V-mart Retail Ltd · NSE:VMART
V-mart Retail — Q2 FY2021 Earnings Presentation
31 slides from V-mart Retail's earnings presentation, Jan 7, 2021
Slide 1: Cover letter to stock exchanges: Presentation to Analysts/Investors
Ref: No: CS/S/L-262/2020-21 7th January, 2020 To: To: The Listing Department The Corporate Relationship Department NATIONAL STOCK EXCHANGE OF THE BSE LIMITED INDIA LIMITED Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Mumbai-400 001 Bandra-Kurla Complex Scrip code: 534976 Bandra (E), Mum
Slide 2: Review of Financial Results Q2 FY'21
www.vmartretail.com V-Mart Retail Ltd. Review of Financial Results Q2 FY’21 V-Mart Retail Limited
Slide 3: Disclaimer
This document does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of V-Mart Limited (the "Company") or any of its affiliates in any jurisdiction or as an inducement to enter into investment activity
Slide 4: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 3
Slide 5: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 4
Slide 6: Journey So Far
Journey So Far Won ‘Transforming India Retail Award ’ 2020 by Ministry of Textiles Public issue of Crossed INR Changed name from 44,96,000 Equity 10,000 mn total Varin Commercial Private Limited to V-Mart Retail Shares revenue 2018 Certified as a “Great Workplace” milestone Private 2008 2019 Incorpo
Slide 7: V-Mart is one of the pioneers in value retail
V-Mart is one of the pioneers in value retail V-Mart offers an unparalleled shopping experience to the Leveraged strengths to achieve sustainable growth consumer • V-Mart operates a chain of value retail stores in tier II , III and IV cities • Calibrated cluster expansion model • Has 274 stores spre
Slide 8: Well thought-out product assortment
Well thought-out product assortment… Topwear Bottomwear Innerwear Winterwear Apparel – 79% 34% Private Label – 59% * 7% Indianwear Westernwear Winterwear ASP – INR 334 7% 10% 20% Men Women Boys Girls Infant Boys Girls Infants 1% Home 2% 5% Lifestyle 5% Non – Apparel – 13% Footwear Purse & Gifts Toys
Slide 9: With strong procurement capabilities
..with strong procurement capabilities V-Mart’s experience in sourcing has ensured that merchandise reflecting international and national fashion trends are supplied to the customers at affordable prices Ludhiana V-Mart sources products directly from respective product hubs to ensure quality product
Slide 10: Expanding presence through a cluster based approach
Expanding presence through a “cluster based” approach 63 Stores 123 Stores 274 Stores 10 States 14 States 19 States Stores opened till FY’15 Stores opened till FY’20 Stores opened till FY’13 Stores opened during FY’16 Stores opened during FY’21 Stores closed during FY’16 Stores closed during FY’21 2
Slide 11: Board of Directors and senior management personnel
Board of Directors and senior management personnel Board of Directors Lalit Agarwal Madan Agarwal Aakash Moondhra Murli Ramachandran Sonal Mattoo Govind S. Shrikhande Chairman & MD Wholetime Director Independent Director Independent Director Independent Director Independent Director Senior Managemen
Slide 12: Awards and recognitions
Awards and recognitions Great Place to Work Institute Bureau Veritas Textile Ministry of India Bloomberg 2020 2019 2019 2018 Certified as ‘Trusted Shop’ under “Transforming India Retail “World’s best performing “Great Workplace” IRF Trusted Mark Certification Award” department stores chain” Scheme I
Slide 13: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 12
Slide 14: Value retail constitutes ~60% of the overall apparel retail market
Value retail constitutes ~60% of the overall apparel retail market Growth in value retail is primarily driven by Indian Retail Overview Apparel Retail – breakdown organised value retail (USD bn) 1,054 (USD bn) (USD bn) CAGR CAGR Others 26 44 72 793 Home & Living 11 35 81 33 5.5% 0.9% 34 25 CDIT 37 5
Slide 15: V-Mart has presence in states constituting 40+% of the addressable market
V-Mart has presence in states constituting 40+% of the addressable market… State wise Value Retail Spending (% of Total Value Retail in India) States in which V-Mart is present V-Mart is 18.4% present in 15.2% 19 states and these 7.9% 7.2% states 6.5% 6.3% 4.6% 4.2% 4.2% 4.1% 3.9% 3.8% 3.8% constitu
Slide 16: Robust growth strategy ensures V-Mart is well positioned to capitalise on the opportunity
