VFL Presentation Final Q4-and-FY23
VFL Presentation Final Q4-and-FY23
VFL Presentation Final Q4-and-FY23
Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vedant Fashions Limited (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.
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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
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively
forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and
assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various
international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future
levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its
exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results
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Content
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Introduction to Vedant Fashions
Indian Wedding and Celebration Wear Brands
Headquartered in Kolkata,
One-stop destination with wide
incorporated in 2002 by Mr. Ravi
product portfolio for every
Modi, Vedant Fashions offers Indian
celebratory occasion; aspirational
wedding & celebration wear for
yet value-for-money offering
men, women & kids
Source: *Crisil Report; As of FY20 (latest available); Note: (1) OPBDIT is Operating profit before depreciation, interest & tax; (2) Includes 112 shop-in-shops (SIS)
Vedant Fashions Limited • 5
What makes Manyavar Special
Aspirational Yet Value for Money Multi-brand Product Portfolio Strong Control Over Entire Ecosystem
▪ Strong design capabilities with data-driven/ AI backed
▪ Aspirational Brand with Aristocratic & decision-making and demand forecasting
seamless customer experience
▪ One-stop destination with wide product ▪ Tech-driven unique supply chain & inventory mgmt.
▪ Uniform pricing across online & offline portfolio for men, women & kids catering to with Automated Replenishment System at pin code
channels in India all celebratory occasions across price points level
▪ No discounts/ end-of-season sales for
▪ Low level of obsolete & dead stock ▪ Integrated secondary sales network with full visibility of
Manyavar brand products sold at our stores
▪ Multi Decade growth Opportunity for the ▪ 52 Week Design collection Model
▪ Having First mover advantage, VFL scaled up and
Category from here organized highly unorganized and fragmented category
Incorporated Vedant 1st Official Indian • Crossed INR • Launch of Launch of Listing on Stock
Fashions Pvt. Ltd. International Wear Partner of 3 5,000 mn in EBO Manthan (Value Manyavar Exchanges
store in Dubai IPL teams revenue Celebration Wear mobile app
(UAE) • 1st Store in USA label)
• Official Sponsor of
2 IPL teams
Financial Summary 24
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Key Investment Highlights/ Our Strengths
Brands
Target Group Men, Boys Women Men Men, Women, Kids Men
Distribution EBOs, MBOs, LFS, E-commerce EBOs & E-commerce EBO’s EBO’s MBOs, LFS, E-commerce
Source: Crisil Report; *As of FY20 (latest available); Note: (1) Brand ‘Manyavar’ started operations via predecessor entity in 1999; (2) Brand ‘Mebaz’ was started in 2002 but was acquired by Company in 2017;
(3.) Large scale operations commenced after refreshed launch in 2018;
Vedant Fashions Limited • 10
Content
Financial Summary 24
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Our Growth Strategy
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Company key Performance Highlights
Revenue from Operations PAT
Gross Margin % EBITDA Margin % PAT Margin %
(Y-o-Y Growth) (Y-o-Y Growth)
Q4: 66.0 % Q4: 50.2 % Q4: 31.9 %
Q4: 15.3 % Q4: 22.7 %
FY: 67.4 % FY: 50.1 % FY: 31.7%
FY: 30.2 % FY: 36.3 %
❖ Company expanded its retail footprint presence by adding ~75 k sq. ft. retail area in Q4FY23 and 2.04 lacs sq. ft. retail area in FY23, with total retail
presence of 1.47 mn sq. ft. as of Mar 2023; Company also expanded its international presence with new stores in London (UK) and Canada in Q4 FY23,
and has presence in 4 International Countries (USA, UAE, Canada and UK);
❖ Company recorded retail growth (Sale of our Customers) of 26.3% in FY23 as compared to FY22, and retail growth (Sale of our Customers) of 47.1% in
