V2RETAIL

V2 Retail Limited February 04, 2021 BSE Limited National Stock Exchange Of India Lim ted Corporate Relationship Department Listing Department lst Floor, New Trading, Rotunda Building, Exchange Plaza, Bandra Kurla Complex, P J Towers, Dalai Street, Fort, Bandra least), M umbai - 400 001 M umbai -- 400 051 Scrip Code - 532867 Scrip Code -- V2RETAIL Dear Sir/Mada m Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed herewith Investor Presentation for Q3FY2020-21. ''' ' ----' The investor presentation shallalso be uploaded on the website of the Company You are requested to kindly take the above on record Thanking you, Yours truly.,.<':';'>,. \ / .sill:4W£!:.. . 3 . , } G \.' . ''.T' :'-\ ! E \J : i } l Sudhir Klbtn4a{... ,...,./ ./ Company Se(!letarygi,Compliance Officer End.: As above Khasra No. 919,921 ,926,928, Extended Lal Dora AbadiVillage Kapashera Teshil Vasant Vihar. South West Delhi-110037 Land Mark:- Fun N Food Village Amusement Park ' Tel.: 011-41771850 E-mail : customercare@vrl.net.in, cs(@vrl.net.in ' Website: www.v2retail.com ' CIN : L74999DL2001 PLC147724 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 detailedinformationabouttheCompany. 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 maynot contain all of the information that you may consider material. Any liability in respectof the contents of,or any omission from,thisPresentationisexpresslyexcluded. 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 andthe actual results couldmateriallydiffer 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 materiallyincorrect infutureorupdate anyforwardlooking statements madefromtimeto time byoron behalfoftheCompany.Competition 2 Performance Highlights Q3 & 9M FY21 - Standalone EBIDTA ₹ 419 Mn in Q3 FY21 as compared to ₹ 351 Mn in Q3 FY20. EBIDTA for 9M FY21 stoodat₹ 587Mn Gross Profit PBT ₹ 786 Mn in Q3 FY21 as ₹ 191 Mn in Q3 FY21 as compared to ₹ 656 Mn compared to ₹ 154 Mn in Q3 FY20. Gross Profit in Q3 FY20. PBT for 9M for 9M FY21 stood at ₹ 03 FY21stoodat₹(24)Mn 1,166Mn 02 04 01 05 Revenue PAT ₹ ₹ 2,274 Mn in Q3 FY21 ₹ 138 Mn in Q3 FY21 as as compared to ₹ 2,190 compared to ₹ 208 Mn MninQ3FY20.Revenue (including exceptional for 9M FY21 stood at ₹ gain of ₹125 mn) in Q3 3,493Mn FY20. PAT for 9M FY21 stoodat₹(24)Mn 4 Highlights Q3 FY21 Store Count & Retail Area 01 88 Stores at end of Q3 FY21 (Opened 13, Closed 1) Total Retail area ~9.25 lakh sq.ft. SSG 02 Same Store Sales Growth (6)% in Q3 FY21 ASP 03 Average Selling price in Q3 FY21 was ₹309 (Q3 FY20 ₹296) ABV 04 Average Bill value in Q3 FY21 was ₹ 851 (Q3 FY20 ₹ 794) PSF 05 Sales per square feet per month in Q3 FY21 was ₹ 859 (Q3 FY20 ₹ 864) 5 Highlights 9M FY21 Store Count & Retail Area 01 88 Stores at end of 9M FY21 (Opened 19, Closed 7) Total Retail area ~9.25 lakh sq.ft. SSG 02 Same Store Sales Growth (44)% in 9M FY21 ASP 03 Average Selling price in 9M FY21 stood at ₹280 ABV 04 Average Bill value was ₹ 809 in 9M FY21 PSF 05 Sales per square feet per month at ₹ 451 6 Key Trends We have witnessed strong rebound in consumer demand during Q3 FY21. Despite certain restriction owing to pandemic, our revenue 1 recovered fully and also able to grow by 4% as compared to Q3 FY20 We believe the momentum should continue and is expected to 2 gain further traction in the upcoming festive & wedding season starting from end March. Strong brand recall and consumer