Credo Brands Marketing Limited · NSE:MUFTI
Credo Brands Marketing — Q3 FY25 Earnings Presentation
40 slides from Credo Brands Marketing's earnings presentation, Jan 31, 2025
Slide 1: Cover letter to BSE and NSE
------------------------------------------------------------------------------------------------------------------ January 31, 2025 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai – 400 001 Bandra Kurla Complex Ba
Slide 2: Credo Brands Marketing Limited Investor Presentation
Credo Brands Marketing Limited Investor Presentation January’25
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Credo Brands Marketing Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitatio
Slide 4: Q3 & 9M FY25 Financial Highlights
Q3 & 9M FY25 Financial Highlights
Slide 5: MD's Comments
MD’s Comments Commenting on the Result, Mr. Kamal Khushlani, Chairman & MD, Credo Brands Marketing Limited said “Our commitment to achieving profitable growth is demonstrated as we delivered a decent Q3 FY25, with revenue growing by 4% and gross margins expanding by 210 basis points to 61.9%, despit
Slide 6: Q3 FY25 Operational & Financial Performance
Q3 FY25 Operational & Financial Performance Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 155.5 crores Rs. 96.3 crores Rs. 47.6 crores Rs. 18.3 crores 4% 7% 12% 17% Sales Mix (Q3 FY25) Gross Profit Margin EBITDA Margin PAT Margin Product Mix (Q3 FY25) 4.4% 2.8% 9.4% 3.8% 61.9% 30.
Slide 7: 9M FY25 Operational & Financial Performance
9M FY25 Operational & Financial Performance Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 465.0 crores Rs. 271.2 crores Rs. 138.7 crores Rs. 54.6 crores 7% 8% 7% 5% Sales Mix (9M FY25) Gross Profit Margin EBITDA Margin PAT Margin Product Mix (9M FY25) 4.2% 7.5% 13.8% 58.3% 29.8% 1
Slide 8: Cash Flow & Balance Sheet
Cash Flow & Balance Sheet Working Capital (in Days) Cash Flow from Operations (Rs. Crs.) Inventory Debtors Creditors 166 193 156 146 140 112 118 77 69 66 56 64 23 21 28 Mar-24 Sep-24 Dec-24 Mar-24 Sep-24 Dec-24 Return on Capital Employed^ Return on Equity^ (RoCE) (RoE) Net Debt to Equity^ 20.4% 19.9
Slide 9: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (in Rs. Crore) Q3 FY25 Q3 FY24 YoY 9M FY25 9M FY24 YoY Total Revenue 155.5 150.1 4% 465.0 434.3 7% Cost of Materials Consumed 4.2 6.1 11.4 13.9 Purchase of Stock in Trade 50.6 52.6 164.9 175.3 Changes in Inventory 4.4 1.6 17.5 -6.6 Cost of Materials Consumed 59.
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In crore) Sep'24 Mar'24 Equity & Liabilities (Rs. in crore) Sep'24 Mar'24 Property Plant & Equipment 78.7 77.2 Share Capital 13.0 12.9 Capital Work in Progress 0.0 0.8 Other Equity 363.5 328.8 Right of Use Asset 209.3 201.5 Total Equity 376.5 341.7 Investment P
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. in crore) Sep'24 Sep'23 Net Profit Before Tax 48.4 48.3 Adjustments for: Non-Cash Items / Other Investment or Financial Items 42.9 39.1 Operating profit before working capital changes 91.3 87.4 Changes in working capital -14.9 -81.1 Cash generated fr
Slide 12: 'Mufti' – Redefining Menswear
‘Mufti’ – Redefining Menswear Creative, Bold and Expressive Clothing for the Contemporary Indian Man Diverse products range under the mid- Strong brand recall amongst customers with a Focus on expressiveness and boldness in our premium to premium price range of clothing database of over 2 million cu
Slide 13: Our Journey
Our Journey ✓ Reinvented the Brand Company listed ✓ Opened 200th Store Philosophy and launched new on BSE and NSE logo ✓ Awarded the title of Badshah- e-Hind - Esteemed King of ✓ Opened 300th Store India at GlamMe Awards ✓ Received Retailer of the Year ✓ Awarded Most Admired RMG (Fashion & Lifestyle
Slide 14: Reinvented Brand Identity
