KEWAL KIRAN CLOTHING LTD. Financial Results Review Q4 FY2018 and fiscal year ended

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Curtis Gibbs
5 years ago
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1 KEWAL KIRAN CLOTHING LTD Financial Results Review Q4 FY2018 and fiscal year ended

2 Operational Performance: Q4 and FY 2018 Q4 FY 2018 % of Q4 FY 2017 % of FY 2018 % of FY 2017 % of Rs crs sales Rs crs sales Variation Rs crs sales Rs crs sales Variation Net Sales (including Excise Duty)* Other operating income Total Revenue % % 0.00% % % 0.00% Cost of goods sold % % 0.85% % % -0.44% Excise Duty* Personnel cost % % 2.73% % % 1.68% Manufacturing and operating expenses % % 2.08% % % -0.19% Administrative and other expenses % % -1.56% % % 0.44% Selling and distribution expenses % % 1.11% % % -0.17% Operational expenditure % % 3.06% % % -0.56% EBITDA % % -3.06% % % 0.56% Finance expenses % % 0.44% % % 0.39% Depreciation/ Ammotisation % % 0.22% % % 0.25% Other income % % 1.28% % % 0.89% Profit before tax (PBT) % % -2.44% % % 0.80% Income Tax % % 0.51% % % 0.59% Profit after tax (PAT) % % -2.95% % % 0.22% *Net sales include Excise Duty as per IND AS 2

3 Trend in Revenue Q4 FY Total revenue down by 3.3% Apparel sales quantity higher by 2.05% Apparel sales realization lower by 2.1% at Rs. 911 per unit FY Total revenue down by 3.18% Apparel sales quantity lower by 0.92% Apparel sales realization lower by 2.49% at Rs. 943 per unit Q4 FY 2017 Q4 FY 2018 Total Revenue (Rs crs) Sales Quantity (units in lakhs) FY 2017 FY 2018 Total Revenue (Rs crs) Sales Quantity (units in lakhs) Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 3

Trend in Operating Profit Q4 FY2017-18 EBITDA lower at Rs.26.43 crores EBITDA margin down to 22.0% FY 2017-18 EBITDA flat at Rs.98.28 crores EBITDA margin increased to 21.

4 Trend in Operating Profit Q4 FY EBITDA lower at Rs crores EBITDA margin down to 22.0% FY EBITDA flat at Rs crores EBITDA margin increased to 21.3% % 21.3% FY 2017 FY 2018 EBITDA (Rs crs) EBITDA margin (%) 30% 25% 20% 15% 10% 5% 0% Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 4

5 Trend in Net Profit Q4 FY PAT lower at Rs crores PAT margin stood at 16.2% Quarterly EPS at Rs (19.3) FY PAT lower at Rs crores PAT margin higher at 15.9% FY 2018 EPS at Rs (60.52) % 16.2% Q4 FY 2017 Q4 FY % 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% % 15.9% FY 2017 FY % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% PAT (Rs crs) PAT margin (%) PAT (Rs crs) PAT margin (%) Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 5

6 Balance Sheet (Assets) (Rs crs) As at 31 March 2018 (Audited) As at 31 March 2017 (Unaudited) Non-Current Assets Property, Plant and Equipment Capital Work in Progress Investment Property Other Intangible Assets Intangible Assets under Development Financial Assets Investments Other Financial Assets Other Non-Current Assets Total Non-Current Assets Current Assets Inventories Financial Assets Investments Trade Receivables Cash & Cash Equivalents Bank balances Other Financial Assets Other Current Assets Total Current Assets Total Assets

7 Balance Sheet (Liabilities) (Rs crs) As at 31 March 2018 (Audited) As at 31 March 2017 (Unaudited) Equity Equity Share Capital Other Equity Total Equity Non-Current Liabilities Provisions Deferred Tax Liability Other non-current liabilities Total Non-Current Liabilities Current Liabilities Financial Liabilities Borrowings Trade Payables Due to Micro and Small Enterprises Due to Others Other financial liabilities Other Current Liabilities Provisions Current Tax Liabilities (Net) Total Current Liabilities Total Equity and Liabilities

8 Ratios and Cash-flow Analysis Cash Flows (in Rs crs) FY 2018 I. Cash Flow from Operating Activity *Operating Profit before Working Capital Changes *Adjustment for Working Capital (12.49) *Direct Taxes Paid (30.49) II. Cash Flow from Investing Activity (14.02) *(Purchase)/Sale of Fixed Assets (8.98) *(Purchase)/Redemption of Investments in mutual funds (5.34) *Interest/Dividend Income 0.14 III. Cash Flow from Financing Activity (45.57) *Payment of Dividend (Including Dividend Tax) (48.95) *Interest Paid (4.41) *Secured Loans - Bank Overdraft (Net) 7.79 Cash and Cash Equivalents - Closing Ratios 31:03:18 31:03:17 Debt Equity ratio Current Ratio Debtors turnover (days) Creditors turnover (days) Inventory turnover (days) RONW 19.00% 19.00% ROCE 61.00% 61.00% The cash and financial position remains strong with healthy cash reserves (net of borrowings) of Rs.24,162lakhs. 8

9 Brands : Q4 FY Killer continues to be the flagship brand with share of 53% in total sales Easies grew by 21% Sales (Rs crs) Q Q % Change Killer % Brand wise sales break up Q4 FY 2018 Lawman % Integriti % 6% Q % 15% 23% 5% Easies % 4% Q % 18% 19% Other Brands % 6% Killer Lawman Integriti Easies Other Brands Total % Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 9

10 Brands : FY Sales for Killer brand for the year was higher by 2% at Rs crores Easies grew by 15% during the year Sales (Rs crs) FY 2018 FY 2017 % Change Killer % Lawman % Brand wise sales break up FY % 5% Integriti % FY % 18% 22% Easies % FY % 17% 21% Others % 4% 5% Killer Lawman Integriti Easies Other Brand Total % Revenue numbers are inclusive of excise duty. 10

Products : FY Q4 2017-18 Jeans continues to have the dominant share, contributing 65% to sales Sales from Shirts grew by 14% Sales (Rs crs)

62-17% Q4 2017 66% 16% 6% 5% T-Shirts 7.49 7.95-6% Q4 2018 65% 18% 6% 5% Others 6.06 6.

