Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY14 Earnings Presentation
30 slides from Vaibhav Global's earnings presentation, July 2013
Slide 1: Vaibhav Global Limited Q1 FY14 Financial Results Presentation
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Q1 FY14 Financial Results Presentation July 2013
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Business Highlights
Business Highlights Vertically-integrated electronic retailer of fashion and lifestyle accessories Demonstrated profitable growth with direct-to-consumer business model on home shopping and e-commerce platforms with US and UK denominated revenue operations Owns ‘The Liquidation Channel’ and ‘The Jew
Slide 4: Table of Contents
Table of Contents Q1 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q1 FY14
Key Highlights for Q1 FY14 Home TV Network Reaches Over 100 Million Households • 87 million households on full time equivalent (FTE) basis • 63 million households in the US • 20 million households in the UK • 18 million households in Canada Retail Volumes Rise 35% to 1.9 Million Units • Volume growt
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q1 FY14 performance, Mr. Sunil Agrawal , Chairman, Vaibhav Global said: “We have started this year on a strong note, both our revenue growth of 25% and operating margins of 14% exceed the guidance shared last quarter. Our results in Q1 demonstrate the performance in
Slide 7: Financials – Q1FY14 Performance (Revenues)
Financials – Q1FY14 Performance (Revenues) Revenues (Rs. Crore) 251 200 Q1 FY13 Q1 FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 188 29 30 33 150 21 Q1 FY13 Q1 FY14 Q1 FY13 Q1 FY14 Q1 FY13 Q1 FY14 7
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 1,377 25 24 1,101 • Strong volume growth – 25% volume growth on TV and 72% on Web • Growth driven by expansion of fashion jewelry and lifestyle accessories lines Q1FY13 Q1FY14 Q1FY13 Q1FY14 • Concerted efforts at driv
Slide 9: Financials – Q1FY14 Performance (Margins)
Financials – Q1FY14 Performance (Margins) Rs. crore Gross Profit Gross margin 180 70% 64% 65% 160 65% 140 60% • Gross margins are stable y-on-y but have 120 55% improved significantly on a sequential 100 quarter basis (Q1 vs Q4) as discounting 50% 80 schemes were rationalized on customer 45% 60 dema
Slide 10: Financials – Q1FY14 Performance (Profits)
Financials – Q1FY14 Performance (Profits) PAT PAT margin 30 17.0% 25 16.0% • PAT expansion is in line with improvement Rs. crore 20 16.0% in core business profitability as the company 15 15.0% operates on a lean asset profile. 10 14.0% 14.0% 5 28 40 0 13.0% Q1FY13 Q1FY14 Return Ratios 50% 40% • Sign
Slide 11: Table of Contents
Table of Contents Q1 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 11
Slide 12: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. Crore) 893 647 526 338 251 FY10 FY11 FY12 FY13 Q1 FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 687 117 85 91 89 483 73 395 54 263 46 188 21 33 30 FY10 FY11 FY12 FY13 Q1 FY14 FY10 FY11 FY12 FY13 Q1 FY14 FY10 FY11 FY12 FY13 Q1 FY
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 5,197 82 3,268 2,039 41 • Volumes have expanded significantly 30 1,377 24 24 across both sales platforms (TV and Web) 698 even as the product mix has transitioned from precious jewelry to fashion jewelry FY10 FY11 FY1
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 600 65% 70% 59% 60% 500 55% 60% 50% 400 • Gross margins have continued to expand 36% 40% as material cost are lower in a product 300 30% portfolio that has transitioned from fine 200 20% jewelry to the current lines of fashi
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 100 16% 20% 80 12% 15% 60 8% 8% 10% • Expanding the resource base across both 40 5% US and UK impacted profits, the company 20 42 79 78 40 0% is now focused on growing market share 0 -5% and will continue to re-invest in various -47 -2
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Shareholders’ Equity Fixed Assets 265 207 205 203 205 186 159* 58* FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due to * During FY13 fixed assets were adjusted lower by Rs. 151.1 cr due
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Operating Cash flow Free Cash Flow 74 90 48 44 54 52 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 -36 -27 17
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 49% 50% 34% 31% 23% 30% 21% 15% FY10 FY11 FY12 FY13 Q1 FY14 FY10 FY11 FY12 FY13 Q1 FY14 -9% -26% Working Capital Days 166 114 117 88 FY10 FY11 FY12 FY13 18
Slide 19: Table of Contents
Table of Contents Q1 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Market Opportunity
Market Opportunity US market size (US$ Bn) UK market size (US$ Bn) Fashion Fashion Accessories Accessories 17 6 Fine and Fine and Fashion Fashion Jewelry 67 Jewelry 8 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile JEWELLERY FASHION FINE & Product catalogue includes bracelet, bangle, earring, studded jewelry etc. ACCESSORIES FASHION Product catalogue includes watches, bags, phone protective shell etc. PRODUCTS LIFESTYLE OTHER Product catalogue includes office and home décor, etc. Continuously e
Slide 22: US Market Access on Liquidation TV Channel
US Market Access on Liquidation TV Channel https://www.liquidationchannel.com Access to 63 million of the 116 million households in the US 22
Slide 23: UK Market Access on the Jewellery Channel
UK Market Access on the Jewellery Channel www.thejewellerychannel.tv Access to 20 million households of the total 25 million households 23
Slide 24: Integrated Global Operations
Integrated Global Operations SOURCING MARKETS India Asia • Corporate HQ – Jaipur, Rajasthan • China is the hub for sourcing • ISO 9001:2008 manufacturing fashion and lifestyle accessories, facilities accessed from multiple locations • Production capacity - ~3 million • Sourcing capacity from China -
Slide 25: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target markets Competitive Pricing Mapping latest fashions Vendor Core evaluation competency process of vendor Rapid turnaround Sourcing from appropriate micro-markets in China/Asia Delivery/ Low Focus on best qualit
Slide 26: Aligned with Demand Patterns
Process Aligned with Demand Patterns Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Spring Mothers’ Summer Product development strategies – by Product Line Day Line category Process begins – September Process begins – December Process begins – Decembe
Slide 27: Management Team
Management Team Sunil Agrawal Rahimullah Chairman Managing Director, VGL India Established Vaibhav in 1980 as a first generation Beginning his career in emerald trading and exports, he has entrepreneur and has led the company’s transition gained considerable experience and knowledge in this fiel
Slide 28: Management Team
Management Team Michael Raisbeck Praveen Tiwari Senior Vice President , Group Human Resources Vice President , STS China Responsible for HR strategy and systems Extensive cross-industry HR leadership and management Over 15 years at VGL, currently heads the group’s China experience of over 25 y
Slide 29: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Anshuman Khandelwal Vaibhav Global Ltd Tel: +91-141-2770648 Email: anshuman.khandelwal@vaibhavglobal.com Shiv Muttoo / Dipti Yadava CDR-India Tel: +91 22 6645 1207 / 1218 Email: shiv@cdr-india.com dipti@cdr-india.com
Slide 30: Thank You
Thank You 30