Aditya Vision Ltd. · NSE:AVL
Aditya Vision — Q4 FY2024 Earnings Presentation
41 slides from Aditya Vision's earnings presentation, May 24, 2024
Slide 1: Submission of Investor Presentation to BSE
Date- May 24, 2024 BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400 001 SCRIP Code: 540205 Sub:- Submission of Investor Presentation Dear Sir(s) With reference to the above captioned subject, please find attached herewith Investor Presentation for the quarter and year ended March 31, 20
Slide 2: Largest Consumer Electronics Retailer in Hindi Heartland of India
Largest Consumer Electronics Retailer in Hindi Heartland of India Investor Presentation May 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Aditya Vision Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not form the
Slide 4: Table of Contents
Table of Contents 4-12 Q4 & FY24 Highlights 13-22 Business Overview 23-26 Historical Performance 27-32 Industry Overview 33-39 Appendix Q4FY24 Earnings Presentation 3
Slide 5: Q4 & FY24 Financial Highlights
Q4 & FY24 FINANCIAL HIGHLIGHTS
Slide 6: FY24 Snapshot: An Exciting Year for Aditya Vision
FY24 Snapshot: An Exciting Year for Aditya Vision 2x Topline in 2 years 100+ Stores in Bihar Nearly doubled its topline in just 2 years Strong Brand Patronage – Crossed 100 stores in Bihar Strong Inroads in UP in a short span Fund Raise from Marquee Investor Started expanding in UP in Q4FY23; now Su
Slide 7: Q4 & FY24 Financial Performance
Q4 & FY24 Financial Performance Revenue EBITDA PBT PAT 23% 31% 13% 16% 376 38 306 16 8 29 Q4FY24 7 14 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 32% 26% 24% 20% 167 1,743 77 107 133 86 64 FY24 1,322 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 (Rs. in Cr) 6
Slide 8: FY24 Operational Performance (1/2)
FY24 Operational Performance (1/2) Same Store Sales Growth (%) Bill Cuts (000 in Nos.) Average Selling Price (Rs.) 20% 3% 10% 21,747 359 299 H2FY24 5% 21,192 H2FY23 H2FY24 H2FY23 H2FY24 H2FY23 H2FY24 27% 5% 32% 787 22,150 FY24 617 15% 21,156 FY23* FY24 FY23 FY24 FY23 FY24 For SSSG of FY24, we have c
Slide 9: FY24 Operational Performance (2/2)
FY24 Operational Performance (2/2) Product Mix (%) Store Count (Nos.) Retail Footprint (Sq ft) 12% 11% 10% 11% H2FY24 19% 22% 145 5,88,400 130 5,31,300 71% 67% H2FY23 H2FY24 H1FY24 H2FY24 H1FY24 H2FY24 Home and Entertainment Solutions Digital Gadgets Others 38% 36% 12% 13% 145 FY24 19% 21% 5,88,400
Slide 10: FY24 Balance Sheet Highlights
FY24 Balance Sheet Highlights Working Capital Days Net Debt to EBITDA (x) Net Debt to Equity (x) Diluted Earnings Per Share (Rs.) 91 18% 83 77 66 1 1 63 53 17 13 0 0 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Inventory Days Payable Days WC Days *Receivable Days are less than 0 since the Company has neg
Slide 11: Q4 & FY24 Financial Performance
Q4 & FY24 Financial Performance Particulars (Rs in Cr) Q4FY24 Q4FY23 YoY% FY24 FY23 YoY% Revenue from Operations 375.7 306.3 23% 1,743.3 1,322.2 32% Total Expenditure 338.0 277.6 22% 1,575.8 1,189.3 33% EBITDA 37.7 28.7 31% 167.5 132.9 26% EBITDA Margin % 10.0% 9.4% --- 9.6% 10.1% --- Depreciation 7
Slide 12: FY24 Balance Sheet
FY24 Balance Sheet Particulars (Rs in Cr) 31 March 2024 31 March 2023 Particulars (Rs in Cr) 31 March 2024 31 March 2023 Equity and Liabilities Assets Equity Non-Current Asset (a) Equity Share Capital 13 12 Property, Plant and Equipment 78 56 (b) Other Equity 474 124 Capital Work in Progress 9 8 Tot
Slide 13: Roadmap Ahead
Roadmap Ahead Targeting to grow at 20-25% Revenue CAGR over the next 3 – 5 years Progressing towards Central UP from Eastern UP. Business is ready to scale beyond Bihar, Jharkhand & Uttar Pradesh to adjoining states in the “Hindi Heartland” over the next 3-5 years based on “Creeping Cluster Approach
Slide 14: Business Overview
ADITYA VISION BUSINESS OVERVIEW
Slide 15: 25 years of Aditya Vision – Sambandh Bharose ka
25 years of Aditya Vision – Sambandh Bharose ka 2024: First fund raise after IPO from the one of the World’s largest FII – Capital Group Opened 18 stores in UP in one year Crossed 100 stores in Bihar 2016: 1st Consumer Electronics Company to be listed 2023: Started expanding in UP ; on Exchange Beca
Slide 16: Focussed on Growth
Focussed on Growth High Growth Trajectory while maintaining Return Ratios Gross Margin % ROCE & ROE* (%) 16% 16% 16% 12% 11% 60% 48% 55% 46% 2020 2021 2022 2023 2024 43% With Size, our Gross Margins have improved keeping customer value in focus. 25% 29% 28% 24% 24% ROCE PAT Margin % 4.9% ROE 4.4% 3.
