V-mart Retail Ltd · NSE:VMART
V-mart Retail — Q4 FY2020 Earnings Presentation
34 slides from V-mart Retail's earnings presentation, Jun 1, 2020
Slide 1: Cover letter to stock exchanges
Ref. No. CS/S/L-418/2020-21 01st June, 2020 To: To: The Listing Department The Corporate Relationship Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED THE BSE LTD “Exchange Plazza” Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Mumbai – 400 001 Bandra (E ), Mumbai – 400 051 Scrip C
Slide 2: V-Mart Retail Ltd. Financial Results & Analysis Q4 FY'20
www.vmartretail.com V-Mart Retail Ltd. Financial Results & Analysis Q4 FY’20
Slide 3: Disclaimer
This presentation has been prepared by V-Mart Retail Limited (“V-Mart”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to
Slide 4: Mid-Long term Outlook Remains Strong Despite COVID Challenges
Mid-Long term Outlook Remains Strong Despite COVID Challenges Continuous Business Growth COVID-19 Pandemic o Noteworthy performance during most of FY20 Impact Started from 1st week of March leading to : o Strong Q4 (till Mid March) o 50% of stores closed by 17th ; Complete Lockdown o Business model
Slide 5: April-March FY'20 Key Highlights
April-March FY’20 Key Highlights Financial Parameters Operational Parameters 4
Slide 6: Key Highlights: April-March FY'20 vs. FY'19 Results
Key Highlights: April-March FY’20 vs. FY’19 Results • Revenue grows by 16% ; YTD 15 Mar 2020 +21% • Same Store Sales growth : (-2%) ; YTD 15 Mar 2020 +3% • Number of Stores increases to 266 (added : 55 closed : 3) • Sales per sq. feet (per month) : Rs. 759, -6% • Contribution of segment to total rev
Slide 7: Financial Parameters: April-March FY'20 vs. FY'19
Financial Parameters : April-March FY’20 vs. FY’19 Sales (Millions) Sales Mix (%) + 16% 79.6% 79.7% 16,620 14,337 13.0% 13.5% 7.4% 6.8% FY'20 FY'19 Apparels Non Apparels Kirana EBITDA (Millions) PAT (Millions) + 61% 2,138 -20% 616 1,329 493 FY'20 FY'19 FY'20 FY'19 Note : FY’20 numbers are adjusted o
Slide 8: Operational Parameters: April-March FY'20 vs. FY'19
Operational Parameters : April-March FY’20 vs. FY’19 FootFall (Lacs) Conversion Rate (%) + 12% 58.5% 57.6% 393 350 FY'20 FY'19 FY'20 FY'19 Transaction size (Rs.) Average Selling Price (Rs) + 4% Total Apparel + 5% 788 334 320 754 + 8% 218 203 FY'20 FY'19 FY'20 FY'19 CY PY 7
Slide 9: Operational Parameters: April-March FY'20 vs. FY'19
Operational Parameters : April-March FY’20 vs. FY’19 Sales per sq feet (per month) Store Count (Nos) 141 Tier 1 Tier 2 Tier 3 Tier 4 - 6% 130 759 805 58 35 32 37 22 25 FY'20 FY'19 FY'20 FY'19 Same Store Sales Growth (%) Same Store Volume Growth (%) 8.3% 3.7% FY'20 FY'19 FY'20 FY'19 -2.3% -6.1% CY PY
Slide 10: Operational Parameters: April-March FY'20 vs. FY'19
Operational Parameters : April-March FY’20 vs. FY’19 Expenses (% of Sales) Retail Space (Lacs Sq feet) 9.2% + 23% 8.8% 22.1 5.7%^ 17.9 4.7% 3.7% 3.6% 2.9% 2.9% 2.1% 2.4% 0.7% 0.6% 0.7% Manpower Rent Power Advertisement Packing Others FY'20 FY'19 Inventory (Days of Sales) Shrinkage (% of Sales) Total
Slide 11: Inventory
