Kewal Kiran Clothing Ltd Investor Update - Q4FY19 and FY19 INDEX - - PowerPoint PPT Presentation

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Kewal Kiran Clothing Ltd Investor Update - Q4FY19 and FY19 INDEX - - PowerPoint PPT Presentation

Nov 27, 2022 1.11k likes •1.36k views

Kewal Kiran Clothing Ltd Investor Update - Q4FY19 and FY19 INDEX Contents Page No Operational Performance: Q4 3 Trend in Revenue & Operating profit 4-5 Trend in Net Profit 6 Balance Sheet 7-8 Ratios and Cash Flow Analysis 9 Brand

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SLIDE 1

Kewal Kiran Clothing Ltd

Investor Update - Q4FY19 and FY19

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SLIDE 2

Contents Page No Operational Performance: Q4 3 Trend in Revenue & Operating profit 4-5 Trend in Net Profit 6 Balance Sheet 7-8 Ratios and Cash Flow Analysis 9 Brand 10-11 Product 12-13 Channels 14-15 Regional Distribution 16-17 Retail Stores 18 Brand Desibelle 19 Autumn Winter Collection launched 20 Retail Stores 21

INDEX

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SLIDE 3

Operational Performance: Q4 and FY 2019

3 Q4 FY 2019 % of Q4 FY 2018 % of FY 2019 % of FY 2018 % of Rs crs sales Rs crs sales Variation Rs crs sales Rs crs sales Variation Net Sales 131.31 118.64 496.16 455.33 Other operating income 1.80 1.38 6.24 4.95 Total Revenue 133.11 100.00% 120.02 100.00% 502.40 100.00% 460.28 100.00% Cost of goods sold 50.76 38.14% 52.88 44.06%

  • 5.93%

192.17 38.25% 193.49 42.04%

  • 3.79%

Personnel cost 18.62 13.99% 15.95 13.29% 0.70% 75.12 14.95% 65.07 14.14% 0.82% Manufacturing and operating expenses 12.44 9.35% 11.61 9.68%

  • 0.33%

49.04 9.76% 45.35 9.85%

  • 0.09%

Administrative and other expenses 9.04 6.79% 7.14 5.95% 0.84% 32.83 6.53% 30.68 6.67%

  • 0.13%

Selling and distribution expenses 14.75 11.08% 6.15 5.13% 5.95% 40.90 8.14% 27.47 5.97% 2.17% Operational expenditure 105.61 79.34% 93.75 78.11% 1.23% 390.06 77.64% 362.06 78.66%

  • 1.02%

EBITDA 27.50 20.66% 26.27 21.89%

  • 1.23%

112.34 22.36% 98.22 21.34% 1.02% Finance expenses 2.04 1.53% 1.18 0.98% 0.55% 6.89 1.37% 4.99 1.08% 0.29% Depreciation/ Ammotisation 2.36 1.77% 1.54 1.28% 0.49% 8.06 1.60% 5.77 1.25% 0.35% Other income 6.88 5.17% 5.85 4.87% 0.29% 21.98 4.38% 21.09 4.58%

  • 0.21%

Profit before tax (PBT) 29.98 22.52% 29.40 24.50%

  • 1.98%

119.37 23.76% 108.55 23.58% 0.18% Income Tax 9.84 7.39% 9.91 8.26% 39.05 7.77% 35.31 7.67% 0.10% Profit after tax (PAT) 20.14 15.13% 19.49 16.24%

  • 1.11%

80.32 15.99% 73.24 15.91% 0.08%

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SLIDE 4

Trend in Revenue

4

Q4 FY2018-19

  • Total Revenue grew by 10.91%
  • Apparel sales quantity higher by 10.47%
  • Apparel sales realization at Rs. 910 per

unit FY2018-19

  • Total Revenue grew by 9.15%
  • Apparel sales quantity higher by 9.99%
  • Apparel sales realization at Rs.927 per

unit

120.02 133.11 12.50 13.81 0.00 50.00 100.00 150.00 200.00 250.00 300.00 Q4 FY 2018 Q4 FY 2019

Total Revenue (Rs crs) Sales Quantity (units in lakhs) 460.28 502.40 46.21 50.83 0.00 100.00 200.00 300.00 400.00 500.00 600.00 FY 2018 FY 2019

