Monte Carlo Fashions Ltd. · NSE:MONTECARLO
Monte Carlo Fashions — Q3 FY20 Earnings Presentation
30 slides from Monte Carlo Fashions's earnings presentation, Feb 7, 2020
Slide 1: Monte Carlo Fashions Q3FY20 Investor Presentation
MONTE CARLO 4x. It's the way you make me feel GSTN :; OSAAFCM7888Q1ZK PAN - AAFCM7888Q 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-
Slide 2: Monte Carlo Fashions Limited Q3 FY20 Investor Presentation
MONTE CARLO FASHIONS LIMITED Q3 FY20 INVESTOR PRESENTATION
Slide 3: Discussion Summary
DISCUSSION SUMMARY It’s the way you make me feel # Page No 01 Company Overview 03 02 Quarterly Update 08 03 Monte Carlo Advantage 14 04 Annexure 24
Slide 4: Company Overview
MONTE CARLO 4X It's the way you make me feel COMPANY OVERVIEW
Slide 5: About Us
ABOUT US STRONG WIDE PEDIGREE REACH • Leading Winter wear Brand, • Presence across India through a launched in 1984 and part of judicious mix of EBOs, MBOs and Oswal Woollen Mills Ltd Shop in shop ,distributors and • Recognised as “Superbrand” national chain stores and online for woollen knitted app
Slide 6: Diversified Product Portfolio
DIVERSIFIED PRODUCT PORTFOLIO Range Home Kids Woollen Cotton Furnishing 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 s
Slide 7: What Is Our Business Model
WHAT IS OUR BUSINESS MODEL May Aug January Feb -March April Till July Onwards BUSINESS CYCLE FOR WINTER SEASON SALES • Product development • Commissioned agents display the • The dealers and • Production of pre- • Dispatching of winter & Sampling process samples to dealers and distributors distribut
Slide 8: Distribution Model
DISTRIBUTION MODEL MBO and NCS Shop In Shop EBO-COCO EBO –FOFO Distributors MINIMUM GOODS RETURNED Distribution Pre-Booking of SOR – Sale or Pre-Booking of Pre-Booking of Inventory owned Sale Model orders Return / Outright orders Outright orders Outright by Company Outright Sales Sales Sales sale Go
Slide 9: Q3 & 9MFY20 Highlights
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Slide 10: Q3 & 9MFY20: Financial Highlights
Q3 & 9MFY20: FINANCIAL HIGHLIGHTS In Rs Mn Q3 FY20 REVENUES EBIDTA & EBIDTA MARGIN % * PAT, CASH PAT & PAT MARGIN % 20.1% 17.9% 3,756 4,034 31.3% 26.4% 755 803 812 723 1,174 1,065 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY 20 EBIDTA EBIDTA% PAT Cash PAT PAT Margin 9M FY20 REVENUES EBIDTA & EBIDTA
Slide 11: Q3 FY20: Revenue Details
Q3 FY20: REVENUE DETAILS REVENUE BREAKUP– REGION WISE REVENUE BREAKUP – CHANNEL WISE (Including Online Sales) Q3 FY19: Rs 3,872 Mn Q3 FY20: Rs 4,046 Mn Q3 FY19: Rs 3,872 Mn Q3 FY20: Rs 4,046 Mn 4% 4% 1% 1% 5% 3% 8% 6% 15% 15% 49% 50% 49% 35% 38% 53% 27% 26% 6% 5% North East Central South West Others
Slide 12: 9M FY20: Revenue Details
9M FY20: REVENUE DETAILS REVENUE BREAKUP– REGION WISE (Including Online Sales) REVENUE BREAKUP – CHANNEL WISE 9M FY19: 5,759 Mn 9M FY20: 6,126 Mn 9M FY19: 5,759 Mn 9M FY20: 6,126 Mn 4% 4% 5% 3% 2% 2% 7% 6% 14% 14% 35% 33% 49% 50% 53% 56% 26% 27% 5% 5% North East Central South West Others Including O
Slide 13: Q3 FY20: Revenue Analysis
Q3 FY20: REVENUE ANALYSIS REVENUE BREAKUP - SEGMENT WISE In Rs Mn Q3 FY19 Q3 FY20 9M FY19 9M FY20 Total Revenues* 3,872 4,046 5,759 6,126 Woollen Segment 34.9% 29.8% 27.9% 24.0% Cotton Segment 50.8% 53.1% 56.6% 56.3% Home Textiles 8.1% 8.8% 10.1% 12.6% Kids 6.2% 8.3% 5.4% 7.1% FOCUS ON PRODUCT DIVER
Slide 14: Q3 FY20: Profit and Loss Statement
Q3 FY20: PROFIT AND LOSS STATEMENT Particulars (In Rs Mn) Q3 FY20 Q3 FY19 YoY% 9M FY20 9M FY19 YoY% FY19 Revenue From Operations ** 4,034 3,756 7% 6,161 5,606 10% 6,564 Material Cost 2,326 2,009 16% 3,241 2,788 16% 3,444 Gross Margin 1,708 1,747 -2% 2,920 2,818 4% 3,120 Gross Margin % 42.3% 46.5% 47
Slide 15: Monte Carlo Advantage
03 MONTE CARLO ADVANTAGE
Slide 16: Strong Brand Equity
STRONG BRAND EQUITY … ❖ “Monte Carlo”, has Strong Brand Equity ❖ Being a Premium Brand, Monte Carlo enjoys Pricing Power & Customer Loyalty ❖ 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 9M FY20 1 EBO – COCO 21 27 37 Chandigarh 4 EBO – FOFO 214 229 241 Punjab 42 HP 10 Uttarakhand 9 MBO and Distributors 2,500+ 2,500+ 2,500+ Haryana 26 NCS 283 306 506 Delhi 20 UP 37 Nepal 2 Rajasthan
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 COMPOSITION COTTON SEGMENT BIFURCATION- 9M FY20 9.0% 7.6% 9.1% 12.6% 5.0% 5.1% 5.3% 11% 7.1% 31% 14% 58.0% 61.0% 60.1% 56.3% 6% 38% 28.0% 26.3% 25.5% 24.0% FY 2017 FY 2018 FY 2019 9M FY20 Tshirt & Shirt Denim & Trousers Jackets , coats & Suits Woollen Cotton KIDS Home T
Slide 20: Led by Experienced Management
LED BY EXPERIENCED MANAGEMENT … Sh. Jawaharlal Oswal 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
Slide 21: Resulting in Strong Financials
… RESULTING IN STRONG FINANCIALS HEALTHY ❖ Ability to sustain Robust growth without any major capex; Return Ratios set to improve RETURN RATIOS STABLE ❖ Stable core working capital whilst achieving 14% WORKING growth in revenues for FY19 CAPITAL CYCLE STRONG BALANCE ❖ Cash balance of Rs 1,449 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 Dividend% Buy Back 120 Buy back 100 100 100 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 • Company has consistently paid dividend to shareholders. • Company has also done bu
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
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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 – December 2019 Key Institutional Investors – December 192019 % Holding Kanchi Investments Ltd (Samara Capital) 9.40% 27.6% Goldman Sachs India 3.13% 4.5% 67.9% Promoter Institutions Public 27
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