Electronics Mart India Limited · NSE:EMIL

Electronics Mart India — FY2023 Earnings Presentation

36 slides from Electronics Mart India's earnings presentation, May 26, 2023

  1. Slide 1: Exchange filing cover letter

    To, Listing Manager The Secretary The National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, Plot No: C/1, G Block, PJ Towers Bandra Kurla Complex- Bandra(E), Dalal Streets Mumbai - 400 051 Mumbai- 400001 Symbol: EMIL Scrip Code: 543626 Series: EQ ISIN: INE02YR01019 Sub: Investor’s Prese

  2. Slide 2: Investor Presentation May 2023

    Investor Presentation May 2023

  3. Slide 3: Safe Harbor

    SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Electronics Mart India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an

  4. Slide 4: About Us

    ABOUT US Largest Player in the Southern region in revenue terms with dominance in Telangana and Andhra MBOs P Pradesh and the 4 th largest consumer durables and electronics retailer in India 114 EBOs 13 P Diversified product offerings from 70+ brands comprising of more than 6,000 SKU across product

  5. Slide 5: Our Journey

    OUR JOURNEY 2022 2021 2020 2019 2018 2017 2014 o IPO Listed at BSE /NSE 1980 o Raised INR 500 crores Op eration al store cou n t reach ed : 99 for fu n d in g in cremen tal o Crossed Rs. 3,000 workin g cap ital stores (88 MBOs + crores in Net Sales req u iremen ts , for o E xp an d ed 11 E BOs) o Aw

  6. Slide 6: Largest Electronics Goods Retailer in South India

    LARGEST ELECTRONICS GOODS RETAILER IN SOUTH INDIA We are the Largest player in the Southern region in revenue terms with dominance in Telangana and Andhra Pradesh AND 4 th Largest Consumer Durables and Electronics retailer in India FY22 Revenues (Rs. Bn.)* 1,694.0 South Based Chains 82.1 53.3 43.5 1

  7. Slide 7: Cluster Based Distribution Network

    CLUSTER BASED DISTRIBUTION NETWORK Deep penetration in the states of Andhra Pradesh & Telangana with a growing presence in NCR Online Presence MBO Brands (# Stores) Cities States Retail Stores NCR 41 4 127 92 MBO : 14 Cities : 2 114 MBO; 13 EBO Retail Area Central Warehouses 13 1.23 mn. sq. ft. 10 5

  8. Slide 8: Diversified Product Profile Comprising of 6,000+ SKUs

    DIVERSIFIED PRODUCT PROFILE COMPRISING OF 6,000+ SKUS 1,864 Fastest growing segment with rising 1,395 contribution to the overall revenue pie Mobiles from 29% (FY19) to 37% in FY23 1,018 1,031 Phones, Fitness Tracker Revenue Split (Q4 FY23) & Tablets Have relationships with the large brands in this

  9. Slide 9: Rapid Store Expansion

    RAPID STORE EXPANSION Stores 71 +31.0% 93 +10.8% 103 +8.7% +23.3% 122 127 Retail ‘000s sq. ft 765 +23.0% 940 +10.7% 1,041 +8.0% +17.4% 1,194 1,222 127 24 10 22 59 12 Opened 12 22 11 24 Closed - - 1(1) - FY19 FY20 FY21 FY22 FY23 additions FY23 Particulars FY20 FY21 FY22 FY23 Store Count 71 93 103 127

  10. Slide 10: Our Retail Outlets

    OUR RETAIL OUTLETS ELECTRONICS

  11. Slide 11: Our Specialised Retail Stores

    OUR SPECIALISED RETAIL STORES 10

  12. Slide 12: Strategically Located Logistics and Warehousing Facilities

    STRATEGICALLY LOCATED LOGISTICS AND WAREHOUSING FACILITIES 10 large centrally located warehousing facilities which are backed by individual storage areas at store level of varying sizes to cater to individual stores or a group of st ores Efficient Inventory Management Robust Information Technology S

  13. Slide 13: Strong Growth in Organised Brick & Mortar Retail

    STRONG GROWTH IN ORGANISED BRICK & MORTAR RETAIL Retail Industry Market Size Expected to Grow at Organised Retail Penetration also Organised Brick & Mortar (B&M) Growing Faster 14% CAGR Expected to Grow CAGR +14% 103 13% CAGR +5% CAGR +14% 7908 CAGR +6% 9% 5680 62 66 4627 57 4028 43 3149 FY 16 FY 20

