Company Update - TCNS Clothing - ICICI Direct

TCNS Clothing reported decent Q4FY21 results with marginal revenue growth of 1% YoY to Rs. 221 crore. On adjusted base, recovery was ~76% of pre-Covid levels (vs. 72% in Q3FY21). The revenue recovery rate would have been better but the pace of recovery was hampered by partial lockdowns in various states from mid-March onwards. Non-metro cities continued to recover at a swift pace with Tier II, III cites recovering at ~95% of pre-Covid levels. Stores in metro cites are lagging behind with 75% recovery rate. Gross margins remained flattish YoY at 57.4% but continue to remain below average level of 60%+ due to a change in channel mix (higher online sales). Sustained focus on sharp rationalisation of operating overheads resulted in the company reporting EBITDA of Rs. 23.0 crore vs. loss of Rs. 4.8 crore in Q4FY20. PAT for the quarter was at Rs. 3.9 crore vs. net loss of Rs. 23.7 crore in Q4FY20. Despite significant loss in revenues and profitability during the year, the company has maintained its balance sheet strength with cash & investments worth Rs. 181 crore as on FY21 (vs. Rs. 171 crore in FY20).

For details, click on the link below: Link to the report

Shares of TCNS Clothing Co. Ltd was last trading in BSE at Rs.589.45 as compared to the previous close of Rs. 600.3. The total number of shares traded during the day was 25863 in over 1263 trades.

The stock hit an intraday high of Rs. 624.95 and intraday low of 580. The net turnover during the day was Rs. 15572990.

Source : Equity Bulls

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