Khadim India Limited · NSE:KHADIM
Khadim India — H1 FY2021 Earnings Presentation
30 slides from Khadim India's earnings presentation, Nov 16, 2020
Slide 1: Exchange filing cover letter for investor presentation
November 16, 2020 The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code - 540775 Symbol - K
Slide 2: Q2 & H1 FY21 Results Presentation
Q2 & H1 FY21 RESULTS PRESENTATION NOVEMBER 2020 1
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Khadim India Limited (“Khadim” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial c
Slide 4: Business Overview, Results, Strategy, Financial Summary, Management
BUSINESS OVERVIEW Q2 & H1 FY21 RESULTS BUSINESS STRATEGY & OUTLOOK FINANCIAL & OPERATIONAL SUMMARY MANAGEMENT TEAM & SHAREHOLDING PATTERN 3
Slide 5: Business Overview
BRITISH WALKERS LAZARD BUSINESS OVERVIEW 4
Slide 6: Quick Snapshot
QUICK SNAPSHOT 1 Leading Footwear Brand in India 2 Extensive Reach & Presence • 2nd largest footwear retailer in India * • Retail presence across 23 states & 1 union • Largest presence in East India territory • One of the top 3 players in South India • 785 ‘Khadim’s’ branded retail stores (Sep-20) •
Slide 7: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory Retail Stores 1 Distributors 3 4 5 1 14 3 1 10 20 46 50 Brand Network Sep ‘20 Retail Stores – Tier wise 44 43 1 2 90 38 4 Retail Stores 785 Metros 20% 12 2 26 22 25 32 17 3 - COCO 216 Tier I 48% 16 19 258 243 1 - Fr
Slide 8: New Product Lines & Sub-brands in Distribution
NEW PRODUCT LINES & SUB-BRANDS IN DISTRIBUTION 7
Slide 9: Social Media & E-commerce Engagement
SOCIAL MEDIA & E-COMMERCE ENGAGEMENT @khadimindia @khadimsindia 8
Slide 10: Overcoming Challenges of Lockdown
OVERCOMING CHALLENGES OF LOCKDOWN We understood the inability of our patrons to visit stores due to COVID 19 break-out. In Q1, we took a step to take our products to customers and reach them by launching “On the Go”- a store on wheels; “Hot Spots” – to disseminate Shoe Sanitizer & Masks ; “Khadims N
Slide 11: Marketing Initiatives
Marketing Initiatives Celeb – Quirky Videos Celebrity Influencer Campaign Marketing Innovation 10
Slide 12: Product Campaign
Product Campaign LEAD IN COMFORT LET STYLE FOLLOW MISCHIEVOUSLY COMFORTABLY UR's
Slide 13: Results Update
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Slide 14: Result Highlight – H1 FY21
RESULT HIGHLIGHT – H1 FY21 H1 FY21 Revenues Rs 1,821.5 Mn Retail Distribution Others * • Rev Share – Rs 839.2 m • Rev Share – Rs 94.1 m • Rev Share – Rs 888.2 m • GM – 40.7% • GM – 30.1% COCO Franchises • Rev Share – 54.8% • Rev Share – 45.2% Asset Light Model for Frontend Expansion and Scalability
Slide 15: Q2 & H1 FY21 Results: Segment Analysis
Q2 & H1 FY21 RESULTS: SEGMENT ANALYSIS Q2 FY21 YoY ANALYSIS – REVENUE BREAKUP H1 FY21 YoY ANALYSIS – REVENUE BREAKUP 453 1,051 513 1,422 2,622 888 625 839 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Retail Distribution Retail Distribution Sales growth/degrowth% Q2 FY21 Sales growth/degrowth% H1 FY21 Retail -56.
