Kddl Limited · NSE:KDDL
Kddl — Q3 FY2021 Earnings Presentation
39 slides from Kddl's earnings presentation, Feb 12, 2021
Slide 1: KDDL Limited cover letter to 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/2020-21/92 Date : 12th February, 2021 National Stock Exchange of India Limited BSE Limited, Exchange P
Slide 2: KDDL Limited & ETHOS Limited Investor Presentation
KDDL Limited & ETHOS Limited Investor Presentation February 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: Q3FY21 Performance Overview
Q3FY21 Performance Overview
Slide 5: Witnessing Strong Recovery Q-o-Q…
Witnessing Strong Recovery Q-o-Q… Standalone Performance (Rs. Crs) Revenue PAT +18% +412% 40.8 2.9 34.6 0.6 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT +31% +133% 134.5 7.7 102.5 3.3 Q2FY21 Q3FY21 Q2FY21 Q3FY21 4 *Ethos Q2FY21 & Q3FY21 Revenue is without IND
Slide 6: Q3FY21 Performance
Q3FY21 Performance Standalone Performance (Rs. Crs) Revenue PAT -3.4% +84.8% 42.3 40.8 2.9 1.6 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT +63.6% -15.5% 159.2 7.7 134.5 4.7 Q3FY20 Q3FY21 Q3FY20 Q3FY21 5 *Ethos Q2FY21 & Q3FY21 Revenue is without IND AS 116 imp
Slide 7: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q3FY21 Q3FY20 YoY% Q2FY21 QoQ% 9MFY21 9MFY20 YoY% Revenue 40.8 42.3 -3% 34.6 18% 96.4 139.9 -31% Cost of Goods Sold 10.5 9.8 9.3 25.6 34.8 Gross Profit 30.4 32.5 -6% 25.3 20% 70.8 105.1 -33% Employee Expenses 13.1 14.1 11.3 35.1 42.5 Other Expenses 9
Slide 8: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q3FY21 Q3FY20 YoY% Q2FY21 QoQ% 9MFY21 9MFY20 YoY% Revenue 178.2 203.7 -13% 139.4 28% 370.6 515.0 -28% Cost of Goods Sold 108.6 124.8 85.4 222.2 299.6 Gross Profit 69.6 79.0 -12% 54.0 29% 148.4 215.5 -31% Employee Expenses 22.1 25.7 18.7 60.4 77.5 O
Slide 9: Consolidated Profit & Loss – Q3FY21
Consolidated Profit & Loss – Q3FY21 As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) Q3FY21 Q3FY20 Q3FY21 Q3FY20 Revenue 178.2 203.7 178.2 203.7 Cost of Goods Sold 108.6 124.8 108.6 124.8 Gross Profit 69.6 79.0 69.6 79.0 Employee Expenses 22.1 25.7 22.1 25.7 Other Expenses 20.9 26.3 29.7 35.9
Slide 10: Consolidated Profit & Loss – 9MFY21
Consolidated Profit & Loss – 9MFY21 As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) 9MFY21 9MFY20 9MFY21 9MFY20 Revenue 370.6 515.0 370.6 515.0 Cost of Goods Sold 222.2 299.6 222.2 299.6 Gross Profit 148.4 215.5 148.4 215.5 Employee Expenses 60.4 77.5 60.4 77.5 Other Expenses 50.4 74.9 75.2
Slide 11: 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. 95.3 Crores and equivalent to the lease liability of Rs. 97.1 Crores as on 31st Dec 2020 • Overall balance sheet will increase by the amount of asset created for Leases. This will h
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Sep-20 Mar-20 Liabilities (Rs. Crs.) Sep-20 Mar-20 Non-current assets 218.8 216.0 Equity 165.4 169.5 Property, plant and equipment 90.9 93.8 Equity share capital 11.7 11.7 Capital work-in-progress 3.1 2.2 Other equity 153.7 157.8 Right-of-use asset 11.9 12.
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-20 Mar-20 Liabilities (Rs. Crs.) Sep-20 Mar-20 Non-current assets 286.7 299.2 Equity 209.1 227.4 Property, plant and equipment 153.7 158.6 Equity share capital 11.7 11.7 Capital work-in-progress 5.0 2.9 Other equity 159.8 174.0 Right-of-use asset 100.
