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 400001.
Dear Sir/Madam,
Date: 14.02.2023
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 400051.
Sub: Investor presentation for Q3 and Nine months ended 31st December 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 Q3 and nine months ended 31st December 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: 14.02.2023 Place: New Delhi
TCNS Clothing Co. Ltd
Q3 & YTD FY23 Results Feb, 2023
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
Q3 & YTD 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
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 664 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
Current Situation Update
Market Highlights
➢ Muted festive and wedding season with delayed onset of winters
➢ Tier 1 recovery ahead of tier 2 and tier 3 markets; South region outperforming others
➢ Continuous expansion of offline retail presence seen across city tiers; many new tier 3+ cities
opening up for organized retail
10
Net revenues of Rs. 306 crores in Q3 and Rs 933 crores in year-to-date FY23
Revenue from Operations – Rs Crs.
Q3 YoY
1000
YTD Q3 YoY
933
Q3 Highlights
329
306
350
300
250
200
150
100
50
0
662
900
800
700
600
500
400
300
200
100
0
Q3 FY22
Q3 FY23
YTD Q3 FY22
YTD Q3 FY23
• Offline: EBO channel grew by 15% over last year driven by expansion ➢ Opened 16 stores on a net basis;
Total store count 664
➢ Project Rise: Upgraded 4 stores in
this quarter
• Online: Brand websites continued to grow ahead of other channels at 30%+ levels
➢ Accelerated shift from B2B to D2C this quarter impacted reported sales due to negligible primary billing
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
➢ Range expansion continues across new
initiatives
➢ Elleven SIS scaled up; getting launched
in newer accounts
➢ D2C contributed over 2/3rd of online ➢ Omni-channel
share expanded to double-digits of the online D2C sales
fulfilment
Brand Website
Store Upgradation
➢ Brand websites scaled up 30%+ yoy ➢ Contributing to ~25% share of
the online
business now
➢ Opened 4 Project Rise stores in Q3 ➢ Project Rise total tally 29 now
Store Addition
➢ 65 stores opened YTD Q3 basis with a strong pipeline ➢ On track to add 90-100 stores this year
13
Continued investing in brand building; comprehensive marketing agenda rolled out through the quarter across the conversion funnel - Aurelia
AWARENESS
CONSIDERATION
CINEMA
MALL BRANDING
MARKET PLACES BRANDING
SOCIAL MEDIA
DECISION
EBO
AIRPORT
METRO
DIGITAL ADS
LFS - SOH
WEBSITE
LFS
Continued investing in brand building; comprehensive marketing agenda rolled out through the quarter across the conversion funnel - W
AWARENESS
CONSIDERATION
CINEMA
MALL BRANDING
SOCIAL MEDIA
LAUNCH EVENT
DECISION EBO
AIRPORT
NEWSPAPER
MARKET PLACE BRANDING
LFS -SOH
MAGAZINES
DIGITAL ADS
WEBSITE
LFS
New Store Launch - W Prestige Falcon, Bangalore
16
New Store Launch - W Shipra Mall, Ghaziabad
17
New Store Launch - W DLF Mall Of India, Noida
18
New Store Launch - W Express Avenue, Chennai
19
New Store Launch - Aurelia Phoenix, Chennai
20
Q3 FY23 : Reported (post Ind-AS-116)
Particulars (Rs Million) Q3 FY23 Q3 FY22
Growth -YoY%
YTD FY23
YTD FY22
Growth -YoY%
Revenue
EBITDA
PBT
PAT
3061
3285
435
7
5
677
353
251
-7%
-36%
-98%
-98%
9330
1294
134
106
6616
924
4
1
41%
40%
3223%
13790%
% to Revenue
Q3 FY23 Q3 FY22
YTD FY23
YTD FY22
EBITDA
PBT
PAT
14.2%
20.6%
0.2%
0.2%
10.7%
7.6%
13.9%
14.0%
1.4%
1.1%
0.1%
0.0%
21
Q3 FY23 : Brand-wise performance
Share of Brands (%)
7%
Q3FY23
41%
52%
7%
Q3FY22
40%
53%
W
Aurelia
Wishful
W
Aurelia
Wishful
Q3 FY23 : Channel-wise performance
Channel Wise Revenue Split
Pan India Multichannel Presence
Q3FY23
4%
12%
39%
Q3FY22
5%
17%
38%
40%
4294
664
4250
648
2502
2479
LFS
EBO's Online & Others MBO
As of Dec’22
Q3 Openings
366
257
7
34
664
8
5
1
2
16
1128
Dec'22
1123
Sep'22
MBOs
LFS
EBOs
23
45%
# of EBOs
W
Aurelia
Wishful
Elleven
Total
Q3 & YTD FY23 Detailed Financials
Profit & Loss Statement
S.No. 1
2
3 4 5
Particulars (In Rs. Million) 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 (h) Selling and distribution expenses (i) Other expenses Total expenses Profit/(loss) before tax Total tax expense Profit/(loss) for the period/year
Q3FY23
Q3FY22
YoY
Q2FY23 QoQ
9MFY23
9MFY22
YoY
3061 38 3099
1193 94
-317
455 134 294 65 749 424 3092 7 2 5
3285 47 3332
977 50
31
422 95 229 10 847 317 2979 353 103 251
-7% -19% -7%
22% 89%
3505 18 3523
1421 87
-1122%
-360
8% 41% 28% 554% -12% 34% 4% -98% -98% -98%
475 108 271 61 970 391 3422 101 24 76
-13% 113% -12%
-16% 9%
-12%
-4% 24% 9% 8% -23% 9% -10% -93% -91% -93%
9330 122 9452
4261 224
-1511
1402 338 822 194 2457 1133 9319 134 28 106
6616 225 6842
2478 104
-216
1095 263 657 42 1680 735 6838 4 3 1
41% -46% 38%
72% 116%
600%
28% 28% 25% 363% 46% 54% 36% 3223% 756% 13790%
25
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
26