VAIBHAV GLOBAL LIMITED - NSE
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VAIBHAV GLOBAL LIMITED
Ref: VGL/CS/2020/122 Date: 01st August, 2020
National Stock Exchange of BSE Limited
India Limited (NSE) Phiroze JeejeeBhoy Towers,
Exchange Plaza, C-1, Block G, Dalal Street,
Bandra Kurla Complex, Mumbai – 400001
Bandra, Mumbai – 400051 Scrip Code: 532156
Symbol: VAIBHAVGBL
Subject: Financial Presentation
Dear Sir / Madam,
Pursuant to regulation 30(6) of the SEBI (LODR) Regulations, 2015 please find enclosed
Financial Results Presentation of Q1 FY 2021.
This is for your information and record.
Thanking you,
Yours Truly,
E‐69, EPIP, Sitapura, Jaipur‐302022, Rajasthan, India • Phone: 91‐141‐2770648, Fax: 91‐141‐2770510
Regd. Office: K‐6B, Fateh Tiba, Adarsh Nagar, Jaipur – 302004, Rajasthan, India • Phone: 91‐141‐2601020, Fax: 91‐141‐2605077
CIN: L36911RJ1989PLC004945 • Email: investor_relations@vaibhavglobal.com • Website: www.vaibhavglobal.com
Vaibhav Global Limited
Financial Results Presentation
Q1 FY21
Global Retailer of Fashion Jewellery, Accessories, and Lifestyle Products on Home Shopping TV and e-Commerce Platforms
Safe Harbor
This presentation contains statements that contain “forward looking
statements” including, but without limitation, statements relating to the
implementation of strategic initiatives, and other statements relating to
Vaibhav Global Limited (VGL) and its affiliated companies’ future business
developments and economic performance.
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, governmental 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 - JULY 2020 2
MD’s Message
"I am very pleased to report yet another quarter of exceptional performance by VGL. In the backdrop
of widespread impact of the Covid-19 pandemic, we have once again demonstrated our core business
characteristics of inclusion and agility. This has resulted in solid growth in retail revenues of 32%,
EBITDA of 42% and PAT of 47% on a stable and healthy balance sheet. We generated Rs. 82 crore of
free cash during the quarter and ROCE expanded further to 49%. The Board announced an interim
dividend of Rs. 5 per share.
VGL has a history of executing successful business pivots that have enabled the Company to emerge
strong from tough operating situations. In Q4FY20, as we saw nervousness in the markets, we
responded with agility and expanded customer outreach through uninterrupted supply of essential
products on our omni-channel sales platform. Maintaining adequate safety protocols and leveraging
our unique manufacturing and sourcing-based supply chain, we have increased our relevance in our
target markets over the last few months. The quarter saw several milestones being achieved,
including sales volumes of ~3.2 million, the highest ever in any one quarter. Sustained focus on our
strategic objectives of the 4R’s – widening Reach, growing new customer Registrations, improving
customer Retention, and increasing Repeat purchases, remains central to overall growth.
In these challenging times, we have also remained true to our other business objective – that of
inclusion. We have given our employees a safe work environment while protecting their livelihoods
and remuneration. We have created virtual sourcing mechanism for our diverse base of global
vendors. And, most importantly, we donated ~161,500 masks to healthcare workers, hospitals and Mr. Sunil Agrawal
care homes and provided ~3.4 million meals to migrants and people in need. Managing Director, Vaibhav Global Limited
VGL is at an exciting point in its journey towards becoming a global leader in electronic retailing of
fashion jewellery and lifestyle products. And as we pursue our business initiatives, we are committed Commenting on Q1 FY21 Performance
to delivering joy to all our stakeholders."
