Raymond Limited · NSE:RAYMOND
Raymond — Q3 FY20 Earnings Presentation
57 slides from Raymond's earnings presentation, Jan 22, 2020
Slide 1: Exchange filing cover letter
SECRETARIAL DEPARTMENT Jekegram, Pokhran Road No. I , Thane (WI · 400 606 Maharashtra, India CIN No.: LI 7 l l 7MHI 925PLCOOJ208 Tel: (91-22) 4036 7000 / 6152 7000 Fax: 191·22) 2541 2805 www.raymond.in RL/SE/AC/19-20/93 January 22, 2020 The Department of Corporate Services - CRD The National Stock E
Slide 2: Result Presentation Q3FY20
Result Presentation Q3FY20 Quarter ended 31st December, 2019
Slide 3: Disclaimer
Disclaimer • The particulars of this presentation contain statements related but not limited to revenues, financial results and supplemental financial information which has been compiled by the management, not to be construed as being provided under any legal or regulatory requirement and are not in
Slide 4: Table of Contents
Table of Contents Company Overview 4 Market Overview 10 Initiatives and Awards 12 Corporate Action 15 Financial Highlights 17 Ind-As 116 Impact 24 Performance of Segments 26 Way Forward 49 Annexures 51 3
Slide 5: Company Overview
sh Company Overview
Slide 6: Raymond Group: Introduction
Raymond Group: Introduction SUITING SHIRTING APPAREL RETAIL PRESENCE GARMENTING ENGINEERING REAL ESTATE DENIM FMCG A diversified group with interests in Textile & Apparel sectors as well as presence across diverse segments such as Real Estate, FMCG, Engineering in national and international markets
Slide 7: Raymond: A Group with Strong Leadership Position
Raymond: A Group with Strong Leadership Position No 1 player in 5th largest Suit 1st organised retailer Manufacturer of Near 100% worsted suiting manufacturer in in India world’s finest fabric consumer awareness fabrics in India the World One of the world’s 3rd largest player One of the largest Only
Slide 8: Raymond Group at a Glance
Raymond Group at a Glance Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel Raymond Apparel (100%) 47% Garmenting Dress Masters Suit Celebration Everblue Apparel Silver Spark (100%) Apparel (100%) (100%) Apparel (100%) High Value Cotton Ethiopia *(100%) Shirti
Slide 9: Raymond Group Leadership Team
Raymond Group Leadership Team led by Gautam Hari Singhania Chairman and Managing Director Raymond Limited Nirvik Singh Rajeev Bakshi Ravi Uppal Non Executive Chairman Non Executive Chairman Non Executive Chairman Raymond Apparel Limited JK Helene Curtis Limited Ring Plus Aqua Limited Current – COO o
Slide 10: Management Team
Management Team Sanjay Bahl Sanjay Behl Vipin Agarwal S L Pokharna K A Narayan Group CFO CEO-Lifestyle President – President – President – Ex- Landmark, HUL Ex- Rcom, HUL Corporate Commercial Human Resources Ex – Deepak Fertilizers, 36 years of Ex- Wockhardt Jindal Stainless Steel experience Sudhans
Slide 11: Market Overview
sh Market Overview 10
Slide 12: Market Overview
Market Overview Textile • Demand remained weak across markets on account of liquidity crisis and aggravation of rural stress • Margins remain under pressure due to weak consumer demand Apparel & Retail • Moderate SSSG due to subdued consumer sentiments • Margins impacted on account of higher discoun
Slide 13: Initiatives and Awards
sh Initiatives and Awards 12