Slide 14: Manufacturing Business Overview
Manufacturing Business Overview 13
Slide 15: 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 16: About Estima AG
About Estima AG Acquired in 2019 • Estima was established as a maker of watch hands in Switzerland in 1924 • It was a leading supplier to Swiss and other European watch brands in the mid-priced segment and About Estima AG enjoyed an excellent reputation • However, over last 10 years, it was unable t
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.) +10% +13% 181 32 176 29 27 146 125 22 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 17 *Excludes the Financial Performance of Estima AG, Switzerland
Slide 19: Ethos Q3FY21 Snapshot
Ethos Q3FY21 Snapshot THE 50 4 FINEST WATCHES 5
Slide 20: Witnessing Strong Recovery Q-o-Q…
Witnessing Strong Recovery Q-o-Q… Revenue (Rs. Crs.)* EBITDA* (Rs. Crs.) PAT (Rs. Crs.) 134.5 15.0 7.7 102.5 9.1 3.3 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Witnessed strong recovery in revenue & profitability sequentially as lockdown restrictions eased during Q3FY21 and store operations normalise
Slide 21: Renewed Strategy for 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 22: Q3FY21 Performance
Q3FY21 Performance Q3FY21 vs Q3FY20 (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) 179.2 159.2 7.7 153.7 134.5 4.7 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Inspite of lower revenue, ETHOS reported strong improvement in PAT in Q3FY21 on the back of cost optimization efforts Fi
Slide 23: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crores)* Q3FY21 Q3FY20 YoY % Q2FY21 QoQ % 9MFY21 9MFY20 YoY % Revenue 137.4 159.2 -14% 107.6 28% 277.8 367.9 -24% Cost of Goods Sold 97.2 114.6 76.1 194.4 263.8 Gross Profit 40.2 44.5 -10% 31.5 27% 83.5 104.1 -20% Margin (%) 29.3% 28.0% 29.3% 30.0% 28.3% E
Slide 24: Consolidated Profit & Loss – Q3FY21
Consolidated Profit & Loss – Q3FY21 As Reported Without INDAS 116 Particulars (Rs. Crores)* Q3FY21 Q3FY20 Q3FY21 Q3FY20 Revenue 137.4 159.2 134.5 159.2 Cost of Goods Sold 97.2 114.6 97.2 114.6 Gross Profit 40.2 44.6 37.3 44.6 Employee Expenses 6.8 8.1 6.8 8.1 Other Expenses 11.2 13.8 15.5 22.3 Norma
Slide 25: Consolidated Profit & Loss – 9MFY21
Consolidated Profit & Loss – 9MFY21 As Reported Without INDAS 116 Particulars (Rs. Crores)* 9MFY21 9MFY20 9MFY21 9MFY20 Revenue 277.8 367.9 265.0 367.9 Cost of Goods Sold 194.4 263.8 194.4 263.8 Gross Profit 83.5 104.1 70.7 104.1 Employee Expenses 19.6 25.5 19.6 25.5 Other Expenses 25.5 33.0 35.5 56
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. 84.2 Crores and lease liability of Rs. 90.5 Crores, as on 31st December, 2020 • Overall balance sheet will increase by the amount of asset created for Leases. This will have an impa
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Sep-20 Mar-20 Equity & Liabilities (Rs. Crores)* Sep-20 Mar-20 Non-current assets 131.8 142.7 Shareholder’s Fund 144.8 152.2 Fixed Assets 31.3 32.2 Share Capital 18.2 18.2 Right of Use 88.4 96.9 Other Equity 126.6 134.0 Financial Assets 7.9 9.3 Other N
Slide 28: Largest Pan India retailer of Luxury Watches
Largest Pan India retailer of Luxury Watches Stores as of Nov-20 47 Addition (1) ❑ Rado Boutique, Lucknow (406 Sq. Ft.) ❑ Multi Brand, Domestic Terminal, Closures (1) Mumbai (1,033 Sq. Ft.) Total Stores 47 We continue to rationalise the store network Open stores in newer locations with higher expect
Slide 29: New Initiatives
New Initiatives Repair and Service Pre-Owned Watches Repair and services over 60 of the World’s Pre-Owned Watches has the potential to expand the volume and top Luxury watch Brands customer base Strap and Bracelet replacement Ethos has the expertise to check the authenticity and to ensure that each
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 11.4% 10.9% 367.9 10.3% 342.2 9.8% 8.9% 250.0 260.4 265.0 9MFY17 9MFY18 9MFY19 9MFY20 9MFY21 9MFY17 9MFY18 9MFY19 9MFY20 9MFY21 EBITDA (Rs. Crs.)* EBITDA Margins* 28.7 8.4% 22.2 6.0% 5.9% 15.6 3.8% 9.9 1.6%
Slide 32: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing 123.4 123.7 40.4% 112.6 98.8 31.0% 32.1% 87.2 28.7% 29.4% 9MFY17 9MFY18 9MFY19 9MFY20 9MFY21 9MFY17 9MFY18 9MFY19 9MFY20 9MFY21 Visitors (‘000) 12,754 10,888 11,624 9,783 7,464 9MFY17 9MFY18 9MFY19 9MFY20 9MFY
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 47 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 TOI … 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