RESULTS PRESENTATION - JULY 2020 3
Covid-19: Continuous Response
Covid-19 Response
Employees Investors Customers Supply Chain Community
▪ ‘Borderless workforce’ ▪ Sustained focus on a ▪ Continued retail operations ▪ Temporary shutdown in ▪ Donated ~1,61,500 masks
with no latency healthy Balance Sheet in US & UK operations balanced by across US, UK and India
▪ Protected livelihoods and ▪ Cash and cash equivalents ▪ Modified product mix to efficiently managing ▪ Provided ~3.4 mn meals to
remuneration of Rs. 358 crore as on June include essential items inventory and leveraging people in need (through
30, 2020 global supply chain Akshaya Patra in Jaipur)
▪ Enhanced collaboration ▪ Uninterrupted call center
and engagement ▪ Renewed focus on cost operations ▪ Prudent and timely
rationalization sourcing made it possible
▪ Implemented adequate ▪ Zero downtime for critical to market essential
health and safety protocols ▪ Continuous pay-back systems products
(Dividends) ▪ Built remote TV production
and broadcast solution as a
contingency plan
▪ Delivered system
enhancements to support
altered product mix
RESULTS PRESENTATION - JULY 2020 4
Q1FY21 – Key Highlights
`
Robust 32% Y-o-Y growth in retail revenues
EBITDA grew by a strong 42% Y-o-Y with margins at 14.1%
Further improvement in return ratios with ROCE expanding to 49%
Free Cash Flows enhanced to Rs. 82 crore; Declared interim divided of Rs. 5 per share
Significant Y-o-Y jump in Unique Customers (TTM basis) to 4,25,921 from 3,47,059
Shop TJC (UK) named Among UK’s ‘Best Workplaces’ and ‘Best Workplaces for Women’ by
Great Place to Work® Institute
Provided 40 million meals since the inception of the One for One program
RESULTS PRESENTATION - JULY 2020 5
TABLE OF CONTENTS
1 Business Background Details
2 Q1 FY21 Financial Performance
3 Financial Performance Trends
4 Annexures
RESULTS PRESENTATION - JULY 2020
Business Background Details
RESULTS PRESENTATION - JULY 2020
Vaibhav Global Limited (VGL) at a Glance
MISSION
VISION Through the delivery of
Be the Value Leader in high quality, affordable
Electronic Retailing of products, made possible by
our low cost direct sourcing,
Jewellery & Lifestyle
we change the world and
Products
touch people’s lives one
piece at a time!
CORE VALUES
Team Work Honesty Passion Positive Attitude Commitment
RESULTS PRESENTATION - JULY 2020 8
Our Global Presence
Retail Markets
UK Shop LC (US) | Shop TJC (UK)
Sourcing
US ▪ India ▪ Brazil
China ▪ China ▪ Sri Lanka
▪ Thailand ▪ US
▪ Indonesia ▪ UK
▪ Tanzania ▪ Mozambique
India ▪ Russia ▪ Germany
▪ Morocco ▪ Italy
▪ Myanmar ▪ Turkey
▪ Madagascar ▪ Poland
▪ Bolivia ▪ Singapore
▪ Kenya ▪ UAE
Manufacturing Countries
India | China
Retail Markets Sourcing Countries Manufacturing Countries
RESULTS PRESENTATION - JULY 2020 9Corporate Overview
Vertically-integrated fashion retailer on electronic retail platforms Shop LC (US) & Shop TJC (UK) are brands with strong customer
▪ End-to-end B2C business model visibility
▪ Significant geographical cost arbitrage ▪ TV Homes accessed (*FTE) - 100 million
▪ Proprietary TV home-shopping and e-commerce platforms ▪ Growing online presence
▪ Entire B2C sales is through credit cards ▪ Improving customer engagement metrics
Strong management and governance
▪ Professional management team with deep industry knowledge Exceptional One for One social program
▪ Strong and Independent Board with global retail experience ▪ Every piece sold results in one meal for a school-going child
▪ KPMG – Global Auditor ▪ Provided ~40 mn meals so far across India, US & UK
▪ Deloitte – Internal Auditor
Robust customer engagement
Solid infrastructure backbone
▪ Omni-channel B2C retail presence in developed markets – unique
▪ Investments in customer interface, production, warehousing
achievement for an Indian Company
facilities, supply chain, CRM & ERP
▪ Growing recognition of deep value fashion jewellery enables
▪ Scalable model with limited capex requirement
scaling to adjacent categories
RESULTS PRESENTATION - JULY 2020 10Our Omni-Channel Sales Platform
Shop LC (US)
Shop LC Proprietary TV channels – 75 mn HH including Shop LC live TV stream on shoplc.com, YouTube,
14 mn OTA* HH* Facebook and Amazon Live
TV
