Khadim India Limited · NSE:KHADIM
Khadim India — Q2 FY24 Earnings Presentation
31 slides from Khadim India's earnings presentation, Nov 17, 2023
Slide 1: Regulation 30 cover letter to stock exchanges
November 17, 2023 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 - KHA
Slide 2: Khadim India Limited Quarter 2 FY 2023-24
YK KHADIM QUARTER2 FY 2023-24 KHADIM INDIA LIMITED
Slide 3: Forward looking statements 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 condition, b
Slide 4: K KHADIM
K KHADIM ~ \ \ Sh =
Slide 5: Company Overview
ZK KHADIM COMPANY OVERVIEW
Slide 6: Company milestones timeline
• Commenced • Commenced • Investment by • Commenced e- • Listed on NSE & BSE • Launched the new • Launched the Shoe retail business manufacturing Fairwinds commerce retailing with an IPO of Rs logo of the brand Protection Programme through COOs operations for Trustees Services operations through 5,4
Slide 7: Company Overview
COMPANY OVERVIEW _ OISTRIBUTION
Slide 8: Company Overview
1. Two-pronged Market Strategy • Two distinct business models – Retail & Distribution. • Each segment has its own customer base, product range and sales channels. COMPANY OVERVIEW 2. Asset Light Model for Growth RETAIL DISTRIBUTION • Retail business: 74% of retail presence through franchise route. O
Slide 9: Leading footwear brand, extensive reach and presence
4. Extensive Reach & Presence • Retail presence across 25 states & 4 union territory 3. Leading Footwear Brand in India • 861 ‘Khadim’s’ branded retail stores • (Sept-23) 5. Strong Design Capabilities • 2nd largest footwear retailer in India • Wide network of 741 distributors selling • Understanding
Slide 10: Presence in 25 States & 4 Union Territory; Brand Network
Presence in 25 States & 4 Union Territory Retail Stores Distributors Brand Network Retail Stores – Tier wise Retail Stores 1 Retail Stores 861 Distributors Metros 20% 3 - COCO 225 2 1 1 Tier I 49% 5 2 14 6 1 15% 1 1 2 - Franchises 636 Tier II 9 20 63 50 Tier III 17% 56 73 1 2 Distributors 741 98 64
Slide 11: Marketing Initiative & Social Media
ZK KHADIM MARKETING INITIATIVE & SOCIAL MEDIA KHADIM INDIA LIMITED
Slide 12: Social Media & Marketing Initiative
SOCIAL MEDIA &
Slide 13: Social Media & Marketing Initiative
SOCIAL MEDIA &
Slide 14: Social Media & Marketing Initiative
SOCIAL MEDIA & MARKETING INITIATIVE Reasraivntea stead | | jagrped A eqen onten otenat wr gat: often asi aren vee eas erst at een eatear sen a ten attest Bere Frere a arenes HSH are Ie anf She HT ITT UAT HT SEAICA CH, HA A HSA Sasa TAA ATT fr arnt. saa a ara ae aa a a TE, feet: ames aifedt yanfy $8
Slide 15: Social Media & Marketing Initiative
SOCIAL MEDIA &
Slide 16: Q2 FY24 results highlights
• In Q2 FY24, Revenue stood at Rs 1,571 mn, down by 16% YoY. Revenues for H1 FY24 stood at Rs. 3,151 mn, down by 11% YoY. • Gross margin for the quarter stood at 44.7%, up by 400 bps YoY and for H1 FY24, Gross Margins stood at 44.8%, up by 380 bps YoY. Increase in gross margins due to higher contrib
Slide 17: Revenue Break Up
REVENUE BREAK UP GROSS SALES NET SALES 1396.9 651.0 1246.1 729.3 (19%) 1,137.0 440.5 (19%) 1,015.2 (32%) 493.4 (32%) 2,762.1 1,236.0 1,161.1 2355.0 2,196.9 1,446.7 1,316.7 2,491.6 (6%) (9%) (10%) (6%) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Retail Distribution Retail Distribu
Slide 18: Consolidated Profit & Loss Statement
