Kewal Kiran Clothing Limited · NSE:KKCL
Kewal Kiran Clothing — Q1 FY23 Earnings Presentation
46 slides from Kewal Kiran Clothing's earnings presentation, Jul 23, 2022
Slide 1: Kewal Kiran Clothing Limited investor presentation cover letter
K<i<Cw KEWAL KIRAN CLOTHING LIMITED Making growth fashionable. July 23, 2022 The BSE Limited National Stock Exchange of India Limited First Floor, New Trading Ring, Listing Department Rotunda Building, Exchange Plaza P. J. Towers, Dalal Street. Bandra Kurla Complex Mumbai. Bandra (E), Mumbai-400051
Slide 2: Q1 FY23 Financial Overview & Corporate Presentation
L I K E D Q1 FY23 FINANCIAL OVERVIEW & CORPORATE PRESENTATION
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Kewal Kiran Clothing Limited (the “Company”) solely for information purposes without regard to any specific objectives, financial situations or informational needs of any particular person. By attending the meeting where this presentation is being ma
Slide 4: Q1 FY23 Achievement Highlights
Q1 FY23 Achievement Highlights
Slide 5: Q1 FY23 – Key Financial Highlights
Q1 FY23 – Key Financial Highlights REVENUE Particulars ₹ Crs 155 Crs Q1FY23 Q1FY22 % Change 69% Revenue from Operations 155 92 69% EBIDTA Total Expenses 125 84 50% 29 Crs EBIDTA 29 8 270% 270% EBIDTA % 19% 9% Profit after Tax Interest 1 1 22 Crs Depreciation 2 2 153% PAT 22 9 153% PAT % 14% 9% 4 Sta
Slide 6: Profitability Highlights
Profitability Highlights Y-O-Y Pre-Covid Y-O-Y Particulars (₹ In Cr) Q1 FY23 Q1 FY22 Q1 FY20 Q4 FY22 FY22 FY21 % Change % Change % Change Revenue from Operations 155 92 69% 110 40% 170 608 303 101% Cost of Material Consumed 88 55 49 97 359 180 Employee Expenses 23 17 15 23 80 53 Administrative & Oth
Slide 7: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ in Cr) Particulars (₹ in Cr) June 2022 Mar 2022 June 2022 Mar 2022 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, plant and equipment 88 84 Equity Share Capital 62 62 Capital work-in-progress 2 1 Other Equity 406 417 Investment
Slide 8: Financial Performance: An Overview
Financial Performance : An Overview Operating Sales EBIDTA ₹ Cr ₹ Cr Costs Factors as a % of Operating Income 31% Growth in Absolute EBITDA Number over Pre Covid Levels 180 4% 155 35 25% 5% 160 30 140 20% 20% 110 69% 19% 120 25 92 Growth 15% 15% 100 20 80 15 29 10% Q1 FY23 60 22 9% 10 40 5% 20 5 57%
Slide 9: Product Category Performance
Product Wise Sales Contribution Product Category Performance (% Contribution to Total Income from Sales of Apparel and Lifestyle Accessories/Products) 5% 8% 5% 8% 10% 9% Q1 FY22 Q1 FY23 53% 55% 26% 20% Q1 FY23 Q1 FY22 FY22 FY21 FY20 FY19 FY18 Apparel and Lifestyle 23.27 14.83 89.77 57.77 82.95 84.00
Slide 10: Channel wise Performance
Channel wise Performance Channel Wise Sales Contribution (% Contribution to Total Income from Sales of Apparel and Lifestyle Accessories/Products) Q1 FY23 Q1 FY22 FY22 FY21 FY20 FY19 FY18 Retail 42% 37% 42% 39% 43% 41% 34% Non-Retail 40% 37% 36% 36% 42% 42% 51% Others 18% 26% 22% 25% 15% 17% 15% 9
Slide 11: EBOs Update
EBOs Update Particulars COCO/COFO Nos. FOFO Nos. Total Nos. As on 1 April 2022 25 331 356 Opened during the period 1 26 27 Closed during the period 0 02 02 As on 30 June 2022 26 355 381 Under Development / WIP 67 • COCO - Company Owned Company Operated • COFO – Company Owned Franchise Operated Kille
Slide 12: Killer EBO: Viviana Mall – Thane
Killer EBO : Viviana Mall – Thane
Slide 13: Select Recent EBO Openings
Jaipur, Rajasthan Mohali, Punjab Kolhapur, Maharashtra Gopalganj, Bihar Select Recent EBO Openings Rourkela, Orissa Ghaziabad, U.P Adilabad, Telangana Durgapur, West Bengal 12
Slide 14: KKCL: Corporate Overview
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Slide 15: 40+ years of Success filled Journey
