Greetings of the Season
It is a pleasure to be with you once again sharing the highlights of your Company'sperformance for FY 2018-19 (FY19)- the second year after your Company's spin off as anindependent listed Company.
Sustained Growth in Turnover and Customer Reach During FY19 your Company achieved aturnover of Rs. 684.23 Crore recording a same store sales growth of 10%. With the openingof 6 new stores across India we added about 1 Lakh sq. Ft of retail space. Our brand"hometown" is now available in 48 stores across 9.6 lakh sq. Ft of retail space.
The growth was strongly enabled by the core beliefs at Praxis- that customersatisfaction is the most important factor in long term business growth and that we cancontinuously satisfy our customers by providing an unmatchable Value in all the productand service categories we offer to them. During FY19 enhanced customer satisfaction andloyalty were visible in a higher Net Promoter Score (NPS) of 83% in the last quarter ofFY19 and the Average Google rating of hometown stores at a high of 4.7 out of 5.0.Another measure of customer satisfaction "On Time Delivery" stood at 92% in thelast quarter of FY19. We continue to stay committed towards continuous improvement incustomer satisfaction and loyalty through happiness.
Initiatives for Leadership through Technology Our aspiration to be the market leadercontinues to ignite creativity energizes us and enables us to deliver what we commit.This ultimately generates greater value for our shareholders. During FY19 we took severalstrategic technology led initiatives towards market leadership primarily driven bydigitalization. Here is a quick report on each:
Endless Aisle -
This is an interactive in-store kiosk. It provides a large touch screen display thatallows our customers to browse through the entire product catalog irrespective of whetherthe products are displayed physically in that store or not. This enables the customers tocheck and order the widest possible range of our products. We have implemented thistechnology in 30 stores as part of Phase-1.
Responses from both customers and the sales team have been severalpositive. Stores hasbeen boosted by this initiative. We plan to invest further in Endless Aisle to make itmore user friendly and expand it to our remaining stores.
Customer Relationship Management (CRM) -
Most of our stores now have a robust CRM System that benefits both our salespeopleand our customers. It provides to the Sales teams a 360-degree view of each customerincluding the customer's purchase history. It enables a much faster check out process.Salespeople can also check stock availability on real time basis with help of "CRMTab".
Digital Web Experience -
Growth in our digital presence is driven by our revamped website hometown.in andthe hometown app with improved product discovery and user onsite experience. During FY19this enabled us to welcome more customers and fulfill more orders than ever before.
We believe that effective Corporate
Governance is a pre-requisite for the attainment of excellent performance. Your Companyendeavors to institute systems and procedures that help statutory compliance andfacilitate management in greater transparency and institutional soundness. We believe inembedding the best of corporate governance practices in our day to day operations to buildand retain the trust of our shareholders employees customers suppliers regulatorybodies and various other stakeholders.
Sustainable Profitable Growth
Our focus on Customer Satisfaction and loyalty has yielded positive results with growthin sales numbers. We are confident that sustained growth will bring profitability soonerthan later.
We have therefore continued to make meaningful investments in organizationalcapabilities people processes and technology. These are vital investments for thefuture. Wewillcontinuouslystrivetobecome more accessible and affordable for our customersby efficiently utilizing the resources through expansion aimed at reaching morecustomers while we strengthen our processes constantly. We will keep seeking potentialprofitable avenues to create long term value for the Shareholders.
We are thankful to our valued Shareholders for their continued support and trust in us.Our earnest thanks are also due to vendors and partners for their commitment and supportextended to us. I feel proud in acknowledging the commendable efforts and commitmentsshown by our most valued resource-our people -who have always contributed their best andwho continue to set new benchmarks. I end with a reassurance that we shall striveceaselessly to enhance value for each stakeholder!
Chairman & managing director