TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Date: 12.11.2021
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.
Dear Sir/s
Sub: Investor presentation for Q2 and Hl FY 22.
Scrip Code: BSE Code: 541700, NSE Code: TCNSBRANDS
Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
With reference to the above captioned subject, please find herewith, enclosed Investor Presentation
for Q2 and Hl FY 22. The aforesaid Investor Presentation is also being disseminated on Company's
website at https_;j fwforwoman.cQ...mfcontentLl.ovestor-relation
This is for your information and records.
Clothing Co, Limited
Piyush A Compan M. No: A21328
Date: 12.11.2021 Place: New Delhi
ompr: Officer
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TCNS Clothing Co. Limited 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 REGD. OFFICE: 119, W-HOUSE, NEELGAGAN TOWER, MANDI ROAD, SULTANPUR, MEHRAULI, NEW DELHI- 110030 CIN- L99999DL1997PLC090978
TCNS Clothing Co. Ltd
Q2 & H1, FY22 Results November, 2021
Safe Harbour
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
TCNS Overview – Where We Stand
Q2 & H1 FY22 Performance Highlights
TCNS Strategic Growth Levers
Q2 & H1 FY22 Detailed Financials
3
TCNS Overview – Where We Stand
TCNS - India’s Leading Women’s Branded Apparel Company
Portfolio of 4 segment leading brands straddling across fashion sensibilities and value chain
Largest womenswear distribution network with 3700+ outlets and market leading omnichannel capabilities
Diversified supply chain network with 250+ supply chain partners
50+ in-house cutting-edge design team developing over 3000 styles every year
High ROIC, asset-light business model;
Strong cash reserves
5
TCNS houses 4 distinct brands in women’s outerwear segment, each with a focused positioning to offer a comprehensive portfolio for Indian women consumer
Premium fusion wear
Premium occasion wear
Contemporary ethnic wear
The ultimate coordinates destination
6
TCNS has widest womenswear reach with 3700+ points of sales, with strong owned omnichannel network and deep partnerships across all key offline and online retailers
Own Omnichannel Network
LFS Partners – 2100+ doors
•
557 EBO Stores across India and International markets
• Own brand websites offering complete selection and deeper engagement
Key Online Partners
MBO – 1000+ doors
7
With 50+ inhouse design team and 250+ suppliers pan-India, TCNS has a scalable, well- connected & diversified Design-to-Production network
50+
In-house design team focused on driving innovation and creating fashion trends
250+
Partners/ suppliers ranging from artisanal groups to large mills, enabling a highly differentiated product every single time
3000+
Product styles launched every year across Apparel, Footwear, Accessories & Cosmetics
Automated Inventory management system and nimble production and reordering cycle for reduced Concept-to-Shelf
Integrated warehousing facility powered by a strong WMS, upgraded infrastructure and specialized operations team
8
Q2 & H1 FY22 Performance Highlights
Current situation: most of the network running without restrictions now; ~90% operational days in Q2 with intermittent local lockdowns / restrictions across the country
Status as of mid-November Current Situation
Stores Unlocking
Online Sales
Supply Chain & Operations
•
•
•
•
•
As on date most of the offline network operational
Q2 # of operational days at ~90% vis-à- vis ~48% in Q1
Online channels (both own website & marketplaces) fully operational
Intermittent closure of pincodes for non-essential delivery experienced in Q2
Production units fully functional; tracking towards capacity utilization
• Warehouse fully operational with Covid
appropriate protocols in place
10
Sales recovery: sharp and consistent recovery in sales post Covid 2nd wave
Revenue from Operations – Rs Crs.
