KDDL Limited Result Update

Transcription

1 KDDL Limited Result Update Q1 FY15 India s largest retailer for luxury watches

2 Safe Harbor 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. No offering 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 inclusive and 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. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international 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 forwardlooking 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.

3 Consolidated Performance Highlights - Q1 FY15 Revenue of Rs. 85 Crs, growth of 27% YoY Retail revenue at Rs. 55 Crs Manufacturing revenue at Rs.30 Crs 67 Revenue (Rs. Crs) 85 Gross Profit at Rs.37 Crs, margin of 44%% EBITDA of Rs. 5.6 Crs, growth of 45% YoY Q1FY14 Q1FY15 Margin expanded by 81 bps YoY Significant impact of change in useful life of asset, as per Companies Act 2013 PAT after MI (Rs. Crs) -0.0 Net Loss after Minority Interest for the quarter at Rs. 1 Lakh Improvement over Q1FY14 net loss of Rs.0.96 Crs -1.0 Q1FY14 Q1FY15

4 Standalone Performance Highlights - Q1 FY15 Revenue of Rs. 30 Crs, growth of 20% YoY Revenue (Rs. Crs) 30 On account of healthy order position Gross Profit at Rs. 23 Crs, increase of 25% YoY 25 Gross Profit Margin at 76.3%, expansion of 287 bps YoY Q1FY14 Q1FY15 EBITDA of Rs. 5 Crs, growth of 42% YoY EBITDA margin at 16.4%, expansion of 250 bps YoY PAT (Rs. Crs) 1.0 Net Profit of Rs. 1 Cr, growth of 313% YoY Net Profit Margin of 3%, expansion of 231 bps YoY 0.2 Q1FY14 Q1FY15

5 Ethos - Q1FY15 : Improving Performance Revenue (Rs.Crs) Growth of 34% YoY Front-End Rent & Manpower Cost as % of Sales Reduced by 214 bps YoY % 15.9% 16.7% % Q1FY12 Q1FY13 Q1FY14 Q1FY15 Q1FY12 Q1FY13 Q1FY14 Q1FY15 EBITDA (Rs.Crs) Growth of 62% YoY EBITDA Margin(%) Expanded by 117 bps YoY Net Loss as % of sales Contracted to 2.31% YoY % 5.7% 5.5% 6.7% -2.8% -2.3% Q1FY12 Q1FY13 Q1FY14 Q1FY15 * EBITDA before Central expenses Q1FY12 Q1FY13 Q1FY14 Q1FY15-4.7% -5.4% Q1FY12 Q1FY13 Q1FY14 Q1FY15

6 Growing Online Sales Online Billing (Rs. Crs) 14 Online as % of Ethos Revenue 22.3% % 13.5% Q1FY13 Q1FY14 Q1FY15 Q1FY13 Q1FY14 Q1FY15 Visitors on website ( 000) Leads Generated (#) 1,158 32, , Q1FY13 Q1FY14 Q1FY15 Q1FY13 Q1FY14 Q1FY15

7 Through our specialized network 43 Stores presence across India Ahmedabad Vadodara Surat Mumbai Amritsar Gurgaon Pune Bangalore Ludhiana Chandigarh New Delhi Bhopal Nagpur Hyderabad Chennai Presence in Metros, Tier I & Tier II cities Store selection preference : Reputed /Pedigree Mall at Premium location where other Premium brands present and having better facility management 8 Airport Stores at Duty Free Zone & Domestic Terminal at Bengaluru, Delhi, Mumbai, Hyderabad & Ahmadabad Map for Illustration purpose only

8 Key Indicators Billing Growth% Same Store - Billing Growth% 40% 39% 27% 34% 29% 29% 18% 11% Q1FY12 Q1FY13 Q1FY14 Q1FY15 Q1FY12 Q1FY13 Q1FY14 Q1FY15 % Repeat Sales Club ECHO Member Base 66,962 72,608 23% 24% 25% 20% 33,331 50,517 Q1FY12 Q1FY13 Q1FY14 Q1FY15 FY12 FY13 FY14 3M FY14

9 New Store Openings Opened WSI by Ethos Store in Trillium Mall, Amritsar in May 14 In collaboration with Fossil Group Spread over 300 sqft of area Offers 9 premium watch brands Opened WSI by Ethos Store at Inorbit Mall, Vadodara in July 14 In collaboration with Fossil Group Spread over 730 sqft of area Offers 9 premium watch brands Partnered with Nuance Group to operate Master of Time at Mumbai T2 Airport At Duty-Free Retail Offering consists of luxury watches Pic - Amritsar Ethos Store Closures : Bangalore, Bhopal, Hyderabad

