TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Corporate BSE
Limited
Relations
Department
1st
Floor, New Trading Ring
Rotunda
Building,
P J Tower
Dalal
Street,
Fort, Mumbai
400
001
Date:
05.02.2021
of
India
Ltd
Corporate National
Listing Department Stock
Exchange Floor 5th
Exchange Plot No.C-1, Bandra-Kurla
Plaza,
G Block
Complex (East), Mumbai
Bandra
400
051.
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..
Dear
Sir/s
SUB:
Investor
Presentation
for
03 & g months
FY 21.
Scrip
Code:
BSE Code:
541700,
NSE Code:
TCNSBRANDS
Ref:
Regulation
30
of
the
SEBI
(Listing
Obligations
& Disclosure
Requirements)
Regulations,
2015.
Dear
Sir/Madam,
With
reference
to
the
above
captioned
subject, please find herewith,
enclosed
Investor
Presentation
for Q3 & 9 months
FY 21.
The
aforesaid
Investor
Presentation
is
also
being
disseminated
on
Company's website
at www.wforwoman.com/
This
is
for
your
information
and
record.
Date:
Place:
05.02.2021
New
Delhi
?- V\/!SHFUL
TCNS Clothing
Co. Limited
119 & 127, W-HOUSE, NEELGAGAN
TOWER, MAND! ROAD,SULTANPUR, MEHRAULI, NEW DELHl-110030,
!NOIA
PH: 011-42193193,
Fax: 011-42193194,
E-mail:corporatecommunkations@tcnsclothing.com,www.wforwoman.com,
www.shopforaureHa.com
REGO. OFFICE:
119, W-HOUSE, NEELGAGAN
TOWER, MAND!
ROAD, SULTANPUR, MEHRAULI, NEW DELHI-
110030
CJN-
l99999DL1997PLCD90978
TCNS Clothing Co. Ltd.
Performance Highlights Q3 FY21 results Feb 05, 2021
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
Contents
Current Snapshot
Key Focus Areas
Business Update – Q3
Company Financials – Q3 and 9M FY21
3
Contents
Current Snapshot
Key Focus Areas
Business Update – Q3
Company Financials – Q3 and 9M FY21
4
Business recovery continued in Q3 - continuous rebound in sales with a pronounced spike during the festive season
Overall Sales Recovery (% of respective quarter YoY)
Q1
12%
Q2
45%
Q3
72%
5
• Online secondary sales tracking at ~1.7X of pre-covid levels in Q3; ~15% YoY growth on primary sales basis.
• Brand.com grew at 150% over pre-covid levels. December registered highest ever sales
• EBO and LFS on similar recovery
trajectory
• Offline store network fully
operational as of end December
• MBO primary billing resumed
with Spring Summer’21 season launch.
Contents
Current Snapshot
Key Focus Areas
Business Update – Q3
Company Financials – Q3 and 9M FY21
6
Key Focus Areas : Results well on track
Continue Consumer Engagement Continue for consumers through digital engagement and Omni sales channels
top-of-mind
recall
be
to
Strengthen Balance Sheet Conserve optimize inventory to preserve strength of balance sheet without losing ability to scale-up
cash
and
Optimize Cost Structure Reset the fixed costs as per evolving situation by leveraging structural flexibilities
Adopt zero-based approach for all variable costs
3
2
4
1
Focus Areas
5
7
Build Organization Resilience Leverage technology for enhancing organization capabilities and build a lean, responsive supply chain
Seize Opportunities Leverage market opportunities and incubate new avenues for creating long-term growth runways
1. Cash conservation: Cash accretive in Q3. Cash reserves at Rs 155 Crs – tracking close to FY20 year-end levels
Finished Goods Finished Goods Inventory Inventory
Raw Materials Raw Materials Inventory Inventory
Creditors / Creditors / Payables Payables
Capex Capex
Deployment of SS20 and MF20 stock to SS21 resulting in Inventory reduction
Responsive supply chain
in place to nimbly manage demand shifts
SS’21 launched on time Limited cash outflow for additional fabric purchases for capsule ranges
Timely payment to
Selective new stores
vendors strengthened our relationships
Introduced third-party vendor financing partnership to handhold and support our vendors
opening
Continue investment in
Warehousing & IT infrastructure
Minimal discretionary
capex
Business well on track to close FY21 with cash reserves higher than FY20 levels
* FY 20 year end cash reserves : Rs 171 Crs. (in addition to unutilized bank limits)
8
2. Optimized Cost Structure: Ahead of targeted cost savings across all key headers; pivoting focus to growth to tap market opportunities
Rentals & CAM Secured full year savings of ~35% over last year, savings of Rs 6 crores accounted for in Q3. Negotiations on to secure further savings. 9 new stores opened in Q3 while 22 bottom-
performing stores were closed.
