KDDL Ltd — Investor Presentation 2022

Jun 9, 2022

KDDL Limited

Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123

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Ref : KDDL/CS/2022-23/21 Date : 9[th] June, 2022

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, Mumbai - 400 051

BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001

Trading Symbol : KDDL

Scrip Code : 532054

Subject: Investor Presentation

Dear Sir/ Madam,

Please find enclosed Investor Presentation for Q4 FY22.

Kindly take the same on record.

Thanking you,

Yours truly

For KDDL Limited

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Brahm Prakash Kumar Company Secretary

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KDDL Limited

Investor Presentation June 2022

Safe Harbor

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This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Ltd, (the “Company”), 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.

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 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 expressed in or implied by this Presentation. The Company assumes no obligation to update any forwardlooking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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Q4 & FY22 Performance Overview

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Q4FY22 Performance

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KDDL Standalone Performance (Rs. Crs.)

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Revenue
+23%
62.0
50.5
Q4FY21 Q4FY22
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PAT
+75%
8.3
4.7
Q4FY21 Q4FY22
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KDDL Consolidated Performance (Rs. Crs.)

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Revenue
+27%
225.9
178.2
Q4FY21 Q4FY22
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PAT
+23%
11.2
9.1
Q4FY21 Q4FY22
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FY22 Performance

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KDDL Standalone Performance (Rs. Crs.)

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Revenue PAT
+48%
+ 6 times
218.0
20.6
146.9
3.4
FY21 FY22 FY21 FY22
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KDDL Consolidated Performance (Rs. Crs.)

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Revenue
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+49%
816.2
548.8
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FY21
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FY22
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PAT

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+ 5 times
37.1
7.0
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FY21
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FY22
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New Capex to drive growth

Dials Factory

• Expansion of Dials factory situated at Derabassi, Punjab

• The expansion will enhance the capacity of the unit by 0.5 million pcs. per annum, especially to cater for exports to the medium-high watch segment of Swiss Watches

• The expansion will involve capex of Rs. 16 crores and will be executed in phases over two years period (in FY23 and FY24)

Steel Bracelets

• Setting up of a new plant for manufacturing of top quality steel bracelets for watches around Bangalore (Karnataka)

• The plant will cater exclusively to mid and high-end Swiss and European watches market

• The expansion will involve a capital expenditure of Rs. 25 crores to be executed over next two years (in FY 23 and FY 24)

• The plant is intended to be setup with a capacity of 100k steel bracelets p.a.

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Standalone Profit & Loss

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Profit & Loss (Rs. Crs.)	Q4FY22	Q4FY21	YoY%	FY22	FY21	YoY%
Revenue	62.0	50.5	23%	218.0	146.9	48%
Cost of Goods Sold	16.3	12.1		57.2	37.7
Gross Profit	45.7	38.4	19%	160.8	109.2	47%
Employee Expenses	17.4	14.6		64.9	49.7
Other Expenses	16.7	11.7		55.6	35.7
EBITDA	11.7	12.2	-4%	40.3	23.9	69%
Margin (%)	18.8%	24.2%		18.5%	16.2%
Other Income	2.3	-0.2		5.5	2.5
Interest	1.9	2.2		7.6	9.3
Depreciation	3.0	2.9		11.7	12.0
PBT	9.0	6.9	31%	26.5	5.1	415%
Tax	0.8	2.2		5.9	1.8
PAT	8.3	4.7	75%	20.6	3.4	508%

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Consolidated Profit & Loss

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Profit & Loss (Rs. Crs.)	Q4FY22	Q4FY21	YoY%	FY22	FY21	YoY%
Revenue	225.9	178.2	27%	816.2	548.8	49%
Cost of Goods Sold	128.4	101.3		471.8	323.5
Gross Profit	97.5	76.9	27%	344.4	225.3	53%
Employee Expenses	32.9	26.0		120.4	86.3
Other Expenses	33.8	23.7		116.9	74.0
EBITDA	30.8	27.3	13%	107.1	65.0	65%
Margin (%)	13.6%	15.3%		13.1%	11.8%
Other Income	2.9	2.7		15.3	18.4
Interest	6.4	6.4		24.8	26.8
Depreciation	11.7	10.9		45.4	46.0
Share of Profit / (Loss) of equity accountedinvestees	0.0	0.2		0.0	0.1
PBT	15.7	12.8	22%	52.3	10.6	-
Tax	4.5	3.8		15.1	3.6
PAT	11.2	9.1	23%	37.1	7.0	-