experience will be the 3 key differentiator. Further, our online platform has also been able to garner good response. Continuing our philosophy of deleveraged growth, we 4 have expanded our store network from 76 stores as at March 31, 2020 to 88 stores as at December 31, 2020 7 Standalone Financial Highlights Revenue (₹ Million) Gross Profit (₹ Million) and Gross Profit Margins 8,000 2,500 7,000 1,960 2,000 6,000 1,664 5,000 1,500 1,166 4,000 2 1 3,000 1 2 0 ,7 1,000 786 7 2,000 3 9 ,5 656 % 8 2 1,000 4 7 2 ,2 0 9 1 ,2 4 ,3 500 % 5 3 % 0 % 3 3 % 9 2 3 - 0 Q3 FY21 Q3 FY21 9M FY21 9M FY20 FY2020 Q3 FY21 Q3 FY21 9M FY21 9M FY20 FY2020 EBIDTA (₹ Million) and EBIDTA Margins Profit After Tax (₹ Million) 900 250 218 783 208 800 746 200 700 587 600 150 138 500 101 419 100 400 351 % 2 3 0 0 0 0 % 4 .8 % 0 .6 % 8 .6 1 % 0 .3 1 % 2 .1 1 50 0 % 0 .6 % 4 .9 (0.7)% 8 .3 % 4 .1 100 1 1 Q3 FY21 Q3 FY20* 9M FY21 9M FY20 FY 2020 0 (50) (24) Q3 FY21 Q3 FY21 9M FY21 9M FY20 FY2020 * Including exceptional gain of ₹ 125 mn(pre tax) 8 Standalone Profit & Loss Particulars (₹ million) Q3 FY21 Q3 FY20 Y-O-Y Q2 FY21 9M FY21 9M FY20 Y-O-Y. FY2020 Revenue from Operations 2,274 2,190 4% 8 50 3 ,493 5,721 -39% 7,012 Other Income 1 1 1 3 5 3 1 38 1 7 2 3 Total Income 2,285 2,204 903 3 ,631 5,737 7,035 Gross Profit 786 656 20% 2 70 1 ,166 1,664 -30% 1,960 GP Margin (%) 34.6% 29.9% 31.8% 33.4% 29.1% 27.9% EBIDTA 419 351 20% 95 587 746 -21% 783 EBIDTA Margin (%) 18.4% 16.0% 11.2% 16.8% 13.0% 11.2% Depreciation 1 49 1 23 126 396 3 84 505 Finance Cost 8 0 7 4 66 214 2 29 299 PBT Before Exceptional Item 191 154 (97) (24) 134 ( 21) PBT Margin (%) 8.3% 7.0% -10.7% -0.7% 2.3% -0.3% Exceptional Item (Gain) / Loss - ( 125) - - ( 125) ( 125) PBT 191 279 (97) (24) 259 105 PBT Margin (%) 8.3% 12.7% -10.7% -0.7% 4.5% 1.5% PAT 138 208 (73) (24) 218 101 PAT Margin (%) 6.0% 9.4% -8.1% -0.7% 3.8% 1.4% Total Comprehensive Income 1 38 2 05 ( 73) ( 25) 2 13 9 6 EPS Basic (₹ per share)^ 4 .05 6 .09 ( 2.15) ( 0.71) 6 .39 2 .97 EPS Diluted (₹ per share)^ 4 .04 6 .09 ( 2.14) ( 0.71) 6 .38 2 .97 ^ Not Annualised 9 Consolidated Profit & Loss Particulars (₹ million) Q3 FY21 Q2 FY21 9MFY21 9MFY20 FY2020 Revenue from Operations 2,274 850 3,493 5,721 7 ,012 Other Income 13 55 146 17 25 Total Income 2,286 905 3,639 5,738 7 ,037 Gross Profit 8 13 2 77 1,203 1,664 1 ,960 GP Margin (%) 35.8% 32.6% 34.4% 29.1% 27.9% EBIDTA 436 97 606 737 774 EBIDTA Margin (%) 19.2% 11.4% 17.4% 12.9% 11.0% Depreciation 153 130 409 385 510 Finance Cost 82 69 223 230 303 PBT Before Exceptional Item 200 ( 103) (25) 122 (39) PBT Margin (%) 8.7% -11.4% -0.7% 2.1% -0.6% Exceptional Item (Gain) / Loss ( 125) (125) PBT 200 ( 103) (25) 247 87 PBT Margin (%) 8.7% -11.4% -0.7% 4.3% 1.2% PAT 149 (82) (26) 209 88 PAT Margin (%) 6.5% -9.0% -0.7% 3.6% 1.2% Total Comprehensive Income 1 49 (82) (26) 2 04 8 3 EPS Basic (₹ per share)^ 4 .36 ( 2.39) ( 0.76) 6 .12 2 .57 EPS Diluted (₹ per share)^ 4 .36 ( 2.39) ( 0.75) 6 .12 2 .57 ^ Not Annualised 10 Pre Ind AS 116 P&L Particulars (₹ million) Q3 FY21 Q3 FY20 Y-O-Y Q2 FY21 9M FY21 9M FY20 Y-O-Y. Revenue from Operations 2,274 2,190 4% 8 50 3 ,493 5,721 -39% Total Income 2,274 2,192 851 3 ,499 5,722 Gross Profit 786 656 20% 2 70 1 ,166 1,664 -30% GP Margin (%) 34.6% 29.9% 31.8% 33.4% 29.1% EBIDTA 291 219 33% ( 47) 184 3 70 -50% EBIDTA Margin (%) 12.8% 10.0% -5.6% 5.3% 6.5% Other Income 0 1 1 