Slide 14: Initiatives
Initiatives Broadening Retail Horizon through Asset light expansion* Ethnix Mini TRS 12 New Ethnix Stores in Expansion of the small Q3FY20, totaling to store formats continues – 25 stores as at Dec’19 362 stores as at Dec-19 Style Play Tailoring Hubs 11 New Style Play Stores 9 tailoring hubs added i
Slide 15: Awards
Awards National Awards for Marketing Retail Excellence Marketing Excellence Excellence ColorPlus bags TRS won 'The Most Won ‘Best Product Launch of GOLD award in Essential Innovative Retailer of the Eco Friendly Fabric’ at BTVI marketing at Great Lifestyle Year‘ at Star Retailer Awards Brands Awards
Slide 16: Corporate Action
sh Corporate Action 15
Slide 17: Corporate Actions in Q3FY20
Corporate Actions in Q3FY20 Preferential Issue through combination of equity shares and Compulsorily Convertible Preference Shares (CCPS) cumulatively amounting to Rs. 350 Crs by Raymond Ltd to JKIT Preferential Equity Shares and CCPS issued at Rs.674 per share [(higher of 2 week & 26 week Allot
Slide 18: Financial Highlights
sh Financial Highlights 17
Slide 19: Financial Highlights – Q3FY20
Financial Highlights – Q3FY20 Revenue (₹ Cr) EBITDA (₹ Cr) & Net Profit (₹ Cr) EBITDA margin % 12% 10.9% 1,903 196 1,706 9.6% 185 182 -2% 38 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Net Debt to Equity Ratio NWC days* A&SP & % to revenue 3.7% 3.7% 1.1 102 105 0.7 71 63 Dec'18 Dec'19 Dec'18 Dec
Slide 20: Consolidated Results – Q3 & 9mFY20
Consolidated Results – Q3 & 9mFY20 Pre Ind-AS 116 Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% YTD-Dec'19 YTD-Dec'18 Y-o-Y% Net Revenue 1,903 1,706 12% 5,283 4,871 8% Net Sales 1,885 1,675 13% 5,204 4,774 9% EBITDA 182 185 -2% 480 507 -5% EBITDA margin 9.6% 10.9% 9.1% 10.4% PBT before exceptions 62 6
Slide 21: Segment Results – Q3 FY20
Segment Results – Q3 FY20 Q3FY20 - Pre Ind-As 116 Revenue EBITDA Particulars (INR Cr) (INR Cr) Growth(YoY%) (INR Cr) Margin Change Branded Textiles 866 2% 148 17.0% 228 bps Branded Apparels 488 23% 2 0.3% -188 bps Garmenting 239 29% 9 3.8% 2 bps High Value Cotton Shirting 168 5% 23 13.9% -8 bps Tool
Slide 22: Segment Results – 9m FY20
Segment Results – 9m FY20 YTD Dec'19 - Pre Ind-As 116 Revenue EBITDA Particulars (INR Cr) (INR Cr) Growth (YoY%) (INR Cr) Margin Change Branded Textiles 2335 1% 307 13.1% 9 bps Branded Apparels 1329 15% 38 2.8% 33 bps Garmenting 662 17% 23 3.5% -222 bps High Value Cotton Shirting 503 2% 77 15.3% 135
Slide 23: Balance Sheet & Performance Indicators (Pre Ind-AS 116)
Balance Sheet & Performance Indicators (Pre Ind-AS 116) Particulars (INR Cr) Dec'19 Dec'18 Net Worth 2,637 1,963 Net Debt 1,946 2,195 Cash Flow from Operations 180 233 Free Cash Flow 81 89 Key Ratios as on Dec'19 Dec'18 Net Debt / Equity 0.7 1.1 Net Working Capital Days* 105 102 Net Working Capital
Slide 24: Deleveraging of Balance Sheet
Deleveraging of Balance Sheet Debt reduction by Rs 415 Cr in the quarter 350 cr from net proceeds of Gross Debt Land Sale Gross Debt Sep’19 Dec’19 2,835 cr 2,420 cr 65 cr from Internal accruals • Gross Debt reduced by Rs. 189 Cr from Rs. 2,610 cr in Dec’18 to Rs. 2,420 cr as on Dec’19 23
Slide 25: Ind-As 116 Impact
sh Ind-As 116 Impact 24
Slide 26: Q3 FY20 - IND AS 116 – Lease Impact Summary
