Slide 1: Vaibhav Global Limited Financial Results Cover Letter
VAIBHAV GLOBAL LIMITED Ref: VGL/CS/2024/110 Date: 11th November, 2024 National Stock Exchange of BSE Limited India Limited (NSE) Phiroze JeejeeBhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra, Mumbai – 400 051 Scrip Code: 532156 Symbol: VAIBHAVGB
Slide 2: Q2 FY25 Investor Presentation
Q2 FY25 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its group companies’ future business developments and economic p
Slide 4: MD's Message
Pleased to report a 13% revenue growth, reflecting our continued momentum. Consistent with our guidance, we maintained strong gross margins at 63.5%, supported by strategic pricing and a favorable product mix. Our vertically integrated supply chain has also enabled us to achieve stable and market-le
Slide 5: Q2 FY25 Highlights
Q2 FY25 Highlights 13% YoY 9.3% YoY 8.7% Rs. 100 cr. ₹ Revenue Growth Volume Growth EBITDA Margin Net Cash Positive Quarterly revenue grew by 13% YoY A Strong Balance Sheet: Net cash position of Rs. 100 crores. Long term bank facilities' rating upgraded to CARE A+ Highest ever unique customer base
Slide 6: Table of Contents
06 11 Company Business Table of Contents Overview Overview 26 30 Update on Emerging Industry Acquisitions Trends & Germany 34 40 Operational & Financial Financial Highlights Performance Trends 45 Annexures
Slide 7: Company Overview
of VAIBHAV GLOBAL LIMITED COMPANY Overview
Slide 8: About Us
About Us Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products ▪ TV Homes accessed (*FTE): ~ 130 mn ▪ End-to-end B2C business model households ▪ Presence through proprietary TV channels ▪ Growing digital presence and digital platforms Strong Mana
Slide 9: Our Vision and Our Mission
Sustainability Initiatives Our Vision Be the Value Leader in Electronic Retailing of Jewellery & Vaibhav Global Limited Lifestyle Products Global Retailer on TV and Digital Platforms of Fashion Jewelry, Lifestyle Products and Accessories Our Mission To deliver 1 million meals per school day to child
Slide 10: An Evolving Journey
An Evolving Journey Started Gemstones Started Jewellery Listing on stock business manufacturing for B2B exchange 1980 1996 1997 Started 'Lifestyle Products' Shifted strategy towards category, name changed to 'value conscious offering' Vaibhav Global Ltd. 06-07 Started own TV 2013 2008 channels in UK
Slide 11: Strong & Experienced Management
Strong & Experienced Management Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Ms. Dee Kumar Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Mohammed Farooq Mr. Pushpendra
Slide 12: Business Overview
oF VAIBHAY GLOBAL LIMITED BUSINESS Overview
Slide 13: A Global Retailer on Proprietary TV Channels
A Global Retailer on Proprietary TV Channels Proprietary ‘TV Channels’ Primary Retail Markets 61 million HH USA 27 million HH UK 42 million HH Germany Reaching TV homes through Cable, Satellite and OTA broadcasts (Over The Air) HH: Households
Slide 14: Complimented by Digital Platforms
Complimented by Digital Platforms Digital Platforms Our Presence Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de www.idealworld.tv www.mindfulsouls.com Third Party Marketplaces Social Retail OTT Platforms
Slide 15: With Huge Growth Potential: TAM of USD 20 bn
With Huge Growth Potential: TAM of USD 20 bn Opportunity ➢ Target customers: Baby Boomers (65+ years) & Gen X size (45+ years) $14- $15 bn UNITED STATES $2-$2.5 bn UNITED KINGDOM ~$3 bn ➢ Value-buying proposition of ~$35 GERMANY & AUSTRIA ➢ Widest product range comprising ~25,000 SKUs • Statista, Ma
Slide 16: Vertically Integrated Supply Chain: Jaipur
Vertically Integrated Supply Chain Leveraging Global Jewellery Manufacturing Hub: Jaipur Global manufacturing hub 169,000 sq. ft. Making in India for of Fashion Jewellery & Fully-integrated Manufacturing Set-up in Jaipur ‘Western Markets’ Gemstones Production Capacity: 5 million pcs p.a. Availabilit
Slide 17: Vertically Integrated Supply Chain: Global Sourcing Base
Vertically Integrated Supply Chain Complemented by a Strong Global Sourcing Base Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Ken
Slide 18: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Through New Designs & Products Fashion Jewellery & Gemstones Life-Style Products Detangler Hair-Brush Walking Cane Lagoon Tourmaline Soulsmart Ring (Retractable Bristle Technology) ▪ ~14K-15K new jewellery designs launched annually ▪ A rich product basket of ~5000 uniqu
Slide 19: 'Innovation' Focused