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Consolidated Profit & Loss |Without IND AS 116

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Profit & Loss (Rs. Crs.)	Q4FY22	Q4FY21	YoY%	FY22	FY21	YoY%
Revenue	225.9	178.2	27%	816.2	548.8	49%
Cost of Goods Sold	128.4	101.3		471.8	323.5
Gross Profit	97.5	76.9	27%	344.4	225.3	53%
Employee Expenses	32.9	26.0		120.4	86.3
Other Expenses	42.1	31.5		150.9	106.7
Normalized EBITDA	22.5	19.4	16%	73.1	32.2	127%
Normalized EBITDA Margin (%)	9.9%	10.9%		9.0%	5.9%
Other Income	2.9	2.7		15.3	18.4
Interest	3.6	3.6		13.9	15.3
Depreciation	5.0	4.4		18.5	18.7
Share of Profit / (Loss) of equity accounted investees	0.0	0.2		0.0	0.1
Normalized PBT	16.8	14.3	18%	56.0	16.8	234%

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Standalone Balance Sheet

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Assets(Rs. Crs.)	Mar-22	Mar-21	Liabilities(Rs. Crs.)	Mar-22	Mar-21
Non-current assets	248.1	216.2	Equity	215.9	173.1
Property, plant and equipment	92.6	90.8	Equityshare capital	12.8	11.7
Capital work-in-progress	2.3	1.1	Other equity	203.1	161.3
Right-of-use asset	9.4	10.7
Investment Property	0.1	0.3
Other intangible assets	0.1	0.2	Non-current liabilities	47.5	53.0
Intangible assets under development	0.0	0.0	Financial Liabilities
Financial assets			(i)Borrowings	39.0	40.9
(i)Investments	137.8	107.5	(ii)Lease Liabilities	2.5	4.2
(ii)Loans	0.8	0.8	(iii)Other financial liabilities	1.1	1.6
(iii)Other Financial assets	0.9	1.5	Provisions	-	0.4
Income Tax Asset	2.8	2.8	Deferred tax liability (net)	4.9	5.9
Other Non Current Assets	1.2	0.5
Current assets	102.9	83.6	Current liabilities	29.4	36.8
Inventories	27.9	26.5	Financial Liabilities	2.4	2.0
Financial assets	0.0	0.0	(i)Borrowings	20.7	14.7
(i)Trade receivables	45.2	31.6	(ii)Lease Liabilities	14.4	10.7
(ii)Cash and cash equivalents	13.3	10.6	(iii)Tradepayables	16.7	5.6
(iii)Other bank balances	2.9	2.9	(iv)Other financial liabilities	3.7	3.5
(iv)Loans	0.7	1.5	Other current liabilities	0.4	0.3
(v)Other financial assets	3.3	2.6	Provisions	29.4	36.8
Other current assets	9.7	7.8	Current tax liabilities(net)	2.4	2.0
Total Assets	351.1	299.7	Total Liabilities	351.1	299.7

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Consolidated Balance Sheet

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Assets(Rs. Crs.)	Mar-22	Mar-21	Liabilities(Rs. Crs.)	Mar-22	Mar-21
Non-current assets	300.8	277.9	Equity	309.9	227.3
Property, plant and equipment	159.9	153.7	Equityshare capital	12.8	11.7
Capital work-in-progress	2.3	4.9	Other equity	239.0	174.8
Right-of-use asset	104.9	91.7	Non ControllingInterest	58.0	40.7
Intangible assets	0.6	0.6
Intangible assets under development	0.0	0.1
Investment Property	1.4	-	Non-current liabilities	170.1	160.7
Equityaccounted investees	1.6	0.9	Financial Liabilities
Financial assets			(i)Borrowings	77.2	77.4
(i)Investments	0.5	0.5	(ii)Lease Liabilities	84.8	72.9
(ii)Loans	0.8	0.9	(iii)Other financial liabilities	1.7	2.5
(iii)Other financial assets	12.0	10.4	Provisions	1.4	2.0
Income Tax Asset	4.7	4.3	Deferred tax liability (net)	4.9	5.9
Deferred tax assets(net)	9.1	8.2
Other Non Current Assets	3.0	1.7
			Current liabilities	258.5	229.6
Current assets	437.7	339.7	Financial Liabilities
Inventories	279.5	225.5	(i)Borrowings	77.7	78.4
Financial assets			(ii)Lease Liabilities	25.3	20.9
(i)Trade receivables	45.4	40.8	(iii)Tradepayables	105.6	87.1
(ii)Cash and cash equivalents	52.0	30.9	(iv)Other financial liabilities	24.0	20.7
(iii)Other bank balances	5.1	5.2	Other current liabilities	17.4	15.1
(iv)Loans	1.0	0.7	Provisions	7.8	6.5
(v)Other financial assets	9.3	11.6	Current tax liabilities(net)	0.6	0.9
Other current assets	45.4	25.0
Total Assets	738.5	617.6	Total Liabilities	738.5	617.6

