Khadim India Limited · NSE:KHADIM
Khadim India — Investor Presentation (March 2022)
44 slides from Khadim India's investor presentation, March 2022
Slide 1: Intimation of Investor Meet and Investor Presentation
March22,2022 KHADIM K The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of lndia Limited P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400 00'l Bandra (East), Mumbai - 400 051 Scrip Code - 540775 Symbo
Slide 2: Corporate Presentation - Khadim India Limited March 2022
CORPORATE PRESENTATION KHADIM INDIA LIMITED MARCH 2022 www.khadims.com
Slide 3: 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
Slide 4: Discussion Summary
DISCUSSION SUMMARY BUSINESS OVERVIEW FINANCIAL PERFORMANCE BUSINESS MODEL & STRATEGIC INITIAITIVES NEW MARKETING INITIATIVES & FESTIVE CAMPAIGNS EMPLOYEE WALFARE, CSR & COVID SAFETY MEASURES
Slide 5: Business Overview
BUSINESS OVERVIEW
Slide 6: Khadim – India & Bharat
“KHADIM – India & Bharat” K hadi m as a brand very well fits in the both the parts of the Country. O n one side it offers p remium yet affordable range of products across its retail stores in the Indian KHADIM metros with its top retails sub-brands like British Walker, Lazard, Cleo, Pro etc. and on
Slide 7: 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 Across all price se
Slide 8: Two-pronged Market Strategy and Asset Light Model for Growth
1. Two-pronged Market Strategy Two distinct business models – Retail & Distribution - Each segment has its own customer base , product range and sales channels. ‘Affordable Fashion’ for the entire family for every occasion Retail Distribution An all-encompassing reach in the footwear market with foc
Slide 9: Leading Footwear Brand, Extensive Reach, Strong Design Capabilities
3. Leading Footwear Brand in India 4. Extensive Reach & Presence 5. Strong Design Capabilities • 2nd largest footwear retailer in India • Retail presence across 23 states & 1 • Over 4 decades of presence in the industry union territory and continuous survey across global markets • Largest presence i
Slide 10: Business Model
XK KHADIM BUSINESS MODEL
Slide 11: Business Model
Business Model TWO-PRONGED STRATEGY RETAIL BUSINESS DISTRIBUTION BUSINESS 768 ‘Khadim’s exclusive branded outlets 600+ distributors supplying to MBOs across India Reach Middle & upper middle income consumers in metros (incl. mini metros), Tier I – III cities who Lower- & middle-income consumers in T
Slide 12: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory Retail Stores Distributors Retail Stores 1 Distributors 3 2 5 1 12 1 2 1 8 19 51 44 40 47 1 2 Brand Network Dec ‘21 Retail Stores – Tier wise 89 43 4 12 1 Retail Stores 768 25 11 25 29 14 Metros 19% 14 27 248 231 3
Slide 13: Retail
RETAIL ‘Affordable Fashion’ brand catering to the entire family for all occasions MEN / WOMEN / KIDS Fashionable & casual footwear for value conscious customers WIDE PRODUCT RANGE ACROSS Menswear Formal shoes & Menswear Semi-formal Men & Women wear Sports / activity VARIOUS sandals using premium qua
Slide 14: Distribution Business Product Range
“In the Distribution Business too, like retail, we wish to be a brand for the entire family for all occasions” Basic Premium Hawaai Hawai and Fabrication Formal sandal Chappals Chappals and shoes Footwear for Kids Athleisure sandal DIP & PU and shoes Footwear PVC Footwear
Slide 15: Affordable Men's Fashion – One Stop Solution
‘Affordable Men’s Fashion’ – ONE STOP SOLUTION FORMAL SHOE SLIP ONS SANDALS LOAFER SNEAKER BOOTS FLIP FLOPS
