Particulars FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CAGR Revenue from Operations 402 1,057 2,289 2,868 3,199 4,714 64% Growth (%) 163.1% 116.6% 25.3% 11.6% 47.3% Gross Profit 91 267 567 814 956 1,381 72% GP Margin (%) 22.7% 25.3% 24.8% 28.4
Slide 33: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet ₹ in Million Particulars FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Equity Capital 224 224 224 236 249 309 Reserve & Surplus 2,530 2,478 2,407 2,505 2,626 3,445 Share Warrants - - - 7 85 19 Defered Tax Assets (2,691) (2,709) (2,711) (2,624) (2,544) (2,427) Networt
Slide 34: Robust Financial Performance
Robust Financial Performance Revenue (₹ Million) EBIDTA (₹ Million) and EBIDTA Margins PBT (₹ Million) and PBT Margins PAT (₹ Million) and PAT Margins 33
Slide 35: Key Operating Metrics
Key Operating Metrics No. of Stores and Retail Space (lakh sq.ft.) Inventory Holding Days Sales per Sq.Ft. (₹ Per Month) Rent per Sq.Ft. (₹ Per Month) 34
Slide 36: Thank You
Thank You For further information please contact: Dr. Rahul Porwal Mr. Vipin Kaushik (CFO) Marathon Capital Advisory Private Limited V2 Retail Limited Tel : +91-22-40030610 Tel : +91-11-41771850 Email : rahul@marathoncapital.in Email : vipin.kaushik@vrl.net.in 35