Slide 1: IRIS Clothings Limited Investor Presentation October 2024
IRIS Clothings Limited Investor Presentation October 2024
Slide 2: Q2 & H1FY25 Financial Highlights & Business Updates
Q2 & H1FY25 Financial Highlights & Business Updates
Slide 3: Well Established Brand with PAN India Presence
1 Brand 173 Distributors Well Established B r a n d with P r e s e n t in 33,000 Pieces P A N India 26 S ta tes Installed Capacity/Day Presence… 10 Units 1,400+ M a n u f a c t u r i n g (8) D i s p a t c h (2) Employees Opened …G oi ng Di re ct to C o n s u m e r (D2C) 7 EBOs in E a s t I ndia
Slide 4: P&L Statement
P&L Statement Particulars (in ₹ Mn) Q2FY25 Q2FY24 YoY (%) H1FY25 H1FY24 YoY (%) Financial Update Total Income 413.9 321.9 28.6% 728.6 563.7 29.2% Total income rose to ₹414 Mn a growth of 28.6% YoY; Consolidated revenue during H1FY25 stood at ₹729 Mn a Expenses 333.3 246.3 35.3% 588.3 424.6 38.6% g
Slide 5: Vision 2030
VISION 2030 Biggest 500+ 20,000+ Kidswear Brand Established Reta i l T o u c h p o i n t s B r a n d O u tl ets i n In d i a
Slide 6: Renowned Brand in Kids Apparel
R e n o w n e d B r a n d in K i d s A p p a r e l Establishment Phase Well Established Listed Vision 2030 G oing Kids Apparel Brand Direct to C o n s u m e r 2004-2013 2014-2023 2024 & Beyond M a n u f a c t u r i n g | R et ail B 2 B M a n u f a c t u r i n g | R et ail B 2 B | B u s i n e s s M o
Slide 7: Establishment Phase 2004–2013
Establishment Phase 2004–2013 Manufacturer for Kids Comfort Clothing
Slide 8: Started as Kids Clothing Manufacturer, Grew Through Focus on Quality
S ta r te d a s K i d s C l o t h i n g Manufacturer, G r o w i n g T h r o u g h F o c u s o n Quality M a n u f a c t u r i n g Facilities Market Reach Product Branding Strategy A d d e d 2 0 dis t r ibut or s in t h e first M a n u f a c t u r i n g facility in H o w r a h S t a r t e d s e l l i
Slide 9: Growth Phase: 2014–2023
G r o w t h P h a s e : 2014–2023 Well E s t a b l i s h e d Listed Kids Apparel Brand with C o n s u m e r S ales of ₹250+ crores
Slide 10: Manufacturing Facilities Expanded to 10 Units
M a n u f a c t u r i n g Facilities E x p a n d e d to 10 Units Manufacturing excellence has been one of o u r b i g g e s t s t r e n g t h s Total Installed C a p a c i t y Area of Installed C a pa ci ty Manufacturing (8) Dispatch (2) 33,000 1,25,000 Pieces/Day sq. ft. Fore shore R oad, H o w r a
Slide 11: Product Portfolio Enhanced Across Categories
P r o d u c t Portfolio E n h a n c e d A c r o s s C a t e g o r i e s Brand offers a w i d e r a n g e of a p p a r e l s for infants, toddlers, a n d junior b o y s a n d girls th at suit b o t h their i n d o or a n d o u t d o or req u iremen ts. K i d s (0-5 years) Girls (6-16 years) B o y s (
Slide 12: Collaboration with Disney Certifies Process & Stringent Quality Control
Collaboration with D i s n e y Certifies Process & Stringent Quality Control… L e v e r a g i n g O p p o r t u n i t ie s t h r o u g h D i s n e y Allian ce & In-h o u s e Exp ertise Licensing A g r e e m e n t with Disney F A M A A p p r o v a l for M a n u f a c t u r i n g S t r a t e g ic P a r
Slide 13: Disney Licence Helps in Premium Market Positioning
…Helps in P r e m i u m Market P o s itio n in g P r e m i u m P r i c i n g C a p a b i l i t y : E x c l u s i v e n a t u r e of t h e l i c e n s i n g a g r e e m e n t allows c u s t o m e r s to p a y p r e m i u m p rice for p r o d u c t s c o n t r i b u t i n g to h i g h e r profit m a r
Slide 14: Strengthen Distribution Network
S t r e n g t h e n Distribution N e tw o r k Domestic 173 3 Distributors Trend 5 Distributors 7 230 1 17 Exports 12 17 6 1 170 4 1 4 2 9 23 100 Portugal C o u n t ri e s 5 Nepal 33 Mozambique 5 S a u d i A ra b ia 10 2 Africa 6 UAE 2004 2014 2024 2030E 7 M id d le E a s t 3 •Exports under Brand % C
Slide 15: Financial Growth in-line with Business Growth