5 2 Depreciation 4 9 4 2 47 139 1 27 Finance Cost 1 4 0 2 16 PBT Before Exceptional Item 242 175 38% ( 94) 49 229 -79% PBT Margin (%) 10.6% 8.0% -11.0% 1.4% 4.0% 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 Pre Ind AS 116 P&L 11 Balance Sheet - Standalone Particulars (₹ in Mn) H1 FY21 FY2020 Particulars (₹ in Mn) H1 FY21 FY2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant and equipment 8 19 8 89 Equity share capital 3 41 3 41 Capital Work in Progress 3 - Other equity 2 ,313 2 ,464 Right to use Assets 2 ,136 2 ,394 Total - Equity 2,654 2,805 Other intangible assets 9 12 Intangible assets under development 41 41 LIABILITIES Financial assets Non-current liabilities Loans 58 59 Borrowings 4 8 Other financial assets 2 1 23 Lease Liability 2 ,411 2 ,658 Investment in Subsidiary 1 50 1 50 Financial liabilities 1 1 Deferred tax assets (net) 2 64 2 12 Provisions 26 24 Income tax assets (net) 21 19 Other non-current liabilities - - Other non-current assets 1 81 1 73 Total Non-Current Liabilities 2,443 2,691 Total - Non-Current Assets 3,685 4,073 Current assets Current liabilities Inventories 1 ,900 1 ,962 Borrowings 70 2 26 Financial assets Lease Liability 224 2 13 Cash and cash equivalents 32 6 05 Trade payables 636 1 ,094 Bank balances other than cash & cash 7 70 Other financial liabilities 19 12 equivalents Other financial assets 6 3 Provisions 20 19 Trade Receivables 1 47 1 30 Other current liabilities 9 12 Other current assets 2 94 2 30 Total - Current liabilities 9 77 1,576 Liabilities directly associated with assets Total - Current Assets 2,384 2,999 - classified as held for sale Assets classified as held for sale 5 - TOTAL - ASSETS 6,074 7,072 TOTAL - EQUITY AND LIABILITIES 6,074 7,072 12 Balance Sheet - Consolidated Particulars (₹ in Mn) H1 FY21 FY2020 Particulars (₹ in Mn) H1 FY21 FY2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant and equipment 8 87 9 22 Equity share capital 3 41 3 41 Capital Work in Progress 8 - Other equity 2 ,288 2 ,451 Right to use Assets 2 ,189 2 ,453 Total - Equity 2,629 2,792 Other intangible assets 9 12 Intangible assets under development 41 41 LIABILITIES Financial assets Non-current liabilities Loans 60 60 Borrowings 42 49 Other financial assets 1 10 2 28 Lease Liability 2 ,455 2 ,708 Financial liabilities 1 1 Deferred tax assets (net) 2 67 2 16 Provisions 26 24 Income tax assets (net) 21 20 Other non-current liabilities - - Other non-current assets 1 81 1 73 Total Non-Current Liabilities 2,524 2,782 Total - Non-Current Assets 3,773 4,127 Current assets Current liabilities Inventories 2 ,072 2 ,152 Borrowings 114 2 76 Financial assets Lease Liability 234 2 23 Cash and cash equivalents 33 6 05 Trade payables 674 1 ,088 Bank balances other than cash & cash 7 70 Other financial liabilities 19 13 equivalents Other financial assets 6 3 Provisions 21 19 Trade Receivables 16 0 Other current liabilities 9 12 Other current assets 3 17 2 49 Total - Current liabilities 1,071 1,631 Total - Current Assets 2,451 3,079 - TOTAL - ASSETS 6,224 7,205 TOTAL - EQUITY AND LIABILITIES 6,224 7,205 13 Store Presence Jammu & Kashmir (1) Uttarakhand(5) Arunachal (1) Haldwani1; Roorkee; Haridwar, Kathua Khatima; Haldwani2 Itanagar Himachal (1) Uttar Pradesh (17) Solan Gorakhpur 1; Gorakhpur 2; Assam (6) & Tripura (1) Sitapur; Varanasi 1; Padrauna; Guwahati 1; Guwahati 2; NCR (4) Gazipur; Pratapgarh; Lucknow; Guwahati 