Vaibhav Global Limited has informed the Exchange about Investor Presentation
VAIBHAV GLOBAL LIMITED
Ref: VGL/CS/2022/45
Date: 23rd May, 2022
National Stock Exchange of India Limited (NSE) Exchange Plaza, C-l, Block G, Bandra Kurla Complex, Bandra, Mumbai - 400 051 Symbol: VAIBHAVGBL
Subject: Financial Results Presentation
Dear Sir / Madam,
BSE Limited Phiroze JeejeeBhoy Towers, Dalai Street, Mumbai-400 001 Scrip Code: 532156
Pursuant to regulation 30(6) of the SEBI (LODR) Regulations, 2015 please find enclosed Financial Results Presentation of Q4 & FY 2022.
Kindly take the same on record.
Thanking you,
Yours Truly,
For Vaibhav GlobaltLin)i
Sushil Sharma Company Secretary V/5
E-69, EPIP, Sitapura, Jaipur-302022, Rajasthan, India | Tel.: 91-141-2771948/49, Fax : 91-141-2770510
Regd. Office : K-6B , Fateh Tiba, Adarsh Nagar, Jaipur-302004, Rajasthan, India | Tel.: 91-141 -2601 020, Fax : 91 -1 41 -2605077 CIN : L3691 1 RJ1 989PLC004945 | Email: investor_relations@vaibhavglobal.com | Website : www.vaibhavglobal.com
Vaibhav Global Limited
Global E-tailer of Fashion Jewellery, Apparels, Lifestyle Products and Accessories on TV and Digital Platforms
DELIVERING JOY
Q4 & FY22
Financial Results Presentation
Commenting on Q4 FY22 Performance
We delivered revenue of Rs. 685 crores for fourth quarter, up by 2.9% Y-o-Y and closed the fiscal year with 8.4% revenue growth, which is in line with the guidance we set out in Q3. The revenue growth is more encouraging when we compare it with Q4 of FY20 and full year FY20 which is 37.6% and 38.6% respectively. We maintained our gross margins at 60.0% in Q4 and 62.3% for FY22, which is at par with FY21. Our industry leading margins are made possible because of high margin product mix, efficient price management, efficient planning, in-house manufacturing and wide sourcing base.
MD’s Message
Mr. Sunil Agrawal Managing Director Vaibhav Global Limited
FY22 was a year of investments for us wherein we made long-term investments in building our digital competencies, automation, channel upgrade and Geographical expansion. We continued with our planned investments in new OTA homes, elevated digital marketing spends on OTT’s, social media search and third party marketplaces. We believe these investments to be necessary for future growth. We also invested in our tech infrastructure and upgraded our website in US and mobile & OTT apps in US & UK. In UK, our freeview channel upgradation to #22 from erstwhile channel 50 is yielding improved viewership and increased new customer acquisition. Implementation of robotic automation at our UK and US warehouses have started to yield positive results, with complete benefits accruing in coming quarters. Germany has also been faring well and its performance has been as per our plans. We continue with our guidance to achieve breakeven in Germany by H2 of FY24. During the quarter, Shop LC has finalised architect for its upcoming headquarters in Austin, Texas with expected completion by H2 of FY24. This investment is expected to provide cost optimization, functional integration, and resultant growth opportunities. VGL group has also completed acquisition of Encase Packaging Private Limited, this acquisition will further strengthen our supply chain network providing requisite flexibility and cost advantage.
