Kddl Limited · NSE:KDDL
Kddl — Q2 FY22 Earnings Presentation
38 slides from Kddl's earnings presentation, Nov 13, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation Q2 FY22
KDDL Limited Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123 Ref : KDDL/CS/2021-22/73 Date : 13th November, 2021 National Stock Exchange of India Limited BSE Limited, Exchange P
Slide 2: KDDL Limited & ETHOS Limited Investor Presentation
KDDL Limited & ETHOS Limited Investor Presentation November 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Ltd and Ethos Limited, a material subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 4: Q2FY22 Performance Overview
Q2FY22 Performance Overview
Slide 5: Q2FY22 Performance
Q2FY22 Performance Standalone Performance (Rs. Crs.) Revenue PAT +53% +595% 53.0 4.0 34.6 0.6 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT +32% -20% 135.5 3.3 102.5 2.6 Q2FY21 Q2FY22 Q2FY21 Q2FY22 4 *Ethos Revenue is without IND AS 116 impact for better compar
Slide 6: H1FY22 Performance
H1FY22 Performance Standalone Performance (Rs. Crs.) Revenue PAT Turned around from loss to profit +79% (By Rs. 11.1 Crs.) 99.2 6.8 55.6 -4.3 H1FY21 H1FY22 H1FY21 H1FY22 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT Turned around from loss to profit +73% (by Rs. 11 Crs.) 225.5 3.5 130.6 -
Slide 7: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q2FY22 Q2FY21 YoY% H1FY22 H1FY21 YoY% Revenue 53.0 34.6 53% 99.2 55.6 79% Cost of Goods Sold 14.5 9.3 26.6 15.1 Gross Profit 38.4 25.3 52% 72.6 40.4 80% Employee Expenses 15.9 11.3 31.3 22.0 Other Expenses 12.9 8.7 24.2 14.4 EBITDA 9.7 5.3 84% 17.1 4
Slide 8: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q2FY22 Q2FY21 YoY% H1FY22 H1FY21 YoY% Revenue 193.3 139.4 39% 332.3 192.4 73% Cost of Goods Sold 114.0 85.4 190.0 113.6 Gross Profit 79.3 54.0 47% 142.2 78.8 80% Employee Expenses 29.0 18.7 55.6 38.3 Other Expenses 27.1 17.9 48.6 29.5 EBITDA 23.2 1
Slide 9: Consolidated Profit & Loss (IND AS 116 impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) Q2FY22 Q2FY21 Q2FY22 Q2FY21 Revenue 193.3 139.4 193.3 139.4 Cost of Goods Sold 114.0 85.4 114.0 85.4 Gross Profit 79.3 54.0 79.3 54.0 Employee Expenses 29.0 18.7 29.0 18.7 Other Expenses 27.1 17.9
Slide 10: Consolidated Profit & Loss (IND AS 116 impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) H1FY22 H1FY21 H1FY22 H1FY21 Revenue 332.3 192.4 332.3 192.4 Cost of Goods Sold 190.0 113.6 190.0 113.6 Gross Profit 142.2 78.8 142.2 78.8 Employee Expenses 55.6 38.3 55.6 38.3 Other Expenses 48.6 2
Slide 11: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 87.6 Crores and equivalent to the lease liability of Rs. 94.3 Crores as on 30th Sep 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will h
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Sep-21 Mar-21 Liabilities (Rs. Crs.) Sep-21 Mar-21 Non-current assets 222.2 216.2 Equity 202.1 173.1 Property, plant and equipment 89.8 90.8 Equity share capital 12.8 11.7 Capital work-in-progress 1.4 1.1 Other equity 189.3 161.3 Right-of-use asset 9.6 10.7
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-21 Mar-21 Liabilities (Rs. Crs.) Sep-21 Mar-21 Non-current assets 277.8 277.8 Equity 253.4 227.3 Property, plant and equipment 153.2 153.7 Equity share capital 12.8 11.7 Capital work-in-progress 4.5 4.9 Other equity 201.0 174.8 Right-of-use asset 87.6
Slide 14: Manufacturing Business Overview
Manufacturing Business Overview 13
Slide 15: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Dials Watch Hands Value Proposition Commercial operations began in 1983 Commercial operations began in 1996 Deep Understanding of the Leading Global supplier of Global Watch Industry Watch Dial serving many Only supplier in India and well
Slide 16: Precision Engineering Business
Precision Engineering Business Eigen offers a full package of services, ranging from design and Value Proposition development to full scale production, providing customers with optimized supply chain solutions We address various segments such as Electrical, Electronics, Automobile, Capabilities Tele
Slide 17: Stable Manufacturing Performance
Stable Manufacturing Performance* Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 181 32 176 29 27 146 147 24 125 22 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Since the lockdown was in force for a significant part of FY21, the results for FY21 were adversely affected by the COVID-19 pandemic and may no
Slide 18: Ethos Q2FY22 Snapshot
Ethos Q2FY22 Snapshot THE 50 4 FINEST WATCHES Y
Slide 19: Q2FY22 Performance
Q2FY22 Performance Q2FY22 Performance (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) +31% +32% 157.4 135.5 120.1 104.1 102.5 3.3 90.0 2.6 0.8 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 • Ethos recorded strong growth in billings & revenue on the back of stro
Slide 20: H1FY22 Performance