3; Silchar; Barpeta; Behraich; Akbarpur, Varanasi 2; Jorhat; Agartala Mahipalpur; Faridabad; Azamgarh; Ballia; Varanasi 3; Kapasehra1; Kapssehra2 Gorakhpur 3; Basti; Raebareli Bihar (21) Patna ; Gaya; Darbhanga; Bhagalpur; Bettiah; Arrah; Purnia; Rajasthan (1) Chapra; Siwan; Bihar Sharif; Begusarai(1); Sitamarhi; Motihari; Kota Saharsa; Samastipur, Barh; Banka; Buxer; Aurangabad; Begusarai(2); Madhya Pradesh (3) Muzaffarpur Jabalpur; Sagar; Rewa Jharkhand (7) Goa (2) Jamshedur; Ranchi; Hazaribagh; Panaji; Bicholim Deogarh; Rajdhanwar, Chas, Dumka Odisha(13) Cuttack; Berhampur; Karnataka (5) Bhuwaneshwar1; Jeypore; Bhuwaneshwar2; Bhuwaneshwar3, Hubli; Belgaum, Udupi, Jajpur, Angul, Bhadrak, Balasore; Vijaynagar, Gulbarga Nimapada; Sundergarh; Raj Khariar 1144 Our Brands Banka, Bihar JEYPORE, ORISSA 15 Board of Directors Mr. Ram Chandra Mrs. Uma Agarwal Mr. Akash Agarwal Ms. Rochelle Susanna Agarwal Dsouza Chairman and Managing Director Whole Time Director Whole Time Director & CFO Nominee Director • Mr. Agarwal holds a bachelor’s • Mrs. Agarwal holds a • Mr. Akash Agarwal holds a • Ms. Rochelle Susanna Dsouza degreeinCommerce. bachelor’sdegreeinArts. bachelor’s of business holds BE in Electronics & administration from Lancaster • Has a vast experience of ~ 25 years • Has a vast experience of ~ 15 CommunicationandanMBA.She University,UK ofentrepreneurialandbusiness yearsintheretailindustry. isalsoaCFALevelIIICandidates • He has more than 7 years of • HehasbeenamemberoftheBoard • Has been a member of the • Is a Principal at Lighthouse , a experience in the Retail ofDirectorssinceinception. Board of Directors since mid-market consumer focused Industry. inception. privateequityfund. • Heprovidesstrategicdirectiontothe • He looks after E-Commerce, Company and is the driving force • She oversees the marketing • Prior to Lighthouse, she worked ProcurementandFinancial. behind the establishment and strategiesoftheCompany. at SBI Capital Markets, growthoftheCompany. Investment Banking Division, where she focused on equity • He is the pioneer in value retailing capitalmarkettransactions. andbroughtthisconceptinIndia. • He was conferred several awards at different forums such as Ernst & Young Entrepreneur of the year award in 2008 and 4Ps Power Brand Awardin2007. Board of Directors Mr. HarbirSingh Sidhu Dr. Arun Kumar Roopanwal Mr. Lalit Kumar Mrs. Archana S Yadav Independent Director Independent Director Independent Director Independent Director ▪ A Graduate (BA HONS) from ▪ He has over 35 Years of ▪ He has over 30 Years of ▪ A Chartered Accountant in Cambridge University having extensive experience in experience in India and practice with more than 14 vast experience of 44 years. working with various retail Dubai. As an years of experience, having companies. Entrepreneurial Profits & expertise in GST, Income Tax, ▪ MrSidhu has taught Growth strategist, he has International Tax & Corporate Economics at Punjab ▪ He is having a vast experience worked with multiple Audits. University and JNU & the field of Marketing, Product sectors like Finance, worked as consultant with Development, Business Retail, Education & Skill ▪ She served as Financial Advisor Planning commission. Development, Strategic Development, to the autonomous body M/s Planning and Administration. Infrastructure etc.. National Institute of Solar ▪ He has vast experience in