It's my honour and privilege to present to you the 21st Annual Report ofyour Company for Financial Year 2019-20. I would like to express my heartfelt gratitudefor your continued support and faith bestowed upon Aditya Vision Limited and itsmanagement team. I hope you and your family members are healthy and staying safe duringthis unprecedented COVID-19 pandemic.
At the outset I must mention the unprecedented pandemic of COVID-19 which gripped theentire world and its widespread outbreak which forced the entire world into a lockdownnever heard or experienced since last century has inflicted a global economic recession.Due to this businesses and economies has all suffered as people have isolated themselvesfrom others to prevent the spread of the virus. As the pandemic spread our topmostpriority has been to safeguard the health and well-being of our employees andcustomers.Several measure such as cutting expenses and liquidating stocks were undertakento ensure Company remained adequately liquid.
Our past 20 AGMs were held in person just like that of any other company - however thisCOVID-19 pandemic has disrupted conventional ways of doing business as well as conductingbusiness related affairs. Your Company was no exception to this phenomenon.
Stringent restrictions imposed to curtail the spread of the virus and the subsequentnationwide lockdown have disrupted livelihoods and overall economic activity in thecountry and your Company was no exception. Due to pandemic discretionary spending hastaken a backseat and disrupted supply chain. As expected due to series of lockdowns andvarious restrictions in movements of people and goods the national GDP contractedmenacingly in Q1 by almost a quarter. As all retail businesses your Company has alsosuffered enormously and effects on performance may be significant.
As on date of this address I must caution our stakeholders that unfortunately our allshowrooms and offices started this financial year in closed state as national lockdown wasimposed on 24th March 2020 which continued fully till 1st week ofMay. Thereafter a series of restrictions in doing business during unlock phase as well astruncated timings of operational showroom opening also led to adverse impact on ourFY2020-21 Q 1 sales. Even after partial opening of showrooms limited footfalls of customerhas been noticed due to this pandemic as people chose to remain indoors and postponedtheir discretionary spending save apart in few segments like televisions etc.
Mankind always see an opportunity in every adversity. For us - its digital disruptionand this online AGM is just another testament of it. To overcome the shift in consumerpurchasing pattern and to arrest the decline in discretionary spending the Companylaunched omnichannel model (offline to online) to enhance customer shopping experience. Iam delighted to share that our omnichannel initiative has got a good response and itsperformance is being continuously monitored by my team.
The company's performance metric for FY 2019-20 is tabled below for reference.
|Particulars ||FY 2019-20 ||FY 2018-19 ||Growth |
|Gross Revenue ||963 ||691 ||39% |
|Net Revenue ||797 ||563 ||42% |
|EBITDA ||34 ||17 ||97% |
|NOPAT ||14 ||6 ||143% |
*A11 Figures are in INR Crore
Gross Revenue for FY 2019-20 grew by 39% and Net Revenue grew by 42% when compared toFY 2018-19. EBITDA grew at 4.3% in FY 2019-20 against 3.1% last year. It is worth notingthat same store sales growth stood at 16%. Net profit stood at 14.02 crore against 6 crorelast year a growth of 143%. Earnings per Share (EPS) for FY 2019-20 stood at Rs. 9.94.
Given a strong performance in FY 2019-20 I am pleased to inform that Board ofDirectors has decided to declare a dividend of 25% amounting to Rs. 2.50 on face value ofRs. 10/- each per share.
Highlights of our financial performance during the year 2019-20.
Gross Revenue of Rs. 963 crore and Net Revenue of Rs. 797 crore
EBITDA of Rs. 34.33 crore
Net Profit of Rs. 14.02 crore
Earnings per Share (EPS) of Rs. 9.94
Number of Showroom: 48 (As on date)
Number of Districts covered in Bihar: 28
There were few tactical initiatives where Company converted its Sony Centre to Zipformat at Kankarbagh (Patna) due to change in business strategy of Sony and shifted itsZero Mile Patna showroom in a more spacious and prominent building adjacent to old storeas a signature showroom.
Our company is in a growth phase and is opening new showrooms in areas where value canbe found. In FY 2019-20 the company opened 4 new showrooms. In the current financial year(FY2021) the company has opened 5 new showrooms; taking the total count of showrooms to48. In the coming months the company plans to open 15 new showrooms to take the count to63 showrooms across Bihar. The list is tabled below for reference.
New Showroom Opening Roadmap
|FY 2019-20 ||FY 2020-21 ||New Store Opening |
|Muzaffarpur f3rd Showroom! ||Buxar ||Bhagalpur (2nd Showroom} |
|Boring Road Zip (Patna} ||Raxaul ||Ashiana Zip (Patna} |
|Katihar ||Pataliputra Zip (Patna} ||Ashok Raj Path Zip (Patna} |
|Madhubani ||Forbesganj ||Hazipur Zip |
| ||Saharsa ||Supaul |
| || ||Jhanjharpur |
| || ||Dehri-on-Sone |
| || ||Danapur (Patna} |
| || ||Gaya (3rd showroom} |
| || ||Khagaria |
| || ||Laherisarai |
| || ||Zero Mile Zip |
| || ||Bailey Road Zip2 |
| || ||90ft Road Zip New Byepass (Patna} |
| || ||Danapur Zip |
Additionally - proposed locations for remaining current financial year and years aheadare Jamui Jehanabad Araria Mohania Madhepura Sheohar Kishanganj Sheikhpura ArwalBanka and few small format Zip stores. I am happy to share that Company is looking forwardto have its presence across all district headquarters of Bihar state by FY22 thereby notonly further consolidating its position of No.l retailer of white good products in entirestate of Bihar but also among top retailers of the country. We are also exploring thepossibilities of expanding our branch network to other states as well.
On behalf of the entire Board of Directors and the management team 1 would like tothank you for your continued support and encouragement. The dedication and commitment ofthe employees and officers at all levels continues to be the major strength for thecompany. We shall make continuous efforts to build on the strengths to face futurechallenges and sustain the momentum for profitable growth.
|Yashovardhan Sinha |
|Managing Director |