Kewal Kiran Clothing Limited · NSE:KKCL
Kewal Kiran Clothing — Q3 FY2024 Earnings Presentation
41 slides from Kewal Kiran Clothing's earnings presentation, February 2024
Slide 1: Kewal Kiran Clothing Limited
K<i<cw KEWAL KIRAN CLOTHING LIMITED
Slide 2: Q3 & 9M FY24 - Performance Highlights
Q3 & 9M FY24 - Performance Highlights
Slide 3: Q3 & 9M FY24: Key Financial Highlights
Q3 & 9M FY24 : Key Financial Highlights Op. Revenue EBIDTA PAT 0.6% 15.8% 23.4% 200.2 13.1% 15.9% 16.9% 19.4% Q3 199.1 38.9 33.3 27.0 ₹ Cr 33.6 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 10.5% 19.3% 33.3% 19.5% 21.0% 14.8% 17.5% 641.1 134.8 116.9 9M 87.7 580.0 112.9 ₹ Cr 9M FY24 9M FY23 9M FY24
Slide 4: Profitability Highlights
Profitability Highlights Y-O-Y Y-O-Y Particulars (₹ Cr) Q3 FY24 Q3 FY23 Q2 FY24 9M FY24 9M FY23 FY23 % Change % Change Revenue from Operations 200.2 199.1 0.6% 262.5 641.1 580.0 10.5% 779.5 COGS 113.5 118.2 150.5 365.7 338.5 448.9 Gross Profit (GP) 86.7 80.9 111.9 275.4 241.4 330.6 GP Margin 43.3% 4
Slide 5: Balance Sheet Overview
Balance Sheet Overview As at As at As at As at As at As at Particulars (₹ Cr) Particulars (₹ Cr) Dec 2023 Dec 2022 Mar 2023 Dec 2023 Dec 2022 Mar 2023 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant and Equipment 84.8 82.8 83.9 Equity Share Capital 61.6 61.6 61.6 Right of Use
Slide 6: Operational Matrix (Q3 Y-o-Y)
Operational Matrix (Q3 Y-o-Y) 56.7% 13.2% 5.1% 5.6% 19.4% +250 bps Q3 FY24 ₹ Cr 59.4% 12.7% 4.9% 6.2% 16.9% Q3 FY23 ₹ Cr Standalone basis 6
Slide 7: Operational Matrix (9M Y-o-Y)
Operational Matrix (9M Y-o-Y) 57.0% 12.2% 4.8% 4.9% 21.0% 641.1 +150 bps 9M FY24 ₹ Cr 58.4% 12.5% 4.8% 4.8% 19.5% 9M FY23 ₹ Cr Standalone basis 7
Slide 8: Product Category Performance
Product Category Performance Product Wise Sales Contribution 14.7% 17.4% 24.3% 38.0% 3.7% 40.6% 3.2% 46.3% 7.8% 2.0% Q3 FY24 Q3 FY23 9M FY24 52.3% 7.9% 9M FY23 50.5% 6.6% 21.5% 21.0% 20.8% 0.5% 6.0% 15.0% Qty Sales / Sales Realisation Q3 FY24 Q3 FY23 9M FY24 9M FY23 FY23 Apparel and Lifestyle Access
Slide 9: Channelwise Sales Performance
Channelwise Sales Performance Q3 (Y-o-Y) 9M (Y-o-Y) 50.2% 44.9% 53.3% 53.7% 49.8% 55.1% 46.7% 46.3% Q3 FY24 Q3 FY23 9M FY24 9M FY23 Retail Non-Retail : EBO / LFS : MBO / E-Com / Exports / Factory & Seconds 9
Slide 10: EBO Network Update
EBO Network Update EBO Addition Killer EBO – Jaipur, Rajasthan COCO/COFO Particulars FOFO Nos. Total Nos. Nos. As on April 01 2022 25 331 356 As on April 01 2023 28 425 453 Break up of EBOs • Killer Brand EBOs : 294 As on Dec 31, 2023 29 454 483 • K-Lounge : 172 Mix of COCO / COFO / FOFO stores (wit
Slide 11: Select Recent EBO Openings
Telangana Bihar Madhya Pradesh Select Recent EBO Openings Rajasthan Andhra Pradesh Orissa Navi Mumbai, Maharashtra
Slide 12: KKCL : Corporate Overview
KKCL : Corporate Overview I<|sCm
Slide 13: Designing Success - Since 1980's
Designing Success - Since 1980’s Journey from a Denim Focused Brand to establishing Lifestyle Brand (s) 1st Flagship Store at Dadar (Mumbai, India) Journey continues . . . 1989 2002 2006 2023 Launched “Killer” Brand Launched “Integriti” Brand Company’s IPO BCCI Sponsorship – Brand Killer 1980 1998 2
Slide 14: Driven by Sustainable Business Ethos
