Aditya Vision Ltd. · NSE:AVL
Aditya Vision — Q1 FY2024 Earnings Presentation
37 slides from Aditya Vision's earnings presentation, Jul 21, 2023
Slide 1: Aditya Vision Limited - Submission of Investor Presentation
R R R Aditya Vision Limited R R R R R Date- July 21, 2023 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
Slide 2: North & East India's Largest Consumer Electronics Retailer
North & East India’s Largest Consumer Electronics Retailer Investor Presentation July 2023
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 5-9 Business Overview 11-14 Q1FY24 Highlights 16-25 Business Model & Financial Overview 27-28 Industry Overview 30-35 Appendix Q1FY24 Earnings Presentation 3
Slide 5: Business Overview
Business Overview Investor Presentation July 2023 4
Slide 6: Aditya Vision at a Glance
Aditya Vision at a Glance ✓ Dominant player in Bihar with 50%+ market share; Made inroads in Jharkhand and Uttar Patna Headquarters Pradesh in FY22 and FY23 respectively ✓ Diversified product offerings comprising 10,000+ products ranging from digital gadgets to home appliances 117 Showrooms Till Dat
Slide 7: Short History, Strong Performance
Short History, Strong Performance Patna, Bihar 117 10,000+ Our headquarters and base of operations Total Outlets in Bihar + Jharkhand+ UP Products sold at our Outlets ------------------------------------------------- ------------------------------------------- ----------------------------------- 50%
Slide 8: Our Legacy
Our Legacy Started expansion in Initiated expansion Uttar Pradesh with 8 Aditya Vision opened its first outside Patna into other Scaled up to 75 new stores outlet at a prominent location district headquarters of showrooms in almost all 117 stores as on in Patna Bihar districts of Bihar 30/6/2023 199
Slide 9: Our Driving Principles
Our 5 Driving Principles Customer-centric Large Supplier base Scaling up business to Prudent Capital Technology driven approach based on (Brands) selling pass on better prices to Allocation with Strong business backed by providing Best Range, their products at customers and create a Corporate Govern
Slide 10: Strong Growth Story: 12x in 10 Years
Strong Growth Story:12x in 10 Years Revenue (Rs Cr) Gross Margin % PAT Margin % 1322 15.96% 15.80% 4.85% 12.30% 899 3.92% 10.70% 797 748 8.60% 10.10% 2.73% 564 7.10% 6.57% 6.60% 444 362 6.44% 6.59% 240 1.76% 1.02% 179 125 0.58% 0.63% 100 0.49% 0.64% 0.63% 0.47% 2013 2014 2015 2016 2017 2018 2019 202
Slide 11: Expanding into under-penetrated markets of Hindi Heartland
Expanding into under-penetrated markets of Hindi Heartland BIHAR 91 STORES (37 Districts) JHARKHAND 18 STORES (15 Districts) Present States UTTAR PRADESH 8 STORES (5 Districts) Zero Store Closure since Inception Q1FY24 Earnings Presentation 10
Slide 12: Q1FY24 Highlights
Q1FY24 Highlights Investor Presentation July 2023 11
Slide 13: Q1FY24 Business Highlights
Q1FY24 Business Highlights Financial Performance Retail Footprint Growth Drivers • Revenue from Operations • Total store count was 117 and 12 • Aggressive expansion in UP as it is increased by 46% over the stores were opened in Q1FY24. culturally, economically, and previous year • 5 stores were open
Slide 14: Quarterly Financial Performance
Quarterly Financial Performance Particulars (Rs in Cr) Q1FY24 Q4FY23 Q1FY23 YoY% FY23 FY22 YoY% Revenue from Operations 641.23 306 438.51 46% 1322 899 47% Total Expenditure 577.93 278 393.49 47% 1189 816 46% EBITDA 63.30 28 45.02 41% 133 83 60% EBITDA Margin % 10% 9% 10% - 10% 9% 100 bps Other Incom
Slide 15: Store Growth & SSG
Store Growth & SSG Store Opening CAGR – 2017-2023 – 33% Same Store Sales Growth (%) 150 38 117 105 33 34 79 64 38 43 28 17 19 14.5 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Total no. of Stores -13 *As on 19 May 2023 **VAT removal from revenue w.e.f. FY19. GST netted off from Revenue w.e.f FY19
Slide 16: Business Model & Financial Overview
Business Model & Financial Overview Investor Presentation July 2023 15
Slide 17: Unique Business Model
Unique Business Model OEM Supply Customer Service ▪ 80% Direct OEM Supply leading ▪ Aditya Seva - Helpline for customer to higher margins service. ▪ 20% Distributors/C&F Agents ▪ One-stop solution for after-sales ▪ Long-term relationships with services. 100+ brands OEM Supply Customer ▪ Aditya Surak
Slide 18: Store Unit Economics At A Glance
Store Unit Economics At A Glance Rs 50 lacs 117 (Till date) 12-15% Average Capex per Store Outlets in Bihar + Jharkhand + UP Gross Margin Range --------------------------------------------------- ----------------------------------------------- ----------------------------------------- Rs 2.0 cr <6 m
Slide 19: Common Store Economics
Common Store Economics (% of Sales) FY17 FY18 FY19 FY20 FY21 FY22 FY23 Gross Margin (%) 7% 9% 10% 11% 12% 16% 16% Gross Margin has increased with scale Employee Cost 2% 3% 3% 3% 3% 3% 3% Low store-level employee cost Rent* 1% 1% 1% 1% 3% 3% 2% Average rent of Rs 2 lacs p.m/store. Advertisement
Slide 20: Conservative Financial Management
Conservative Financial Management Working Capital Days* 106 98 87 83 66 54 41 45 24 17 FY19 FY20 FY21 FY22 FY23 *Receivable Days are less than 0 since the Company has negligible Trade Receivables Inventory Days Payables Days **Payables & Inventory Days is calculated based on Purchases and Cost of Go
Slide 21: Operational Performance
Operational Performance Product Share (%) FY22 FY23 71% 69% 17% 19% 12% 12% Home Appliances & Entertainment Solutions Digital Gadgets Others Retail Footprint (Sq ft in 000) Bill Cuts (000 in Nos.) Average Selling Price (Rs.)* 617 430 20,173 21,156 417 429 18,813 320 16,529 376 15,251 250 318 200 170
Slide 22: Financial Highlights
Financial Highlights EBITDA (Rs. Crs.) EBITDA Margin(%) PAT (Rs. Crs.) 64 133 10.1% 9.2% 83 7.1% 35 53 20 3.0% 3.2% 14 25 17 6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PAT Margin (%) ROCE (%)* ROE (%) 60% 5% 48% 55% 4% 46% 43% 33% 3% 29% 28% 24% 25% 2% 1% FY19 FY20
Slide 23: Revenue Seasonality of the Business (5 yr avg.)
