TCNS Clothing Co. Limited has informed the Exchange regarding Investor Presentation for Q4 & FY 19

Date: 28.05.2019

To

To

Corporate Relationship Department BSE Limited 1st Floor, Rotunda Building P.J Towers, Dalal Street, Mumbai-400 001.

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. Cf 1, G Block, Sandra Kurla Complex, Bandra (E) Mumbai- 400 051.

Dear Sir,

Subject: Investor Presentation for Q4 & FY 19.

Ref: Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Scrip Code: BSE- 541700/Stock Symbol: NSE- TCNSBRANDS

reference to the above captioned subject, please find herewith, enclosed Investor

With Presentation for Q4 & FY 19.

The aforesaid Investor Presentation https://wforwoman.com/

is also being disseminated on Company's website at

This is for your information and records.

For and on behalf of T

TCNS Clothing Co. Limited 119 & 127, W-HOUSE, NEELGAGAN TOWER, MAND! ROAD,SULTANPUR, MEHRAUU, NEW DELHl-110030, INDIA PH: 011-42193193, f;:ix: 011.-42193194, E-mail: corporatecommunications@tcnsclothing.com, www.wforwoman.com, www.shopforaurelia.com REGO. OFFICE: UNIT NO. 1121 F/F RECTANGLE 1, D-11, SAKET, DISTRICT CENTRE, NEW DELHI- 110017, 11\JDIA CIN- L99999DL1997PLC090978

TCNS Clothing Co. Ltd.

Investor Presentation – Q4 & full year FY19 results

1

Safe Harbor

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

About Us

3 Home Grown Brands

Widespread Distribution Network

Strong Design & Manufacturing Capabilities

541 EBOs

40+ Designers

1,623 Large Format Stores

1,428 MBOs

Refreshing New Products every 2-3 weeks

Wide network of suppliers and job-workers

3

Experienced Professional Management Team

NO Attrition of

Top Management

in last 5 years

Scalable Business Model

Proven product & Retail

Concept

Outsourced Manufacturing

Q4 & FY 19 Highlights

Rs. Crs

Revenue

+13%

258

291

Q4

EBITDA

+22%

PAT

+50%

34

42

33

22

Revenue

+15%

1001

1148

FY19

EBITDA

+14%

PAT

+34%

162

184

98

131

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

FY18

FY19

FY18

FY19

FY18

FY19

EBITDA %

PAT %

EBITDA %

PAT %

13.2

14.3

11.2

8.4

16.2

16.1

9.8

11.4

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

FY18

FY19

FY18

FY19

4

Q4 & FY 19 Highlights (Adjusted *)

Rs. Crs

Revenue

+15%

220

253

Q4

EBITDA

+22%

PAT

+21%

34

42

22

26

FY19

EBITDA

+16%

972

162

188

Revenue

+15%

842

PAT

+14%

98

112

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

FY18

FY19

FY18

FY19

FY18

FY19

EBITDA %

PAT %

EBITDA %

PAT %

15.5

16.5

9.9

10.4

19.2

19.5

11.6

11.6

Q4 FY18

Q4 FY19

Q4 FY18

Q4 FY19

FY18

FY19

FY18

FY19

* 1) Pre-Ind AS 115 impact 2) Proforma adjustment of GST rate increase in Q1’19 vs Q1’18 3) Proforma for constant tax rate

5

Leading Home Grown Brands….

PREMIUM FUSION WEAR

CONTEMPORARY ETHNIC WEAR

PREMIUM OCCASION WEAR

6

Share of Brands (%) Q4

7%

34%

59%

W Aurelia Wishful

Brand Wise Growth

Brands

W

Aurelia

Wishful

Q4 FY19

17%

13%

9%

Wide distribution network which continues to grow …

Channel Wise Revenue Split – Q4 FY19

12%

13%

26%

49%

MBO's

LFS

EBO's

Online & Others

Channel wise growth

Q4 FY19

EBOs

LFS

Online

MBOs

5 %

22 %

79 %

5 %

SSSG growth at -4.6 % for Q4 FY19

7

Pan India Multichannel Presence

3,456

465

1,469

1,522

Mar 18

3,592

541

1,623

1,428

Mar 19

MBOs

LFS

EBOs

Number of EBOs

As of Mar 19

Q4 openings

W

Aurelia

Wishful

Total

321

215

5

541

15

5

0

20

Key Financial Highlights

Application of Ind AS 115 – Revenue from contracts with Customer

 Ind AS 115 – a new accounting standard on revenue recognition has been applied w.e.f April 1, 2018

•

•

The main impact has been on accounting for sales made on Sale of Return (SOR). Till last year, sales were recorded net of dealer margin. From now, these sales are shown gross of dealer margin and at the same time dealer margin is shown as expense The other change has been in netting off variable expenses on sales made on outright basis. Till last year, these were shown separately as expenses. From now, these expenses are netted off from sales

 We have applied the retrospective approach and hence the comparative numbers of FY18 have also been re-instated. This has

resulted in increase in both sales and expense respectively as following with no impact on EBITDA

Comparative impact for different periods are:

P&L Impact (Rs. In million)