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Manufacturing Business Overview

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Introduction - Watch Dials and Hands Business

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Watch Dials
Watch Hands
Value
Proposition
▪ Commercial operations
began in 1983 ▪ Commercial operations
▪ Leading Global supplier of began in 1996 ▪ Deep Understanding of the
Global Watch Industry
Watch Dial serving many ▪ Only supplier in India and
well-known brands all
one of 5 independent ▪ Established relationships
over the world
manufacturers globally; with Swiss Watch makers
as well as Indian Watch
facilities located at
▪ Manufacturing facilities makers
Bengaluru
located at Parwanoo &
▪ ▪
Derabassi, near Acquired Estima AG in Consistent Manufacturing
Chandigarh in India Switzerland; to enhance meeting International
Quality norms
presence in mid-priced
▪ Capability to manufacture
segment European Brands
dials with high & complex
features
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Precision Engineering Business

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Eigen offers a full package of services, ranging from design and development to full scale production, providing customers with optimized supply chain solutions

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Value Proposition
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We address various segments such as Electrical, Electronics, Automobile, Telecommunications, medical equipment, Aerospace, Consumer Durables etc

Capabilities

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Customers
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Enabling our customers to meet their design and production needs for over 12 years. We have some of the most well-known names in their industry as our esteemed customers

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Manufacturing Performance*

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Revenue (Rs. Crs.)
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EBITDA (Rs. Crs.)
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218 40
+11%
+11%
181
176
32
29
146 147 27
24
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
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The results for FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with previous periods

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*Excludes the Financial Performance of Estima AG, Switzerland

Ethos - Consolidated Profit & Loss

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Profit and Loss (in Rs. Crs)	Q4FY22	Q4FY21	YoY	FY22	FY21	YoY
Revenue from Operations	158.7	123.1	29%	577.3	386.6	49%
Other Income	1.9	2.1		12.8	16.4
Total Income	160.6	125.2		590.1	403.0
Cost of Goods Sold	110.8	87.5		411.1	281.7
Gross Profit (Revenue - COGS)	47.9	35.6	35%	166.2	104.9	58%
Gross Profit Margin	30.2%	28.9%		28.8%	27.1%
Employee Cost	11.5	9.6		42.4	29.2
Other Expenses	15.3	10.3		56.9	36.0
EBITDA	23.0	17.8	30%	79.7	56.1	42%
EBITDA Margin	14.3%	14.2%		13.5%	13.9%
Depreciation	8.0	7.7		31.5	32.5
EBIT	15.0	10.1	48%	48.2	23.6	104%
Finance Cost	4.5	4.1		16.7	17.0
Share in Profit/(loss) in JV and Associates	0.0	0.2		0.0	0.1
Profit before Tax	10.5	6.2	70%	31.5	6.7	369%
Tax	2.7	1.7		8.1	2.0
Profit After Tax	7.8	4.5	74%	23.4	4.8	392%
Profit After Tax Margin	4.9%	3.6%		4.0%	1.2%

For Ethos updates – Please refer to the presentation uploaded to stock exchanges by Ethos Limited

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For further information, please contact:

Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC008123 CIN : U74140MH2010PTC204285 Mr. Sanjeev Masown, CFO – KDDL Mr. Shogun Jain/ Mr. Shrenik Shah sanjeev.masown@kddl.com +91 77383 77756 / +91 9664 764465 shogun.jain@sgapl.net / Shrenik.shah@sgapl.net www.kddl.com www.sgapl.net

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