40+ years of Success filled Journey ▪ Amongst the few Indian Denim brands to have successfully contributed to the evolving Denim culture in India : 40+ years of tasting success and continuing ▪ Integrated Operations & amongst the few players to be present across Value Chain : Designing - Manufacturi
Slide 16: Focused Founding Team
Focused Founding Team Kewalchand P. Jain, CMD • Finance Function Hemant P. Jain, Jt. MD Dinesh P. Jain, Director Vikas P. Jain, Director • Governance & Compliances • Support Functions • Vision & Strategy • Killer Brand • Manufacturing Planning & • Lawman Brand • Easies Brand Operations • Integriti B
Slide 17: Independent Directors
Independent Directors – Chairman and Managing Director of Unichem Laboratories Limited and brings onboard rich experience in marketing, research and production Dr. Prakash A. Mody – A doctorate in Organic Chemistry from University of Mumbai and pursued Marketing Management from Jamnalal Bajaj Instit
Slide 18: KKCL: A New Rising focused towards Growth
KKCL : A New Rising focused towards Growth Induction of experienced Professional Team across key market Functions coupled with strong business acumen of the founding team across the supply chain A New Rising Expansion of Product category to diversify revenue and providing customers an increased
Slide 19: Riding on Key Success Factors
Riding on Key Success Factors Established Brand Portfolio 1 Manufacturing Excellence 2 Focused Growth 5 Strategy 3 4 Widespread Distribution Financial Sustainability 18 Profitability Driven : An edge over other players
Slide 20: Established Brand Portfolio
1 Established Brand Portfolio Key Mantra - Branding drives Aspiration, commands Premium and sense of Stickiness
Slide 21: Established Brand Portfolio
Established Brand Portfolio “ ” L I K E D by targeted consumers 1 Flagship Brand catering to Premium Luxury segment 2 Premium Mid Market Segment Brand 3 Fashion/Partywear Brand Focused on Mid Market Segment 4 Targeted Premium Mass Market Brand Denims: Label Tagging an important tool 5 Focused Women
Slide 22: Killer: Premium Casuals
Killer : Premium Casuals Flagship brand “Killer” imbibes in it the cool confidence of today’s youth and redefines denims, giving a bold character to them
Slide 23: Lawman: Fashion Capital
Lawman : Fashion Capital A glamorous, lifestyle brand, “LawmanPg3” specialises in trendsetting denim and partywear for young adults
Slide 24: Integriti: Youth Culture
Integriti : Youth Culture Reflecting and resonating the ambition and energy of youth, “Integriti” offers a credible, trusted and value proposition across work and casual wear
Slide 25: Easies: Contemporary Semi Formal Wear
Easies : Contemporary Semi Formal Wear A blend of classic and contemporary preferences, “Easies” is reshaping corporate fashion in India through its range of semi-formal menswear, made from the most premium range of fabric and linen
Slide 26: Women Wear: New Avenues
Women Wear : New Avenues “Desi Belle” is an Indo-Western womenswear that exists at the confluence of modern style and desi touch, catering to the contemporary woman
Slide 27: Wide Product Portfolio capitalizing Brands
Wide Product Portfolio capitalizing Brands Bottom Wear Jeans Shorts Trousers + Shirts T-Shirts ▪ Focused approach to continue to expand portfolio with an experimental approach Top Wear Jackets Accessories Business through Brand Extension : Opportunistic Play capitalizing on Brand Recognition & Ent
Slide 28: New Category Focus: Winterwear
New Category Focus: Winterwear
Slide 29: New Category Focus: Jackets & Blazers
New Category Focus : Jackets & Blazers
Slide 30: Addictions: Accessories Play as a Brand Extension
