Monte Carlo Fashions Ltd. · NSE:MONTECARLO
Monte Carlo Fashions — Q4 FY2019 Earnings Presentation
26 slides from Monte Carlo Fashions's earnings presentation, May 22, 2019
Slide 1: Exchange filing cover letter
MONTE CARLO~--------- GSTN : 03AAFCM7888Q1ZK PAN - AAFCM7888Q TAN - JLDM04272C It's the way youmake me feel ~ CIN - L51494PB2008PLC032059 MONTE CARLO FASHIONS LIMITED Regd. Office: B·XXIX·106, G.T. Road, Sherpur, Ludhiana· 141003 (Pb.) India. Tel.: 91·161·5048610, 5048620, 5048630, 5048640 Fax: 91·1
Slide 2: Q4 & FY19 Investor Presentation
Q4 & FY19 INVESTOR PRESENTATION May 2019
Slide 3: Q4 & FY19 Results Update
MONTE CARLO aX It's the way you make me feel Q4 & FY19 Results Update
Slide 4: Monte Carlo: Poised for Long Term Growth
MONTE CARLO: POISED FOR LONG TERM GROWTH PRODUCT MIX MOVING ▪ Cotton share maintained over 60% of total FY19 revenue reflecting shift towards Cotton from Woollen segment TOWARDS COTTON ▪ Textile and Kids segment delivered robust growth, contributing higher revenue to the overall business ▪ Focus on
Slide 5: Monte Carlo: Differentiated Business Model
MONTE CARLO: DIFFERENTIATED BUSINESS MODEL PRICING ORDER TO POWER Being a premium brand, Monte Carlo Majority of revenues come from PRODUCE enjoys strong pricing power outright sales MODEL basis No discount sharing with MBOs Sales to MBO’s and franchisee owned EBOs (FOFO) are pre-booked and on outri
Slide 6: Q4 & FY19: Key Highlights
Q4 & FY19: KEY HIGHLIGHTS Q4 FY19 YoY ANALYSIS In Rs Mn REVENUES OPERATING EBIDTA & EBIDTA MARGIN% PAT, CASH PAT & PAT MARGIN % 958 836 -36 -133 -87 14.5 % -140 -189 -256 -10.4% -15.9% -26.7% -19.7% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 PAT Cash PAT PAT Margin % FY19 YoY ANALYSIS REVENUES
Slide 7: Q4 FY19: Key Highlights
Q4 FY19: KEY HIGHLIGHTS • Q4 FY19 Revenues increased by 14.5% YoY to Rs 957.8 Mn backed by robust growth across all segments • Q4 FY19 Gross Margin declined by 6.8% YoY to Rs 301.5 Mn • There were additional discounts to the tune of Rs 191.5 Mn due to increase in proportion of discount sales during
Slide 8: Q4 & FY19: Revenue Analysis – Segment Wise
Q4 & FY19: REVENUE ANALYSIS REVENUES BREAKUP – SEGMENT WISE In Rs Mn Q4 FY18 Q4 FY19 FY18 FY19 Total Revenues* 775 956 5,711 6,715 Woollen Segment 7.9% 11.0% 26.3% 25.5% Cotton Segment 84.6% 81.5% 61.0% 60.1% Home Furnishings 2.0% 2.9% 7.6% 9.1% Kids 5.5% 4.6% 5.1% 5.3% FOCUS ON PRODUCT DIVERSIFICAT
Slide 9: Q4 & FY19: Revenue Analysis – Channel Wise
Q4 & FY19: REVENUE ANALYSIS REVENUE BREAKUP – CHANNEL WISE Q4 FY18: Rs 775 Mn Q4 FY19: Rs 956 Mn FY18: Rs 5,711 Mn FY19: Rs 6,715 Mn 2% 9% 7% 8% 22% 18% 35% 33% 51% 51% 52% 19% 57% 22% 7% 7% MBO+NCS EBO-COCO EBO-FOFO Others inc online MBO+NCS EBO-COCO EBO-FOFO Others inc online Improving Diversifica
Slide 10: Q4 & FY19: Revenue Analysis – Region Wise
Q4 & FY19: REVENUE ANALYSIS REVENUE BREAKUP – REGION WISE Q4 FY18: Rs 775 Mn Q4 FY19: Rs 956 Mn FY18: Rs 5,711 Mn FY19: Rs 6,715 Mn 3% 3% 4% 3% 3% 6% 3% 4% 13% 14% 38% 15% 27% 22% 51% 53% 58% 25% 26% 29% North East Central South West North East Central South West Improving Regional Diversification 9
Slide 11: Q4 & FY19: Store Network Analysis
Q4 & FY19: STORE NETWORK ANALYSIS STORE NETWORK EBO – NET ADDITIONS Type of Store FY17 FY18 FY19 FY17 FY18 FY19 EBO – COCO 20 21 27 Existing 223 231 235 EBO – FOFO 211 214 229 New Opened 17 10 27 MBO’s and 2,300+ 2,500+ 2,500+ Closed 9 6 6 Distributors NCS 198 283 306 Total EBOs 231 235 256 In addit
Slide 12: Q4 & FY19: Consolidated Profit & Loss Statement
Q4 & FY19: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY19 Q4 FY18 YoY% FY19 FY18 YoY% Revenue From Operations (Net of Excise Duty) 957.8 836.5 14.5% 6,563.7 5,759.5 14.0% Material Cost 656.3 513.0 27.9% 3,443.9 2,922.1 17.9% Gross Margin 301.5 323.5 -6.8% 3,119.8 2,837.4 10.0% G
Slide 13: FY19: Consolidated Balance Sheet
FY19: CONSOLIDATED BALANCE SHEET Particulars (Rs In Mn) FY19 FY18 Particulars (Rs In Mn) FY19 FY18 Equities & Liabilities Assets Equity Share Capital* 207.3 217.3 Non-Current Assets Property, Plant & Equipment 1,485.5 1,550.2 Other Equity* 4,629.9 4,896.8 Capital work in progress 0.2 0.9 Total Equit