Financial G r o w t h in-line with B u s i n e s s G r o w t h R e v e n u e f r o m O p e r a ti o ns (`Crores) Pro fit After Tax (`Crores) C A G R 19.4% C A G R 37.4% 121.9 12.2 10.1 113.0 111.5 8.3 87.9 6.5 62.0 5.1 60.7 52.9 3.3 3.9 46.7 1.6 36.4 29.8 24.7 0.7 0.6 0.2 FY14 FY15 FY16 FY17 FY18 FY1
Slide 16: 2024 & Beyond: Go Direct to Consumer (D2C)
2024 & B e y o n d G o i n g D i r e c t to C o n s u m e r ( D2C ) V I S I O N 20, 000+ B i gges t Kidswear Brand 500+ Outlets Retail T o u c h p o i n t s in India
Slide 17: DOREME: Retail Strategy
D O R E M E : Retail S t r a t e g y E B O s — Ret ai l B u s i n e s s Model Store O p e n i n g P l a n E B O Expansion Plan O w n e r s h i p Model E B O s in Clusters 100 (COCO & FOCO) S t o r e A d d i t i on 100 T otal Stor e s C lus t er m o d e l E B O s in C o m p a n y O w n e d 100 s t r
Slide 18: EBO Store Design
E B O Store D e s i g n G o o d experience in existing store, Standardised c e l e b r a t i n g o n e year. store d e s i g n F o r the past two years, there h a s b e e n a f o c u s e d effort o n e x p a n d i n g t h e retail footprint. Better layout This o n g o i n g retail identification roll
Slide 19: Enhanced Merchandise in Store
E n h a n c e d M e r c h a n d i s e in Store Infantwear c a t e g o ry S p ortswear c a t e g or y Disney products range s h a r e to i n c r e a s e s h a r e to g r o w to e x p a n d I R I S h a s recently l a u n c h e d T h e n e w l y i n t r o d u c e d s por t s w ear line C a t e g o r y
Slide 20: Expansion of Manufacturing Capacity
E x p a n s i o n of M a n u f a c t u r i n g C a p a c i t y T h r o u g h B r o w n fi e l d , Greenfield a n d O E M s Brownfield Expansion Greenfield Expansion OEMs F o c u s i n g o n d e b o t t l e n e c k i n g in P l a n n e d g r o w t h of Retail B 2 B b u s i n e s s O u t s o u r c e d m
Slide 21: Store Economics
Store E c o n o m i c s Average Pay b ack Period Sto re Si ze 15 – 18 m o n t h s 7 5 0 – 1,000 sq. ft. Average I n v e s t m e n t s for 1 E B O Sto re Average A v e r a g e Yearly (Incl. Inventory) Bill Va l u e R e v e n u e P e r Sto re ₹30 L a k h s ₹1,500/- ₹ 75 L a k h s – ₹1 C r o r e P r o
Slide 22: Driven by Excellence
Driven by Excellence Success Propelled by Leadership & Management Iri s C l o t h i n g s L i m i t e d w a s s t e e r e d to s u cces s b y a proficient m a n a g e m e n t team, l e d b y f o u n d e r a n d v i s i o n a ry S a n t o s h L a d h a . Powered b y his expertise a n d d y n ami c a p
Slide 23: Ratio Analysis
Ratio Analysis E B I T D A M a r g i n (in %) W o r k i n g Capital Days R e t u r n o n A s s e t s (in %) 236.3 22.8 10.8 192.0 21.7 167.2 9.2 19.5 19.3 17.2 152.9 8.6 7.6 131.9 4.8 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 N e t P r o fi t M a r g i n (in %) R e t
Slide 24: Annexures
Annexures
Slide 25: Garment Industry — Opportunities Ahead
G a r m e n t I n d u s t r y — O p p o rtu n itie s A h e a d Textile & A p p a r e l M a r k e t to p i c k u p p o s t hit f r o m m a c r o - h e a d w i n d s D o m e s t i c T e x t i l e & A p p a r e l M a r k e t ($ B illion) I n d i a n A p p a r e l R e t a i l I n d u s t r y F o r e c a
Slide 26: Case Study
Case Study P o w e r of B r a n d & Retail B 2 C B u s i n e s s ( C a s e S t u d y ) O p p o r t u n i t y t o g r o w a s k i d s b r a n d i n I n d i a v/s Gl o b a l l y Global Carter's •K i d s b r a n d d o i n g w ell Transformed from •H a v e e s t a b l i s h e d t r a c k r e c o r d s C
Slide 27: Thank You!
T h a n k You! F o r further details pl e a s e c o n t a c t +91-80807 96083 Abhishek Bhatt abhishek.bhatt3@in.ey.com Vikash Verma vikash.verma1@in.ey.com Ernst & Y o u n g L L P REGISTERED OFFICE 103/24/1, F o r e s h o r e R o a d , H o w r a h 711 102 www.i ri s cl o th i n gs .i n CIN: L18109WB