TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Department
Limited
Relations
Corporate BSE 1st Floor, New Trading Ring Rotunda Building,
P J Tower
Dalal Street,
Fort, Mumbai
400
001
Date:
21.06.2021
of
India
Ltd
Listing Department Stock
Exchange 5th Floor
Corporate National Exchange Plaza, Plot No.C-1, G Block Bandra-Kurla
Complex (East), Mumbai
Bandra
400
051.
SUB:
Investor
Presentation
for
04 & FY ended
31st March
2021.
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 Q4 & FY ended
3151 March
2021.
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
record.
Date:
Place:
21.06.2021
New
Delhi
•
119 & 127, W-HOUSE, NEELGAGAN
TOWER, MANDI ROAD,SULTANPUR, MEHRAULI, NEW DELHl-110030,
INDIA
PH: 011-42193193,
Fax: 011-42193194,
E-mail:corporatecommunications@tcnsclothing.com,www.wforwoman.com,
www.shopforaurelia.com
REGO. OFFICE:
119, W-HOUSE, NEELGAGAN
TOWER, MANDI ROAD, SULTANPUR, MEHRAULI, NEW DELHI-
110030
CIN- L99999DL1997PLC090978
.
TCNS Clothing
Co.
Limited
TCNS Clothing Co. Ltd.
Q4 & FY21 Results June 21, 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
Q4 & FY21 Highlights
Current Situation & Focus Areas for FY22
Business Update – Q4 & Full Year FY21
Company Financials – Q4 and Full Year FY21
3
Contents
Q4 & FY21 Highlights
Current Situation & Focus Areas for FY22
Business Update – Q4 & Full Year FY21
Company Financials – Q4 and Full Year FY21
4
Sequential improvement in recovery through FY21; Q4 impacted by lockdowns / disruptions starting mid-March
FY21 Overall Sales Recovery (% of respective quarter YoY)
Q1
Q2
Q3
Q4
12%
45%
72%
101%
5
Q4 Highlights Offline:
consistent
sales recovery with many tier 2/3 geographies tracking near pre-covid levels
Online:
sustained strong momentum with online sales more than doubling over last year. Own website grew ~2.5X over last year
Kick-starting growth: Signed up 30 EBOs in Q4; slated to open in H1 FY22
Exceeded the primary FY21 objective of cash conservation; Ended the year with higher cash reserves of Rs.182 crores1 without any fundraise
Cash Reserves Rs. Crores
200
180
160
140
120
100
80
60
40
20
0
171
182
FY20
FY21
Note: (1) Excluding bank limits, includes one-time tax refund
6
Key initiatives undertaken for cash conservation: Cost rationalization : 30%+ reduction in costs against FY20
Working capital reduction on back of leveraging inventory- at-hand across seasons
Focus Areas for FY21: Key Highlights
Continue Consumer Engagement Invested in and sharply scaled both D2C
channels: own website & marketplaces
Strengthen Balance Sheet Achieved the objective of preserving strength, with
the balance sheet addition to net cash reserves
Augmented partnerships with vendors by fulfilling all payment commitments and providing additional support
Optimize Cost Structure Realized overall savings of 30%+
• Rental: ~45% • ERC: ~23% • Overheads: ~29%
Institutionalized
hyperlocal shopping via chat / video, Society-sales.