239
2.5X
94
300
250
200
150
100
50
0
Q1FY22
Q2FY22
Q2 Highlights
• Offline: progressive sales recovery with gradual easing of restrictions on celebrations / events and reopening of offices
• Recovery post 2nd wave more evenly distributed
across city tiers and store types
• Online: sustained momentum of secondary sales continues on a significant base – Online contributed to ~22% of the total revenues. Own website contributing 15% of total online sales
• MBO business revamped and re-initiated
11
FY22 Key Priorities: Invest in building growth runways and key capabilities while preserving balance-sheet strength
Online Business Growth
Continue scale-up of own website through deeper omni offerings, personalized marketing and technology upgradation
Expand third-party marketplace with new business models, additional channels and online first product offering
Calibrated Offline Expansion
Project Rise: upgrade and expand the flagship stores to tap into available real estate opportunity
Project Bharat: expand store network across tier 3/4 markets through franchisee-led model
Cash Conservation
Reduce working capital through inventory optimization and lower-risk trade models
Continue optimizing costs on all fronts, especially rentals and overheads
Swifter Thought-to-Shelf
Enhance design, sampling and production capabilities to develop products closer to season launch
Institutionalize next phase of Automated inventory management
•
•
•
•
•
•
•
•
12
Online business continued to grow well on consumer secondary sales basis
Online exclusive range by Aurelia
Q2 Highlights
• Consistent 20%+ revenue contribution from online business - D2C share majority of the sale
• Newer marketplaces added last year scaled up
sharply to 2.5X YoY
• Omni-channel fulfillment at store stabilized and scaled up. Most of demand centres covered, contributing to over 5% of sales for select channels already
• Online exclusive collection launched for the first
time in the Aurelia brand
13
Offline store expansion: On track to open 1 store every ~3 days in H2 to add over 60 Exclusive brand stores in FY22
Project RISE Store – CP, Delhi
Project RISE
• Store opening for Project RISE picking up pace. 5 stores opened across premium markets of Delhi, Mumbai, Pune and Bhopal; 15 stores signed – slated to open in H2, FY22
• Stores already tracking at average 1.5X,
expected to scale up further
Project Bharat
• Strong pipeline of 15 stores, slated to open in
H2, FY22
14
Project RISE CP Store, Delhi – complete brand portfolio in one store
15
Cash accretive in Q2. Current cash reserves increased to ~Rs 160 Crs from ~110 Crs in same period last year
Cash Reserves (Rs Crs.)
Working Capital (Rs Crs.)
180
160
140
120
100
80
60
40
20
0
110
160
410
400
390
380
370
360
350
340
330
320
400
352
350
mid-Nov 2020
mid-Nov 2021
Q2 FY21
Q4 FY21
Q2 FY22
• Cash accretive in 3 out of last 4 quarters driven by continued recovery, cost mitigation & working capital
reduction
• Rental savings estimated at ~20% for full year FY22
16
Swifter Thought-to-shelf: all key initiatives well on track and demonstrating results
Integrated mother warehouse
Footwear Development Center
Q2 Highlights
•
~1.4
Integrated ft. warehouse streamlined – geared up to handle multi category operations at scale
sq.
lac
• Automated Replenishment System phase 2
piloted across all Large Format Stores
• Dedicated Footwear Development Center established. Each developed option certified through 25+ tests by a leading global quality agency to meet most stringent international benchmarks.
17
Q2 & H1, FY 22 : Performance Highlights
Particulars (Rs Million)
Q2FY22
Q2FY21
Growth -YoY%
H1FY22
H1FY21
Growth -YoY%
Revenue
EBITDA
PBT
PAT
2393
451
141
111
1441
-69
-381
-276
66%
NA
NA
NA
3331
247
-349
-250
1766
-330
-985
-729
89%
NA
NA
NA
% to Revenue
Q2FY22
Q2FY21
H1FY22
H1FY21
EBITDA
PBT
PAT
18.8%
-4.8%
7.4%
-18.7%
5.9%
4.6%
-26.4%
-19.1%
-10.5%
-55.8%
-7.5%
-41.3%
18
Q2 FY 22 : Brand-wise performance
Share of Brands (%)
Q2FY22
40%
W
Aurelia
Wishful
55%
5%
5%
Q2FY21
39%
W
Aurelia
Wishful
56%
19
Q2 FY 22 : Channel-wise performance Channel Wise Revenue Split
Q2FY22
3%
Q2FY21
22%
36%
38%
35%
Pan India Multichannel Presence
3756
557
3711
549
39%
# of EBOs
W
Aurelia
Wishful
Elleven
Total
27%
2178
2154
LFS
EBO's Online & Others MBO
As of Sep'21
Q2 Openings
323
223
4
7
557
3
3
0
2
8
1021
Sep-21
1008
Jun-21
MBOs
LFS
EBOs
20
TCNS Strategic Growth Levers
TCNS presence and opportunity areas across Indian women’s purchasing basket categories
Indian Women’s purchase basket (Segment, CY20 Size ‘000 INR Cr.)
