Go Fashion (india) Limited · NSE:GOCOLORS
Go Fashion (india) — Q2 FY2023 Earnings Presentation
38 slides from Go Fashion (india)'s earnings presentation, Nov 4, 2022
Slide 1: Regulation 30 cover letter to stock exchanges
November 04, 2022 BSE Limited National Stock Exchange of India Ltd. Scrip Code: 543401 Trading Symbol: GOCOLORS Dear Sir / Madam, Subject: Investor Presentation for Q2 FY 2023 – Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 With reference to the above capti
Slide 2: Investor Presentation November 2022
Go Fashion (India) Limited Investor Presentation November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Go Fashion (India) Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or
Slide 4: Q2 & H1 FY23 Highlights
GOCOLORS! Q2 & H1 FY23 Highlights
Slide 5: Strong Q2 FY23 Financials
Strong Q2 FY23 Financials Revenue from Operations Gross Profit EBITDA Profit Before Tax Profit After Tax Rs. 165.8 crores Rs. 98.7 crores Rs. 49.3 crores Rs. 24.8 crores Rs. 19.3 crores 48% 50% 40% 37% 4% Sales Mix Gross Profit Margins EBITDA Margins No. of EBO stores added 100 bps 3.9% during the q
Slide 6: Strong H1 FY23 Financials
Strong H1 FY23 Financials Revenue from Operations Gross Profit EBITDA Profit Before Tax Profit After Tax Rs. 330.9 crores Rs. 198.9 crores Rs. 102.4 crores Rs. 56.7 crores Rs. 43.7 crores 131% 139% 250% H1FY22: -Rs. 0.3 Crs. H1FY22: -Rs. 0.4 Crs. Sales Mix Gross Profit Margins EBITDA Margins No. of
Slide 7: Strong Balance Sheet
Strong Balance Sheet Significant Improvement in Working Capital Requirements Inventory Debtors Creditors 200 190 137 In Days 144 151 119 70 55 39 13 16 21 Sep-21 Mar-22# Sep-22 RoCE* RoE* Cash & Cash (Annualized Basis) (Annualized Basis) Equivalents*^ 20.0% 18.1% Rs. 131.4 Crs. # March 2022 are audi
Slide 8: Brand Awareness Campaigns during H1 FY23
Brand Awareness Campaigns during H1 FY23 Adventure Film Fitness Film Office Film From Moving homes to Exploring - From Home to Gym - From Office to Meet Ups - Good To Go Good To Go Good To Go https://youtu.be/0gz8q4Yzwzw https://www.youtube.com/watch?v=og7v36-fRaU https://www.youtube.com/watch?v=U0A
Slide 9: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs. Crore)* Q2 FY23 Q2 FY22 Y-o-Y H1 FY23 H1 FY22 Y-o-Y Total Revenue 165.8 112.1 48% 330.9 143.1 131% COGS 67.0 46.4 132.1 60.0 Gross Profit 98.7 65.7 50% 198.9 83.1 139% Gross Margin 59.6% 58.6% 60.1% 58.1% Employee Cost 25.1 18.3 48.8 34.1 Other Expenses 24
Slide 10: Balance Sheet
Balance Sheet EQUITY AND LIABILITIES (in Rs. Crore) 30-Sep-22 31-Mar-22 ASSETS (in Rs. Crore) 30-Sep-22 31-Mar-22 Equity Non Current Assets Property, plant and equipment 73.4 64.1 Share Capital 54.0 54.0 Capital work-in-progress 2.9 8.7 Other Equity 428.2 384.4 Intangible assets 0.5 0.4 Total Equity
Slide 11: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crore) H1 FY23 H1 FY22 Net Profit Before Tax 56.7 -0.3 Adjustments for: Non - Cash Items / Other Investment or Financial Items 46.5 32.8 Operating profit before working capital changes 103.2 32.5 Changes in working capital -51.7 -40.8 Cash generated from
Slide 12: CEO's Message
CEO’s Message Commenting on the Result, Mr. Gautam Saraogi, CEO, Go Fashion (India) Limited said, “Despite a challenging environment, the Company has performed well in Q2 & H1 FY23. Our Revenues for Q2 FY23 grew by 48% YoY to Rs. 166 crores, highest ever quarterly revenues at Go Fashion. EBITDA and
Slide 13: Company Overview
GO COLORS! Company Overview
Slide 14: We are a Direct to Consumer Brand
About Us We are a one stop destination for ladies' bottom wear, a daily essential wear category with no seasonality Among the largest Women Bottom Wear Extensive sourcing and manufacturing Offers Products in (WBW) brands in India with ~8% network of 81 suppliers and 49 job- market share in branded W
