Kddl Limited · NSE:KDDL
Kddl — Q4 FY2021 Earnings Presentation
39 slides from Kddl's earnings presentation, Jun 14, 2021
Slide 1: Cover letter to stock exchanges
KDDL Limited Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123 Ref : KDDL/CS/2021-22/23 Date : 14th June 2021 National Stock Exchange of India Limited BSE Limited, Exchange Plaza,
Slide 2: KDDL Limited & ETHOS Limited Investor Presentation
KDDL Limited & ETHOS Limited Investor Presentation June 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Ltd and Ethos Limited, a material subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 4: Q4FY21 Performance Overview
Q4FY21 Performance Overview
Slide 5: Q4FY21 Performance
Q4FY21 Performance Standalone Performance (Rs. Crs) Revenue PAT +24% +9x 50.5 4.7 40.7 0.5 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT +34% 4.5 123.5 92.2 -4.4 Q4FY20 Q4FY21 Q4FY20 Q4FY21 4 *Ethos Q4FY20 & Q4FY21 Revenue is without IND AS 116 impact for bette
Slide 6: FY21 Performance
FY21 Performance Standalone Performance (Rs. Crs.) Revenue PAT -19% 180.6 -63% 146.9 9.1 3.4 FY20 FY21 FY20 FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT -16% 460.2 4.7 388.5 -2.5 FY20 FY21 FY20 FY21 5 *Ethos FY20 & FY21 Revenue is without IND AS 116 impact for better comparison
Slide 7: Rights Issue strengthens Balance Sheet
Rights Issue strengthens Balance Sheet Pre-Rights Shares 1,16,50,108 Rights Issue of Rs. 10,86,956 Shares at Rights Issue of Rs. 230 per share 25 Crores Post-Rights Shares 1,27,37,064 Rights Issue Proceeds Utilization ✓ Rights issue proceeds to be invested in Ethos (for working capital requirements
Slide 8: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% FY21 FY20 YoY% Revenue 50.5 40.7 24% 40.8 24% 146.9 180.6 -19% Cost of Goods Sold 12.1 10.3 10.5 37.7 45.1 Gross Profit 38.4 30.4 26% 30.4 27% 109.2 135.5 -19% Employee Expenses 14.6 12.8 13.1 49.7 55.3 Other Expenses 1
Slide 9: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% FY21 FY20 YoY% Revenue 178.2 137.3 30% 178.2 0% 548.8 652.3 -16% Cost of Goods Sold 101.3 78.0 108.6 323.5 377.6 Gross Profit 76.9 59.2 30% 69.6 10% 225.3 274.7 -18% Employee Expenses 26.0 24.8 22.1 86.3 102.3 Other E
Slide 10: Consolidated Profit & Loss – Q4FY21
Consolidated Profit & Loss – Q4FY21 As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) Q4FY21 Q4FY20 Q4FY21 Q4FY20 Revenue 178.2 137.3 178.2 137.3 Cost of Goods Sold 101.3 78.0 101.3 78.0 Gross Profit 76.9 59.2 76.9 59.2 Employee Expenses 26.0 24.8 26.0 24.8 Other Expenses 23.7 22.3 31.5 30.7 N
Slide 11: Consolidated Profit & Loss – FY21
Consolidated Profit & Loss – FY21 As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) FY21 FY20 FY21 FY20 Revenue 548.8 652.3 548.8 652.3 Cost of Goods Sold 323.5 377.6 323.5 377.6 Gross Profit 225.3 274.7 225.3 274.7 Employee Expenses 86.3 102.3 86.3 102.3 Other Expenses 74.0 97.0 106.7 131.0 N
Slide 12: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 91.7 Crores and equivalent to the lease liability of Rs. 93.8 Crores as on 31st Mar 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will h
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 216.2 216.0 Equity 173.1 169.5 Property, plant and equipment 90.8 93.8 Equity share capital 11.7 11.7 Capital work-in-progress 1.1 2.2 Other equity 161.3 157.8 Right-of-use asset 10.7 12.
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 277.8 299.2 Equity 227.3 227.4 Property, plant and equipment 153.7 158.6 Equity share capital 11.7 11.7 Capital work-in-progress 4.9 2.9 Other equity 174.8 174.0 Right-of-use asset 91.7
Slide 15: Manufacturing Business Overview
Manufacturing Business Overview 14
Slide 16: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Dials Watch Hands Value Proposition ▪ Commercial operations began in 1983 ▪ Commercial operations began in 1996 ▪ Deep Understanding of the ▪ Leading Global supplier of Global Watch Industry Watch Dial serving many ▪ Only supplier in India and well
Slide 17: Precision Engineering Business
Precision Engineering Business Eigen offers a full package of services, ranging from design and Value Proposition development to full scale production, providing customers with optimized supply chain solutions We address various segments such as Electrical, Electronics, Automobile, Capabilities Tele
Slide 18: Stable Manufacturing Performance
Stable Manufacturing Performance* Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 181 32 176 29 27 146 147 24 125 22 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Since the lockdown was in force for a significant part of FY21, the results for FY21 were adversely affected by the COVID-19 pandemic and may no
Slide 19: Ethos Q4FY21 Snapshot
Ethos Q4FY21 Snapshot THE 50 4 FINEST WATCHES 5
Slide 20: Q4FY21 Performance
Q4FY21 Performance Q4FY21 vs Q4FY20 (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) 142.8 123.5 4.5 104.5 92.2 -4.4 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 ETHOS reported strong improvement in Profitability in Q4FY21 on the back of cost optimization efforts Financials are wit
Slide 21: FY21 Performance
