MONTE CARLO FASHIONS LIMITED Q4 & FY20 INVESTOR PRESENTATION - PowerPoint PPT Presentation

MONTE CARLO FASHIONS LIMITED Q4 & FY20 INVESTOR PRESENTATION

It’s the way DISCUSSION SUMMARY you make me feel # Page No 01 Company Overview 03 02 Quarterly Update 08 03 Monte Carlo Advantage 16 04 Annexure 26

01 COMPANY OVERVIEW

ABOUT US STRONG WIDE PEDIGREE REACH • Leading Winter wear Brand, • Presence across India through a launched in 1984 and part of judicious mix of EBOs, MBOs and Oswal Woollen Mills Ltd Shop in shop ,distributors and • Recognised as “ Superbrand ” national chain stores and online for woollen knitted apparel in • Located in 20 states & 3 union each edition of Consumer territory Superbrands India IN HOUSE DIVERSIFIED DESIGNING TEAM PRODUCT PORTFOLIO • • Successfully diversified Strong design team of over brand across segments like 30 professionals closely Woollen , Cotton, Kids, tracking the trending global Home Furnishing fashion 4 4

DIVERSIFIED PRODUCT PORTFOLIO Home Range Kids Woollen Cotton Furnishing Sweaters, Pullovers Mink thermals, Shirts, trousers, blankets, Monte Carlo woollen accessories t-shirts, track-suits and bed sheets Mid Premium / - Premium (caps, mufflers, shawls, jackets and quilts stoles) Luxuria - Cash wool sweaters , Cotton Shirts, trousers - Mid Premium / - blazers ,coats and t-shirts Premium Denim- Denim Trouser (jeans) - - Mid Premium / - and Shirts Premium Sweaters , Shirts, Tshirts, Trousers , Alpha – - Sweat Shirts Women wear cardigans jackets and sweat-shirts Tweens – Sweaters, Cardigans, - - - Kids wear (7-13 Shirt , T-Shirts and years) Bottoms Cloak & Sweaters , Cotton and cotton - Decker – - cardigans blended Tshirts Men’s wear Tank , Polo T-Shirt, Rock It – - - - Sports wear Shorts, Track Pants T RENDY AND P REMIUM Q UALITY A PPROACH TO C LOTHING 5

WHAT IS IS OUR BUSINESS MODEL Aug May January Feb -March April Onwards Till July BUSINESS CYCLE FOR WINTER SEASON SALES • Commissioned agents display the • • • Dispatching of winter Product development Production of pre- • The dealers and samples to dealers and distributors wear products to EBOs & Sampling process ordered designs distributors of the and MBOs commences • MBOs place orders • Company organizes fashion shows to Design process is showcase proposed products to the with the CAs finalised • Peak Inventory in MBOs and EBOs • Pre-booking of orders • Sample sets sent to September, at the • from MBOs and CAs procure orders from MBOs and our commissioned beginning of the winter franchise EBOs act as an interface between the agents (CA) season Company and MBOs BUSINESS CYCLE FOR SUMMER SALES February November August September October Onwards Till January D ESIGNING IS AN O NGOING P ROCESS T HROUGHOUT THE Y EAR FOR B OTH C OTTON AND W OOLLEN G ARMENTS / P RODUCTION OF P LAIN AND B ASIC D ESIGNS C ONTINUE T HROUGHOUT THE Y EAR FOR B OTH W OOLLEN AND C OTTON G ARMENTS 6

DISTRIBUTION MODEL MBO and NCS Shop In Shop EBO-COCO EBO – FOFO Distributors MINIMUM GOODS RETURNED Distribution Pre-Booking of SOR – Sale or Pre-Booking of Pre-Booking of Inventory owned Sale Model orders Outright Return / orders Outright orders Outright by Company Sales Outright Sales Sales sale Goods Return Minimal Risk 5% - 10 % of No Yes No N.A Products Return Allowed LOW Discount Yes CREDIT RISK Sharing No Yes Yes Yes Range of 5% - 17.5% Payment Exclusive Exclusive Bank guarantee's Collection commissioned Reputed retail commissioned - and PDC taken Credit Risk agents are chains agents are liable from franchise liable to pay to pay COMMANDS PRICING POWER ORDER TO PRODUCE MODEL 7

Q4 & FY FY20 HIG IGHLIGHTS

FY FY20: FI FINANCIAL HIG IGHLIGHTS In Rs Mn REVENUES EBIDTA & EBIDTA MARGIN% * PAT, CASH PAT & PAT MARGIN % 9.1% 7,256 8.6% 17% 15% 961 1,244 787 983 627 596 6,564 FY19 FY20 FY19 FY20 FY19 FY 20 EBITDA EBITDA MARGIN PAT Cash PAT PAT Margin Revenue figures does not include sale of raw material (fabric, yarn, & trims sales) *EBITDA figures does not include other income 9

