Kewal Kiran Clothing Limited · NSE:KKCL
Kewal Kiran Clothing — Q2 FY23 Earnings Presentation
50 slides from Kewal Kiran Clothing's earnings presentation, Oct 21, 2022
Slide 1: Kewal Kiran Clothing Limited – Investor Presentation Cover Letter
KIRAN CLOTHING LIMITED Registered & Corporate Office :- Kewal Kiran Estate, 460/7, I.B. Patel Road, Goregaon (E), Mumbai: 400 063 Tel No. +91 22 26814400 Fax No. +91 22 26814410 CIN No. L18101MH1992PLC065136 website : www.kewalkiran.com October 21, 2022 To, National Stock Exchange of India BSE (Bomb
Slide 2: Q2 & H1 FY23 Financial Overview & Corporate Presentation
Q2 & H1 FY23 FINANCIAL OVERVIEW & CORPORATE PRESENTATION
Slide 3: 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 4: Q2 & H1 FY23 Achievement Highlights
Q2 & H1 FY23 Achievement Highlights
Slide 5: Q2/H1 FY23 – Key Financial Highlights
Q2/H1 FY23 – Key Financial Highlights 29% 55% 45% 16.9% Q2 22.1% 14.9% 18.4% ₹ Cr 226 39 50 175 27 32 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 43% 97% 71% 20.8% 15.7% H1 12.9% 381 15.1% 61 79 267 ₹ Cr 36 40 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Op. Revenue EBIDTA PAT Standalone basi
Slide 6: Profitability Highlights
Profitability Highlights Y-O-Y Y-O-Y Particulars (₹ Cr) Q2 FY23 Q2 FY22 Q1 FY23 H1 FY23 H1 FY22 FY22 % Change % Change Revenue from Operations 226.3 175.1 29% 154.5 380.9 266.6 43% 607.6 COGS 132.6 103.4 87.7 220.4 158.3 358.7 Employee Expenses 24.3 19.2 23.0 47.3 36.3 79.8 Administrative & Other Ex
Slide 7: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ Cr) Particulars (₹ Cr) Sep 2022 Mar 2022 Sep 2022 Mar 2022 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant and Equipment 76.9 77.7 Equity Share Capital 61.6 61.6 Right of Use Asset 13.3 6.8 Other Equity 445.4 416.6 Capital
Slide 8: Operational Matrix
Operational Matrix Q2 Operational Matrix H1 Operational Matrix ₹ Cr ₹ Cr 8 16 13 9 18 10 12 19 4.1% 4.7% 4.8% 4.1% 4.8% 4.5% 7.1% 6.8% 24 47 10.7% 19 10.9% 12.4% 36 13.6% Q2 FY22 H1 FY23 H1 FY22 Q2 FY23 59.0% 57.9% 59.4% 58.6% 220 158 103 133 % : Refers to % of Operating Revenue 7
Slide 9: Product Category Performance
Product Category Performance 7% 8% 5% 12% 14% 4% 9% 5% 8% 4% 8% 7% Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 53% 56% 54% 57% 23% 24% 22% 21% Product Wise Sales Contribution Qty Sales / Sales Realisation Q2 FY23 Q2 FY22 H1FY23 H1FY22 FY22 Apparel and Lifestyle 32.29 24.98 55.55 39.81 89.77 Accessories/Products
Slide 10: Channel wise Sales Performance
Channel wise Sales Performance Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 FY22 Retail 41% 38% 42% 38% 42% Non-Retail 33% 35% 36% 36% 36% Others 26% 27% 22% 27% 22% 9
Slide 11: EBO Network Update
EBO Network Update COCO/COF FOFO Particulars Total Nos. O Nos. Nos. As on 1 April 2022 25 331 356 Break up of EBOs • K-Lounge : 217 As on 30 June 2022 26 355 381 63 • Killer Brand EBOs : 175 As on 30 Sep 2022 29 390 419 Bihar Store Opening • Other Brand EBOs : 26 • Factory Outlet : 1 Under Developme
Slide 12: Killer EBO : Viviana Mall – Thane
Killer EBO : Viviana Mall – Thane
Slide 13: Select Recent EBO Openings
Orissa Assam Uttar Pradesh Haryana Select Recent EBO Openings Gujarat Bihar Jharkhand West Bengal Maharashtra Telangana
Slide 14: Q2 FY23 : Brand Promotion Campaign
Q2 FY23 : Brand Promotion Campaign
Slide 15: In-Stadium Branding - Cricket
• India v/s Australia Series • India v/s South Africa Series In-Stadium Branding - Cricket
Slide 16: Outdoor Marketing Campaign
Outdoor Marketing Campaign BEST Bus Airport Mumbai Metro Station
Slide 17: Print Media Advertisements
aor Media Asn | K-LOUNGE Ls tranchiseestcowalkiran com
Slide 18: KKCL : Corporate Overview
as rede KKCL : Corporate Overview
Slide 19: 40+ years of Success filled Journey
