Electronics Mart India Limited · NSE:EMIL
Electronics Mart India — Q3 FY23 Earnings Presentation
33 slides from Electronics Mart India's earnings presentation, February 2023
Slide 1: Investor Presentation February 2023
Investor Presentation Februar y 2023
Slide 2: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Electronics Mart India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 3: About Us
ABOUT US Largest Player in the Southern region in revenue terms with dominance in Telangana and Andhra MBOs P Pradesh and the 4 th largest consumer durables and electronics retailer in India 109 EBOs 13 P Diversified product offerings from 70+ brands comprising of more than 6,000 SKU across product
Slide 4: Our Journey
OUR JOURNEY 2022 2021 2020 2019 2018 2017 2014 o IPO Listed at BSE /NSE 1980 o Raised INR 500 crores Op eration al store cou n t reach ed : 99 for fu n d in g in cremen tal o Crossed Rs. 3,000 workin g cap ital stores (88 MBOs + crores in Net Sales req u iremen ts , for o E xp an d ed 11 E BOs) o Aw
Slide 5: Largest Electronics Goods Retailer in South India
LARGEST ELECTRONICS GOODS RETAILER IN SOUTH INDIA We are the Largest player in the Southern region in revenue terms with dominance in Telangana and Andhra Pradesh AND 4 th Largest Consumer Durables and Electronics retailer in India FY22 Revenues (Rs. Bn.)* 1,694.0 South Based Chains 82.1 53.3 43.5 1
Slide 6: Cluster Based Distribution Network
CLUSTER BASED DISTRIBUTION NETWORK Deep penetration in the states of Andhra Pradesh & Telangana with a growing presence in NCR Online Presence MBO Brands (# Stores) Cities States Retail Stores NCR 38 4 122 89 MBO : 12 Cities : 2 109 MBO; 13 EBO Retail Area Central Warehouses 12 1.19 mn. sq. ft. 9 4
Slide 7: Diversified Product Profile Comprising of 6,000+ SKUs
DIVERSIFIED PRODUCT PROFILE COMPRISING OF 6,000+ SKUS 1,395 1,388 Fastest growing segment with rising 1,018 1,031 contribution to the overall revenue pie Mobiles from 29% (FY19) to 34% in 9M FY22 Phones, Fitness Tracker Revenue Split (Q3 FY23) & Tablets Have relationships with the large brands in th
Slide 8: Rapid Store Expansion
RAPID STORE EXPANSION Stores 71 +31.0% 93 +10.8% 103 +8.7% 122 Retail ‘000s sq. ft 765 +23.0% 940 +10.7% 1,041 +8.0% 1,194 122 19 10 22 59 12 Opened 12 22 11 19 Closed - - 1(1) - FY19 FY20 FY21 FY22 FY23 additions 9M FY23 Particulars FY20 FY21 FY22 9MFY23 Store Count 71 93 103 122 MBOs 63 82 91 109
Slide 9: Our Retail Outlets
OUR RETAIL OUTLETS ELECTRONICS
Slide 10: Our Specialised Retail Stores
OUR SPECIALISED RETAIL STORES 10
Slide 11: Strategically Located Logistics and Warehousing Facilities
STRATEGICALLY LOCATED LOGISTICS AND WAREHOUSING FACILITIES 9 large centrally located warehousing facilities which are backed by individual storage areas at store level of varying sizes to cater to individual stores or a group of st ores Efficient Inventory Management Robust Information Technology Sy
Slide 12: Strong Growth in Organised Brick & Mortar Retail
STRONG GROWTH IN ORGANISED BRICK & MORTAR RETAIL Retail Industry Market Size Expected to Grow at Organised Retail Penetration also Organised Brick & Mortar (B&M) Growing Faster 14% CAGR Expected to Grow CAGR +14% 103 13% CAGR +5% CAGR +14% 7908 CAGR +6% 9% 5680 62 66 4627 57 4028 43 3149 FY 16 FY 20
Slide 13: Continued Growth Momentum in Consumer Durables Across Categories