Driven by Sustainable Business Ethos MISSION : VISION : ❖ Driving excellence through - people, business partners and other stakeholders To be a world-class business organization which enables ❖ Focusing on consumer satisfaction and executing a customer-centric business module value, best services an
Slide 15: Supported by Focused & Experienced Board
Supported by Focused & Experienced Board 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 Opera
Slide 16: Board Governance Update – New ID's Appointment
Board Governance Update – New ID’s Appointment - Fellow Member of the Institute of Chartered Accountants of India - Partner of Bansi S. Mehta & Co., Chartered Accountants with expertise in audit, due diligence for local and international acquisitions and accounting and company law advisory - Member
Slide 17: Riding on Key Competitive Success Factors
Riding on Key Competitive Success Factors Established Brand Portfolio 1 Financial Advantage 4 Benefiting End Consumer Widespread Attractive Quality Products Product Leading to at Distribution Innovation Sharp Prices 2 Competitive Advantage 3 In-House Manufacturing & Technical Capabilities 17
Slide 18: KKCL's New Dawn of Growth
KKCL’s New Dawn of Growth Growing of Brand Focused EBOs Increase Visibility & Growing Coverage Expansion of Increased Support towards Product Category Marketing & Distribution Aids Revenue Diversification and Increased Shelf Space Increased support to distribution channel & Higher Marketing Spend Ad
Slide 19: KKCL : Established Brand Portfolio
1 KKCL : Established Brand Portfolio
Slide 20: KKCL : Brand Powerhouse
KKCL : Brand Powerhouse 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 5 Focused Women Wear Brand 6 Focused Kids wear Brand Denims : Label Tagging an important marketi
Slide 21: Across Age, Across Personality, Across Occasion
Across Age Across Personality Across Occasion
Slide 22: KKCL : Product Innovation
2 KKCL : Product Innovation
Slide 23: Wide Product Portfolio capitalising on Established Brands
Wide Product Portfolio capitalising on Established Brands T-shirts Winterwear Casual Blazer Widening Product Portfolio with Rising Brand Aspiration Shirts Lifestyle Brand Bottom wear to Top Wear To Accessories To being Athleisure Trousers Accessories From being Denim Focused 23
Slide 24: Product Wise Sales Performance
Product Wise Sales Performance 7.7% 4.9% 18.9% 9.7% 4.5% FY19 6.4% FY21 51.6% 16.6% 61.1% 13.8% 18.6% 4.8% FY23 8.7% 51.2% 10.6% 12.6% 5.4% 5.0% 21.5% 8.7% 7.8% FY20 FY22 56.3% 57.1% 18.2% 18.3% 24
Slide 25: KKCL : In-House Manufacturing & Technical Capabilities
3 KKCL : In-House Manufacturing & Technical Capabilities
Slide 26: Manufacturing : A Key MOAT for KKCL
Manufacturing : A Key MOAT for KKCL IN-HOUSE CAPABILTIES : Designing – Procurement – Washing – Stitching – Labelling – Packing – Retail • State of the Art manufacturing capabilities : Technology led manufacturing units equipped with advanced machinery, helping us offer the best products to our custo
Slide 27: Latest Mfg. Technology with Environment Friendly Practices
Latest Mfg. Technology with Environment Friendly Practices • Use of High end Machines with objective to Conserve Water, Purify Chemicals and save resources like time and energy • Adopt certified green chemicals, latest blue technology and energy conservation initiatives to be one of the best environ
