Monte Carlo Fashions Ltd. · NSE:MONTECARLO
Monte Carlo Fashions — Q3 FY19 Earnings Presentation
24 slides from Monte Carlo Fashions's earnings presentation, Feb 12, 2019
Slide 1: Q3 & 9M FY19 Investor Presentation filing letter
M0NTE CAltL-~~--~--"'-""~ ~- GSTN : 03AAFCM7888Q1ZK PAN· AAFCM7888Q It's the way~y0rJmake me feel TAN· JLDM04272C CIN • L51494PB2008PLC032059 ~ u7VMONTE CARLO FASHIONS LIMITED Regd. Office: B.XXIX·106, G.T. Road, Sherpur; Ludhiana • 141003 (Pb.) India. Tel.: 91.161·5048610, 5048620, 5048630, 5048640
Slide 2: Q3 & 9M FY19 Investor Presentation
Q3 & 9M FY19 INVESTOR PRESENTATION February 2019
Slide 3: Q3 & 9M FY19 Results Update
MONTE CARLO AX It's the way you make me feel Q3 & 9M FY19 Results Update
Slide 4: Monte Carlo: Poised for Long Term Growth
MONTE CARLO: POISED FOR LONG TERM GROWTH PRODUCT MIX MOVING Cotton scaling above 60% of total FY18 revenue reflecting shift towards Cotton from Woollen segment TOWARDS COTTON Textile and Kids segment delivered strong growth, contributing higher revenue for the overall business Focus on new mar
Slide 5: Monte Carlo: Differentiated Business Model
MONTE CARLO: DIFFERENTIATED BUSINESS MODEL PRICING ORDER TO Being a premium brand, Monte Carlo Majority of revenues come from POWER PRODUCE enjoys strong pricing power outright sales MODEL basis No discount sharing with MBOs Sales to MBO’s and franchisee owned EBOs (FOFO) are pre-booked and on outri
Slide 6: Q3 & 9M FY19: Key Highlights
Q3 & 9M FY19: KEY HIGHLIGHTS Q3 FY19 YoY ANALYSIS In Rs Mn REVENUES EBIDTA & EBIDTA MARGIN% # PAT, CASH PAT & PAT MARGIN % 31.4% 31.3% 3,756 3,241 19.2% 20.1% 1,174 1,019 803 16 % 15% 21% 754 676 622 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 PAT Cash PAT PAT Margin % 9M FY19 YoY ANALYSIS REVEN
Slide 7: Q3 & 9M FY19: Revenue Analysis (Segment)
Q3 & 9M FY19: REVENUE ANALYSIS REVENUES BREAKUP – SEGMENT WISE In Rs Mn Q3 FY18 Q3 FY19 9M FY18 9M FY19 Total Revenues* 3,367 3,872 4,936 5,759 Woollen Segment 35.0% 34.9% 29.1% 27.9% Cotton Segment 52.3% 50.8% 57.4% 56.6% Home Furnishings 7.3% 8.1% 8.5% 10.1% Kids 5.4% 6.2% 5.0% 5.4% FOCUS ON PRODU
Slide 8: Q3 & 9M FY19: Revenue Analysis (Channel)
Q3 & 9M FY19: REVENUE ANALYSIS REVENUE BREAKUP – CHANNEL WISE Q3 FY18: Rs 3,367 Mn Q3 FY19: Rs 3,872 Mn 9M FY18: Rs 4,936 Mn 9M FY19: Rs 5,759 Mn 8% 7% 6% 6% 51% 37% 52% 36% 38% 50% 37% 53% 4% 5% 5% 5% MBO+NCS EBO-COCO EBO-FOFO Others inc online MBO+NCS EBO-COCO EBO-FOFO Others inc online Improving
Slide 9: Q3 & 9M FY19: Revenue Analysis (Region)
Q3 & 9M FY19: REVENUE ANALYSIS REVENUE BREAKUP – REGION WISE Q3 FY18: Rs 3,367 Mn Q3 FY19: Rs 3,872 Mn 9M FY18: Rs 4,936 Mn 9M FY19: Rs 5,759 Mn 2% 6% 1% 4% 3% 6% 2% 5% 15% 14% 16% 19% 54% 53% 49% 50% 27% 23% 27% 24% North East Central South West North East Central South West Improving Regional Dive
Slide 10: Q3 & 9M FY19: Store Network Analysis
Q3 & 9M FY19: STORE NETWORK ANALYSIS STORE NETWORK EBO – NET ADDITIONS Type of Store FY17 FY18 9M FY19 FY17 FY18 9M FY19 EBO – COCO 20 21 27 Existing 223 231 235 EBO – FOFO 211 214 226 New Opened 17 10 22 MBO’s and Closed 2,300+ 2,500+ 2,500+ 9 6 4 Distributors NCS 198 283 321 Total EBOs 231 235 253
Slide 11: Q3 & 9M FY19: Consolidated Profit & Loss Statement
Q3 & 9M FY19: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY19 Q3 FY18 YoY% 9M FY19 9M FY18 YoY% FY18 Revenue From Operations 3,756 3,241 15.9% 5,606 4,923 13.9% 5,759 Material Costs 2,009 1,742 15.3% 2,788 2,409 15.7% 2,922 Gross Margin 1,747 1,499 16.5% 2,818 2,514 12.1% 2,837 G
Slide 12: Future Growth Strategy
FUTURE GROWTH STRATEGY • Focus on branding and promotion to further increase our visibility and market share across India FOCUS ON BRAND & PRODUCT PORTFOLIO EXPANSION • Focus on a comprehensive range of cotton and cotton-blended products which cater to all seasons in-order to expand our all-season p
