TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
| Corporate Relations Department
Date: 27.05.2022
Corporate Listing Department National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No.C-1, G Block Bandra-Kurla Complex Bandra (East), Mumbai 400 051.
| |
|
BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Tower Dalal Street, Fort, Mumbai 400 001
Dear Sir/s
Sub: Investor presentation for Q4 and Financial Year ended 315t March 2022.
Scrip Code: BSE Code: 541700, NSE Code: TCNSBRANDS
Ref:
Regulation
30
of
SEBI
(Listing
Obligations
and
Disclosure
Requirements)
Regulations, 2015.
With reference to the above captioned subject, please find herewith, enclosed Investor Presentation for Q4 and Financial Year ended 318t March 2022. The aforesaid Investor Presentation is also being disseminated on Company's website at https://wforwoman.com/content/investor-relation
This is for your information and records.
Thanking you
behalf of TCNS Clothing Co. Limited
WING
erétary and Compliance Officer
Date: 27.05.2022 Place: New Delhi
On
TCNS Clothing Co. Limited 119 & 127, W-HOUSE, NEELGAGAN TOWER, MANDI ROAD,SULTANPUR, MEHRAULI, NEW DELHI-110030, INDIA PH: 011-42193193, Fax: 011-42193194, E-mail: corporatecommunications@tcnsclothing.com, www.wforwoman.com, www.shopforaurelia.com REGD, OFFICE: 119, W-HOUSE, NEELGAGAN TOWER, MANDI ROAD, SULTANPUR, MEHRAULI, NEW DELHI- 110030 CIN- L99999DL1997PLC090978
TCNS Clothing Co. Ltd
Q4 & Full Year, FY22 Results May, 2022
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by TCNS Clothing Co. Limited (the “Company”), have been prepared 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 what so ever. 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 forward-looking 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.
2
Contents
TCNS Overview
Q4 and Full Year FY22 Business Update
Your Text Here
Q4 and Full Year FY22 Detailed Financials
TCNS Overview
Your Text Here
TCNS - India’s Leading Women’s Branded Apparel Company
Portfolio of segment leading brands straddling across fashion sensibilities and value chain
Largest womenswear distribution network with ~4000 outlets and market leading omnichannel capabilities
Diversified supply chain network with 250+ supply chain partners
50+ in-house cutting-edge design team developing over 5000 styles every year
High ROIC, asset-light business model;
Strong cash reserves
5
TCNS houses distinct brands in women’s outerwear segment, each with a focused positioning to offer a comprehensive portfolio for Indian women consumer
Premium fusion wear
Premium occasion wear
Contemporary ethnic wear
The ultimate coordinates destination
6
TCNS has widest womenswear reach with ~4000 points of sales, with strong owned omnichannel network and deep partnerships across all key offline and online retailers
Own Omnichannel Network 599 EBO Stores across India and International markets
•
LFS Partners – ~2300 doors
• Own brand websites offering complete selection and deeper engagement
Key Online Partners
MBO – ~1100 doors
7
With 50+ inhouse design team and 250+ suppliers pan-India, TCNS has a scalable, well- connected & diversified Design-to-Production network
50+
In-house design team focused on driving innovation and creating fashion trends
250+
Partners/ suppliers ranging from artisanal groups to large mills, enabling a highly differentiated product every single time
5000+
Product styles launched every year across Apparel, Footwear, Accessories & Cosmetics
Automated Inventory management system and nimble production and reordering cycle for reduced Concept-to-Shelf
Integrated warehousing facility powered by a strong WMS, upgraded infrastructure and specialized operations team
8
Business Update
Your Text Here
Sales recovery: Full year sales grew by 41% over FY21; Total store count at 599 – ahead of pre-covid levels for the first time
Revenue from Operations – Rs Crs.
