Aditya Vision Ltd. · NSE:AVL
Aditya Vision — H1FY24 Earnings Presentation
38 slides from Aditya Vision's earnings presentation, Nov 3, 2023
Slide 1: Aditya Vision Limited - Submission of Investor Presentation
R R R Aditya Vision Limited R R R R R Date- November 03, 2023 BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 SCRIP Code: 540205 Sub:- Submission of Investor Presentation Dear Sir(s) With reference to the above captioned subject, please find attached herewith Investor Presentation
Slide 2: North & East India's Largest Consumer Electronics Retailer
North & East India’s Largest Consumer Electronics Retailer Investor Presentation November 2023
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Aditya Vision Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not form the
Slide 4: Table of Contents
Table of Contents 5-10 H1FY24 Highlights 12-22 Business Overview 24-27 Historical Performance 29-30 Industry Overview 32-38 Appendix Q2FY24 Earnings Presentation 3
Slide 5: H1FY24 Highlights
H1FY24 Highlights
Slide 6: Strong H1FY24 Financial Performance
Strong H1FY24 Financial Performance Revenue EBITDA PBT PAT 37% 27% 29% 24% 62 47 86 954 38 H1FY24 68 48 698 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 47% 60% 100% 83% 1,322 133 86 64 FY23 899 83 43 35 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 (Rs. in Crs) Q2FY24 Earnings Presentation 5
Slide 7: H1FY24 Operational Performance (1/2)
H1FY24 Operational Performance (1/2) Same Store Sales Growth (%) Bill Cuts (000 in Nos.) Average Selling Price (Rs.) 31% 6% 68% 416 22,491 H1FY24 318 21,124 19% H1FY23* H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 44% 5% 32% 617 21,156 FY23 429 20,173 4% FY22** FY23 FY22 FY23 FY22 FY23 For SSSG of FY23, we ha
Slide 8: H1FY24 Operational Performance (2/2)
H1FY24 Operational Performance (2/2) Product Mix (%) Store Count (Nos.) Retail Footprint (Sq ft) 48% 41% 14% 15% H1FY24 130 5,43,600 19% 20% 88 3,84,800 67% 65% H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 Home and Entertainment Solutions Digital Gadgets Others 33% 35% 12% 12% FY23 17% 19% 105 4,32,900
Slide 9: H1FY24 Balance Sheet Highlights
H1FY24 Balance Sheet Highlights Working Capital Days Net Debt to EBITDA (x) Net Debt to Equity (x) Earnings Per Share (Rs.) 24% 70 1.47 65 39 53 1.17 0.7 0.7 52 31 H1FY24 17 13 H1FY23 H1FY24 H1FY23 H1FY24 FY22 FY23 H1FY23 H1FY24 Inventory Days Payable Days WC Days 83% 98 83 1.6 53 66 1.54 FY23 53 45
Slide 10: Q2 & H1FY23 Financial Performance
Q2 & H1FY23 Financial Performance Particulars (Rs in Cr) Q2FY24 Q2FY23 YoY% H1FY24 H1FY23 YoY% Revenue from Operations 313.1 259.6 21% 954.4 698.1 37% Total Expenditure 290.1 236.5 23% 868.0 630.0 38% EBITDA 23.1 23.1 --- 86.4 68.1 27% EBITDA Margin % 7% 9% --- 9% 10% --- Other Income 2.4 0.54 344%
Slide 11: H1FY24 Balance Sheet
H1FY24 Balance Sheet Particulars (Rs in Cr) H1FY24 H1FY23 Particulars (Rs in Cr) H1FY24 H1FY23 Equity Non-Current Asset (a) Equity Share Capital 12.03 12.03 Property, Plant and Equipment 66.76 52.44 (b) Other Equity 166.29 104.50 Capital Work in Progress 6.32 - Total Equity 178.32 116.53 ROU 147.07
Slide 12: Business Overview
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Slide 13: Aditya Vision at a Glance
Aditya Vision at a Glance Patna Headquarters 50%+ Mkt Share Largest Electronic 100% Retail 10,000+ In Bihar as per Crisil Report Retailer Sales Products sold at our Outlets 130 in Jharkhand Showrooms Till Date 100+ 1st Consumer 4,000+ Long Term Relationships with Electronics Retailer 2016 Rs 5.8 cr
