Vaibhav Global Limited Q1FY22 Result and Conference Call Transcripts

Q1FY22 Result Analysis

Q1FY22 Result:

• The Revenue from Operations of the company has increased from 24% to Rs. 682 Cr. in the quarter ended 30^th June 2021 from Rs. 550 Cr. in the quarter ended 30^th June 2020. Quarter on Quarter the revenue of the company has also increased from 2.4% from Rs. 666 Cr. in Q4FY21.
• The Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of the company have also increased from 24.2% YoY from Rs. 74 Cr. in Q1FY21 to Rs. 91 Cr. in Q1FY22 while quarter on quarter, the EBITDA of the company has also gone up by 16.5% from Rs. 78 Cr. in Q4FY21.
• The EBITDA margin has remained flat year on year at 13.4% in Q1FY22. Whereas on quarter on quarter basis, the EBITDA margin of the company has expanded by 140 bps QoQ from 12% in Q4FY21.
• The Profit Before Tax (PBT) of the company has also increased significantly by 77.7% YoY from Rs. 67 Cr. in Q1FY21 to Rs. 119 Cr. in Q1FY22. Sequentially, the PBT of the company has increased from 64.8% from Rs. 72 Cr. in Q4FY21.
• The Net Profit of the company has also increased impressively by 86.8% YoY from Rs. 53 Cr. in Q1FY21 to Rs. 99 Cr. in Q1FY22. Sequentially, the same has increased by 76.4% QoQ from Rs. 56 Cr. in Q4FY21.
• The Net Profit Margin of the company has also expanded by 490 bps YoY and 610 bps QoQ to 14.5% in Q1FY22.

Vaibhav Global- Q1 FY22 Result

2) Quarterly Highlights:

• Robust 22.8% YoY growth in retail revenues.
• Strong Return Ratios with ROCE at 60% and ROE at 31% (TTM Basis)
• Free Cash Flow at Rs. 32 Cr.
• Unique Customers (TTM basis) improved 4,72,278 from 4,25,921 in the same period the previous year.
• Expansion of retail footprint to Germany (Shop LC GmbH)
• Declared interim dividend of Rs. 1.5 per equity share

Earnings Call Highlights:

Business Highlights:

• The company gained traction on TV Home Shopping, e-Commerce, and several emerging platforms.
• The company gains operating leverage to expand EBITDA for a good quarter.
• Declared dividend for Q1FY22 of Rs. 1.5 per equity share.
• Currently, the company is having about 25,000 unique items available to customers and tends to add about 100 to 150 new products every day by keeping a close eye on emerging trends, fashion, and needs.
• Retention rates stood at 45.7% on a TTM basis compared to 50.5% for the same period last year.
• The company achieved 21% growth in both US and UK in their local currencies.

Expansion:

• The company is expanding through marketplaces in new geographies such as in Canada, Germany, and Japan.
• Also, it has commenced retail operation in Germany with a launch of the local website and TV Channel.
• With 38 million households, Germany is Europe’s largest home shopping market and Shop LC GmbH has now started operating, broadcasting from a partner studio to over 17 million households across the country.
• Soon the company will be starting operation from its studio in Dusseldorf.
• Launch in Germany represents entry into 3^rd significant retail market globally.

UK Business:

• Another key initiative implemented in the recent past is the launch of TJC Plus for UK Customers.

TV Business:

• TV includes customers accessing our products through our proprietary TV channels that reach their homes, both on conventional TV media as well as free to air channels on OTA platforms.
• TV revenues have grown by 24.6% year-on-year to Rs. 426 crore and. TV contribution to the retail revenue is now at 64% with the rest coming from the web segment as the business gains greater balance.
• The reach of TV networks by the end of Q1FY22 was 102.5 million TV Homes which is not further enhanced by 17 million households added in July in Germany.
• Taken some new distribution in the US, especially OTAs, and the beauty channel in the UK.
• New registrations during TTM basis continue to be strong and came in at 2.9 lakh compared to 2.37 lakh in the corresponding period of the previous year.

Web Business:

• The web includes online purchases on our proprietary websites and shopping apps apart from popular marketplaces and social commerce.
• Web revenues by 19.7% year-on-year to Rs. 243 crore during Q1 FY22

Solar Power Generation and Others:

• The company invested in solar power generation and 100% of our Jaipur manufacturing plants' power needs are now covered by green energy.
• Also invested in rainwater harvesting, effluent treatment, tree plantation, and most recently Miyawaki forest on a one-acre site in Jaipur.

Business Outlook:

• Reiterates the guidance of 16% to 18% retail revenue growth in constant currency in old geographies of the US and UK for the current financial year.