Khadim India Limited · NSE:KHADIM
Khadim India — Q1 FY20 Earnings Presentation
32 slides from Khadim India's earnings presentation, Aug 7, 2019
Slide 1: Intimation of Investor Meet and Investor Presentation
Khadirn's® August 07, 2019 The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code- 540775 Sy
Slide 2: Q1 FY20 Results Presentation
Q1 FY20 RESULTS PRESENTATION AUGUST 2019
Slide 3: Discussion Summary
BRITISH W LAZARD LAZARD DISCUSSION SUMMARY ▪ BUSINESS OVERVIEW ▪ BUSINESS STRATEGY SHARON CLEO SHARON & OUTLOOK ▪ Q1 FY20 RESULTS ▪ FINANCIAL & OPERATIONAL SUMMARY PRO PRO PRO ▪ MANAGEMENT TEAM & SHAREHOLDING PATTERN 2
Slide 4: Business Overview
BRITISH WALKERS LAZARD BUSINESS OVERVIEW 3
Slide 5: Quick Snapshot
QUICK SNAPSHOT 1 Leading Footwear Brand in India 2 Huge Market Growth Potential * • 2nd largest footwear retailer in India * • Domestic footwear market expected to grow • Largest presence in East India at 15% (FY16-20) • One of the top 3 players in South India • Branded footwear market expected grow
Slide 6: Two-Pronged Market Strategy of Retail & Distribution Models
TWO-PRONGED MARKET STRATEGY OF RETAIL & DISTRIBUTION MODELS Retail Business – Distribution Business – Reach 817 ‘Khadim’s’ exclusive branded outlets 568 distributors supplying to MBOs across India Middle & upper middle income consumers in metros Lower & middle income consumers in Tier I – III cities
Slide 7: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory 1 2 10 3 1 10 18 49 49 Brand Network Jun ‘19 Retail Stores – Tier wise 47 39 1 1 86 39 4 Retail Stores 817 Metros 21% 11 2 - COCO 211 17 Tier I 26 11 18 14 24 28 277 239 3 48% 1 - Franchises 606 Tier II 14% 9 6 44 2
Slide 8: Result Highlight
RESULT HIGHLIGHT Q1 FY20 Revenues Rs 2161 Mn Retail Distribution Others * • Rev Share – Rs 1201 m • Rev Share – Rs 598 m • Rev Share – Rs 362 m • GM – 45.8% • GM – 29.3% • EM – 11.2% • EM – 8.3% COCO Franchises • Rev Share – 55.8% • Rev Share – 44.2% Asset Light Model for Frontend Expansion and Scal
Slide 9: Q1 FY20 Results Update
SHARON CLEO Q1 FY20 RESULTS UPDATE 8
Slide 10: Q1 FY20 Results: Key Highlights
Q1 FY20 RESULTS: KEY HIGHLIGHTS Q1 FY20 YoY Analysis In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 39.8% 36.5% 8.8% 9.2% 3.9% 1.5% 2,161 1,896 200 166 74 13.9% 20% -55% 33 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Effective 1st April, 2019, the Company has adopted In
Slide 11: Q1 FY20 Results: Segment Analysis
Q1 FY20 RESULTS: SEGMENT ANALYSIS Q1 FY20 YoY ANALYSIS – REVENUE BREAKUP In Rs Mn 561 598 7% 1,220 1,201 -2% Q1 FY19 Q1 FY20 Retail Distribution Segment Share % * Q1 FY19 Q1 FY20 Retail 64.35% 55.56% Distribution 29.56% 27.68% Gross Margin % Q1 FY19 Q1 FY20 Retail 46.50% 45.79% Distribution 30.57% 2
Slide 12: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY20 Q1 FY19 YoY % Q4 FY19 QoQ % FY19 Revenue 2,160.7 1,896.3 13.9% 2,066.7 4.6% 7,991.8 COGS 1,371.4 1,141.1 20.2% 1,385.1 -1.0% 4,964.6 Gross Profit 789.3 755.2 4.5% 681.6 15.8% 3027.2 Gross Margin % 36.5% 39.8% -330 bps 33.0% 355 bps
Slide 13: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESS STRATEGY & OUTLOOK
Slide 14: Business Growth Strategy
BUSINESS GROWTH STRATEGY Retail Business Distribution Business • Expanding retail footprint in markets across • Focus on penetration in existing markets in South India, West India and in Uttar Pradesh Eastern and Southern India and capitalise in North India on retail brand recall and target markets
Slide 15: Positive Industry Outlook
POSITIVE INDUSTRY OUTLOOK Domestic footwear retail to grow at a faster pace compared to the overall retail industry Favourable macro and Overall retail market in US $ Bn Domestic footwear market at retail price in US $ Bn demographic tailwinds 1200 Population Growth 13.7 • Young demographics - 78% o
Slide 16: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 17: Financial Summary
FINANCIAL SUMMARY* In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 14.8% CAGR: 42.8% 9.8% 10.6% 10.1% 4.7% 5.0% 5.1% 37.1% 39.2% 37.9% 37.9% 7.1% 2.6% 32.1% 7,992 3.0% 757 306 379 6,106 7,489 645 252 212 5,345 524 570 -4.1% 4,602 137 -187 FY15 FY16 FY17 FY18 FY19 FY15
Slide 18: Financial Summary
FINANCIAL SUMMARY In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 15% 19% 22% 24% 26% 42% 47% 47% 46% 42% 48% 50% 52% 52% 57% 72% 75% 73% 66% 63% 58% 53% 53% 54% 58% 52% 50% 48% 48% 43% 13% 6% 5% 10% 11% FY15 FY16 FY17 FY18 FY19