Slide 14: Future Growth Strategy
FUTURE GROWTH STRATEGY • Focus on branding and promotion to further increase our visibility and market share across India FOCUS ON BRAND & PRODUCT PORTFOLIO EXPANSION • Focus on a comprehensive range of cotton and cotton-blended products which cater to all seasons in-order to expand our all-season p
Slide 15: Company Overview
MONTE CARLO ax It's the way you make me feel COMPANY OVERVIEW
Slide 16: Brief Profile
COMPANY OVERVIEW BRIEF PROFILE • Launched in 1984, ‘Monte Carlo’ has emerged as one of the leading brands in apparel industry in India • ‘Monte Carlo’ is recognized as ‘Superbrand’ for woollen knitted apparels by Consumer Superbrands India since 2004 • Under the umbrella brand of ‘Monte Carlo’, Comp
Slide 17: Diversified Product Portfolio
COMPANY OVERVIEW DIVERSIFIED PRODUCT PORTFOLIO RANGES LAUNCHED UNDER THE BRAND – “MONTE CARLO” Range Woollens & Woollen-blended Cottons & Cotton-blended Home Furnishing Kids Monte Carlo – Sweaters, Pullovers thermals, Shirts, trousers, t-shirts, Mink blankets, bed Premium and mid-premium woollen acc
Slide 18: Strong Design & Manufacturing Capabilities
COMPANY OVERVIEW STRONG DESIGN & MANUFACTURING CAPABILITIES IN-HOUSE DESIGN & PRODUCT DEVELOPMENT: • Strong design team of over 30 professionals closely tracking the trending global fashion • Focus on developing new products, improving existing ones and forecasting fashion trends • Regular market su
Slide 19: Retail Presence
COMPANY OVERVIEW RETAIL PRESENCE PAN INDIA PRESENCE ACROSS 22 STATES & 1 UNION TERRITORY J&K 3 HP 10 Chandigarh 4 Punjab 40 Uttarakhand 8 Haryana 26 Delhi 16 Nepal 2 Rajasthan 25 UP 33 Assam 1 N agaland 1 Bihar 32 Manipur 1 Gujarat 7 Jharkhand 8 MP 11 Tripura 1 WB 12 C hhattisgarh 2 Maharashtra 6 Or
Slide 20: E-Commerce Presence
COMPANY OVERVIEW E-COMMERCE PRESENCE • Building our presence on e-commerce platform through our own portal www.montecarlo.in & www.rockit.co.in • Have Entered into distribution agreements with some of the leading Indian digital commerce platforms for online sale of our products OWN PORTAL – WWW.MONT
Slide 21: Understanding Our Business Model
COMPANY OVERVIEW UNDERSTANDING OUR BUSINESS MODEL AUGUST JANUARY FEBRUARY - MARCH APRIL MAY TILL JULY ONWARDS BUSINESS CYCLE FOR WINTER SEASON SALES • Product development • Commissioned agents display the • The dealers and • Production of pre-ordered designs • Dispatching of winter & Sampling proces
Slide 22: Robust Distribution Model
COMPANY OVERVIEW ROBUST DISTRIBUTION MODEL MBO and DIstributors NCS EBO-COCO EBO –FOFO Total Number of Outlets 2,500+ 306 27 229 (Mar’19) % of Revenue Contribution – 60% 40% FY19 (NCS Contribute less than 10%) Pre-Booking of orders SOR – Sale or Return / Inventory owned by Pre-Booking of orders Dist
Slide 23: Understanding Seasonality
COMPANY OVERVIEW UNDERSTANDING SEASONALITY BUSINESS SEASONALITY: SEASONALITY IMPACT ON REVENUES (In % terms) • Q3 generates highest quarterly revenues in any fiscal year • Q3 typically involves sale of winter products – 55 - 60 • Woollens / woollen blended - sweaters, jackets, cardigans • Cotton / c
Slide 24: Shareholding Structure
COMPANY OVERVIEW SHAREHOLDING STRUCTURE Shareholding Pattern * – 12th April 2019 Key Institutional Investors * – 12 April 2019 % Holding Kanchi Investments Ltd (Samara Capital) 9.40% 28.2% Goldman Sachs India 3.13% 3.9% 67.9% Promoter Institutions Public * Post Share Buyback Note: The Company issued
Slide 25: Financial Highlights
COMPANY OVERVIEW FINANCIAL HIGHLIGHTS REVENUES OPERATING EBITDA & EBITDA MARGIN 23.7% 21.7% 6,564 19.7% 5,680 5,760 15.7% 5,200 5,231 14.8% 1,230 1,233 1,132 1,030 776 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT & PAT MARGIN LEVERAGE & RETURN RATIOS 0.31 11.5% 11.8% 0.22 10.4% 9.1% 0.13 0.
Slide 26: For Further Queries
FOR FURTHER QUERIES DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Monte Carlo Fashions Ltd (“MCFL” or the Company) that are not historical in nature. These forward looking statements, which may include statements Dinesh Gogna relating to future
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