Kddl Limited · NSE:KDDL
Kddl — Q2 FY2019 Earnings Presentation
32 slides from Kddl's earnings presentation, Nov 3, 2018
Slide 1: KDDL Limited & ETHOS Limited Result Update Presentation
KDDL Limited & ETHOS Limited Result Update Presentation November 2018 Q2FY19 & H1FY19
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Limited and Ethos Limited, a subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subsc
Slide 3: Our Performance
z . DW Our Performance
Slide 4: Business Momentum continues
Business Momentum continues Consolidated Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT After MI (Rs. Cr) +36% +119% +929% 302.6 26.7 10.8 221.9 12.2 1.1 H1FY18 H1FY19 H1FY18 H1FY19 H1FY18 H1FY19 Standalone Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT After MI (Rs. Cr) +23% +20% +40% 88.3 16.7 8.3 72.0 13.9 5.9 H1FY1
Slide 5: Profit & Loss
Profit & Loss Consolidated Standalone Rs. Crs H1FY19 H1FY18 YoY% H1FY19 H1FY18 YoY% Revenue 302.6 221.9 36% 88.3 72.0 23% Cost of Goods Sold 178.8 132.4 21.6 17.0 Gross Profit 123.8 89.6 38% 66.7 55.0 21% Employee Expenses 40.6 32.2 25.3 20.9 Other Expenses 56.5 45.2 24.7 20.1 EBITDA 26.7 12.2 119%
Slide 6: Balance Sheet
Balance Sheet Consolidated Standalone Rs. Crs Sep-18 Mar-18 Sep-18 Mar-18 Shareholder’s Fund 205.8 161.6 159.7 130.3 Share Capital 11.3 11.0 11.3 11.0 Reserves & Surplus 157.8 121.0 148.4 119.3 Non Controlling Interest 36.6 29.7 - Non-current liabilities 60.9 49.4 41.0 35.4 Long Term borrowings 56.7
Slide 7: Fund Raising strengthening Businesses
Fund Raising strengthening Businesses KDDL Fund Raise Ethos Fund Raise • Raised Rs. 20cr via 1 2 • Raised Rs. 24cr via Preferential Issue Preferential Issue at pre- money valuation of • Fund raise at a price of Rs. Rs.480cr 480/- per equity share • 50% of amount to be received before 5th December 20
Slide 8: Manufacturing Business Overview
Manufacturing Business Overview
Slide 9: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Hands Value Watch Dials Proposition ▪ Commercial ▪ Deep Understanding ▪ Commercial operations operations began in of the Global Watch began in 1983 Industry ▪ Leading Global supplier 1996 of Watch Dial serving ▪ Only supplier in India ▪ Established
Slide 10: Introduction - Precision Engineering Business
Introduction - Precision Engineering Business Value Proposition Eigen offers a full package of services, ranging from design and development to full scale production, providing customers with optimized supply chain solutions Capabilities We address various segments such as Electrical, Electronics, A
Slide 11: Precision Engineering Expansion
Precision Engineering Expansion Investment Production Capabilities Invested Rs. 30 cr Injection Moulding, over 2 years. Electroplating, ~2 acre land at additional Stamping Bengaluru, capacity and Tool Karnataka Room upgrade Margins Clients Automobiles, Strong RFQs Defence, Hitech domestic & globally
Slide 12: Manufacturing – Profit & Loss
Manufacturing – Profit & Loss Particulars (Rs. Crores) Q2FY19 Q2FY18 YoY % H1FY19 H1FY18 YoY% FY18 Revenue 44.1 39.6 11% 88.3 72.0 23% 145.8 Cost of Goods Sold 10.8 10.7 21.6 17.0 33.7 Gross Profit 33.3 28.9 15% 66.7 55.0 21% 112.2 Employee Expenses 12.6 10.5 25.3 20.9 42.7 Other Expenses 12.3 10.6
Slide 13: Stable Manufacturing Performance
Stable Manufacturing Performance Revenue (Rs. Crs) EBITDA (Rs. Crs) +6% 146 27 +11% 25 127 125 22 112 21 21 96 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 13
Slide 14: Ethos Overview & Performance
Ethos Overview & Performance
Slide 15: Strong Performance Continues
Strong Performance Continues H1FY19 vs H1FY18 Billings (Rs. Cr) Revenue (Rs. Cr) +37% +38% 245.8 211.6 179.4 153.9 H1FY18 H1FY19 H1FY18 H1FY19 Normalized EBITDA (Rs. Cr) PAT (Rs. Cr) +161% +2,426% 2.8 13.6 0.5 H1FY18 H1FY19 H1FY18 H1FY19 15 -4.6
Slide 16: Ethos – Reconciliation to Normalised EBITDA
Ethos – Reconciliation to Normalised EBITDA Particulars (Rs. Crores) H1FY19 H1FY18 Revenue 211.6 153.9 Cost of Goods Sold 156.3 119.8 Employee Expenses 14.4 10.7 Other Expenses 27.3 22.8 Normalized EBITDA 13.6 0.5 Normalized EBITDA % 6.4% 0.4% Forex Items 2.3 1.4 Credits written off - 0.6 Provision
Slide 17: Ethos – Profit & Loss
