Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q2 FY22 Earnings Presentation
50 slides from Rupa &'s earnings presentation, November 2021
Slide 1: Regulation 30 disclosure cover letter to exchanges
® *® C RUPA — RUPA & COMPANY LIMITED Fis) Z ~ ’ Date: 01/11/2021 To, The Listing Department The Department of Corporate Services National Stock Exchange of India Ltd BSE Ltd Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Bandra (E), Mumbai - 400
Slide 2: Investor Presentation November 2021
INVESTOR PRESENTATION November 2021 Jae FRONTLIN= MACROMAN @) Bumchums TORRIDO foof ine femm@ra EURO Softline THERMOCOT MACROWOMAN@, EBs [6 U kK scetcs—————————i iis Premium Thermals “" FRUITHLOOM. 77 rrPt
Slide 3: Safe Harbor
Safe Harbor CRupa This presentation has been prepared by and is the sole responsibility of Rupa & Company Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation
Slide 4: Q2 & H1 FY22 Financial Highlights
Q2 & H1 FY22 FINANCIAL HIGHLIGHTS
Slide 5: Q2 FY22 Financial Highlights
ance”* C RUPA Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 368 crores Rs. 130 crores Rs. 71 crores Rs. 53 crores Bae My 171% aa +8” hay 117% Export Revenues Gross Profit Margin EBITDA Margin PAT Margin Rs. 9 crores 35.5% 19.4% 14.4% a +215% * On Consolidated Basis
Slide 6: H1 FY22 Financial Highlights
C RUPA Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 586 crores Rs. 215 crores Rs. 113 crores Rs. 80 crores Ba My 71% aay 111% May *22% Export Revenues Gross Profit Margin EBITDA Margin PAT Margin Rs. 14 crores 36.7% 19.4% 13.7% a +175% * On Consolidated Basis
Slide 7: Return ratios, cash and net debt
C RUPA Return on Capital Return on Equity (RoE) Cash & Bank Balances Employed (ROCE)} 24.4% 23.1% Rs. 119 crores Net Debt Net Debt to Equity Working Capital Days Rs. 194 crores 0.25x 179 days * On Consolidated Basis
Slide 8: Performance Highlights
nce Highlights CRUPA paiicuars (Rs. Crs) 2 FY22 er a1 FY22 an Yat Total Revenue 367.5 303.5 21% 585.5 513.1 14% Total Raw Material 143.6 123.8 217.8 235.0 Subcontracting Expenses 93.5 71.6 152.8 100.3 Value Addition 130.4 108.2 21% 214.9 177.8 21% Value Addition (%) 35.5% 35.6% 36.7% 34.7% Employee
Slide 9: Balance Sheet
C RUPA ASSETS (Rs. Crs.) ee ee STE TTT CEE OSS 24 C- Non - Current Assets Equity Equity Share Capital 8.0 8.0 Property, plant and equipment 185.5 168.9 Other Equity 762.1 721.6 Right of Use Assets 18.6 18.1 Total Equity 770.1 729.5 Capital work-in-progress 8.7 19.4 Liabilities Intangible Assets 5.5
Slide 10: About the Company
2s | a ABOUT THE COMPANY
Slide 11: Leading knitwear brand in India
#1 UndisouTea CRUPA ‘One of the leading and a 7,00,000+ Finished goods pieces per ff 1,25,000+ Retail Outlets day largest knitwear brand in India, engaged in the manufacturing, marketing, selling and distribution of =| 7,000+ men's and women's innerwear, thermal wear and fashion wear’ Vy 18 SKUs Sub
Slide 12: 50 Years of Creating Fashion
... With long lé CRUPA Acquired exclusive license from “FCUK" Acquired exclusive license from Fruit of the Loom, Inc Awarded the "Promising Brands- 2018” by The Economic Times 50 Years of Creating Fashion... 2016 2018 Took over the business of mined ey ene converted peuree ine 2009 Launo’ oNerand, M
Slide 13: Led by experienced leadership
... under the lea CRUPA Mr. Prahlad Rai Agarwala, Chairman Mr. Ghanshyam Prasad Agarwala, Vice Chairman Mr. Kunj Bihari Agarwal, Managing Director ¢ More than 50 years of experience in the textile industry ¢ More than 47 years of experience in the textile industry * More than 45 years of experience
Slide 14: And a highly qualified management team