Reinvented Brand Identity THE STORY OF OUR LOGO Signifying and reiterating our status as a home-grown brand of Indian origin Coherent merchandise display at stores to communicate our lifestyle thought to the end consumer 13
Slide 15: Reinvented Merchandise Architecture
Reinvented Merchandise Architecture AUTHENTIC RELAXED URBAN ATHLEISURE Daily Casuals Holiday Casuals Party-Wear Lounge-Wear Increasing our share of customer’s wallet by providing designs suited for specific occasions in our customer’s life 14
Slide 16: Reinvented Retail Identity
Reinvented Retail Identity 15
Slide 17: Company Differentiators
COMPANY DIFFERENTIATORS
Slide 18: Company Differentiators
Company Differentiators 1 2 3 Multi-channel, Pan-India Distribution Wide Range of Products for Multiple Strong Brand Equity with Presence Extending from Major Metros to Tier- Occasions Across Categories 3 Cities 4 5 6 EBOs Prime Distribution Driven Through Longstanding Channel Offering Holistic In-S
Slide 19: 1. Wide Range of Products for Multiple Occasions
1. Wide Range of Products for Multiple Occasions Focus on creativity, expressiveness and boldness in designs to provide a youthful appearance Shirts (1) T-shirts (1) Bottomwear Outerwear Among brands offering the most balanced mix of products across Topwear, Bottomwear and Outerwear* Note: (1) Shirt
Slide 20: 2. Strong Brand Equity with Presence Across Categories
2. Strong Brand Equity with Presence Across Categories Recognized brand with 25 years of presence Prominent focus on casual wear in the mid-premium to premium price range in India Share of Men’s Casual Led Western Wear Players in Denim Led Casual Led the Mid Price+ Branded Market – FY2022 3.81% 1.72
Slide 21: 3. Multi-channel having Pan-India Distribution
3. Multi-channel having Pan-India Distribution Retail Touchpoints Sales Mix (9M FY25) 122 1,857 278 4.2% 13 EBOs 13.8% Cities Present 3.4% MBO LFS 55.7% 595 87 Online 111 22.9% 431 Others 253 EBO – Cities Present 19 30 48 243 188 Diversified Presence Across High Streets, Malls & Airports 6 Geographi
Slide 22: 4. EBOs Offering Holistic In-Store Brand Experience
4. EBOs Offering Holistic In-Store Brand Experience and Enhancing Brand Visibility… Avg. Cost of Capex per EBO Avg. Revenue per EBO (Rs. Lakhs) (Rs. Lakhs) +19% 25.6 28.5 28.1 75.8 74.8 20.7 55.1 44.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Avg. Revenue per product Avg. ticket value per bill for sol
Slide 23: … with an evenly spread PAN-India network
… with an evenly spread PAN-India network 435 EBO’s in 243 cities; evenly spread pan-India EBO network Geography Wise Tier Wise Location Wise South Top 2* 11% 11% North Tier 3 28% Next 6** Malls 28% East 12% 32% 15% 16% Tier 1 1% 67% Airports 20% Central 26% 34% West HighStreets Tier 2 As of Dec 31,
Slide 24: 5. Scalable and Asset Light Business Model
5. Scalable and Asset Light Business Model Scalable Asset Light Healthy mix of owned and franchisee EBO stores (1) Retailing Added 119 EBOs in last 3 years 52 52 114 143 COCO COFO 15 10 Sustainable FOFO Store roll-out growth FY22 FY23 FY24 9M FY25 178 Manufacturing Increase or decrease supply based
Slide 25: 6. Driven Through Longstanding Relationships with Partners
6. Driven Through Longstanding Relationships with Partners Sourcing Partners Manufacturing Partners Franchisee Partners 48 52% Fabric and accessories suppliers Over 48 of franchisees associated with Mufti Manufacturing Partners for over 5 years 8 years Average association of Top-5 suppliers 8 years
Slide 26: 7. Systems Driven Processes and Analytical Capabilities
7. Systems Driven Processes and Analytical Capabilities Enable Data Based Decision-making Strong In-house Design Competencies To Deliver Innovative And High-quality Products Product Design Procurement Manufacturing Tech-enabled Inventory Business Intelligence Tool Management System ✓ Experienced in-
