Financial Review Q4&FY2015 Q4 ` Net Revenues 11.3% growth - PowerPoint PPT Presentation

Indian Terrain Fashions Limited Financial Review – Q4&FY2015

Q4 ` Net Revenues 11.3% growth Operational EBITDA PBT 32.7% growth 134.2% growth FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 Revenue growth of 11.3%, with volume growth at 9%  Operational EBITDA margins at 12%; growth of 33% from previous year lead by improved sales, incremental price  realisations and stable input costs Increase in other income by 56 lakhs contributed by income from investment in mutual funds  Reduced interest costs through lesser utilisation of working capital facilities and repayment of term loans  PBT at 9.2% of revenues; growth of 134%  2 new stores opened during the period – 1 each in Vizag (AP) and Karaikudi (TN) 

FY 2015 FY 2015 FY 2014 Change  Revenue growth of 25% with volume growth % to % to at 19% Rs. In Crs Rs. In Crs Revenues Revenues Growth driven by  Focus on continued retail expansion – net Net Revenues 290.41 100.0% 232.06 100.0% 25.1% Revenues addition of 13 stores  Continued growth momentum in departmental Operational EBITDA 33.52 11.5% 24.18 10.4% 38.6% stores  Year of thrust on e-commerce – big push to Other Income 0.78 0.3% 0.28 0.1% 178.6% reach more cities and more consumers Interest 8.63 3.0% 9.50 4.1% -9.2% Depreciation 2.92 1.0% 2.46 1.1% 18.7% Margin expansion by 1% led by Profit Before Tax 22.75 7.8% 12.50 5.4% 82.0%  Healthy revenues Margins  Improved price realisation Tax 4.77 1.6% 2.62 1.1% 82.0%  Reduced Selling Costs - better absorption of overheads Profit after Tax 17.98 6.2% 9.88 4.3% 82.0%

Revenues - Channel mix FY 15 e-Com Others 4% FY 14 2% Others EBO e-Com 3% 34% 2% EBO MBO 33% 35% MBO 36% LFO LFO 25% 26% EBOs grew 28% from FY 14 and contributed 34% to total revenues  MBOs and LFOs grew around 20% each  E-sales grew at 3.3x and contributed 4% to total revenues 

Revenues - Product Mix (on volumes) FY 15 Denims Others Jackets FY 14 Denims Jackets Others 1% 1% 2% 0% 1% 2% Knits Knits 19% 21% Shirts Shirts 44% 43% Shorts 4% Shorts 4% Trousers 29% Trousers 29% Woven categories of Shirts / Trousers / Shorts has grown by 22%  Knits and Jackets have grown by 9% and 6% respectively  Denims as a category has started gaining traction from AW2014 

Exclusive Branded Outlets  Continued strong growth momentum – Y-o-Y growth at 28%  29 new stores added during the year including major strategic flagship store in Cannaught Place, New Delhi  Continued focus on exiting low margin / low throughput stores - 16 stores closed during the year  Retail expansion centered around strategic markets of TN, AP and Delhi/NCR Op New Closed Cl Op New Closed Cl South 31 14 1 44 COCO 3 - - 3 North 27 5 7 25 COFO 22 5 2 25 West 32 8 8 32 FOFO 73 24 14 83 East 8 2 10 Total 98 29 16 111 Total 98 29 16 111 120 100 80 60 99 111 98 77 86 40 70 53 51 20 - FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Net revenue (INR crs) No. of Stores

Large Format Outlets  19% growth from FY 14  Addition of 26 counters during the year (6 in Quarter 4)  Brand has increased its Market Share in select formats / counters during the year 80 180 70 160 60 140 50 120 40 100 72 169 80 30 60 143 130 60 119 20 41 36 40 10 20 - - FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Net revenue (INR crs) No. of Counters

Multi Branded Outlets  21% growth from FY 14  West continues to be the highest contributor  Eastern Markets have witnessed strong growth 120 Net Revenue breakup 100.0% 10.4% 100 6.5% 80.0% 27.1% 80 31.7% 60.0% 60 32.8% 101 40.0% 32.5% 83 40 20.0% 29.7% 56 48 29.3% 20 0.0% - FY15 FY14 FY12 FY13 FY14 FY15 Net revenue (INR crs) South West North East

Revenue and Profitability Net revenue from operations and growth Operational Earnings before interest, tax and depreciation and margin 350 40 12% 290 34 300 35 12% 12% 232 250 30 11% 24 25 11% 200 10% 157 141 20 10% 150 15 10% 12 15 10% 100 10 9% 9% 50 5 9% - 0 8% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Net revenue from operations (INR crs) Operational EBITDA (INR Crs) EBITDA margin Profit after tax (PAT) and margin 20 7% 18 6% 6% 15 5% 4% 4% 10 3% 3% 10 4 2% 5 1% 1% 2 0 0% FY12 FY13 FY14 FY15 PAT (INR Crs) PAT margin CAGR of ~20%, continued improvements to operating margins

Working Capital Cycle Debtor days Creditor days 153 139 115 109 63 60 48 40 FY12 FY13 FY14 FY 15 FY12 FY13 FY14 FY15 Inventory days Working capital cycle 85 165 166 75 126 59 118 50 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15

Thank You Disclaimer The information contained in this presentation is only current as of its date. Please note that the past performance of the Company is not and should not be considered as, indicative of future results. This presentation may contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects and future developments in our sector and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the results contemplated by the relevant forward looking statement. The factors which may affect the results contemplated by the forward looking statements could include, amongst others, future changes or developments in (i) the Company’s business, (ii) the Company’s competitive environment, and (iii) political, economic, legal and social conditions in India. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner.