Performance Highlight

ABC FASHION PRIVATE LIMITED FY 2021–2022

 Index

 Key Performance Highlight

 Liquidity Analysis

 Reflection of Financial position

 Finance Agenda FY 2022 -2023

 Way forward Business Plan

 Key Performance Highlight

YOY TO Growth 76% Revenue Analysis

Turnover
Rs 23,999 Lakhs Turnover Total Revenue 75% YOY
Rs 10,335 Lakhs Core Revenue from operations
• Volume
Gross
EBITDA Net profiit EPS • Price
Profit
• Product Mix
37.5% 12.8% 8.7% 99.52 Other Income (short term loans)
87% YoY,
0.55% YoY Margin by 0.53% 86% YOY
Cost 75% YOY
Total Cost 88% of revenue:- - Employee benefit exp 28%
COGS margin of 62.5 %, Other exp 19%, Depn 0.45% Employee benefit exp 5%, (scale up in operations)
finance cost 0.04%. int coverage ratio – 281 times (No risk to the lenders) - Other expenses 77%
- Finance cost 84%
- Depn 21%
Increase in revenue by 76% & net profit margin has increased
by 0.53% only – need implementation of cost optimisation & - Deferred tax asset in CY 99.85 L
savings techniques
 Liquidity Analysis
Current ratio 1.15:1 Liquidity ratio 0.6:1
Working capital Improvement required:-

Working capital 2559 Lakhs  Payment terms are well managed and
Working Capital Rs 2059 Lakhs YOY defined

 Efficient Inventory management

Total asset TO 1.31 Times AR days 0.55 days policies needs to be implemented with
right ROQ and ROL levels
Efficiency Inventory TO days 212
Inventory TO 1.7 times Test days  Better DOH management

Fixed asset TO 154 times AP days 353 Days  Short term investments needs to be
strengthened for better liquidity

Operationally the company is efficient. However, better working capital

management techniques needs to be implemented
 Reflection of Financial Position

Debt Equity
ROCE Net Capital Return on NW
Ratio
TO ratio

2021-2022 5:1
2021-2022 80 % 2021-2022 9 times 2021-2022 60% 2020- 2021 10:1
2020- 2021 108% 2020- 2021 82%
2020- 2021 27 times Compared to LY the
Compared to LY capital Compared to LY WC capital gearing has
efficiency has reduced Compared to LY WC capital efficiency has reduced improved.
efficiency has reduced

Key Action Plan for fair reflection of financial position

Better working capital

Efficiency in operations: Optimise capital structure –
management- negotiations
Cost optimisation/ savings leverage
wherever requried
 Finance Agenda FY 2022 - 2023
Efficient working capital management
Strengthening Operations & Governance
• Optimum Inventory level
• Value addition in the processes (ROQ ,ROL & DOH
management)
• Driving Cost savings
• Better Negotiation with
• Distribution cost optimisation stakeholders for price, timely
delivery & payment terms
• Savings for fixed assets
investments
Stewardship
• Governance of the Balance sheet
through timely reviews –
Integrity of accounts
• Fair maintenance of records, fair
reflection of financial position
• MSME payments and statutory
compliances
• Strong Controls and timely risk
identification process
 Revenue Cost Savings & Build the Core
Optimisation reduction

 Strategic sourcing  Compelling strategy

 Market penetration
 Cost optimisation  Strengthen the core products
 Increase the No of times of
 Leverage distribution cost  Build innovation capabilities
product - trends
 Defend PL against Inflation  Right Segregation and focus on
 Focus of Different future
 Efficient production premium, mass or popular
channels (E-com, D2C) products without cannibalization
capabilities
 Communication capabilities  Portfolio transformation
(advertisements &  Focus on seasonality

promotions)  New Variant – differentiation

factor

Way Forward Business Plan