Kewal Kiran Clothing Limited · NSE:KKCL
Kewal Kiran Clothing — Q4 FY2023 Earnings Presentation
45 slides from Kewal Kiran Clothing's earnings presentation, 2023
Slide 1: Kewal Kiran Clothing Limited
<i< Ce KEWAL KIRAN CLOTHING LIMITED ne
Slide 2: Slide 2
Slide 3: Denim + Fashion brands
years Denim + Fashion KILLERDK LAWMANes? Zeasies Omtegrits Woes ecu
Slide 4: Q4 & 12M FY23 - Performance Highlights
Q4 & 12M FY23 - Performance Highlights
Slide 5: Q4 & 12M FY23: Key Financial Highlights
Q4 & 12M FY23 : Key Financial Highlights Op. Revenue EBIDTA PAT 17.6% 21.3% 27.4% 19.0% 19.6% 14.3% 15.3% Q4 199.5 39.0 31.6 32.2 24.8 ₹ Cr 169.6 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 28.3% 51.9% 46.1% 16.5% 19.5% 13.1% 14.9% 151.9 119.3 779.5 607.6 12M 100.0 81.7 ₹ Cr FY22 FY23 FY22 FY23
Slide 6: Profitability Highlights
Profitability Highlights Y-O-Y Y-O-Y Particulars (₹ Cr) Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 % Change % Change Revenue from Operations 199.5 169.6 17.6% 199.1 779.5 607.6 28.3% COGS 110.3 97.0 118.2 448.9 358.7 Gross Profit (GP) 89.2 72.6 22.8% 80.9 330.6 248.9 32.8% GP Margin 44.7% 42.8% 40.6% 42.4% 4
Slide 7: Balance Sheet Overview
Balance Sheet Overview As at As at As at As at Particulars (₹ Cr) Particulars (₹ Cr) Mar 2023 Mar 2022 Mar 2023 Mar 2022 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant and Equipment 83.9 77.7 Right of Use Asset 16.0 6.8 Equity Share Capital 61.6 61.6 Capital work-in-progress
Slide 8: Operational Matrix
Operational Matrix 8.2% 5.4% EBIDTA : 19.6% EBIDTA : 19.0% 5.1% 16.3 9.1 4.3% 8.6 8.5 13.4% 22.8 12.7% 25.3 Q4FY23 Q4FY22 110.3 97.0 55.3% 57.2% 5.7% 5.5% 4.7% 44.5 EBIDTA : 19.5% EBIDTA : 16.5% 5.8% 33.7 36.3 35.4 12.6% 97.9 13.1% 79.8 FY23 FY22 448.9 358.7 57.6% 59.0% 8
Slide 9: Product Category Performance
Product Category Performance Product Wise Sales Contribution 3.3% 3.5% 9.4% 8.0% 13.8% 12.6% 8.5% 4.8% 5.0% 11.2% 8.7% 7.8% Q4FY23 53.1% 14.7% Q4FY22 FY23 51.2% FY22 56.3% 65.3% 23.0% 18.3% 21.5% Qty Sales / Sales Realisation Q4 FY23 Q4 FY22 FY23 FY22 Apparel and Lifestyle Accessories/Products 29.4
Slide 10: Channelwise Sales Performance
Channelwise Sales Performance 46.9% 58.1% 51.9% 55.4% 53.1% 41.9% 48.1% 44.6% Q4FY22 Q4FY23 FY22 FY23 : EBO / LFS : MBO / E-Com / Exports / Factory & Seconds Q4FY22 10
Slide 11: EBO Network Update
EBO Network Update EBO Addition – Q-o-Q FY23 Mumbai – Phoenix Marketcity Mall COCO/COFO Particulars FOFO Nos. Total Nos. Nos. As on 1 April 2022 25 331 356 Q1 FY23 26 355 381 Q2 FY23 29 390 419 Q3 FY23 27 411 438 Break up of EBOs Q4 FY23 28 425 453 • K-Lounge : 206 As on 31 March 2023 28 425 453 • K
Slide 12: Select Recent EBO Openings
Bilasipara, Assam Srikakulam, Andhra Pradesh Varanasi, Uttar Pradesh Ratlam, Madhya Pradesh Select Recent EBO Openings Phoenix Marketcity – Kurla Mumbai, Maharashtra Bengaluru, Karnataka Saharsa, Bihar Gandhidham, Gujarat
Slide 13: Q4FY23: Select Brand Promotion Campaign
Q4FY23 : Select Brand Promotion Campaign
Slide 14: Strategic partnership with BCCI as Official Partner
Strategic partnership with Board of Control for Cricket in India (BCCI) as the Indian Cricket Team‟s “Official Partner”. Brand „KILLER‟ displayed on the right upper chest of the Indian Cricket Team‟s jersey. Key Objectives : - Reach out to the millions of cricket fans that are spread across th
Slide 15: KKCL: Corporate Overview
KKCL : Corporate Overview
Slide 16: Designing Success - Since 1980's
Designing Success - Since 1980’s 1st Flagship Store at Dadar (Mumbai, India) Journey from a Denim Focused Brand to establishing Lifestyle Brand (s) Journey continues . . . 1989 2002 2006 2023 Launched “Killer” Brand Launched “Integriti” Brand Company‟s IPO BCCI Sponsorship – Brand Killer 1980 1998 2
Slide 17: 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 18: 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 19: 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 19
Slide 20: 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 21: KKCL: Established Brand Portfolio
1 KKCL : Established Brand Portfolio
Slide 22: 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 Denims : Label Tagging an important marketing tool 22
Slide 23: Across Age, Personality, Occasion
Across Age Across Personality Across Occasion
Slide 24: KKCL: Product Innovation
2 KKCL : Product Innovation
Slide 25: 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 25
Slide 26: 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% 26
Slide 27: KKCL: In-House Manufacturing & Technical Capabilities
3 KKCL : In-House Manufacturing & Technical Capabilities
Slide 28: 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 29: 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 30: KKCL: Widespread Distribution
4 KKCL : Widespread Distribution
Slide 31: Growing Distribution Coverage
Growing Distribution Coverage EBOs Widespread Distribution across Channels 453 EBO (Opened 97 EBOs) (COCO : 28 , FOFO : 425) Exports LFS Widespread MBO presence through traditional MBO Distributional Channel : 80+ Distributors covering ~3,000+ MBOs across India Widespread Coverage through Select Key
Slide 32: 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 32
Slide 33: KKCL: Sustainable Financial Performance
KKCL : Sustainable Financial Performance
Slide 34: 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% 34
Slide 35: 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% 502.4 529.7 150.0 330.6 261.2 267.6 248.9 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 36: Consistent Robust Financial Performance (contd.)
Consistent Robust Financial Performance (contd.) Working Capital Days – Improving Efficiencies Strong Balance Sheet Strength ₹ Cr 175 Particulars FY22 FY23 157 146 138 135 Cash & Cash Equivalent / Bank 205.1 181.1 Deposits Investments 137.3 149.4 Total Debt 76.7 50.8 Net Cash Position 265.7 279.7 *
Slide 37: KKCL: Marketing Focused Approach
KKCL : Marketing Focused Approach
Slide 38: 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 Westernwear • Mode of Advertising : Preferred mode of advertisi
Slide 39: KILLER dK
KILLER dK this is us
Slide 40: SS 23 Collection
SS 23 Collection 40
Slide 41: 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
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Slide 43: 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 43
Slide 44: 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 45: 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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