V2 Retail Limited has informed the Exchange regarding Investor Presentation
Q3 FY20 Result Update January 2020
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Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by V2 Retail Ltd. (the “Company”),
have been prepared 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.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such
forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international),
economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts,
our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. Competition
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Q3 FY20 Highlights
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Highlights Q3 FY20
REVENUE
₹ 2,190 Mn in Q3 FY20 as compared to ₹ 2,411 Mn in Q3 FY19.
EBIDTA
EBIDTA for Q3 FY20 stood at ₹ 337 Mn. EBIDTA for Q3FY19 stood at ₹ 306 Mn.
₹
GROSS PROFIT
₹ 656 Mn in Q3 FY20 as compared to ₹ 847 Mn in Q3 FY19. Gross margin stood at 29.9%for Q3 FY20.
PBT
₹
PAT
PBT for Q3 FY20 stood at ₹279 mn. PBT for Q3 FY19 stood at ₹ 275 mn.
PAT for Q3 FY20 stood at ₹ 208 mn. PAT for Q3 FY19 stood a ₹ 236 mn.
IND AS 116 became applicable effective annual reporting period beginning April 1, 2019. The Company has adopted the standard, using the modified
retrospective approach for transition. As such EBIDTA and PBT figures may not be exactly comparable with other periods
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Highlights Q3 FY20
Number of stores at 76 in Q3 FY20 (addition 1)
Same Store Sales growth (7) % in Q3 FY20.
Revenue at ₹ 2,190 mn.
ASP for Q3 FY20 was ₹ 296. Average Bill Value for Q3 FY20 was ₹ 794
Sales per Square feet (per month) is ₹ 864
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Highlights 9M FY20
Number of stores 76 in 9M FY20 (addition 3, close 4). Total Retail area in excess of 8.5 lakh sq.ft.
Same Store Sales growth (6)% compared to 9M FY20
Revenue at ₹ 5,721 Mn
ASP for 9M FY20 was ₹ 266 . Average Bill Value for Q3 FY20 was ₹ 743
Sales per Square feet (per month) is ₹ 736
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Financial Highlights
Revenue (₹ Million)
Gross Profit (₹ Million) and Gross Profit Margins
EBIDTA (₹ Million) and EBIDTA Margins
Profit After Tax (₹ Million)
IND AS 116 became applicable effective annual reporting period beginning April 1, 2019. The Company has adopted the standard, using the modified retrospective
approach for transition. As such EBIDTA and PBT figures may not be exactly comparable with other periods
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Profit & Loss
^ Not Annualised
IND AS 116 became applicable effective annual reporting period beginning April 1, 2019. The Company has adopted the standard, using the modified
retrospective approach for transition. As such EBIDTA and PBT figures may not be exactly comparable with other periods
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Particulars (₹ million)Q3 FY20Q2 FY20Q3 FY199M FY209M FY19FY2019Revenue from Operations2,190 1,507 2,411 5,721 5,845 7,484 Total Income2,204 1,509 2,434 5,737 5,928 7,583 Gross Profit656 418 847 1,664 1,940 2,421 GP Margin (%)29.9%27.7%35.2%29.1%33.2%32.3%EBIDTA337 116 306 730 425 469 EBIDTA Margin (%)15.4%7.7%12.7%12.8%7.3%6.3%Other Income13 2 23 17 82 99 Depreciation123 134 38 384 101 144 Finance Cost74 81 3 229 4 7 PBT279 -97 275 259 136 151 PBT Margin (%)12.7%-6.4%11.3%4.5%2.3%2.0%PAT208 (104) 236 218 163 205 PAT Margin (%)9.4%-6.9%9.7%3.8%2.7%2.7%Total Comprehensive Income205 (105) 236 163 204 EPS Basic (₹ per share)^6.09 (3.07) 6.93 6.39 4.78 6.02 EPS Diluted (₹ per share)^6.09 (3.07) 6.88 6.38 4.75 6.02 Profit & Loss - Reconciliation
To the extend the performance of the current period is not comparable with previous period results, the reconciliation of above
effect on statement of the profit and loss for the quarter and nine months ended December 31, 2019 are as under:
IND AS 116 became applicable effective annual reporting period beginning April 1, 2019. The Company has adopted the standard, using the modified
retrospective approach for transition. The table highlights the adjustments to Net Profits
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₹ millionComparable BasisChanges due to Ind AS 116 Increase / (Decrease)As ReportedComparable BasisChanges due to Ind AS 116 Increase / (Decrease)As ReportedOther Expenses264(118)146812(361)451Depreciation & Amortisation Expenses4281123127257384Finance Cost4717416213229Profit before Tax313(34)279368(108)259Less: Tax Expenses / Credit80(9)7170(28)42Profit after Tax233(25)208298(80)218Q3 FY209M FY20Adjustment to Increase / Decreases in Net Profits Balance Sheet