Embarking on an accelerated store expansion plan. Targeting 60-70 new stores in FY22.
Marketing Focused spending in Q3 on efficient and measurable (DTC) initiatives. Focus on driving online sales through performance marketing spends. Stepping up marketing in Spring Summer’21
direct-to-consumer
Salary
Annual savings in salary expected ~20%. Partial
reinstatement
of
salaries
undertaken.
Investing in building capabilities in areas of design innovation, data-sciences and responsive supply chain.
Overheads
Control on discretionary spends continued in spends
non-discretionary
Q3 reverting back to normal levels.
though
Setting up a future-ready warehouse which
will be fully operational by Q2 of FY22.
9
3. Customer Engagement Direct-to-Consumer (D2C) initiatives have scaled up and institutionalized as a core offering of the business
Online D2C Initiatives
Offline D2C Initiatives
Own website grew at 150% over pre- covid sales in Q3; contribution in double digits of total online business
Own Website
Social Commerce
Virtual shopping through video chat / whatsapp with home delivery setup as a core offering at stores
Marketplace D2C business grew 10X over last year to contribute almost a quarter of the third party marketplace sales
Marketplace D2C
D2C Initiatives
Personalized Campaigns
Launched a number of relevant, personalized campaigns for consumers leveraging data science – Reactivation, Upsell and Cross Sell
Omni-channel fulfilment live on both
Own Website and Third-party marketplace
Store Omni
Hyperlocal Marketing
Launched hyperlocal campaigns to increase store footfall – Influencer program, exchange old for new
10
4. Building Organization Resilience Investment in Capabilities Enhancement continues
1
Quick Fulfillment Model Building a shorter lead time
model. Process institutionalized in SS’21
3
Data Science based stock decisions Setting up a upgraded machine-
learning based inventory optimization tool. Piloting in SS’21 for ‘W’ brand.
Key Levers
2
Shorter Thought-to-Shelf cycle Moving away from a strict two-
season calendar.
4
Warehouse Operations Setting up a future-ready
warehouse- to be fully operational by Q2 of FY22
5
Investing in new skills Investing in building capabilities in areas of design innovation, data- sciences and responsive supply chain.
11
5. Seize Opportunities Investing in key levers to create long-term runways for growth
Store Expansion
New Channels
Additional Categories
EBO 60-70 store addition in FY22
Online D2C
LFS 200-250 store addition in FY22
Offline
Institutional Channel
12
Footwear
Aurelia Girls
Elleven
Contents
Current Snapshot
Key Focus Areas
Business Update – Q3
Company Financials – Q3 and 9M FY21
13
Q3 FY21 & 9M FY21: Reported Ind AS 116
Amount Rs. Crores
Revenue
EBITDA
PBT
PAT
Q3 FY21
238
43
17
13
Q3 FY20
329
75
40
55*
YoY %
-28%
-42%
-58%
-77%
* Includes one-time tax adjustment. On a Like to like basis PAT in FY21 Q3 was Rs 13 crs vs Rs 31 Crs in FY20-Q3
% to Revenue
EBITDA
PBT
PAT
Q3 FY21
18%
7%
5%
Q3 FY20
23%
12%
17%
YoY %
-55%
-95%
-180%
-165%
9M FY21
414
10
-82
-60
9M FY21
3%
-20%
-14%
Amount Rs. Crores
Revenue
EBITDA
PBT
PAT
% to Revenue
EBITDA
PBT
PAT
14
9M FY20
929
203
102
93
9M FY20
22%
11%
10%
Q3 Brand-wise Performance
PREMIUM FUSION WEAR
CONTEMPORARY ETHNIC WEAR
PREMIUM OCCASION WEAR
15
Share of Brands (%) Q3 FY21
6%
39%
55%
W Aurelia Wishful
Brand Wise Growth Q3 FY21
Brands
W
Aurelia
Wishful
-27%
-23%
-51%
Q3 Channel-wise Performance
Channel Wise Revenue Split – Q3 FY21
39%
23%
1%
37%
LFS
EBO's
MBO
Online & Others
Pan India Multichannel Presence
3,573
574
1,987
1,012
Sep20
3,674 561
2,065
1,048
Dec20
MBOs
LFS
EBOs
# of EBOs
As of Dec 20
Q3 openings
W
Aurelia
Wishful
Elleven
Total
327
225
5
4
561
-8
-5
0
0
-13
16
Contents
Current Snapshot
Key Focus Areas
Business Update – Q3
Company Financials – Q3 and 9M FY21
17
Profit & Loss Statement – Q3 and 9M FY21
Particulars
December 31, 2020 (Unaudited)
September 30, 2020 (Unaudited)
December 31, 2019 (Unaudited)
December 31, 2020 (Unaudited)
December 31, 2019 (Unaudited)
March 31, 2020 (Audited)
Quarter Ended
Nine Months Ended
Year Ended
(All amounts in Rs. million except otherwise specified)
1.