Slide 15: Well Diversified Product Portfolio
Well Diversified Product Portfolio Ethnic Wear Western Wear Fusion Wear Athleisure Churidar Salwar Leggings Ponte Pants Jeggings Leggings Patiala Silk-Pants Cropped Jegging Track Pants Palazzos Track Pants Kurti-Pants Dhoti Jeans Culottes Pants Joggers Cargo Pants Treggings Harem-Pants From ₹ 599 to
Slide 16: Well Diversified Product Portfolio
Well Diversified Product Portfolio Denims Lounge Wear Go Plus Girls Wear Jeggings Pants Lounge Pants Churidars Leggings Pants Joggers Denim Culottes Lounge Knit Pants Leggings Jeggings Shorts Jeans Capris Lounge Capris Jeggings Palazzos Harem- Pants Denim Palazzos Lounge Shorts Pants Palazzos From ₹
Slide 17: Standardized Store Designs and Layouts
Standardized Store Designs and Layouts to Make Brand “Go Colors” Readily Identifiable EBO Stores + Airport Stores + LFS Stores 16 Go Fashion (India) Limited
Slide 18: Differentiators
GO COLORS! Differentiators
Slide 19: Our Key Strengths
Our Key Strengths Multi-Channel, Pan-India Distribution Network with a Focus on EBOs, Enhancing Brand Visibility Among the Largest Women’s Bottom-Wear Brand in India with Well-Diversified & Differentiated Product Portfolio and First Mover Advantage Extensive Procurement Base with Highly Efficient an
Slide 20: Among the Largest Women's Bottom-Wear Brands
Among the Largest Women’s Bottom-Wear Brand with a Well-Diversified Product Portfolio Covering the entire spectrum of women’s requirements across age- % Branded Women’s Bottom Wear Market groups and body-types (FY20) Brand SKUs Ethnic Western Athleisure Fusion Denim 8% 728 P P P P P 9% Player A 800
Slide 21: Extensive Distribution Network across India
Direct to Consumer Brand with an Extensive Distribution Network across India EBO 346 48 LFS Diversified presence across geographies 119 EBO Stores 245 761 South 569 As on Sep-22 West 368 #EBO #LFS 157 North 487 Malls & Airports (184) 119 368 East High Streets (385) 179 338 358 210 249 116 85 82 115
Slide 22: Continuous Increase of EBO presence PAN India
Continuous Increase of EBO presence PAN India Total Cities 218 333 448 449 503 569 EBOs 50 75 97 101 121 133 Present# 66 569 133 54 66 12 1 0 115 66 20 42 -12* -41* 4 133 115 22 -18 130 25 218 50 -15 Focus on establishing additional EBOs across Tier 2 Plan to expand by 120 – 130 EBO’s and Tier 3 cit
Slide 23: Enhancing Brand Visibility and Recall Value
Enhancing Brand Visibility and Recall Value of ‘Go Colors’ Brand Prudent use of resources to undertake brand- building initiatives and gain visibility 4.59% Rs. 21.77 of Revenue 2.54% on every rupee of Advertisement Spent 1.86% 1.82% 1.26% 2019 2020 2021 FY22 H1FY23 Store at high footfall location w
Slide 24: Strong Unit Economics Leading to an Efficient Operating Model
Strong Unit Economics Leading to an Efficient Operating Model Efficient Space Utilization offers one of the highest sales per Healthy Same Store Sales Growth (in %) square foot in the industry 31.0% 20.0% Average Store Size (Sq. ft.) Average Selling Price* Present across 11.4% 400 - 500 Rs. 709 133
Slide 25: Extensive Procurement Base and Technology-Driven Supply Chain
Extensive Procurement Base with Highly Efficient and Technology-Driven Supply Chain Management Outsourced Manufacturing Sourcing Team ➢ Sourcing team closely monitors suppliers and provides strict quality ➢ Manage an extensive sourcing network to support product assurance analysis development teams
Slide 26: In-House Expertise in Developing and Designing Products
In-House Expertise in Developing and Designing Products Forecasting • Concept development and trend forecasting to develop new styles and products • Participate in fairs or exhibitions in India or abroad to better understand trends • Address evolving market trends and customers’ preferences In-House