...and a highl CRUPA Mr. Vikash Agarwal, President Mr. Rajnish Agarwal, President ¢ New generation industrialist, graduated from St. Xavier's College, Kolkata and New generation industrialist, Master's in Business Administration in Marketing from completed Diploma in Marketing from the University of
Slide 15: Awards and recognition
C RUPA Chosen by the Indian Consumer INDIAN ~)St TT RN =)ey yj A~4 PROMISING v4" CDS we ye 2011-2012 Most Promising Brand 2018 InNdywood Excellence Award Best Corporate Brand 2016 2017 Indian Power Brand 2011-12 The Economic Times The Economic Times Govt. of Telangana THE WORLD'S Depre Rupa & Co., L
Slide 16: What we offer: affordability, scalability, inspirational brands
We offer Atforaagpoiii CRuUPA 1. Affordability 2. Scalability 3. Inspirations Brands | nl Ez —— Anintegrated & efficient business model Accelerating the launch of Broad & unparalleled product State of Art Manufacturing facility | Inspirational brands portfolio ' Far-reaching footprints Deepening com
Slide 17: Broad and unparalleled product portfolio
1. Broad & UNPGrallelec CRUPA INnerwear Thermal Wear Casual / Athleisure Vests Vest / Upper Leggings & Causal Wear Brief / Drawer Lowers Socks Lingerie T-shirts Bermudas & Tracks Athleisure & Winter Fashion “Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the ma
Slide 18: Brands across a wide price range
1. Brands across G WIGE PiGETG Crupa | Diversified product offering across customer types, product categories and price segments Bouquet of Brands across Price Segments Super Premium fc u k Segment undorwoar WR ————. Gamut of products from Premi innerwear to casual and remium Segment athleisure wear
Slide 19: An integrated and efficient business model
2. An integraiea & Silicis CRuUPA Q_p Job ma zl 0} EE 0} ES Oo 0 Product Design & Development Manufacturing Process Logistics & Distribution Baa HH BH HB ¥ Manufacturing Process a) a) a) © © OOO Processing / Knitting Dyeing & Stitching Warehousing Distribution 9 y Bleaching Ge | annette oO 5 ae) Log
Slide 20: State of the art manufacturing facility
2. State of Ari MGNUTGET CRUPA Continues investment in R&D to produce environment-friendly clothes and minimize carbon footprints 9 gy Tirupur (Tamil Nadu) Bengaluru (Karnataka) Knitting: State of the Art Knitting process done at our manufacturing plants 25 tons/d + Dyeing: Best in class technology
Slide 21: Far-reaching footprints
2. Far-reacning tOGtenints CRuPA Pan India Presence @— RUPA enjoys very strong position in the East of India and has gained significant presence in the North followed by the West of India Strategy is to foray in newer markets by appointing 1,200+ ’ ®> new distributors and building experienced team a
Slide 22: Quality implemented at all levels
2. Quality ime Pursuit of quality without compromise is achieved Understanding the value of research, the ultra- Application of advanced technology at every by single-minded focus on innovation and modern laboratory at Rupa’s Dyeing and Processing level— from planning to production — gives research,
Slide 23: Environmentally friendly clothes and R&D
VamUlaieWisisiale) eels © CRUPA We putin d lot of research and effort to give Harnessing the power of technology allows to environmentally friendly clothes conform to international standards of fastness properties like rubbing, perspiration, light and washing Innerwear, thermals and hosiery products
Slide 24: Accelerating the launch of international brands
3. Accelerating CRUPA * Exclusive license to develop, manufacture, market and sell the FCUK brand of innerwear and related products in India ¢ Access to a global brand with strong brand recognition in the super premium segment Well-known & largest * Brings global expertise in improving other areas a
Slide 25: Deepening commitment through brand investment
