Raymond Limited · NSE:RAYMOND
Raymond — Q3 FY2024 Earnings Presentation
52 slides from Raymond's earnings presentation, Feb 1, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
RL/SE/23-24/235 February 1, 2024 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500330 Symbol: RAYMOND Dear Si
Slide 2: Q3'FY24 Result Presentation
R AY M O N D L I M I T E D Q3’FY24 RESULT PRESENTATION 31st December 2023 1
Slide 3: Achieved New Milestone with Highest Quarterly Revenue & EBITDA
Achieved New Milestone with Highest Quarterly Revenue & EBITDA Led by Reported Reported REVENUE Branded Apparel EBITDA Highest Ever PAT Highest PAT in HIGHEST ₹184 Cr. ₹2,450 Cr. & Real Estate ₹426 Cr. EBITDA in Third quarter EVER QTR. a Quarter YoY Growth 22% YoY Growth 93% YoY Growth 11% Margin 17
Slide 4: Table of Content
Pages 1 Q3FY24 Highlights 4-9 2 Strategic Initiatives Undertaken 10-14 TABLE OF 3 Financial Highlights 15-19 CONTENT 4 Go To Market Initiatives 20-25 5 Segment Financials 26-43 6 Current Status and Outlook 44-46 7 Management 47-49 3
Slide 5: Q3FY24 Highlights
Q3FY24 HIGHLIGHTS SB SIX Raymon
Slide 6: Market Update
Market Update DOMESTIC MARKET EXPORTS MARKET Retail Market • US, UK & Europe: Order book • The quarter started on a strong note with remained healthy for formal wear Navratri in October followed by Diwali in category in garmenting inspite of November significant challenges of global inflation. • Pos
Slide 7: Q3FY24 — Continued Momentum for Profitable Growth
Q3FY24 — Continued Momentum for Profitable Growth With record Revenue and EBITDA performance REVENUE EBITDA & Margins (%) PBT & Margins (%)# 16% 23% (₹Cr.) (₹Cr.) (₹Cr.) 11% 17.6% 16.2% 10.5% 10.1% 15.9% 432 11.8% 9.9% 2,450 12.2% … 2,200 351 1,905 1,871 303 3.1% 186 222 257 1,286 226 157 0.9% 60 12
Slide 8: 10th Consecutive Quarters of Robust and Consistent Performance
10th Consecutive Quarters of Robust and Consistent Performance REVENUE EBITDA & Margins (%) 432 2,450 2,321 379 386 2,191 2,200 2,192 358 358 2,032 351 1,871 1,826 1,754 303 1,583 (₹Cr.) 17.3% 256 213 17.6% 235 16.3% 16.6% 17.6% 16.2% 15.9% 13.4% 14.0% 13.5% (₹Cr.) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2
Slide 9: Continued Focus on Optimizing NWC
Continued Focus on Optimizing NWC Peak Level 2,051 Real 1,855 1,927 1,925 Estate 227 Real NWC Estate 699 NWC 1,824 1,316 1,265 1,117 1,101 1,002 (₹Cr.) 1,226 Sep-19 Mar-20 Mar-21 Dec-21 Mar-22 Dec-22 Mar-23 Sep-23 Dec-23 NWC Days 98 76 71 • Key Initiatives: Strong emphasis on collections and efficie
Slide 10: Net Debt Free Years Ahead of Stated Guidance
Net Debt Free 2 Years Ahead of Stated Guidance Peak Level 2,378 1,859 With FMCG business Sale proceeds of (₹Cr.) 1,583 1,416 ₹2,825 Cr. 1,253 1,088 achieved Net Debt 932 free status at 689 Group level Sep-19 Mar-20 Dec-20 Mar-21 Dec-21 Mar-22 Dec-22 Mar-23 Dec-23 * 1,300* Achieved Surplus Cash at Gr
Slide 11: Strategic Initiatives Undertaken
Strategic INITIATIVES UNDERTAKEN 10
Slide 12: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING RECENT VALUE UNLOCKING THE CORE (FY21-23) & GROWTH INITIATIVES in FY24 Reset the Business Selling of Demerger* of model during Covid FMCG Business Lifestyle Business Established Real Engineering Business forays into Shaping Scalable Estate Business sunr