Total Revenue (Rs crs) Sales Quantity (units in lakhs)

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SLIDE 5

Trend in Operating Profit

5

FY2018-19

  • EBITDA margin higher and stood at 22.4%
  • EBITDA higher by 14.38% at Rs. 112.34

crores Q4 FY2018-19

  • EBITDA margin at 20.7%
  • EBITDA higher by 4.7% at Rs. 27.5

crores

98.22 112.34 21.3% 22.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.00 20.00 40.00 60.00 80.00 100.00 120.00 FY 2018 FY 2019

EBITDA (Rs crs) EBITDA margin (%)

26.27 27.50 21.9% 20.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34% 5 10 15 20 25 30 35 40 45 50 Q4 FY 2018 Q4 FY 2019

EBITDA (Rs crs) EBITDA margin (%)

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SLIDE 6

Trend in Net Profit

6

Q4 FY2018-19

  • PAT higher by 3.3% at Rs. 20.14 crores
  • PAT margin at 15.1%
  • Quarterly EPS at Rs. 16.34 (Rs. 15.82)

FY2018-19

  • PAT higher by 9.7% to Rs. 80.31 crores
  • PAT margin flat at 16.0%
  • FY2019 EPS at Rs. 65.17 (Rs. 59.43)

19.49 20.14 16.2% 15.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 Q4 FY 2018 Q4 FY 2019

PAT (Rs crs) PAT margin (%) 73.24 80.31 15.9% 16.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 FY 2018 FY 2019

PAT (Rs crs) PAT margin (%)

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SLIDE 7

Balance Sheet (Assets)

7

(Rs crores) As at 31-03-2019 (Audited) As at 31-03-2018 (Audited) Non-Current Assets Property, Plant and Equipment 76.94 67.56 Capital Work in Progress 2.24 9.08 Investment Property 1.43 1.52 Other Intangible Assets 1.94 0.50 Intangible Assets under Development

  • 0.15

Financial Assets Investments 144.91 137.13 Other Financial Assets 3.11 2.51 Other Non-Current Assets 3.12 2.32 Total Non-Current Assets 233.69 220.77 Current Assets Inventories 83.10 52.85 Financial Assets Investments 90.81 93.30 Trade Receivables 177.67 120.73 Cash & Cash Equivalents 53.21 61.54 Bank balances 0.08 0.95 Other Financial Assets 1.43 1.44 Other Current Assets 5.73 5.29 Total Current Assets 412.02 336.10 Total Assets 645.71 556.87

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SLIDE 8

Balance Sheet (Liabilities)

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(Rs crores) As at 31-03-2019 (Audited) As at 31-03-2018 (Audited) Equity Equity Share Capital 12.33 12.33 Other Equity 418.17 387.32 Total Equity 430.50 399.65 Non-Current Liabilities Provisions 0.07 0.07 Deferred Tax Liability 5.47 4.60 Other non-current liabilities 1.35 1.59 Total Non-Current Liabilities 6.89 6.26 Current Liabilities Financial Liabilities Borrowings 93.46 48.30 Trade Payables Due to Micro and Small Enterprises 1.76 0.26 Due to Others 42.97 43.25 Other financial liabilities 6.90 7.18 Other Current Liabilities 32.51 28.93 Provisions 30.73 22.33 Current Tax Liabilities (Net)

  • 0.71

Total Current Liabilities 208.32 150.96 Total Equity and Liabilities 645.71 556.87

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SLIDE 9

Ratios and Cash-flow Analysis

9

  • The financial position remains stable with

healthy cash reserves

Cash Flows (in Rs crores) FY2019 I. Cash Flow from Operating Activity (0.54) *Operating Profit before Working Capital Changes 115.78 *Adjustment for Working Capital (78.30) *Direct Taxes Paid (38.02)

  • II. Cash Flow from Investing Activity

2.78 *Purchase of Fixed Assets (11.58) *(Purchase) / Redemption of Investments in mutual funds & Bank deposits 13.80 *Dividend / Interest Income 0.56

  • III. Cash Flow from Financing Activity

(10.58) *Secured Loans - Bank Overdraft (Net) 45.16 *Interest Paid (6.16) *Dividend Paid (49.58) Cash and Cash Equivalents - Closing 53.21

