Khadim India Limited · NSE:KHADIM
Khadim India — Q3 FY2020 Earnings Presentation
28 slides from Khadim India's earnings presentation, February 2020
Slide 1: Letter to stock exchanges on investor meet
February 10, 2019 The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip cede- 540775 Symbol· KHA
Slide 2: Q3 FY20 Results Presentation
Q3 FY20 RESULTS PRESENTATION FEBRUARY 2020 1
Slide 3: Discussion Summary
BRITISH W LAZARD LAZARD DISCUSSION SUMMARY ▪ BUSINESS OVERVIEW ▪ Q3 & 9MFY20 RESULTS SHARON CLEO SHARON ▪ BUSINESS STRATEGY & OUTLOOK ▪ FINANCIAL & OPERATIONAL SUMMARY PRO PRO PRO ▪ MANAGEMENT TEAM & SHAREHOLDING PATTERN 2
Slide 4: Business Overview
BRITISH WALKERS LAZARD BUSINESS OVERVIEW 3
Slide 5: Quick Snapshot
QUICK SNAPSHOT 1 Leading Footwear Brand in India 2 Huge Market Growth Potential * • 2nd largest footwear retailer in India * • Domestic footwear market expected to grow • Largest presence in East India at 15% (FY16-20) • One of the top 3 players in South India • Branded footwear market expected grow
Slide 6: Two-Pronged Market Strategy of Retail & Distribution Models
TWO-PRONGED MARKET STRATEGY OF RETAIL & DISTRIBUTION MODELS Retail Business Distribution Business Reach 830 ‘Khadim’s exclusive branded outlets 583 distributors supplying to MBOs across India Middle & upper middle income consumers in metros Lower & middle income consumers in Tier I – III cities, Tar
Slide 7: Extensive Geographical Reach & Penetration
EXTENSIVE GEOGRAPHICAL REACH & PENETRATION Presence in 23 States & 1 Union Territory 1 1 2 10 3 1 11 18 49 50 Brand Network Dec ‘19 Retail Stores – Tier wise 50 39 1 1 88 41 4 Retail Stores 830 Metros 20% 12 2 - COCO 222 27 11 26 31 17 Tier I 48% 18 14 276 245 3 1 - Franchises 608 Tier II 15% 10 6 4
Slide 8: Q3 & 9M FY20 Results Update
SHARON CLEO Q3 & 9M FY20 RESULTS UPDATE 7
Slide 9: Result Highlight – 9M FY20
RESULT HIGHLIGHT – 9M FY20 9M FY20 Revenues Rs Mn Retail Distribution Others * • Rev Share – Rs 3790 m • Rev Share – Rs 1519 m • Rev Share – Rs 827 m • GM – 45.8% • GM – 29.3% • EM – 6.2% • EM – 7.2% COCO Franchises • Rev Share – 59.5% • Rev Share – 40.5% Asset Light Model for Frontend Expansion and
Slide 10: Q3 & 9M FY20 Results: Segment Analysis
Q3 & 9M FY20 RESULTS: SEGMENT ANALYSIS Q3 FY20 YoY ANALYSIS – REVENUE BREAKUP 9M FY20 YoY ANALYSIS – REVENUE BREAKUP 478 1,495 1,519 468 1,239 1,168 3,877 3,790 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Retail Distribution Retail Distribution Segment Share % * Q3 FY19 Q3 FY20 Segment Share % * 9M FY19 9M FY20
Slide 11: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY20 Q3 FY19 YoY % Q2 FY20 QoQ % 9M FY20 9M FY19 YoY % FY19 Revenue 1,747.6 1,764.7 -1.0% 2,228.2 -21.6% 6,136.5 5,925.1 3.6% 7,991.8 COGS 1,048.9 1,034.7 1.4% 1,383.7 -24.2% 3,804.0 3,579.6 6.3% 4,964.6 Gross Profit 698.8 730.0 -4.3% 84
Slide 12: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK BUSINESS STRATEGY & OUTLOOK
Slide 13: Business Growth Strategy
BUSINESS GROWTH STRATEGY Retail Business Distribution Business • Expanding retail footprint in markets across • Focus on penetration in existing markets in South India, West India and in Uttar Pradesh Eastern and Southern India and capitalise in North India on retail brand recall and target markets
Slide 14: Positive Industry Outlook
POSITIVE INDUSTRY OUTLOOK Domestic footwear retail to grow at a faster pace compared to the overall retail industry Favourable macro and Overall retail market in US $ Bn Domestic footwear market at retail price in US $ Bn demographic tailwinds 1200 Population Growth 13.7 • Young demographics - 78% o
