Indian Terrain Fashions Limited · NSE:INDTERRAIN
Indian Terrain Fashions — Q4 FY2020 Earnings Presentation
39 slides from Indian Terrain Fashions's earnings presentation, June 2020
Slide 1: Q4 & FY20 Performance Highlights
Q4&FY20 PERFORMANCE HIGHLIGHTS JUNE 2020
Slide 2: Safe Harbor
SAFE HARBOR The information contained in this presentation is only current as of its date. Please note that the past performance of the company is not and should not be considered as, indicative of future results. This presentation may contain certain statements of future expectations and other forw
Slide 3: Table of Contents
TABLE OF CONTENTS COVID-19 Impact Result Highlights Exclusive Stores Financial Statements Outlook Annexure
Slide 4: COVID-19 Impact & Result Highlights
COVID-19 IMPACT & RESULT HIGHLIGHTS
Slide 5: COVID Impact on Business Operations and Industry: Industry Impact
COVID IMPACT ON BUSINESS OPERATIONS AND INDUSTRY INDUSTRY IMPACT As per Clothing Manufacturing Associations of India (CMAI) due to the national lockdown from 24th March, 2020 the expected loss in India’s apparel industry is approximated to be ~ Rs 1,000bn Revenues had been impacted from the earl
Slide 6: COVID Impact on Business Operations: Company Impact and Post COVID Measures
COVID IMPACT ON BUSINESS OPERATIONS AND INDUSTRY COMPANY IMPACT Due to the national lockdown imposed, business operations began to slowdown from the beginning of March month owing to subdued demand thus impacting on revenues and profits In reference to the above, Decline in the financials was wi
Slide 7: Quarterly - Result Highlights
QUARTERLY - RESULT HIGHLIGHTS Sales (Rs. Cr) Gross Margins (%) Gross EBITDA (Rs. Cr) PAT (Rs. Cr) 3.8 83.3 -11.1 26.9 39.7 15.1 78.0 4.5 42.6 0.1 92.2 13.0 15.0 -18.7 116.2 37.0 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Sales (Rs.
Slide 8: Exclusive Store Count and Channel Revenues
EXCLUSIVE STORE COUNT Channel Revenues (Rs .cr) 62 47 47 26 Consumer sentiment that was improving in the later part of Q3 and 6 3 4 2 post EOSS took a pause immediately post Retail (EBO+LFO) Wholesale e-retail Others Q4-FY19 Q4-FY20 A big impact on MBO Distribution Channel and LFO Dept Stores sinc
Slide 9: Augmenting Revenues with New Strategies
AUGMENTING REVENUES WITH NEW STRATEGIES Continued Focus on Small Town Retail Expansion through franchisee model Planning to expand Boyswear presence to more stores Distribution Channel Focus on Tertiary Sales and Key Doors. Focus on down stocking to reduce inventory to optimal levels Departm
Slide 10: Q4 & FY20 Snapshot
Q4 & FY20 SNAPSHOT SUMMARY Q4FY20 Particulars (Rs. Crs) Without IND AS 116 Impact With IND AS 116 Net Revenue 118.74 - 118.74 EBITDA -18.69 5.88 -12.81 EBITDA Margin % -15.74 -10.79 Depreciation 1.65 4.83 6.48 Interest Cost 2.85 2.68 5.53 PBT before exceptions -21.49 -1.64 -23.13 PBT Margin % -18.10
Slide 11: Profit & Loss Highlights
PROFIT & LOSS HIGHLIGHTS Rs. Crs. Q4FY20 Q4FY19 Change (%) FY20 FY19 Change (%) Revenues 77.98 118.74 -34.33 369.66 422.37 -12.48 Cost of Materials 2.04 0.42 1.90 1.85 Purchase of Finished Goods 59.18 86.30 238.62 239.46 Change in Inventories -4.50 -16.64 -8.38 10.68 Garment Processing Costs 0.27 0.
Slide 12: Indian Terrain Stores
4 INDIAN TERRAIN STORES
Slide 13: Exclusive Stores
EXCLUSIVE STORES Opening as on 01st Jan 20 Additions Closure / Converted Closing as on 31st Mar 20 EAST 1 1 24 24 NORTH 3 2 44 43 WEST 10 30 29 SOUTH 31 102 100 OUT OF INDIA 0 0 1 1 20 STORE COUNT 11 COCO COFO FOFO EFO 93 77 *Store Count - 201 under direct management + 5 Stores under distributor man
Slide 14: Distribution Network
DISTRIBUTION NETWORK 201 Exclusive Doors (inclusive of 20 1400+ Doors under Multi Factory Outlets Branded Outlets +485 Doors in 8+ Departmental E-commerce Stores Partners - MBO - LFO - EBO 14
Slide 15: At Indian Terrain, we love spending every day creating clothing
“ At Indian Terrain, we love spending every day in creating clothing of elegant style and remarkable comfort that “ 15
Slide 16: Direct to Consumer Focus
DIRECT TO CONSUMER FOCUS.. ANAND - GUJARAT TIRUPATI 16
Slide 17: Prayagraj, Aria Mall - Gurgaon
PRAYAGRAJ ARIA MALL - GURGAON 17
Slide 18: Financial Statements
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Slide 19: Profit & Loss Statement - Quarterly
PROFIT & LOSS STATEMENT - QUARTERLY Standalone Profit & Loss (INR cr) Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Income from Operations 107.9 82.2 125.9 95.6 118.7 83.3 116.2 92.2 78.0 Other Income 0.8 0.8 0.5 0.5 1.3 0.7 0.8 0.7 1.7 Total Income 108.8 83.0 126.3 96.0 120.0 84.0
Slide 20: Profit & Loss Statement - Annually
PROFIT & LOSS STATEMENT - ANNUALLY Standalone Profit & Loss (INR cr) FY14 FY15 FY16 FY17 FY18 FY19 FY20 Income from Operations 232.0 290.0 325.0 325.9 401.5 422.4 369.7 Other Income 0.3 0.8 5.2 5.3 2.5 3.0 3.9 Total Income 232.3 290.8 330.2 331.2 404.0 425.4 373.5 Operating Expenses 207.9 256.9 283.