Q4 FY FY20: RE REVENUE DE DETAILS REVENUE BREAKUP – REGION WISE REVENUE BREAKUP – CHANNEL WISE (Including Online Sales) Q4 FY19: : Rs Rs 956 Mn Mn Q4 FY20: : Rs Rs 1,109 Mn Q4 FY19: : Rs Rs 956 Mn Mn Q4 FY20: : Rs Rs 1,109 Mn Mn 4% 3% 2% 5% 3% 5% 9% 7% 13% 18% 13% 42% 31% 51% 53% 56% 22% 21% 22% 20% North East Central South West Others Including Online MBO+NCS EBO-COCO EBO-FOFO Others including online Onl nline Sa Sales Gr Growth INR (Mn Mn) 49.4 13.7 Q4FY19 Q4FY20 10

FY FY20: RE REVENUE DE DETAILS REVENUE BREAKUP – REGION WISE REVENUE BREAKUP – CHANNEL WISE (Including Online Sales) FY19: : Rs Rs 6,715 Mn Mn FY20: : Rs Rs 7,235 Mn Mn FY19: : Rs Rs 6,715 Mn Mn FY20: : Rs Rs 7,235 Mn Mn 2% 4% 3% 3% 4% 3% 8% 6% 14% 14% 32% 33% 52% 51% 50% 54% 26% 26% 8% 7% North East Central South West Others Including Online MBO+NCS EBO-COCO EBO-FOFO Others including online Onl nline Sa Sales Gr Growth INR (Mn Mn) 240.8 215.5 FY19 FY20 11

Q4 & FY FY20: RE REVENUE ANALYSIS REVENUE BREAKUP - SEGMENT WISE In n Rs Mn Q4 4 FY1 Y19 Q4 4 FY2 Y20 FY1 Y19 FY2 Y20 Tot otal Revenues* 956 956 1, 1,10 109 6, 6,71 715 7, 7,23 235 Woollen Segment 11.0% 12.6% 25.5% 22.3% Cotton Segment 81.6% 74.9% 60.1% 59.1% Home Textiles 2.8% 6.4% 9.1% 11.7% Kids 4.6% 6.1% 5.3% 6.9% FOCUS ON PRODUCT DIVERSIFICATION • Positioning as all fashion brand to reduce seasonality impact, woollen segment contribution has moved marginally lower in FY20 to 22.3% Revenue from core products (Excluding Yarn, Fabrics & Miscellaneous sales) * Q4 FY19 Sales of scrap and accessories was Rs.8.9 Mn, Other Operating revenue was Mn & INDAS adj. was Rs. -10.0Mn * Q4FY20 Sales of scrap and accessories was Rs. 18.3 Mn , Other Operating revenue was Mn& INDAS adj. was Rs. -34.7 Mn * FY19 Sales of scrap and accessories was Rs.29.6 Mn, Other Operating revenue was Mn & INDAS adj. was Rs.-194.4 Mn * FY20 Sales of scrap and accessories was Rs.80.3Mn, Other Operating revenue was Mn & INDAS adj. was Rs. -70.7Mn 12

COVID19: Busi siness Con ontin inuity Update ❑ Current Operational Status ▪ Complying with Government directives on nation-wide lockdown the manufacturing facilities, corporate office and retail stores were temporarily closed from 23 rd March, 2020 ▪ Resumed operations at manufacturing facility from 21 st April 2020; currently operating at 70% capacity utilisation with limited workforce ▪ Launched new products in healthcare segment i.e. Face Masks (3 PLY Mask, KN95 Mask and N95 Mask) and Personal Protective Equipment (PPE) Kit ❑ Liquidity Position ▪ Company’s medium-term liquidity needs are well covered; continues to enjoy comfortable net cash position ▪ Adequate banking limits; ability to service debts and financing obligations on time remains unaffected ❑ Outlook ▪ Expect adverse impact on Financial performance in H1FY21 due to economic slowdown and lower demand ▪ Company’s strong presence in winter wear market and well-diversified product portfolio to minimise the impact of COVID-19 for the full financial year 2021 ▪ Fully geared to withstand the challenges on the back of our financial and operational strengths 13

Q4 & FY FY20: PROFIT AND LOSS STATEMENT Particulars (In Rs Mn) Q4 FY20 Q4 FY19 YoY% FY20 FY19 YoY% Revenue From Operations 1,095 958 14% 7,256 6,564 11% Material Cost 591 656 -10% 3,831 3,444 11% Gross Margin 504 302 67% 3,425 3,120 10% Gross Margin % 46.0% 31.5% 47.2% 47.5% Personnel Expenses 186 155 20% 696 595 17% Advertisement Expenses 76 138 -45% 301 360 -16% Other Expenses 240 264 -9% 1,167 1,135 3% CSR Expenditure 1 47 -98% 16 47 -66% Operating EBITDA 1 -302 -100% 1,244 983 27% EBITDA Margin % - - - 17.1% 15.0% Other Income 10 57 -82% 115 182 -37% Depreciation 90 49 83% 334 191 75% Finance cost 33 15 120% 170 89 90% PBT -112 -310 64% 855 885 -3% Tax Expense -10 -122 -93% 228 289 -21% PAT -102 -188 46% 627 596 5% PAT Margin % - - - 8.6% 9.1% EPS (Rs.) - - - 30 27 14