Addictions : Accessories Play as a Brand Extension The accessories wing of KKCL, “Addictions” offers lifestyle products such as deodorants, watches, wallets, belts and innerwear
Slide 31: Manufacturing Excellence
2 Manufacturing Excellence Market dynamics paves the way for Creator’s market – Manufacturing back in focus
Slide 32: Manufacturing Excellence
Manufacturing Excellence Tech-led manufacturing capabilities : State-of-the-art technology in manufacturing denims with units equipped with advanced machinery, helping us offer the best Designing – Procurement – Washing – Stitching – Labelling – Packing – Retail products to our customers Best in
Slide 33: Widespread Distribution
3 Widespread Distribution Brand recognition driving market “Pull Strategy” – playing it with a flexible profit oriented & balanced market strategy
Slide 34: Balanced Sales Platform
Balanced Sales Platform Traditional Channels : Key to Profitability - Identify Right Channel Partners EBOs Structured & Focused - Nurturing Channel Partners & forging long term Win-Win Philosophy partnerships Methodology MBOs - Opportunities of Growth for Channel Partners - Retaining Channel Partner
Slide 35: Strategic Widespread Presence
Strategic Widespread Presence Exclusive Retail Store Count MBO Presence Widespread MBO presence through traditional Coverage Across India through As on March 31 As on June 30 Distributional Channel : 80+ Distributors covering ~4,000+ Multiple Channels 2022 2022 MBOs across India National Chain Store
Slide 36: KKCL's Retail Play
- KKCL’s Retail Play
Slide 37: Financial Sustainability
4 Financial Sustainability Balanced Profitability driven Business Growth
Slide 38: Company Driven by Inherent Financial Acumen
Company Driven by Inherent Financial Acumen ▪ Simplicity in Business working : Focused Balanced Approach striving towards Profitability driven business growth ▪ Success Driven Philosophy with a Cautious Approach : Follow prototype model with an objective to make “Small to Big” ▪ Financial Sustainabi
Slide 39: Profit & Loss
Profit & Loss Particulars (₹ In Cr) FY18 FY19 FY20 FY21 FY22 Revenue from Operations 462 502 530 303 608 Cost of Material Consumed 240 241 262 180 359 Employee Expenses 65 75 71 53 80 Administrative & Other Expenses 31 33 33 33 35 Selling & Distribution Expenses 27 41 68 19 34 EBIDTA 98 112 95 19 10
Slide 40: Balance Sheet
Balance Sheet As at As at As at As at Particulars (₹ in Cr) Particulars (₹ in Cr) Mar 2022 Mar 2021 Mar 2022 Mar 2021 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, plant and equipment 84 81 Equity Share Capital 62 12 Capital work-in-progress 1 1 Other Equity 417 421 Investment Pr
Slide 41: Key Financial Indicators
Key Financial Indicators Operating Income ₹ Cr EBIDTA ₹ Cr PBT ₹ Cr PAT ₹ Cr 40 Standalone basis
Slide 42: Focused Growth Strategy
5 Focused Growth Strategy
Slide 43: Focused Growth Strategy
Focused Growth Strategy Continue to focus on EBO addition : - With an objective to capitalise on the growth avenues and to increase its brand visibility, KKCL will continue to focus on to add aggressively its brand EBOs with a mix of both COCO/COFO and FOFO stores with FOFO dominating the number w
Slide 44: Branding Initiatives
Branding Initiatives
Slide 45: Recent Brand Promotion
Laxmi Nagar , NCR Juhu Versova, Mumbai Andheri, Mumbai Recent Brand Promotion Bannerghatta Road, Bengaluru Kurla, Mumbai Mayur Vihar – Nr. Holiday Inn Hotel, NCR
Slide 46: Thank You
Thank You Kewal Kiran Clothing Limited 460/7, I.B. Patel Road, Kewal Kiran Estate, Goregaon (East), Mumbai 400063 Investor Relations Advisor Marathon Capital Advisory Private Limited Rahul Porwal (99675 76900 / rahul@marathoncapital.in) Bhavin Ranawat (9819345619 / bhavin@marathoncapital.in)