TCNS Clothing Co. (TCNSBRANDS) Q4 20/21 earnings summary

Executive summary

• FY21 operations were severely disrupted by COVID-19 closures; revenue fell 44.7% YoY to ₹6,355.36m, with a net loss of ₹563.83m. Cash reserves ended above opening levels without external fundraising.

• Online and omnichannel execution partly offset offline weakness; the business recovered sequentially as restrictions eased, then faced renewed disruption from the second wave.

Financial highlights

• Revenue from operations was ₹6,355.36m vs ₹11,486.67m in FY20; EBITDA was ₹514.29m vs ₹2,074.03m.

• PBT was a loss of ₹769.38m vs profit of ₹660.63m; PAT was a loss of ₹563.83m vs profit of ₹694.12m.

• Total comprehensive loss was ₹547.65m; basic EPS was -₹8.85 vs ₹10.85 in FY20.

• Cost savings were ₹124m, ~30% against the prior year; annual savings included 45% on rent, 23% on salaries and 29% on overheads.

Outlook and guidance

• FY22 priorities include online growth, calibrated offline expansion via Project RISE and Project BHARAT, cash conservation, and faster design-to-shelf cycles.

• Online sales are expected to post another year of robust growth; the plan targets the highest-ever store additions in FY22.

• Cash conservation remains a priority, with working-capital reduction and cost controls intended to add to reserves; automated inventory management and warehouse capabilities are to be scaled up.

• The long-term ambition is for online and omnichannel channels to generate one-third of total business within three years.