Ethos Limited

Yashovardhan Saboo

MANAGING DIRECTOR, ETHOS LIMITED

80%

impacted every business, especially retail businesses with malls remaining closed for practically 80% of that period. Not withstanding the impacted Q1, we have recorded the highest ever yearly revenu

30%

nancials without Ind AS 116 impact to give a simpler view of the accounts. Billings increased by 30% Y-o-Y to INR185 crore growth in Q4 of FY 22. This despite a lockdown of up to two weeks in many ci

INR185 crore

out Ind AS 116 impact to give a simpler view of the accounts. Billings increased by 30% Y-o-Y to INR185 crore growth in Q4 of FY 22. This despite a lockdown of up to two weeks in many cities due to the third

50%

to the third wave of COVID in January and February. For the year as a whole billings increased by 50% Y-o-Y to INR 672 crore in FY 22. Of these billings for exclusive brands for watches contributed IN

INR 672 crore

wave of COVID in January and February. For the year as a whole billings increased by 50% Y-o-Y to INR 672 crore in FY 22. Of these billings for exclusive brands for watches contributed INR52 crore in quarter fo

INR52 crore

0% Y-o-Y to INR 672 crore in FY 22. Of these billings for exclusive brands for watches contributed INR52 crore in quarter four that is 28% of the total billings for the quarter while for the year as a whole it

28%

Of these billings for exclusive brands for watches contributed INR52 crore in quarter four that is 28% of the total billings for the quarter while for the year as a whole it contributed INR178 crore in

INR178 crore

our that is 28% of the total billings for the quarter while for the year as a whole it contributed INR178 crore in the billing that is 27% of the total billings of the year. Consolidated revenue from operation

27%

s for the quarter while for the year as a whole it contributed INR178 crore in the billing that is 27% of the total billings of the year. Consolidated revenue from operations increased by 29% Y-o-Y to

29%

that is 27% of the total billings of the year. Consolidated revenue from operations increased by 29% Y-o-Y to INR 159 crore in quarter four, and for the year it increased by 49% to INR 577 crore in F

INR 159 crore

of the total billings of the year. Consolidated revenue from operations increased by 29% Y-o-Y to INR 159 crore in quarter four, and for the year it increased by 49% to INR 577 crore in FY 22. Consolidated gros

49%

erations increased by 29% Y-o-Y to INR 159 crore in quarter four, and for the year it increased by 49% to INR 577 crore in FY 22. Consolidated gross profit increased by 35% Y-o-Y to about INR 48 crore

“This year, the event will be held in new Delhi in October with Ethos as the sole watch retail partner.”

“As per Technopak watch the watch market in India was valued at INR 13,500 crore in 2020, and is expected to grow at a CAGR of 10.6% to reach INR 20,300 crore by 2025.”

“On the other hand, premium segments are growing at a CAGR of 12%.”

“The luxury segments are growing faster than other segments at a CAGR of 13%.”

“The Investor Presentation lists most of these, we are in discussion with more brands, with some more globally recognized brands and hope to share information of additions to our brand portfolio during the year, as in when new arrangements are finalized.”

“We hope to exceed over INR 75 crore of business by the end of the year through one lounge in Delhi and the website for pre-owned watches.”

“Over the next two years, we will expand the footprint along with the website to four to five major cities in India to continue driving strong growth in the pre-owned business.”

“We have planned to add 13 boutiques across India and renovate six stores, including a certified pre-owned lounge in Mumbai, which we plan to open very soon.”

“As I’ve mentioned, we plan to scale up the certified pre-owned watches vertical swiftly.”

“So what sort of ASPs can we expect going forward?”

Y Saboo

16

Pranav Saboo

9

Moderator

5

Sachin Shah

5

Pooja Shah

3

Akshay K

2

Ritesh Agarwal

2

Priyanka Shah

2

Lalaram Singh

2

Anjana Shah

1

Y Saboo

Ladies and gentlemen, good day and welcome to Ethos Limited Q4 FY 22 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company. As on date of this call, these statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Yashovardhan Saboo, Managing Director, Ethos, for his opening remarks. Over to you, sir. Thank you very much. Good evening, and a warm welcome to everyone for the maiden post listing earnings conference call for Eth

Pranav Saboo

Consolidated PBT increased by 65% to INR 11.6 crore in quarter four, while it almost equaled to INR 35.3 crore for year as a whole. The stock carrying months on sales reduced from 6.2 months in FY 21 to 5.3 months in FY 22 on better inventory planning and sales. and consolidated debts stood at INR 60 crore. Post the repayment from IPO to see the lowest debt levels significantly reduced to almost half. Ladies and gentlemen while we are pleased with the record numbers we are even more excited about the prospects for the current year and the years ahead. We continue to see strong demand for our product and the consolidation of our leadership. Ladies and gentlemen, this is Pranav Saboo, and I'll continue the speech. Ladies and gentlemen, while we are pleased with these record numbers, we are even more excited about the prospects for the current year and years ahead. We continue to see strong demand for our products and the consolidation of our leadership position in the market. Already in

Pranav Saboo

Or is this your only question? Yes, I’d just ask them. Sir, also wanted to understand, you have given a slide wherein a loyalty program started by other brands. So, I think there is only one of the other competitors who have started this. So wanted to understand since this is a new business to me. How difficult is it to start a loyalty program? And what sort of loyalty benefits, what is the differentiating factor are we giving? And I don't think there is a, what we can say very much difficult to start a loyalty program. And I believe that Helios also has a loyalty program by the name of Encircle. And my third question would be what sort of ASP average selling price currently we are at INR 1.5 L. So what sort of ASPs can we expect going forward? These are the three questions from my side. Thanks a lot. Right. Thanks, Akshay. So, let me answer the last one first. ASP you've seen in the last four years our ASP has grown from around INR 73,000 to about one like INR 1,45,000 now, around tha

Pranav Saboo

I believe the next question was on the lines of RIMOWA and Messika. We believe that every RIMOWA boutique that we opened will give us INR 12 crore, to INR 15 crore of business. We have already finalized the first location for RIMOWA in Mumbai, and we are looking for more locations in luxury malls, and as and when they come up, we will be signing that on.

Anjana Shah

At the moment for Messika, we are opening only as a trial. The first six months will be a trial phase that we are doing inside a few of our stores. And once that is successful, we will be taking it to boutiques. And we expect every boutique as well to do about INR 80 lacks to a crore of business going forward Monthly. Just one follow-up. Sir, you did mention that loyalty program needs tie up with brands. So, the benefits, which we are passing to the customer in terms of discounts on all these events. So, I think events we would be doing, but any discounts or rebates on future purchases, are they passed through to the brands, we are getting that from the brands as well? We in many of the cases we take the cost on us. In many of the cases, it is shared with the brand. So, it depends brand to brand, but brands do want to participate with us in the communication cost in bearing some of the cost including offers to our customer base. Thank you. We take the next question from the line Anjana

Ritesh Agrawal

Let's start with the fresh issue. So our fresh issue to be utilized for working capital for a long term business growth, as well as, we will be utilizing fresh issue for opening our stores that has been proposed as well as the upgradation of our IT infrastructure, and the balance will be for a general corporate purpose. So, these are from our fresh issue utilization. And definitely all these fresh issues are primarily for the business growth of the organization going forward.