Monte Carlo Fashions Ltd. · NSE:MONTECARLO
Monte Carlo Fashions — Q2 FY20 Earnings Presentation
30 slides from Monte Carlo Fashions's earnings presentation, Nov 14, 2019
Slide 1: Q2FY20 Investor Presentation cover letter
MONTE CARLO 4 It’s the way you make me feel eS ee TAN - JLDM04272C 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 : 91-161-5048650 November 14, 2019 National St
Slide 2: Q2 FY20 Investor Presentation
MONTE CARLO ax It’s the way you make me feel MONTE CARLO aX It's the way you make me feel MONTE CARLO FASHIONS LIMITED Q2 FY20 INVESTOR PRESENTATION
Slide 3: Discussion Summary
> ae wi : DISCUSSION SUMMARY It’s the way | ; | as ee <i> £ > ~~ > you make me fee =" rf 01 Company Overview 04 es 7 : . | j ~ 02 #£Quarterly Update 08 03. Monte Carlo Advantage 14 04 #£Annexure 24 MONTE CARLO aN It's the way you make me feel
Slide 4: Company Overview
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Slide 5: About Us
MONTE CARLO ax ABOUT US It’s the way you make me feel STRONG WIDE PEDIGREE REACH Leading Winter wear Brand, ¢ Presence across India launched in 1984 and part of through a judicious mix of Oswal Woollen Mills Ltd EBOs, MBOs and Shop in Recognised as “Superbrand” shop ,distributors and for woollen kni
Slide 6: Diversified Product Portfolio
DIVERSIFIED PRODUCT PORTFOLIO MONTE CARLO a Tax Cotton sallle gal 4 Sweaters, Pullovers Mink Monte Carlo thermals, Shirts, trousers, blankets, Mid Premium/ woollen accessories t-shirts, track-suits and bed sheets - Premium (caps, mufflers, jackets and quilts shawls,stoles) Luxuria - Cash wool sweate
Slide 7: What Is Our Business Model
WHAT IS OUR BUSINESS MODEL MONTE CARLO a May Aug January Feb -March April Till July Onwards BUSINESS CYCLE FOR WINTER SEASON SALES * Product development * Commissioned agents display the sat hedealereand * Production of pre- * Dispatching of winter & Sampling process samples to dealers and distribut
Slide 8: Distribution channel models
MONTE CARLO ax It’s the way you make me feel MBO and = (@) === (6) = Shop In Shop EBO-COCO EBO -FOFO Distributors MINIMUM GOODS RETURNED Distribution Pre-Booking of SOR - Sale or Pre-Booking of Inventory owned Pre-Booking of Sale Model orders Return / Outright orders Outright b com an orders Outrigh
Slide 9: Q2 & H1 FY20 Highlights
Q2 & H1FY20 HIGHLIGHTS eS S - ' GULP. GCN ALN OdNgedSENGS4 fOr
Slide 10: Q2 & H1 FY20: Financial Highlights
Q2 & H1 FY20: FINANCIAL HIGHLIGHTS Sune In Rs Mn Q2 FY20 REVENUES EBIDTA & EBIDTA MARGIN% PAT, CASH PAT & PAT MARGIN % Lee ! —— — _] . 9 !I Secret ne ee si 1,258 11.5% Lo e7e ! 116 4.40% 202 ! 144 68 a 68 oeee Seat | Q2 FY19 Oo bro ! Q2 FY19 Q2 FY 20 ! mmm EBIDTA —m— EBIDTA% Me PAT «6mm Cash PAT) «s
Slide 11: Revenue Breakup - Channel Wise
MONTE CARLO ax It’s the way you make me feel ala REVENUE BREAKUP — CHANNEL WISE (Including Online Sales) Q2 FY19: Rs 1,346.50 Mn Q2 FY20: Rs 1,511.03 Mn Q2 FY19: Rs 1,346.50 Mn Q2 FY20: Rs 1,511.03 Mn 5, 4% 3% 4% 55% 7%, 5% 2% 53% 4% 7% 11% 25% 24% @ North East Central South West Others Including On
Slide 12: Q2 FY20: Revenue Analysis
Q2 FY20: REVENUE ANALYSIS MONTE CARLO as SEGMENT GROWTH TCM ie FY19 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Total Revenues* 5,/11 6,715 1,346.50 1,511.03 1,887.59 2,080.23 Woollen Segment 26.30% 25.50% 23.02% 22.12% 13.56% 12.81% Cotton Segment 61.00% 60.10% 60.49% 54.32% 68.31% 62.38% Home Furnishings 7.60
Slide 13: Q2 FY20: Profit and Loss Statement
Q2 FY20: PROFIT AND LOSS STATEMENT n Rs Mn) Particulars (In Q2 FY20 Q2 FY19 YoY% H1 FY20 H1 FY19 YoY% FY19 Revenue From Operations 1,528 1,258 21% 2,127 1,850 15% 6,564 Material Cost 720 588 23% 915 779 17% 3,444 Gross Margin 808 670 20.6% 1,212 1,071 13.1% 3,120 Gross Margin % 53% 53% -0.8% 57% 58%
Slide 14: Balance Sheet Highlight
BALANCE SHEET HIGHLIGHT Particulars (Rs Million) Sep p--19 Mar--19 Mar Particulars (Rs Million) Sep p--19 Mar--19 Mar Share Capital 207 207 Non Current Assets Property ,Plant and Equipment 1,597 1,486 Other Equity 4,630 4,630 Right of use of assets 676 - Total Shareholder's Funds 4,837 4,837 Capital
Slide 15: Monte Carlo Advantage
03 MONTE CARLO ADVANTAGE
Slide 16: Strong Brand Equity
STRONG BRAND EQUITY … v “Monte Carlo”, has Strong Brand Equity v Being a Premium Brand, Monte Carlo enjoys Pricing Power & Customer Loyalty v Regular Investment in Brand Building & Marketing Initiatives ASPIRE TO SERVICE END TO END WARDROBE REQUIREMENTS OF INDIAN CONSUMERS BY FURTHER INTRODUCING EXC
