TCNS Clothing Co. Limited has informed the Exchange regarding Investor Presentation for Q1 FY 20 Results.
TCNS Clothing Co. Ltd.
Investor Presentation – Q1 FY20 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
552 EBOs
40+ Designers
1,661 Large Format Stores
1,454 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
Q1 FY20 Highlights: Reported numbers with Ind AS 116
Rs. Crs
Revenue
+18%
280
237
Q 1
EBITDA
+95%
60
31
PAT
+0 %
20
20
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
EBITDA %
PAT %
21.6
13.1
8.6
7.3
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
4
Q1 FY 20 Highlights – Comparable to Q1 FY 19 *
Rs. Crs
Revenue
+18%
280
237
Q 1
EBITDA
+15%
31
36
PAT
+ 17%
19
22
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
EBITDA %
PAT %
13.1
12.8
7.9
7.9
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
* 1) Pre-Ind AS 116 impact 2) Tax of FY19 calculated at FY20 rates
5
Ind AS 116 Q1 FY20 : P&L items impacted
Item
Q1 FY 19
Q1 FY 20 Comparable to PY
Ind AS 116 adjustment
mINR
Q1 FY 20 Reported Numbers
Total Income
2,384.25
2,818.54
0.00
2,818.54
Rent
EBITDA
Finance Costs
Depreciation
Profit Before Tax
Profit After Tax *
263.22
310.16
0.64
50.92
258.60
188.02
* Calculated at same tax rate as CY
-246.78
+246.78
+ 90.58
+ 179.47
-23.27
47.38
603.63
92.32
232.17
279.14
204.73
294.16
356.85
1.74
52.70
302.41
219.87
6
Leading Home Grown Brands….
PREMIUM FUSION WEAR
CONTEMPORARY ETHNIC WEAR
PREMIUM OCCASION WEAR
7
Share of Brands (%) Q1
7%
37%
56%
W Aurelia Wishful
Brand Wise Growth
Brands
W
Aurelia
Wishful
Q1 FY20
12%
25%
38%
Channel wise revenue split - Full year data for FY 19
Pre-Ind AS 115
14%
10%
28%
48%
Ind AS 115*
12%
8%
41%
39%
MBO's
LFS
EBO's
Online & Others
MBO's
LFS
EBO's
Online & Others
* Grossing up of sales made on SOR basis (primarily LFS partners) as per IndAS 115
8
Q1 FY20 Channel wise performance
Channel Wise Revenue Split – Q1 FY20
Pan India Multichannel Presence
11%
4%
42%
43%
3,592
3,667
541
1,623
1,428
Mar 19
552
1,661
1,454
Jun 19
MBO's
LFS
EBO's
Online & Others
MBOs
LFS
EBOs
Channel wise growth
EBOs
LFS
Online
MBOs
Q1 FY20
29 %
16 %
-11 %
52 %
SSSG growth at 3 % for Q1 FY20
9
Number of EBOs
As of Jun 19
Q1 openings
W
Aurelia
Wishful
Total
326
220
6
552
5
5
1
11
Key Financial Highlights
Profit & Loss Statement – Q1FY20 Reported Numbers
11
(All amounts in Rs. million except otherwise specified)For the financial year endedJune 30, 2019(Unaudited)March 31, 2019 (See note 8)June 30, 2018(Unaudited)March 31, 2019 (Audited)1.Income (a) Revenue from operations 2,796.29 2,906.58 2,365.98 11,479.53 (b) Other income22.25 16.45 18.27 75.21 2.Total income 2,818.54 2,923.03 2,384.25 11,554.74 3.Expenses(a) Cost of materials consumed1,197.69 1,228.12 919.66 4,351.60 (b) Changes in inventories of finished goods and work-in-progress(281.97) (129.08) (163.09) (452.48) (c) Employee benefits expense370.33 346.20 338.54 1,437.74 (d) Finance costs (See note 5)92.32 3.30 0.64 5.14 (e) Depreciation and amortisation expense (See note 5)232.17 63.35 50.92 222.10 (f) Rent expenses (See note 5)47.38 285.28 263.22 1,099.43 (g) Selling and distribution expenses647.81 553.69 545.71 2,387.99 (h) Other expenses233.67 222.61 170.05 886.99 4.Total expenses2,539.40 2,573.47 2,125.65 9,938.51 5.Profit before tax (2 - 4) 279.14 349.56 258.60 1,616.23 6. Tax expense(a) Income tax93.62 32.00 64.81 348.67 (b) Deferred tax(19.21) (9.28) (10.76) (46.79) 7.Net profit after tax for the period (5 - 6)204.73 326.84 204.55 1,314.35 ParticularsFor the quarter ended 12