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

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 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

Operational Performance: Q4 and FY 2019 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% 3

Trend in Revenue FY2018-19 Q4 FY2018-19 • Total Revenue grew by 9.15% • Total Revenue grew by 10.91% • Apparel sales quantity higher by 9.99% • Apparel sales quantity higher by 10.47% • Apparel sales realization at Rs.927 per • Apparel sales realization at Rs. 910 per unit unit 300.00 600.00 50.83 250.00 500.00 46.21 502.40 200.00 400.00 460.28 13.81 150.00 12.50 300.00 100.00 200.00 133.11 120.02 100.00 50.00 0.00 0.00 FY 2018 FY 2019 Q4 FY 2018 Q4 FY 2019 Total Revenue (Rs crs) Total Revenue (Rs crs) Sales Quantity (units in lakhs) Sales Quantity (units in lakhs) 4

Trend in Operating Profit FY2018-19 Q4 FY2018-19 • EBITDA margin higher and stood at 22.4% • EBITDA margin at 20.7% • EBITDA higher by 4.7% at Rs. 27.5 • EBITDA higher by 14.38% at Rs. 112.34 crores crores 50 25.0% 34% 21.3% 22.4% 32% 45 120.00 30% 40 28% 20.0% 26% 100.00 21.9% 35 112.34 24% 20.7% 22% 30 98.22 15.0% 80.00 20% 18% 25 16% 60.00 27.50 26.27 20 14% 10.0% 12% 15 40.00 10% 8% 5.0% 10 6% 20.00 4% 5 2% 0.00 0.0% 0 0% FY 2018 FY 2019 Q4 FY 2018 Q4 FY 2019 EBITDA (Rs crs) EBITDA margin (%) EBITDA (Rs crs) EBITDA margin (%) 5

Trend in Net Profit Q4 FY2018-19 FY2018-19 • PAT higher by 3.3% at Rs. 20.14 crores • PAT higher by 9.7% to Rs. 80.31 crores • PAT margin at 15.1% • PAT margin flat at 16.0% • Quarterly EPS at Rs. 16.34 (Rs. 15.82) • FY2019 EPS at Rs. 65.17 (Rs. 59.43) 50.00 30.0% 45.00 16.0% 16.0% 15.9% 25.0% 80.00 40.00 14.0% 70.00 80.31 35.00 20.0% 12.0% 16.2% 73.24 60.00 30.00 10.0% 15.1% 50.00 25.00 15.0% 8.0% 40.00 20.00 10.0% 6.0% 15.00 20.14 30.00 19.49 4.0% 10.00 20.00 5.0% 2.0% 5.00 10.00 0.00 0.0% 0.00 0.0% FY 2018 FY 2019 Q4 FY 2018 Q4 FY 2019 PAT (Rs crs) PAT margin (%) PAT (Rs crs) PAT margin (%) 6

Balance Sheet (Assets) (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 7

Balance Sheet (Liabilities) (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 8

Ratios and Cash-flow Analysis Q4 FY2019 Q4 FY2018 Ratios Cash Flows (in Rs crores) FY2019 I. Cash Flow from Operating Activity (0.54) Debt Equity ratio 0.22 0.12 *Operating Profit before Working Capital Changes 115.78 *Adjustment for Working Capital (78.30) Current Ratio 1.98 2.11 *Direct Taxes Paid (38.02) Debtors turnover (days) 105 84 II. Cash Flow from Investing Activity 2.78 *Purchase of Fixed Assets (11.58) *(Purchase) / Redemption of Investments in Creditors turnover (days) 50 46 mutual funds & Bank deposits 13.80 *Dividend / Interest Income 0.56 Inventory turnover (days) 49 41 III. Cash Flow from Financing Activity (10.58) *Secured Loans - Bank Overdraft (Net) 45.16 RONW 19.42% 19.00% *Interest Paid (6.16) *Dividend Paid (49.58) ROCE in operations 52.43% 61.00% ROCE Cash and Cash Equivalents - Closing 53.21 21.46% 21.42% • The financial position remains stable with healthy cash reserves 9

Brands : Q4 FY 2018-19 • Killer continues to be dominant Sales (Rs crs) Q4 2019 Q4 2018 % Change brand with 59% revenue share • Integrity is the second largest brand Killer 77.32 62.60 24% with 19% share Lawman 14.03 21.53 -35% Brand wise sales break up Q4 FY 2019 Integriti 24.34 22.67 7% 4% Q4 2018 53% 18% 19% 6% Easies 9.80 7.10 38% 4% Other Brand 5.82 4.74 23% Q4 2019 59% 11% 19% 7% Killer Lawman Integriti Easies Other Brand Total 131.31 118.64 11% 10

Brands : FY 2018-19 Sales (Rs crs) FY 2019 FY 2018 % Change • Killer sales grew by 16% and it continues to be the dominant brand Killer 282.33 242.75 16% with 57% revenue share • Integriti is the second largest brand with 20% share Lawman 62.81 75.89 -17% • Easies grew by 27% during the year Integriti 100.28 95.10 5% Brand wise sales break up FY 2019 Easies 25.60 20.18 27% FY 2018 53% 17% 21% 4% 5% Other Brand 25.14 21.41 17% FY 2019 57% 13% 20% 5% 5% Total 496.16 455.33 9% Killer Lawman Integriti Easies Other Brand 11

Products : Q4 FY 2018-19 Sales (Rs crs) Q4 2019 Q4 2018 % Change • Jeans continues to be the dominant product and contributed 62% to revenues • Trousers sales grew 80% to Rs. 11.36 crores Jeans 81.94 77.25 6% Shirts 22.34 21.52 4% Product wise sales break up Q4 FY 2019 Trousers 11.36 6.32 80% Q4 2018 65% 18% 6% 6% 5% T-Shirts 9.13 7.49 22% Others 6.54 6.06 8% Q4 2019 62% 17% 9% 7% 5% Jeans Shirts Trousers T-Shirts Others Total 131.31 118.64 11% 12