Slide 13: Deleveraging Action: Selling of FMCG Business
Deleveraging Action: Selling of FMCG Business Enable Net Debt Free and Provides Growth Capital Raymond Consumer Care Ltd. (RCCL) Slump Sale of Net of tax FMCG business^ Realization Enable Net Debt with trademarks ₹2,825 Cr. ₹2,200 Cr* Free and Provides of Park Avenue Proceeds Growth Capital (FMCG ca
Slide 14: Engineering — Building a Stronger Scalable Combined Business
Engineering — Building a Stronger Scalable Combined Business Our strategy is significantly boosted by this acquisition JKFEL MPPL Combined Entity ‘Newco’# Aero & Defence T&H 23% 30% SALES Auto SALES SALES* T&H ₹872 Cr. 43% Auto ₹750+ Cr. Auto ~₹1,600 Cr. 57% 77% 59% 11% Aero & Defence EBITDA: ₹123 C
Slide 15: Primed for Growth
Primed for Growth 3 Distinct Vectors of Growth RAYMOND GROUP 3 Distinct Vectors of Growth RCCL Raymond Ltd. To be a listed Lifestyle Company (Existing Listed Company) 1 Lifestyle Real Estate 2 3 Engineering Business ₹6,550 Cr. ~₹1,115 Cr. ~₹1,600 Cr. Aggregate Sales in FY23 Sales in FY23 Proforma Re
Slide 16: Financial Highlights
Financial HIGHLIGHTS SB SIX Raymon
Slide 17: Q3FY24 — Consolidated Results
Q3FY24 — Consolidated Results Particulars (₹ Cr.) Q3FY24 Q2FY24 Q3FY23 YoY 9MFY24 9MFY23 YoY Net Revenue 2,450 2,321 2,200 11% 6,597 6,145 7% Opex 641 620 588 9% 1,816 1,643 11% EBITDA (excluding ESOP) 432 386 351 23% 1,073 943 14% EBITDA Margin % 17.6% 16.6% 15.9% 16.3% 15.3% Reported EBITDA 426 38
Slide 18: Q3FY24 — Segment Results
Q3FY24 — Segment Results Post IndAS 116 Revenue EBITDA EBITDA % Q3 Q3 YoY Q3 Q3 YoY Q3 Q3 Particulars (₹ Cr.) FY24 FY23 (%) FY24 FY23 (%) FY24 FY23 Supported by Retail footprint Branded Textile 909 902 1% 197 189 4% 21.6% 20.9% expansion across channels BUSINESS* including LFS, EBO and MBO’s LIFESTY
Slide 19: 9MFY24 — Segment Results
9MFY24 — Segment Results Performance Driven by Lifestyle business Post IndAS 116 Revenue EBITDA EBITDA % 9M 9M 9M 9M 9M 9M Particulars (₹ Cr.) YoY% YoY% FY24 FY23 FY24 FY23 FY24 FY23 Branded Textile 2,530 2,462 3% 520 505 3% 20.6% 20.5% Branded Apparel LIFESTYLE 1,178 996 18% 134 91 47% 11.3% 9.2% G
Slide 20: Q3FY24 — Net Working Capital & Liquidity
Q3FY24 — Net Working Capital & Liquidity Particulars (₹Cr.) Q3’FY24 9MFY24 Free Cash Flow utilization Operating Cash Flow 319 117 • Mainly in increased NWC during this financial Free cash Flow 233 (198) year vs vs vs NWC lower in Dec-23 on QoQ due to: Particulars (₹Cr.) Dec’23 Sep’23 Mar’23 Dec’22 S
Slide 21: Go To Market Initiatives
Go To MARKET INITIATIVES SB SIX Raymon 20
Slide 22: Go to Market Initiatives
Go to Market Initiatives SUITINGS & SHIRTING Royal Trousering Super 120s This is an exquisite range of trousering fabrics woven in 55% Polyester and 45% 120s wool. Voyage Regio Italia Primafino Super 140s Premium trousering fabrics woven in Super 140s with blend composition of 55% Polyester and 45%
Slide 23: Go to Market Initiatives — REGIO ITALIA
Go to Market Initiatives — REGIO ITALIA 22
Slide 24: Go to Market Initiatives — Apparel
Go to Market Initiatives — Apparel COLORPLUS (Chinos) PARK AVENUE 23
Slide 25: 'Ethnix by Raymond'