40+ years of Success filled Journey ▪ Amongst the few Indian Denim brands to have successfully contributed to the evolving Denim culture in India : 40+ years of tasting success and continuing ▪ Integrated Operations & amongst the few players to be present across Value Chain : Designing - Manufacturi
Slide 20: Focused Founding Team
Focused Founding Team 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 Operations • Integriti B
Slide 21: Independent Directors
Independent Directors – Chairman and Managing Director of Unichem Laboratories Limited and brings onboard rich experience in marketing, research and production Dr. Prakash A. Mody – A doctorate in Organic Chemistry from University of Mumbai and pursued Marketing Management from Jamnalal Bajaj Instit
Slide 22: KKCL : A New Rising focused towards Growth
KKCL : A New Rising focused towards Growth Induction of experienced Professional Team across key market Functions coupled with strong business acumen of the founding team across the supply chain A New Rising Expansion of Product category to diversify revenue and providing customers an increased
Slide 23: Killer & easies Trade Show : Connecting with Channel Partners
Killer & easies Trade Show : August 2022 Trade Show : Connecting with Channel Partners
Slide 24: KKCL : Riding on Key Success Factors
KKCL : Riding on Key Success Factors Established Brand Portfolio 1 Manufacturing Focus Excellence 2 3 4 Widespread Distribution Financial Growth Sustainability 23
Slide 25: Established Brand Portfolio
1 Established Brand Portfolio Key Mantra - Branding drives Aspiration, commands Premium and sense of Stickiness
Slide 26: Established Brand Portfolio
Established Brand Portfolio “ ” L I K E D by targeted consumers 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 Denims: Label Tagging an important tool 5 Focused Women
Slide 27: Killer : Premium Casuals
Killer : Premium Casuals Flagship brand “Killer” imbibes in it the cool confidence of today’s youth and redefines denims, giving a bold character to them
Slide 28: Lawman : Fashion Capital
Lawman : Fashion Capital A glamorous, lifestyle brand, “LawmanPg3” specialises in trendsetting denim and partywear for young adults
Slide 29: Integriti : Youth Culture
Integriti : Youth Culture Reflecting and resonating the ambition and energy of youth, “Integriti” offers a credible, trusted and value proposition across work and casual wear
Slide 30: Easies : Contemporary Semi Formal Wear
Easies : Contemporary Semi Formal Wear A blend of classic and contemporary preferences, “Easies” is reshaping corporate fashion in India through its range of semi-formal menswear, made from the most premium range of fabric and linen
Slide 31: Women Wear : New Avenues
Women Wear : New Avenues “Desi Belle” is an Indo-Western womenswear that exists at the confluence of modern style and desi touch, catering to the contemporary woman
Slide 32: Wide Product Portfolio capitalizing Brands
Wide Product Portfolio capitalizing Brands Bottom Wear Jeans Shorts Trousers + Shirts T-Shirts ▪ Focused approach to continue to expand portfolio with an experimental approach Top Wear Jackets Accessories Business through Brand Extension : Opportunistic Play capitalizing on Brand Recognition & Ent
Slide 33: New Category Focus: Winterwear
New Category Focus: Winterwear
Slide 34: New Category Focus : Jackets & Blazers
New Category Focus : Jackets & Blazers
Slide 35: Addictions : Accessories Play as a Brand Extension
Addictions : Accessories Play as a Brand Extension The accessories wing of KKCL, “Addictions” offers lifestyle products such as deodorants, watches, wallets, belts and innerwear
Slide 36: Manufacturing Excellence
2 Manufacturing Excellence Market dynamics paves the way for Creator’s market – Manufacturing back in focus
