 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Three Months

Region Fiscal 2019 Fiscal 2020 Fiscal 2021 ended June 30, | ended June 30,
2020 2021
@iillion except percentage)
East 4.07 2.29 2.27 0.09 0.32
West 2) 38.10 27.35 21.31 2.07 0.18
North ©) 7.83 4.78 2.69 0.26 0.16
South 89.58 82.56 45.30 2.21 3.21
Total revenue 139.58 116.98 71.56 4.63 3.86
Channel 44.11 40.00 33.79 1.85 1.67
EBITDA®
Channel
EBITDA 31.60% 34.20% 47.21% 40.00% 43.16%
margin (%)
Notes.

1. East Region comprises Assam, Bihar, Chhattisgarh, Jharkhand, Odisha and West Bengal

2. West Region comprises Goa, Gujarat and Maharashtra

3. North Region comprises Delhi, Himachal, Haryana, Uttar Pradesh, Madhya Pradesh, Punjab, Rajasthan and Uttarakhand
4, — South Region comprises Tamil Nadu, Andhra Pradesh, Telangana, Pondicherry, Karnataka and Kerala

5. Channel EBITDA does not include corporate overhead expenses

We may continue to open more stores in such states. Existing and potential competitors to our businesses may
increase their focus on these states, which could reduce our market share. For example, our competitors may
intensify their efforts in these states to capture a larger market share by launching aggressive promotional
campaigns. The concentration of our operations in these states heightens our exposure to adverse developments
related to competition and other changes, which may adversely affect our business prospects, financial conditions
and results of operations. In the event of a regional slowdown in the economic activity in these regions, or any
other developments including political or civil unrest, disruption or sustained economic downturn that reduce the
demand for our products in these regions, could adversely affect our business, financial condition and results of
operations, which are largely dependent on the performance and other prevailing conditions affecting the
economies of these regions. Any adverse development that affects the performance of the stores located in these
states could have a material adverse effect on our business, financial condition and results of operations. Our past
store sales may not be comparable to or indicative of future sales.

Additionally, while opening new stores, we consciously follow a cluster-based approach which leads to
concentration of our business in a relatively small area rather than a widespread presence. More than one store
located close to each other in a cluster may lead to each such store eating into the sales of the other stores in the
cluster leading to falling sales in each of such stores.

5. We carry out our operations from a single warehouse located in Southern India. Any disruption in the
operation of our warehouse, including due to adverse developments in the region, may have an adverse
effect on our business and prospect.

Our warehouse is currently located in Southern India and any significant disruption, including due to social,
political or economic factors or natural calamities or civil disruptions, impacting this region may adversely affect
operations. Further, our warehouse may be subject to operating risks, such as performance below expected levels
of efficiency, labor disputes, natural disasters, industrial accidents and statutory and regulatory restrictions. We
also rely on our automated inventory system that streamlines operations across our warehouse, for efficient
inventory management, and any defects or operational challenges in such system may disrupt our operations at
our warehouse and consequently at our stores. We rely significantly on the timely delivery of our products and
our ability to have an uninterrupted supply of our products is critical to our business. Any disruption of
operations of our warehouse could result in delayed delivery of our product, which in turn may lead to inventory
challenges at our stores, such as inability to meet demand and carry out sales as anticipated, compelling us to
forego some sales had such products been available at the stores. Although no such disruptions have occurred
in the past, we cannot assure you that such incidents will not occur in the future. While our strategic objectives
include geographical expansion across India, in the event that we are unable to make available our products in
a prompt manner and within the requisite timelines or if there is a lapse in coordination across stores located
countrywide, our business, financial condition and prospects may be adversely affected.

29
