Result update presentation Q2 FY16 [Company Update]
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Transcript of Result update presentation Q2 FY16 [Company Update]
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8/20/2019 Result update presentation Q2 FY16 [Company Update]
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KDDL Limited
ETHOS LimitedResult Update Presentation
Q2 FY16
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8/20/2019 Result update presentation Q2 FY16 [Company Update]
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This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Limited (the “Company”),
solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. Nooffering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusiveand may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any
omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. Theserisks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of variousinternational markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as
well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and
projections.
Safe Harbor
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Continue to Grow Sustainably - H1 FY16 Consolidated
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15%Revenue
Rs. 211 Crs
4%EBITDARs.17 Crs
38%Cash PATRs. 12 Crs
22%PAT after MIRs. 7 Crs
1.9xPAT after MI Margin3.2%
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Performance Highlights - H1 FY16 Ethos
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26%Revenue
Rs. 148 Crs
41%EBITDARs. 6 Crs
43 bpsEBITDA Margin4.0%
77%Cash PATRs. 2 Crs
18%Same Store
Billing Growth
28%Revenue from Online
Lead Generation
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Strong Performance by Ethos in an “Off -Season”
5
118
148
163
H1
H2
FY15 FY16
1
2
5
H1
H2
FY16FY15
Revenue (Rs. Crs) Cash PAT (Rs. Crs)
(58%)
(42%)
(18%)
(82%)
-0.7
0.1
3.1
H1
H2
FY16FY15
PAT (Rs. Crs)
(-31%)
(131%)
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Focus onOnline
Presence
RationalizeStore Presence
MinimizeInvestment
Reduce Front-End Cost like
Manpower andRental
expenses
OperatingLeverage
Playing Out
ImproveReturn On
CapitalEmployed
Expandcatchment
area of offlinestore, leading
to higherrevenue
MaximizeReach
Asset Light Model In Ethos...
6
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148
118
92
72
+26%
H1 FY16H1 FY15H1 FY14H1 FY13
Growing Revenue (Rs.Crs)
H1 FY16
-90 bps
13.5%
15.4%
H1 FY15
12.6%
H1 FY14H1 FY13
15.0%
Reducing Front-end Rent & ManpowerCost as % of Revenue
Improving EBITDA Margin (%)
4.0%3.6%
2.8%
3.5%
H1 FY15H1 FY13 H1 FY14
+43 bps
H1 FY16
... Improving Returns
6.0
4.2
2.6 2.6
H1 FY14H1 FY13 H1 FY16
H1 FY15
+41%
Improving EBITDA (Rs.Crs)
7
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47
30
6
16
H1 FY15H1 FY13
+56%
H1 FY14 H1 FY16
+560 bps
H1 FY15 H1 FY16H1 FY14H1 FY13
23%
15%
8%
28%
3,527
2,575
1,314
413
H1 FY13 H1 FY14 H1 FY15
+37%
H1 FY16
Online Billing (Rs. Crs) Online – as % of Ethos Revenue
Visitors on website (‘000)
... With Growing Online Sales
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... & Focus towards Investing in Advertising...
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…with ETHOS co-branding
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TRUST CAMPAIGN across channels...
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… To Reinforce our “ETHOS”
… to Educate consumers about Watches
… to Create Awareness about unscrupulous activities
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Pan-India Presence with Offline Store Network...