Slide 37: Manufacturing Excellence
Manufacturing Excellence Tech-led manufacturing capabilities : State-of-the-art technology in manufacturing denims with units equipped with advanced machinery, helping us offer the best Designing – Procurement – Washing – Stitching – Labelling – Packing – Retail products to our customers Best in
Slide 38: Coupled with Environment Friendly Practices
Coupled with Environment Friendly Practices Use of High end Machines with an 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 environment friendl
Slide 39: Widespread Distribution
3 Widespread Distribution Brand recognition driving market “Pull Strategy” – playing it with a flexible profit oriented & balanced market strategy
Slide 40: Strategic Widespread Presence
Strategic Widespread Presence Exclusive Retail Store Count MBO Presence Widespread MBO presence through traditional 419 EBOs Distributional Channel : 80+ Distributors covering ~4,000+ Coverage Across India through Multiple Channels MBOs across India * As on September 30,2022 Large Format Stores Sele
Slide 41: Financial Sustainability
4 Financial Sustainability Balanced Profitability driven Business Growth
Slide 42: Company Driven by Inherent Financial Acumen
Company Driven by Inherent Financial Acumen ▪ Simplicity in Business working : Focused Balanced Approach striving towards Profitability driven business growth ▪ Success Driven Philosophy with a Cautious Approach : Follow prototype model with an objective to make “Small to Big” ▪ Financial Sustainabi
Slide 43: Profit & Loss
Profit & Loss Particulars (₹ In Cr) FY18 FY19 FY20 FY21 FY22 Revenue from Operations 462 502 530 303 608 COGS 240 241 262 180 359 Employee Expenses 65 75 71 53 80 Administrative & Other Expenses 31 33 33 33 35 Selling & Distribution Expenses 27 41 68 19 34 EBIDTA 98 112 95 19 100 EBIDTA Margin 21% 2
Slide 44: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ Cr) Particulars (₹ Cr) Mar 2022 Mar 2021 Mar 2022 Mar 2021 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, plant and equipment 84.4 80.8 Equity Share Capital 61.6 12.3 Capital work-in-progress 0.9 1.0 Other Equity 416.6 420.6 Inv
Slide 45: Key Financial Indicators
Key Financial Indicators Standalone basis Operating Income ₹ Cr EBIDTA ₹ Cr PAT ₹ Cr Net Working Capital Days In Days 200 150 100 175 157 146 138 103 50 - FY18 FY19 FY20 FY21 FY22 Net Working Capital Days 44
Slide 46: Channel wise Sales Performance
Channel wise Sales Performance FY22 FY21 FY20 FY19 FY18 Retail 42% 39% 43% 41% 34% Non-Retail 36% 36% 42% 42% 51% Others 22% 25% 15% 17% 15% 45
Slide 47: Product Category Sales Performance
Product Category Sales Performance 11% 8% 7% 13% 19% 5% 5% 5% 6% 5% 10% 5% 9% 8% FY22 6% FY21 52% FY20 FY19 17% FY18 56% 57% 17% 61% 18% 65% 18% 19% Product Wise Sales Contribution Qty Sales / Sales Realisation FY22 FY21 FY20 FY19 FY18 Apparel and Lifestyle 89.77 57.77 82.95 84.00 58.69 Accessories/
Slide 48: Consistent Performance since Listing
Consistent Performance since Listing
Slide 49: Shareholders Information - Consistent Performance since Listing
Shareholders Information - Consistent Performance since Listing Consistently Rewarding Shareholders – Dividend Payout Particulars – Current Market Information 40 Cumulatively Dividend per share payout CMP * (₹) : 485.00 30 20 ₹ 343.50* since listing IPO Price : ₹ 260 per share + Bonus issue in the r
Slide 50: Thank You
Thank You Kewal Kiran Clothing Limited 460/7, I.B. Patel Road, Kewal Kiran Estate, Goregaon (East), Mumbai 400063 India’s Fashion House Investor Relations Advisor Marathon Capital Advisory Private Limited Rahul Porwal (99675 76900 / rahul@marathoncapital.in) Bhavin Ranawat (9819345619 / bhavin@marat