Particulars

Q4 FY19

Q4 FY18

Q3 FY18

FY19

FY18

Net increase in revenue from operations

378.96

381.19

482.77

1848.89

1585.66

Net increase in other expenses

378.96

381.19

482.77

1848.89

1585.66

9

Application of Ind AS 115 – Revenue from contracts with Customer

 Ind AS 115 – a new accounting standard on revenue recognition has been applied w.e.f April 1, 2018

• •

• •

The Ind AS adjustment have also resulted in Balance Sheet classifications within assets and liabilities The changes pertain to the balance sheet impact on sales return provisioning on outright sales. Whereas earlier, sales return provisions were netted off from Debtors, from now, Debtors are continued to be shown at gross and liability shown in a separate account Similar treatment is to be done for inventory adjustment in reverse The changes do not have any impact on reserves

Balance Sheet Impact (Rs. In million)

Particulars

Mar 2019

March 2018

Increase in trade receivables

110.51

174.21

Increase in other financial liabilities for expected returns

(110.51)

(174.21)

Decrease in inventories

(45.02)

(72.09)

Increase in other current assets for expected returns

45.02

72.09

10

Profit & Loss Statement – Q4 & FY19

11

March 31, 2019 (Refer Note 10)December 31, 2018(Unaudited)March 31, 2018 (Refer Note 10)March 31, 2019 (Audited)March 31, 2018 (Audited)Income (a)Revenue from operations2,906.58 3,001.96 2,579.90 11,479.53 10,009.91 (b)Other income16.45 21.24 17.35 75.21 67.32 Total income 2,923.03 3,023.20 2,597.25 11,554.74 10,077.23 Expenses(a)Cost of materials consumed1,228.12 1,044.83 1,010.11 4,279.51 3,776.02 (b)Changes in inventories of finished goods and work-in-progress(129.08) (98.82) (9.52) (380.39) (351.48) (c)Excise duty on sale of goods- - - - 39.37 (d)Employee benefits expense346.20 378.89 338.86 1,437.74 1,236.14 (e)Finance costs3.30 0.47 1.60 5.14 6.71 (f)Depreciation and amortisation expense63.35 55.03 50.77 222.10 166.71 (g)Rent expenses285.28 282.45 247.18 1,099.43 938.39 (h)Selling and distribution expenses553.69 626.71 495.91 2,387.99 2,051.47 (i)Other expenses222.61 261.31 174.25 886.99 765.62 Total expenses2,573.47 2,550.87 2,309.16 9,938.51 8,628.95 Profit before tax (2 - 4)349.56 472.33 288.09 1,616.23 1,448.28 Tax expense(a)Income tax32.00 117.61 40.03 348.67 483.58 (b)Deferred tax(9.28) (15.99) 30.25 (46.79) (16.27) Net profit after tax for the period (5 - 6)326.84 370.71 217.81 1,314.35 980.97 For the financial year endedFor the quarter endedParticularsBalance Sheet as at March 2019 - Assets

12

(Rs. in million)ParticularsAs at 31 March, 2019As at 31 March, 2018ASSETSNon-current assets(a)Plant and equipment535.98 505.68 (b)Capital work-in-progress2.83 24.88 (c)Intangible assets56.28 12.89 (d)Intangible assets under development- 56.30 (e)Financial assets(i)Investments- - -Other financial assets508.99 393.06 (f)Deferred tax assets (net)159.72 115.01 (g)Non-current tax assets (net)126.02 126.02 (h)Other non-current assets82.47 71.81 Total non-current assets1,472.29 1,305.65 Current assets(a)Inventories2,740.83 2,239.41 (b)Financial assets(i)Investments1,377.52 20.77 (ii)Trade receivables1,807.25 1,570.50 (iii)Cash and cash equivalents215.63 366.93 (iv)Bank balances other than (iii) above15.24 123.91 (v)Other financial assets1.05 5.66 (c)Other current assets229.12 336.26 Total current assets6,386.64 4,663.44 Total assets7,858.93 5,969.09 Balance Sheet as at March 2019 - Liabilities

13

(Rs. in million)ParticularsAs at March 31, 2019As at March 31, 2018EQUITY AND LIABILITIESEquity(a)Equity share capital122.65 112.74 (b)Instruments entirely equity in nature- 242.27 (c)Other equity6,062.96 3,959.67 Total equity6,185.61 4,314.68 LiabilitiesNon-current liabilities(a)Financial liabilities(i)Borrowings- 2.18 (ii)Other financial liabilities60.35 59.15 (b)Provisions77.99 55.73 (c)Other non-current liabilities5.80 4.09 Total non-current liabilities144.14 121.15 Current liabilities(a)Financial liabilities(i)Borrowings- 0.04 (ii)Trade payables(A)Due to MSME184.40 16.86 (B)Due to Others965.57 1,127.46 (iii)Other financial liabilities78.97 68.52 (b)Provisions1.87 1.22 (c)Current tax liabilities (net)57.47 31.29 (d)Other current liabilities240.90 287.87 Total current liabilities1,529.18 1,533.26 Total liabilities 1,673.32 1,654.41 Total equity and liabilities7,858.93 5,969.09 14