Map for Illustration purpose only
LudhianaChandigarh
GurgaonNew Delhi
AhmedabadBhopal
Nagpur
Mumbai
Hyderabad
Bengaluru Chennai
Amritsar
SuratVadodara
India’s Largest retail chain of Luxury
Watches with 41 stores
Presence across Metros, Tier I, Tier IIcities
Store Selection Criteria :Reputed /Pedigree Mall atPremium location where otherPremium brands present andhaving better facilitymanagement
3 Duty Paid Retail Outlets atDomestic Terminals
3 Duty Free Retail Outlets atInternational Terminals
11
Thane
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Consolidated – Profit & Loss StatementRs.Crs Q2 FY16 Q2 FY15 YoY % H1 FY16 H1 FY15 YoY% FY15
Revenue 110 98 12% 211 183 15% 412
Cost of Goods Sold 66 54 123 102 240
Employee Expenses 16 15 31 28 58
Other Expenses 19 19 39 37 75
EBITDA 9.6 11.1 (13%) 17.4 16.7 4% 39.0
EBITDA Margin 8.7% 11.2% 8.3% 9.1% 9.5%
Other Income 3.1 0.9 4.1 1.8 2.0
Interest 3.9 4.3 8.0 8.1 15.3
Depreciation 2.9 3.0 5.7 6.0 11.8
PBT 5.9 4.7 7.7 4.4 13.9
Tax 0.4 1.6 0.8 1.5 5.0
PAT After MI 5.3 3.0 77% 6.6 3.0 122% 8.8
PAT after MI Margin 4.8% 3.0% 3.2% 1.6% 2.1%
Cash PAT 8.2 6.0 37% 12.4 9.0 38% 20.6
Cash PAT Margin 7.4% 6.1% 5.9% 4.9% 5.0%
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Rs. Crs Sep-15 Mar-15
Shareholder’s Fund
Share capital 10 9
Reserves & Surplus 79 42
Minority Interest 32 25
Non-current liabilities
Long term borrowings 30 36
Deferred Tax Liabilities 2 3
Long Term Provisions 6 5
Current liabilities
Short term borrowings 62 71
Trade Payables 82 86
Other current liabilities 45 41
Total Liabil ities 347 318
Non-current assets
Fixed assets 74 77Long-term loans and advs. 1 1
Other non current assets 19 17
Current assets
Inventories 188 169
Trade receivables 21 25
Cash and bank balances 28 13
Short-term loans and advs. 17 17Total Assets 347 318
Consolidated – Balance Sheet
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Profit & Loss Statement - EthosRs.Crs Q2 FY16 Q2 FY15 YoY % H1 FY16 H1 FY15 YoY% FY15
Revenue 79 63 25% 148 118 26% 281
Cost of Goods Sold 59 46 110 87 209
Employee Expenses 5 4 10 8 17
Other Expenses 11 10 23 20 41
EBITDA 4.0 3.6 10% 6.0 4.2 41% 14.3
EBITDA Margin 5.0% 5.7% 4.0% 3.6% 5.1%
Other Income 0.0 0.1 0.1 0.1 0.1
Interest 2.1 1.9 4.0 3.6 7.1
Depreciation 0.9 1.0 1.8 1.8 3.8
PBT 1.0 0.8 0.2 -1.1 3.5
Tax 0.3 0.3 0.1 -0.4 1.2
PAT 0.7 0.5 29% 0.1 -0.7 117% 2.4
PAT Margin 0.8% 0.8% 0.1% -0.6% 0.8%
Cash PAT 1.6 1.5 9% 1.9 1.1 77% 6.1
Cash PAT Margin 2.0% 2.3% 1.3% 0.9% 2.2%
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Rs. Crs Sep-15 Mar-15
Shareholder’s Fund
Share capital 31 31
Reserves & Surplus 24 20
Non-current liabilities
Long term borrowings 8 8
Long Term Provisions 1 1
Current liabilities
Short term borrowings 49 46
Trade Payables 71 70
Other current liabilities 24 12
Total Liabil ities 209 189
Non-current assets
Fixed assets 13 14
Long-term loans and advs. 13 11Deferred Tax Asset 1 1
Current assets
Inventories 166 147
Trade receivables 2 3
Cash and bank balances 6 5
Short-term loans and advs. 8 7
Total Assets 209 189
Ethos – Balance Sheet
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Company Overview
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StableManufacturing Business
Leading supplier of premiumwatch components - watchdials and watch hands
Caters to demand frominternational brands inSwitzerland & India
Engaged in manufacturing ofof High Precision StampingParts & Precision
CAGR of 13% over FY11 –FY15
ScalableRetail Business -ETHOS
India’s Largest Retail Chain of
Luxury Watch Studios
Authorized retailer of over 60luxury watch brands, rangingfrom Rs. 5,000 to more thanRs.20,00,000
41 premium watch boutiquesacross country
CAGR of 33% over FY11 -FY15
80% subsidiary of KDDL Ltd
Business Overview
71%29%
17*Figures updated as on date
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Stable Manufacturing Performance
96111
127
FY13 FY14 FY15
CAGR + 15%
Revenue (Rs.Crs)
12
2125
13%
19%20%
-2%
3%
8%
13%
18%
23%
-
5
10
15
20
25
30
FY13 FY14 FY15
CAGR + 44%
EBITDA (Rs.Crs)
18
96
111
127
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Scaling-Up Retail Performance
19
90
127157
184213
17
36
68
FY11 FY12 FY13 FY14 FY15
Offline Online
17.1%17.9%
17.3%17.9%
16.1%
9.2%
8.8%
9.6%
8.9%
9.6%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
10.0%
12.0%
14.0%
16.0%
18.0%
FY11 FY12 FY13 FY14 FY15
Front End expenses as % of SalesEBITDA Margin before Central Expenses
Increasing Online Revenue... ... Improved Absorption of Fixed Expenses
Rs. Crs
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