Ethos – Profit & Loss Particulars (Rs. Crores) Q2FY19 Q2FY18 YoY % H1FY19 H1FY18 YoY % FY18 Revenue 110.9 54.8 102% 211.6 153.9 38% 357.7 Cost of Goods Sold 83.0 39.5 156.3 119.8 271.8 Gross Profit 27.8 15.3 82% 55.3 34.1 62% 86.0 Employee Expenses 7.4 5.4 14.4 10.7 22.6 Other Expenses# 15.3 11.5 30
Slide 18: Ethos - Balance Sheet as per IND-AS
Ethos - Balance Sheet as per IND-AS Rs. Crs Sep-18 Sep-17 Shareholder’s Fund 106 67 Share Capital 16 14 Reserves & Surplus 90 53 Non-current liabilities 13 13 Long Term borrowings 12 12 Long Term Provisions 2 1 Current liabilities 147 156 Short Term Borrowings 43 50 Trade Payables 81 90 Other Curren
Slide 19: Ethos - Performance Trend
Ethos - Performance Trend* Revenue (Rs. Crs) +38% Front-end Rent & Manpower Cost as % of Revenue# 211.6 13.5% 12.6% 12.3% 11.6% 157.0 153.9 10.5% 148.3 118.1 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 EBITDA (Rs. Crs) +854% EBITDA Margin (%) 10.4 4.9% 6.0 4.0% 3.6% 4.2 0.1
Slide 20: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billing (Rs. Crs) Online – as % of Total Billing +30% 74.6 31.1% 32.1% 30.4% 28.4% 55.3 57.5 22.8% 47.1 30.2 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 Visitors on website (‘000) +14% 6,846 6,010 4,946 3,527 2,575 H1FY15 H1FY16 H1FY17 H1FY
Slide 21: Ethos - Repeat Sales Trend
Ethos - Repeat Sales Trend Club ECHO – Member Base Repeat Billings (Rs. Crs) 200,480 85.3 184,891 154,357 124,777 52.3 32.5 30.5 Mar’16 Mar’17 Mar’18 Sep’18 H1FY16 H1FY17 H1FY18 H1FY19 21
Slide 22: New Store Opening in Chennai
New Store Opening in Chennai Oris Boutique, Palladium Mall, Chennai Multi Brand Boutique, Palladium Mall, Chennai 22
Slide 23: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 46 stores Ludhiana Chandigarh Presence across Metros, Tier I, Tier II cities New Delhi Gurugram Noida Jaipur Lucknow 1 Duty Paid Retail Outlet at Domestic Bhopal Terminals Ahmedabad Indore Nagpur Pune 2
Slide 24: Regulatory Headwinds of the Past…
Regulatory Headwinds of the Past… JAN - 16 NOV - 16 FEB - 18 Requirement of Pan JUN - 16 Demonetization of Increase in Cards for transactions Tax Collection at high value currency NOV - 17 Customs Duty on higher than Rs. 2 lakh Source requirement for GST rate revision Imported Watches all cash trans
Slide 25: thus validating our Business Strategy
thus validating our Business Strategy Exclusive New Store Digital Right Mix Brands Strategy ▪ Higher share of ▪ Targeting to open new ▪ Leverage on our Digital ▪ Targeting to have a Business from stores in Tier 2 cities platform to drive sales right mix of Brands at Exclusive Brands and customers al
Slide 26: 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 with Knowledgeable staff to ensure Brands will make it a ‘1 Stop Luxury watches retailing in highest customer satisfaction Shop’ fo
Slide 27: With an Asset Light Model…
With an Asset Light Model… Improve Return On Capital Employed Operating Leverage Playing Out Reduce Front-End Cost like Manpower and Rental expenses Maximize Reach Expand catchment area of offline store, leading to higher revenue Minimize Investment Focus on Online Presence & Rationalize Store Prese
Slide 28: and Continued Investments in Advertising…
and Continued Investments in Advertising… Print Ads in leading newspapers… … with ETHOS co-branding 28
Slide 29: and TRUST CAMPAIGN across channels…
and TRUST CAMPAIGN across channels… … to Educate consumers about Watches … to Create Awareness about unscrupulous activities … To Reinforce our “ETHOS” 29
Slide 30: to emerge as India’s Largest Swiss Watch Retailer…
to emerge as India’s Largest Swiss Watch Retailer… The Largest & Preferred Retailer of Swiss Watches in India Forayed in Watch Retailing Started as a Watch Components Manufacturer 30
Slide 31: Offering the best Watch Brands under one roof
Offering the best Watch Brands under one roof The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 31
Slide 32: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Ethos Ltd. CIN : U52300HP2007PLC030800 CIN : U74140MH2010PTC204285 Mr. C. Raja Sekhar Mr. Shogun Jain/ Ms. Payal Dave +91 7738377756 / +91 9819916314 [email protected] [email protected] / payal.dave@sgapl.