Slide 16: Affordable Women's Fashion – One Stop Solution
‘Affordable Women’s Fashion’ – ONE STOP SOLUTION SLIP ONS SANDALS SNEAKER CASUAL SHOE FLIP FLOPS
Slide 17: Business Strategy
BUSINESS STRATEGY
Slide 18: Pillars of Growth
PILLARS OF GROWTH Partners Process 03 04 “Khadim Parivaar” is the Aggressively started using a data underlying emotion that binds our driven approach for most decisions dealers and distributor. Ensuring that our Introduced a stock is management partners are happy makes it a system called Theory of C
Slide 19: Growth Strategy – Retail Business
Growth Strategy RETAIL BUSINESS Expand Store Network pan-India with focus on Premiumisation, Asset Light Model & optimum capacity utilisation ▪ Intend to further penetrate in the Eastern, Southern & Central India markets and expand retail footprint in markets across West India and North India. ▪ Pla
Slide 20: Growth Strategy – Distribution Business
Growth Strategy DISTRIBUTION BUSINESS ▪ Distribution business compliments retail business and enables a deeper market penetration for our products. ▪ The focus is on penetration in the existing markets in Eastern, Central and Southern India by capitalizing on the retail brand recall and target on de
Slide 21: Strategic Initiatives & Outlook
STRATEGIC INITIATIVES & OUTLOOK E-Commerce Omni-Channel • Works like a balanced bridge between Retail and E-Commerce ▪ Experienced higher contribution to sales owing more focused approach • Helps increase in-store conversion to the business and service ecommerce orders ▪ Listing across various porta
Slide 22: Financial Performance
FINANCIAL PERFORMANCE
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS CONSECUTIVE YOY ROBUST TURNAROUND ENCOURAGING REDUCED INVENTORY GROWTH FOR LAST 5 IN BUSINESS RECOVERY POST COVID AND DEBTOR DUES QUARTERS FOR DISTRIBUTION
Slide 24: Financials Highlights Contd.
FINANCIALS HIGHLIGHTS CONTD. OPENED 54 NEW PREMIUMISATION OF ACHIEVED HIGHEST RETAIL STORES TAKING HEALTHY OPERATIONAL PRODUCTS DRIVING EVER GROSS MARGIN THE TOTAL RETAIL AND NET PROFIT IN HIGHER ASP IN Q3FY22 PRESENCE TO 768 Q2FY22 AND Q3FY22 STORES
Slide 25: Q3 & 9M FY22 Results Highlights
Q3 & 9M FY22 RESULTS HIGHLIGHTS Q3 FY22 YoY YoY 9M FY22 Revenue +6% Revenue +19% Rs. 1,850 mn Rs. 4,349 mn EBITDA EBITDA Turned around +43% from a loss of Rs 107 mn Rs. 216 mn Rs. 349 mn Margin at 11.7% Margin at 8% PAT +85% PAT Turned around from a loss of Rs 449 mn Rs. 82 mn Rs. 38 mn Margin at 4.
Slide 26: Q3 & 9M FY22 Results: Segment Analysis
Q3 & 9M FY22 RESULTS: SEGMENT ANALYSIS Q3 FY22 YoY ANALYSIS – REVENUE* BREAKUP 9M FY22 YoY ANALYSIS – REVENUE* BREAKUP 14% 14% 1,866.4 1,642.2 7% 30% 2,602.6 1,093.9 1,166.7 1,999.5 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Retail Distribution Retail Distribution Segment Share % * Q3 FY21 Q3 FY22 Segment Shar
Slide 27: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY22 Q3 FY21 YoY % Q2 FY22 QoQ % 9M FY22 9M FY21 YoY % FY21 Revenue 1,850.4 1,740.8 6% 1,616.5 14% 4,349.2 3,562.3 22% 6,261.8 Cost of materials 555.0 441.9 516.4 1,452.0 986.8 1,416.0 Changes in inventories 597.3 655.5 499.0 1,286.3 1,3
Slide 28: Profit & Loss Statement: Recent Track Record
PROFIT & LOSS STATEMENT: RECENT TRACK RECORD PROFIT & LOSS STATEMENT Particulars (In Rs Mn) 9M FY22 FY21 FY20 Revenue 4,349.2 6,261.8 7,718.7 COGS 2,738.3 4,457.8 4,912.2 Gross Profit 1,610.9 1,804.0 2,806.5 Gross Margin % 37.0% 28.8% 36.4% Employee Expenses 420.3 608.1 732.7 Other Expenses 841.3 1,
Slide 29: Quick Snapshot