‘Ethnix by Raymond’ Ethnix Range for Targeted Occasion Smart Ethnix Festive Collection Wedding Collection 24
Slide 26: Digital Imperatives
Digital Imperatives The New Norm of Business 1 SMART ANALYTICS 2 SMART RETAIL Synapse LIVE – Data Verse Customer Connect – Sentiment Solution • Realtime data sync in Synapse through pipeline with • Realtime collecting customer sentiments on every Dynamics 365 Finance & Operations purchase from store
Slide 27: Segment Financials
Segment FINANCIALS SB SIX Raymon
Slide 28: Branded Textile
Branded Textile Particulars Q3 Q3 9M 9M % Var. % Var. (₹Cr.) FY24 FY23 FY24 FY23 Net Sales 909 902 1% 2,530 2,462 3% EBITDA 197 189 4% 520 505 3% EBITDA margin 21.6% 20.9% 20.6% 20.5% - 1. Top line maintained at a same level in Q3FY24 Vs PY despite muted customer demand and challenging market condit
Slide 29: Branded Apparel
Branded Apparel Particulars Q3 Q3 % 9M 9M % Var. (₹Cr.) FY24 FY23 Var. FY24 FY23 Net Sales 437 364 20% 1,178 996 18% EBITDA 61 41 50% 134 91 47% EBITDA margin 13.9% 11.2% 11.3% 9.2% ➢ Recorded sales growth of 20% in Q3FY24 Vs PY, driven by: ▪ Enhancing distribution reach with the opening of 215 stor
Slide 30: Strategic Retail Network Expansion
Strategic Retail Network Expansion 2.69 Mn 2.49 Mn 2.36 Mn 2.34 Mn sq ft sq ft sq ft sq ft 1,512 1,453 1,409 1,400 380 345 316 296 EBO 46 43 40 37 MTM 1,086 1,065 1,053 1,067 TRS Dec'23 Sep'23 Mar'23 Dec'22 • ‘Ethnix by Raymond’: Reached a Milestone with the opening of ‘100th Ethnix store’ with 105
Slide 31: Garmenting
Garmenting Particulars Q3 Q3 % 9M 9M % Var. (₹Cr.) FY24 FY23 Var. FY24 FY23 Net Sales 281 282 0% 859 795 8% EBITDA 31 26 19% 78 64 22% EBITDA margin 10.8% 9.1% 9.1% 8.0% 1. Top line maintained at a same level in Q3 FY24 Vs PY: • Healthy momentum in orderbook maintained with China+1 adoption and cons
Slide 32: High Value Cotton Shirting
High Value Cotton Shirting Particulars Q3 Q3 9M 9M % Var. % Var. (₹Cr.) FY24 FY23 FY24 FY23 Net Sales 214 195 10% 617 575 7% EBITDA 23 21 11% 70 65 8% EBITDA margin 10.9% 10.7% - 11.4% 11.3% - 1. Sales growth of 10% in Q3F24 vs PY: • The demand was led by our cotton and linen fabric offerings by our
Slide 33: Engineering Business
Engineering Business Particulars Q3 Q3 % 9M 9M % Var. (₹Cr.) FY24 FY23 Var. FY24 FY23 Net Sales 217 208 4% 627 646 (3%) EBITDA 30 33 (9%) 85 89 (4%) EBITDA margin 13.9% 15.8% - 13.6% 13.8% - 1. The segment witnessed a growth of 4% in third quarter as compared to PY: • In domestic markets growth driv
Slide 34: Raymond Realty
Cqp EX Raymond Raymono | REALTY Go Beyond
Slide 35: Real Estate Business at a Glance
Real Estate Business at a Glance Development of Own Land & JDA led business model in MMR region THANE LAND: (~100 Acre^) JDA LED BUSINESS MODEL Asset Light Expansion FURTHER POTENTIAL AREA UNDER Development Development Appointed: Developer Appointed: Preferred ~60 Acre ~40 Acre Upcoming Project for
Slide 36: Existing Projects Booking Update
Existing Projects Booking Update (as on 31st December 2023) Q3 9M Project 10 towers with Particulars FY23 FY24 FY24 Till Date RERA carpet area % No of Bookings 542 100 287 2,738 UNIT SOLD ~1.7 Mn sq.ft. RERA Carpet Area* 0.31 0.06 0.17 1.48 Total Units Planned: Value of Bookings (Cr.) 663 103 338 2,