10 Ethos - Profitability Highlights Rs.Crs Q1 FY15 Q1 FY14 YoY% Revenue % Cost of Goods Sold Employee Expenses 4 3 Other Expenses 10 7 EBITDA % EBITDA Margin 1.2% 0.8% Other Income 0 0 Interest & Finance Charges 2 1 Depreciation 1 0 Prior Period Adjustments 0 0 PBT (2) (1) Tax (1) 0 PAT (1) (1) (9%) PAT Margin (2.3%) (2.8%)

11 Consolidated - Profitability Highlights Rs.Crs Q1 FY15 Q1 FY14 YoY% FY14 Revenue % 335 Cost of Goods Sold Employee Expenses Other Expenses EBITDA % 30 EBITDA Margin 6.6% 5.8% 9.0% Other Income Interest & Finance Charges Depreciation PBT (0.3) (1.3) 11 Tax (0.1) (0.1) 2 PAT after MI (0.01) (0.96) 99% 9 PAT Margin (0.0%) (1.4%) 2.5%

12 Company Overview

13 Led by Experienced Team Mr. Yashovardhan Saboo Chief Executive Officer Set up KDDL in 1983 & led the company to attain market leadership in India, successfully exporting to Switzerland and Hong Kong Founding Member of All India Federation of Horological Industries (AIFHI) Alumnus of IIM (A), with more than 30 yrs of experience in watch industry Mr. Sanjeev Masown - CFO, KDDL M.Com & Cost and Management Accountant (CMA), with more than 23 years of experience across industries Mr. C. Raja Sekhar - CFO, Ethos B.E.(Mechanical) with MBA in Finance With more than 15 yrs of experience in watch industry, in manufacturing and retail areas Mr. Dinesh Agrawal - COO, KDDL Mechanical Engineer with more than 38 years of experience Part of Management team since 1983 Mr. P. Rajendran - Operations Head [Ethos] MBA in Marketing, with more than 26 years experience in retail, has held national level leadership roles at various MNCs Mr. Gregor Fiala - CMO, KDDL MBA with Experience of 20 years across Industries, with 7 yrs as Managing director of an MNC in India Mr. Manoj Gupta - Operations Head [Summit] More than 20 years of experience, leading marketing & sales teams in international watch markets

14 Business Overview KDDL 73% Subsidiary Ethos Leading supplier of high quality watch components for international brands in Switzerland & India Manufacturing facilities Watch Dial - 3 manufacturing plants with capacity of over 4.5 mn pcs Watch Hands - 2 manufacturing plants with over 47 mn capacity EIGEN : Precision Stamping Division Offers high precision press component and tooling solution Wide range of engineering applications India s Largest Retail Chain of Luxury Watch Studios Authorized retailer of over 60 luxury watch brands through 45 premium watch boutiques across Country Online marketing - Effective use of large social network and business development platforms Distinct retail formats addressing various market segments Luxury & Prestige Exclusive Boutiques Airport Boutiques

15 Evolution Watch Component Manufacturer Started Production of Watch Dials Began production of Watch Hands 2003 EIGEN Precision Stamping Division established India s Largest Retailer of Luxury Watches Ventured into Retailing of Luxury Watches - Launch of ETHOS Established strong network of 43 Premium Watch Boutiques across country E-Tailing Commenced marketing through online portal... enhancing focus and Strengthening E-Commerce platform

16 Retail Consistently Growing at faster pace Revenue FY 2009 Rs. 116 Crs Revenue FY 2014 Rs. 335 Crs Retail 45 39% Other 3 2% Manufa cturing 68 59% Retail % Manufa cturing % Other 3 1%

17 India s largest Retailer for Luxury Watches Ethos

18 Consistent Growth in Revenue No. of Stores (#) Revenue Rs.Crs ~16% through E-Tailing Store presence increased to 45 stores as on Mar-2014

19 Mature stores growing profitably % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Average Sales per store (Rs.Crs) EBITDA Margin% 10.2% 11.1% 9.7% 9.8% 6.6% No. of Stores# with Average sales per store growing at CAGR of 26% over last 4 years, with EBITDA margins expanding gradually Mature store : store operational for more than 2 Years ; EBITDA before central expenses

20 Watch Component Manufacturing

21 Watch Component Manufacturing - Consistent performance Revenue EBITDA Rs.Crs

22 For further information, please contact: Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC Mr. C. Raja Sekhar rajasekhar@ethoswatches.com / Strategic Growth Advisors Pvt. Ltd. CIN : U74140MH2010PTC Ms. Sanjita Ghosh / Mr. Shogun Jain gsanjita@sgapl.net / jshogun@sgapl.net