Revenue Seasonality of the Business (5 yr avg.) Quarterly Share of Revenue(%) Q1 30% Peak Summer Season + Marriage Season + Strong Demand for Cooling Products + Major Stocking up prior to this quarter Q2 18% Weaker Quarter owing to Monsoon + Shraadh months Q3 28% Festive Season with attractive Brand
Slide 24: Roadmap To FY25
Roadmap To FY25 Focus on scaling up mid and premium-priced categories thereby improving per-store economics. 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” Reinvest our Cash
Slide 25: Annual Income Statement
Annual Income Statement FY21 FY22 FY23 Particulars (Rs in Cr) FY20 (Post IndAS) (Post IndAS) (Post IndAS) Revenue from Operations 797 748 899 1322 Total Expenditure 772 695 816 1189 EBITDA 25 53 83 133 EBITDA Margin % 3% 7% 9% 10% Other Income 9 4 1 3 Depreciation 2 13 16 20 Profit Before Interest &
Slide 26: Annual Balance Sheet
Annual Balance Sheet Particulars (Rs in Cr) 31 March 2023 31 March 2022 Particulars (Rs in Cr) 31 March 2023 31 March 2022 Equity and Liabilities Assets Equity Non-Current Asset (a) Equity Share Capital 12 12 Property, Plant and Equipment 56 39 (b) Other Equity 124 67 Capital Work in Progress 8 Tota
Slide 27: Industry Overview
Industry Overview Investor Presentation July 2023 26
Slide 28: Industry Outlook – Impetus for Growth
Industry Outlook – Impetus for Growth Market Penetration Annual GDP Growth Rate Refrigerators 6.8% 38% 10% 13.8% Households in Households in Households in INDIA own BIHAR own JHARKHAND own refrigerators refrigerators refrigerators 4.0% 3.0% 2.6% 2.1% Air-conditioners/Coolers 1.8% 1.1% 24% 5.6% 7.6%
Slide 29: Market Penetration & Opportunity
Market Penetration & Opportunity Q1FY24 Earnings Presentation Source: www.statsofindia.in 28
Slide 30: Appendix
Appendix Investor Presentation July 2023 29
Slide 31: Our Trade Partners
Our Trade Partners Q1FY24 Earnings Presentation 30
Slide 32: Our Consumer Finance Partners
Our Consumer Finance Partners ~35% Sales Financed Q1FY24 Earnings Presentation 31
Slide 33: Board of Directors
Board of Directors Yashovardhan Sinha Nishant Prabhakar Promoter, Chairman & Managing Director Whole Time Director ▪ Promoter, Chairman, and Managing Director ▪ Promoter and Whole-time Director ▪ Has a wealth of experience in Consumer Electronics Retail and Banking. ▪ 18+ years of experience in the
Slide 34: Independent Directors
Independent Directors Ravinder Zutshi Nusrat Syed Hassan Independent Director Independent Director ▪ 45+ years of experience in the Indian Consumer Electronics Industry ▪ Currently Managing Director at Dentons Link Legal, leading international law firm ▪ Superannuated after working for 19 years with
Slide 35: In-Store Photo Gallery
In-Store Photo Gallery Q1FY24 Earnings Presentation 34
Slide 36: Awards & Recognition
Awards & Recognition Bajaj Most Daikin – Daikin – Daikin – AISEN No.1 Bajaj Highest Carrier Carrier Dell –Best HAIER Pref. Partner – BSE Listing Highest RA Highest RA Outstanding Hitachi – Best Cooler Sales Growth for year Appreciation of Superstar RLFR Outstanding 2021-22 2016 Sales'18 Sales'19 Sal
Slide 37: 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: Tanya Verma – Manager, IR Tel: +91-972-7030985 Email: tanya@goindiaadvisors.com Sheetal