Slide 21: Balance Sheet & Key Ratios
BALANCE SHEET & KEY RATIOS Standalone Balance Sheet (INR cr) FY14 FY15 FY16 FY17 FY18 FY19 FY20 Share capital 5.7 7.2 7.3 7.6 7.6 7.6 7.6 Reserves and Surplus 30.5 119.2 146.2 171.3 196.4 222.1 208.5 Non-current liabilities 21.3 7.9 18.4 13.4 20.3 23.2 90.0 Current liabilities 83.2 81.3 90.9 108.6 1
Slide 22: Industry Snapshot
INDUSTRY SNAPSHOT
Slide 23: E-com will play a big role in the revival of the economy
E-com will play a big role in the revival of the economy India’s retail sector at a glance Source : ET Research 23
Slide 24: E-com will play a big role in the revival of the economy
E-com will play a big role in the revival of the economy Preferred e-commerce methods India’s E-com market -2020 Source : ET Research, JPMorgan Insights 24
Slide 25: Contribution by Value in % - Sales via E-com portals
Contribution by Value in % - Sales via E-com portals Mobile (Smart Phone) 48% Fashion (Apparel,footware,accessories,luagge) 16% FMCG 11% Large Appliances – TV,WM, Fridges etc) 11% Accessories– 6% Mobiles/Electronics Electronics – Printers, Routers, Laptops 5% Home Décor – Kitchen Utilities & Others
Slide 26: Consumption class will rise to 53% of total households in 2025
Consumption class will rise to 53% of total households in 2025 Nos. of Households(mn) by Income Class Source : NCAER.Mckinsey 26
Slide 27: Consumer Expenditure in India across city types
By 2030 45% of Urban cities with 20% developed rural can unlock consumption potential in India Consumer Expenditure in India across city types 27 Source : PRICE Proj based on ICE 360 degrees survey (2014, 2016 .2018)
Slide 28: Branded apparel market growing faster than overall market
Branded apparel market growing faster than overall market (US$ bn) 2015 (US$ bn) 2020 (US$ bn) CAGR 2011 34 66 7% 10% 14 13% 14% 41% 19 2015 29 71 47% 21 2021e 34 66 33% 34% 15 0% 20% 40% 60% 80% 100% 10 Branded Non Branded Men Women Kids Sports/Others Men Women Kids Sports/Others Source : UNESCO, C
Slide 29: Forecast Indicate Growth In Kids Apparels Market
Forecast Indicate Growth In Kids Apparels Market Segment-wise analysis Breakup of Fashion market (current vs future) Current Source : Technopak Analysis Future 21% 22% 42% 40% 37% 38% Men Women Kids Men Women Kids Category growth in Boyswear Category growth in Girlswear (in ₹ crore) (in ₹ crore) 108
Slide 30: Outlook
OUTLOOK
Slide 31: Fiscal 2021 Outlook
FISCAL 2021 OUTLOOK OVERALL – Q1 bearing the full Brunt of the Lockdown (likely 80-85% below LY) Most Malls, Stores, LFO’s and Distribution only saw about 20 -25 days of Trading and that too with lots of restrictions and regulations of timings. Consumer sentiment is deeply hit for non essentia
Slide 32: Fiscal 2021 Outlook
FISCAL 2021 OUTLOOK Even in this Scenario we are changing the focus of the business model to drive the following areas – PRODUCT - Introduce a Sharper Value Line for Smaller Towns from AW20 Hasten the Specific Channel – Product Strategy for Customer acquisition Increased push on Boyswear R
Slide 33: Annexure
ANNEXURE
Slide 34: Wide Range of Collection
WIDE RANGE OF COLLECTION 4 INDIAN yp TERRAIN sk
Slide 35: New on Style - New Offers
NEW ON STYLE – NEW OFFERS MENS WEAR BOYS WEAR STAR WARS COLLECTION 35
Slide 36: ITFL's Apparel Kaleidoscope
ITFL’S APPAREL KALEIDOSCOPE MENS COLLECTION BOYS COLLECTION KHAKI COLLECTION ACCESSORIES 36
Slide 37: Brand Identity
BRAND IDENTITY OUR ORIGIN ICONIC PRODUCT BRAND PHILOSOPHY Madras - where we belong. Khaki. Made in India during “Real. Mature. Manly. Khaki.” The city that influenced global World War II and since then, an The four key words that capture fashion since 1718. integral part of American the brand essenc
Slide 38: Awards & Accolades
AWARDS & ACCOLADES Awarded as the best company in the Sustaining Award Category at TiE, 2017 Chennai Awarded as the Best Emerging Brand by Lulu Mall in 2016 Voted by Infashion as the “Most Admired Readymade Garment Manufacturer” in south India 2013 Ranked 11th in the list of “Most Trusted Apparel Br
Slide 39: Thank You
Let’s Connect Contact information Name : Mr. S.Ramachandran (CFO) Email : response.itfl@indianterrain.com Thank Corporate office You Indian Terrain Fashions Limited SDF IV & C2, 3rd Main Road, MEPZ – SEZ, Tambaram, Chennai-600 045, Tamil Nadu, India
Indian Terrain Fashions — Q4 FY2020 Earnings Presentation on 6ix