  14. Slide 14: Continued Growth Momentum in Consumer Durables Across Categories

    CONTINUED GROWTH MOMENTUM IN CONSUMER DURABLES ACROSS CATEGORIES Consumer Durable Industry Stated to Grow at India lags global peers in consumer durables penetration 13-15% ahead % of households 4.6 +14% Colour Televisions 50% 98 - 100% 96 - 98% 96 - 98% 98 - 100% 96 - 98% 95 - 97% Refrigerator 40%

  15. Slide 15: Board of Directors

    BOARD OF DIRECTORS Pavan Kumar Bajaj Karan Bajaj Astha Bajaj Chairman & Managing Director Chief Executive Officer & WTD Executive Director & WTD • 40+ years experience in the retail • 10+ years experience in the retail • 4+ years experience in business management business management business managem

  16. Slide 16: Senior Management Team

    SENIOR MANAGEMENT TEAM Premchand Devarakonda Giridhar Rao Chilamkurthi Vishal Singh Chief Financial Officer Vice-President - Sales Head - Marketing • Qualified Chartered Accountant and • Hold s Master’s d egree in Bu sin ess • Hold s Bach elor’s of Commer c e an d h old s Bach elor’s d egree in Comm

  17. Slide 17: Awards & Accolades

    AWARDS & ACCOLADES Certificate of Appreciation For Best Electronics Retail Chain Best Business Performance Q1 exemplary sales CY22 CY22 Contribution CY22 RADIO CITY SAMSUNG SAMSUNG 16

  18. Slide 18: Key Growth Strategies

    KEY GROWTH STRATEGIES • Deepen store network in existing clusters and increase market share in existing markets, Follow a peripheral and Expand reach across concentric expansion approach select geographies and • Plan to open a further 13 MBOs in NCR, 21 MBOs in AP, and 8 MBOs in Telangana by FY25 .

  19. Slide 19: Key Growth Strategies

    KEY GROWTH STRATEGIES • Right mix of product assortments at competitive pricing: Maintaining optimal customer service standards and introduce new products Enhancing sales • Leveraging consumer finance to provide convenience & enhance purchasing ability: Make our products accessible to wider customer

  20. Slide 20: Strong FY23 Performance

    STRONG FY23 PERFORMANCE Revenue from Operations EBITDA Profit Before Tax Profit After Tax Rs. 5,446 crores Rs. 336 crores Rs. 163 crores Rs. 123 crores 25% 15% 17% 18% Sales mix Store Ownership Store Count Retail Store Area 9 12 13 15% 1.23 Mn Sq. Ft. 37% Same Store Sales Growth 48% 106 114 17.4% Mo

  21. Slide 21: Q4 & FY23 Financial Highlights

    Q4 & FY23 FINANCIAL HIGHLIGHTS Revenue from Sale of Electronic & Total Revenues (Rs. Crs.) Same Store Sales Growth (SSSG) Consumer Durables +8% +25% Online Wholesale Retail 1,328 5,446 Q4 FY23 FY23 1,231 4,349 2% 1% 1% 0% 2% 1% 1% 0% 97% 98% 97% 98% 3.2% 17.4% Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY

  22. Slide 22: Q4 & FY23 Financial Highlights

    Q4 & FY23 FINANCIAL HIGHLIGHTS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) +2% +15% +2% +18% 89 91 336 7.2% 6.8% 6.7% 35 36 123 292 6.2% 104 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 PAT Margins RoCE* RoE* 2.9% 2.4% 2.3% 18.9% 17.4% 2.7% 13.7% 10.4% Q4

  23. Slide 23: Profit and Loss Statement

    PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) Q4 FY23 Q4 FY22 YoY FY23 FY22 YoY Revenue from Operations 1,327.8 1,230.7 8% 5,445.7 4,349.3 25% Purchases of stock in trade 1,393.9 1,220.9 4,864.7 3,887.8 • On account of investments Changes in Inventory -249.8 -158.4 -159.7 -132.5 made to op

  24. Slide 24: Balance Sheet

    BALANCE SHEET Assets (in Rs. Crs.) Mar-23 Mar-22 Equity & Liabilities (in Rs. Crs.) Mar-23 Mar-22 Non - Current Assets 1,283.9 875.4 Total Equity 1,184.3 596.5 Property Plant & Equipments 509.9 279.5 Share Capital 384.7 300.0 CWIP 13.9 23.8 Reserves & Surplus 799.6 296.5 Intangible assets 0.5 0.6 No

