TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Date: 13.08.2021
Corporate Relations Department BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Tower Dalal Street, Fort, Mumbai 400 001
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 400 051.
SUB: Investor Presentation for Q1 ended 30th June 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 Q1 ended 30th June 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 records.
Thanking you, For and On behalf of TCNS Clothing Co. Limited
Piyush Asija
Company Secretary and Compliance Officer M. No. A21328
Date: 13.08.2021 Place: New Delhi
TCNS Clothing Co. Ltd.
Q1 FY22 Results August 13, 2021
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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.
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Contents
Situation Update
Focus Areas for FY22
Q1 FY22 Results Summary
Q1 FY22 Financials
3
Contents
Situation Update
Focus Areas for FY22
Q1 FY22 Results Summary
Q1 FY22 Financials
4
Current situation: gradual unlocking underway with intermittent local lockdowns / restrictions across the country
1
Stores Unlocking As on date most of offline network operational, though with multiple restrictions on working hours / days
Q1 was disrupted with ~48% of
operational days
Status as of mid-August
Current Situation
2
Online Sales Online channels (both own website & marketplaces) fully operational
Impact of ban on non-essential
items delivery in multiple states in April and May
3
Supply Chain & Operations Production units are now functional;
tracking towards full capacity utilization Warehouse fully operational with Covid
appropriate protocols in place
5
Sales recovery: sharp and consistent recovery in offline sales post Covid 2nd wave; online continues to scale up rapidly
Revenue from Operations – Rs Crs.
Q1 Highlights Offline: sharper trajectory of recovery
across offline channels • Consistent
evenly distributed across tiers and store types
recovery;
sales
Online:
strong sustained momentum continues on a significant base. Own website of overall online sales.
contributing mid-teens
~3X growth
94
32
FY21 Q1
FY22 Q1
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Contents
Situation Update
Focus Areas for FY22
Q1 FY22 Results Summary
Q1 FY22 Financials
7
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
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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,
FY22 Key Priorities: Key Highlights from Q1 FY22
01. Online Business Growth o Overall growth of over 2X over last year; More than half of Online revenue now from D2C
o Store Omni model launched with multiple
marketplaces
o Online-first product range created
04. Swifter Thought-to-Shelf o Implemented Automated Replenishment System (Phase 1) across all brands for EBO and LFS stores
o Finished goods warehouses consolidated into an integrated warehouse in Gurgaon
02. Calibrated Offline Expansion o Overall 40+ stores signed driven by Project Rise and Project Bharat; slated to open in Q2 and Q3
o Project Rise: first set of 15 stores signed key malls and high-streets, at
across attractive long-term leases
03. Cash Conservation o Cash reserves as on date of Rs 140 Crs vis-à-
vis Rs 125 Crs same period last year.
o Rental concessions of ~20% expected for full year. Savings of Rs 3 Crs accounted in Q1 as as many of the deals are in process of getting signed
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Contents
Situation Update
Focus Areas for FY22
Q1 FY22 Results Summary
Q1 FY22 Financials
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Q1 FY 22 : Reported Ind-AS-116
Amount Rs. Crores
Q1 FY22
Revenue
EBITDA
PBT
PAT
% to Revenue
EBITDA
PBT
PAT
94
-20
-49
-36
Q1 FY22
-22%
-52%
-38%
Growth%
189%
NA
NA
NA
Q1 FY21
32
-26
-60
-45
Q1 FY21
-81%
-186%
-140%
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Q1 FY 22 : Brand-wise performance
PREMIUM FUSION WEAR
CONTEMPORARY ETHNIC WEAR
PREMIUM OCCASION WEAR
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Share of Brands (%) : Q1 FY22
3%
40%
57%
W Aurelia Wishful
Brand Wise Growth
Brands
W
Aurelia
Wishful
Q1 FY22
211%
184%
59%
Q1 FY 22 : Channel-wise performance
Channel Wise Revenue Split – Q1 FY22
30%
50%
LFS
EBO's
20%
Online & Others
Pan India Multichannel Presence
3,685
551
2,123
1,011
Mar'21
3,711
549
2,154
1,008
Jun'21
EBOs
LFS
MBOs
# of EBOs
As of Jun’21
Q1 openings
W
Aurelia
Wishful
Elleven
Total
320
220
4
5
549
1
-3
0
0
-2
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Contents
Situation Update
Focus Areas for FY22
Q1 FY22 Results Summary
Q1 FY22 Financials
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Q1 FY 22 : Financials
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(All amounts in Rs. million except otherwise specified)Year EndedJune 30, 2021 (Unaudited)March 31, 2021(Unaudited)(See note 3)June 30, 2020 (Unaudited)March 31, 2021 (Audited)1.Income (a) Revenue from operations 938.24 2,210.85 324.20 6,355.36 (b) Other income (See note 5)29.66 181.11 165.87 489.89 2.Total income 967.90 2,391.96 490.07 6,845.25 3.Expenses(a) Cost of materials consumed643.69 604.92 247.00 2,204.57 (b) Purchases of stock-in-trade20.31 63.78 8.85 80.18 (c) Changes in inventories of finished goods,work-in-progress and stock-in-trade(249.30) 271.88 (96.15) 438.95 (d) Employee benefits expense310.90 318.63 327.55 1,213.90 (e) Finance costs79.77 114.17 91.37 364.53 (f) Depreciation and amortisation expense206.38 249.35 251.94 919.14 (g) Rent expenses (See note 5)31.89 -- 16.87 (h) Selling and distribution expenses255.61 533.93 119.72 1,595.61 (i) Other expenses158.91 188.41 144.13 780.88 4.Total expenses1,458.15 2,345.07 1,094.41 7,614.63 5.Profit/(loss) before tax (2 - 4)(490.25) 46.89 (604.34) (769.38) 6. Tax expense (See note 7)(a) Current tax- - - - (b) Deferred tax (credit)/charge (129.64) 8.16 (151.05) (205.55) 7.Total tax expense(129.64) 8.16 (151.05) (205.55) 8.Profit/(loss) for the period/year (5 - 7)(360.61) 38.73 (453.29) (563.83) ParticularsQuarter Ended 16
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