Particulars (In Rs Mn) Q2 FY24 Q2 FY23 YoY % Q1 FY24 QoQ % H1 FY24 H1 FY23 YoY % CONSOLIDATED PROFIT & LOSS STATEMENT Revenue from Operations 1,570.9 1,860.3 -15.6% 1,579.8 -0.6% 3,150.7 3,521.1 -10.5% Cost of Materials consumed 274.9 368.7 408.6 683.5 901.9 Purchase of stock-in-trade 763.0 843.9 76
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs. Mn) Sept-23 Mar-23 Particulars (Rs. Mn) Sept-23 Mar-23 ASSETS EQUITY AND LIABILITIES Non ‐ Current Assets Equity Property, plant and equipment 803.6 830.1 (a) Equity share capital 179.7 179.7 (b) Other equity 2107.9 2072.5 Capital work‐in‐progress 2.7 4.4
Slide 20: Performance Track Record
%KKHADIM PERFORMANCE TRACK RECORD
Slide 21: Revenue, EBITDA and PAT trends
Revenue & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 44.8% 11.0% 11.4% 41.9% 2.6% 36.4% 37.2% 8.1% 1.1% 1.1% 28.8% 4.0% 7,719 725 6,602 0.6% 175 6,262 5,911 -4.0% 478 64 34 -5.3% 359 3,151 305 -329 35 -312 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24
Slide 22: Revenues by segment and gross margins
Revenues – Segment wise Retail revenues – COCO vs Franchise Retail Revenues – Khadim’s vs Sub-brands 27% 32% 34% 30% 40% 39% 41% 45% 44% 47% 57% 60% 57% 57% 57% 62% 50% 63% 66% 58% 61% 59% 55% 56% 53% 43% 40% 43% 43% 43% 18% 10% 2% 3% 4% FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 FY20 F
Slide 23: Slide 23
Slide 24: Two-Pronged Strategy
TWO-PRONGED STRATEGY RETAIL BUSINESS DISTRIBUTION BUSINESS 861 ‘Khadim’s exclusive branded outlets as on 741 distributors supplying to MBOs across 30th September 2023 India as on 30th September 2023 Reach Middle & upper middle-income consumers in Lower- & middle-income consumers in Tier I – metros (
Slide 25: Growth strategy: Retail and Distribution business
Expand Store Network pan-India with focus on Premiumisation, Asset Light Model & optimum capacity utilisation RETAIL BUSINESS DISTRIBUTION BUSINESS Focus on penetration in existing markets in Expanding retail footprint in markets Eastern and Southern India and capitalise on across South India, West
Slide 26: 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 through its retail and distribution business Distinct brand positioning to target customers Footwear Market Segmentation Acr
Slide 27: Retail
‘Affordable Fashion’ brand catering to the entire family for all occasions RETAIL MEN / WOMEN / KIDS Menswear Semi-formal Fashionable & casual Menswear Formal shoes WIDE PRODUCT RANGE footwear for value & sandals using casual shoes / sandals premium quality leather Men & Women wear Sports / activity
Slide 28: Distribution
DISTRIBUTION “In the Distribution Business too, like retail, we wish to be a brand for the entire family for all occasions”
Slide 29: Board of Directors
Siddhartha Roy Burman Chairman & Managing Rittick Roy Burman Ritoban Roy Burman Whole-time Director Non-Executive Director Director • Associated with the Company since its • Bachelor’s degree in commerce from University of • He is a graduate in Mass Communication from St. incorporation. He has 40 ye
Slide 30: Senior management team
Indrajit Chaudhuri CFO • 22+ yrs of experience in finance& accounts, taxation and strategic planning • Responsible for all commercial & strategic planning and has assisted in providing the corporate structure of the company as it stands today • Earlier associated with P. G. Shah and Co Tapas Ghosh A
Slide 31: Contact details
ZX KHADIM INDRAJIT CHAUDHURI - CFO Contact No: +91 33 40090505 Email - indrajit.chowdhury@khadims.com NACHIKET KALE / RAJESH AGARWAL +91 9920940808 / +91 99674 91495 nachiket.kale@linkintime.co.in rajesh.agrawal@linkintime.co.in WWwW.KHADIMS.COM