TCNS Clothing Co. (TCNSBRANDS) Q4 18/19 earnings summary

Executive summary

• FY19 revenue rose 14.7% to ₹11,479.53 million; EBITDA increased 13.7% to ₹1,843.47 million and PAT grew 34.0% to ₹1,314.35 million, including a significant one-off tax benefit.

• Adjusted for pre-Ind AS 115, Q1 GST and constant-tax-rate effects, stated FY19 growth was 15.4% for revenue, 16.1% for EBITDA and 14.3% for PAT.

• The first year as a listed entity brought an upgraded ERP, omni-channel rollout and further retail expansion; no dividend was recommended as funds were being retained for expansion opportunities.

Financial highlights

• Revenue from operations was ₹11,479.53 million versus ₹10,009.91 million in FY18; total income was ₹11,554.74 million versus ₹10,077.23 million.

• EBITDA was ₹1,843.47 million versus ₹1,621.70 million; PBT was ₹1,616.23 million versus ₹1,448.28 million.

• PAT was ₹1,314.35 million versus ₹980.97 million; total comprehensive income was ₹1,318.23 million versus ₹977.67 million.

• FY19 basic and diluted EPS were ₹20.95 and ₹20.60, respectively, versus ₹16.12 and ₹15.36 in FY18.

Outlook and guidance

• Management expected organized retail to grow from USD 67 billion in 2017 to USD 252 billion by 2025, with women’s ethnic wear among the fastest-growing apparel segments.

• Retail expansion was planned to continue in FY20, with a similar number of store additions to FY19’s 76 EBO and 154 LFS doors.

• Management cited omni-channel, data analytics, brand investment and the large women’s ethnic-wear opportunity as areas supporting future growth.