H1FY22 Performance H1FY22 Performance (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) Turned around from loss to profit (by Rs. 11 Crs.) +72% +73% 261.5 225.5 3.5 152.3 130.6 -7.5 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 #Revenue is without IND AS 116 impact 19
Slide 21: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crores)* Q2FY22 Q2FY21 YoY % H1FY22 H1FY21 YoY % Revenue 136.8 107.6 27% 231.0 140.5 64% Cost of Goods Sold 98.7 76.1 162.4 97.2 Gross Profit 38.2 31.5 21% 68.6 43.3 59% Margin (%) 27.9% 29.3% 29.7% 30.8% Employee Expenses 10.8 5.8 19.3 12.9 Other Expens
Slide 22: Consolidated Profit & Loss (IND AS 116 impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without INDAS 116 Profit & Loss (Rs. Crores)* Q2FY22 Q2FY21 Q2FY22 Q2FY21 Revenue 136.8 107.6 135.5 102.5 Cost of Goods Sold 98.7 76.1 98.7 76.1 Gross Profit 38.2 31.5 36.8 26.5 Gross Profit Margin (%) 27.9% 29.3% 27.2% 25.8% Employee Expens
Slide 23: Consolidated Profit & Loss (IND AS 116 impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without INDAS 116 Profit & Loss (Rs. Crores)* H1FY22 H1FY21 H1FY22 H1FY21 Revenue 231.0 140.5 225.5 130.6 Cost of Goods Sold 162.4 97.2 162.4 97.2 Gross Profit 68.6 43.3 63.1 33.4 Gross Profit Margin (%) 29.7% 30.8% 28.0% 25.6% Employee Expe
Slide 24: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 78.2 Crores and lease liability of Rs. 89.5 Crores, as on 30th September, 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will have an imp
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Sep-21 Mar-21 Equity & Liabilities (Rs. Crores)* Sep-21 Mar-21 Non-current assets 128.7 128.8 Shareholder’s Fund 161.6 156.9 Fixed Assets 34.8 35.1 Share Capital 18.3 18.2 Right of Use 78.2 81.2 Other Equity 143.2 138.7 Financial Assets 11.6 9.0 Other
Slide 26: Strategy at ETHOS
Strategy at ETHOS Stores Optimization Uniquely Positioned to Grow Post pandemic, Swiss brands may focus more In depth assessment of each store's on developed markets and less on developing performance across India. Closure of lower like India. Ethos is uniquely positioned to productivity stores and
Slide 27: Complementary verticals strengthens offerings
Complementary verticals strengthens offerings Repair & Service Pre-Owned Watches Pre-Owned Watches has the potential to Repair and services over 60 of the expand the volume and customer base Highlight 1 Luxury watch Brands World’s top Highlight Ethos has1the expertise to check the authenticity
Slide 28: Operational Highlights
Operational Highlights 27
Slide 29: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.)* Revenue 211.7 225.5 11.6% 12.2% 208.8 10.5% 9.9% 9.5% 153.9 130.6 H1FY18 H1FY19 H1FY20 H1FY21 H1FY22 H1FY18 H1FY19 H1FY20 H1FY21 H1FY22 EBITDA (Rs. Crs.)* EBITDA Margins* 11.8 5.0% 5.2% 10.6 8.1 3.9% 0.4% 0.5 -1.4 -
Slide 30: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing 96.6 46.2% 74.6 36.9% 70.8 70.4 32.1% 57.5 30.4% 29.4% H1FY18 H1FY19 H1FY20 H1FY21 H1FY22 H1FY18 H1FY19 H1FY20 H1FY21 H1FY22 Visitors (‘000) 9,853 7,448 7,817 6,846 6,010 H1FY18 H1FY19 H1FY20 H1FY21 H1FY22 Eth
Slide 31: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer
Slide 32: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 47 stores as on Sep,2021 Ludhiana Chandigarh New Delhi Gurugram Noida Presence across Metros, Tier I, Tier II cities Jaipur Lucknow Guwahati Ahmedabad Kolkata Nagpur 1 Duty Free Retail Outlet at Interna
Slide 33: New Marquee store in Mumbai
New Marquee store in Mumbai In October 2021, opened a ~2000 sq feet boutique… …at Jio World Drive - Mumbai 32
Slide 34: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive Brands Stores Digital Strategy Right Mix • Open Flagship • Leverage on our stores which can • Targeting to have a Digital platform to enjoy higher right mix of Brands drive sales and • Higher share of footfalls leading to at all price points cu
Slide 35: Ethos is India's Preferred Destination for Luxury Watches
Ethos is India’s Preferred Destination for Luxury Watches… Knowledge One-stop shop Mind Share Ethos has well trained Ethos’ access to Swiss Watch Ethos to be synonymous Knowledgeable staff to ensure Brands will make it a ‘1 Stop with Luxury watches highest customer satisfaction Shop’ for Luxury Watc
Slide 36: With an Asset Light Model
With an Asset Light Model… Maximize Minimize Investment Optimize Costs Reach Focus on Online Expand catchment Reduce Front-End Cost Presence & area of offline store, like Manpower and Rationalize Store leading to higher Rental expenses Presence revenue Operating Leverage Playing Out Improve Return O
Slide 37: and Continued Investments in Advertising
and Continued Investments in Advertising… Print Ads in leading news media… Hindustan Times … with ETHOS co-branding 36
Slide 38: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC008123 CIN : U74140MH2010PTC204285 Mr. Ritesh Agrawal Mr. Shogun Jain/ Mr. Shrenik Shah ritesh.agrawal@ethoswatches.com +91 77383 77756 / +91 9664 764465 shogun.jain@sgapl.net / Shrenik