CONTINUED GROWTH MOMENTUM IN CONSUMER DURABLES ACROSS CATEGORIES Consumer Durable Industry Stated to Grow at India lags global peers in consumer durables penetration 13-15% ahead % of households 4.6 +14% Colour Televisions 50% 98 - 100% 96 - 98% 96 - 98% 98 - 100% 96 - 98% 95 - 97% Refrigerator 40%
Slide 14: Board of Directors
BOARD OF DIRECTORS Pavan Kumar Bajaj Karan Bajaj Astha Bajaj Chairman & Managing Director Chief Executive Officer & WTD Executive Director & WTD • 40+ years experience in the retail • 10+ years experience in the retail • 4+ years experience in business management business management business managem
Slide 15: Senior Management Team
SENIOR MANAGEMENT TEAM Premchand Devarakonda Giridhar Rao Chilamkurthi Gorantla Suma Reddy Chief Financial Officer Vice-President - Sales Head – E-commerce • Qualified Chartered Accountant and • Hold s Master’s d egree in Bu sin ess • Hold s Master’s d egree in Bu sin ess h old s Bach elor’s d egree
Slide 16: Awards & Accolades
AWARDS & ACCOLADES Certificate of Appreciation For Best Electronics Retail Chain Best Business Performance Q1 exemplary sales CY22 CY22 Contribution CY22 RADIO CITY SAMSUNG SAMSUNG 16
Slide 17: Key Growth Strategies
KEY GROWTH STRATEGIES • Deepen store network in existing clusters and increase market share in existing markets, Follow a peripheral and Expand reach across concentric expansion approach select geographies and • Open 26 MBOs in NCR, 22 MBOs and 10 EBOs in Andhra Pradesh & Telangana . Adopt a methodi
Slide 18: Key Growth Strategies
KEY GROWTH STRATEGIES • Right mix of product assortments at competitive pricing: Maintaining optimal customer service standards and introduce new products Enhancing sales • Leveraging consumer finance to provide convenience & enhance purchasing ability: Make our products accessible to wider customer
Slide 19: Strong 9M FY23 Performance
STRONG 9M FY23 PERFORMANCE Revenue from Operations EBITDA Profit Before Tax Profit After Tax Rs. 4,117.9 crores Rs. 245.2 crores Rs. 117.1 crores Rs. 86.7 crores 32% 21% 27% 26% Sales mix Store Ownership Store Count Retail Store Area 8 12 13 15% 1.19 Mn Sq. Ft. 37% Same Store Sales Growth 48% 102 10
Slide 20: Q3 & 9M FY23 Financial Highlights
Q3 & 9M FY23 FINANCIAL HIGHLIGHTS Revenue from Sale of Electronic & Total Revenues (Rs. Crs.) Same Store Sales Growth (SSSG) Consumer Durables +17% +32% Online Wholesale Retail 1,482 4,118 Q3 FY23 9M FY23 1,265 1% 1% 2% 1% 3,119 1% 0% 1% 1% 98% 99% 97% 98% 10.5% 23.5% Q3 FY22 Q3 FY23 9M FY22 9M FY23
Slide 21: Q3 & 9M FY23 Financial Highlights
Q3 & 9M FY23 FINANCIAL HIGHLIGHTS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) -5% +21% +26% -21% 77 73 245 6.1% 6.5% 28 87 6.0% 203 4.9% 22 69 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q3 FY23 9M FY22 9M FY23 PAT Margins RoCE* RoE* 2.2% 2.2% 2.1% 18.9% 17.4%
Slide 22: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) Q3 FY23 Q3 FY22 YoY 9M FY23 9M FY22 YoY Revenue from Operations 1,481.7 1,265.3 17% 4,117.9 3,118.7 32% Purchases of stock in trade 1,093.1 992.8 3,470.9 2,666.9 • On account of Changes in Inventory 196.1 104.3 90.1 25.9 investments made to Gro
Slide 23: Historical Highlights
Electronics Mart India Limited HISTORICAL HIGHLIGHTS
Slide 24: Operating Indicators
