Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY21 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, October 2020
Slide 1: Financial Results Presentation Q2 & H1 FY21
Vaibhav Global Limited Financial Results Presentation Q2 & H1 FY21 Global Retailer of Fashion Jewellery, Accessories, and Lifestyle Products on Home Shopping TV and e-Commerce Platforms
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business developments and econ
Slide 3: MD's Message
MD’s Message “Our strong run over the years has received further boost during the pandemic. While numerous businesses have upended in these challenging times, our unique vertically integrated model has delivered ahead of expectations. All spokes in VGL’s wheel of business, wonderfully aligned for sw
Slide 4: Covid-19: Continuous Response
Covid-19: Continuous Response Covid-19 Response Employees Investors Customers Supply Chain Community ▪ ‘Borderless workforce’ ▪ Sustained focus on a ▪ Continued retail operations ▪ Temporary shutdown in ▪ Donated ~1,97,000 masks with no latency healthy Balance Sheet in US & UK operations balanced by
Slide 5: Q2FY21 – Key Highlights
Q2FY21 – Key Highlights ` Robust 29% Y-o-Y growth in retail revenues EBITDA grew by a strong 42% Y-o-Y with margins at 16.5% Further improvement in return ratios with ROCE expanding to 50% (TTM basis) H1FY21 Free Cash Flows enhanced to Rs. 77 crore Declared interim dividend of Rs. 5 per share taking
Slide 6: Table of Contents
TABLE OF CONTENTS 1 Business Background Details 2 Q2 & H1 FY21 Financial Performance 3 Financial Performance Trends 4 Annexures RESULTS PRESENTATION - OCTOBER 2020
Slide 7: Business Background Details
Business Background Details RESULTS PRESENTATION - OCTOBER 2020
Slide 8: Vaibhav Global Limited (VGL) at a Glance
Vaibhav Global Limited (VGL) at a Glance MISSION VISION Through the delivery of Be the Value Leader in high quality, affordable Electronic Retailing of products, made possible by our low cost direct sourcing, Jewellery & Lifestyle we change the world and Products touch people’s lives one piece at a
Slide 9: Our Global Presence
Our Global Presence Retail Markets Shop LC (US) | Shop TJC (UK) UK Sourcing ▪ India ▪ Brazil US ▪ China ▪ Sri Lanka China ▪ Thailand ▪ US ▪ Indonesia ▪ UK ▪ Tanzania ▪ Mozambique ▪ Russia ▪ Germany India ▪ Morocco ▪ Italy ▪ Myanmar ▪ Turkey ▪ Madagascar ▪ Poland ▪ Bolivia ▪ Singapore ▪ Kenya ▪ UAE ▪
Slide 10: Corporate Overview
Corporate Overview Vertically-integrated fashion retailer on electronic retail platforms Shop LC (US) & Shop TJC (UK) are brands with strong customer ▪ End-to-end B2C business model visibility ▪ Significant geographical cost arbitrage ▪ TV Homes accessed (*FTE) - 101 million ▪ Proprietary TV home-sh
Slide 11: 4R's of Customer Engagement
4R’s of Customer Engagement TV – Diverse Products Enduring relationships Linear / OTA Expanding wallet share Web - Deep value proposition Convenience Browsers / Mobile Apps / Cross-selling Social Media / Market-places / OTT Engrossing Content Digitalization/AI Reach Registrations Retention Repeat Pu
Slide 12: Our Omni-Channel Sales Platform – Shop LC (US)
Our Omni-Channel Sales Platform Shop LC (US) Shop LC Proprietary TV channels – 76 mn HH including Shop LC live TV stream on shoplc.com, YouTube, 16.2 mn OTA* HH* Facebook and Amazon Live TV Shop LC mobile app Social retail of targeted available on Marketplaces products on Proprietary web platform Go
Slide 13: Our Omni-Channel Sales Platform – Shop TJC (UK)
Our Omni-Channel Sales Platform Shop TJC (UK) Shop TJC Proprietary TV channels – 25 mn HH Shop TJC live TV stream available on tjc.co.uk, including 17 mn OTA* HH* YouTube and Facebook TV Shop TJC mobile app Social retail of targeted Proprietary web platform available on Marketplaces products on www.