Slide 17: Aditya Vision at a Glance
Aditya Vision at a Glance Patna Headquarters 50%+ Mkt Share Largest Electronic 100% Retail 10,000+ In Bihar as per Crisil Report Retailer Sales Products sold at our Outlets 148 in Jharkhand Showrooms Till Date 100+ 1st Consumer 4,000+ Long Term Relationships with Electronics Retailer 2016 Rs 282 cr
Slide 18: Our 5 Driving Principles
Our 5 Driving Principles Customer-centric Large Supplier Scaling up business Prudent Capital Building a people- approach based on base (Brands) to pass on better Allocation with centric culture within providing Best selling their prices to customers Strong Corporate a technology-driven Range, Lowest
Slide 19: Unique Business Model
Unique Business Model OEM Supply Customer Service ▪ 80% Direct OEM Supply leading ▪ Aditya Seva - One-stop solution for to higher margins after-sales services. ▪ 20% Distributors/C&F Agents ▪ Aditya Suraksha – Allows customers to ▪ Long-term relationships with enjoy an extended warranty 100+ brands
Slide 20: Store Unit Economics At A Glance
Store Unit Economics At A Glance Rs 55-65 lacs 148 (Till date) 13-15% Average Capex per Store Outlets in Bihar + Jharkhand + UP Gross Margin Range --------------------------------------------------- ----------------------------------------------- ----------------------------------------- Rs 2 – 2.25
Slide 21: Business Economics
Business Economics (% of Sales) FY20 FY21 FY22 FY23 FY24 Gross Margin (%) 11% 12% 16% 16% 16% Gross Margin has increased with scale Employee Cost 3% 3% 3% 3% 3% Low store-level employee cost Rent* 1% 2% 2% 2% 2% Average rent of Rs 2 – 2.25 lacs p.m/store. Advertisement & Publicity 1% 1% 1% 1%
Slide 22: Strategic Focus on Hindi Heartland Region
Strategic Focus on Hindi Heartland Region BIHAR - 105 STORES (Present in all 38 districts) JHARKHAND - 24 STORES People living in Bihar, Jharkhand & UP (20 Districts Covered out of 24 Districts) UTTAR PRADESH - 19 STORES constitute 30% of India’s Population (14 Districts Covered out of 75 Districts)
Slide 23: Revenue Seasonality of the Business (2 yrs avg.)