sales
social and commerce capabilities: eg. Virtual
3
2
4
1
Focus Areas
5
7
Build Organization Resilience Implemented phase 1 of best-in-class automated inventory management system
Setup new integrated warehouse for more robust, efficient and scalable supply chain
Institutionalized express production and
replenishment model
Seize Opportunities Newly launched footwear category pilot showing traction. Scaling up in FY22. Running pilots for Aurelia Girls and Elleven
Kick-starting Expansion : Signed up 30 EBOs in Q4; slated to open in H1 FY22
Contents
Q4 & FY21 Highlights
Current Situation & Focus Areas for FY22
Business Update – Q4 & Full Year FY21
Company Financials – Q4 and Full Year FY21
8
Current situation: near-term demand scenario continues to be disrupted with Covid 2nd wave impact
1
Stores Unlocking Gradual unlocking for both high-
street and mall stores
As on date, ~60% of offline network operational with stipulated restrictions
Current Situation
2
Online Sales Online channels (both own website
& marketplaces) continued operations through lockdown Impact of ban on non-essential
items delivery in multiple states in April and May
5
Supply Chain Warehouse and transportation
operational through the lockdown with appropriate restrictions
Production units disrupted in April /
May – now mostly functional
9
FY22 Key Priorities: Invest in building growth runways and key capabilities while preserving balance-sheet strength
01. Online Business Growth o Continue scale-up of own website through personalized
deeper marketing and technology upgradation
offerings,
omni
o Expand third-party marketplace with new business models, additional channels and online first product offering
04. Swifter Thought-to-Shelf o Enhance design, sampling and production capabilities to develop products closer to season launch
o Institutionalize next phase of Automated
inventory management
10
02. Calibrated Offline Expansion o Project Rise: upgrade and expand the flagship stores to tap into available real estate opportunity
o Project Bharat: expand store network across tier 3/4 markets through franchisee-led model
03. Cash Conservation o Reduce working capital through inventory optimization and lower-risk trade models
o Continue optimizing costs on all especially rentals and overheads
fronts,
Contents
Q4 & FY21 Highlights
Current Situation & Focus Areas for FY22
Business Update – Q4 & Full Year FY21
Company Financials – Q4 and Full Year FY21
11
Q4 & FY21 Highlights: Reported Ind-AS-116
Growth%
1%
854%
NA
NA
Amount Rs. Crores
Revenue
EBITDA
PBT
PAT
% to Revenue
EBITDA
PBT
PAT
Q4 FY21
221
41
5
4
Q4 FY21
18.6%
2.1%
1.8%
Q4 FY20
219
4
-36
-24
Q4 FY20
2.0%
-16.6%
-10.8%
Amount Rs. Crores
Revenue
EBITDA
PBT
PAT
% to Revenue
EBITDA
PBT
PAT
12
FY21
FY20
Growth%
635
51
-77
-56
1149
207
66
69
-45%
-75%
NA
NA
FY21
FY20
8.1%
-12.1%
-8.9%
18.1%
5.8%
-6.0%
Q4 Brand-wise performance
PREMIUM FUSION WEAR
CONTEMPORARY ETHNIC WEAR
PREMIUM OCCASION WEAR
13
Share of Brands (%) : Q4 FY21
6%
38%
56%
W Aurelia Wishful
Brand Wise Growth
Brands
W
Aurelia
Wishful
Q4 FY21
-2%
11%
-23%
Q4 Channel-wise performance
Channel Wise Revenue Split – Q4 FY21
3%
21%
35%
LFS
EBO's
42%
Online & Others
MBO
Pan India Multichannel Presence
3,674 561
2,065
1,048
Dec'20
3,685 551
2,123
1,011
Mar'21
MBOs
LFS
EBOs
# of EBOs
As of Mar’21
Q4 openings
W
Aurelia
Wishful
Elleven
Total
319
223
4
5
551
-8
-2
-1
1
-10
14
Working Capital
Rs. Million
Particulars
Debtors
Inventory
Payables
Total Working Capital
Mar’21
Sep’20
1648
2781
(912)
3517
1,637
3,335
(969)
4,003
Mar’20
1,756
3,302
(1,223)
3,835
Contents
Q4 & FY21 Highlights
Current Situation & Focus Areas for FY22
Business Update – Q4 & Full Year FY21
Company Financials – Q4 and Full Year FY21
16
March 31, 2021
For the Quarter Ended Dec 31, 2020