11 Products : FY Q Jeans continues to have the dominant share, contributing 65% to sales Sales from Shirts grew by 14% Sales (Rs crs) Q Q % Change Jeans % Shirts % Product wise sales break up Q4 FY % Trousers % Q % 16% 6% 5% T-Shirts % Q % 18% 6% 5% Others % 6% Jeans Shirts Trousers T-Shirts Others Total % Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 11

Products : FY 2017-18 Jeans continues to have the dominant share, contributing 65% to sales Shirts is the second largest product with a share of 17% Product wise sales break up FY 2018 Sales (Rs crs)

12 Products : FY Jeans continues to have the dominant share, contributing 65% to sales Shirts is the second largest product with a share of 17% Product wise sales break up FY 2018 Sales (Rs crs) FY 2018 FY 2017 % Change Jeans % Shirts % Trousers % 4% FY % 17% 7% 7% T-Shirts % FY % 17% 6% 7% Others % 5% Jeans Shirts Trousers T-Shirts Others Total % Revenue numbers are inclusive of excise duty. 12

13 Channels : Q MBOs continues to be the largest channel with 49% share E-commerce segment sales have grown by 160% Sales from Factory outlet and Overseas sales have doubled Channel wise sales break up Q4 FY 2018 Sales (Rs crs) Q Q % Change MBO % Retail % National Chain Stores % 5% e-commerce % Q % 22% 15% 3% 11% 1% Factory Outlet % Q % 21% 11% 3% 5% Overseas % MBO Retail National Chain Stores e-commerce Factory Outlet Overseas Total % Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 13

14 Channels : FY MBOs have maintained the largest share of revenues of 51% of sales Sales from Factory outlets have grown by 63% annually Channel wise sales break up FY 2018 Sales (Rs crs) FY 2018 FY 2017 % Change MBO % Retail % National Chain Stores % 4% FY % 22% 15% 4% e-commerce % 3% FY % 21% 13% 3% 5% Factory Outlet % MBO Retail 7% Overseas % National Chain Stores Factory Outlet e-commerce Overseas Total % Revenue numbers are inclusive of excise duty. 14

Regional Distribution : Q4 2017-18 East continues to be the dominant region with 35% share South has shown strong growth of 15% Sales (Rs crs) Q4 2018 Q4 2017 %

04-11% Q4 2017 37% 20% 18% 18% 7% Central 7.41 8.76-15% Q4 2018 35% 21% 21% 17% 6% Domestic Sales 111.96 117.

15 Regional Distribution : Q East continues to be the dominant region with 35% share South has shown strong growth of 15% Sales (Rs crs) Q Q % Change East % West % Region wise sales break up Q4 FY 2018 South % North % Q % 20% 18% 18% 7% Central % Q % 21% 21% 17% 6% Domestic Sales % *Population Distribution 26% 15% 21% 30% 8% Overseas % East West South North Central Total % Revenue numbers are inclusive of excise duty. However, for this presentation purposes, Revenue numbers are taken net of Excise Duty 15

Regional Distribution : FY 2017-18 Eastern Region grew by 9% and has maintained the

04 103.43-15% Region wise sales break up FY 2018 South 73.51 84.29-13% North 68.08 74.

79 0% *Population Distribution 26% 15% 21% 30% 8% Domestic Sales 434.27 452.

16 Regional Distribution : FY Eastern Region grew by 9% and has maintained the largest share at 40% Sales (Rs crs) FY 2018 FY 2017 % Change East % West % Region wise sales break up FY 2018 South % North % FY % 23% 19% 16% 6% FY % 20% 17% 16% 7% Central % *Population Distribution 26% 15% 21% 30% 8% Domestic Sales % East West South North Central Overseas % Total % Revenue numbers are inclusive of excise duty. 16

17 Retail stores Particulars COCO COMFO FOFO Total K-Lounge EBO Factoy Outlet 1 1 Total COCO - Company Owned Company Operated COMFO - Company Owned Management Franchisee Operated FOFO - Franchisee Owned Franchisee Operated Retail Stores (YTD) Existing New opened Converted Relocated/closed Work-in process Total Retail Stores

18 Thank You Disclaimer: Certain statements in this document or explanation thereof during discussions may be forward looking statements. Such forward looking statements are subject to certain risks and uncertainties like government actions, direct and indirect tax structures, local, political or economic developments, weather conditions deferring season, technological risks, overall market scenario and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Kewal Kiran Clothing Limited( KKCL ) will not be in anyway responsible for any action taken based on such statements and undertake s no obligation to publicly update these forward looking statement to reflect subsequent events or circumstances. 18

Kewal Kiran Clothing (KEWKIR) 1800

Kewal Kiran Clothing (KEWKIR) 1800 Result Update Rating matrix Rating : Hold Target : 1844 Target Period : 12 months Potential Upside : 2% What s changed? Target Unchanged EPS FY18E Changed from 63.4 to 65.9 EPS FY19E Unchanged Rating Unchanged