Go Fashion (india) Limited · NSE:GOCOLORS
Go Fashion (india) — Q3 FY2023 Earnings Presentation
35 slides from Go Fashion (india)'s earnings presentation, Jan 25, 2023
Slide 1: Exchange filing letter for Investor Presentation Q3 FY23
January 25, 2023 BSE Limited National Stock Exchange of India Ltd. Scrip Code: 543401 Trading Symbol: GOCOLORS Dear Sir / Madam, Subject: Investor Presentation for Q3 FY 2023 – Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 With reference to the above captio
Slide 2: Investor Presentation January 2023
Go Fashion (India) Limited Investor Presentation January 2023
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Go Fashion (India) Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or
Slide 4: Q3 & 9M FY23 Highlights
GOCOLORS! Q3 & 9M FY23 Highlights
Slide 5: Strong Q3 FY23 Financials
Strong Q3 FY23 Financials Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 176.7 crores Rs. 104.2 crores Rs. 59.2 crores Rs. 24.3 crores 24% 21% 14% 3% Sales Mix Gross Profit Margins EBITDA Margins No. of EBO stores added -160 bps 2.5% during the quarter^ 2.5% 60.6% 59.0% 20.7% 33.5%
Slide 6: Strong 9M FY23 Financials
Strong 9M FY23 Financials Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 507.7 crores Rs. 303.1 crores Rs. 161.6 crores Rs. 68.0 crores 78% 79% 99% 192% Sales Mix Gross Profit Margins EBITDA Margins No. of EBO stores added 30 bps 2.6% during the Nine Months^ 3.1% 59.4% 59.7% 20.9%
Slide 7: Strong Balance Sheet
Strong Balance Sheet Significant Improvement in Working Capital Requirements Inventory Debtors Creditors 178 137 151 In Days 130 121 119 59 39 40 21 11 10 Dec’21 Sep-22# Dec’22 RoCE* RoE* Cash & Cash (Annualized Basis) (Annualized Basis) Equivalents*^ 19.8% 17.8% Rs. 118.2 Crs. * As on 31st December
Slide 8: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (in Rs. Crore)* Q3 FY23 Q3 FY22 Q-o-Q 9M FY23 9M FY22 Y-o-Y Total Revenue 176.7 142.0 24% 507.7 285.1 78% Cost of Materials Consumed 61.5 48.1 172.5 99.2 Subcontracting Charges 11.0 7.8 32.0 16.7 Gross Profit 104.2 86.1 21% 303.1 169.2 79% Gross Margin 59.0% 60.
Slide 9: #GoodToGo – Brand Campaign
#GoodToGo – Brand Campaign • Activated 53 mega & macro influencer across 8 cities • Reached 36 lakh unique audience via influencer marketing • The approach was to reach out to audience who have affinity to the brand & also to the audience who are currently in the consideration funnel of purchase • W
Slide 10: Company Overview
GO COLORS! Company Overview
Slide 11: We are a Direct to Consumer Brand
About Us We are a one stop destination for ladies' bottom wear, a daily essential wear category with no seasonality Among the largest Women Bottom Wear Extensive sourcing and manufacturing Offers Products in (WBW) brands in India with ~8% network of 81 suppliers and 49 job- market share in branded W
Slide 12: Well Diversified Product Portfolio
Well Diversified Product Portfolio Ethnic Wear Western Wear Fusion Wear Athleisure Churidar Salwar Leggings Ponte Pants Jeggings Leggings Patiala Silk-Pants Cropped Jegging Track Pants Palazzos Track Pants Kurti-Pants Dhoti Jeans Culottes Pants Joggers Cargo Pants Treggings Harem-Pants From ₹ 599 to
Slide 13: Well Diversified Product Portfolio
Well Diversified Product Portfolio Denims Lounge Wear Go Plus Girls Wear Jeggings Pants Lounge Pants Churidars Leggings Pants Joggers Denim Culottes Lounge Knit Pants Leggings Jeggings Shorts Jeans Capris Lounge Capris Jeggings Palazzos Harem- Pants Denim Palazzos Lounge Shorts Pants Palazzos From ₹
Slide 14: Standardized Store Designs and Layouts to Make Brand Readily Identifiable
Standardized Store Designs and Layouts to Make Brand “Go Colors” Readily Identifiable EBO Stores + Airport Stores + LFS Stores 13 Go Fashion (India) Limited
Slide 15: Key Differentiators
GO COLORS! Differentiators
Slide 16: Our Key Strengths
Our Key Strengths Multi-Channel, Pan-India Distribution Network with a Focus on EBOs, Enhancing Brand Visibility Among the Largest Women’s Bottom-Wear Brand in India with Well-Diversified & Differentiated Product Portfolio and First Mover Advantage Extensive Procurement Base with Highly Efficient an
Slide 17: Among the Largest Women's Bottom-Wear Brand with a Well-Diversified Product Portfolio
Among the Largest Women’s Bottom-Wear Brand with a Well-Diversified Product Portfolio Covering the entire spectrum of women’s requirements across age- % Branded Women’s Bottom Wear Market groups and body-types (FY20) Brand SKUs Ethnic Western Athleisure Fusion Denim 8% 728 P P P P P 9% Player A 800
Slide 18: Direct to Consumer Brand with an Extensive Distribution Network across India
Direct to Consumer Brand with an Extensive Distribution Network across India EBO 368 LFS Diversified presence across geographies 124 EBO Stores 803 262 North 604 As on 50 Dec-22 East 353 #EBO #LFS 168 West 514 Malls & Airports (190) 124 368 South 376 High Streets (414) 189 344 225 254 118 81 86 120
Slide 19: Continuous Increase of EBO presence PAN India
Continuous Increase of EBO presence PAN India Total Cities 218 333 448 449 503 604 EBOs 50 75 97 101 121 137 Present# 101 604 137 16 101 54 1 0 115 66 20 42 -12* 4 -41* 133 115 22 -18 130 25 218 50 -15 Focus on establishing additional EBOs across Tier 2 Plan to expand by 120 – 130 EBO’s and Tier 3 c