Slide 19: Operational Summary
OPERATIONAL SUMMARY Number of Retail Stores Retail Stores – Region-wise Breakup 799 817 6% 6% 6% 7% 7% 753 673 612 9% 10% 10% 10% 10% 17% 18% 19% 19% 20% 570 595 606 464 511 69% 67% 66% 64% 63% 148 162 183 204 211 FY16 FY17 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 COCO Franchises Total East South
Slide 20: Annexure
ANNEXURE
Slide 21: Wide Product Range Across Various Categories & Price Points
WIDE PRODUCT RANGE ACROSS VARIOUS CATEGORIES & PRICE POINTS ‘Affordable Fashion’ brand catering to the entire family for all occasions - Men / Women / Kids - Menswear - Menswear - Menswear - Men & Women wear - Fashionable & casual - Formal shoes & sandals - Semi-formal & casual shoes / - Outdoor boo
Slide 22: Distinct Brand Positioning for Various Market Segments
DISTINCT BRAND POSITIONING FOR VARIOUS MARKET SEGMENTS Khadim’s brand presence and product range makes it capable to address ~85% of the total Indian footwear market potential Footwear Market Segmentation (MRP at retail stores in Rs) Distinct brand positioning to target customers % Share, Value Acro
Slide 23: Asset Light Model & Strong Design Capabilities
ASSET LIGHT MODEL & STRONG DESIGN CAPABILITIES Asset Light Model makes the business highly scalable, less capital-intensive and leads to higher operating leverage and increasing profitability Retail Business – Maximise Outsourcing Distribution – Maximise Capacity Utilisation Manufacturing • Retail b
Slide 24: Marketing Initiatives to Strengthen Brand Recall and Customer Connect
MARKETING INITIATIVES TO STRENGTHEN BRAND RECALL AND CUSTOMER CONNECT Key Marketing Triggers Celebrity Brand Ambassadors with a combined outreach of 14 million* followers on social media Celebrity Brand Ambassadors Season based new arrivals Scheme promotions, discount sales, consumer offers New stor
Slide 25: Growing Our Online Presence
GROWING OUR ONLINE PRESENCE Grow online presence through product innovations and Khadim’s products are now also available on various e- advertisements commerce portals – Company website – www.khadims.com 24
Slide 26: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Ishani Ray, CEO Rajeev Kumar Mishra, GM - Manufacturing • 25+ yrs of exp. in investor relations, finance, accounts, taxation and audit • 22 years of experience in in the manufacturing industry in footwear and rubber • Responsible for the finance, treasury, accounts and le
Slide 27: Promoter & Board of Directors
PROMOTER & BOARD OF DIRECTORS Siddhartha Roy Burman, Chairman & Managing Director • Associated with the Company since its incorporation. He has 34 years of experience in the footwear industry • Responsible for the overall strategic decision making and provides leadership to all operations Ritoban Ro
Slide 28: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – Jun-19 Key Institutional Investors % Holding IDFC MUTUAL FUND 5.8% Others, 3.9 UTI MF 5.2% MIRAE ASSET MUTUAL FUND 4.9% Institutions, Promoter & 33.3 SUNDARAM MUTUAL FUND 4.3% Promoter Group, 59.7 FRANKLIN INDIA FUND 3.2% ICICI PRUDENTIAL E-D FUND 2.3% HSBC AS
Slide 29: Key Milestones
KEY MILESTONES 1981 1993 1999 2002 2005 • Acquired and took over the • Commenced retail • Commenced retail • Commenced • Accredited with business of M/s S.N. business through operations in South manufacturing ISO 9001:2000 Industries as a going concern COOs for footwear India through with operations
Slide 30: Awards, Accreditations and Accolades
AWARDS, ACCREDITATIONS AND ACCOLADES Khadim’s was ranked 7th amongst the Top 100 Franchises in India in 2017 Most Preferred Footwear Brand, 2015 Most Admired Retailer Of The Year (East), 2014 Most Attractive Footwear Retail Brand, 2013 Mirchi Business Excellence Bengal’s Best Footwear, Most Purchase
Slide 31: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Khadim India Limited (“Khadim” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial c
Slide 32: Ishani Ray
Ishani Ray CEO Contact No: +91 33 40090501 Email: ishani.ray@khadims.com Indrajit Chowdhury CFO Contact No: +91 33 40090505 Email - indrajit.chowdhury@khadims.com Nachiket Kale IR Consultant DICKENSON Contact No: + 9199209 40808 Email - nachiket.kale@dickensonworld.com