TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Corporate Relations Department BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Tower Dalal Street, Fort, Mumbai 400 001
Dear Sir/Madam,
Date: 11.11.2022
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
Sub: Investor presentation for Q2 and H1 ended 30th September 2022.
Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Scrip Code: BSE Code: 541700, NSE Code: TCNSBRANDS
With reference to the above captioned subject, please find herewith, enclosed Investor Presentation for Q2 and H1 ended 30th September 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. For and on behalf of TCNS Clothing Co. Limited
Piyush Asija Company Secretary and Compliance Officer M. No: A21328
Date: 11.11.2022 Place: New Delhi
TCNS Clothing Co. Ltd
Q2 & H1 FY23 Results November, 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
Business Update
Q2 & H1 FY23 Detailed Financials
TCNS Overview
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 4200+ 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
6
TCNS has widest womenswear reach with 4200+ points of sales, with strong owned omnichannel network and deep partnerships across all key offline and online retailers
Own Omnichannel Network 648 EBO Stores across India and International markets
•
LFS Partners – ~2500 doors
• Own brand websites offering complete selection and deeper engagement
Key Online Partners
MBO – ~1100 doors
7
With 50+ in-house 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
Sales recovery: Achieved highest ever quarterly sales at ~INR 351 crores; Sales grew by 46% over Q2 FY22
Revenue from Operations – Rs Crs.
YoY Growth
QoQ Growth
~1.3X
351
276
351
~1.5X
239
400
350
300
250
200
150
100
50
0
400
350
300
250
200
150
100
50
0
Q2 FY22
Q2 FY23
Q1 FY23
Q2 FY23
Q2 Highlights
• Offline: Offline growth by ~60%
over last year ➢ EBO: Opened 41 stores on gross basis, 32 on net basis – highest ever in a quarter
➢ MBO business scaled up 2.7X
over Q2 last year
• Online: Brand websites: grew to online ~25% share
of
reach revenues
➢ D2C contributing over 60% of
the online revenue
10
Emerging Market Outlook: Improving demand scenario
External trends Demand scenario improving
Business Readiness Prepared for accelerated scale-up
Strong market recovery in all regions barring North
Investment in inventory to secure products ahead of time
Offices reopening; Onset of festivities sans restrictions
Platform ready for accelerated scale-up
Digital-first marketing campaign cutting across online and offline
All partners demonstrating confidence with expansion plans
Aggressive retail expansion underway across EBO and LFS
11
Recap FY23 focus: accelerating growth along multiple dimensions
Focus areas
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
FY23 Target
100+ crore ARR for new forays
2X share of Omnichannel
25%+ of online revenue
25+ Project Rise stores
100+ store addition
12
Key results: a number of wins against the Key Focus Areas in FY23
New Brand / Categories
Third-party Marketplaces
Brand Website
Store Upgradation
Store Addition
➢ Expanded range launched this season ➢ Scaling-up on track across initiatives –
Elleven EBO count increases to 32
➢ D2C contributed 60%+ of online sales ➢ Omni-channel
fulfilment
expanded to double-digits of online sales
share the total
➢ Brand websites contributing to ~25% share
of the online business now
➢ Opened 5 Project Rise stores in Q2 ➢ Project Rise total tally 25 now
➢ 32 stores opened in Q2 on a net basis and another 40+
locations are in pipeline
➢ On track to add 25-30 stores every quarter going forward
13
Comprehensive, 360 degree, Digital-first, marketing campaigns launched this season for both W and Aurelia
Aurelia – Be Festive Ready
W – Be The Same or Be W
14
Aurelia
15
W for Woman
16
17
Q2 FY 23 : Reported Ind-AS-116
Particulars (Rs Million)
Q2FY23
Q2FY22
Growth -YoY%
H1FY23
H1FY22
Growth -YoY%
Revenue
EBITDA
PBT
PAT
3505
2393
479
101
76
451
141
111
46%
6%
-29%
-31%
6269
859
126
101
3331
247
-349
-250
88%
248%
NA
NA
% to Revenue
Q2FY23
Q2FY22
H1FY23
H1FY22
EBITDA
PBT
PAT
13.7%
18.8%
2.9%
2.2%
5.9%
4.6%
13.7%
2.0%
1.6%
7.4%
-10.5%
-7.5%
19
Q2 FY 23 : Brand-wise performance
Share of Brands (%)
7%
Q2FY23
41%
52%
W
Aurelia
Wishful
Q2FY22
40%
5%
W
Aurelia
Wishful
55%
Q2 FY 23 : Channel-wise performance Channel Wise Revenue Split
Q2FY23
6%
16%
37%
Q2FY22
3%
22%
36%
Pan India Multichannel Presence
4136
616
4250
648
41%
39%
2422
2479
LFS
EBO's Online & Others MBO
As of Sep’22
Net Q2 Openings
358
252
6
32
648
14
7
0
11
32
# of EBOs
W
Aurelia
Wishful
Elleven
Total
1098
Jun'22
1123
Sep'22
MBOs
LFS
EBOs
21
Q2 & H1 FY23 Detailed Financials
Profit & Loss Statement
S.No. Particulars (In Rs. Million)
Q2FY23 Q2FY22
YoY
Q1FY23 QoQ H1FY23 H1FY22
YoY
1
2
Income (a) Revenue from operations (b) Other income Total income 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 (See note 6) (h) Selling and distribution expenses (i) Other expenses Total expenses
3 Profit/(loss) before tax (2 - 4) 4 5 Profit/(loss) for the period/year (5 - 7)
Total tax expense
3505 18 3523
1421 87
-360
475 108 271 61 970 391 3422 101 24 76
2393 149 2542
858 33
2
362 89 221 0 577 259 2400 141 30 111
46% -88% 39%
66% 161%
31% 21% 23% NA 68% 51% 43% -29% -20% -31%
2764 66 2830
1646 43
27% -73% 24%
6269 84 6353
-14% 104%
3067 130
3331 178 3509
1501 54
88% -53% 81%
104% 142%
-834
-57% -1194
-247
383%
471 97 257 68 738 318 2804 26 2 24
1% 11% 6% -11% 31% 23% 22% 288% 1453% 213%
947 204 528 129 1707 709 6227 126 26 101
673 169 427 32 833 418 3859 -349 -99 -250
41% 21% 23% 304% 105% 70% 61%
23
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
Sep’22
Mar’22
Equity & Liabilities (Rs Million) Equity
Sep’22
Mar’22
604
15
4224
26
563
539
109
43
436
16
3566
31
512
561
109
66
6124
5297
4831
3609
394
2403
30
3
4
508
8173
14297
1456
1738
104
3
5
396
7311
12608
(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
123 6234 6357
3998 96 150 12 4256
58 793 2350 149 6 47 283 3684 7940 14297
123 6075 6199
3394 109 140 14 3658
- 739 1716 116 5 43 132 2751 6409 12608
24
For further information, please contact
Company :
Investor Relations Advisors :
CIN: L99999DL1997PLC090978
CIN: U74140MH2010PTC204285
Mr. Amit Chand
www.tcnsclothing.com
Mr. Rahul Agarwal / Mr. Aakash Mehta rahul.agarwal@sgapl.net / aakash.s.m@sgapl.net +91 98214 38864 / +91 98706 79263
www.sgapl.net
25