OPERATING INDICATORS Top 5 Brands (Revenues) Top 5 Brands (% of Revenues) Store Ownership (#) Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Others POPL Owned Leased 4,062 64.8% 61.5% 64.0% 122 3,799 59.4% 103 8 668 93 12 3,029 596 2,809 882 71 6 7 7 555 544 895 8 322 5 740 272 396 8 740 355 264 228 0 243
Slide 25: Financial Indicators
FINANCIAL INDICATORS Sale of Products Retail dominates the Revenues H2 H1 Online Wholesale Retail 2% 1% 2% 1% 2% 1% 1% 1% 57% 36% 47% 63% 97% 97% 97% 98% 64% 53% 43% 37% FY20 FY21 FY22 9M FY23 FY20 FY21 FY22 9M FY23 Summer Season Revenue (April - June) Festive Season Revenue (Sept - Nov) Same Store
Slide 26: Financial Indicators
FINANCIAL INDICATORS EBITDA (Rs. Crs.) EBITDA Margins Profit After Tax (PAT) 292 7.2% 104 6.4% 6.7% 245 6.0% 87 228 82 204 59 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 PAT Margins RoCE RoE 2.6% 20.3% 18.8% 2.4% 18.9% 17.4% 2.1% 1.8% 14.4% 12.7%* 11.9% 9.8%* FY20 FY21 FY22 9MF
Slide 27: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital* Inventory Days Recievable Days Creditor Days Working 63 days 73 days 66 days 49 days Capital Days 63 60 54 40 10 11 9 9 1 1 2 0 Mar-20 Mar-21 Mar-22 Dec-22 Cash Flow from Operations (Rs. Crs.) Debt to Equity Ratio Net Debt to EBITDA (excl. Working Capital Adj.)
Slide 28: Historical Profit and Loss Statement
HISTORICAL PROFIT AND LOSS STATEMENT Profit and Loss (in Rs. Crs.) 9M FY23 FY22 FY21 FY20 Revenue from Operations 4,117.9 4,349.3 3,201.9 3,172.5 Purchases of stock in trade 3,470.9 3,887.8 2,846.9 2,776.2 Changes in Inventory 90.1 -132.5 -79.6 -74.0 Gross Profit 557.0 593.9 434.6 470.3 Gross Profit
Slide 29: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (in Rs. Crs.) Sep-22 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in Rs. Crs.) Sep-22 Mar-22 Mar-21 Mar-20 Non - Current Assets 1,122.7 875.4 720.2 625.9 Total Equity 661.6 596.5 491.9 433.1 Property Plant & Equipments 489.4 279.5 275.5 222.9 Share Capital 300.0 300.0 3
Slide 30: Historical Cash Flow
HISTORICAL CASH FLOW Particulars (Rs. Crs.) Sep-22 FY22 FY21 FY20 Net Profit Before Tax 87.5 139.8 79.6 112.2 Adjustments for: Non -Cash Items / Other Investment or Financial Items 84.0 12.8 50.8 7.4 Operating profit before working capital changes 171.4 152.6 130.4 119.6 Changes in working capital -
Slide 31: Delivering Value to Shareholders
DELIVERING VALUE TO SHAREHOLDERS IPO in October 2022 ✓ Company raised Rs. 500 Cr via fresh issue of shares ✓ Objects of the issue ▪ Funding of capital expenditure for expansion and opening of stores and warehouses ▪ Funding incremental working capital requirements ▪ Repayment/prepayment, in full or
Slide 32: Key Takeaways
KEY TAKEAWAYS Cluster based expansion strategy with robust growth and highest Operating margins; Recently forayed in new geography by opening stores in the lucrative NCR market Flexible business model built to create long term sustainable footprint Long Term Relationship with marquee Brands in each
Slide 33: Thank You
THANK YOU Company: Electronics Mart India Limited Investor Relations: Strategic Growth Advisors (SGA) CIN: L52605TG2018PLC126593 CIN: U74140MH2010PTC204285 Mr. Premchand Devarakonda (CFO) Mr. Deven Dhruva / Ms. Hinal Kothari premchand.d@bajajelectronics.in deven.dhruva@sgapl.net / hinal.Kothari@sgap
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