Our vertically integrated supply chain network spanning ~30 countries is the backbone of our business and a key differentiator vis-à-vis our peers. Further, the 4R’s- widening Reach, new customer Registrations, customer Retention and Repeat purchases remains to be our key priorities for overall growth. The reach of our TV networks by the end of Q4 FY22 was ~124 million TV homes which is 19% higher YoY. New registrations in trailing 12-month period came in at 3.2 lakhs which is slightly lower YoY. However, the numbers are significantly higher by 79% over FY20. As of the end of FY22, we registered an average purchase of 27 pieces on TTM basis by our customers which is at par with FY21. Our customer retention rates stood at 40% on TTM basis. The retention ratio is lower YoY as last year had a wider base of customer who bought essential items. Recently, VGL has been conferred with IGJ Award by The Gem & Jewellery Export Promotion Council (GJEPC) for being the highest exporter of silver jewellery from India and this is the sixth time in a row that VGL has won this award. Sustainability is at the core of everything we do and the same is reflected in our mission and guides our decisions and actions. In our One for One mid-day meal program- Your Purchase Feeds….we have crossed a milestone of 63 million meals with a run rate of 59,000 meals donated every single school day.
While the greater economy is grappling through inflationary pressures, demand and cost challenges, we being value player, we are optimistic on medium and long-term growth journey of VGL and would like to reiterate that our long-term investments will support our growth ambitions. We are confident to combat the inflationary challenges and deliver continued growth and expect current financial year to have mid-single digit revenue growth. However, our outlook for medium to long term remains unchanged and we are confident to maintain and deliver our original guidance of mid-teens growth. We have a healthy cash and bank balance which we will deploy prudently considering future growth drivers and efficient operations. The Board has paid dividends of Rs. 4.50 per equity share during first 9 months of FY22 and have further recommended final dividend of Rs.1.50 per equity share.
Q4 FY22 : KEY HIGHLIGHTS
Revenues grew by 2.9% Y-o-Y (annual growth of 8.4% over FY21)
Gross margins continue to be strong at 60%
EBITDA margins in Q4 FY22, excluding Germany, were at 8.9% vs 12.8% in Q4 last year. Margins impacted owing to conscious investments in digital marketing and OTA segment
Healthy base of Unique Customers (TTM basis) of 4,97,459 vis-à-vis 5,01,169 for same period last year which also had a decent proportion of customers who bought essential items
Healthy Return Ratios: ROCE of 31% and ROE of 23% (TTM basis)
Seeding investments for future on Digital Platforms and Automation
Consistently Gaining Market Share
Recommended final dividend of Rs. 1.50 per equity share making annual dividend to be Rs. 6.00 per equity share
Conferred with ‘IGJ Award 2020’ for being highest exporter of Silver Jewellery from India-for 6th consecutive year
Provided 63 million meals since inception of one-for-one meal program ‘Your Purchase Feeds…’
Results Presentation, May 2022
3
TABLE OF CONTENTS
DELIVERING JOY
1
2
3
4
5
Business Background Details
Highlights for the Quarter
Q4 & FY22 Financial Performance
Financial Performance Trends
Annexures
4
BUSINESS BACKGROUND DETAILS