3. Deepening CRUPA 6 6 Strong brand recall developed through consistent investment in advertising and brand promotion strategies 9 9 Over Rs. 1,000 crores spent on brand development in the last decade Consistent annual investment of 6-8% of sales in brand development to create a robust portfolio ; *
Slide 26: IT Infrastructure
4. |T Infrastructure = C RUPA aa. Significant decrease in operational time for article Article Fashion Price Fashion ATP management and maintenance SAP has an articla 30 matrix Design Schame and discounts Thanks to the scheduling capability with SAP, you can Data Record Error Rate will reduce ensuri
Slide 27: IT Infrastructure: Fashion demand planning
A. |T Infrastructure = 1 Fashion Demand Planning — Dealer Contracts, Order & Forecasts Contract- Forecast- MSO- CSO- vet Fabric- Garments- OBD- 1000 PCs ones canes pone 1200 PCs 1200 PCs 1200 PCs 1200 PCs
Slide 28: Growth Strategies
GROWTH STRATEGIES
Slide 29: Growth strategies
CRUPA Aim to increase share in premium + super premium category MAKING INDIA 1. High Margin PROUD Business SINCE 1968 Plan to grow through in-licensing or inorganic brand associations as well through organic growth of the Casual wear range * Plan to have presence through 7. Modern 2. Active & Leggin
Slide 30: High margin revenue stream
(Rupa gh margin revenue stream One of the Largest Premium Brand of Macroman M-Series and Macrowoman W-Series Innerwear, Leisurewear. Soortswear have top notch fabrics, are styled by cutting edge Direct distribution model with Activewear & Athleisure : Men & designers, available in a variety of color
Slide 31: Premium and super premium revenue stream
revenue stream C RUPA Vision to occupy the white space in the category and consumer mindspace where Premium + Super Premium* the aspirational Indian consumer can show off his style quotient and discerning (Rs. in Cr) taste Catering to the brand sensitive Indian youth, aspiring towards super-premium
Slide 32: Growth segments: Athleisure
rowth segments — Athleisure C RUPA bumchums ne “The most recent popular expression in design is "athleisure," one of those made-up terms that are so incredibly strange as to be flawlessly illustrative. That is, fashioners are fixated on garments that fit a to some degree general class of | being sui
Slide 33: Growth segments: Womenswear
wth segments —- Womenswear CRUPA Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge range of wardrobe essentials ho seek ease with a fashionable edge Softline aims to make ‘comfortable’ the new fashion statement. ‘Softline’ has always pushed the envelope in terms of innovation, va
Slide 34: Growth segments: Thermal wear
wth segments — Thermal wear CRUPA THERMOCOT TORRIDO Premium Thermals Your ideal companion during winter Exquisite range of thermal wear months. Now, you can stay warm and stylish in winters Available in a variety of exciting colours, trendy styles and alll sizes, it is ideal for Thermocot fabric is
Slide 35: Exports and new markets
and new markets CRuPA UAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | Indonesia | Nigeria | Congo | USA| Singapore | Russia and many more 9 Russia USA Middle East Strategy is to foray in newer markets by Countries 9 appointing new distributors and building experienced team and fur
Slide 36: Simplifying and optimising distribution channel
out Simplifying and Optimising CRuUPA Wholesale Distribution Channel Direct Distribution Channel | Agents | S——_—V[cs4s893uMa@nwaoououmh9]hIt—NN-IT]TTT Wholesalers Strategically move towards — . te . Distributors _ NY, Direct ( Distribution channel | for its product categories Company's Semi Wholesa
Slide 37: Modern trade, exclusive outlets and online to drive growth