TCNS Sub-Segment Presence
Established presence Under progress Not Present
Apparel- Outerwear 130-150
Traditional
Ethnic / Fusion
Western
Bottomwear
50-55
40-45
10-12
25-30
Footwear
Accessories2
20-22
10-12
Footwear & Accessories 30-35
Makeup & Color Cosmetics Fragrances, Deos, Accessories
10-12
8-10
Beauty & Personal Care (select) 18-20
Apparel-Intimatewear 40-50
Intimate & Sleepwear Active wear / Sleepwear Others1
30-40
5-10
5-10
1. Winterwear, Maternity wear etc 2. Bags, Fashion jewellery, Belts, Sunglasses etc. Source: Redseer, Wazir, Avendus
TCNS is expanding beyond core strength areas of Apparel-Outerwear and building a comprehensive portfolio to offer a Top-to-Toe look
Product evolution journey
Proof of Concept through Pilot
Low risk roll- out
Full-scale roll- out
Continued Growth
• Limited merchandise • Launch in 1 GTM
channel
• Merchandise expansion • Expand in 1-2 channels; test remaining channels / models
• Full breadth
merchandise roll-out • Scale up across all GTM
• Focus on product
innovation
• Focus on supply-chain
channels
efficiency
Category Apparel-Outerwear
Sub-category
Premium Fusion
Contemporary Ethnic
Sustainable, Indian Craft led Fusion
4 Online exclusive range by Aurelia
Exclusive Bottomwear
6
5
Folksong by W
3
1
2
Footwear & Accessories Beauty & Personal Care
Footwear & accessories
8
Footwear by Aurelia
7
Footwear by W
Makeup & Color Cosmetics
9
Cosmetics by W
23
Q2 & H1 FY’22 Detailed Financials
Profit & Loss Statement
S.No.
Particulars (Rs. Million)
Q2FY22
Q2FY21
YoY
Q1FY22
QoQ
H1FY22
H1FY21
YoY
FY21
1.
Income
(a) Revenue from operations
(b) Other income
Total income
2.
Expenses
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c) Changes in inventories of FG, WIP 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)
Total tax expense
Profit/(loss) for the period/year (5 - 7)
3.
4.
5.
2,393
1,441
149
94
2,542
1,535
66%
59%
66%
858
33
2
362
89
221
-
577
259
647
33%
5
46
310
89
224
-
394
203
629%
-95%
17%
0%
-1%
46%
28%
25%
2,400
1,916
141
30
111
(381)
(105)
(276)
155%
401%
163%
33%
64%
16%
11%
7%
-100%
126%
63%
65%
938
30
968
644
20
(249)
311
80
206
32
256
159
1,458
(490)
(130)
(361)
1,766
89%
260
-31%
2,025
73%
6,355
490
6,845
894
68%
2,205
13
299%
3,331
178
3,509
1,501
54
(247)
673
169
427
32
833
418
(50)
637
180
476
-
514
347
6%
-6%
-10%
62%
20%
28%
3,859
3,011
(349)
(99)
(250)
(985)
(256)
(729)
80
439
1,214
365
919
17
1,596
781
7,615
(769)
(206)
(564)
25
Balance Sheet
Assets (Rs Million) 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 Asset (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 TOTAL ASSETS
Sep-21
Mar-21
313 2 3026 26 467 649 109 28 4620
307 5 2686 21 444 550 103 30 4147
2962
2781
1504 1865 128 43 4 355 6861 11481
1724 1648 146 3 4 289 6594 10741
Equity & Liabilities (Rs Million) 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
Sep-21
Mar-21
123 5795 5918
2991 72 151 10 3224
0 614 1327 99 4 43 253 2339 5563 11481
123 5997 6120
2632 50 124 8 2814
54 619 912 72 4 43 105 1808 4622 10741
26
For further information, please contact
Company :
Investor Relations Advisors :
CIN: L99999DL1997PLC090978
CIN: U74140MH2010PTC204285
Mr. Amit Chand
Mr. Rahul Agarwal / Mr. Aakash Mehta rahul.agarwal@sgapl.net / aakash.s.m@sgapl.net +91 98214 38864 / +91 98706 79263
www.tcnsclothing.com
www.sgapl.net