Full Year FY22
Q4 FY22
221
234
1000
900
800
700
600
500
400
300
200
100
0
1.4
896
635
250
200
150
100
50
0
FY21
FY22
Q4FY21
Q4FY22
Q4 Highlights
• Offline: store expansion picking up
pace, 31 stores opened in Q41 ➢ Significant disruptions in January ➢ Steady recovery since wave 3; many geographies tracking ahead of pre-covid nos
• Online: secondary sales continue to grow well; website now contributing 1/5th of overall online sales. ➢ Q4 reported sales impacted due to inventory with marketplaces - in line with shift towards D2C model
realignment
• MBO business scaling up well with strong order book in Monsoon- Festive trade show
Note: (1) on a gross basis; 24 on net basis
10
Recap - FY22 Key Priorities: Invest in building growth runways and key capabilities while preserving balance-sheet strength
Calibrated Offline Expansion
Project Rise: upgrade and expand the flagship stores to tap into available real estate opportunity
Project Bharat: expand store network across tier 3/4 markets through franchisee-led model
Online Business Growth Calibrated Offline Expansion
Continue scale-up of own website through deeper omni offerings, personalized marketing and technology upgradation
Expand third-party marketplace with new business models, additional channels and online first product offering
Cash Conservation
Reduce working capital through inventory optimization and lower-risk trade models
Continue optimizing costs on all fronts, especially rentals and overheads
Swifter Thought-to-Shelf
Enhance design, sampling and production capabilities to develop products closer to season launch
Institutionalize next phase of Automated inventory management
•
•
•
•
•
•
•
•
11
Key results: a number of wins against the Key Focus Areas in FY22
• Opened total 84 stores in FY22 across brands on a gross basis and 48 on net – 14 Project Rise, 15 Project Bharat
Calibrated Offline Expansion
stores operational as on date
Project Rise: stores tracking at 1.5-2X of revenues already; Another 11 stores in pipeline
Online Business Growth Calibrated Offline Expansion
Scaled-up brand websites through deeper omni offerings, personalized marketing and technology upgradation. Own website tracking at one-fifth of total Online sales
Expanded third-party marketplace with new models; Omnichannel fulfillment at ~20% share for select channels
•
•
•
• Navigated the entire COVID crisis with strong working capital controls and cost management; Sustained pre-covid
cash levels without any fund raise
Cash Conservation
•
•
•
Strong balance sheet positions the business to accelerate growth by investing in working capital & store expansion
Swifter Thought-to-Shelf
Established nimbler supply chain for faster production of a significant part of the total range
Key growth building blocks put in place - Automated inventory management and Integrated warehouse
12
W in its new avatar – new retail identity unveiled for W with Indiranagar, Bengaluru store
Project Rise: One stop solution for complete head-to-toe look - showcasing all categories and complete product range comprehensively
13
Expanding Project Rise - the new identity and purchase experience launched across key markets
14
Complete assortment of brand collections showcased – Wishful & Folksong
15
New categories represented in full glory in Project Rise stores
16
Completing the head-to-toe look
17
In parallel, initiated marketing investment: W - journey to a lifestyle brand that offers one-stop fashion solution to the consumer
Campaign: W is More
18
Online: secondary sales continue to grow well on a large base
Q4 Highlights
• Brand website continued sharp traction – now
contributing one-fifth of online business
• D2C business driving growth. Share of D2C increased to majority of online
business business
• Omni-channel fulfillment at store level scaled up. Sharp increase resulting in ~20% fulfillment contribution for select channels
19
Navigated the pandemic without any external fund raise while maintaining strength of the balance sheet
Cash Reserves (INR Cr.)
Working Capital (INR Cr.)
200
180
160
140
120
100
80
60
40
20
0
171
182
156
450
400
350
300
250
200
150
100
50
0
383
352
363
FY20
FY21
FY22
FY20
FY21
FY22
20
New forays achieving critical mass; geared up for wider roll-outs
Elleven
Footapparel
Folksong
➢ 7 new stores opened in Q4, total tally now at 17 stores; 50+ LFS doors operational
➢ Now retailed through 200+ EBOs
➢ Expanded the presence to 70+
EBOs
21
The TCNS platform is set for accelerated growth
External trends Demand scenario improving
Internal capabilities Building blocks in place
Ethnic segment recovering back to normal – offices and events restarting
First comprehensive season launch in MF22 after gap of 2 years
Consumers back in stores – engaging with fashion
Platform ready for accelerated scale-up
Balance sheet strength to fuel growth ambitions
All partners demonstrating confidence with expansion plans
Supply chain geared up - integrated warehouse & automated inventory planning
22
FY23 focus: accelerating growth along multiple dimensions
100+ crore ARR for new forays
2X share of Omnichannel
25%+ of online revenue
25+ Project Rise stores
100+ store addition
New Brand / Categories Scale each foray across channels and expand product assortment
Third-party Marketplaces Leveraging strategic marketing, scaling the omni-channel fulfilment model and launching online-first products
Brand Website Build deeper omnichannel offerings personalization capabilities
and
Store Upgradation Enhanced Retail presense across key markets to showcase full representation of all brand collections and product categories
Store Addition Expansion in existing markets and franchisee- led Project Bharat stores in tier 3+ markets
23
Q4 FY 22 : Summary Performance
Particulars (Rs Million)
Q4FY22
Q4FY21
Growth -YoY%
Revenue
EBITDA
PBT
PAT
2344
319
-76
-58
2211
410
47
39
6%
-22%
NA
NA
% to Revenue
Q4FY22
Q4FY21
EBITDA
PBT
PAT
13.6%
18.6%
-3.3%
-2.5%
2.1%
1.8%
Growth -YoY%
41%
142%
NA
NA
FY22
8961
1243
-72
-57
FY22
13.9%
-0.8%
-0.6%
FY21
6355
514
-769
-564
FY21
8.1%
-12.1%
-8.9%
24
Q4 FY 22 : Brand-wise performance
Share of Brands (%)
Q4FY22
38%
W
Aurelia
Wishful
56%
6%
6%
Q4FY21
38%
W
Aurelia
Wishful
56%
25
Q4 FY 22 : Channel-wise performance Channel Wise Revenue Split
Q4FY22
9%
15%
38%
Q4FY21 3% 3%
21%
34%
42%
38%
# of EBOs
W
Aurelia
Wishful
Elleven
Total
LFS
EBO's Online & Others MBO
As of Mar’22
Q4 Openings
332
245
5
17
599
4
12
1
7
24
Pan India Multichannel Presence
3,837
575
3,995
599
2204
2298
1058
Dec-21
1098
Mar-22
MBOs
LFS
EBOs
26
Detailed Financials
Your Text Here
Profit & Loss Statement
S.No.
