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Presentation Made To Analysts/Institutional Investors (Company Update)
Presentation Made To Analysts/Institutional Investors (Company Update)
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ARCHANA
Digitally signed by
ARCHANA SASTRY
SASTRY
NUDURUPATI
NUDURUPATI Date: 2016.07.08
10:48:29 +05'30'
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Worlds largest Logistics and Transportation Software Product Company with operations in 11
Countries, over 1,000 Employees and 500 Customers across the Globe with combined user base of
over 60,000.
Listed on BSE and NSE, Indias premium Stock Exchanges since 2004
Founded in 1999
Palred Technology Services Pvt Ltd (PTS - ecommerce software company) established as a subsidiary of
PTL January 2015
Palred Online Technologies Pvt Ltd (POT - Incubation Company) brought under subsidiary structure of
PTL October 2014
Change of Name from Four Soft Limited to Palred Technologies Ltd (PTL) December 2013
LatestOne.com
Palred Online
Technologies (POT)
High-end IT
Services
Palred
ecommerce
solutions
Palred Technology
Services (PTS)
Corporate Structure
Inventory
based
Online
Classifieds
B2C e-Commerce
Market
LatestOne.com
Online Retail
Marketplace
Online Travel
e-Commerce Models
Financial
Services
Digital
Downloads
Vertical defined by high margin, high volume, moderate value and small in size
Products
High value addition through combination of technology, systems & processes,
fulfillment capabilities and online sales
Simplification of a complex business involving continuously changing products and
thousands of stock keeping units (SKU) / items
Competitive advantage and differentiation by above three parameters
Objectives
Sales and conversion focused traffic generation, monitoring and management with high ROI (above 5.0
on Gross Revenue)
Continuous and timely introduction of new products (ex: Power banks, Smart watches, Smart phone
lens, VR Headsets etc). Procurement office in China
Source from factories directly and private labelling (PTron), with high margins (above 60%)
Breadth of Product range will be a differentiator (10,000+ SKUs). Simplify complex backend operations,
not amenable for horizontal players and market place.
End-to-end integration and implementation of Systems, Processes and Automation for efficient and
scalable fulfillment operations (implemented) Offbiz + Talend + AX (ERP)
Superior ecommerce IT solution suitable to Indian markets responsive design, suited for mobile
internet users with low bandwidth (already developed). Ranked above 90% by Google
Strategy
* Market Size increases by 50% when the list of proposed categories is completed
This category has evolved since 2010 and emerged as a vertical with substantial market size in 2014.
Expected to grow at 20% YoY until 2020.
New entrant will require two years (minimum) to setup similar operations
No vertical specific competitor currently in India in this domain. Marketplace models cannot address
this domain satisfactorily
TV Accessories
Mini PC / Cast / Android TV
CC TV
Universal Remotes
Bluetooth
Fitness Bands
Speakers & Headsets
Smart Watches
Keyboards
Product Categories
Cables
HDMI Cables
VGA Cables
DVI Cables
Toslink Cables
AV Cables
USB Cables
Networking Cables
Switches and Converters
Sourcing
F a c
t o r y
Importers
in India
&
Wholesalers
Hybrid
Marketplace
Retail Model
Shipments
Bulk
PO
BLR
BOM
_______
DEL
_______
HYD
_______
Fulfillment Centers
Business Model
Store Sales
Small
Format
Franchisee
Kiosk
LatestOne
Digital
Sales
Platform
10
Build Technology
Establish systems and processes
Procurement from China
Setup of first fulfillment center
(Hyderabad)
Trial operations
Execution - Milestones
11
Technology upgrade
Page loading time reduced by
50%
Conversion increased from 2.5%
to 4.0%
Organic / seo orders 10%
Average order value increased to
INR 750 by Mar 2016
Average of 3,500 orders per day,
crossed 5,000 orders in a single
day
Second fulfillment center in
Delhi operational
Full Year Gross Revenue of 60 Cr
and Net Revenue of 40 Cr
Crossed 7,500 SKUs
Alexa Ranking of 1,800
3.31
29%
13%
485
128
64
714
Net ROI
COGS
3.97
Q3
Q4
1,340
120
151
495
21%
27%
2.72
3.63
FY 14-15
Gross ROI
Description
Key Metrics
2,299
207
226
457
22%
33%
1.62
2.19
Q1
2,673
240
260
519
28%
39%
1.38
2.10
Q2
FY 15-16
3,216
290
158
521
29%
36%
2.21
3.30
Q3
12
3,212
290
210
730
29%
40%
2.27
3.49
Q4
63,320
421,219
Q1 16-17
Total
10.00
5.00
11.50
2.25
Power Banks
Bluetooth Headsets
Smart Watches
Cables
31.57
107,279
Q4 15-16
7.69
72,771
Q3 15-16
350
1,200
700
1,000
10.08
4.54
4.80
83,480
Q2 15-16
4.46
94,369
Q1 15-16
Quarter
13
28,595
38,123
38,741
Q2 15-16
Q3 15-16
Q4 15-16
289,111
283,460
240,556
206,865
18,618
Q1 15-16
Month
13%
13%
12%
9%
14
2.01
2.68
1.95
0.28
6.92
0.32
4.45
0.3
-3.83
-53%
PBT ( C - D + E )
% of Net Revenue
FY 14-15
9.43
-1.82
-0.37
7.24
COGS
Customer Acquisition Cost
Logistics Cost
Service tax expense
Total Direct Costs (B)
Gross Profit / (Loss) (C=A-B)
Description
Gross Revenue
Undelivered Returns
VAT
Net Revenue (A)
Growth (YoY)
Financials Audited
15
-19.43
-51%
8.98
0.7
14.34
22.27
9.9
2.72
49.23
-11.15
FY 15-16
57.69
-17.24
-2.37
38.08
426%
Q4
Q1
Q2
15-16
Q3
Q4
Q1
16-17
0.84
0.63
2.24
0.32
0.84
0.15
-0.35
-14%
Logistics Cost
PBT ( C - D + E )
% of Net Revenue
-74%
-3.48
0.15
3.89
4.68
1.32
1.84
1.26
0.75
COGS
4.68
83%
2.56
-65%
-4.34
0.15
2.13
-2.93
9.64
1.88
4.9
2.29
44%
6.71
-81%
-6.75
0.19
2.95
-4.82
13.19
2.25
6.8
3.31
25%
8.37
-46%
-4.14
0.13
3.08
-1.76
10.84
2.69
4.5
3.08
8%
9.08
-30%
-4.20
0.23
3.54
-1.64
15.56
3.08
6.07
5.66
53%
13.92
16
-17%
-1.97
0.12
2.27
0.18
11.17
2.15
4.64
4.37
-18%
11.35
Q3
Growth (QoQ)
Description
14-15
17
LatestOne will become a fully profitable operation if the above tasks are executed
successfully. Direct cost break-even (Contribution Positive) achieved in Q1 2016-17
Increase Organic / Direct / SEO sales from 10% to 15% by March 2017
Increase Average order value to INR 800 (10% increase from Q4 2015-16)
PTron Largest semi branded name in tech accessories organized retail category
18
LatestOne.com - ecom Portal for tech & mobile accessories, only player in the vertical
Branded Products
Semi-branded Products
Select un-branded products
Value Components
19
Funding options being explored. Above outlook is subject to change if the funding exercise
is completed in this FY.
Outlook 2016-17
Thank You
20