Kewal Kiran Clothing Limited · NSE:KKCL
Kewal Kiran Clothing — Q2 FY24 Earnings Presentation
45 slides from Kewal Kiran Clothing's earnings presentation, 2023
Slide 1: Q2 & H1 FY24 Financial Overview & Corporate Presentation
Q2 & H1 FY24 FINANCIAL OVERVIEW & CORPORATE PRESENTATION
Slide 2: Q2 & H1 FY24 - Performance Highlights
Q2 & H1 FY24 - Performance Highlights
Slide 3: Q2 & H1 FY24: Key Financial Highlights
Q2 & H1 FY24 : Key Financial Highlights Op. Revenue EBIDTA PAT 16.0% 23.4% 27.2% 22.1% 23.5% 16.8% 18.4% Q2 262.5 49.8 61.7 50.0 39.1 ₹ Cr 226.3 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 15.8% 20.8% 37.7% 20.8% 21.7% 15.7% 18.2% 440.9 95.9 83.6 79.4 60.7 H1 380.9 ₹ Cr H1 FY23 H1 FY24 H1 FY23 H
Slide 4: Profitability Highlights
Profitability Highlights Y-O-Y Y-O-Y Particulars (₹ Cr) Q2 FY24 Q2 FY23 Q1 FY24 H1 FY24 H1 FY23 FY23 % Change % Change Revenue from Operations 262.5 226.3 16.0% 178.4 440.9 380.9 15.8% 779.5 COGS 150.5 132.6 101.6 252.2 220.4 448.9 Gross Profit (GP) 111.9 93.7 76.8 188.7 160.5 330.6 GP Margin 42.7%
Slide 5: Balance Sheet Overview
Balance Sheet Overview As at As at As at As at As at As at Particulars (₹ Cr) Particulars (₹ Cr) Sep 2023 Sep 2022 Mar 2023 Sep 2023 Sep 2022 Mar 2023 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant and Equipment 85.3 76.9 83.9 Equity Share Capital 61.6 61.6 61.6 Right of Use
Slide 6: Operational Matrix (Q2 Y-o-Y)
Operational Matrix (Q2 Y-o-Y) 57.3% 9.9% 4.5% 4.7% 23.5% Q2 FY24 ₹ Cr 58.6% 10.7% 4.5% 4.1% 22.1% Q2 FY23 ₹ Cr Standalone basis 6
Slide 7: Operational Matrix (H1 Y-o-Y)
Operational Matrix (H1 Y-o-Y) 57.2% 11.8% 4.7% 4.5% 21.7% H1 FY24 ₹ Cr 57.9% 12.4% 4.8% 4.1% 20.8% 380.9 H1 FY23 ₹ Cr Standalone basis 7
Slide 8: Q2: Key Updates
Q2 : Key Updates • Launch of Brand “Junior Killer” • Foray into the kids wear category • High-street fashion brand designed for boys of age group 4 year to 16 years • Move marks Brand Killer becoming a four-to-forever (age-group) brand • Strengthening Brand Focused EBOs presence • Net addition of 49
Slide 9: Launch Event – Brand Junior Killer
Launch Event – Brand “Junior Killer”
Slide 10: Tradeshow: Junior Killer SS'24
Tradeshow : Junior Killer SS’24
Slide 11: Product Category Performance
Product Category Performance Product Wise Sales Contribution 7.6% 6.7% 12.9% 4.2% 10.3% 4.6% 4.1% 4.4% 8.1% 8.9% 8.0% 8.4% Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 55.3% 57.4% 55.0% 55.7% 22.7% 24.1% 19.7% 21.9% Qty Sales / Sales Realisation Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 FY23 Apparel and Lifestyle Accessor
Slide 12: Channelwise Sales Performance
Channelwise Sales Performance H1 (Y-o-Y) Q2 (Y-o-Y) 53.0% 54.8% 58.2% 58.6% 47.0% 41.4% 45.2% 41.8% Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 : EBO / LFS : MBO / E-Com / Exports / Factory & Seconds 12
Slide 13: EBO Network Update
EBO Network Update EBO Addition Killer EBO – Guwahati COCO/COFO Particulars FOFO Nos. Total Nos. Nos. As on April 01 2022 25 331 356 As on April 01 2023 28 425 453 As on June 30, 2023 27 427 454 Break up of EBOs • Killer Brand EBOs : 271 As on Sep 30, 2023 28 442 470 • K-Lounge : 178 Mix of COCO / C
Slide 14: Select Recent EBO Openings
Telangana Ghaziabad, Uttar Pradesh Indore, Madhya Pradesh Select Recent EBO Openings Kokrajhar, Assam Allahabad, Uttar Pradesh Warisaliganj, Bihar
Slide 15: KILLER
KILLER dI<
Slide 16: KKCL: Corporate Overview
KKCL : Corporate Overview
Slide 17: Designing Success - Since 1980's