Slide 13: Company Overview
MONTE CARLO 4X It's the way you make me feel COMPANY OVERVIEW
Slide 14: Brief Profile
COMPANY OVERVIEW BRIEF PROFILE • Launched in 1984, ‘Monte Carlo’ has emerged as one of the leading brands in apparel industry in India • ‘Monte Carlo’ is recognized as ‘Superbrand’ for woollen knitted apparels by Consumer Superbrands India since 2004 • Under the umbrella brand of ‘Monte Carlo’, Comp
Slide 15: Diversified Product Portfolio
COMPANY OVERVIEW DIVERSIFIED PRODUCT PORTFOLIO RANGES LAUNCHED UNDER THE BRAND – “MONTE CARLO” Range Woollens & Woollen-blended Cottons & Cotton-blended Home Furnishing Kids Monte Carlo – Sweaters, Pullovers thermals, Shirts, trousers, t-shirts, Mink blankets, bed Premium and mid-premium woollen acc
Slide 16: Strong Design & Manufacturing Capabilities
COMPANY OVERVIEW STRONG DESIGN & MANUFACTURING CAPABILITIES IN-HOUSE DESIGN & PRODUCT DEVELOPMENT: • Strong design team of over 30 professionals closely tracking the trending global fashion • Focus on developing new products, improving existing ones and forecasting fashion trends • Regular market su
Slide 17: Retail Presence
COMPANY OVERVIEW RETAIL PRESENCE PAN INDIA PRESENCE ACROSS 22 STATES & 1 UNION TERRITORY J&K 3 HP 9 Chandigarh 4 Punjab 40 Uttarakhand 9 Haryana 25 Delhi 16 Nepal 2 Rajasthan 25 UP 32 Assam 1 N agaland 1 Bihar 31 Manipur 1 Gujarat 6 Jharkhand 8 MP 11 Tripura 2 WB 12 C hhattisgarh 2 Maharashtra 6 Ori
Slide 18: E-Commerce Presence
COMPANY OVERVIEW E-COMMERCE PRESENCE • Building our presence on e-commerce platform through our own portal www.montecarlo.in & www.rockit.co.in • Have Entered into distribution agreements with some of the leading Indian digital commerce platforms for online sale of our products OWN PORTAL – WWW.MONT
Slide 19: Understanding Our Business Model
COMPANY OVERVIEW UNDERSTANDING OUR BUSINESS MODEL AUGUST JANUARY FEBRUARY - MARCH APRIL MAY TILL JULY ONWARDS BUSINESS CYCLE FOR WINTER SEASON SALES • Product development • Commissioned agents display the • The dealers and • Production of pre-ordered designs • Dispatching of winter & Sampling proces
Slide 20: Robust Distribution Model
COMPANY OVERVIEW ROBUST DISTRIBUTION MODEL MBO and DIstributors NCS EBO-COCO EBO –FOFO Total Number of Outlets 2,500+ 321 27 226 (December’18) % of Revenue Contribution – 55% 45% FY18 (NCS Contribute less than 10%) Pre-Booking of orders SOR – Sale or Return / Inventory owned by Pre-Booking of orders
Slide 21: Understanding Seasonality
COMPANY OVERVIEW UNDERSTANDING SEASONALITY BUSINESS SEASONALITY: SEASONALITY IMPACT ON REVENUES (In % terms) • Q3 generates highest quarterly revenues in any fiscal year • Q3 typically involves sale of winter products – 55 - 60 • Woollens / woollen blended - sweaters, jackets, cardigans • Cotton / c
Slide 22: Shareholding Structure
COMPANY OVERVIEW SHAREHOLDING STRUCTURE Market Data As on 8.2.2019 (BSE) Key Institutional Investors – Dec 18 % Holding Market Capitalization (Rs Mn) 8,192.9 Kanchi Investments Ltd (Samara Capital) 10.94% Share Price Rs 377 Goldman Sachs India 3.64% No. of shares outstanding (Mn) 21.7 ICICI Prudenti
Slide 23: Financial Highlights
COMPANY OVERVIEW FINANCIAL HIGHLIGHTS REVENUES EBITDA# & EBITDA MARGIN 23.7% 21.7% 20.9% 5,680 5,759 19.7% 5,200 5,231 14.8% 4,440 1,230 1,233 927 1,132 776 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA (mn) EBITDA Margin % PAT & PAT MARGIN LEVERAGE & RETURN RATIOS 0.31 0.31 12.3% 11.5% 0
Slide 24: For Further Queries
FOR FURTHER QUERIES DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Monte Carlo Fashions Ltd (“MCFL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of o