❖ Company recorded retail growth (Sale of our Customers) of 21.2% in Q4 FY23 as compared to Q4 FY22, and retail growth (Sale of our Customers) of 45.8%
❖ Company recorded SSSG growth of 14% in Q4 FY23 compared to Q4 FY22, and SSSG growth of 16.2% in Q4 FY23 over Q4 FY20;
❖ Company recorded SSSG growth of 18.1% in FY23 compared to FY22, and SSSG growth of 17.6% in FY23 over FY20;
❖ Company has achieved ROCE of 95.3% in FY23 and cash conversion ratio (Operating cash flow over PAT) of 105% in Q4 of FY23, and 83% in FY23
Presence (As of FY23) Net Rollout (Q4 FY23) Net Rollout (FY23)
649 9 54
EBO’s* (Including 16 Intl. EBO’s) EBO’s (Including 2 Intl. EBO’s) EBO’s (Including 4 Intl. EBO’s)
245
Cities and towns in India
Note: 1.* Global EBO’s Area and count including shop-in-shops (SIS); EBO’ presence in 12 International Cities in 4 Countries of USA, UAE, Canada and U.K. Vedant Fashions Limited • 15
Key Retail Highlights
INR in mn
VFL recorded SSSG2 of +14% in VFL recorded SSSG2 of +18.1% VFL recorded SSSG3 of +16.2% VFL recorded SSSG3 of +17.6%
Q4 FY’23 over Q4 FY’22 over FY’22 in Q4 FY’23 over Q4 FY’20 over FY’20
Note: (1). Sales of our customers comprises of sales of products of our brands (a) made by our EBOs, LFSs and online channel customers, and (b) made by us to MBOs (including shop in - shops) and certain lateral e -commerce platforms
customers at RSP; (2) SSSG stores for comparing with Q4 FY’22 and FY22 includes stores open on or before 31st Mar’ 2021 and running as on 31st Mar’ 2023; (3) SSSG stores for comparing with Q4 FY20 and FY20 includes stores open on
or before 31st Mar’ 2019 and running as on 31st Mar’ 2023. Vedant Fashions Limited • 16
Key Financial Highlights (Consolidated)
INR in mn
Q4 FY23 YoY Analysis
Revenue from Operations Gross Profit1 & Gross Margin EBITDA2 & EBITDA Margin PAT & PAT Margin
Revenue from Operations Gross Profit1 & Gross Margin EBITDA2 & EBITDA Margin PAT & PAT Margin
VI Tax expense/(credit):
- Current tax 348 511 308 1,445 1,057
- Deferred tax charge/(credit) 18 5 1 23 24
VII Profit for the period / year (V-VI) 1,089 1,504 887 4,291 3,149
Festival
Rakhi - Brocode Diwali - Taiyaar Hokar Aaiye
Financial Summary 24
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Long Track Record of Strong Growth Trajectory
INR in mn
Margins → 33.8% 34.1% 32.2% 40.6% 42.5% Margins → 22.0% 25.8% 23.5% 30.3% 31.7%
“Most Admired Retailer of the year Times Business Award for “Excellence in Supply Chain Management 2004-2008
Marketing and Advertising campaign” “Best Men's Ethnic Wear Brand (East)” & Fulfillment”
Mapic India Times Group Images Retail Tech Award
“Retail Marketing Campaign of the Year” “Highest Job Creator - above INR 300
“Best Employer Branding Award” “Best Men's Ethnic Wear Brand”
ET Now crore to INR 1000 crore”
World HRD Congress and Stars Group Central Icons
ET Bengal Corporate Award
The report titled “Assessment of the apparel industry with a special focus on Indian wedding and celebration wear market in India” dated Sep-2021
Crisil Report
as updated by the addendum dated December 2021 prepared by CRISIL
Apparel worn on special occasions such as weddings; close-knit family functions like puja, house warming, etc.; festivals such as Diwali, Eid, Holi and
Indian wedding & celebration wear
Rakshabandhan; and other events such as Independence Day and Republic Day
Men’s ethnic wear or apparel Apparel including Kurtas, Indo-westerns, Sherwanis, jackets & other accessories
Ready-to-wear Apparel made for general market & sold through shops rather than made to order for an individual customer
Includes sales of products of Company’s brands (a) made by Company’s EBOs, LFSs & online channel customers, & (b) made by Company to MBOs
Sales of Customers
(including shop-in-shops) & certain lateral e-commerce platforms customers at RSP
SIS (Shop-in-shops) An arrangement where a separate retail space is allocated in stores for retailing Company’s products
Women’s ethnic wear or apparel Apparel such as lehengas, sarees & stitched suits