FY21 Performance FY21 vs FY20 (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) 524.5 460.2 4.7 448.8 388.5 -2.5 FY20 FY21 FY20 FY21 FY20 FY21 Inspite of lower revenue, ETHOS turned around from loss in FY20 to profit in FY21 with strong improvement in profitability Financials are
Slide 22: Renewed Strategy for ETHOS Fit & Lean ETHOS
Renewed Strategy for ETHOS Stores Optimization Uniquely Positioned to Grow Post pandemic, Swiss brands may focus more In depth assessment of each store's on developed markets and less on developing performance across India . Accelerated closure like India. Ethos is uniquely positioned to of lower pr
Slide 23: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crores)* Q4FY21 Q4FY20 YoY % FY21 FY20 YoY % Revenue 125.2 92.2 36% 403.0 460.2 -12% Cost of Goods Sold 87.8 66.3 282.2 330.1 Gross Profit 37.3 25.9 44% 120.8 130.0 -7% Margin (%) 29.8% 28.1% 30.0% 28.3% Employee Expenses 9.6 7.7 29.3 33.2 Other Expenses 9
Slide 24: Consolidated Profit & Loss – Q4FY21
Consolidated Profit & Loss – Q4FY21 As Reported Without INDAS 116 Particulars (Rs. Crores)* Q4FY21 Q4FY20 Q4FY21 Q4FY20 Revenue 125.2 92.2 123.5 92.2 Cost of Goods Sold 87.8 66.3 87.8 66.3 Gross Profit 37.3 25.9 35.7 25.9 Employee Expenses 9.6 7.7 9.7 7.7 Other Expenses 9.9 9.6 15.5 17.4 Normalized
Slide 25: Consolidated Profit & Loss – FY21
Consolidated Profit & Loss – FY21 As Reported Without INDAS 116 Particulars (Rs. Crores)* FY21 FY20 FY21 FY20 Revenue 403.0 460.2 388.5 460.2 Cost of Goods Sold 282.2 330.1 282.2 330.1 Gross Profit 120.8 130.0 106.3 130.0 Employee Expenses 29.3 33.2 29.3 33.2 Other Expenses 35.4 42.7 51.0 73.8 Norma
Slide 26: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 81.2 Crores and lease liability of Rs. 88.2 Crores, as on 31st Mar, 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will have an impact on
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Mar-21 Mar-20 Equity & Liabilities (Rs. Crores)* Mar-21 Mar-20 Non-current assets 128.8 142.7 Shareholder’s Fund 156.9 152.2 Fixed Assets 35.1 32.2 Share Capital 18.2 18.2 Right of Use 81.2 96.9 Other Equity 138.7 134.0 Financial Assets 9.0 9.3 Other N
Slide 28: Largest Pan India retailer of Luxury Watches
Largest Pan India retailer of Luxury Watches Stores as of Feb-21 47 Addition (0) ❑ No Stores Added ❑ Multi Brand, Closures (1) Noida (425 Sq. Ft.) Total Stores 46 We continue to rationalise the store network Open stores in newer locations with higher expected footfalls and stores with lower profitab
Slide 29: Complementary verticals strengthens offerings
Complementary verticals strengthens offerings Repair & Service Pre-Owned Watches ✓ Pre-Owned Watches has the potential to ✓ Repair and services over 60 of the expand the volume and customer base Highlight 1 Luxury watch Brands World’s top Highlight ✓ Ethos has1the expertise to check the authenticity
Slide 30: Operational Highlights
Operational Highlights 29
Slide 31: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.)* Revenue 445.1 460.2 11.4% 11.1% 388.5 10.1% 10.1% 357.8 9.2% 327.0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (Rs. Crs.)* EBITDA Margins* 34.0 7.6% 6.7% 26.1 23.0 5.0% 4.5% 15.9 3.3 1.0% FY17 FY18 FY19
Slide 32: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing +10% 171.7 158.9 141.4 38.3% 136.0 116.0 31.8% 32.4% 30.3% 27.6% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Visitors (‘000) +15% 17,203 14,735 15,024 13,191 10,001 FY17 FY18 FY19 FY20 FY21 Ethos witness
Slide 33: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer
Slide 34: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 46 stores Ludhiana Chandigarh New Delhi Gurugram Noida Presence across Metros, Tier I, Tier II cities Jaipur Lucknow Guwahati Ahmedabad Kolkata Nagpur 1 Duty Free Retail Outlet at International Terminal
Slide 35: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive Brands Stores Digital Strategy Right Mix • Leverage on our • To go slower on • Targeting to have a Digital platform to new stores in near right mix of Brands drive sales and • Higher share of term at all price points customers Business from • F
Slide 36: Ethos is India's Preferred Destination for Luxury Watches
Ethos is India’s Preferred Destination for Luxury Watches… Knowledge One-stop shop Mind Share Ethos has well trained Ethos’ access to Swiss Watch Ethos to be synonymous Knowledgeable staff to ensure Brands will make it a ‘1 Stop with Luxury watches highest customer satisfaction Shop’ for Luxury Watc
Slide 37: With an Asset Light Model…
With an Asset Light Model… Maximize Minimize Investment Optimize Costs Reach Focus on Online Expand catchment Reduce Front-End Cost Presence & area of offline store, like Manpower and Rationalize Store leading to higher Rental expenses Presence revenue Operating Leverage Playing Out Improve Return O
Slide 38: and Continued Investments in Advertising…
and Continued Investments in Advertising… Print Ads in leading news media… Hindustan Times Hindustan Times … with ETHOS co-branding 37
Slide 39: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC008123 CIN : U74140MH2010PTC204285 Mr. C. Raja Sekhar Mr. Shogun Jain/ Mr. Shrenik Shah +91 77383 77756 / +91 9664 764465 rajasekhar@ethoswatches.com shogun.jain@sgapl.net / Shrenik.sha