Slide 16: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY21 Q2 FY20 YoY % Q1 FY21 QoQ % H1 FY21 H1 FY20 YoY % Revenue 1,217.5 2,228.2 -45.4% 604.0 101.6% 1,821.5 4,388.9 -58.5% COGS 831.6 1,383.7 -39.9% 431.9 92.6% 1,263.2 2,755.1 -54.1% Gross Profit 385.9 844.5 -54.3% 172.1 124.2% 558.2 163
Slide 17: Balance Sheet
BALANCE SHEET Particulars (In Rs Mn) Sep-20 Mar-20 Particulars (In Rs Mn) Sep-20 Mar-20 Equity Non-Current Assets Equity Share capital 179.7 179.7 Property, Plant and Equipment 1,204.9 1,299.7 Other Equity 1,666.7 2,154.8 Capital work - in - progress 8.3 5.5 Right of Use Assets 1,239.6 1,467.6 Non-C
Slide 18: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 19: Financial Summary
FINANCIAL SUMMARY* In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 9.8% 10.6% 10.1% 4.7% 5.0% 5.1% 37.1% 39.2% 37.9% 37.9% 36.4% 7.1% 2.6% 757 4.0% 379 7,489 7,992 7,719 645 252 306 6,106 570 212 5,345 524 -4.0% 305 -312 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16
Slide 20: Financial Summary
FINANCIAL SUMMARY In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 19% 22% 24% 26% 27% 47% 47% 46% 42% 39% 50% 52% 52% 57% 57% 75% 73% 66% 63% 62% 53% 53% 54% 58% 61% 50% 48% 48% 43% 43% 6% 5% 10% 11% 12% FY16 FY17 FY18 FY19 FY20
Slide 21: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESS STRATEGY & OUTLOOK
Slide 22: Two-Pronged Business Model & Growth Strategy
TWO-PRONGED BUSINESS MODEL & GROWTH STRATEGY Retail Business Distribution Business Reach 785 ‘Khadim’s exclusive branded outlets 615 distributors supplying to MBOs across India Middle & upper middle income consumers in metros Lower & middle income consumers in Tier I – III cities, Target Segment who
Slide 23: Positive Industry Outlook
POSITIVE INDUSTRY OUTLOOK Domestic footwear retail to grow at a faster pace compared to the overall retail industry Favourable macro and Overall retail market in US $ Bn Domestic footwear market at retail price in US $ Bn demographic tailwinds 1200 Market Size 13.7 • Young demographics - 78% of the
Slide 24: Wide Product Range Across Various Categories & Price Points
WIDE PRODUCT RANGE ACROSS VARIOUS CATEGORIES & PRICE POINTS ‘Affordable Fashion’ brand catering to the entire family for all occasions - Men / Women / Kids - Menswear - Menswear - Menswear - Men & Women wear - Fashionable & casual - Formal shoes & sandals - Semi-formal & casual shoes / - Outdoor boo
Slide 25: Distinct Brand Positioning for Various Market Segments
DISTINCT BRAND POSITIONING FOR VARIOUS MARKET SEGMENTS Khadim’s brand presence and product range makes it capable to address ~85% of the total Indian footwear market potential Footwear Market Segmentation (MRP at retail stores in Rs) Distinct brand positioning to target customers % Share, Value Acro
Slide 26: Promoter, Board of Directors & Management Team
PROMOTER, BOARD OF DIRECTORS & MANAGEMENT TEAM Siddhartha Roy Burman, Chairman & Managing Director • Associated with the Company since its incorporation. He has 34 years of experience in the footwear industry • Responsible for the overall strategic decision making and provides leadership to all oper
Slide 27: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Namrata Chotrani, CEO Indrajit Chowdhury, CFO • She was associated with KPMG & Fairwinds Asset Managers Limited • 15+ yrs of experience in finance& accounts, taxation and strategic planning (since 2012) and has a total experience of over nine years in tax, private • Respo
Slide 28: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – Sep ‘20 Key Institutional Investors % Holding IDFC MUTUAL FUND 5.4% Others, 19.5 UTI MF 4.6% Promoter & SUNDARAM MUTUAL FUND 4.0% Promoter Group, 60.9 SUNDARAM ALTERNATIVE OPPORTUNITIES FUND 2.7% Institutions, 19.6 TRUSTLINE DEEP ALPHA 1.9% Source: BSE 27
Slide 29: Key Milestones
KEY MILESTONES 1981 1993 1999 2002 2005 • Acquired and took over the • Commenced retail • Commenced retail • Commenced • Accredited with business of M/s S.N. business through operations in South manufacturing ISO 9001:2000 Industries as a going concern COOs for footwear India through with operations
Slide 30: Contact
Namrata Chotrani CEO Contact No: +91 33 40090501 Email: namrata.chotrani@khadims.com Indrajit Chowdhury CFO Contact No : + 91 33 40090505 Email – indrajit.chowdhury@khadims.com Vikash Verma/ Nachiket Kale IR Consultant Contact: + 91 9664009029/ 9920940808 Email – khadim@dickensonworld.com 29