‘Innovation’ Focused 56,000+ 6,600+ 2,560+ Ideas Generated Ideas Approved Products sold 55,000+ 4,400+ Ideas Proposed to Orders Placed Buyers Global Search Program Crowdsourcing of Ideas Received ‘Design Patent’ for Received ‘Design Patent’ for A Global product innovation From employees, customers a
Slide 20: Strengthening Own Brand Portfolio
Strengthening Own Brand Portfolio USA UK Germany • Leveraging manufacturing & digital capabilities • Number of brands: 31 • Current revenue mix: ~31% of gross B2C sales • Target revenue mix: ~50% by FY27 of gross B2C sales • Strategic brand matrix (price laddering and offering) • Increase repeats an
Slide 21: Resulting In
Resulting In
Slide 22: Top decile shareholders' returns since listing
Top decile shareholders’ returns since listing Growing Consistently Parameters CAGR Return (Rs. in crores) (27 years) (x times) Revenue 18% 93 EBITDA 17% 66 Profit After Tax 14% 35 ~22% CAGR in market cap. since listing (~260 times), excluding dividends
Slide 23: R's of Customer Engagement
4 R’s of Customer Engagement TV: Diverse Products Enduring relationships Linear | OTA Expanding wallet share Digital: Deep value proposition Convenience Browsers | Mobile Apps | Cross-selling Market-places | OTT| Social Media Engrossing Content Digitalization/AI Registrations & Reach (HH) Retention
Slide 24: Broad Basing Customer Base
Broad Basing Customer Base Unique Customer Base (in 000') ➢ Highest ever unique customer base of 682 K 204 164 126 ➢ YoY growth of 51% (incl. acquisition) 84 459 472 478 ➢ YoY growth of 6% (ex-acquisition) 452 454 ➢ Healthy ‘spend per customer’ of $695 (ex- acquisition) Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY
Slide 25: With long term value creation
With long term value creation Cash accretive business model With strong dividend payouts 272 268 237 230 190 176 105 127 Since FY20 Rs. in crores 90 55 11 Profits After Tax 985 FY 20 FY 21 FY22 FY23 FY24 H1 FY25 Dividend payout 536 Impact of one-time Planned increase in planned higher capex inventor
Slide 26: Broad Based E-tailer
Broad Based E-tailer B2C Revenues by Format B2C Revenues by Product TV revenues Digital revenues Jewellery Lifestyle 27% 39% 39% 12% 30% 34% 73% 88% 61% 61% 70% 66% FY18 FY24 H1 FY25 FY18 FY24 H1 FY25 Jewellery : Fashion Jewellery, Gemstones and Accessories Lifestyle : Home Décor, Beauty & Hair Care
Slide 27: An update on Germany and Recent Acquisitions
An update on GERMANY AND RECENT ACQUISITIONS
Slide 28: Germany
Germany Increased TAM (immediate target addressable market) by ~20% ▪ Q2 revenue: Euro 6.7 mn ▪ Revenue grew by 25% QoQ ▪ Repeat purchase: 23 pieces ▪ Digital sales mix: 27% ▪ Presence in 42 million households (95% penetration) Revenue Trend 50 No. of HH (in millions) 45 42 42 40 40 Revenue (in Euro
Slide 29: Ideal World
Ideal World ▪ TTM revenue: £ 17 mn ▪ 60%+ gross margins ▪ Unique customer: 104 k ▪ Presence in 27 million households (100% penetration) ▪ Transponding on HD network ▪ Operating profitably on direct cost basis Revenue and New Customers 6.0 150 (cumulative) (in '000) 4.9 Net Revenue (£ in mn) 5.0 4.4
Slide 30: Mindful Souls
Mindful Souls ▪ TTM performance: ✓ Revenue: $ 17.4 mn ✓ PBT margin: 10% ✓ AOV: ~ $45 ▪ Unique customer: 100 k ▪ Leveraging VGL’s supply chain ✓ 4 new products launched in Q2 FY25 ✓ Benefit in terms of profitability to accrue from Q3 onwards
Slide 31: Emerging Industry Trends
oF VAIBHAV GLOBAL LIMITED “Emerg ing INDUSTRY TRENDS
Slide 32: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer Expanding presence through OTA watching traditional Pay-TV % of population having TV (age group wise) Total OTA HH in US: 86% 23 mn 80% 81% 73% 65% 66% Shop LC’s Presence 46% Low Power: ~18 mn HH 34% Full Power: ~5 mn HH Revenue M
Slide 33: Widening Digital Presence: OTT Growth Opportunity
Widening Digital Presence OTT: Huge Growth opportunity In US, OTT’s are projected to be the fastest growing video distribution medium US internet connected device installed base, 2016 to 2026 Live & Interactive Apps Shop LC (US) OTT revenue trend (USD mn) $10.5 $7.5 $6.0 $5.9 $2.2 FY21 FY22 FY23 FY2
Slide 34: Being Resilient
Being Resilient 18.0% • Recovery in consumer demand persists 46.0% Revenue and EBITA % trends 16.0% 14.0% • Focused pricing and product mix helped 36.0% 11.1% 12.0% 10.0% 9.5% sustained gross margins at 63.5% 26.0% 8.0% 22.8% 8.1% 8.7% 8.7% 10.0% 8.0% 14.0% 14.9% 13.0% • Strategic investments on dig
Slide 35: Operational & Financial Highlights Q2 FY25
Q2 FY25 OPERATIONAL & FINANCIAL HIGHLIGHTS
Slide 36: Financial Highlights – Q2 FY25 Revenue breakup
Financial Highlights – Q2 FY25 Revenue breakup Revenue & Revenue Split (Rs. Crore) TV Revenue Digital Revenue B2B Revenue Total B2C Revenue 12.2% 12.3% 11.8% 750 294 669 456 46 406 36 263 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Note: B2B has been non-core and opportunis