drive business forward C RUPA MODERN RETAIL TRADE EXCLUSIVE BRAND OUTLETS ONLINE PORTALS Currently have 150+ stores Currently have 11 stores Present on all e-commerce sites Strategy: Strategy: Strategy: Increase Brand Footprints across all brands Create small to mid sized Franchise Store E-commerce
Slide 38: Industry growth drivers
ive growth CRuPA Increasing income levels Increasing penetration of and high spending Growth in penetration electronic media leading power of organized retail to branded products A A A Emergence of purpose- Changing Fashion Growing Uo aniZaTion specific innerwear (sporty, Trends casual, fashionable)
Slide 39: CSR Activities
CSR Activiiié More than 400 water filters and coolers installed at public places Rewarding the meritorious students, especially the underprivileged children in the society 38
Slide 40: CSR Activities
CSR Activities AN |S| care Event Coverage KOLKATA CHAPTER Commemorating the International Women’s Day on March 8, more than 220 Shalinis, took out a rally from our Duckback House office to AC Market. The energy and zeal of the a TT , young brigade was exemplary as they, strode forth brandishing feis
Slide 41: CSR Activities
CSR Activities Providing Food to the needy children Upliftment of all from the Tribal society
Slide 42: CSR Activities
CSR Activities ANNAPURN A RATION in association with Kolkata Municipal Corporation In a nourished body, | “Midday meal scheme is an resides a nurtured mind§ | Initiative by Govt. of INDIA. * Distributing over 12 lac nutritious meals every day across India ee * Kitchens with highest standards of clea
Slide 43: CSR Activities
CSR Activities
Slide 44: Historical Financials
HISTORICAL FINANCIALS
Slide 45: Historical Financials
Historical Find GC RUPA 1,313 257 175 1,093 1,120 1,149 1,015 975 800 155 15] 155 109 H2 536 605 698 66! 487 132 139 34 H2 66 73 99 9] y 66 62 H2 34 38 ae 36 24 H1 er er er FYI6* FYI7* .FYI8 -FYI9.—sFY20.—SséY2d ‘BBB FYI6*FYI7* Gg FYI8.—sFYI9.—s«&FY20~—~=«*@YY'2T ‘nhoia FYI6* FYI7* i & -FYI8.—sFYI9.
Slide 46: Historical Financials: ratios
Historical Fing CRUPA 30.8% 26.8% 23.0% 24.3% 25.1% 20.2% 19.0% 17.9% 18.4% 14.2% 13.6% 11.0% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Mar-16* Mar-17* Mar-18 Mar-19 = Mar-20 Mar-21 Debt to Equity Working Capital (Days) Inventory [J Debtors JJ Creditors 0.39 0.38 175 0.30 0.23 0.18 Mar-16* Mar-17*
Slide 47: Historical Financials: revenue, EBITDA, PAT
Historical Fing CRUPA Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,261 257 181 1,084 1,090 1,108 1,013 941 763 166 170 155 111 H2 535 600 678 677 A7A 131 141 125 95 93 100 78 77 80 74 109 H2 65 60 H2 34 40 64 55 35 ao G ‘EBiagai & ‘Hoga & & H1 485 NST) FY16* FY17* FY18 FY19 FY20 FY21 FY1
Slide 48: Historical Financials: ratios
Historical Find CRUPA 30.5% 25.6% 25.7% 25.1% 27.1% Z 22.9% 23.7% 19.1% 19.8% 17.2% 15.5% 13.3% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Mar-16* Mar-17* Mar-18 Mar-19 = Mar-20 Mar-21 Debt to Equity Working Capital (Days) Inventory [J Debtors JJ Creditors 0.39 172 0.30 122 108 105 110 116 109 0.22
Slide 49: Sharing profits
Sharing prot Payoutas f ‘ f ‘ f ‘ f \ : a % of | 24.5% | 30.1% | | 32.1% | | 33.2% | | 30.3% | | 27.7% | | 4, Profits A } A } ae Dividend % of FV Mark of gratitude to our shareholders 500 during the pandemic: Special Dividend of Rs. 2/- per equity share 300 300 300 275 275 275 250 200 300 FY13 FY14
Slide 50: Contact: Company and investor relations advisors
Company: CIN: L17299WB1985PLC038517 Mr. Sumit Khowala sumit.khowala@rupa.co.in Investor Relations Advisors : c orient capital Mr. Deven Dhruva Mr. Sagar Shroff +91 9833373300 +91 9820519303 deven.dhruva@linkintime.co.in sagar.shroff@linkintime.co.in FRONTLINS PREMIUM INNERWEAR macRoman@ BGumchums <<