Slide 14: Our Journey: 7 Year Revenue CAGR - 28%
Our Journey: 7 Year Revenue CAGR – 28% Average Store Format: 4,000+ Sq Ft SKUs: 10,000+ OEM Relationship: 100+ No Private Labels 2014: Initiated Expansion in 2019: Revenues INR 500+ Cr 2021: Covered all major districts 2022: Revenues INR 1,000+ Cr Bihar of Bihar - 50%+ Market Share 2022: Started exp
Slide 15: Stakeholder Value Creation
Stakeholder Value Creation: High Growth Trajectory while maintaining Return Ratios Gross Margin % ROCE & ROE* (%) 16% 16% 12% 10% 11% 60% 48% 55% 46% 2019 2020 2021 2022 2023 43% 33% With Size, our Gross Margins have improved keeping 29% 28% customer value in focus. 24% 25% ROCE ROE PAT Margin % 5%
Slide 16: Our Driving Principles
Our 5 Driving Principles Customer-centric Large Supplier Scaling up business Prudent Capital Technology driven approach based on base (Brands) to pass on better Allocation with business backed by providing Best selling their prices to customers Strong Corporate Customer focused Range, Lowest Price,
Slide 17: Unique Business Model
Unique Business Model OEM Supply Customer Service ▪ 80% Direct OEM Supply leading ▪ Aditya Seva - One-stop solution for to higher margins after-sales services. ▪ 20% Distributors/C&F Agents ▪ Aditya Suraksha – Allows customers to ▪ Long-term relationships with enjoy an extended warranty 100+ brands
Slide 18: Store Unit Economics At A Glance
Store Unit Economics At A Glance Rs 50-60 lacs 130 (Till date) 12-15% Average Capex per Store Outlets in Bihar + Jharkhand + UP Gross Margin Range --------------------------------------------------- ----------------------------------------------- ----------------------------------------- Rs 2 – 2.25
Slide 19: Common Store Economics
Common Store Economics (% of Sales) FY17 FY18 FY19 FY20 FY21 FY22 FY23 Gross Margin (%) 7% 9% 10% 11% 12% 16% 16% Gross Margin has increased with scale Employee Cost 2% 3% 3% 3% 3% 3% 3% Low store-level employee cost Rent* 1% 1% 1% 1% 3% 3% 2% Average rent of Rs 2 lacs p.m/store. Advertisement
Slide 20: Strategic Focus on Hindi Heartland Region
Strategic Focus on Hindi Heartland Region BIHAR - 97 STORES (37 Districts Covered out of 38 Districts) JHARKHAND - 20 STORES People living in Bihar, Jharkhand & UP (17 Districts Covered out of 24 Districts) UTTAR PRADESH - 13 STORES constitute 30% of India’s Population (9 Districts Covered out of 75
Slide 21: Revenue Seasonality of the Business (5 yrs avg.)
Revenue Seasonality of the Business (5 yrs avg.) Quarterly Share of Revenue(%) Peak Summer Season + Marriage Season + Strong Q1 30% Demand for Cooling Products + Major Stocking up prior to this quarter Q2 18% Weaker Quarter owing to Monsoon + Shraadh months Q3 28% Festive Season with attractive Bran
Slide 22: Roadmap Ahead
Roadmap Ahead Targeting to grow at 20-25% Revenue CAGR over the next 3 – 5 years. Business is ready to scale beyond Bihar, Jharkhand & Uttar Pradesh to adjoining states in the “Hindi Heartland” over the next 3-5 years based on “Creeping Cluster Approach” Reinvest our Cash Flows at a High ROIC to tar
Slide 23: Historical Performance
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Slide 24: Historical Financial Highlights
Historical Financial Highlights EBITDA (Rs.) EBITDA Margin(%) PAT (Rs.) 64 133 10% 9% 83 7% 35 53 20 3% 3% 14 25 17 6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PAT Margin (%) Net Debt to EBITDA (x) Net Debt to Equity (x) 1.6 1.5 5% 1.4 1.4 1.3 4% 1.2 3% 0.8 0.7 2% 0.
