TCNS Clothing Company Limited Q4 and FY 2023 Earnings Call Summary
Conference Call Overview
• Date: June 2, 2023
• Held on: May 29, 2023
• Key Attendees: Managing Director Anant Daga, CFO Amit Chand
• Compliance: No unpublished price-sensitive information shared; compliant with SEBI regulations
• Transcript available on investor relations website
Financial Performance Highlights
• Q4 Performance:
• Net revenues: INR 269 crores (15% YoY increase)
• Gross margins: 62% (down from 69% YoY)
• EBITDA: INR 12.2 crores
• PBT loss: INR 44.5 crores (compared to PBT of INR 0.7 crores in Q3 FY '23)
• Full Year Performance:
• Total revenues: INR 1,202 crores (34% increase from FY '22)
• PBT loss: INR 31 crores (worsened due to lack of rental concessions)
• Store count: 675 stores (closed underperforming locations)
Strategic Focus for FY '24
• Optimize product ranges
• Drive same-store sales
• Enhance online growth
• Manage working capital
• Proposed merger with Aditya Birla Fashion and Retail Limited (ABFRL) to leverage synergies
Online Strategy and Growth
• Shift from D2C to include B2B channels
• Targeting 20-25% growth in online sales
• Focus on premiumization in women's fashion
Store Expansion Plans
• Cautious approach in FY '24
• Potential opening of 30-40 stores based on market conditions
Shareholder Concerns
• Addressed perceived unfair treatment of minority shareholders in recent deal
• Explained deal structure and pricing rationale
Regulatory Approvals
• Required approvals from stock exchanges and Competition Commission of India
• Expected completion by late August or early September
Recent Initiatives
• Introduction of new categories in stores, including the Elleven initiative
• Positive sales contributions from new initiatives
Conclusion
• Call concluded with thanks to participants and invitation for further inquiries through Investor Relations.

TCNS Clothing Company Limited Q3 Earnings Conference Call Summary
Date and Context
• Date of Call: February 14, 2023
• Transcript Release: February 20, 2023
• Leaders: Managing Director Anant Daga and CFO Amit Chand
• Quarter Ending: December 31, 2022
Key Financial Highlights
• Net Revenue: INR 306 crores (down from INR 329 crores YoY)
• Year-to-Date Revenue: INR 933 crores (41% increase YoY)
• Profit Metrics: Decline in profit before tax (PBT) and profit after tax (PAT) due to absence of prior year rental concessions.
Business Strategy and Performance
• Sales Shift: Transition from B2B to D2C impacting reported sales but expected to benefit long-term.
• Store Openings: 16 new stores opened, totaling 664.
• Retail Recovery: Varied by region; strong growth in Tier 1 markets.
Inventory and Sales Insights
• Inventory Management: 10-15% of inventory will carry over; adjustments made for current demand.
• Sales Trends: Delayed winters positively influenced sales but increased discounting.
Future Outlook
• FY '24 Optimism: Improvements in internal range issues and consistent demand in ethnic wear.
• Store Expansion Plans: Continued store openings, potentially at a reduced rate depending on macroeconomic conditions.
Brand Performance
• Aurelia Brand: Facing challenges but performing well relative to peers.
• Bottomwear Strategy: Focus on elevated core products under the Elleven brand.
Direct-to-Consumer (D2C) Strategy
• D2C Components: Sales through own website and third-party platforms; currently no significant margin improvement in third-party sales.
• Profitability Goals: Aim for double-digit profitability as D2C scales up.
Challenges and Adjustments
• W Range Failure: Acknowledged execution gap and misjudgment of consumer preferences; new collection to be introduced.
• Large Format Store (LFS) Channel: Disruptions noted but overall performance remains ahead of last year.
Employee Incentives
• ESOP Schemes: Various schemes introduced over time to incentivize employees, culminating in a simpler 2018-2023 scheme.
Market Dynamics
• Ethnic Wear Demand: Recently increased, aligning with other categories as physical activities resume.
• Discounting Impact: Acknowledged as standard in the fashion industry; efforts to increase full-price sales.
Conclusion
• Management's Closing Remarks: Thanked participants and invited further inquiries through investor relations.