Inventory (` in million, unless stated otherwise) 4,779 520 75 4,184 Reported inventory Loss of Sales due to Covid 19 5 Stores scheduled to open, Normalised Inventory (Lower ops days in Mar) not opened • Majority inwards for Spring Summer happened by 15th March • Without Covid Impact, Normalized inv
Slide 12: Q4 FY'20 Key Highlights
Q4 FY’20 Key Highlights Financial Parameters Operational Parameters 11
Slide 13: Key Highlights: Q4 FY'20 vs. FY'19 Results
Key Highlights: Q4 FY’20 vs. FY’19 Results • Revenue de-grows by (-3%); QTD 15 Mar 2020 +29% Strong Growth Trajectory impacted by COVID-19 • Same Store Sales growth : (-18%); QTD 15 Mar 2020 +8% Q4’20 witnessed revenue growth of 29%, LTL growth of • Sales per sq. feet (per month) : Rs. 619, -14% 8%
Slide 14: Financial Parameters – Q4 FY'20 vs. FY'19
Financial Parameters – Q4 FY’20 vs. FY’19 Sales (Millions) Sales Mix (%) - 3% 78.7% 79.6% 3,327 3,445 13.1% 13.4% 8.2% 7.0% Q4'20 Q4'19 Apparels Non Apparels Kirana EBITDA (Millions) PAT (Millions) + 57% 278 Q4'20 Q4'19 178 -9 -84 Q4'20 Q4'19 Note : FY’20 numbers are adjusted on account of IND-AS 11
Slide 15: Operational Parameters – Q4 FY'20 vs. FY'19
Operational Parameters – Q4 FY’20 vs. FY’19 FootFall (Lacs) Conversion Rate (%) -3% 58.4% 55.0% 82 84 Q4'20 Q4'19 Q4'20 Q4'19 Transaction size (Rs.) Average Selling Price (Rs) + 7% Total Apparel + 6% 357 334 790 749 + 8% 222 206 Q4'20 Q4'19 Q4'20 Q4'19 CY PY 14
Slide 16: Financial Review
Financial Review Ind-AS 116 : P&L Impact Profit & Loss Statement Balance Sheet and CFS 15
Slide 17: Ind-AS 116 – Leases
Ind-AS 116 – Leases MCA has mandated Accounting Standard IND-AS 116 for Accounting for Leases with effect from April 1, 2019 Impact • Requires lessee to recognize on Balance Sheet measured at present value of minimum lease payments to be made over the lease period, as a Right of Use Asset (ROU) on t
Slide 18: Ind-AS 116: P&L Impact (FY'20)
Ind-AS 116 : P&L Impact (FY’20) (` in million, unless stated otherwise) Ind-AS Adjustments to increase / (decrease) in PAT Reported FY'20 Comparable FY'20 adjustment Revenue 16,620 (10) 16,630 Rent 119 (823) 942 Total Other expenses (incl. Rent) 1,684 (823) 2507 Finance cost 548 514 34 Depreciation
Slide 19: Ind-AS 116: P&L Impact (Q4 FY'20)
Ind-AS 116 : P&L Impact (Q4 FY’20) (` in million, unless stated otherwise) Ind-AS Adjustments to increase / (decrease) in PAT Reported Q4’20 Comparable Q4'20 Adjustment Revenue 3,327 (3) 3,330 Rent 39 (215) 254 Total Other expenses (incl. Rent) 303 (215) 518 Finance cost 139 132 7 Depreciation & Amo
Slide 20: Financial Review – Profit & Loss Statement
Financial Review – Profit & Loss Statement ` in million (except per share data) For the period ended Particulars 31.03.2020 31.03.2019 (Audited) (Audited) I. Revenue from operations 16,620 14,338 II. Other income 45 59 III. Total Revenue (I + II) 16,665 14,397 IV Total Expenses (IV) 15,970 13,301 V
Slide 21: Financial Review - Balance Sheet and CFS
Financial Review - Balance Sheet and CFS (` in million, unless stated otherwise) Particulars As at As at March 31, 2020 March 31, 2019 V-Mart Retail Limited (Audited) (Audited) I ASSETS Cash Flow Statement for the period ended March 31, 2020 Non-current assets Property, plant and equipment 1,712.72
Slide 22: Financial Data – FY 2020 and Q4'20