Results Presentation, May 2022
5
VAIBHAV GLOBAL LIMITED (VGL) AT A GLANCE
VISION
Be the Value Leader in Electronic Retailing of Jewellery & Lifestyle Products
MISSION
To deliver one million meals per day to children in need by ‘FY31’ through our one for one meal program : ‘Your Purchase Feeds…‘
Team-Work
Honesty
Commitment
Passion
Positive Attitude
CORE VALUES
Results Presentation, May 2022
6
CORPORATE OVERVIEW
Vertically- integrated fashion on retail platforms
retailer electronic
> End-to-end B2C business model > Presence on
- Proprietary TV home-shopping - Proprietary e-commerce platforms - Social - Third-party Marketplaces
Shop LC (US), Shop TJC (UK) LC Shop and are (Germany) brands with strong customer visibility
> TV Homes accessed (*FTE): ~ 124 mn > Growing online presence > Improving customer engagement metrics
Strong management and governance
> Professional management team > Strong and Independent Board > B S R & Co. LLP – Global Auditor > Deloitte – Internal Auditor
one
one Exceptional for social program – ‘Your Purchase Feeds…’
> Every piece sold results in one meal for a
school-going child
> Provided 63 mn meals across India, US,
UK and Germany
Solid infrastructure backbone
> Continued investment in building digital
capabilities
> Scalable model with limited capex
requirement
Robust customer engagement
> Omni-channel B2C retail presence > Growing recognition of deep value fashion jewellery enables scaling to adjacent categories
*FTE: Full Time Equivalent
Results Presentation, May 2022
7
TRULY GLOBAL
UK
Germany
US
China
India
Retail Markets
Sourcing Countries
Manufacturing Countries
Retail Markets
Shop LC | Shop TJC | Shop LC (Germany) (UK)
(US)
Operate Through Marketplaces
Canada
Sourcing
▪ India ▪ China ▪ Thailand ▪ Indonesia ▪ Tanzania ▪ Russia ▪ Morocco ▪ Myanmar ▪ Madagascar ▪ Bolivia ▪ Kenya ▪ South Korea ▪ Vietnam ▪ Brazil ▪ Sri Lanka ▪ US
▪ UK ▪ Mozambique ▪ Germany ▪ Italy ▪ Turkey ▪ Poland ▪ Singapore ▪ UAE ▪ Japan ▪ Bangladesh ▪ Philippines ▪ Czech Republic ▪ Taiwan ▪ Australia ▪ Bhutan
Manufacturing Countries
India | China
Results Presentation, May 2022
8
COMPLETING 25 YEARS OF PUBLIC LISTING
Growing Consistently
Top decile returns to shareholders
Parameters (Rs. in crores)
Revenue
EBITDA
Profit Before Tax
Profit After Tax
Net Worth
FY 97
FY 22
CAGR (25 years)
Return (x times)
32.8
4.2
4.1
3.6
17.7
2,752.4
303.2
242.3
237.1
1,126.8
19.4%
18.7%
17.7%
18.2%
18.1%
84
72
59
66
64
26.1% CAGR in Market Capitalization since IPO (331 times), excluding dividend
Results Presentation, May 2022
KEY PILLARS
Results Presentation, May 2022
2 POOLS OF PRODUCT VERTICALS
Huge Opportunity: TAM of ~USD 350bn
Fashion Jewellery, Gemstones & Accessories
Life-Style, Home Décor, Beauty Care, Apparels & Accessories
Results Presentation, May 2022
VERTICALLY INTEGRATED SUPPLY CHAIN
ASIAN BASE
Serving
WESTERN COUNTRIES
➢ Vertically integrated supply-chain in Asia ➢ Low-cost manufacturing and value sourcing base ➢ Serving affluent but value-conscious customers in
Western Developed Markets
Primary Retail Markets
China
Thailand
Bali
Hong Kong
India
USA
UK
Germany
R e s u l t i n g i n I n d u s t r y L e a d i n g H i g h e s t G r o s s M a r g i n s
Results Presentation, May 2022
OMNI-CHANNEL SALES PLATFORM
TV Proprietary TV channels and OTAs
US
UK
GERMANY
Proprietary Digital Platform
DIGITAL
Mobile Applications
www.shoplc.com www.tjc.co.uk www.shoplc.de
HH: 69.6mn OTA: 19mn
27mn 18mn
27mn*
* Including 2mn HH in Austria