Designing Success - Since 1980’s Journey from a Denim Focused Brand to establishing Lifestyle Brand (s) 1st Flagship Store at Dadar (Mumbai, India) Journey continues . . . 1989 2002 2006 2023 Launched “Killer” Brand Launched “Integriti” Brand Company’s IPO BCCI Sponsorship – Brand Killer 1980 1998 2
Slide 18: Driven by Sustainable Business Ethos
Driven by Sustainable Business Ethos MISSION : VISION : ❖ Driving excellence through - people, business partners and other stakeholders To be a world-class business organization which enables ❖ Focusing on consumer satisfaction and executing a customer-centric business module value, best services an
Slide 19: Supported by Focused & Experienced Board
Supported by Focused & Experienced Board Kewalchand P. Jain, CMD • Finance Function Hemant P. Jain, Jt. MD Dinesh P. Jain, Director Vikas P. Jain, Director • Governance & Compliances • Support Functions • Vision & Strategy • Killer Brand • Manufacturing Planning & • Lawman Brand • Easies Brand Opera
Slide 20: Riding on Key Competitive Success Factors
Riding on Key Competitive Success Factors Established Brand Portfolio 1 Financial Advantage 4 Benefiting End Consumer Widespread Attractive Quality Products Product Leading to at Distribution Innovation Sharp Prices 2 Competitive Advantage 3 In-House Manufacturing & Technical Capabilities 20
Slide 21: KKCL's New Dawn of Growth
KKCL’s New Dawn of Growth Growing of Brand Focused EBOs Increase Visibility & Growing Coverage Expansion of Increased Support towards Product Category Marketing & Distribution Aids Revenue Diversification and Increased Shelf Space Increased support to distribution channel & Higher Marketing Spend Ad
Slide 22: KKCL: Established Brand Portfolio
1 KKCL : Established Brand Portfolio
Slide 23: KKCL: Brand Powerhouse
KKCL : Brand Powerhouse 1 Flagship Brand catering to Premium Luxury segment 2 Premium Mid Market Segment Brand 3 Fashion/Partywear Brand Focused on Mid Market Segment 4 Targeted Premium Mass Market Brand 5 Focused Women Wear Brand 6 Focused Kids wear Brand Denims : Label Tagging an important marketi
Slide 24: Across Age, Across Personality, Across Occasion
Across Age Across Personality Across Occasion
Slide 25: KKCL: Product Innovation
2 KKCL : Product Innovation
Slide 26: Wide Product Portfolio capitalising on Established Brands
Wide Product Portfolio capitalising on Established Brands T-shirts Winterwear Casual Blazer Widening Product Portfolio with Rising Brand Aspiration Shirts Lifestyle Brand Bottom wear to Top Wear To Accessories To being Athleisure Trousers Accessories From being Denim Focused 26
Slide 27: Product Wise Sales Performance
Product Wise Sales Performance 7.7% 4.9% 18.9% 9.7% 4.5% FY19 6.4% FY21 51.6% 16.6% 61.1% 13.8% 18.6% 4.8% FY23 8.7% 51.2% 10.6% 12.6% 5.4% 5.0% 21.5% 8.7% 7.8% FY20 FY22 56.3% 57.1% 18.2% 18.3% 27
Slide 28: KKCL: In-House Manufacturing & Technical Capabilities
3 KKCL : In-House Manufacturing & Technical Capabilities
Slide 29: Manufacturing: A Key MOAT for KKCL
Manufacturing : A Key MOAT for KKCL IN-HOUSE CAPABILTIES : Designing – Procurement – Washing – Stitching – Labelling – Packing – Retail • State of the Art manufacturing capabilities : Technology led manufacturing units equipped with advanced machinery, helping us offer the best products to our custo
Slide 30: Latest Mfg. Technology with Environment Friendly Practices
Latest Mfg. Technology with Environment Friendly Practices • Use of High end Machines with objective to Conserve Water, Purify Chemicals and save resources like time and energy • Adopt certified green chemicals, latest blue technology and energy conservation initiatives to be one of the best environ
