- 16 Aug 2022
- ICICIdirect Research
TCNS revenues inch towards pre-Covid levelsTCNSBRANDS - 453 Change: -4.90 (-1.07 %)
News: TCNS reported revenue recovery rate of 99% of pre-covid level. On a favourable base, revenues grew 195% YoY to Rs 276 crore (Q4FY22 : Rs 234 crore; Q1FY20: 280 crore). Gross margins improved on a YoY basis by 1330 bps to 69% (pre-covid : 68%). Due to positive operating leverage, the company reported EBITDA of Rs 31 crore (54% of pre-covid level) vs EBITDA loss of Rs25 crore in Q1FY22. Consequently, the company reported a PAT of Rs 2.4 crore vs net loss of Rs 36 crore in Q1FY22.
View: Ethnic wear category has been a laggard in term of revenue recovery. In a tough scenario the company has managed to match its highest ever Q1 revenues. During the quarter the company opened 17 stores (net basis) to reach a total store count of 616 stores. The company has 50+ locations in the pipeline and on track to add 25+ stores in Q2FY23 on a net basis. The online revenues also registered growth in Q1FY23 over a large base while the MBO business continues to build up with strong Monsoon-Festive order book. The company is expecting a strong recovery for the ethnic wear category in the ensuing festive season and is aggressively expanding its retail footprint and added a comprehensive product range to cater to the consumer demand.