Slide 27: Management Team
Management Team Mr. Prakash Kumar Saraogi Mr. Gautam Saraogi Mr. R Mohan Managing Director Executive Director and CEO Chief Financial Officer • Promotor of Go Fashion (India) Limited • Chartered accountant by profession and has been • associated with our Company since 2019 Promotor of Go Fashion (In
Slide 28: Company Strategies
Company Strategies 1 Continue to Expand Retail Network with a Focus on EBOs 2 Grow Sales Through Online Channel Leverage Technology to Bring Cost Efficiency and 3 Enhance Customer Experience 4 Leverage Leadership Position in Women’s Bottom-Wear 27 Go Fashion (India) Limited
Slide 29: Continue to Expand Retail Network with a Focus on EBOs
1. Continue to Expand Retail Network with a Focus on EBOs Growth Strategies Follow the COCO Model Focus on establishing Grow network in existing Add additional stores in Selectively expand to ensure better additional EBOs across geographies i.e., deepen the north and east presence across LFS operati
Slide 30: Growth through Online Channel
2. Growth through Online Channel E-retail in India has witnessed rapid growth and is expected to reach ₹ 7.8 trillion by FY25 growing at 23% CAGR (1) COVID-19 induced a Growth in Higher discounts Increased internet Increased smart Convenient payment faster pace of through online India E-tailing pene
Slide 31: Leverage Leadership Position
3. Leverage Leadership Position WBW market expected to grow at 12.4% CAGR reaching Branded women’s bottom-wear market expected to see continued high Rs. 243 Bn by FY25 growth in future (INR Cr) (INR Cr) 9.6% 24,315 +12.2% 8.3% 11,379 13,547 7.6% +12.4% 24,315 7,723 4,471 +11.9% 1,521 13,081 6,202 9,
Slide 32: Leverage Technology
4. Leverage Technology Leverage Technology to Bring Cost Efficiency and Enhance Customer Experience Expand and upgrade warehouse to optimize inventory and supply management Strategically expand warehouse operations and Invest in IT infrastructure to improve implement new technologies to improve cust
Slide 33: Awards & Accolades
Awards & Accolades 2016 2019 2019 2022 ‘Images Retail Award’ Transforming India Retail Award ‘Sustaining Enterprise of the Year’ Most admired retailer of the year – Concept at the TIECON, Chennai Stores 32 Go Fashion (India) Limited
Slide 34: Financials
GO COLORS! Financials
Slide 35: Historical Profit & Loss Account Statement
Historical Profit & Loss Account Statement Particulars (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 Total Revenue 401.3 250.7 392.0 285.2 Cost of Materials Consumed 135.5 92.2 130.0 94.5 Subcontracting Charges 24.8 11.8 27.6 20.5 Gross Profit 241.1 146.7 234.5 170.3 Gross Margin 60.1% 58.5
Slide 36: Historical Balance Sheet Statement
Historical Balance Sheet Statement EQUITY AND LIABILITIES (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 ASSETS (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 Equity Non Current Assets Property, plant and equipment 64.1 58.4 60.3 47.3 Share Capital 54.0 79.0 79.0 79.0 Capital work-in
Slide 37: Demonstrated Track Record of Strong Financial Performance
Demonstrated Track Record of Strong Financial Performance Robust, organic revenue growth… …with exceptional Gross margins … and tight operational control leading to (INR Crs.) high EBITDA margin (INR Crs.) (INR Crs.) 59.7% 59.8% 58.5% 60.1% 28.0% 32.3% 18.5% 29.7% +37% 392 401 285 +38% +58% 251 234
Slide 38: Thank You
THANK YOU Company: Go Fashion (India) Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L17291TN2010PLC077303 CIN: U74140MH2010PTC204285 Mr. R Mohan – CFO Mr. Deven Dhruva mohan@gocolors.com deven.dhruva@sgapl.net Tel: 044 4211 1777 Tel: +91 98333 73300