KDDL Ltd — Investor Presentation 2024

Feb 19, 2024

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/2023-24/95 Date : 19[th] February, 2024

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 Q3 & 9M FY24.

Kindly take the same on record.

Thanking you,

Yours truly

For KDDL Limited

Brahm Prakash Digitally signed by Brahm Prakash Kumar Kumar Date: 2024.02.19 11:28:08 +05'30'

Brahm Prakash Kumar Company Secretary

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KDDL Limited

Investor Presentation February 2024

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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Q3 & 9M FY24 Performance Overview

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Q3FY24 Performance

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KDDL Standalone Performance (Rs. Crs.)

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Total Income PAT
+8%
+12.9%
85.3
79.3
13.1
11.6
Q3FY23 Q3FY24 Q3FY23 Q3FY24
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KDDL Consolidated Performance (Rs. Crs.)

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Total Income
+20%
379.7
317.0
Q3FY23 Q3FY24
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PAT
+20%
37.1
30.9
Q3FY23# Q3FY24
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9MFY24 Performance

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KDDL Standalone Performance (Rs. Crs.)

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Total Income PAT
+20%
-23.1%
270.9
226.3 56.6
43.5
9MFY23 9MFY24 9MFY23# 9MFY24
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PAT includes: Other Income of Rs. 49.7 cr (Exceptional Income)OFS/Brand Sales and Exceptional Expenses of Rs 19.0 cr includes One time value creation award to Mr. Yashovardhan Saboo (Chairman & MD)

KDDL Consolidated Performance (Rs. Crs.)

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Total Income PAT
+28% +84%
1,062.8 102.6
832.3
55.7
9MFY23 9MFY24 9MFY23# 9MFY24
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PAT includes: Exceptional Expenses of Rs. 19 cr include One time value creation award to Mr. Yashovardhan Saboo (Chairman & MD)

Brand sale/OFS gain gets eliminated at Consolidated level

*Includes Other Income

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Standalone Profit & Loss

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Profit & Loss (Rs. Crs.)	Q3FY24	Q3FY23	YoY%	Q2FY24	QoQ%	9MFY24	9MFY23	YoY%
Revenue	81.1	76.1		92.7		262.6	220.1
Other Income	4.2	3.2		1.6		8.2	6.2
Total Income	85.3	79.3	8%	94.3	-10%	270.9	226.3	20%
Cost of Goods Sold	18.7	18.5		22.1		61.9	55.1
Gross Profit	66.6	60.8	10%	72.2	-8%	209.0	171.2	22%
Employee Expenses	22.7	20.6		24.7		70.8	59.0
Other Expenses	20.6	19.2		20.4		62.8	55.4
EBITDA	23.3	21.0	11%	27.2	-14%	75.4	56.8	33%
Margin (%)	27.3%	27.6%		28.8%		27.9%	25.1%
Other Income	0.0	0.0		0.0		0.0	49.7^
Exceptional Expense	0.0	0.0		0.0		0.0	19.0#
Interest	2.2	2.2		2.2		6.8	5.9
Depreciation	3.5	3.2		3.5		10.4	9.4
PBT	17.6	15.6	13%	21.5	-18%	58.2	72.3	-19%
Tax	4.5	4.0		5.4		14.8	15.7
PAT	13.1	11.6	13%	16.1	-18%	43.5	56.6	-23%

^Other Income (Exceptional Income)- OFS/Brand Sales

Exceptional Expenses includes One time value creation award to Mr. Yashovardhan Saboo (Chairman & MD)