Slide 15: Financial & Operational Summary
FINANCIAL & OPERATIONAL SUMMARY FINANCIAL & OPERATIONAL SUMMARY
Slide 16: Financial Summary
FINANCIAL SUMMARY* In Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 14.8% CAGR: 42.8% 9.8% 10.6% 10.1% 4.7% 5.0% 5.1% 37.1% 39.2% 37.9% 37.9% 7.1% 2.6% 32.1% 7,992 3.0% 757 306 379 6,106 7,489 645 252 212 5,345 524 570 -4.1% 4,602 137 -187 FY15 FY16 FY17 FY18 FY19 FY15
Slide 17: Financial Summary
FINANCIAL SUMMARY In Rs Mn (I-GAAP) Revenues – Segment wise Retail Revenues – COCO vs Franchises Retail Revenues – Khadim’s vs Sub-brands 15% 19% 22% 24% 26% 42% 47% 47% 46% 42% 48% 50% 52% 52% 57% 72% 75% 73% 66% 63% 58% 53% 53% 54% 58% 52% 50% 48% 48% 43% 13% 6% 5% 10% 11% FY15 FY16 FY17 FY18 FY19
Slide 18: Annexure
ANNEXURE
Slide 19: Wide Product Range Across Various Categories & Price Points
WIDE PRODUCT RANGE ACROSS VARIOUS CATEGORIES & PRICE POINTS ‘Affordable Fashion’ brand catering to the entire family for all occasions - Men / Women / Kids - Menswear - Menswear - Menswear - Men & Women wear - Fashionable & casual - Formal shoes & sandals - Semi-formal & casual shoes / - Outdoor boo
Slide 20: 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 % Share, Value Acro
Slide 21: Asset Light Model & Strong Design Capabilities
ASSET LIGHT MODEL & STRONG DESIGN CAPABILITIES Asset Light Model makes the business highly scalable, less capital-intensive and leads to higher operating leverage and increasing profitability Retail Business – Maximise Outsourcing Distribution – Maximise Capacity Utilisation Manufacturing • Retail b
Slide 22: Marketing Initiatives to Strengthen Brand Recall and Customer Connect
MARKETING INITIATIVES TO STRENGTHEN BRAND RECALL AND CUSTOMER CONNECT Key Marketing Triggers Celebrity Brand Ambassadors with a combined outreach of 14 million* followers on social media Celebrity Brand Ambassadors Season based new arrivals Scheme promotions, discount sales, consumer offers New stor
Slide 23: Promoter & Board of Directors
PROMOTER & 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 N
Slide 24: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Namrata Chotrani, CEO Indrajit Chowdhury, CFO • She was associated with KPMG & Fairwinds Asset Managers Limited • 15+ yrs of experience in finance& accounts, taxation and strategic planning (since 2012) and has a total experience of over nine years in tax, private • Respo
Slide 25: Shareholding Structure
SHAREHOLDING STRUCTURE % Shareholding – Dec-19 Key Institutional Investors % Holding Others, 10.8 IDFC MUTUAL FUND 5.3% UTI MF 3.2% Promoter & Promoter MIRAE ASSET MUTUAL FUND 4.9% Institutions, Group, 60.3 28.9 SUNDARAM MUTUAL FUND 4.3% FRANKLIN INDIA FUND 2.0% ICICI PRUDENTIAL FUND 1.1% Source: BS
Slide 26: Key Milestones
KEY MILESTONES 1981 1993 1999 2002 2005 • Acquired and took over the • Commenced retail • Commenced retail • Commenced • Accredited with business of M/s S.N. business through operations in South manufacturing ISO 9001:2000 Industries as a going concern COOs for footwear India through with operations
Slide 27: 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 c
Slide 28: Contact details
Namrata Chotrani CEO Contact No: +91 33 40090501 Email: namrata.chotrani@khadims.com Indrajit Chowdhury Vikash Verma/ Nachiket Kale CFO IR Consultant Contact No : + 91 33 40090505 Contact: + 91 9664009029/ 9920940808 Email – indrajit.chowdhury@khadims.com Email – khadim@dickensonworld.com 27