Revenue Seasonality of the Business (2 yrs avg.) Quarterly Share of Revenue(%) Peak Summer Season + Marriage Season + Strong Q1 35% Demand for Cooling Products + Major Stocking up prior to this quarter Q2 19% Weaker Quarter owing to Monsoon + Shraadh months Q3 24% Festive Season with attractive Bran
Slide 24: Historical Performance
ADITYA VISION HISTORICAL PERFORMANCE
Slide 25: Historical Financial Highlights
Historical Financial Highlights EBITDA (Rs.) EBITDA Margin(%) PAT (Rs.) 77 CAGR – 47% 10% 10% CAGR – 57% 167 64 9% 133 7% 83 35 53 20 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 PAT Margin (%) Net Debt to EBITDA (x) Net Debt to Equity (x) 1.6 1.5 4.9% 1.4 1.4 4.4% 1.3 3.9% 1.2 2.7% 0
Slide 26: Historical Operational Performance
Historical Operational Performance Working Capital Days* 106 98 87 83 91 77 66 45 53 19 17 13 FY21 FY22 FY23 FY24 *Receivable Days are less than 0 since the Company has negligible Trade Receivables **Payables & Inventory Days is calculated based on Purchases and Cost of Goods Sold respectively Inven
Slide 27: Annual Income Statement
Annual Income Statement Particulars (Rs in Cr) FY21 FY22 FY23 FY24 Revenue from Operations 748 899 1,322 1,743 Total Expenditure 695 816 1,189 1,576 EBITDA 53 83 133 167 EBITDA Margin % 7% 9% 10% 10% Depreciation 13 16 20 28 Profit Before Interest & Tax 40 67 113 139 Interest 17 25 30 39 Other Incom
Slide 28: Industry Overview
ADITYA VISION INDUSTRY OVERVIEW
Slide 29: Powering India's Retail Surge: Driving Consumer Spending Growth
Powering India's Retail Surge: Driving Consumer Durables Market Growth (Rs Trn) Consumer Spending Growth CAGR 11-15% CAGR 8% Shift in Consumption Pattern towards Non-Food Categories % share of monthly per capita consumption exp 5.1 2011-12 2022-23 3.1 3.6 2.4 2.1 Food Non Food Food Non Food Rural 53
Slide 30: Market Penetration & Opportunity in Hindi Heartland
Market Penetration & Opportunity in Hindi Heartland Source: www.statsofindia.in , Business Standard 29
Slide 31: Shift from Unorganised to Organised
Shift from Unorganised to Organised: Rapid Shift from Overall Un-Organised to Organised sector in Indian Consumer’s Durable Industry Aditya Vision is well Positioned to benefit Organised Unorganised 23% 42% 51% 77% 58% 49% FY16 FY21 FY27P Organised Sector to Grow Faster than Overall Consumer Electro
Slide 32: Rising premiumization is driving the growth of Brick-and-Mortar stores
Rising premiumization is driving the growth Demand for Fully Automated WMs continuously rising Share of Split ACs is on a rise Share of Bigger Size TV of Brick-and-Mortar stores. Increasing Fully Semi Window Split <32" 32" >32" Brick-and-mortar stores will thrive with hands-on inspection needs, serv
Slide 33: Uttar Pradesh – Next Engine for Aditya Vision's Sustainable Growth
Electricity Conspn Growth in Hindi Heartland States vs Other States has Uttar Pradesh – Next Engine for Aditya grown by ~2x times* Vision’s Sustainable Growth *The starting point for all the states has been indexed to100% 211% ~2.1x India’s 3rd largest Ranked 11th in economy - 8% India in terms of F
Slide 34: Appendix
ADITYA VISION APPENDIX
Slide 35: Our Trade Partners
Our Trade Partners Stee fetter SAMSUNG @LG @ **e* SONY Panasonic VOLTAS "7 Haier @GENERAL Poann © Bosch GLEN PHILIPS [HMOED) Ba] euue sran gag Hus coe > GMSCIG) #HaveLis <« y ; —— esmith EEBEZE cisens jee [EI] Veco GFABER AIR COOLERS (D DAL 75S IFR BOSE amazon vivo oppo 34
Slide 36: Our Consumer Finance Partners
Our Consumer Finance Partners ~41% Sales Financed 35
Slide 37: Board of Directors
Board of Directors Yashovardhan Sinha Nishant Prabhakar Yosham Vardhan Sunita Sinha Chairman & Managing Director Whole Time Director Whole Time Director Non-Executive Director ✓Promoter, Chairman and ✓ Promoter and Whole-time ✓ Promoter and Whole-time ✓ Promoter, and Non-Executive Managing Director
Slide 38: Independent Directors
Independent Directors Ravinder Zutshi Nusrat Syed Hassan Apeksha Agiwal Atul Sinha Rahul Kumar Independent Director Independent Director Independent Director Independent Director Independent Director ✓45+ years of experience in ✓Managing Director at ✓Highly qualified ✓35+ years at UCO Bank in ✓Quali
Slide 39: Awards & Recognition
Awards & Recognition Samsung ACE Dell Technologies – Samsung AISEN No.1 Bajaj Most Bajaj Highest Carrier – Third Daikin – Outstanding Dell –Best Partner Award Top RLFR Partner Winner Cup Cooler Sales Preferred Partner Growth for Year Highest RAC Sales Sales RLFR Hitachi – Best HDB – O/S HDFC Best Hi
Slide 40: In-Store Photo Gallery
In-Store Photo Gallery 39
Slide 41: Thank You
Thank You For further information, please get in touch with: Aditya Vision Ltd. Ms. Akanksha Arya-Company Secretary Tel: +91-612-2520854 | Email: cs@adityavision.in www.adityavision.in Investor Relations Contact: Monali Jain – Research Analyst Tel: +91-75973 04020 Email: monali@goindiaadvisors.com S