Shop LC mobile app Social retail of targeted
Proprietary web platform available on Marketplaces products on
shoplc.com Google
(SAP Hybris web platform)
WEB Marketplace
OTT* platforms
Digital Experience Platform Targeted behavioural marketing UGC and Influencer Marketing Platform
Note:
OTA – Over the Air; OTT – Over the Top; HH - Households RESULTS PRESENTATION - JULY 2020 11Our Omni-Channel Sales Platform
Shop TJC (UK)
Shop TJC Proprietary TV channels – 25 mn HH Shop TJC live TV stream available on tjc.co.uk,
including 17 mn OTA* HH* YouTube and Facebook
TV
Shop TJC mobile app Social retail of targeted
Proprietary web platform available on Marketplaces products on
tjc.co.uk
WEB (Salesforce Commerce web platform)
OTT* platforms
Targeted behavioural marketing UGC and Influencer Marketing Platform
Note:
OTA – Over the Air; OTT – Over the Top; HH - Households RESULTS PRESENTATION - JULY 2020 12Our Value Dashboard
B2C Revenues by format B2C Revenues by product category
TV revenues Web revenues Jewellery Non-jewellery revenues
19% 9% 22%
33% 37% 36%
81% 91% 78%
67% 63% 64%
FY15-16 FY19-20 Q1 FY21 FY15-16 FY19-20 Q1 FY21
59% of web revenues in Q1FY21 were from Mobile platform Jewellery revenues: Fashion jewellery;
(mobile app + mobile web browser) Non-jewellery revenues: Fashion accessories and lifestyle products
Budget Pay penetration of B2C Revenues
Non-Budget Pay revenues Budget Pay revenues
8%
39% 33%
92%
61% 67%
FY15-16 FY19-20 Q1 FY21
Budget Pay revenues refer to products offered on EMI basis
RESULTS PRESENTATION - JULY 2020 13Q1 FY21 Financial Performance
RESULTS PRESENTATION - JULY 2020Financials – Q1 FY21 Performance
Revenue Breakdown – (Rs. crore)
Fashion Jewelry, Accessories & Lifestyle Products
Revenue TV Revenue Web Revenue B2B Revenue
550
440 342
274
203
138
28 5
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
Note:
B2B has been a non-core and opportunistic business segment
In view of strong growth opportunities in B2C, the Company has been scaling down B2B
RESULTS PRESENTATION - JULY 2020 15Financials – Q1 FY21 Performance
Revenue Breakdown – (Local Currency)
Shop LC (US) Shop TJC (UK)
(USD million) (GBP million)
17.1
51.0
42.4 13.0
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
RESULTS PRESENTATION - JULY 2020 16Retail Performance Trends – Q1 FY21
Volume and ASP
TV
Sales Volume ('000s) Average Selling Price US$
1,880
29.2
1,355 24.1
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
Web
Sales Volume ('000s) Average Selling Price US$
1,306 21.3
932
20.6
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
RESULTS PRESENTATION - JULY 2020 17Financials – Q1 FY21 Performance
Profits – (Rs. crore)
Gross Profit EBITDA
Gross EBITDA
Margin (%)
63.1% 64.3% Margin (%)
12.4% 14.1%
354
78
278
55
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
PAT EPS (Rs.)
PAT
Margin (%)
8.2% 9.6% 16.37
53
11.02
36
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
RESULTS PRESENTATION - JULY 2020 18Financial Performance Trends
RESULTS PRESENTATION - JULY 2020Financials Performance Trends
Revenue Breakdown – (Rs. crore)
Revenue
1,986
1,814
1,436 1,571
1,276
440 550
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
Fashion Jewelry, Accessories & Lifestyle Products
TV Revenue Web Revenue B2B Revenue
1,285 633
1,157 201
972 997 510 190
931
373 147
122
274
223 203 69
274 342 138
28
5
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
RESULTS PRESENTATION - JULY 2020 20Retail Performance Trends
Volume and ASP
TV Sales
Sales Volume ('000s) Average Selling Price US$
5,854 5,877 5,737 6,275 6,070 29.9 29.2
24.4 24.9 27.0 26.4 24.1
1,355 1,880
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
Web Sales
Sales Volume ('000s) Average Selling Price US$
4,113 20.4 20.7 21.7 21.3 20.6
3,522 17.5
2,840 15.1
2,264 2,353
1,306
932
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
RESULTS PRESENTATION - JULY 2020 21Financials Performance Trends
Profits – (Rs. crore)
Gross Profit EBITDA
Gross EBITDA
Margin (%) 63.0% 60.1% 59.6% 62.5% 61.6% 63.1% 64.3% Margin (%) 5.9% 7.1% 10.1% 12.0% 13.9% 12.4% 14.1%
1,133 1,224 276
865 936 217
804
159
354 102
278 75 55 78
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
PAT EPS (Rs.)