QUICK SNAPSHOT In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 10.6% 10.1% 5.0% 5.1% 39.2% 37.9% 37.9% 36.4% 7.1% 2.6% 28.8% 757 4.0% 379 7,489 7,992 7,719 306 6,106 645 570 0.6% 212 6,262 -4.0% -5.3% 305 35 -312 -329 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY
Slide 30: Revenues – Segment Wise
In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 22% 24% 26% 27% 34% 42% 39% 41% 47% 46% 52% 52% 57% 57% 60% 73% 66% 63% 61% 46% 53% 54% 58% 61% 59% 48% 48% 43% 43% 40% 11% 12% 20% 5% 10% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 F
Slide 31: Marketing Initiatives
MARKETING INITIATIVES
Slide 32: Hyper-Local Activations
HYPER-LOCAL ACTIVATIONS “Walking the extra-mile to deliver a superior customer experience" Near Me A Weekly residential touch points to impart services for those who are unable to visit stores. Hot Spots Portable Kiosk with Mask & Shoe Sanitizers. On the Go A Shoe Store on wheels designed to provide
Slide 33: Social Media Presence
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Slide 34: Media Coverage
z4m Khadim evokes the feeling of love with its shoes MEDIA COVERAGE ENT n TO OPEN INSTANT FoviyaMuual DEMATACCOUNT Fund investments at Khadim Has Registered 190 Percent Yo By wet cto: Growth in PBT for QSFY22 via hppes ne the story unfolds i what th Business Standard Khadim has registered 190 per ce
Slide 35: Employee Welfare
EMPLOYEE WELFARE
Slide 36: With You In Every Step
ZK KHADIM \ \ / With You In Every Step Demise of an Employee 4, SBI Term Insurance We are providing life insurance to our fellow employees that financially covers for untimely death due to the pandemic or any other reason, subject toa minimum coverage of %2,50,000 and a maximum coverage of %25,00,00
Slide 37: Vaccination Drive
VACCINATION DRIVE K I got my Covid-19 Vaccine ee i) id-19 ine XK i got my Covid-19 vace! le Igot my Covid-19 Vaccine Z m3 b Ne #KhadimvVaccination #BeatCovidlg #khadimvaccination | #khadimVaccination #BeatCovidl9 #BeatCoviig
Slide 38: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 39: CSR Activities During COVID-19
Maintenance of Park & Garden in Medical facilities provided by Help-Age India under collaboration with South Dum Dum Municipality, CSR activities of the Company during COVID-19 Pandemic Kolkata
Slide 40: Promoter, Board of Directors & Management Team
PROMOTER, BOARD OF DIRECTORS & MANAGEMENT TEAM www.khadims.com
Slide 41: 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 Dr Indra Nath Chatterjee Alok Chauthmal C
Slide 42: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Namrata Chotrani Indrajit Chowdhury CEO CFO • She was associated with KPMG & Fairwinds Asset • 20+ yrs of experience in finance& accounts, taxation Managers Limited (since 2012) and has a total and strategic planning experience of over nine years in tax, private equity •
Slide 43: Key Milestones
KEY MILESTONES • Acquired and took over • Commenced retail • Accredited with ISO • Investment by • Expanded retail • Listed on NSE & the business of M/s S.N. operations in South 9001:2000 FairwindsTrustees business to include BSE with an IPO of Industries as a going India through with certification
Slide 44: Contact Details
NAMRATA CHOTRANI - CEO Contact No : +91 33 40090501 Email - namrata.chotrani@khadims.com Rajesh Agrawal / Nachiket Kale INDRAJIT CHOWDHURY - CFO +91 99674 91495/ +91 9920940808 Contact No : + 91 33 40090505 Rajesh.Agrawal@linkintime.co.in Email - indrajit.chowdhury@khadims.com nachiket.kale@linkinti