Third Party Marketplaces
Social Retail
Google Marketplace
Note: OTA – Over the Air; HH - Households
Note: OTT – Over the Top
Results Presentation, May 2022
OTT Platforms
4R’S OF CUSTOMER ENGAGEMENT
~124 mn
TV Linear / OTA
Digital Browsers / Mobile Apps / Social Media / Market-places / OTT
Reach (HH)
3.2 lakh (TTM)
Diverse Products
Deep value proposition
Engrossing Content
40% (TTM)
Enduring relationships
Convenience
Digitalization/AI
27*(TTM)
Expanding wallet share
Cross-selling
Registrations
Retention
Repeat Purchases
*FTE: Full Time Equivalent All data points are for US and UK except for HH and Registration which includes figures of Germany as well
Results Presentation, May 2022
14
‘DELIVERING JOY’ THROUGH INNOVATION
A Global product innovation and search program
Crowdsourcing of ideas from employees, customers and other external stakeholders
YTD 11,500+ ideas received and 860+ new and innovative products launched
A
for
outside
launchpad
* innovators and product owners * 1200+ ideas received across 38 countries * 11 shortlisted and 3 already went live on channels in US and UK
entrepreneurship
* Launch of “SPARK” incubator program to foster the organization * Out of 63 ideas, Best 5 ideas shortlisted for incubation
within
INNOV8 FUNNEL
Ideas Received
Ideas Proposed to Buyers
Orders Placed
Ideas Approved by Buyers
Products sold at channels
Innovation Segment:
FY22 Revenue: $17mn (~5% of group revenue) FY21 Revenue: $3.5mn (~1% of group revenue)
Results Presentation, May 2022
15
CONSTANTLY REIMAGINING GROWTH WITH NEW DESIGNS & PRODUCTS
Jewellery Design
Gemstones
➢ Deals in 250+ gemstones including rare gemstones
➢ Widest possible global sourcing
➢ New gemstones contributing 3%-4% of group’s annual
turnover
➢ Strengths:
▪ In-house Testing Lab & Manufacturing ▪ Employees trained at globally benchmarked institutes
Few examples of highest selling new gemstones in FY22:
➢ Strong team of professional designers
➢ ~24,000 new designs proposed annually
➢ ~60% acceptance rate of new designs
Few examples of highly successful designs:
Hanabi Cut Ring
Rhapsody Platinum Tanzanite Ring
Turkizite ™ Sales: $ 7.03 Mn
Teal Grandidierite Sales: $ 1.20 Mn
Rubellite Sales: $ 1.06 Mn
Ethiopian Emerald Sales: $ 860K
Results Presentation, May 2022
BROAD BASED E-TAILER
B2C Revenues by Format
B2C Revenues by Product Category
TV revenues
Digital revenues
Jewellery
Non-jewellery revenues
22%
78%
FY17
36%
64%
FY21
37%
63%
FY22
60.4% of digital revenues in FY22 were from Mobile platform (mobile app + mobile web browser)
11%
89%
31%
69%
30%
70%
FY17
FY21
FY22
Jewellery revenues: Fashion jewellery, Gemstones and Accessories Non-jewellery revenues: Lifestyle products, Home Décor, Beauty Care, Hair Care and Accessories
B2C Revenues by Geography
Budget Pay penetration of B2C Revenues
US
UK
Germany
Non-Budget Pay revenues
Budget Pay revenues
24%
76%
31%
69%
1% 31%
68%
23%
77%
36%
64%
39%
61%
FY17
FY21
FY22
FY17
FY21
FY22
Breakup based on revenue in USD million
Budget Pay revenues refer to products offered on EMI basis
Results Presentation, May 2022
17
HIGHLIGHTS FOR THE QUARTER
Results Presentation, May 2022
GERMANY: PERFORMANCE REASSURING OUR INVESTMENT
Germany venture increased TAM (Total Addressable Market) by ~20%
Revenue and Unique Customers Trend
900000 800000 700000 600000 500000 400000 300000 200000 100000 0
7000
6000
5000
4000
3000
2000
1000
0
Omni-Channel Presence
July August
Sep
Oct
Nov
Dec
Jan
Feb March
Net Revenue (Euro)
Unique customers (nos.)