Slide 20: Enhancing Brand Visibility and Recall Value of Go Colors Brand
Enhancing Brand Visibility and Recall Value of ‘Go Colors’ Brand Prudent use of resources to undertake brand- building initiatives and gain visibility 3.51% Rs. 28.51 of Revenue 2.54% on every rupee of Advertisement Spent for 1.86% 1.82% 9M FY23 1.26% 2019 2020 2021 FY22 9MFY23 Store at high footfal
Slide 21: Strong Unit Economics Leading to an Efficient Operating Model
Strong Unit Economics Leading to an Efficient Operating Model Efficient Space Utilization offers one of the highest sales per Healthy Same Store Sales Growth (in %) square foot in the industry 20.0% Average Store Size (Sq. ft.) Average Selling Price* Present across 11.4% 10.0% 400 - 500 Rs. 724 137
Slide 22: Extensive Procurement Base with Highly Efficient and Technology-Driven Supply Chain Management
Extensive Procurement Base with Highly Efficient and Technology-Driven Supply Chain Management Outsourced Manufacturing Sourcing Team ➢ Sourcing team closely monitors suppliers and provides strict quality ➢ Manage an extensive sourcing network to support product assurance analysis development teams
Slide 23: In-House Expertise in Developing and Designing Products
In-House Expertise in Developing and Designing Products Forecasting • Concept development and trend forecasting to develop new styles and products • Participate in fairs or exhibitions in India or abroad to better understand trends • Address evolving market trends and customers’ preferences In-House
Slide 24: Management Team
Management Team Mr. Prakash Kumar Saraogi Mr. Gautam Saraogi Mr. R Mohan Managing Director Executive Director and CEO Chief Financial Officer • Promotor of Go Fashion (India) Limited • Chartered accountant by profession and has been • associated with our Company since 2019 Promotor of Go Fashion (In
Slide 25: Company Strategies
Company Strategies 1 Continue to Expand Retail Network with a Focus on EBOs 2 Grow Sales Through Online Channel Leverage Technology to Bring Cost Efficiency and 3 Enhance Customer Experience 4 Leverage Leadership Position in Women’s Bottom-Wear 24 Go Fashion (India) Limited
Slide 26: 1. Continue to Expand Retail Network with a Focus on EBOs
1. Continue to Expand Retail Network with a Focus on EBOs Growth Strategies Follow the COCO Model Focus on establishing Grow network in existing Add additional stores in Selectively expand to ensure better additional EBOs across geographies i.e., deepen the north and east presence across LFS operati
Slide 27: 2. Growth through Online Channel
2. Growth through Online Channel E-retail in India has witnessed rapid growth and is expected to reach ₹ 7.8 trillion by FY25 growing at 23% CAGR (1) COVID-19 induced a Growth in Higher discounts Increased internet Increased smart Convenient payment faster pace of through online India E-tailing pene
Slide 28: 3. Leverage Leadership Position
3. Leverage Leadership Position WBW market expected to grow at 12.4% CAGR reaching Branded women’s bottom-wear market expected to see continued high Rs. 243 Bn by FY25 growth in future (INR Cr) (INR Cr) 9.6% 24,315 +12.2% 8.3% 11,379 13,547 7.6% +12.4% 24,315 7,723 4,471 +11.9% 1,521 13,081 6,202 9,
Slide 29: 4. Leverage Technology
4. Leverage Technology Leverage Technology to Bring Cost Efficiency and Enhance Customer Experience Expand and upgrade warehouse to optimize inventory and supply management Strategically expand warehouse operations and Invest in IT infrastructure to improve implement new technologies to improve cust
Slide 30: Awards & Accolades
Awards & Accolades 2016 2019 2019 2022 ‘Images Retail Award’ Transforming India Retail Award ‘Sustaining Enterprise of the Year’ Most admired retailer of the year – Concept at the TIECON, Chennai Stores 29 Go Fashion (India) Limited
Slide 31: Financials
GO COLORS! Financials
Slide 32: Historical Profit & Loss Account Statement
Historical Profit & Loss Account Statement Particulars (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 Total Revenue 401.3 250.7 392.0 285.2 Cost of Materials Consumed 135.5 92.2 130.0 94.5 Subcontracting Charges 24.8 11.8 27.6 20.5 Gross Profit 241.1 146.7 234.5 170.3 Gross Margin 60.1% 58.5
Slide 33: Historical Balance Sheet Statement
Historical Balance Sheet Statement EQUITY AND LIABILITIES (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 ASSETS (in Rs. Crore) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-19 Equity Non Current Assets Property, plant and equipment 64.1 58.4 60.3 47.3 Share Capital 54.0 79.0 79.0 79.0 Capital work-in
Slide 34: Demonstrated Track Record of Strong Financial Performance
Demonstrated Track Record of Strong Financial Performance Robust, organic revenue growth… …with exceptional Gross margins … and tight operational control leading to (INR Crs.) high EBITDA margin (INR Crs.) (INR Crs.) 59.7% 59.8% 58.5% 60.1% 28.0% 32.3% 18.5% 29.7% +37% 392 401 285 +38% +58% 251 234
Slide 35: Thank You
THANK YOU Company: Go Fashion (India) Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L17291TN2010PLC077303 CIN: U74140MH2010PTC204285 Mr. R Mohan – CFO Mr. Deven Dhruva mohan@gocolors.com deven.dhruva@sgapl.net Tel: 044 4211 1777 Tel: +91 98333 73300