PAT
3.1% 4.5% 7.2% 8.5% 9.6% 8.2% 9.6%
Margin (%)
190 58.65
154 47.27
113 34.55
65 53 19.85 16.37
40 36 12.27 11.02
FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21
RESULTS PRESENTATION - JULY 2020 22Financial Performance Trends
Balance Sheet – (Rs. crore)
Shareholders’ Equity Fixed assets including intangibles
815 ** 163 ** 163
697 ** 751
129 126 120 117
550
379 434
FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21
Net Debt Net Assets ***
55
6
417 399 ** 394 ** 373
(13) 305 314
(181) (194)
(279)
FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21
Note:
** Ind AS 116 – Leases, has become effective beginning 01 April 2019. The Group has adopted the standard beginning 01 April 2019.
*** Net Assets is the balancing figure arrived at by excluding shareholders equity, net debt, and fixed assets including intangibles
RESULTS PRESENTATION - JULY 2020 23Financial Performance Trends
Cash Flow – (Rs. Crore)
Operating Cash flow Free Cash Flow
203 211
181 176
87 82
70
52
38 35 32
20
(28)
(77)
FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21
Operating Cash Flow: PBT+ Depreciation-(Changes in working Free Cash Flow: Operating Cash Flow – Capital expenditure
capital) + adjustment for non-cash items
Note: Interest charges have been deducted and Interest income has been added while
calculating operating cash flow.
RESULTS PRESENTATION - JULY 2020 24Financial Performance Trends
Key Ratios
ROE (TTM) ROCE (TTM)
26% 26%
25% 49%
23% 46%
37%
16%
27%
12%
18%
13%
FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21
Note -
ROE – based on average net worth
ROCE – based on average capital employed
RESULTS PRESENTATION - JULY 2020 25Annexures
RESULTS PRESENTATION - JULY 2020Delivering Joy to Stakeholders
▪ Unique Customers – 425,921 (Q1FY21 – TTM basis)
▪ Average qty. per customer – 27 pieces (Q1FY21 – TTM basis)
Customers
▪ High quality products & Exotic designs
Rating ▪ Lowe Price – high quality - high affordability
▪ Omni-channel access
▪ Budget Pay (monthly installments) available on higher value
products
▪ Easy Returns available
▪ Recognized as a ‘Great Place to Work’ in Greater China, UK and
Employees
India based on employee surveys conducted
▪ Shop LC received the ‘Governor’s Achievement Level’
recognition from Quality Texas Foundation for on-going quality
improvement and high performance. https://quality-texas.org/
RESULTS PRESENTATION - JULY 2020 27Delivering Joy to Stakeholders
Investors
Year 2017 2018 2019 2020 26% 49%
Rank #219 #162 #147 #132 ROE ROCE
▪ Solar power projects to meet ~45% of the total power
requirement at the manufacturing facilities in Jaipur (current +
Environment
planned solar power project)
▪ Invested in sewage treatment, recycling
biodegradable/plastic/e-waste, ozonator water treatment plant
and reduced production process discharges
▪ Expanding usage of natural materials in packaging/operations;
phasing out non-recyclable materials
Society
▪ ~40 million meals donated under the One for One Program since
this program was integrated with operations
▪ Donated ~161,500 masks to hospitals and care homes
Note -
ROE – based on average net worth; ROCE – based on average capital employed
RESULTS PRESENTATION - JULY 2020 28VGL Shareholder Base – As on 30-June-2020
Holding as on Shareholding Pattern
Key Shareholders (Holding 1%+)
30-June-2020
Individual - >1% Others
Promoter & Promoter Group 58.50%
3.7% 5.9%
Nalanda India Fund Limited (FII) 10.38% AIF 1.1%
Domestic Institutions
Motilal Oswal Multicap 35 Fund (MF) 8.96% (MF, IFI)
9.0%
Malabar India Fund Limited (FPI) 6.63%
Vijay Kedia (Individual) 2.16%
Promoter &
Ashish Kacholia (Individual) 1.54% Promoter Group
Foreign Institutions
(FPI, FII) & NRI 58.5%
Taiyo Greater India Fund Ltd (FPI) 1.42% 21.8%
Malabar Value Fund (AIF) 1.12%
RESULTS PRESENTATION - JULY 2020 29Management Team
Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha
Managing Director Group CFO President, Shop LC (US) Managing Director, Shop TJC
(UK)
Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Vivek Jain
Group Chief Technology Vice President, Supply Vice President, Human Senior Director, Finance,
Officer Chain, VGL Group Resources, VGL Group VGL Group
https://www.vaibhavglobal.com/vgl-management RESULTS PRESENTATION - JULY 2020 30THANK YOU
For more information please contact:
Vaibhav Global Limited
Vineet Ganeriwala, Group CFO Dipti Rajput, DGM (IR)
Vineet@vglgroup.com Dipti.Rajput@vglgroup.com
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