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Consolidated Profit & Loss

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Profit & Loss (Rs. Crs.)	Q3FY24	Q3FY23	YoY%	Q2FY24	QoQ%	9MFY24	9MFY23	YoY%
Revenue	372.2	312.8		339.7	10%	1043.4	820.2	27%
Other Income	7.5	4.2		6.0		19.4	12.1
Total Income	379.7	317.0	20%	345.7	10%	1062.8	832.3	28%
Cost of Goods Sold	219.8	178.9		189.4		594.2	457.8
Gross Profit	159.9	138.2	16%	156.4	2%	468.6	374.5	25%
Employee Expenses	45.9	37.7		47.1		139.6	110.4
Other Expenses	40.8	40.4		41.0		122.3	113.9
EBITDA	73.2	60.2	22%	68.3	7%	206.7	150.2	38%
Margin (%)	19.3%	19.0%		19.8%		19.4%	18.0%
Exceptional Expense	0.0	0.0		0.0		0.0	19.0
Interest	6.4	5.9		6.8		20.0	17.7
Depreciation	16.6	12.5		16.8		48.1	36.1
Share of Profit / (Loss) of equity accounted investees	-0.1	-0.1		-0.2		-0.6	-0.3
PBT	50.4	41.9	20%	44.9	12%	139.3	77.8	79%
Tax	13.3	11.0		12.3		36.6	22.1
PAT	37.1	30.9	20%	32.7	14%	102.6	55.7	84%
OCI / (Expense)	-1.4	-0.3		1.3		-0.3	0.3
Total Comprehensive Income	38.5	31.2		31.4		103.0	55.5
Minority Interest	12.0	8.1		7.2		26.2	18.3
PAT After Minority Interest	26.5	23.1	15%	24.2	9%	76.7	37.1	107%

Exceptional Expenses includes One time value creation award to Mr. Yashovardhan Saboo (Chairman & MD) Brand sale/OFS gain gets eliminated at Consolidated level

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Commenced - Steel Bracelets Division

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• Started Commercial Production of our 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

• Total Capex incurred Rs ~35 crores

• Total capacity of 100k steel bracelets p.a.

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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 - Standalone

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Revenue (Rs. Crs.)
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EBITDA (Rs. Crs.)
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305
+16%
218
181
176
146 147
FY18 FY19 FY20 FY21 FY22 FY23
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80
+24%
41
32
31
27
25
FY18 FY19 FY20 FY21 FY22 FY23
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FY22 Financials are adjusted and includes the impact of merger of Satva Jewellery and Design Limited with KDDL Limited FY21 Financials were adversely affected by the COVID-19 pandemic and may not be strictly comparable with previous periods

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Ethos - Consolidated Profit & Loss

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Profit and Loss (in Rs. Crs)	Q3FY24	Q3FY23	YoY	Q2FY24	QoQ	9MFY24	9MFY23	YoY
Revenue from Operations	281.2	229.7	22.4%	235.2	19.6%	746.5	581.0	28.5%
Other Income	6.2	3.7		4.3		15.2	9.6
Total Income	287.5	233.3		239.5		761.7	590.5
Cost of Goods Sold	197.4	158.4		161.8		519.5	397.7
Gross Profit (Revenue - COGS)	83.8	71.3	17.4%	73.4	14.0%	227.0	183.2	23.9%
Gross Profit Margin	29.8%	31.0%		31.2%		30.4%	31.5%
Employee Cost	16.3	13.1		17.3		51.0	37.6
Other Expenses	22.9	22.3		18.9		60.3	56.6
EBITDA	50.8	39.5	28.5%	41.5	22.2%	130.9	98.5	33.0%
EBITDA Margin	17.7%	16.9%		17.3%		17.2%	16.7%
Depreciation	12.5	8.8		12.7		35.9	25.2
EBIT	38.3	30.7	24.4%	28.8	32.6%	95.0	73.3	29.6%
EBIT Margin	13.3%	13.2%		12.0%		12.5%	12.4%
Finance Cost	4.0	3.1		4.1		12.0	10.7
Share in Profit/(loss) in JV and Associates	0.1	0.1		0.2		0.6	0.3
PBT	34.3	27.7	23.8%	24.9	37.8%	83.6	62.9	32.9%
PBT Margin	11.9%	11.9%		10.4%		11.0%	10.7%
Tax	8.8	7.0		6.3		21.3	15.9
PAT	25.5	20.7	23.5%	18.6	37.1%	62.3	47.0	32.4%
PAT Margin	8.9%	8.9%		7.8%		8.2%	8.0%

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 Sanjeev Masown, CFO – KDDL Shogun Jain/ Mandar Chavan sanjeev.masown@kddl.com +91 77383 77756 / +91 96993 82195 shogun.jain@sgapl.net / mandar.chavan@sgapl.net www.kddl.com www.sgapl.net

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