➢ Good revenue traction and customer base
➢ Premium transponder on satellite (positioned next to market leader)
➢ Broadcasting in ~27mn HH (incl. 2mn HH in Austria)
➢ Positive Customer Orientation: CSAT 96+; NPS 63
➢ Digital now 25%
➢ To breakeven by Q3 of FY24, being one year earlier than projected
➢ FY23: Expand Reach (OTA, OTT), Digital Enhancement, Marketplace launch
Results Presentation, May 2022
19
KEY RECENT EVENTS
Freeview Channel Upgrade:
Target for Carbon Neutrality:
➢ Freeview Channel now at
➢ VGL set
target
to become
carbon neutral in Scope 1 & 2
#22 from erstwhile #50
emissions by 2031
➢ Opportunity to enhance
➢ Also,
to
achieve
carbon
customer viewership
substantially
neutrality
in
Scope
3
emissions in future
➢ Set
series
of mid-term
➢ Offers huge growth potential
sustainability objectives
to
with market leading growth
drive forward our ESG journey
annum
EVs Employees:
Distribution
➢ Distributed 84 Electric 2-
Wheeler
vehicles
to
employees for commute
➢ Eliminated
fleet
of
5
buses
➢ Would help sequestrate
25-28 tons of carbon per
to
IGJ Award:
➢ VGL conferred with
IGJ award for being
highest exporter of
Silver Jewelry
➢ Affirmation
to
our
belief of
‘Make in
India’
➢ Earned this award for
sixth consecutive year
Results Presentation, May 2022
OTT: LEVERAGING AND WIDENING DIGITAL PLATFORM
1. Distribution: Live & Interactive Apps
3. Roku & Fire TV: Marketing & Engagement
2. Distribution: Live
3,500
3,000
2,500
2,000
1,500
1,000
500
0
$20,00,000 $18,00,000 $16,00,000 $14,00,000 $12,00,000 $10,00,000 $8,00,000 $6,00,000 $4,00,000 $2,00,000 $0
Shop LC (USA) Unique OTT Customers
Q1
Q2 2021-22
Q3 2020-21
OTT Revenue
Q4
Q1
Q2 2021-22
2020-21
Q3
Results Presentation, May 2022
Q4 21
Q4 & FY22 FINANCIAL PERFORMANCE
Results Presentation, May 2022
22
FINANCIALS – Q4 & FY22 PERFORMANCE
Revenue Breakdown – (Rs. crore)
Growth vs Q4 FY20 37.6%
Revenue
Growth vs FY20 38.6%
2,540
666
2.9%
685
8.4% 2,752
Q4 FY21
Q4 FY22
FY21
FY22
Fashion Jewelry, Accessories & Lifestyle Products
Growth vs Q4 FY20 27.5%
Growth vs FY20 32.3%
Growth vs Q4 FY20 48.5%
Growth vs FY20 55.8%
TV Revenue
1606
5.8% 1699
0.2%
416
417
Digital Revenue
B2B Revenue
8.5% 986
909
162.7% 67
3.5%
250
242
171.0%
19
25
7
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
Note: B2B has been a non-core and opportunistic business segment
Results Presentation, May 2022
23
FINANCIALS – Q4 & FY22 PERFORMANCE
Revenue Breakdown – (Local Currency)
Shop LC (US)
Shop TJC (UK)
Growth vs Q4 FY20 25.8%
(USD million)
Growth vs FY20 28.1%
Growth vs Q4 FY20 25.2%
4.8%
246.2
234.9
(GBP million)
80.2
Growth vs FY20 32.3%
0.5% 80.6
62.7
2.3%
61.2
20.0
7.1%
18.6
Q4 FY21
Q4 FY 22
FY21
FY22
Q4 FY 21
Q4 FY22
FY21
FY22
Results Presentation, May 2022
24
RETAIL PERFORMANCE TRENDS – Q4 & FY22
Volume and ASP
TV Sales
Sales Volume ('000s)
7,837
6,998
Average Selling Price US$
27.9
33.4
27.7
32.6
2,050
1,659
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
Digital Sales
Sales Volume ('000s)
5,409
5,477
24.6
Average Selling Price US$ 23.6
22.7
24.2
1,348
1,415
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
Results Presentation, May 2022
25
FINANCIALS – Q4 & FY22 PERFORMANCE
Profits – (Rs. crore)
Gross Profit Gross Margin (%)
61.2%
60.0%
62.3%
62.3%
EBITDA EBITDA Margin (%)
8.3%
1,714
1,583
1.0%
411
407
12.8%