Slide 37: Existing Projects Booking Update
Existing Projects Booking Update (as on 31st December 2023) Project 2 Towers with Particulars Q3FY24 RERA Carpet Area Till Date % No of Bookings 63 170 UNIT SOLD ~0.5 Mn sq.ft. LAUNCHED UNITS RERA Carpet Area* 0.07 0.20 Total Units Planned: 440 Value of Bookings (Cr.) 157 426 Launched in July-23; To
Slide 38: Ten X Habitat
Ten X Habitat Three towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 & 5 Towers 6, 7, 8, 9 & 10 Central Amenities Building Elevation Reference Image Reference Image 37
Slide 39: The Address By GS
The Address By GS Construction in Full Swing Building Elevation Tower (A) 28th Floor Slab Completed Tower (B) 21st Floor Slab Completed Reference Image 38
Slide 40: Ten X ERA
Ten X ERA Launched 3rd Tower in Dec-23 Tower (B) • Plinth completed • Ground floor slab in progress Building Elevation Tower (C) • Podium-2 floor completed • Podium-3 slab work in progress Reference Image 39
Slide 41: The Address by GS Season 2
The Address by GS Season 2 Launched in Q2FY24 Building Elevation Tower (c) Foundation work in progress Reference Image (Tower C & Tower D) 40
Slide 42: Invictus by GS
Invictus by GS Launched in Q2FY24 Building Elevation Foundation work in progress Reference Image 41
Slide 43: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 42
Slide 44: Real Estate Business
Real Estate Business Q3 Q3 9M 9M Particulars (₹Cr.) % Var. % Var. FY24 FY23 FY24 FY23 Net Sales 439 292 50% 915 826 11% EBITDA 97 75 30% 199 217 (8%) EBITDA margin 22.1% 25.5% - 21.7% 26.2% - ➢ Strong booking momentum maintained during the quarter: ▪ With the booking value of ₹ 428 Cr in Q3FY24 vs ₹
Slide 45: Current Status & Outlook
Current Status & OUTLOOK SB SIX Raymon 44
Slide 46: Current Status of Operations & Outlook
Current Status of Operations & Outlook a) DOMESTIC MARKET 1 LIFESTYLE BUSINESS b) EXPORTS MARKET • Continued focus on innovation, new offerings and • Global inflationary and Geo-political situations casual wear around the world remain concerns • Expand retail store network mainly through asset light
Slide 47: Chairman & Managing Director on Q3FY24 performance
Chairman & Managing Director on Q3FY24 performance I am delighted to share that Q3 has been momentous quarter, as we have delivered 10th consecutive quarter of growth with highest ever revenue and profitability across businesses. Our retail expansion continued, and we have an aggressive plan to open
Slide 48: Management
mM Raymond MANAGEMENT
Slide 49: Raymond Group Led by
Raymond Group Led by S.L. POKHARNA RAVI UPPAL Director Non-Executive Chairman Raymond Ltd. JK Files & Engineering Ltd & RPAL GAUTAM HARI SINGHANIA Ex – L&T, JSW Chairman & Managing Director Currently – CMD of Steel Infra Solutions P. Ltd Raymond Ltd. 48
Slide 50: Raymond Management Team
Raymond Management Team S.L. POKHARNA AMIT AGARWAL K.A. NARAYAN JATIN KHANNA Director Group CFO President – HR Head – Corporate Raymond Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Development Essar Group Ex- Max Financial Services SUNIL KATARIA HARMOHAN SAHNI BALASUBRAMANIAN V ARVIND MATHUR CEO-Lifesty
Slide 51: 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 inte
Slide 52: Thank You
+12 gir Raymond THANK YOU [