Robust growth strategy ensures that V-Mart is well positioned to capitalise on the opportunity Increasing focus on women wear Develop private labels Expansion based on proven Relatively low presence in women value A private label portfolio that accounts for 59% of revenue# from apparel in FY’20
Slide 17: Omni channel strategy
Omni channel strategy Online – an untapped opportunity# Ecommerce – Apparel & Accessories # Internet Users (mn) 560 (USD bn) CAGR: 17% 20.0 327 9.5 72 2010 2015 2019 2020 2025 Two phased approach in building a robust Omni channel play Phase 1 Phase 2 Launched online retail through website vmartretai
Slide 18: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 17
Slide 19: Key Business Details
Key Business Details Commitment towards stakeholder value Presence in various high growth states creation with focus on Tier 2/3/4 Cities High brand recall coupled with Consistent track record of deep understanding of the growth and profitability consumer preferences Sourcing and vendor management E
Slide 20: Presence in high growth states with focus on Tier 2/3/4 Cities
Presence in high growth states with focus on Tier 2/3/4 Cities Presence Presence in 6 out in of 5 out topof 10top states 7 states withwith highest highest expected retailretail spending spending growth# growth presence Strong Expected growth in retail spending (FY21-25) 15.7% 11.7% 11.4% 10.9% 10.8%
Slide 21: High brand recall and deep understanding of consumer preferences
High brand recall and deep understanding of consumer preferences Deep understanding of consumer preferences presence Strong Relevant and differentiated fashion Youth-centric product assortment Leading to 58% High Brand Recall Reliable quality loyal customer repeat sales Affordable price points base
Slide 22: Superior sourcing and vendor management built on trust
Superior sourcing and vendor management built on trust Stable shrinkage over the past 3 years (% of Revenue#) Efficient inventory holding period (Days of Sales) across categories** presence Strong 1.6% High Brand 1.3% Recall 0.9% 91 79 42 Apparels Non-Apparels Kirana sourcing Superior Increasing tru
Slide 23: Efficient operating metrics
Efficient operating metrics Continuous increase in number of stores …with sustained increase in retail space ...increasing bill cuts presence Strong 266 274 CAGR: 18% 2.3 CAGR: 19% 2.2 Memo Count (mn) 22 Retail Space (mn sq. ft) 214 171 1.8 20 High Brand Recall 1.4 17 sourcing Superior FY'18 FY'19 F
Slide 24: Consistent track record of growth and profitability
Consistent track record of growth and profitability Strong Revenue# Growth (in INR mn )… ..while maintaining profitability Return Metrics presence Strong SSSG^ 8.8% 3.7% -2.3% EBITDA % PAT % RoE RoCE CAGR: 17% 16,620 13% 36% 14,337 11% 29% High Brand 12,224 9% Recall 6% 19% 25% 4% 3% 16% 11% sourcin
Slide 25: Commitment towards stakeholder value creation
Commitment towards stakeholder value creation presence Strong SUPPLIERS 96% local sourcing 25% MSME suppliers Prompt payment to vendors High Brand Recall ENVIRONMENT Abolished single use plastic carry 10.2 lakhs carton reused sourcing Superior bags Operating Metrics EMPLOYEES 55% of employees from C
Slide 26: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 25
Slide 27: Covid-19 impacted financials (H1)
Covid-19 impacted financials Revenue# (INR mn) EBITDA (INR mn) Footfall (mn) No. of stores opened 65% 27 691 7,672 58% 20 2,536 5 [VALUE ] (62) H1'20 H1'21 H1'20 H1'21 H1'20 H1'21 H1'20 H1'21 Footfall (mn) Conversion Sales ^ per sq.ft per month (INR) Same Store Sales Growth (YoY%) Same Store Volume
Slide 28: Covid-19 impacted financials (quarterly)
Covid-19 impacted financials Revenue# (INR mn) EBITDA (INR mn) Footfall (mn) No. of stores opened [VALUE [VALUE Footfall (mn) Conversion 14 ] ] [VALUE 13 [VALUE ] 68% 63% ] 57% [VALUE 58% ] 1,755 [VALUE ] 3 781 2 1 (3) 0 (58) Q1'20 Q2'20 Q1'21 Q2'21 Q1'20 Q2'20 Q1'21 Q2'21 Q1'20 Q2'20 Q1'21 Q2'21 Q1
Slide 29: Index
Index #1 #2 #3 #4 #5 Company Industry, Market Business Covid-19 Financial Overview Opportunity and Highlights Impacted Overview Strategy Financials 28
Slide 30: Financial overview - key financial indicators
Financial overview - key financial indicators Profit and Particulars FY 2018 FY 2019 FY 2020* Loss Revenue^^ 12,224 14,337 16,620 (INR mn) YOY Growth (%) 22% 17% 16% CAGR Starting from 22nd EBITDA 1,328 1,329 2,138 3 Yrs. Revenue 17% March 20 and until early May, (%) 11% 9% 13% Up to majority of the
Slide 31: Thank You
www.vmartretail.com Thank You For further information, please contact: IR : Girish Garg – girish.garg@vmart.co.in CFO: Anand Agarwal – anand.agarwal@vmart.co.in