6.9%
15.3%
11.0%
Ex-Germany: 30.4%
44.7%
388
Ex-Germany: 10.7%
21.8%
303
85
47
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
**PAT
PAT Margin (%)
8.4%
3.9%
10.7%
8.6%
EPS (Rs.) – Post split
272
12.8%** 237
51.8%**
56
27
3.46
1.67
16.77
14.56
Q4 FY21
Q4 FY22
FY21
FY22
Q4 FY21
Q4 FY22
FY21
FY22
Note: Q4 and FY22: **PAT: Excluding Germany & exceptional item: PAT growth: (20.3%) for Q4 and (5.1%) for FY22; PAT margin: 6.5% for Q4 & 9.4% for FY22
Results Presentation, May 2022
26
2022: A YEAR OF INVESTMENTS
SEEDING INVESTMENTS FOR LONG-TERM GROWTH
➢ Major opex investments:
• Web Marketing (151% )
• Marketplaces (38% )
•
Increased Airtime for OTA platforms (30% )
➢ Major capex investments (FY22: ~US$ 42 million):
• Tech Infra upgradation (mobile websites and applications)
• Warehouse Robotics Automation (GEEK+)
• Freeview Channel Upgradation to #22 from erstwhile #50
•
Investments on D2C brands: Rachel Galley and TAMSY
• New and bigger HQ in USA enabling functional synergies and cost optimisation
• Acquisition of Encase Packaging & additional stake in Vaibhav Lifestyle Limited
Results Presentation, May 2022
EBITDA MARGIN WALK
Particulars
% To Revenue
Remarks
EBITDA
Gross Margin
Quarterly 12.8%
Yearly 15.3%
(1.1%)
-
Product mix impact. Efficient Price management
Accelerated Investment in Digital & Broadcasting
(2.4%) (2.2%) Investments for future potential and scale
Investment in Germany
(2.0%) (1.7%)
Earlier than planned tie-ups resulting in higher losses than guidance, to breakeven within 2 years
Elevated Sea Freight
(0.2%) (0.9%) Temporary short-term impact though pace is declining
Others
EBITDA
(0.2%)
0.5%
6.9%
11.0%
Results Presentation, May 2022
28
COST OPTIMISATION
Cost Arbitrage: Call Centre
• Presently ~50-60% volume of US & UK catered
by India
$ 1-2 mn
• Focus to further increase India’s share in future
Annual Visible Savings (FY23)
Shipping & Warehousing
• Shipping: Renegotiating and evaluating new
vendors
• Labour productivity • GEEK+: Warehouse Robotics Automation (to
$ 2-3 mn
boost picking productivity) • Warehouse consolidation
Contract Renewals & Others
• Renegotiating with IT Vendors • Optimising other costs
$ 2 mn
Results Presentation, May 2022
29
FINANCIAL PERFORMANCE TRENDS
Results Presentation, May 2022
30
FINANCIAL PERFORMANCE TRENDS
Revenue Breakdown – (Rs. crore)
5 Year CAGR: 13.9%
Revenue
1,436
1,571
1,814
1,986
Growth vs FY20 38.6%
2,540
8.4% 2,752
FY17
FY18
FY19
FY20
FY21
FY22
Fashion Jewelry, Accessories & Lifestyle Products
Growth vs FY20 32.3%
5.8% 1,606 1,699
5 Year CAGR: 11.8%
TV Revenue
972
997
1,157 1,285
Growth vs FY20 55.8%
8.5% 986
909
Digital Revenue
5 Year CAGR: 29.2%
633
510
373
274
B2B Revenue
190
201
147
162.7%
69
67
25
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
Results Presentation, May 2022
31
RETAIL PERFORMANCE TRENDS
Volume and ASP
TV Sales
Sales Volume ('000s)
Average Selling Price US$
5,877
5,737
6,275
6,070
7,837
6,998
24.9
27.0
26.4
29.9
27.7
32.6
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
Digital Sales
2,353
2,840
Sales Volume ('000s)
3,522
4,113
5,409
5,477
Average Selling Price US$
17.5
20.4
20.7
21.7
22.7
24.2
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
Results Presentation, May 2022
32
FINANCIAL PERFORMANCE TRENDS
Profits – (Rs. crore)
Gross Profit Gross Margin (%)