Ratios Q4 FY2019 Q4 FY2018 Debt Equity ratio 0.22 0.12 Current Ratio 1.98 2.11 Debtors turnover (days) 105 84 Creditors turnover (days) 50 46 Inventory turnover (days) 49 41 RONW 19.42% 19.00% ROCE in operations 52.43% 61.00% ROCE 21.46% 21.42%

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SLIDE 10

Brands : Q4 FY 2018-19

  • Killer continues to be dominant

brand with 59% revenue share

  • Integrity is the second largest brand

with 19% share

Brand wise sales break up Q4 FY 2019

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Sales (Rs crs) Q4 2019 Q4 2018 % Change Killer 77.32 62.60 24% Lawman 14.03 21.53

  • 35%

Integriti 24.34 22.67 7% Easies 9.80 7.10 38% Other Brand 5.82 4.74 23% Total 131.31 118.64 11%

59% 53%

11% 18% 19% 19% 7% 6% 4% 4%

Q4 2019 Q4 2018

Killer Lawman Integriti Easies Other Brand

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SLIDE 11

Brands : FY 2018-19

  • Killer sales grew by 16% and it

continues to be the dominant brand with 57% revenue share

  • Integriti is the second largest brand

with 20% share

  • Easies grew by 27% during the year

Brand wise sales break up FY 2019

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Sales (Rs crs) FY 2019 FY 2018 % Change Killer 282.33 242.75 16% Lawman 62.81 75.89

  • 17%

Integriti 100.28 95.10 5% Easies 25.60 20.18 27% Other Brand 25.14 21.41 17% Total 496.16 455.33 9%

57% 53%

13% 17% 20% 21% 5% 4% 5% 5%

FY 2019 FY 2018

Killer Lawman Integriti Easies Other Brand

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SLIDE 12

Products : Q4 FY 2018-19

  • Jeans continues to be the dominant product

and contributed 62% to revenues

  • Trousers sales grew 80% to Rs. 11.36 crores

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Product wise sales break up Q4 FY 2019

Sales (Rs crs) Q4 2019 Q4 2018 % Change Jeans 81.94 77.25 6% Shirts 22.34 21.52 4% Trousers 11.36 6.32 80% T-Shirts 9.13 7.49 22% Others 6.54 6.06 8% Total 131.31 118.64 11%

62% 65%

17% 18% 9% 6% 7% 6% 5% 5%

Q4 2019 Q4 2018

Jeans Shirts Trousers T-Shirts Others

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SLIDE 13

Products : FY 2018-19

  • Jeans continues to be the

dominant product and contributed 61% to revenues

  • Trousers sales grew 77% to Rs.

47.89 crores

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Product wise sales break up FY 2019 Sales (Rs crs) FY 2019 FY 2018 % Change Jeans 303.13 297.23 2% Shirts 82.58 77.82 6% Trousers 47.89 27.08 77% T-Shirts 24.21 20.84 16% Others 38.35 32.36 19% Total 496.16 455.33 9%

61% 65%

16% 17% 10% 6% 5% 5% 8% 7%

FY 2019 FY 2018

Jeans Shirts Trousers T-Shirts Others

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SLIDE 14

Channels : Q4 FY 2018-19

Channel wise sales break up Q4 FY 2019

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  • MBO’s remains the dominant channel

with 37% revenue share

  • National Chain Stores sales grew 137%

& had a 23% revenue share

  • E-Commerce sales grew by 115%

Sales (Rs crs) Q4 2019 Q4 2018 % Change MBO 48.88 57.78

  • 15.4%

Retail 31.83 24.69 29% National Chain Stores 30.65 12.94 137% Factory Outlet 9.00 12.55

  • 28%

e-Commerce 8.54 3.97 115% Overseas 2.41 6.71

  • 64%

Total 131.31 118.64 11%

37% 49%

24% 21% 23% 11% 7% 11% 7% 3% 2% 5%

Q4 2019 Q4 2018

MBO Retail National Chain Stores Factory Outlet e-Commerce Overseas

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SLIDE 15

Channels : FY 2018-19

Channel wise sales break up FY 2019

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  • MBO’s remains the dominant

channel with 42% revenue share

  • National Chain Stores sales grew by

72% and had a 21% revenue share

  • E-Commerce sale grew by 187%

42% 51%

20% 21% 21% 13% 6% 7% 8% 3% 3% 5%

FY 2019 FY 2018

MBO Retail National Chain Stores Factory Outlet e-Commerce Overseas

Sales (Rs crs) FY 2019 FY 2018 % Change MBO 207.04 230.80

  • 10.3%

Retail 100.14 95.79 5% National Chain Stores 105.12 61.00 72% Factory Outlet 30.08 31.28