Slide 31: KKCL: Widespread Distribution
4 KKCL : Widespread Distribution
Slide 32: Growing Distribution Coverage
Growing Distribution Coverage EBOs Widespread Distribution across Channels 470 EBO (COCO/COFO : 28 , FOFO : 442) Exports LFS Widespread MBO presence through traditional MBO Distributional Channel : 80+ Distributors covering ~3,000+ MBOs across India Widespread Coverage through Select Key Stores: Rel
Slide 33: Channel Wise Sales Contribution
Channel Wise Sales Contribution Brand recognition driving market Pull Strategy Playing it with a flexible Profit oriented & Balanced Market Strategy 58.6% 56.7% 58.1% 51.9% 61.0% 41.4% 43.3% 41.9% 48.1% 39.0% FY19 FY20 FY21 FY22 FY23 : EBO / LFS : MBO / E-Com / Exports / Factory & Seconds 33
Slide 34: KKCL: Sustainable Financial Performance
KKCL : Sustainable Financial Performance
Slide 35: Sales Volume & Realisation
Sales Volume & Realisation 110.7 89.8 84.0 83.0 57.8 Apparel and Lifestyle 23.3% Accessories/ Products Sales Qty (Y-o-Y) Growth (Units in Lakhs) FY19 FY20 FY21 FY22 FY23 Sales Realisation 591 633 520 674 700 (₹ per unit) Apparel Sale Qty 60.5% 64.2% 60.7% 76.2% 72.7% 35
Slide 36: Consistent Robust Financial Performance
Consistent Robust Financial Performance Revenue from Operations 350.0 52.0% Gross Profit 60.0% 50.5% 300.0 50.0% 40.5% 41.0% 42.4% 250.0 779.5 40.0% 200.0 607.6 30.0% 502.4 529.7 150.0 330.6 261.2 267.6 248.9 20.0% 302.7 100.0 50.0 122.7 10.0% - 0.0% ₹ Cr FY19 FY20 FY21 FY22 FY23 ₹ Cr FY19 FY20 FY21
Slide 37: Consistent Robust Financial Performance (contd.)
Consistent Robust Financial Performance (contd.) Working Capital Days – Improving Efficiencies Strong Balance Sheet Strength ₹ Cr 175 Particulars FY22 FY23 Q2FY24 157 146 138 135 Cash & Cash Equivalent / 205.1 181.1 188.2 Bank Deposits Investments 137.3 149.4 166.2 Total Debt 76.7 50.8 49.7 Net Cash
Slide 38: KKCL: Marketing Focused Approach
KKCL : Marketing Focused Approach
Slide 39: Brand DNA
Increased Brand Awareness Campaign Brands are the centre of Communication Strategy Attitude • Brand Positioning Corporate happenings BRAND DNA • Brand Traits Glamour College Festivals • Short term and Long term goals of each Brand Women Westernwear • Mode of Advertising : Preferred mode of advertisi
Slide 40: : ae a a a os KILLER >t
: ae a a a os KILLER >t
Slide 41: Strengthening Channel Partnerships
Strengthening Channel Partnerships • Bi-Annual Trade Shows for Key Fashion Seasons - Helps to connect in-person with channel parnters - Feedback sharing - Better Supply Chain planning on account of Order Bookings - Lesser risks towards dead Inventory • Increased Support for Channel Partners - EOSS s
Slide 42: Recent Awards & Accolades
Recent Awards & Accolades Economic Times : Asian Business Leaders 2022-23 India’s Retail Champ Award – Retailers Association of India (RAI) Economic Times : Iconic Brands of India 2022 42
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by Kewal Kiran Clothing Limited (the “Company”) solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. By attending the meeting where this presentation is being ma
Slide 44: = Vi oo ar
= Vi oo ar 3 Denim + Fashion KILLER>K Lawmanrc? Zeasies Ointegriti
Slide 45: Thank You
Thank You Investor Relations Advisor Marathon Capital Advisory Private Limited 460/7, I.B. Patel Road, Kewal Kiran Estate, Goregaon (East), Mumbai 400063 Rahul Porwal (99675 76900 / rahul@marathoncapital.in) Bhavin Ranawat (9819345619 / bhavin@marathoncapital.in)