Particulars (In Rs. Million)
1.
Income
(a) Revenue from operations
(b) Other income
Total income
2.
Expenses
(a) Cost of materials consumed
(b) Purchases of stock-in-trade (c) Changes in inventories of finished goods, WIP and stock-in- trade (d) Employee benefits expense
(e) Finance costs
(f) Depreciation and amortisation expense
(g) Rent expenses
(h) Selling and distribution expenses
(i) Other expenses
Total expenses
Profit/(loss) before tax (2 - 4)
Total tax expense
Profit/(loss) for the period/year (5 - 7)
3.
4.
5.
Q4FY22
Q4FY21
YoY
Q3FY22
QoQ
FY22
FY21
YoY
2344
122
2466
1240
44
-554
408
108
287
0
646
363
2211
181
2392
605
64
272
319
114
249
0
534
188
2542
2345
-76
-18
-58
47
8
39
6%
-33%
3%
105%
-31%
28%
-5%
15%
21%
93%
8%
3285
47
3332
977
50
31
422
95
229
10
847
317
2979
353
103
251
-29%
159%
-26%
27%
-12%
-3%
14%
25%
-24%
14%
-15%
8961
347
9307
3718
148
-770
1502
372
944
42
2326
1098
9380
-72
-15
-57
6355
490
6845
2205
80
439
1214
365
919
17
1596
781
7615
-769
-206
-564
41%
-29%
36%
69%
84%
24%
2%
3%
148%
46%
41%
23%
-91%
-93%
-90%
28
Balance Sheet
Assets (Rs Million) Non-current assets (a) Property, plant and equipment (b) Capital work-in-progress (c) Right of use assets (d) Other intangible assets (e) Financial assets - Other financial assets (f) Deferred tax assets (net) (g) Non-current tax assets (net) (h) Other non-current assets Total non-current assets Current Asset (a) Inventories (b) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Other financial assets (c) Other current assets Total current assets TOTAL ASSETS
Mar-22
Mar-21
435 16 3566 31 512 561 109 66 5296
307 5 2686 21 444 550 103 30 4147
3609
2781
1456 1738 104 3 5 396 7311 12607
1724 1648 146 3 4 289 6594 10741
Equity & Liabilities (Rs Million) Equity (a) Equity share capital (b) Other equity Total equity Liabilities Non-current liabilities (a) Financial liabilities (i) Lease liabilities (ii) Other financial liabilities (b) Provisions (c) Other non-current liabilities Total non-current liabilities Current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Other financial liabilities (b) Provisions (c) Current tax liabilities (net) (d) Other current liabilities Total current liabilities Total liabilities Total equity and liabilities
Mar-22
Mar-21
123 6075 6199
3394 109 140 14 3658
0 739 1716 116 5 43 132 2720 6408 12607
123 5997 6120
2632 50 124 8 2814
54 619 912 72 4 43 105 1808 4622 10741
29
For further information, please contact
Company :
Investor Relations Advisors :
CIN: L99999DL1997PLC090978
CIN: U74140MH2010PTC204285
Mr. Amit Chand
Mr. Rahul Agarwal / Mr. Aakash Mehta rahul.agarwal@sgapl.net / aakash.s.m@sgapl.net +91 98214 38864 / +91 98706 79263
www.tcnsclothing.com
www.sgapl.net