  • 4%

e-Commerce 39.52 13.75 187% Overseas 14.25 22.71

  • 37%

Total 496.16 455.33 9%

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SLIDE 16

Regional Distribution : Q4 FY 2018-19

  • Eastern region sales grew by 17%,

continues to be the dominant region with a 36% revenue share

  • Western region sales grew by 30% and

had a 23% revenue share

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Region wise sales break up Q4 FY 2019

Sales (Rs crs) Q4 2019 Q4 2018 % Change East 45.60 39.03 17% West 30.06 23.10 30% South 28.34 23.64 20% North 19.40 18.75 3% Central 5.50 7.41

  • 26%

Domestic Sales 128.90 111.93 15% Overseas 2.41 6.71

  • 64%

Total 131.31 118.64 11%

26% 36% 35% 15% 23% 21%

21% 22% 21% 30% 15% 17% 8% 4% 6%

*Population Distribution Q4 2019 Q4 2018

East West South North Central

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SLIDE 17

Regional Distribution : FY 2018-19

17

Region wise sales break up FY 2019

Sales (Rs crs) FY 2019 FY 2018 % Change East 179.40 174.21 3% West 109.63 88.04 25% South 104.46 73.51 42% North 66.20 68.08

  • 3%

Central 22.22 28.78

  • 23%

Domestic Sales 481.91 432.62 11% Overseas 14.25 22.71

  • 37%

Total 496.16 455.33 9%

26% 37% 40% 15% 23% 20%

21% 22% 17% 30% 14% 16% 8% 4% 7%

*Population Distribution FY 2019 FY 2018

East West South North Central

  • Eastern region sales continues to be the

dominant region with a 37% revenue share

  • Southern region sales grew by 42% and

had a 22% revenue share

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SLIDE 18

Retail stores

18

Particulars COCO COMFO FOFO Total K-Lounge

2 9 192 203

EBO

118 118

Factoy Outlet

1

  • 1

Total

2 10 310 322 COCO - Company Owned Company Operated COMFO - Company Owned Management Franchisee Operated FOFO - Franchisee Owned Franchisee Operated

Retail Stores (YTD) 31.03.19 31.03.18 Existing

318 331

New opened

44 39

Converted Relocated/closed

40 52

Work-in process

19 25

Total Retail Stores

341 343

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SLIDE 19
  • With the acquisition of

womenswear brand, Kewal Kiran Clot hing has ventured in to womenswear after 26 years of presence in Menswear

  • Acquisition of “ Desi Belle” would help KKCL to gain market share in

women’s casual fashion wear

  • With its modern style with desi touch, company expects the brand

to go well among modern woman as it is designed to fit different personalities

  • First
  • fficial collection of “ Desi Belle”

was unveiled during the recent Goa event (with P AN India dealers and distributers). The collection was themed around fusion wear for women.

Women’s fashion brand - “ Desi Belle”

19

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SLIDE 20

Autumn Winter 2019 collection launched

  • KKCL had launched bookings for AW’ 19 (Autumn Winter) collection at the

mega event in Goa

  • Mega display of new designs of all maj or iconic brands - Killer, Integriti,

LawmanPg3, Easies and Desi Belle spread across 17,000 sq.ft.

  • First of its kind in the history of KKCL and the entire booking of apparels

was done online through QR code scanning at the site

20

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SLIDE 21

21

Thank You

Disclaimer: Certain statements in this document or explanation thereof during discussions may be forward looking statements. Such forward looking statements are subject to certain risks and uncertainties like government actions, direct and indirect tax structures , local, political or economic developments, weather conditions deferring season, technological risks, overall market scenario and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Kewal Kiran Clothing Limited(“KKCL”) will not be in anyway responsible for any action taken based on such statements and undertake s no obligation to publicly update these forward looking statement to reflect subsequent events or circumstances.