Financial Data – FY 2020 and Q4’20 (` in million, unless stated otherwise) FY 20 Growth FY 20 Growth FY'20 FY19 (Comp) YoY (Comp) (Ind-AS116 Adj) YoY (Ind AS Adj) Revenues 14,337 16,630 16.0% 16,620 15.9% Total Revenues 14,397 16,675 15.8% 16,665 15.8% (incl. other and financial income) Gross profit
Slide 23: Consistent Legacy of Strong Financial Performance
Consistent Legacy of Strong Financial Performance (Without Ind AS and ` in million, unless stated otherwise) FY20A (Comp) FY16 FY17 FY18 FY19 FY20N^ (w/o IND AS 116) Revenue 8,093 10,017 12,224 14,337 17,319 16,630 Growth 12.3% 23.8% 22.0% 17.3% 20.8% 16.0% EBITDA 630 889 1,369 1,329 1,593 1,325 EBI
Slide 24: Stores Geographic Spread & Sales Promotions Q4 FY'20
Stores Geographic Spread & Sales Promotions Q4 FY’20 23
Slide 25: Stores Geographical Spread
Stores Geographical Spread 24
Slide 26: New Stores Addition (Qtr 4)
New Stores Addition (Qtr 4) Retail space State No. of stores added (Sq ft) Madhya Pradesh 1 6,522 Rajasthan 2 14,497 Uttar Pradesh 6 38,981 Quarter Store Opening Q1 13 Q2 14 Q3 19 Q4 9 Total 55 25
Slide 27: COVID-19 Responding to Crisis
COVID-19 Responding to Crisis 26
Slide 28: Deciphering COVID-19
Deciphering COVID-19 Community Opportunity Values Innovation Dynamic Collaborated with Revamping Acting as per Home Delivery of Implemented WFH Local operating model to organizational essentials, Scaling- with agility, Administration and optimize costs and ethos & value up Omnichannel invested in NG
Slide 29: Immediate Priorities
Immediate Priorities Reopening of all stores & Restoration of operations with Safe Shopping Destination Secured Working Environment Established store safety protocols Established Employee Safety Protocols Face masks mandatory Frequently disinfection of common surfaces Mandatory thermal screening Man
Slide 30: Response to COVID
Response to COVID 01 Immediate Steps Tactical response to combat Covid-19 to manage 3 Cs 02 Emerging Action Areas COVID-19 Medium-Term Responses to recover & continue growth trajectory 03 Long-term Focus Areas Explore Alternative & Innovative Models 29
Slide 31: Immediate Steps
Immediate Steps Customer & Employee Cost Cash Conservation Health & Safety Reduction & Liquidity • Restarting operations with • Renegotiating rentals with all • 50% increase in bank limits since augmented safety norms for landlords for : February making V-Mart: o Zero rental for lock down period • C
Slide 32: Emerging Action Areas
Emerging Action Areas Integrated People & Augmenting Go to Market Approach Governance Omnichannel • Re-opening all stores to offer full • Invested significant resources in • Accelerating Omnichannel pilot range of merchandise to customers nurturing Human Capital project to an augmented e- • Offering
Slide 33: Long-term Focus Areas
Long-term Focus Areas Applying lessons learnt Leveraging & Sustaining Digital & Organizational during COVID-19 Strong Enablers Transformation • Enabling long range planning with • Getting closer to our customers - • Best processes & systems optimum resources & human capital Customer First Approach •
Slide 34: Thank You
www.vmartretail.com Thank You In case of any queries, please contact the IR Team: Girish Garg - girish.garg@vmart.co.in