Q3 FY20 - IND AS 116 – Lease Impact Summary Particulars (INR Cr) Pre IND AS 116 Impact Post IND AS 116 Net Revenue 1,903 2 1,905 Net Sales 1,885 - 1,885 EBITDA 182 43 226 EBITDA margin 9.6% 2.3% 11.8% Depreciation 55 33 88 EBIT 127 11 138 Interest Cost 65 12 78 PBT before exceptions 62 -2 60 PBT mar
Slide 27: Performance of Segments
sh Performance of Segments 26
Slide 28: Branded Textile
‘ Branded Textile
Slide 29: Branded Textile
Branded Textile YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 866 848 2% 2,335 2,321 1% EBITDA 148 125 18% 307 303 1% EBITDA margin 17.0% 14.8% 228 bps 13.1% 13.0% 9 bps Post Ind-AS; EBITDA for Q3FY20 is Rs 158Cr and EBITDA Margin is 18.3% • Moderate topline gr
Slide 30: Branded Textile
Branded Textile Suiting Growth of 1% in domestic business mainly led by price hike benefit • Undertaken in the worsted wool portfolio & combo packs (low priced products) • However, domestic volume growth impacted by continued lower off-take in the wholesale channels on account of lower secondary s
Slide 31: Branded Apparel
Branded Apparel
Slide 32: Branded Apparel
Branded Apparel YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 488 397 23% 1,329 1,158 15% EBITDA 2 9 -82% 38 29 30% EBITDA margin 0.3% 2.2% -188 bps 2.8% 2.5% 33 bps Post Ind-AS; EBITDA for Q3FY20 is Rs 29 Cr and EBITDA Margin is 5.9% • Branded Apparel growth d
Slide 33: Branded Apparel
Branded Apparel High growth in MBO channel 93% y-o-y : Higher primary sales driven by large growth in orders for 2HFY20 placed in Autumn Winter (AW19) season booking in Jan-19 However, weak macro economic factors & low consumer sentiment had an adverse impact on secondary & tertiary sales result
Slide 34: Retail Network
Retail Network
Slide 35: Exclusive Retail Network
Exclusive Retail Network 90 additions 50 40 0 0 0 7 2.4 mn 2.4 mn sq ft sq ft 7 closures 1,584 1,501 411 EBO 378 MTM * 67 67 TRS 1,056 1,106 Sep 19 TRS MTM EBO TRS MTM EBO Dec 19 • During the quarter Added 90 new stores and closed 7 stores 99% of stores added on Franchisee basis in line with our
Slide 36: Strong Distribution Network
Strong Distribution Network Branded Textile 4 • 20,000+ points of sale across 55 5 600+ cities and towns 16 29 • 192+ Wholesalers 51 59 • 1,360+ MBOs 2 • Across Raymond Shop (TRS) - 66 172 12 1 Tier I to VI towns 75 1 90 74 29 85 1 Branded Apparel 19 • Presence in over 500 cities and 22 towns 234 •
Slide 37: Garmenting
Garmenting
Slide 38: Garmenting
Garmenting YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 239 185 29% 662 567 17% EBITDA 9 7 30% 23 32 -29% EBITDA margin 3.8% 3.8% 2 bps 3.5% 5.7% -222 bps Post Ind-AS; EBITDA for Q3FY20 is Rs 10 Cr and EBITDA Margin is 4.2% • Grown led by higher exports to US
Slide 39: High Value Cotton Shirting
High Value Cotton Shirting
Slide 40: High Value Cotton Shirting
High Value Cotton Shirting YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 168 159 5% 503 492 2% EBITDA 23 22 5% 77 69 12% EBITDA margin 13.9% 14.0% -8 bps 15.3% 14.0% 135 bps No impact of Ind-AS 116 • Topline growth led by higher domestic fabric & yarn sales • E
Slide 41: Tools & Hardware Auto Components
Tools & Hardware 40 Auto Components
Slide 42: Tools and Hardware