March 31, 2020
Financials : Q4 and FY21
Particulars (All amounts 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,work-in-progress 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 (2 - 4)
Tax expense (a) Current tax (b) Adjustment for tax related to earlier years (c) Deferred tax (credit)/charge
Total tax expense
2211 181
2392
605 64
272 319 114 249 - 534 188
2345
47
0 0 8
8
2379 49
2428
706 3 217
258 70 194 17 548 246
2259
169
0 0 43
43
Profit/(loss) for the period / year (5 - 7)
39
127
For the Year Ended
March 31, 2021
March 31, 2020
6355 490
11487 211
6845
11698
2205 80
439 1214 365 919 17 1596 781
7615
-769
0 0 -206
-206
-564
4507 93 -577
1576 382 1032 226 2691 1108
11037
661
181 -244 29
-33
694
17
2192 91
2283
1199 26 -302
383 95 313 62 585 287
2648
-365
-94 0 -33
-127
-238
Balance-Sheet as on 31.03.2021
Particulars (All amounts in Rs. Million)
As at Mar 31, 2021
As at Mar 31, 2020
Particulars (All amounts in Rs. Million)
As at March 31, 2021
As at March 31, 2020
ASSETS 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 assets (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
307 5 2686 21
444
550 103 30 4147
2781
1724 1648 146
3
4 289 6594
397 21 3084 36
480
350 455 29 4852
3302
1181 1756 529
3
37 316 7124
Total assets
10741
11976
EQUITY AND LIABILITIES Equity (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
18
123 5997 6120
2632 50 124 8 2814
54 619 912 72 4 43 105 1808 4622 10741
123 6477 6600
2995 67 122 5 3188
0 625 1223 77 3 57 202 2188 5376 11976
Cash-Flows for FY21
Particulars (All amounts in Rs. Million)
For the year ended 31.03.21
For the year ended 31.03.20
Particulars (All amounts in Rs. Million)
For the year ended 31.03.21
For the year ended 31.03.20
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit/(Loss) before tax
Adjustments for
Depreciation and amortisation expense Re-measurement of defined benefit liability Interest and dividend income on financial assets Gain on sale of financial assets Finance costs Loss on plant and equipment sold / scrapped / written off Allowance for expected credit loss Lease liability written back Gain on fair valuation of financial assets Share based payments to employees Operating profit before working capital changes
Changes in working capital: Adjustments for (increase) / decrease in operating assets: Inventories Trade receivables Other financial assets Other assets
Adjustments for increase / (decrease) in operating liabilities:
Other financial liabilities Other liabilities Provisions Trade payables
Cash generated from operations Less: Income tax refunds/(paid) (including tax deducted at source) NET CASH FLOW FROM OPERATING ACTIVITIES (A)
-769
919 22
-15
-16 365
27
74 -49 -29 61
589
521 34 35 30
-11 -94 3 -311 796
337
1133
B. CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on property, plant and equipment (including capital work-in- progress and capital advances)
Capital expenditure on intangible assets
Proceeds from sale of property, plant and equipment
Purchase of current investments
Proceeds from sale of current investments
Proceeds from maturity of bank deposits
Interest and dividend received
NET CASH FLOW USED IN INVESTING ACTIVITIES (B)
C. CASH FLOW FROM FINANCING ACTIVITIES
Porceeds from current borrowings (net)
Repayment of non-current borrowings
Shares issued on exercise of employee stock options Payment on account of lease liabilities (including interest on lease liability)
Interest paid
NET CASH FLOW USED IN FINANCING ACTIVITIES (C)
-101
-324
-8
4
-1716
1202
0
64
-556
54
0
7
-996
-25
-961
-4
14
-4613
4811
12
80
-25
0
-2
46
-1007
-7
-971
19
Net increase/(decrease) in cash and cash equivalents (A+B+C)
-383
314
661
1032 -13
-106
-10 382
28
44 -53 0 87
2051
-561 7 29 -33
4 -40 46 73 1576
-266
1310
20