Slide 14: Business Transition Dashboard
Business Transition Dashboard B2C Revenues by format B2C Revenues by product category TV revenues Web revenues Jewellery Non-jewellery revenues 19% 9% 22% 33% 36% 32% 81% 91% 78% 67% 64% 68% FY15-16 FY19-20 H1 FY21 FY15-16 FY19-20 H1 FY21 59% of web revenues in H1FY21 were from Mobile platform Jewel
Slide 15: Q2 & H1 FY21 Financial Performance
Q2 & H1 FY21 Financial Performance RESULTS PRESENTATION - OCTOBER 2020
Slide 16: Financials – Q2 & H1 FY21 Performance: Revenue Breakdown
Financials – Q2 & H1 FY21 Performance Revenue Breakdown – (Rs. crore) Revenue 24.2% 1,149 23.4% 925 599 485 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Fashion Jewelry, Accessories & Lifestyle Products TV Revenue 24.2% Web Revenue B2B Revenue 44.2% 411 53 729 24.0% 587 40.5% 285 387 208 25 312 148 -82.7%
Slide 17: Revenue Breakdown – Local Currency
Financials – Q2 & H1 FY21 Performance Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) (USD million) (GBP million) 19.9% 29.1% 107.1 35.8 89.4 27.7 19.5% 26.6% 56.1 18.7 47.0 14.7 Q2 FY20 Q2 FY 21 H1 FY20 H1 FY21 Q2 FY 20 Q2 FY21 H1 FY20 H1 FY21 RESULTS PRESENTATION - OCTOBER 2020
Slide 18: Retail Performance Trends – Q2 & H1 FY21
Retail Performance Trends – Q2 & H1 FY21 Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 3,653 2,822 30.3 29.4 29.8 26.7 1,467 1,773 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Web Sales Sales Volume ('000s) Average Selling Price US$ 2,599 22.3 21.7 21.8 21
Slide 19: Financials – Q2 & H1 FY21 Performance: Profits
Financials – Q2 & H1 FY21 Performance Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 61.3% 62.9% 62.2% 63.6% 14.3% 16.5% 13.4% 15.3% Margin (%) Margin (%) 27.0% 42.1% 176 731 41.9% 26.7% 575 124 99 377 70 297 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Q2 FY20 Q2 FY21 H1 FY20 H2 FY21 PAT EPS (Rs.) P
Slide 20: Financial Performance Trends
Financial Performance Trends RESULTS PRESENTATION - OCTOBER 2020
Slide 21: Financial Performance Trends: Revenue Breakdown
Financial Performance Trends Revenue Breakdown – (Rs. crore) Revenue CAGR: 11.7%* 1,986 1,814 1,571 24.2% 1,276 1,436 1,149 925 FY16 FY17 FY18 FY19 FY20 H1 FY20 H1 FY21 Fashion Jewelry, Accessories & Lifestyle Products TV Revenue Web Revenue B2B Revenue CAGR: 8.4% CAGR: 29.8% 633 44.2% CAGR: -13.3
Slide 22: Retail Performance Trends
Retail Performance Trends Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 29.9 29.8 6,275 24.4 24.9 27.0 26.4 26.7 5,854 5,877 5,737 6,070 3,653 2,822 FY16 FY17 FY18 FY19 FY20 H1 FY20 H1 FY21 FY16 FY17 FY18 FY19 FY20 H1 FY20 H1 FY21 Web Sales Sales Volume ('000s) Average Selli
Slide 23: Financial Performance Trends: Profits
Financial Performance Trends Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA Margin (%) 63.0% 60.1% 59.6% 62.5% 61.6% 62.2% 63.6% Margin (%) 5.9% 7.1% 10.1% 12.0% 13.9% 13.4% 15.3% 1,133 1,224 CAGR: 38.5% 276 42.1% 865 936 217 804 731 159 176 575 124 102 75 FY16 FY17 FY18 FY19 FY20 H1 FY20 H
Slide 24: Financial Performance Trends: Balance Sheet
Financial Performance Trends Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles ** 844 ** 163 ** 751 ** 163 697 129 126 120 117 550 379 434 FY16 FY17 FY18 FY19 FY20 H1 FY21 FY16 FY17 FY18 FY19 FY20 H1 FY21 Net Debt Net Assets *** 55 6 ** 449 417 399 ** 394 (13) 305 3
Slide 25: Financial Performance Trends: Cash Flow
Financial Performance Trends Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 203 211 181 176 93 70 75 77 52 54 38 20 (28) (77) FY16 FY17 FY18 FY19 FY20 H1 FY20 H1 FY21 FY16 FY17 FY18 FY19 FY20 H1 FY20 H1 FY21 RESULTS PRESENTATION - OCTOBER 2020 25
Slide 26: Financial Performance Trends: Key Ratios
Financial Performance Trends Key Ratios ROE (TTM) ROCE (TTM) 29% 50% 26% 46% 25% 23% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 FY20 H1 FY21 FY16 FY17 FY18 FY19 FY20 H1 FY21 Note - ROE – based on average net worth ROCE – based on average capital employed RESULTS PRESENTATION - OCTOBER 2020 26
Slide 27: Annexures
Annexures RESULTS PRESENTATION - OCTOBER 2020
Slide 28: Delivering Joy to Stakeholders: Customers, Employees
Delivering Joy to Stakeholders ▪ Unique Customers – 446,905 (Q2FY21 – TTM basis) ▪ Average qty. per customer – 27 pieces (Q2 FY21 – TTM basis) Customers ▪ High quality products & Exotic designs Rating ▪ Low Price – high quality - high affordability ▪ Omni-channel access ▪ Budget Pay (monthly install
Slide 29: Delivering Joy to Stakeholders: Investors, Environment, Society
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 2020 29% 50% Rank #219 #162 #147 #132 ROE ROCE ▪ Successfully Commissioned 1MW Solar PV Power Generation Project. With this, the Company expects to meet ~45% of the Environment total power requirement at the manufacturing facilities in Jai
Slide 30: VGL Shareholder Base – As on 30-Sep-2020
VGL Shareholder Base – As on 30-Sep-2020 Holding as on Shareholding Pattern Key Shareholders (Holding 1%+) 30-Sep-2020 Individual - >1% Others Promoter & Promoter Group 58.34% 3.57% 6.16% Nalanda India Fund Limited (FII) 10.35% AIF 1.09% Domestic Institutions Motilal Oswal Multicap 35 Fund (MF) 9.55
Slide 31: Management Team
Management Team Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha Managing Director, VGL Group CFO, VGL Group President, Shop LC (US) Managing Director, Shop TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Vivek Jain Chief Technology Officer, Vice President, S
Slide 32: Thank You
THANK YOU For more information please contact: Vaibhav Global Limited Vineet Ganeriwala, Group CFO Dipti Rajput, Head-IR Vineet@vglgroup.com Dipti.Rajput@vglgroup.com +91-141-2771975 +91-9116653352