  25. Slide 25: Cash Flow Statement

    CASH FLOW STATEMENT Particulars (Rs. Crs.) FY23 FY22 Net Profit Before Tax 163.2 139.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 178.5 152.6 Operating profit before working capital changes 341.7 292.3 Changes in working capital -287.0 -138.6 Cash generated from Operation

  26. Slide 26: Historical Highlights

    Electronics Mart India Limited HISTORICAL HIGHLIGHTS

  27. Slide 27: Operating Indicators

    OPERATING INDICATORS Top 5 Brands (Revenues) Top 5 Brands (% of Revenues) Store Ownership (#) Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Others POPL Owned Leased 5,047 65.1% 64.8% 61.9% 64.2% 127 103 9 4,062 1,163 93 12 2,978 3,029 889 782 71 6 7 7 8 740 740 671 586 5 323 340 8 555 544 274 367 106 169

  28. Slide 28: Financial Indicators

    FINANCIAL INDICATORS Sale of Products Retail dominates the Revenues H2 H1 Online Wholesale Retail 2% 1% 2% 1% 2% 1% 1% 0% 52% 57% 97% 97% 97% 98% 47% 63% 43% 48% 53% 37% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Summer Season Revenue (April - June) Festive Season Revenue (Sept - Nov) Same Store Sales

  29. Slide 29: Financial Indicators

    FINANCIAL INDICATORS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) 336 7.2% 123 6.4% 6.7% 292 6.2% 104 228 82 204 59 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 PAT Margins RoCE RoE 2.6% 20.3% 18.8% 2.4% 18.9% 17.4% 2.3% 1.8% 14.4% 13.7% 11.9% 10.4% FY20 FY21 FY22 FY23 FY20

  30. Slide 30: Strong Balance Sheet

    STRONG BALANCE SHEET Working Capital* Inventory Days Recievable Days Creditor Days Working 63 days 73 days 66 days 68 days Capital Days 63 60 60 54 10 11 9 9 1 1 2 0 Mar-20 Mar-21 Mar-22 Mar-23 Cash Flow from Operations (Rs. Crs.) Debt to Equity Ratio Net Debt to EBITDA (excl. Working Capital Adj.)

  31. Slide 31: Historical Profit and Loss Statement

    HISTORICAL PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) FY23 FY22 FY21 FY20 Revenue from Operations 5,445.7 4,349.3 3,201.9 3,172.5 Purchases of stock in trade 4,864.7 3,887.8 2,846.9 2,776.2 Changes in Inventory -159.7 -132.5 -79.6 -74.0 Gross Profit 740.7 593.9 434.6 470.3 Gross Profit

  32. Slide 32: Historical Balance Sheet

    HISTORICAL BALANCE SHEET Assets (in Rs. Crs.) Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs.) Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 1,283.9 875.4 720.2 625.9 Total Equity 1,184.3 596.5 491.9 433.1 Property Plant & Equipments 509.9 279.5 275.5 222.9 Share Capital 384.7 300.0

  33. Slide 33: Historical Cash Flow

    HISTORICAL CASH FLOW Particulars (Rs. Crs.) FY23 FY22 FY21 FY20 Net Profit Before Tax 163.2 139.8 79.6 112.2 Adjustments for: Non -Cash Items / Other Investment or Financial Items 178.5 152.6 130.4 119.6 Operating profit before working capital changes 341.7 292.3 209.9 231.8 Changes in working capit

  34. Slide 34: Delivering Value to Shareholders

    DELIVERING VALUE TO SHAREHOLDERS IPO in October 2022 ✓ Company raised Rs. 500 Cr via fresh issue of shares ✓ Objects of the issue ▪ Funding of capital expenditure for expansion and opening of stores and warehouses ▪ Funding incremental working capital requirements ▪ Repayment/prepayment, in full or

  35. Slide 35: Key Takeaways

    KEY TAKEAWAYS Cluster based expansion strategy with robust growth and highest Operating margins; Recently forayed in new geography by opening stores in the lucrative NCR market Flexible business model built to create long term sustainable footprint Long Term Relationship with marquee Brands in each

  36. Slide 36: Thank You

    THANK YOU Company: Electronics Mart India Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L52605TG2018PLC126593 CIN: U74140MH2010PTC204285 Mr. Premchand Devarakonda (CFO) Mr. Deven Dhruva / Ms. Hinal Kothari premchand.d@bajajelectronics.in deven.dhruva@sgapl.net / hinal.Kothari@sgap

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