Khadim India Limited · NSE:KHADIM
Khadim India — Q1 FY24 Earnings Presentation
29 slides from Khadim India's earnings presentation, Aug 18, 2023
Slide 1: Exchange Filing Cover Letter: Investor Presentation Q1 FY24
August 18, 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 - KHADI
Slide 2: Khadim India Limited Quarter 1 FY 2023-24
YK KHADIM QUARTER1 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: Two-pronged Strategy and Asset Light Model
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 Brand, Extensive Reach and Design Capabilities
4. Extensive Reach & Presence • Retail presence across 27 states & 4 union territory 3. Leading Footwear Brand in India • 848 ‘Khadim’s’ branded retail stores (June-23) 5. Strong Design Capabilities • 2nd largest footwear retailer in India • Wide network of 732 distributors selling • Understanding l
Slide 10: Presence in States and Union Territories, Brand Network
Presence in 27 States & 4 Union Territory Retail Stores Distributors Brand Network Retail Stores – Tier wise Retail Stores 1 Retail Stores 848 Distributors Metros 20% 3 - COCO 217 5 1 1 Tier I 48% 1 13 6 1 15% 1 2 - Franchises 631 Tier II 9 18 60 48 Tier III 18% 55 64 1 2 Distributors 732 97 52 4 11
Slide 11: Marketing Initiative & Social Media
ZK KHADIM MARKETING INITIATIVE & SOCIAL MEDIA KHADIM INDIA LIMITED
Slide 12: Canter Van
CANTER VAN
Slide 13: Bus Branding
BUS BRANDING
Slide 14: Toy Train Branding
TOY TRAIN BRANDING
Slide 15: PR Integration
MARKETING INITIATIVE 154) ee ry [ickHADIM eee eat Semen areas | waneecefid ment { 4 i Feat Serene aa a Fo eR ENB AE vey af aitecs i BOCeR cae ees a AE, mE, ARES A HIE I CR CE, RY, AO! CR GAO om BOA wei ee ete SEAS HLS we ON NE fe Sars Cl stem a Rat THO ST AR Khadim India unveils Rongali Bihu range ‘
Slide 16: Q1 FY24 Key Highlights
• In Q1 FY24, Revenue stood at Rs 1,580 mn, down by 5% YoY. • The growth in our retail business has maintained momentum during the quarter. • Gross margin for the quarter stood at 45%, up by 360 bps YoY, as higher contribution from retail leads to favourable product mix. • Our focus on cost optimiza
Slide 17: YoY Analysis – Revenue Breakup
YoY ANALYSIS – REVENUE* BREAKUP IND AS Sales Net Sales 1,072.6 1,119.0 998.0 1,035.8 529.1 521.5 595.2 574.6 59.0 60.3 71.9 73.4 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Retail Distribution Others Retail Distribution Others Segment Share % Q1 FY23 Q1 FY24 Retail 63% 62% Distribution 33% 34%
Slide 18: Consolidated Profit & Loss Statement
Particulars (In Rs Mn) Q1 FY24 Q1 FY23 YoY % Q4 FY23 QoQ % FY23 Revenue from Operations 1,579.8 1,660.7 12.9% 1,592.0 6,602.6 CONSOLIDATED PROFIT & LOSS STATEMENT -0.77% Cost of Materials consumed 408.6 533.2 417.0 1,626.6 Purchase of stock-in-trade -299.7 -333.1 420.0 2,457.3 Changes in inventories
Slide 19: Performance Track Record
%KKHADIM PERFORMANCE TRACK RECORD
Slide 20: Revenue, EBITDA and PAT Trends
Revenue & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 44.9% 11.0% 11.6% 41.9% 2.6% 36.4% 37.2% 8.1% 1.1% 1.0% 28.8% 4.0% 7,719 725 6,602 0.6% 175 6,262 5,911 -4.0% 478 64 16 -5.3% 305 183 -329 1,580 35 -312 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24
Slide 21: Revenues by Segment and Gross Margins
(Rs Mn) Revenues – Segment wise Retail revenues – COCO vs Franchise Retail Revenues – Khadim’s vs Sub-brands 27% 32% 34% 34% 40% 39% 41% 45% 44% 44% 57% 60% 57% 57% 54% 62% 50% 58% 63% 62% 61% 59% 55% 56% 56% 43% 40% 43% 43% 46% 18% 10% 2% 3% 4% FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY2
Slide 22: Slide 22
Slide 23: Two-Pronged Strategy
TWO-PRONGED STRATEGY RETAIL BUSINESS DISTRIBUTION BUSINESS 848 ‘Khadim’s exclusive branded outlets as on 732 distributors supplying to MBOs across 30 June 2023 India as on 30 June 2023 Reach Middle & upper middle-income consumers in Lower- & middle-income consumers in Tier I – metros (incl. mini met
Slide 24: Retail and Distribution Business Growth Strategy
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 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 through its retail and distribution business Distinct brand positioning to target customers Footwear Market Segmentation Acr
Slide 26: Retail: Affordable Fashion Brand
‘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 27: Board of Directors
Siddhartha Roy Burman Chairman & Managing Rittick Roy Burman Ritoban Roy Burman Whole-time Director Non-Executive, Director Director • Bachelor’s degree in commerce from University • Associated with the Company since its of Calcutta • He is a graduate in Mass Communication from St. incorporation. He
Slide 28: 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 29: 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