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Aditya Vision Q2 FY24 Performance

Performance in Q2

Q2FY24 Q2 FY23 YoY %
Rev 315.6 260.14 21.3%
Expense 303.28 245.72 23.4%
Gross Profit 12.32 14.42 -14.6%
GM% 3.9% 5.5% 1.6%
PAT 9.63 11.35 -15.2%
PAT % 3.05% 4.36% -1.3%

No of Stores State wise (130):

Bihar – 97 stores

Jharkhand – 20 stores

Uttar Pradesh – 13 stores

  • Zero Store closure since inception

  • No Private labels are sold at Aditya Vision Store

  • Customer Service Strong Financial Management

  • :black_small_square: Aditya Seva - One-stop solution for after-sales services.

  • :black_small_square: Aditya Suraksha – Allows customers to enjoy an extended warranty

  • :black_small_square: Customer Loyalty Reward Program – Buy & Win since 2012

  • Operates on a cash-and-carry model

  • Efficient inventory management, (Inventory of Rs. ) for festive season and Q1 FY25

  • High cash reserves of Rs.

  • Avg Capex per Store is ~60 Lakhs

  • Avg period for break even of new store is 8 months.

  • Avg Working Capital per store is Rs. 2.25 Cr

  • Revenue per SqFT is ~Rs. 40,000/-.

  • Employee cost and Rent Cost at 3% of Sales.

  • Quarterly tentative Share of revenue based on FY19 to FY23 trend:

  • Q1 30% - Summer season led by marriage and AC sales

  • Q2 18% - Lowest due to monsoon and shradh

  • Q3 28% - Propelled by Festive and Marriages

  • Q4 24% - Marriage, Pre Summer sales, End of year sales by brands

  • Target to grow at 20-25% CAGR, by reinvesting cashflows at higher ROIC for next 3-5 years in hindi heartland.

  • Electricity consumption grew by 2 times in Bihar/UP/Jharkhand:

Electrical appliance ownership:

% of house hold owning TV,Fridge,WashingMachine AC owners
UP 15.70% 2.40%
Bihar 3.70% 4.0%
Jharkhand 6.20% 2.1%
Chattisgarh 7.90% 0.9%
Odisha 7% 1.5%
WB 4.80% 3.4%

Concall highlights:

  • Entire festive season has fallen in Q3 FY24, Good growth in revenue is expected. Electronic loan mela in Panchayat/ Block level for rural customers in Bihar/ UP/ Jharhand has got great response.

  • Aug and Sept sales were robust with >20% growth.

  • Bihar revenue share 81%, Jharkhand 8%, UP2% (new stores)

  • Expansion is steady opening of stores. Open 10-15 additional store 145 Store to be opened in FY24.

  • Earlier guidance of 150 Stores by FY25 end is revised to 160-165 stores. Southern in saturated market new market is the hindi heartland.

  • Inventory remain on the higher side in Q2 and Q4 as AVL does not want to face a stock out situation in Q1 and Q3 seeing the best demand during these times. Q2 inventory is at Rs. 283 Cr

  • 30% stores are less than 6 months old. Going forward they will achieve the break even and add to profit.

  • ESOP of Rs. 2.5 Cr given to employees.

  • OPM has gone down by 1.2% YoY, new store opening has its impact on this %. With new stores maturing in next few quarters this will normalize.

  • Very Bullish Q3 is expected.

  • AC business has grown by 30% in H1.

  • 18 Smaller store out of 130 rest are larger. Going forward larger stores are in focus for volume business.

  • Retail financing is helping big time in this store success. Plenty of money inflow from Outside Bihar is also one aspect along with improved electricity consumption.

  • Cashflow from operation has increased. Rs. 97.78 Cr Q2 FY vs Rs. 21.77 Cr. Q2 FY23.

  • Because big investors wants to buy large number of shares promoters are to sell from their share as the share is very illiquid. Post listing on NSE in FY25 this issue may get resolved when at a bigger platform it is traded.

  • No Private brand selling at AVL stores.

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