Tools and Hardware YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 103 100 3% 297 300 -1% EBITDA 13 12 7% 33 35 -5% EBITDA margin 12.3% 11.8% 46 bps 11.1% 11.6% -46 bps No impact of Ind-AS 116 • Revenue growth mainly led by better off-take in Latin America & Afri
Slide 43: Auto Components
Auto Components YTD- YTD- Particulars (INR Cr) Q3 FY20 Q3 FY19 Y-o-Y% Y-o-Y% Dec'19 Dec'18 Net Sales 41 64 -36% 161 191 -15% EBITDA 6 14 -57% 28 43 -37% EBITDA margin 14.6% 21.8% -718 bps 17.1% 22.8% -571 bps No impact of Ind-AS 116 • Revenue de-growth due to sector slowdown which impacted orders fr
Slide 44: Raymond Realty
43 raymono REALTY h Raymond
Slide 45: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Overall 20 acres of residential development Project Phase 1: ~14 acre of development • Total 10 towers with ~2.7 mn sq.ft of saleable Phase 1 area Project Details • Total units available for sale: 2,960 • 2BHK: 2,330 1BHK: 630 • To
Slide 46: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system
Slide 47: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant
Slide 48: Financial Update – KPI's
Financial Update – KPI’s Particulars Till Dec-19 Bookings: - No. of bookings 898 - Area (Mn. Sq.ft.) 0.82 - Value of Bookings (Rs. Cr.) 919 Customers Collection (Rs. Cr.) 200 Capital Employed^ 359 Particulars(₹ Cr) Q3 FY20 9M FY20 Revenue 43 139 EBITDA 2 19 EBITDA % 4.9% 13.4% ^ Capital Employed exc
Slide 49: Construction Update
Construction Update Tower - A Tower - C Tower - B Tower - D • 3 slabs completed for 3 towers • Commenced construction for 4th tower
Slide 50: Way Forward
Way Forward 49
Slide 51: Way Forward
Way Forward In 4th quarter, continued lower consumer sentiments & liquidity concerns in the trade channel Aggressive discount offerings continues in 4Q 4QFY20 guidance: Overall, stable topline as compared to previous year Consol EBITDA margins inline with 3Q Branded Textile: Improvement
Slide 52: Annexures
Annexures 51
Slide 53: Consolidated Financial Overview
Consolidated Financial Overview Revenue (Rs Cr) Profitability Ratios 11.2% 9.6% 9.1% 10.5% 7.7% 9.1% 8.9% 6.8% 5,296 5,509 6,025 6,708 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 EBITDA Margin ROCE India Global Leverage Indicators 4.0 FY 19 Revenue by 3.5 Geography 83% 17% 3.2 2.9 1.0 1.0 1.0 1.0 FY 19:
Slide 54: Profit & Loss Account Summary
Profit & Loss Account Summary Particulars (Rs Cr) FY16 FY17 FY18 FY19 Revenue 5,296 5,509 6,025 6,708 EBITDA 506 423 546 702 EBITDA % 9.6% 7.7% 9.1% 10.5% EBIT 347 266 376 506 EBIT % 6.6% 4.8% 6.2% 7.5% PBT before exceptional 158 88 192 273 PBT % 3.0% 1.6% 3.2% 4.1% Net Profit 85 26 135 168 Note: FY
Slide 55: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary Particulars (Rs Cr) FY16 FY17 FY18 FY19 Branded Textile Revenue 2,702 2,714 2,915 3,153 FY19 LTL Margin: EBITDA % 17.3% 14.1% 15.7% 13.8% 14.7% Branded Apparel Revenue 1,119 1,270 1,424 1,647 FY19 LTL Margin: EBITDA % 2.0% -1.0% 1.6% 3.7% 4.2% High Value Cotto
Slide 56: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary Particulars (Rs Cr) FY16 FY17 FY18 FY19 Garmenting Revenue 593 639 691 779 FY19 LTL Margin: EBITDA % 8.3% 8.4% 5.2% 5.1% 5.9% Tools & Hardware* Revenue 394 350 365 401 FY19 LTL Margin: EBITDA % 4.7% 2.0% 9.0% 10.7% 10.7% Auto Components* Revenue 176 164 218 25
Slide 57: Thank You
nh Raymond Thank You www.raymond.in