Energy, under Ministry of New retail industry, he has ▪ Mr. Lalit has extensive & Renewable Energy. She has worked with: Ebony Retail experience in Retail also worked with various Holding as Operations Industry. He was MNC’s as Management Manager, Vishal Mega Mart associated with various Consultant, Service tax as Operations Manager, retail chains both in India Consultant & Direct Tax KoutonsRetail as Executive and Dubai. He has also advisor. Vice President, Credo been a visiting faculty to Brands Marketing Private NIFT, New Delhi. ▪ She was appointed as GST Limited (Mufti) as CEO Faculty by ICAI for GST knowledge sharing across India. Financial Highlights – Standalone Profit & Loss Account ₹ in Million Particulars FY2016 FY2017 FY2018 FY2019 FY2020 CAGR Revenue from Operations 3,199 4,720 5,594 7,484 7,012 22% Total Income 3,225 4,736 5,627 7,583 7,035 Growth (%) 11% 47% 19% 35% -7% 20% Gross Profit 9 56 1,388 1,804 2,421 1,960 GP Margin (%) 30% 29% 32% 32% 28% EBIDTA 3 14 4 15 5 17 4 69 7 60 25% EBIDTA Margin (%) 10% 9% 9% 6% 11% Other Income 25 16 33 99 23 Depreciation 44 61 84 1 44 5 05 Finance Cost 1 32 86 6 7 2 99 PBT Before Exceptional Item 163 283 460 417 (21) PBT Margin (%) 5% 6% 8% 5% 0% Exceptional Item (Gain) / Loss 2 33 2 66 -125 Profit for the period 1 22 3 90 3 11 2 05 1 01 PAT Margin (%) 4% 8% 6% 3% 1% Total Comprehensive Income 122 390 3 10 2 04 9 6 * FY 2016 as per IGAAP 2244 Financial Highlights – Standalone Balance Sheet Particulars (₹ in Mn) FY2020 FY2019 Particulars (₹ in Mn) FY2020 FY2019 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant and equipment 8 89 9 77 Equity share capital 3 41 3 41 Right to use Assets 2 ,394 - Other equity 2 ,464 2 ,613 Other intangible assets 12 21 Total - Equity 2,805 2,954 Intangible assets under development 41 41 Financial assets LIABILITIES Loans 59 48 Non-current liabilities Other financial assets 1 23 16 Borrowings 8 10 Investment in Subsidiary 1 50 - Lease Liability 2 ,658 - Deferred tax assets (net) 2 12 1 10 Financial liabilities 1 1 Income tax assets (net) 19 17 Provisions 24 17 Other non-current assets 1 73 2 19 Other non-current liabilities - 45 Total - Non-Current Assets 4,073 1,448 Total Non-Current Liabilities 2,691 72 Current assets Inventories 1 ,962 2 ,711 Current liabilities Financial assets Borrowings 226 93 Cash and cash equivalents 6 05 83 Lease Liability 213 - Bank balances other than cash & cash 70 - Trade payables 1 ,094 1 ,394 equivalents Other financial assets 3 10 Other financial liabilities 12 19 Trade Receivables 1 30 - Provisions 19 10 Other current assets 2 30 2 66 Other current liabilities 12 20 Total - Current Assets 2,999 3,070 Total - Current liabilities 1,576 1,536 Liabilities directly associated with assets Assets classified as held for sale - 1 24 81 classified as held for sale TOTAL - ASSETS 7,072 4,643 TOTAL - EQUITY AND LIABILITIES 7,072 4,643 25 Robust Financial Performance Revenue (₹ Million) EBIDTA (₹ Million) and EBIDTA Margins PBT (₹ Million) PAT (₹ Million) 26 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) 27 Thank You For further information please contact: Investor Relation Advisors: Company: Dr. Rahul Porwal Mr. Sudhir Kumar Marathon Capital Advisory Private Limited (Company Secretary & Compliance Officer) Tel : +91-22-40030610 V2 Retail Limited Email : rahul@marathoncapital.in Tel : +91-11-41771850 Email : cs@vrl.net.in 28