Slide 17: Having Pan India Presence
… HAVING PAN INDIA PRESENCE … DISTRIBUTION NETWORK J&K 2 STORE NETWORK Ladakh Type of Store FY18 FY19 Q1 FY20 Q2 FY20 1 EBO – COCO 21 27 30 34 Chandigarh 4 EBO – FOFO 214 229 232 236 Punjab 42 HP 10 Uttarakhand 9 MBO and 2,500+ 2,500+ 2500+ 2500+ Haryana 26 Distributors Delhi 18 UP Nepal 2 NCS 283 3
Slide 18: Regular Technology Upgradation
… & REGULAR TECHNOLOGY UPGRADATION Whole Garment Machine Cotton Woollen • 30 professionals closely tracking the trending global fashion • To meet the standards of technology upgradation and modernisation, Company has installed the automatic whole-garment state-of-art manufacturing facility, at the e
Slide 19: Diversified Portfolio
DIVERSIFIED PORTFOLIO SEGMENT GROWTH COTTON SEGMENT BIFURCATION- H1 FY20 5% 5.1% 5.3% 4.71% 10% 7.6% 9.1% 20% 20.10% 38% 5% 58% 61.0% 60.1% 4% 62.38% 11% 23% 28% 26.3% 25.5% 12.81% 2017 2018 2019 H1 FY20 Tshirt & Shirt Home Furnishing Denim & Trousers Woollen Cotton Home Furnishing Kids Cloak & Deck
Slide 20: Led by Experienced Management
LED BY EXPERIENCED MANAGEMENT … Sh. Jawahar Lal Sh. Sandeep Jain Sh. Rishabh Oswal Sh. Dinesh Gogna (Chairman & MD) (Executive Director) (Executive Director) (Director) • Sh. Jawahar Lal has More • Sh. Sandeep Jain is has more • Rishabh Oswal is part of • Sh. Dinesh Gogna has more than 50 years of e
Slide 21: Resulting in Strong Financials
… RESULTING IN STRONG FINANCIALS HEALTHY v Ability to sustain Robust growth without any major capex; Return Ratios set to improve RETURN RATIOS STABLE v Stable core working capital whilst achieving 14% WORKING growth in revenues for FY19 CAPITAL CYCLE STRONG BALANCE v Cash balance of Rs 1,435 Mn as
Slide 22: Consistent Reward to Shareholders
Consistent Reward to Shareholders Strong Track Record and Proven Expertise to Generate Healthy, Predictable and Sustainable Returns (Rs. Mn) 550 261 Dividend Buy Back 217 217 217 2015 2016 2017 2018 2019 • Company has cumulatively paid(From FY15 - FY18) Rs. 912 Mn as a dividend to shareholders • Com
Slide 23: Financial Performance
FINANCIAL PERFORMANCE CONSISTENT REVENUES EBITDA & EBITDA MARGIN 6,564 23.7% 21.7% 5,680 5,760 19.7% 5,200 5,231 15.7% 14.8% 1,230 1,233 1,132 1,030 776 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 EBITDA (mn) EBITDA Margin % PAT & PAT MARGIN LEVERAGE & RETURN RATIOS 0.31 11.8% 0.22 11.5% 10.4%
Slide 24: Future Strategy
FUTURE STRATEGY PRODUCT MIX § Cotton share maintained over 60% of total FY19 revenue reflecting shift towards Cotton from Woollen MOVING segment TOWARD § Textile and Kids segment delivered robust growth, contributing higher revenue to the overall business COTTON FOCUS ON • Started sales through SIS
Slide 25: Annexure
05 ANNEXURE
Slide 26: Branding Initiatives
BRANDING INITIATIVES Proven track record in building brands in India Clothing Partner for reality Shows like Big boss, Khatro ke Khiladi Clothing partner for the blockbuster Bollywood films Saaho, Barfi, Mary Kom, Bhaag Milka Bhaag, and Student of the Year Other Strategic Tie-ups Airline Tie-ups The
Slide 27: Brand Ambassador
BRAND AMBASSADOR • Celebrate life by going fit- Andre Russell way!! • Rock It – India’s premium athleisure brand starts the season in pomp as it ropes in Mr. Russell as the brand ambassador. TIE-UPS WITH ONLINE PLATFORMS 26
Slide 28: Shareholding Structure
SHAREHOLDING STRUCTURE Shareholding Pattern * – September 2019 Key Institutional Investors * – September 192019 % Holding Kanchi Investments Ltd (Samara Capital) 9.40% 27.5% Goldman Sachs India 3.12% 4.6% 67.9% Promoter Institutions Public * Post Share Buyback Note: The Company issued Public Announc
Slide 29: CSR Activities
CSR ACTIVITIES WE BELIEVE IN “FULFILLING ASPIRATIONS AND TRANSFORMING LIVES “ The organization has worked towards the betterment of various schools & institution at Education Dhandari Kalan Government Primary school , Govt School (Magra Lulu),Brailee Bhawan Ludhiana by providing them operational & F
Slide 30: Thank You
THANK YOU Mr. Dinesh Gogna Director Ms. Manasi Bodas Email: gogna@owmnahar.com Consultant Mr. Vikash Verma Director Email: monte.carlo@dickensonworld.com Disclaimer: This presentation and the following discussion may contain “forward looking statements” by Monte Carlo Fashions Ltd (“MCFL” or the Com