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Particulars (₹ in Mn)H1FY2020FY2019Particulars (₹ in Mn)H1FY2020FY2019ASSETSEQUITY AND LIABILITIESNon-current assetsEquityProperty, plant and equipment945 977 Equity share capital341 341 Capital work-in-progress6 - Other equity 2,371 2,613 Right to use Assets2,616 - Total - Equity2,712 2,954 Other intangible assets16 21 Intangible assets under development41 41 LIABILITIESFinancial assetsNon-current liabilitiesLoans57 48 Borrowings8 10 Other financial assets16 16 Lease Liability2,783 - Deferred tax assets (net)244 110 Financial liabilities1 1 Income tax assets (net)15 17 Provisions19 17 Other non-current assets175 219 Other non-current liabilities- 45 Total - Non-Current Assets4,131 1,448 Total non-current liabilities2,811 72 Current assetsInventories2,610 2,711 Current liabilitiesBorrowings341 93 Financial assetsLease Liability256 Investments- Trade payables975 1,394 Cash and cash equivalents73 83 Other financial liabilities 21 19 Other financial assets10 10 Provisions13 10 Other current assets357 266 Other current liabilities13 20 Total - Current Assets3,049 3,070 Total - Current liabilities1,619 1,536 Assets classified as held for sale124 124 Liabilities directly associated with assets classified as held for sale163 81 TOTAL - ASSETS7,305 4,643 TOTAL - EQUITY AND LIABILITIES7,305 4,643 Store Presence Jammu & Kashmir (2)
Kathua; Jammu
Himachal (1)
Solan
NCR (3)
Mahipalpur; Faridabad; Kapasehra
Rajasthan (1)
Kota
Madhya Pradesh (3)
Jabalpur; Sagar; Rewa
Goa (1)
Panaji
Telangana (1)
Hyderabad
Karnataka (6)
Hubli; Belgaum, Udupi, Vijaynagar, Davanagere, Gulbarga
Arunachal (1)
Itanagar
Assam (6) & Tripura (1) Guwahati 1; Guwahati 2;Guwahati 3; Silchar; Barpeta; Jorhat; Agartala
Bihar (18)
Patna ; Gaya; Darbhanga; Bhagalpur; Bettiah; Arrah; Purnia; Chapra; Siwan; Bihar Sharif; Begusarai; Sitamarhi; Motihari; Saharsa; Lakhisarai, Samastipur, Barh; Banka
Jharkhand (7)
Jamshedur; Ranchi; Hazaribagh; Deogarh; Rajdhanwar, Chas, Dumka
Uttarakhand (4) Haldwani; Roorkee; Haridwar, Khatima
Uttar Pradesh (13)
Gorakhpur 1; Gorakhpur 2; Azamgarh; Jaunpur; Sitapur; Varanasi; Padrauna; Gazipur; Pratapgarh; Farrukhabad; Lucknow 1; Behraich; Lucknow 1, Akbarpur
Odisha (8)
Cuttack; Berhampur; Bhuwaneshwar 1; Jeypore; Bhuwaneshwar 2; Bhuwaneshwar 3, Jajpur, Angul
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Our Brands
JEYPORE, ORISSA
Banka, Bihar
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Promotions – Campaigns Q3 FY20
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Promotions – Campaigns Q3 FY20
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Promotions – Campaigns Q3 FY20
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Board of Directors
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Board of Directors
Mr. Ram Chandra Agarwal
Mrs. Uma Agarwal
Mr. Akash Agarwal
Ms. Rochelle Susanna Dsouza
Chairman and Managing Director
Whole Time Director
Whole Time Director
Nominee Director
• Mrs.
holds Agarwal bachelor’s degree in Arts.
a
• Has a vast experience of ~ 15 years in the retail industry.
• Has been a member of the since
Board of Directors inception.
•
She oversees the marketing strategies of the Company.
• Mr. Agarwal holds a bachelor’s
degree in Commerce.
• Has a vast experience of ~ 25 years of entrepreneurial and business
• He has been a member of the Board
of Directors since inception.
• He provides strategic direction to the Company and is the driving force and behind growth of the Company.
the establishment
• He is the pioneer in value retailing and brought this concept in India.
• He was conferred several awards at different forums such as Ernst & Young Entrepreneur of the year award in 2008 and 4Ps Power Brand Award in 2007.
• Mr. Akash Agarwal holds a in
degree
bachelor’s Commerce.
• He has more than 5 years of the Retail in
experience Industry.
• He
looks after Procurement
and Business Development.
• Ms. Rochelle Susanna Dsouza holds in Electronics & Communication and an MBA. She is also a CFA Level III Candidates
BE
•
Is a Principal at Lighthouse , a mid-market consumer focused private equity fund.
SBI
• Prior to Lighthouse, she worked Capital Markets, at Investment Banking Division, where she focused on equity capital market transactions.