Income
(a) Revenue from operations
(b) Other inc ome (See note 5)
2.
3.
Total income
Expenses
(a) Cost of materials c onsumed
(b) Purc hases of stoc k- in-trade
(c ) Changes in inventories of finished goods,work-in-progress and stoc k-in-trade
(d) Employee benefits expense
(e) Finance c osts
(f) Depreciation and amortisation expense
(g) Rent expense (See note 5)
(h) Selling and distribution expenses
4.
5.
6.
(i) Other expenses
Total expenses
Profit/(loss) before tax (2 - 4)
Tax expense
(a) Current tax (net)
(b) Deferred tax (Credit)/expense
7.
Total tax expense
8. Net profit/(loss) after tax for the period / year (5 - 7)
9. Other comprehensive income /(loss)
Items that will not be c lassified to profit or loss:
- Remeasurements of defined benefit plans
- Tax relating to above item
10. Total other comprehensive income/(expense), net of tax
11. Total comprehensive income/(loss) for the period/ year (8 + 10)
12. Paid-up equity share capital (face value Rs. 2 per share)
13. Other equity
14. Earnings Per Share#
(a) Basic (Rs.)
(b) Diluted (Rs.)
2,378.95
49.25
1,441.37
93.66
3,289.88
71.55
4,144.51
308.78
9,294.62
120.28
11,486.67
211.39
2,428.20
1,535.03
3,361.43
4,453.29
9,414.90
11,698.06
705.71
3.00
217.35
257.82
70.39
194.23
16.87
547.93
245.70
646.94
4.56
45.87
309.90
88.59
223.62
-
394.03
202.64
1,039.90
1,599.65
3,375.46
-
20.28
415.42
98.93
248.42
57.08
758.16
320.39
16.40
167.07
895.27
250.36
669.79
16.87
1,061.68
592.47
-
(274.92)
1,192.50
286.81
718.75
163.95
2,105.73
821.19
4,506.82
93.15
(576.68)
1,575.90
381.89
1,031.51
225.85
2,690.63
1,108.36
2,259.00
1,916.15
2,958.58
5,269.56
8,389.47
11,037.43
169.20
(381.12)
402.85
(816.27)
1,025.43
660.63
-
42.60
42.60
126.60
4.96
(1.25)
3.71
130.31
123.02
-
(105.26)
(131.59)
(15.82)
-
(213.71)
(105.26)
(147.41)
(213.71)
(275.86)
550.26
(602.56)
12.93
(3.25)
9.68
(266.18)
122.95
(4.55)
1.59
(2.96)
547.30
122.94
14.90
(3.75)
11.15
(591.41)
123.02
31.25
62.32
93.57
931.86
(13.63)
4.76
(8.87)
922.99
122.94
(62.87)
29.38
(33.49)
694.12
(13.33)
3.35
(9.98)
684.14
122.95
6,477.05
2.12
2.12
(4.16)
(4.16)
8.60
8.35
(9.61)
(9.61)
14.57
14.15
10.85
10.84
# EPS is not annualised for the quarter and nine months ended Dec ember 31, 2020, quarter ended September 30, 2020 and quarter and nine months ended Dec ember 31, 2019.
18
19