Slide 25: Historical Operational Performance
Historical Operational Performance Working Capital Days* 106 98 87 83 66 66 54 45 53 41 24 17 19 17 12 FY19 FY20 FY21 FY22 FY23 *Receivable Days are less than 0 since the Company has negligible Trade Receivables **Payables & Inventory Days is calculated based on Purchases and Cost of Goods Sold resp
Slide 26: Annual Income Statement
Annual Income Statement FY21 FY22 FY23 Particulars (Rs in Cr) FY20 (Post IndAS) (Post IndAS) (Post IndAS) Revenue from Operations 797 748 899 1,322 Total Expenditure 772 695 816 1,189 EBITDA 25 53 83 133 EBITDA Margin % 3% 7% 9% 10% Other Income 9 4 1 3 Depreciation 2 13 16 20 Profit Before Interest
Slide 27: Annual Balance Sheet
Annual Balance Sheet Particulars (Rs in Cr) 31 March 2023 31 March 2022 Particulars (Rs in Cr) 31 March 2023 31 March 2022 Equity and Liabilities Assets Equity Non-Current Asset (a) Equity Share Capital 12 12 Property, Plant and Equipment 56 39 (b) Other Equity 124 67 Capital Work in Progress 8 Tota
Slide 28: Industry Overview
Industry Overview
Slide 29: 2x Electrification in Hindi Heartland - Impetus for Growth
2x Electrification in Hindi Heartland – Impetus for Growth Electricity Consumption in Hindi Heartland States Consumer Electronics Market in India grew by vs Other States has grown by ~2x times 29% in value in 2022 Electricity Consumption (Bn Units) 173 187 ~1.4x 45% 95% 158 155 Major Domestic Applia
Slide 30: Market Penetration & Opportunity in Hindi Heartland
Market Penetration & Opportunity in Hindi Heartland Source: www.statsofindia.in , Business Standard Q2FY24 Earnings Presentation 29
Slide 31: Appendix
Appendix
Slide 32: Our Trade Partners
Our Trade Partners Q2FY24 Earnings Presentation 31
Slide 33: Our Consumer Finance Partners
Our Consumer Finance Partners ~35% Sales Financed Q2FY24 Earnings Presentation 32
Slide 34: Board of Directors
Board of Directors Yashovardhan Sinha Nishant Prabhakar Yosham Vardhan Sunita Sinha Chairman & Managing Director Whole Time Director Whole Time Director Non-Executive Director ✓Promoter, Chairman, and ✓ Promoter and Whole-time ✓ Promoter and Whole-time ✓ Promoter, and Non-Executive Managing Director
Slide 35: Independent Directors
Independent Directors Ravinder Zutshi Nusrat Syed Hassan Apeksha Agiwal Atul Sinha Rahul Kumar Independent Director Independent Director Independent Director Independent Director Independent Director ✓45+ years of experience in ✓Currently Managing ✓Highly qualified ✓35+ years at UCO Bank in ✓Qualifi
Slide 36: In-Store Photo Gallery
In-Store Photo Gallery 35 Q2FY24 Earnings Presentation
Slide 37: Awards & Recognition
Awards & Recognition Carrier Carrier AISEN No.1 Bajaj Most Bajaj Highest Carrier – Third Daikin – Highest Daikin – Outstanding Dell –Best Appreciation Superstar Cooler Sales Preferred Partner Growth for Year Highest RAC Sales RA Sales Sales RLFR of Excellence Achiever RAC Hitachi – Best HDB – O/S HD
Slide 38: Thank You
Thank You For further information, please get in touch with: Aditya Vision Ltd. Ms. Akanksha Arya-Company Secretary Tel: +91-612-2520854 | Email:cs@adityavision.in www.adityavision.in Investor Relations Contact: Tanya Verma – Manager, IR Tel: +91-972-7030985 Email: tanya@goindiaadvisors.com Sheetal