60.1%
59.6%
62.5%
61.6%
62.3%
865
936
1,133
1,224
1,583
EBITDA EBITDA Margin (%)
62.3% 8.3% 1,714
7.1%
10.1%
12.0%
13.9%
15.3%
CAGR: 24.3%
102
159
217
276
11.0% Ex-Germany: Growth: 10.7% Margins:12.7% 21.8% 303
388
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
**PAT
PAT Margin (%)
4.5%
7.2%
8.5%
9.6%
10.7%
8.6%
CAGR: 29.7%
113
65
272
12.8%** ** 237
154
190
EPS (Rs.) – Post split
6.91
3.97
16.77
14.56
11.73
9.45
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
**PAT: Excluding Germany & exceptional item: PAT degrown by 5.1% and PAT margin is 9.5% for full year
Results Presentation, May 2022
33
FINANCIAL PERFORMANCE TRENDS
Balance Sheet – (Rs. crore)
Shareholders’ Equity
Fixed assets including intangibles
434
550
697
751
964
1,127
126
120
117
163
192
494
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
Net Debt FY17
6
FY18
FY19
FY20
FY21
FY22
Net Assets *
(13)
(181)
(194)
(93)
314
417
399
394
395
540
Note: * Net Assets is the balancing figure arrived at by excluding shareholders equity, net debt, and fixed assets including intangibles
Results Presentation, May 2022
34
(377)
FY17
FY18
FY19
FY20
FY21
FY22
FINANCIAL PERFORMANCE TRENDS
Cash Flow – (Rs. Crore)
Operating Cash flow
Free Cash Flow
324
268
203
211
181
176
70
38
86
52
20
* (214)
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
* Planned capex towards tech-infra upgrade, warehouses automation, freeview channel upgrade in UK, new HQ in USA and initial set-up cost of Germany
Results Presentation, May 2022
35
FINANCIAL PERFORMANCE TRENDS
Key Ratios
ROE (TTM)
16%
ROCE (TTM)
32%
25%
26%
23%
23%
27%
18%
46%
37%
61%
31%
FY17
FY18
FY19
FY20
FY21
FY22
FY17
FY18
FY19
FY20
FY21
FY22
* Return ratios reflects short-term impacts of conscious business investments, though they are at par with normal pre-covid years
Note - ROE – based on average net worth ROCE – based on average capital employed
Results Presentation, May 2022
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ANNEXURES
Results Presentation, May 2022
37
UPDATES ON DIGITAL COMMERCE MARKETS
E-com Industry facing temporary headwinds with declining sales mix in the USA and the UK
US Retail & E-com Sales
Retail Sales ($ Tn)
E-com as % of Retail Sales
UK Retail & E-Com Sales
Retail Sales (£ Bn)
E-com as % of Retail Sales
5.0
5.2
9.9%
9.1%
5.4
11.0%
4.8
8.2%
14.0% 5.6
6.5
13.2%
423.7
405.7
387.6
439.6
436.8
464.3
36.2%
30.9%
28.0%
27.8%
17.9%
19.1%
16.2%
14.5%
100.0 112.7
2016
2017
2018
2019
2020
2021
2016
2017
2018
2019
2020
2021 Q4 FY21 Q4 FY22
Source: United States Census Bureau www.census.gov * This data is published with a time lag of 1 quarter
Source: Office for National Statistics www.ons.gov.uk
Results Presentation, May 2022
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ROBUST CORPORATE GOVERNANCE
FY22
Rs. 98.2 cr
Dividend (including final dividend)
Dividend Payout Policy
> 20-30% of consolidated free cash flow > Higher payout in special circumstances > Balance between resource conservation and shareholder
reward
B S R & Co. LLP Statutory Auditors
ICRA A (Stable Outlook)
DELOITTE
Internal Auditors
CARE A (Stable ) Credit Rating – Long-term
ICRA A1
CARE A1
Credit Rating – Short-term
RECOGNITIONS & ACCOLADES
Excellence Award’ for ‘IGBC Performance Challenge 2021 for Green Built Environment
