Electronics Mart India Limited · NSE:EMIL
Electronics Mart India — Q2 FY24 Earnings Presentation
40 slides from Electronics Mart India's earnings presentation, Nov 3, 2023
Slide 1: Electronics Mart India Limited – Investor Presentation Intimation
Mi Hectronics Mart inita limited BAJAJ ELECTRONICS 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
Slide 2: Investor Presentation November 2023
Investor Presentation November 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: Q2 & H1 FY24 Business & Financial Performance
Q2 & H1 FY24 BUSINESS & FINANCIAL PERFORMANCE
Slide 5: Strong Q2FY24 Performance
STRONG Q2FY24 PERFORMANCE Revenue from Operations EBITDA Profit Before Tax Profit After Tax Rs. 1,313 crores Rs. 97 crores Rs. 50 crores Rs. 37 crores 7% 28% 55% 55% Sales Mix Store Ownership Format wise Retail Sales Mix Retail Store Area 11 11 2.3% 15% 1.31 Mn Sq. Ft. 6 0 , 0 0 0 S q f t of s t or
Slide 6: Strong H1FY24 Performance
STRONG H1FY24 PERFORMANCE Revenue from Operations EBITDA Profit Before Tax Profit After Tax Rs. 3,002 crores Rs. 227 crores Rs. 131 crores Rs. 98 crores 14% 31% 50% 51% Sales Mix Store Ownership Format wise Retail Sales Mix Retail Store Area 11 11 2.1% 14% 1.31 Mn Sq. Ft. 9 0 , 0 0 0 S q f t of s t
Slide 7: Q2 & H1 FY24 Financial Highlights
Q2 & H1 FY24 FINANCIAL HIGHLIGHTS Revenue from Sale of Electronic & Total Revenues (Rs. Crs.) Same Store Sales Growth (SSSG) Consumer Durables +7% +14% Online Wholesale Retail 1,313 3,002 Q2 FY24 H1 FY24 1,228 2,636 1% 0% 1% 1% 1% 0% 1% 0% 91% 99% 98% 99% 2.3% 8.4% Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2
Slide 8: Q2 & H1 FY24 Financial Highlights
Q2 & H1 FY24 FINANCIAL HIGHLIGHTS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) +28% +31% 130 bps 100 bps +55% +51% 97 227 7.4% 7.5% 37 98 75 6.1% 6.5% 172 24 65 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 PAT Margins RoCE# RoE 80 bps 80
Slide 9: Strong Balance Sheet
STRONG BALANCE SHEET Debt to Equity Ratio Working Capital* Net Debt to Equity Gross Debt to Equity Inventory Days Recievable Days Creditor Days 1.0 In Days 66 67 59 0.9 60 60 0.6 53 0.2 0.3 0.2 9 9 9 2 2 2 Mar-22 Mar-23 Sep-23 Mar-22 Mar-23 Sep-23 Net Debt to EBITDA # Cash Flow from Operations (Rs.
Slide 10: Cluster Based Financials Highlights
CLUSTER BASED FINANCIALS HIGHLIGHTS North Cluster Retail Sales (Rs. Crs.) NCR EBITDA Margin % Operations in MBO : 14 74 Delhi NCR began EBO : 1 Cities : 4 in August 2022, 52 53 55 which shall H1 FY24 perform in line of 26 ~ 0.4%* South Cluster in coming years Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Slide 11: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) Q2FY24 Q2FY23 YoY H1FY24 H1FY23 YoY Revenue from Operations 1,313.2 1,227.7 7% 3,002.3 2,636.2 14% Purchases of stock in trade 1,216.0 1,306.7 2,526.6 2,377.7 Changes in Inventory -98.5 -246.5 34.3 -106.0 Gross Profit 195.7 167.5 17% 441.4 364.
Slide 12: Balance Sheet
BALANCE SHEET Assets (in Rs. Crs.) Sep-23 Mar-23 Equity & Liabilities (in Rs. Crs.) Sep-23 Mar-23 Non - Current Assets 1,304.0 1,285.9 Total Equity 1,282.1 1,184.3 Property Plant & Equipments 541.4 509.9 Share Capital 384.7 384.7 CWIP 25.4 13.9 Reserves & Surplus 897.4 799.6 Intangible assets 0.4 0.
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT Particulars (Rs. Crs.) Sep-23 Sep-22 Net Profit Before Tax 130.9 87.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 95.0 84.0 Operating profit before working capital changes 225.9 171.4 Changes in working capital 79.6 -141.8 Cash generated from Operations
Slide 14: Overview & Key Strategies
Electronics Mart India Limited OVERVIEW & KEY STRATEGIES
Slide 15: 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 127 EBOs 13 P Diversified product offerings from 70+ brands comprising of more than 6,000 SKU across product
Slide 16: 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 cou n t reach ed : 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 Aw
Slide 17: 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 18: 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 52 4 140 105 MBO : 14 EBO : 1 Cities : 4 127 MBO; 13 EBO Retail Area Central Warehouses 13 1.31 mn. sq.
Slide 19: 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 1,185 Mobiles from 29% (FY19) to 37% in FY23 1,031 Phones, Fitness Tracker Revenue Split (H1FY24) & Tablets Have relationships with the large brands in this s
Slide 20: Rapid Store Expansion
RAPID STORE EXPANSION Stores 71 +31.0% 93 +10.8% 103 +23.3% 127 +10.2% 140 Retail ‘000s sq. ft 765 +23.0% 940 +10.7% 1,041 +17.4% 1,222 +7.5% 1,314 140 13 24 10 22 59 12 Opened 12 22 11 24 14 Closed - - 1* - 1 FY19 FY20 FY21 FY22 FY23 FY24 additions H1FY24 Particulars FY20 FY21 FY22 FY23 H1FY24 Stor
Slide 21: Our Retail Outlets
OUR RETAIL OUTLETS 20
Slide 22: Our Specialised Retail Stores
OUR SPECIALISED RETAIL STORES 21
Slide 23: 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 24: 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 25: 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 26: 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 27: Senior Management Team
SENIOR MANAGEMENT TEAM Premchand Devarakonda Sandeep Singh Jolly Giridhar Rao Chilamkurthi Chief Financial Officer Chief Operating officer Vice-President - Sales • Qu alified Ch artered Accou n tan t an d • Post graduate diploma in Business Management • Hold s Master’s d egree in h old s Bach elor’s
Slide 28: 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 27
Slide 29: 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 30: 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 31: Historical Highlights
Electronics Mart India Limited HISTORICAL HIGHLIGHTS
Slide 32: 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 33: 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 34: 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 35: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital* Inventory Days Recievable Days Creditor Days Working Capital Days 63 days 73 days 66 days 68 days 63 60 60 54 10 11 9 9 1 1 2 0 Mar-20 Mar-21 Mar-22 Mar-23 Debt to Equity Ratio Net Debt to EBITDA Cash Flow from Operations (Rs. Crs.) Net Debt to Equity Gross Debt
Slide 36: 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 37: 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 1,285.9 875.4 720.2 625.9 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 38: 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 39: 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 40: 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 / Mr. Harsh Shah premchand.d@bajajelectronics.in deven.dhruva@sgapl.net / harsh.shah@sgapl.net
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