Slide 28: KKCL : Widespread Distribution
4 KKCL : Widespread Distribution
Slide 29: Growing Distribution Coverage
Growing Distribution Coverage EBOs Widespread Distribution across Channels 483 EBO (COCO/COFO : 29 , FOFO : 454) Exports LFS Widespread MBO presence through traditional MBO Distributional Channel : 80+ Distributors covering ~3,000+ MBOs across India Widespread Coverage through Select Key Stores: Rel
Slide 30: Channel Wise Sales Contribution
Channel Wise Sales Contribution Brand recognition driving market Pull Strategy Playing it with a flexible Profit oriented & Balanced Market Strategy 58.6% 56.7% 58.1% 51.9% 61.0% 41.4% 43.3% 41.9% 48.1% 39.0% FY19 FY20 FY21 FY22 FY23 : EBO / LFS : MBO / E-Com / Exports / Factory & Seconds 30
Slide 31: KKCL : Sustainable Financial Performance
KKCL : Sustainable Financial Performance
Slide 32: Sales Volume & Realisation
Sales Volume & Realisation 110.7 89.8 84.0 83.0 57.8 Apparel and Lifestyle 23.3% Accessories/ Products Sales Qty (Y-o-Y) Growth (Units in Lakhs) FY19 FY20 FY21 FY22 FY23 Sales Realisation 591 633 520 674 700 (₹ per unit) Apparel Sale Qty 60.5% 64.2% 60.7% 76.2% 72.7% 32
Slide 33: Consistent Robust Financial Performance
Consistent Robust Financial Performance Revenue from Operations 350.0 52.0% Gross Profit 60.0% 50.5% 300.0 50.0% 40.5% 41.0% 42.4% 250.0 779.5 40.0% 200.0 607.6 30.0% 502.4 529.7 330.6 150.0 261.2 267.6 248.9 20.0% 302.7 100.0 50.0 122.7 10.0% - 0.0% ₹ Cr FY19 FY20 FY21 FY22 FY23 ₹ Cr FY19 FY20 FY21
Slide 34: Consistent Robust Financial Performance (contd.)
Consistent Robust Financial Performance (contd.) Working Capital Days – Improving Efficiencies Strong Balance Sheet Strength ₹ Cr 175 Particulars FY22 FY23 Q3FY24 157 146 138 135 Cash & Cash Equivalent / 205.1 181.1 194.0 Bank Deposits Investments 137.3 149.4 170.1 Total Debt 76.7 50.8 13.9 Net Cash
Slide 35: KKCL : Marketing Focused Approach
KKCL : Marketing Focused Approach
Slide 36: BRAND DNA
Increased Brand Awareness Campaign Brands are the centre of Communication Strategy Attitude • Brand Positioning Corporate happenings BRAND DNA • Brand Traits Glamour College Festivals • Short term and Long term goals of each Brand Women Westernw ear • Mode of Advertising : Preferred mode of advertis
Slide 37: Strengthening Channel Partnerships
Strengthening Channel Partnerships • Bi-Annual Trade Shows for Key Fashion Seasons - Helps to connect in-person with channel parnters - Feedback sharing - Better Supply Chain planning on account of Order Bookings - Lesser risks towards dead Inventory • Increased Support for Channel Partners - EOSS s
Slide 38: Recent Awards & Accolades
Recent Awards & Accolades Economic Times : Asian Business Leaders 2022-23 India’s Retail Champ Award – Retailers Association of India (RAI) Economic Times : Iconic Brands of India 2022 38
Slide 39: 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 40: Denim + Fashion
Denim + Fashion KILLER Lawmanrc? Zeasies Ointegriti
Slide 41: Thank You
Thank You Investor Relations Advisor Marathon Capital Advisory Private Limited 460/7, I.B. Patel Road, Kewal Kiran Estate, Goregaon (East), Mumbai 400063 Rahul Porwal (99675 76900 / rahul@marathoncapital.in) Bhavin Ranawat (9819345619 / bhavin@marathoncapital.in)
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