Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2014 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, May 2014
Slide 1: Vaibhav Global Limited Financial Results Presentation Q4 & FY2014
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q4 & FY2014 May 2014
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Business Highlights
Business Highlights Vertically-integrated electronic retailer of discount fashion and lifestyle accessories • Demonstrated profitable growth with direct-to-consumer business model on home shopping and e-commerce platforms with US and UK denominated revenue operations Owns ‘Liquidation Channel’ and ‘
Slide 4: Table of Contents
Table of Contents Q4 & FY14 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for FY14
Key Highlights for FY14 Home TV Network Reaches Over 100 Million Households • 95 million households on full time equivalent (FTE) basis • 25 million households in the UK • 53 million households in the US • 18 million households in Canada Retail Volumes Increase by 35% to 9.4 Million Units • 23% high
Slide 6: CMD's Message
CMD’s Message Commenting on Q4 & FY14 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “I am glad to announce a robust operating and financial performance for FY2014. During the year, revenues and profits grew 45% and 95% respectively. Our customer offerings expan
Slide 7: Financials – Q4 & FY14 Performance (Revenues)
Financials – Q4 & FY14 Performance (Revenues) Revenues (Rs. crore) 1,298 893 360 227 Q4 FY13 Q4 FY14 FY13 FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 225 162 667 119 107 242 66 52 178 32 17 Q4 FY13 Q4 FY14 FY13 FY14 Q4 FY13 Q4 FY14 FY13 FY14 Q4 FY13 Q4 FY14 FY13 FY14 7
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 25 23 23 24 6,420 5,239 • Robust y-o-y volume growth in FY14 – 1,321 1,644 23% in TV and 74% in Web. • Web sales contributed 32% of retail sales Q4 Q4 FY13 FY14 Q4 Q4 FY13 FY14 volume in FY14, up from 25% FY13 FY14 FY
Slide 9: Financials – Q4 & FY14 Performance (Margins)
Financials – Q4 & FY14 Performance (Margins) Rs. crore Gross Profit Gross margin 900 70% 800 61% 65% 60% 700 57% 58% 60% • Gross margins remain stable across 600 55% expanding revenues with growing 500 contribution from multiple product 50% 400 categories 45% 300 200 40% 100 35% 129 210 533 789 0 30
Slide 10: Financials – Q4 & FY14 Performance (Profits)
Financials – Q4 & FY14 Performance (Profits) Rs. crore PAT PAT margin 200 15.0% 11.7% 160 10.7% 12.0% • PAT expansion is in line with improvement 120 9.0% in core business profitability as the 10.2% 8.7% company operates on a lean asset profile 80 6.0% 40 3.0% 24 37 78 153 0 0.0% Q4 FY13 Q4 FY14 FY1
Slide 11: Table of Contents
Table of Contents Q4 & FY14 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 11
Slide 12: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 893 647 526 338 FY10 FY11 FY12 FY13 FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 225 687 162 117 483 395 73 85 91 89 263 46 54 21 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 12
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,420 62 5,239 • Robust volume growth registered on 41 3,268 30 home TV platform resulting from strong 2,039 23 24 customer engagement leading to 698 increased repeat purchases FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 70% 59% 60% 61% 800 55% 60% 700 50% 600 • Gross margins remain robust supported 500 36% 40% by a sourcing matrix that provides 400 30% flexibility to purchase from cost efficient 300 markets 20% 200 100 10% 122 289 384 5
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 200 12% 12% 15% 8% 8% 10% 150 5% 100 0% • Displayed expanding margins and 50 robust profitability in FY14 -5% 42 79 78 153 0 -47 -10% -50 -14% -15% -100 -20% FY10 FY11 FY12 FY13 FY14 Rs. per share EPS 48 25 24 13 FY10 FY11 FY12 FY13 FY
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 265 207 205 203 233 205 186 159* 58* 66 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due * During FY13 fixed assets were
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Free Cash Flow * Rs. crore Operating Cash flow 178 160 77 63 54 52 48 44 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 -27 -36 *Includes Foreign Currency Transaction Reserve Key usage areas : • Debt repaid: Rs. 47 crore • Bank loan - Rs. 29 cro
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 65% 60% 37% 36% 34% 23% 15% FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 -9% -41% 18
Slide 19: Table of Contents
Table of Contents Q4 & FY14 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Market Opportunity
Market Opportunity US market size (US$ Bn) UK market size (US$ Bn) Fashion Fashion Accessori Accessori es 17 es 6 Fine and Fine and Fashion Fashion Jewelry 67 Jewelry 8 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile JEWELLERY FASHION FINE & Product catalogue includes bracelets, bangles, earrings, studded jewelry etc. ACCESSORIES FASHION Product catalogue includes watches, bags, phone protective shells etc. PRODUCTS LIFESTYLE OTHER Product catalogue includes office and home décor, etc. Continuous
Slide 22: US Market Access on Liquidation TV Channel
US Market Access on Liquidation TV Channel https://www.liquidationchannel.com Access to 70 million (FTE) of the 116 million households in the US 22
Slide 23: UK Market Access on the Jewellery Channel
UK Market Access on the Jewellery Channel www.thejewellerychannel.tv Access to 25 out of the total 25 million households 23
Slide 24: Integrated Global Operations
Integrated Global Operations SOURCING MARKETS India Asia • Corporate HQ – Jaipur, • China is the hub for sourcing Rajasthan fashion and lifestyle accessories, • ISO 9001:2008 manufacturing accessed from multiple locations facilities • Sourcing capacity from China - • Production capacity – 5-6 millio
Slide 25: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target Competitive markets Pricing Mapping latest fashions Vendor Core evaluation competency process of vendor Rapid turnaround Sourcing from appropriate micro-markets in China/Asia Delivery/ Low Focus on best qualit
Slide 26: Aligned with Demand Patterns
Aligned with Demand Patterns Process Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Mothers’ Summer Product development strategies – by Spring Product Line Day Line category Process begins – September Process begins – December Process begins – Decembe
Slide 27: Management Additions
Management Additions Pulak Prasad Vikram Kaushik Director Director 40 years of experience with the companies like Unilever, Britannia, Colgate-Palmolive and Tata Sky Founder of private equity fund Nalanda Capital Pte Ltd Management consultant / advisor to groups like Voltas, Serves as a dire
Slide 28: Management Team
Management Team Sunil Agrawal Chairman and Managing Director Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition into a leading brand for fashion jewelry and lifestyle accessories Travels extensively across the world, overseeing operations, sourcin
Slide 29: Management Team
Management Team Hemant Sultania Gaurav Vishal Soni Group Chief Financial Officer Chief Operating Officer, VGL India 17 years of rich experience in strategic financial planning, budgeting, project evaluation, commercial and legal affairs, taxation, fund management, finalization of 17 years of ext
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Hemant Sultania Vaibhav Global Ltd. Tel: +91-141-2770648 Email: Hemant@vglgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91 22 6645 1207 / 1220 Email: shiv@cdr-india.com karl@cdr-india.com 30
Slide 31: Thank You
Thank You 31