Board of Directors
Mr. Habir Singh Sidhu Independent Director
Dr. Arun Kumar Roopanwal Independent Director
Mr. Lalit Kumar Independent Director
Mrs. Archana S Yadav Independent Director
He has over 35 Years of extensive experience in working with various retail companies.
He is having a vast experience the field of Marketing, Product Development, Business Development, Strategic Planning and Administration.
A Graduate (BA HONS) from Cambridge University having vast experience of 44 years.
Mr Sidhu has taught Economics at Punjab University and JNU & worked as consultant with Planning commission.
He has vast experience in retail industry, he has worked with: 1.Ebony Retail Holding as Operations Manager 2.Vishal Mega Mart as Operations Manager 3.Koutons Retail as Executive Vice President 4.Credo Brands Marketing Private Limited (Mufti) as CEO
He has over 30 Years of experience in India and Dubai. As an Entrepreneurial Profits & Growth strategist, he has worked with multiple sectors like Finance, Retail, Education & Skill Development, Infrastructure etc..
Mr. Lalit has extensive experience in Retail Industry. He was associated with various retail chains both in India and Dubai. He has also been a visiting faculty to NIFT, New Delhi.
A Chartered Accountant in practice with more than 14 years of experience, having expertise in GST, Income Tax, International Tax & Corporate Audits.
She served as Financial Advisor to the autonomous body M/s National Institute of Solar Energy, under Ministry of New & Renewable Energy. She has also worked with various MNC’s as Management Consultant, Service tax Consultant & Direct Tax advisor.
She was appointed as GST Faculty by ICAI for GST knowledge sharing across India.
Key Financial Indicators
Financial Highlights – Profit & Loss Account
₹ in Million
CAGR 27%
34%
62%
* FY 2014 to FY 2016 as per IGAAP
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Particulars FY2014FY2015FY2016FY2017FY2018FY2019Revenue from Operations2,289 2,868 3,199 4,720 5,594 7,484 Growth (%)114%25%11%47%19%34%Gross Profit567 814 956 1,388 1,804 2,421 GP Margin (%)25%28%30%29%32%32%EBIDTA42 277 314 415 517 469 EBIDTA Margin (%)2%10%10%9%9%6%Other Income22 25 25 16 33 99 Depreciation35 21 44 61 84 144 Finance Cost81 97 132 86 6 7 PBT Before Exceptional Item(51) 184 163 283 460 417 PBT Margin (%)-2%6%5%6%8%6%Exceptional Item (Gain) / Loss233 266 Profit for the period(45) 98 122 390 311 205 PAT Margin (%)-2%3%4%8%6%3%Total Comprehensive Income(45) 98 122 390 310 204 Financial Highlights – Balance Sheet
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Particulars (₹ in Mn)FY2019FY2018Particulars (₹ in Mn)FY2019FY2018ASSETSEQUITY AND LIABILITIESNon-current assetsEquityProperty, plant and equipment977 624 Equity share capital341 339 Capital work-in-progress- 7 Other equity 2,613 2,400 Other intangible assets21 1 Total - Equity2,954 2,740 Intangible assets under development41 59 Financial assetsLIABILITIESLoans48 34 Non-current liabilitiesOther financial assets16 8 Borrowings10 - Deferred tax assets (net)110 48 Financial liabilities1 1 Income tax assets (net)17 39 Provisions17 12 Other non-current assets219 212 Other non-current liabilities45 21 Total - Non-Current Assets1,448 1,033 Total non-current liabilities72 34 Current assetsInventories2,711 1,602 Current liabilitiesFinancial liabilitiesFinancial assetsBorrowings93 - Investments- 897 Trade payables1,394 1,003 Cash and cash equivalents83 48 Other financial liabilities 19 28 Other financial assets10 6 Provisions10 7 Other current assets266 184 Other current liabilities20 21 Total - Current Assets3,070 2,737 Total - Current liabilities1,536 1,059 Assets classified as held for sale124 124 Liabilities directly associated with assets classified as held for sale81 62 TOTAL - ASSETS4,643 3,894 TOTAL - EQUITY AND LIABILITIES4,643 3,894 Robust Financial Performance
Revenue (₹ Million)
EBIDTA (₹ Million) and EBIDTA Margins
PBT (₹ Million) and PBT Margins
PAT (₹ Million) and PAT Margins
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Key Operating Metrics
No. of Stores and Retail Space (lakh sq.ft.)
Inventory Holding Days
Sales per Sq. Ft. (₹ Per Month)
Rent per Sq. Ft. (₹ Per Month)
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Thank You For further information please contact:
Investor Relation Advisors: Company:
Dr. Rahul Porwal Marathon Capital Advisory Private Limited Tel : +91-22-40030610 Email : rahul@marathoncapital.in
Mrs. Jagpreet Kaur (Company Secretary & Compliance Officer) V2 Retail Limited Tel : +91-11-41771850 Email : cs@vrl.net.in
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