Aditya Vision Ltd. · NSE:AVL
Aditya Vision — Q2 FY25 Earnings Presentation
39 slides from Aditya Vision's earnings presentation, Nov 12, 2024
Slide 1: Submission of Investor Presentation to Exchanges
R R R Aditya Vision Limited R R R R R Date- November 12, 2024 To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai-400 001 Mumbai- 400051 Scrip Code: 540205 Symbol-AVL Sub:- Submission of Investor Pre
Slide 2: 25 Years: A legacy of Promise, Performance & Progress
25 Years: A legacy of Promise, Performance & Progress Investor Presentation November 2024
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 4-11 Q2 & H1FY25 Highlights 12-20 Business Overview 21-24 Historical Performance 25-32 Industry Overview 33-38 Appendix Q4FY24 Earnings Presentation 3
Slide 5: Q2 & H1FY25 Financial Highlights
Q2 & H1FY25 FINANCIAL HIGHLIGHTS 4
Slide 6: Q2FY25: Overview
Q2FY25: Overview 01 Opened Six new Stores in Q2, Store Count Touched 156 02 Healthy Revenue Growth of 20% YoY in Q2 03 EBITDA Margins Stands Strong at 8.0%; PAT Grew 27% YoY in Q2 “Despite the challenges posed by heavy rains and Shradh period, we have delivered a strong performance in a seasonally w
Slide 7: Q2 & H1FY25 Financial Performance
Q2 & H1FY25 Financial Performance (Rs. in Cr) Revenue EBITDA PBT PAT 20% 30% 30% 27% 376 Q2FY25 313 30 16 23 12 12.2 9.6 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Margins 7.4% 8.0% 3.9% 4.3% 3.1% 3.3% 33% 33% 42% 39% 954 1,265 115 86 88 65 H1FY25 62 47 H1FY24 H1FY25 H1FY24 H1FY25 H1FY2
Slide 8: H1FY25 Operational Performance
H1FY25 Operational Performance (Rs. in Cr) Same Store Sales Growth (%) Bill Cuts (Nos. in Lacs) Average Selling Price (Rs) 38% -1.3% 19% 572 22,491 22,193 H1FY25 17% 416 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 Product Mix (%) Store Count (Nos.) Retail Footprint (Sq. ft.) 15% 17% 20% 20% 20% 18% 6,
Slide 9: Q2 & H1FY25 Financial Performance
Q2 & H1FY25 Financial Performance Particulars (Rs in Cr) Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Revenue from Operations 376 313 20.0% 1,265 954 32.5% Total Expenditure 346 290 19.2% 1,149 868 32.4% EBITDA 30 23 30.4% 115 86 33.4% EBITDA Margin % 8.0% 7.4% 63.4bps 9.1% 9.1% 5.9bps Depreciation 10 7 53.2
Slide 10: Balance Sheet
Balance Sheet Particulars (Rs in Cr) Sep-24 Mar-24 Particulars (Rs in Cr) Sep-24 Mar-24 Equity Non-Current Asset (a) Equity Share Capital 13 13 Property, Plant and Equipment 84 78 (b) Other Equity 529 474 Capital Work in Progress 12 9 Total Equity 542 487 ROU 166 166 Non-current Liabilities Financia
Slide 11: Cash Flow Statement
Cash Flow Statement Particulars (Rs. In Cr) Sept-24 Mar-24 Net Profit before tax 88 107 Adjustments for : Add : Depreciation 19 29 Add : Interest Expenses 12 39 Add : Shared based payment expenses 1.3 8 Add : Asset Written off 4 2 Less: Investment Income -4 -7 Adjustments For Working Capital Movemen
Slide 12: Roadmap Ahead
Roadmap Ahead Targeting to grow at 20-25% Revenue CAGR over the next 3 – 5 years Progressing towards Central UP from Eastern UP. 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
Slide 13: Business Overview
BUSINESS OVERVIEW 12
Slide 14: 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 in Jharkhand Outlets 156 Showrooms As on 30th Sept 100+ 1st Consumer Rs 282 Cr 4,000+ Long Term Relationships 2016 Avg store size First
Slide 15: 25 years of Aditya Vision – Sambandh Bharose ka
25 years of Aditya Vision – Sambandh Bharose ka 2024: First fund raise after IPO from the one of the World’s largest FII – Capital Group Opened 18 stores in UP in one year Crossed 100 stores in Bihar 2016: 1st Consumer Electronics Company to be listed 2023: Started expanding in UP ; 1,743 on Exchang
Slide 16: Our 5 Driving Principles
Our 5 Driving Principles Customer-centric Large Supplier Scaling up business Prudent Capital Building a people- approach based on base (Brands) to pass on better Allocation with centric culture within providing Best selling their prices to customers Strong Corporate a technology-driven Range, Lowest
Slide 17: Unique Business Model
Unique Business Model OEM Supply Customer Service ▪ 85% Direct OEM Supply leading ▪ Aditya Seva - One-stop solution for to higher margins after-sales services. ▪ 15% 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 60-70 lacs 156 (as on 30 Sep) th 13-15% Average Capex per Store Outlets in Bihar + Jharkhand + UP Gross Margin Range --------------------------------------------------- ----------------------------------------------- ----------------------------------------- Rs 2.