Slide 37: Financial Highlights – Q2 FY25 Revenue breakup (Local Currency)
Financial Highlights – Q2 FY25 Revenue breakup Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) (USD million) (GBP million) 1.6% 15.0% 52.0 51.1 20.8 18.1 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 36
Slide 38: Retail Performance Trends – Q2 FY25
Retail Performance Trends – Q2 FY25 TV Sales Sales Volume ('000s) Average Selling Price US$ 13.3% 1,400 39.7 38.9 1,236 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Digital Sales Sales Volume ('000s) Average Selling Price US$ 4.8% 31.5 1,117 31.0 29.9 1,066 26.0 21.0 16.0 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25
Slide 39: Financials – Q2 FY25 Performance
Financials – Q2 FY25 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) 61.4% 63.5% 9.5% 8.7% 16.9% 3.0% 67 69 506 433 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 PAT (Rs. Cr) and PAT Margin (%) EPS (Rs.) 4.1% 3.5% 4.3% 1.8 1.7 29 28 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25
Slide 40: EBITDA Margin Walk
EBITDA Margin Walk % to Particulars Remarks revenue EBITDA Q2 FY24 9.5% Gross margin 2.1% Better pricing and efficient product mix Increased digital spend on acquired businesses of Mindful Souls and Digital marketing 2.3% Ideal World Broadcasting expense 1.0% Impact of Ideal World and new hous
Slide 41: Financial Performance Trends
FINANCIAL PERFORMANCE Trends
Slide 42: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 years CAGR: 11% 3,041 2,540 2,752 2,691 1,814 1,986 1,363 1,552 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 years CAGR: 9% 5 years CAGR: 18% TV Revenue B2B Revenue Digital
Slide 43: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 38.0 39.1 40.8 39.0 6,998 32.6 6,275 6,070 29.9 5,331 5,459 26.5 27.7 2,373 2,751 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Digital Sales Sales Volume ('000s) Ave
Slide 44: Financials – Financial Performance
Financials –Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,258 1,294 622 619 1,203 1,127 964 511 494 697 751 163 192 117 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Net Debt* (Rs. Cr) Net Assets^ (Rs. Cr) FY19 FY20 FY
Slide 45: Financial Performance – Trends & Ratios
Financial Performance – Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 268 324 230 270 181 176 203 211 126 90 86 26 (214) 11 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25* FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25* ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 46% 37% 31% 9% 10% 10% 19% 17% 14%
Slide 46: Annexures
ZZ VAIBHAV GLOBAL LIMITED ANNEXURES
Slide 47: Digital Commerce Markets
Digital Commerce Markets Industry Trends US US UK ▪ Boost in e-commerce driven 30.9% 15.4% 15.9% 27.8% 26.5% 26.6% 26.4% by higher consumer 14.0% 14.6% 14.5% confidence and convenience 11.0% 19.1% UK ▪ Slower growth in online sales attributed to customer skepticism 2019 2020 2021 2022 2023 H1'24 201
Slide 48: Sustainability Initiatives
Sustainability Initiatives ENERGY WATER Solar power capacity Solar Generated 17.8 Mn kWh units 1,100 KL 3 Rainwater Storage Tanks 3.23 mw since inception EV 184 two-wheelers & 4 four- wheelers for employees’ commute. Replaced 12 buses till date 6,100 KL Annual Rainwater Harvesting Capacity BMS Insta
Slide 49: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 93 million meals to underprivileged children through flagship One for One Program, ‘Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK ▪ Serving ~54k
Slide 50: Robust Corporate Governance and Awards & Accolades
Robust Corporate Governance Awards & Accolades India Risk LEED’s PLATINUM & Excellence in Management Award GOLD Certification Sustainability by Indo- from ICICI Lombard & American Chamber of H1 FY25 ~Rs. 50 crores CNBC-TV18 Commerce (IACC) 90% Dividend Payout (2nd interim dividend for FY24-25) ‘Net
Slide 51: Shareholding Pattern as on 30th September 2024
Shareholding Pattern as on 30th September 2024 Shareholding Pattern Holding Key Shareholders (in %) Nalanda India Fund Limited 9.3% 20.74% Promoter & Promoter 2.02% Group 0.74% Foreign Institutions (FPI, FII) Malabar India Fund Limited 6.8% & NRI Domestic Instititions (MF) Vijay Kedia 2.0% 57.30% In
Slide 52: Vaibhav Global Limited Contact
Company: Investor Relations Advisors: Vaibhav Global Limited Adfactors PR Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma Nitin.panwad@vglgroup.com Amit.Sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations Disha.shah@adfactorspr.com VAIBHAV GLOBAL LIMITED Prashant.saraswat@vglgr