TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation
Corporate Relations Department
BSE Limited ist Floor, New Trading Ring Rotunda Building, P J Tower Dalal Street, Fort, Mumbai 400 001
Date: 11.02.2022
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 Q3 FY 22.
Scrip Code: BSE Code: 541700, NSE Code: TCNSBRANDS
Regulation
Ref: Regulations, 2015.
30
of
SEBI
(Listing
Obligations
and
Disclosure
Requirements)
With reference to the above captioned subject, please find herewith, enclosed Investor Presentation
for Q3 FY 22. 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.
For and On
Alf of TCNS Clothing Co. Limited
Thanking you
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Oo 2 + in o
Compat
E
and Compliance Officer
Date: 11.02.2022 Place: New Delhi
TCNS Clothing Co. Limited 119 & 127, W-HOUSE, NEELGAGAN TOWER, MANDI ROAD,SULTANPUR, MEHRAULI, NEW DELHI-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
Q3 & 9M, FY22 Results February 11, 2022
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
Business Update and Key Focus Areas
Q3 & 9M FY22 Detailed Financials
3
TCNS Overview
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 3800+ 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 reach amongst womenswear brands with 3800+ points of sale. Strong omnichannel network and deep partnerships across all key offline and online retailers
Own Omnichannel Network
LFS Partners – 2200+ doors
•
575 EBOs 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
Business Update and Key Focus Areas
Sales recovery: In-line with our highest ever sales quarter despite covid-led disruptions towards end of December
Revenue from Operations – Rs Crs.
350
300
250
200
150
100
50
0
94
~1.4X
239
329
Q3 Highlights
• Offline: the channel bounced back strongly to reach
~90% against pre-covid levels
• Recovery post 2nd wave more evenly distributed
across city tiers and store types
• Online: sustained momentum of secondary sales continue on a significant base. Own website grew ahead of other platforms and is now contributing high- teens of online revenue.
• MBO business back-on track and scaling up well
Q1FY22
Q2FY22
Q3FY22
10
FY22 Key Priorities: Invest in building growth runways and key capabilities while preserving balance-sheet strength
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
Online Business Growth Calibrated Offline Expansion
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
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
•
•
•
•
•
•
•
•
11
Offline store expansion: Added 18 net stores in Q3; On track to cross 600 EBOs by year-end
Goa
Project RISE
• Accelerated store opening for Project RISE. 9 stores opened across key markets; Another 10 stores in pipeline
• RISE stores already tracking higher than pre-
covid levels; expected to scale up further
Project Bharat
• Opened 5 stores in Q3; Strong pipeline of 15
stores
12
Online business continued to grow well on a strong presence and large base
Q3 Highlights
• D2C business driving growth, continues to
deliver more than 50% of online sales
• Brand website continued sharp traction – now total online
contributing in high-teens of business
• Omni-channel fulfillment at store level scaled up; now contributing more than 10% of sales for select channels
13
Cash accretive in Q3. Current cash reserves at ~ Rs 180 Crs now higher than pre-covid levels
Cash Reserves (INR Cr.)
185
180
175
170
165
160
155
150
145
140
171
155
180
• Cash accretive in 4 out of last 5 quarters driven by continued recovery, cost mitigation & working capital reduction
• Rental savings of ~20% delivered in FY22
end-Mar'20
mid-Feb'21
mid-Feb'22
14
Swifter Thought-to-shelf: all key initiatives well on track and demonstrating results
Integrated mother warehouse
Q3 Highlights
• All key initiatives on track
• Automated Replenishment System phase 2 stabilized across all EBO and Large Format Stores
•
Integrated warehouse with capability to manage multi-category and multi-channel fulfillment, fully operational. Fabric transition initiated to integrated warehouse.
15
New brands / categories are gearing up well to establish a strong footprint in Spring- Summer 2022
Elleven
Footwear
Cosmetics
➢ Expanded the presence to 8 EBOs
➢ Footprint has expanded to ~150
and over 40 LFS stores
EBOs
➢ Opening 7 new EBOs by Mar’22
➢ Contributing high single digit of the store sales across the store network
➢ Pilot underway ➢ Targeting to establish product-
market fit over Spring Summer 2022
16
Q3 FY 22 : Summary Financials
Particulars (Rs Million)
Q3FY22
Q3FY21
Growth -YoY%
9MFY22
9MFY21
Growth -YoY%
Revenue
EBITDA
PBT
PAT
3285
2379
677
353
251
434
169
127
38%
56%
109%
98%
6616
924
4
1
4145
104
-816
-603
60%
790%
NA
NA
% to Revenue
Q3FY22
Q3FY21
9MFY22
9MFY21
EBITDA
PBT
PAT
20.6%
10.8%
7.6%
18.2%
7.1%
5.3%
14.0%
2.5%
0.1%
0.0%
-19.7%
-14.5%
17
Q3 FY 22 : Brand-wise performance
Share of Brands (%)
7%
Q3FY22
40%
53%
W
Aurelia
Wishful
Q3FY21
39%
6%
W
Aurelia
Wishful
55%
18
Q3 FY 22 : Channel-wise performance
Channel Wise Revenue Split
Pan India Multichannel Presence
Q3FY22
5%
17%
38%
Q3FY21
1%
39%
40%
23%
37%
LFS
EBO's
Online & Others
MBO
As of Dec'21
Q3 Openings
333
231
4
7
575
10
7
0
1
18
# of EBOs
W
Aurelia
Wishful
Elleven
Total
3,837
575
3756
557
2204
2178
1058
Dec-21
1021
Sep-21
MBOs
LFS
EBOs
19
Q3 & 9M FY’22 Detailed Financials
Profit & Loss Statement
S.No.
Particulars (In Rs. Million)
Q3FY22
Q3FY21
YoY
Q2FY22
QoQ
9MFY22
9MFY21
YoY
FY21
1.
Income
(a) Revenue from operations
(b) Other income (See note 6)
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 (See note 6)
(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.
3285
47
3332
977
50
31
422
95
229
10
847
317
2379
49
2428
706
3
217
258
70
194
17
548
246
2979
2259
353
103
251
169
43
127
38%
-5%
37%
38%
1567%
-86%
64%
35%
18%
-41%
55%
29%
32%
109%
141%
98%
2393
149
2542
858
33
2
362
89
221
0
577
259
2400
141
30
111
37%
-68%
31%
14%
51%
1263%
17%
7%
4%
47%
23%
24%
150%
237%
126%
6616
225
6842
2478
104
-216
1095
263
657
42
1680
735
6838
4
3
1
4145
309
4453
1600
16
167
895
250
670
17
1062
592
5270
-816
-214
-603
60%
-27%
54%
55%
531%
22%
5%
-2%
148%
58%
24%
30%
6355
490
6845
2205
80
439
1214
365
919
17
1596
781
7615
-769
-206
-564
21
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