Slide 19: Business Economics
Business Economics (% of Sales) FY20 FY21 FY22 FY23 FY24 Gross Margin (%) 11% 12% 16% 16% 16% Gross Margin has increased with scale Employee Cost 3% 3% 3% 3% 3% Low store-level employee cost Rent* 1% 2% 2% 2% 2% Average rent of Rs 2 – 2.25 lacs p.m/store. Advertisement & Publicity 1% 1% 1% 1%
Slide 20: Strategic Focus on Hindi Heartland Region
Strategic Focus on Hindi Heartland Region V BIHAR - 106 STORES (Present in all 38 districts) People living in Bihar, Jharkhand & UP JHARKHAND - 27 STORES constitute 30% of India’s Population (20 Districts Covered out of 24 Districts) • Estimated Population of Bihar: 13 crores UTTAR PRADESH - 23 STOR
Slide 21: Revenue Seasonality of the Business
Revenue Seasonality of the Business Quarterly Share of Revenue(%) Peak Summer Season + Marriage Season + Strong Q1 35% Demand for Cooling Products + Major Stocking up prior to this quarter Q2 19% Weaker Quarter owing to Monsoon + Shraadh months Q3 24% Festive Season with attractive Brand Offers Marr
Slide 22: Historical Performance
HISTORICAL PERFORMANCE 21
Slide 23: Historical Financial Highlights
Historical Financial Highlights Revenue EBITDA & EBITDA Margins PAT & PAT Margins 33% CAGR:42% 33% CAGR:48% 39% CAGR:39% 167 1,743 133 77 1,322 1265 115 64 65 10.1% 4.9% 9.6% 899 954 83 86 3.9% 47 5.2% 4.9% 4.4% 9.2% 9.1% 35 9.1% FY22 FY23 FY24 H1FY24 H1FY25 FY22 FY23 FY24 H1FY24 H1FY25 FY22 FY23 FY
Slide 24: Historical Financials and Operational Performance
Historical Financials and Operational Performance Inventory Days** Payable Days** Working Capital Days 106 87 98 91 77 83 76 66 62 53 45 17 19 13 14 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 *Receivable Days are less than 0 since the Company has negligible Trad
Slide 25: Focussed on Growth
Focussed on Growth High Growth Trajectory while maintaining Return Ratios Gross Margin % ROCE & ROE* (%) 15.8% 16.0% 16.0% 12.3% 10.7% 60% 48% 55% 46% 2020 2021 2022 2023 2024 43% With Size, our Gross Margins have improved keeping customer value in focus. 24% 29% 28% 24% 25% PAT Margin % ROCE 4.9% R
Slide 26: Industry Overview
ADITYA VISION Industry Overview
Slide 27: Powering India's Retail Surge: Driving Consumer Spending Growth
Powering India's Retail Surge: Driving Consumer Spending Growth Consumer Durables Market Growth (Rs Trn) Shift in Consumption Pattern towards Non-Food Categories CAGR % share of monthly per capita consumption exp 11-15% 700ps 400bps CAGR 8% 57% 61% 54% 47% 2011-12 5.1 2022-23 3.1 3.6 2.1 2.4 Rural U
Slide 28: Low Penetration and Rising premiumization is in favor for AVL
Low Penetration and Rising premiumization is in favor for AVL Share of Split ACs is on a rise Demand for Fully Automated WMs continuously rising Penetration in India (%) Window Split Semi Fully 60% 57% 62% 73% 81% 35% 43% 38% 27% 19% FY17 FY22 FY17 FY22 10% 8% 6% Share of Bigger Size TV Increasing F
Slide 29: Market Penetration & Opportunity in Hindi Heartland
Market Penetration & Opportunity in Hindi Heartland Source: www.statsofindia.in , Business Standard 28
Slide 30: Rising Prosperity in Underpenetrated Hindi Heartland
Rising Prosperity in Underpenetrated Hindi Heartland 29
Slide 31: Electricity Consumption Growth In Hindi Heartland States vs Other States
Electricity Consumption Growth In Hindi Heartland Sates vs Other States has grown by 2x 211% ~2.1x 171% ~1.7x 164% ~1.6x 139% ~1.4x 130% ~1.3x 100% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Bihar Jharkhand Uttar Pradesh Maharashtra Gujarat Source: Central Electricity Authority, MoSPI *The startin
Slide 32: Hindi Heartland– Engine for Aditya Vision’s Sustainable Growth
Hindi Heartland– Engine for Aditya Vision’s Sustainable Growth India’s 3rd largest Ranked 11th in economy - 8% India in terms of FDI contribution to inflows National GDP UTTAR Attractive economics of Bihar and Jharkhand PRADESH Breached $1000 Ranked 7th in the In the recent Union Budget, govt total
Slide 33: Shift from Unorganised to Organised
Shift from Unorganised to Organised: Aditya Vision is well Positioned to benefit Rapid Shift from Overall Un-Organised to Organised sector in Indian Consumer’s Durable Industry Organised Unorganised 23% 42% 51% 77% 58% 49% FY16 FY21 FY27P Organised Sector to Grow Faster than Overall Consumer Electro
Slide 34: Appendix
APPENDIX 33
Slide 35: Our Trade Partners
Our Trade Partners Our Consumer Finance Partners ~41% Sales Financed in FY24 34
Slide 36: 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 ✓ Founder, Promoter and Non- Managing Director D
Slide 37: Independent Directors
Independent Directors ` Ravinder Zutshi Nusrat Syed Hassan Atul Sinha Apeksha Agiwal Rahul Kumar Independent Director Independent Director Independent Director Independent Director Independent Director ✓45+ years of experience in ✓Managing Director at ✓35+ years at UCO Bank in ✓Highly qualified ✓Qua
Slide 38: In-Store Photo Gallery
In-Store Photo Gallery 37
Slide 39: Thank You
Thank You For further information, please contact: Aditya Vision Ltd. Ms. Akanksha Arya-Company Secretary Tel: +91-612-2520854 Email: cs@adityavision.in www.adityavision.in Investor Relations Contact: Monali Jain – Sr. Research Analyst Tel: +91-8078675682 Email: monali@goindiaadvisors.com Sheetal Kh