Slide 27: 8. Financially Stable Business Model With Profitable Growth
8. Financially Stable Business Model With Demonstrated History of Profitable Growth … and tight operational control leading to Demonstrated growth in Revenues.. .. with expansion in gross margins high EBITDA margin 48.9% 56.9% 57.5% 57.5% 19.8% 27.9% 32.9% 28.3% +32% +40% +49% 498 567 286 326 164 16
Slide 28: 9. Experienced Board of Directors…
9. Experienced Board of Directors… • Undergraduate degree in mechanical engineering (IIT Delhi), PGDM (IIM Bangalore), Mr. Kamal Khushlani Mrs. Poonam Khushlani Executive Doctor of PROMOTER, CHAIRMAN AND PROMOTER AND WHOLE TIME Management (Case Western MANAGING DIRECTOR DIRECTOR Reserve University)
Slide 29: …with a Proficient Team Committed to the Brand's Philosophy
…with a Proficient Team Committed to the Brand’s Philosophy Mr. Kamal Khushlani Mrs. Poonam Khushlani Promoter, Chairman & Managing Director Promoter & Whole Time Director Right from Company Inception Right from Company Inception Experience > 30 years Experience > 25 years Mr. Rasik Mittal Mr. Sanja
Slide 30: Prestigious Awards Received by the Company
Prestigious Awards Received by the Company 29
Slide 31: Growth Drivers
GROWTH DRIVERS
Slide 32: Growth Drivers
Growth Drivers 1 2 3 4 5 Leverage technology Expand domestic Enhancement of Deeper penetration Focused expansion to improve supply- store network in brand appeal to grow sales of product portfolio chain management existing and new through focused through online to become a men’s and enhance cities m
Slide 33: Industry Overview
INDUSTRY OVERVIEW
Slide 34: Organized Market Share to Reach ~60% by FY'27 for Men's Apparel
Organized Market Share to Reach ~60% by FY’27 for Men’s Apparel Branded apparel and organized apparel retail as a share of Growing middle class apparel market (Rs Bn) x% CAGR Hou seh old s b y An n u al E arn in gs [# mn ], % of total h ou seh old s <US$ 5K US$ 5 -10K US$ 10-50 K >US$ 50K Branded Ap
Slide 35: India's Predisposition Towards Casual Wear has Grown Exponentially
India’s Predisposition Towards Casual Wear has Grown Exponentially One of the youngest populations globally Causal (1) and formal led play in total men’s western wear market Med ian Age CY202 2 Age Dep en d en cy Ratio (3) Casual Led Play Formal Led Play In Rs Bn 38.4 38.5 64% 59% 54% 3,702 28.7 42%
Slide 36: Historical Financials
HISTORICAL FINANCIALS
Slide 37: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (Rs. In crore) FY24 FY23 FY22 FY21 Revenue from Operations 567.3 498.2 341.2 244.8 Raw Material Cost 241.3 211.9 147.1 125.0 Gross Profit 326.1 286.2 194.1 119.8 Gross Profit Margin 57.5% 57.5% 56.9% 48.9% Employee Cost 31.5 26.8 29.2 21.8 Other Exp
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In crore) FY24 FY23 FY22 FY21 Equity & Liabilities (Rs. in crore) FY24 FY23 FY22 FY21 Property Plant & Equipment 77.2 61.5 40.3 38.7 Share Capital 12.9 3.2 3.2 3.2 Capital Work in Progress 0.8 0.2 0.6 0.4 Other Equity 328.8 278.1 232.5 189.1 Right of Use Asset
Slide 39: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. in crore) FY24 FY23 FY22 FY21 Net Profit Before Tax 78.9 103.8 47.8 4.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 83.1 64.0 60.8 46.4 Operating profit before working capital changes 162.0 167.8 108.7 50.4 Changes in workin
Slide 40: Thank You!
THANK YOU ! Company: Credo Brands Marketing Limited CIN: L18101MH1999PLC119669 Mr. Rasik Mittal – CFO investorrelations@mufti.in Investor Relations: Strategic Growth Advisors (SGA) CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Deep Hemani deven.dhruva@sgapl.net / deep.hemani@sgapl.net Tel: +91 9
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