GPTW Best Leaders in Times of Crisis 2021
All entities GPTW Certified*
IGJ Award- 2020 (highest exporter of Silver Jewellery from India)
* Except Germany, whose operations commenced very recently
Results Presentation, May 2022
39
SUSTAINABILITY INITIATIVES
ENERGY
Solar 3.23 MW EV
40.39 Lakh KWH generated in FY22
84 2-Wheelers & 3 4- wheelers for employee commute
IGBC
Excellence Award
Performance Challenge Award 2021- ‘Factory Category’
BIODIVERSITY
~26,000
Saplings planted for developing 2 Miyawaki forests
~5,600
Additional saplings planted till date
WATER
6100 KL Rainwater harvested
7KL
48KL
100 KL
per annum Water saved per day with the installation of low LPM faucets
Water recycled per day, which equals 17,500 kl. per year RWS Rainwater Storage Tank commissioned
WASTE
100%
conversion of bio- degradable waste (vegetables, food, leaves) into manure
862 Kg E-waste recycled
~1400 Kg Plastic waste recycled
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40
COMMUNITY GIVEBACK
> Till date Served 63 million (13mn in FY22) meals to underprivileged children through flagship for One Program, Your Purchase
One Feeds…
> Local charity partners
- Akshaya Pātra in India - No Kid Hungry and Backpack Friends in US - Magic Breakfast & Felix Project in UK
Social Initiatives Providing resources for healthcare services: > Distributed 117 Oxygen Concentrators, 31 BIPAP
and other key medical equipment in hospitals
> Facilitated procurement, transport and installation of
oxygen plant in hospitals
> Vaccination drives for employees and their families
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VGL SHAREHOLDER BASE: AS ON 31-MARCH-2022
Key Shareholders (Holding >1%)
Holding as on 31-March-22
Shareholding Pattern
Promoter & Promoter Group
Nalanda India Fund Limited (FII)
Motilal Oswal Flexi Cap Fund (MF)
Malabar India Fund Limited (FPI)
Vijay Kedia (Individual)
Ashish Kacholia (Individual)
58.08%
10.24%
6.78%
5.43%
1.86%
1.22%
Others
7.97%
Individual - >1%
4.01%
AIF
1.46%
Domestic Institutions (MF)
6.80%
Foreign Institutions (FPI, FII) & NRI
21.68%
Promoter & Promoter Group
58.08%
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MANAGEMENT TEAM
Mr. Sunil Agrawal Managing Director, VGL Group
Mr. Vineet Ganeriwala CFO, VGL Group
Mr. Srikant Jha Managing Director, Shop TJC (UK)
Mr. Ankur Sogani Vice President, Commercial, Shop LC (US)
Mr. Deepak Sharma Vice President, Owned Brands, Shop LC (US)
Mr. Deepak Mishra Managing Director, Shop LC (Germany)
Mr. Raj Singh Vice President, Supply Chain, VGL Group
Mr. Pushpendra Singh Vice President, Human Resources, VGL Group
Mr. Ashish Dawra Vice President, Global IT
https://www.vaibhavglobal.com/management
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Safe Harbour
limitation, statements relating to the This presentation contains “forward looking statements” implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business developments and economic performance.
including, but without
While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro‐economic, government and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
Vaibhav Global Limited undertakes no obligation to periodically revise any forward-looking statements to reflect future/likely events or circumstances.
Results Presentation, May 2022
Results Presentation, May 2022