Raymond Limited · NSE:RAYMOND
Raymond — Investor Presentation (February 2023)
46 slides from Raymond's investor presentation, Feb 28, 2023
Slide 1: Raymond Limited – Investor Presentation (exchange filing letter)
RL/SE/22-23/211 February 28, 2023 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 S
Slide 2: Raymond Group Investor Briefing Presentation
Raymond Group Investor Briefing Presentation February 2023
Slide 3: Introduction, Current Performance, The Way Ahead
Introduction Current Performance The Way Ahead Lifestyle Real Estate Engineering
Slide 4: 97+ year old diversified group with strong presence across sectors
97+ year old diversified group with strong presence across sectors… Suiting Shirting Apparel Retail Presence Garmenting Engineering Real Estate Denim FMCG …Amongst the top 3 players in businesses we operate 3
Slide 5: Our Transformation Journey
Our Transformation Journey Current Primed for Growth Strengthening the Core Managing thru pandemic 2021 2020 2025 ▪ Reset the business model ▪ 5 quarters of record breaking performance: ▪ Revenue ~15% growth vs pre-covid ▪ EBITDA margin improved by ~400 bps to 16% ▪ Established Real Estate business
Slide 6: Delivering Consistent Performance
Delivering Consistent Performance
Slide 7: Consistently delivered strong QoQ performance in last 5 quarters
Consistently delivered strong QoQ performance in last 5 quarters ₹ Cr. Revenue EBITDA 380 17.4% 16.3% 15.9% 20.0% 16.2% 13.4% 15.0% 2032 2191 2200 1871 1754 180 303 358 358 351 235 10.0% -20 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 5.0% Pre-covid (2%) 11% 20% 1
Slide 8: Recent Quarter: Q3FY23 – Highest Q3 Revenue & Profitability in last 10 years
Recent Quarter: Q3FY23 – Highest Q3 Revenue & Profitability in last 10 years ₹ Cr. EBITDA 16% Revenue 15.9% 20.0% 18% 380 16.2% 18.0% 280 11.8% 16.0% 10.8% 12.2% 14.0% 1905 1871 2200 180 351 1706 303 12.0% 1286 226 80 185 157 10.0% 8.0% Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 -20 Q3 FY19 Q3 FY20 Q3
Slide 9: 9mFY23: Strong profitable growth with a sharp focus on execution
9mFY23: Strong profitable growth with a sharp focus on execution Growth over Particulars (INR Cr) 9M FY20 9M FY22 9M FY23 9M FY22 9M FY20 Total Income 5287 4316 6145 42% 16% Opex 1656 1249 1643 32% (1%) EBITDA 606 523 943 80% 56% EBITDA Margin 11.5% 12.1% 15.3% 324 bps 388 bps PAT* 264 (3) 408 NA 55
Slide 10: NWC days lower by over ~45% from peak level
NWC days lower by over ~ 45% from peak level NWC Days 98 2051 55 ₹ Cr. 1855 1731 1492 1359 1263 1316 1117 1002 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 ▪ Key initiatives: strong emphasis on collections and efficient inventory management & related production cycles ▪ NWC days re
Slide 11: Net debt reduction by ~₹1,450 Cr from peak level
Net debt reduction by ~ ₹ 1,450 Cr from peak level ₹ Cr. 2378 2066 1859 1817 1564 1416 1286 1088 932 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 ▪ Key Initiatives: Focused revenue growth, cost optimization & effective working capital management generating FCF ▪ Net debt reduction
Slide 12: Transformation Journey
mM raymond Transformation Journey
Slide 13: Our Transformation Journey
Our Transformation Journey Current Primed for Growth Strengthening the Core Managing thru pandemic 2021 2020 2025 ▪ 5 quarters of record breaking performance: ▪ Profitable growth across businesses: ▪ Reset the business model • India consumption story • Revenue ~15% growth vs pre-covid • EBITDA margi
Slide 14: Group Values at the core
Group Values at the core Trust ▪ One of India’s most trusted textile & apparel brands with near 100% awareness ▪ Strong relationships with stakeholders over last 9 decades Quality ▪ Recognized for its innovation and high-quality product offerings ▪ Loyal consumer base spanning domestic and internati
Slide 15: Growth Levers
Growth Levers Onboarded Domain experts with high pedigree in Board and management Building capabilities with high performance culture & strong customer focus Accelerating growth across businesses with a sharp focus on execution Raymond primed for growth in each of 3 pillars: Lifestyle, Real Estate,
Slide 16: Leadership Team Driving the Growth
Leadership Team Driving the Growth Gautam Hari Singhania Chairman and Managing Director Raymond Ltd Atul Singh S L Pokharna Rajeev Bakshi Ravi Uppal Executive Vice Chairman (Designate) Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Ex – Coca Cola, Colgate - Palmolive Raymond Co
Slide 17: Management Team with 300+ years Experience Driving Growth Across Businesses
Management Team with 300+ years Experience Driving Growth Across Businesses Atul Singh S L Pokharna Amit Agarwal K A Narayan Executive Vice Chairman Director - Raymond Group CFO President – HR (Designate) Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Colgate - Essar Group Palmolive Jatin
Slide 18: Lifestyle Business
mM raymond Lifestyle Business
Slide 19: Indian Economy: Growth Momentum Maintained
Indian Economy: Growth Momentum Maintained Growing Economy Uptick in Consumer Trends in Fashion China + 1 Strategy Sentiments Industry ▪ Expected growth ▪ Adopted by global ▪ Currently, K Curve ▪ Premiumisation brands • 6.1% in 2023 recovery witnessed ▪ Functionality and • 6.8 % in 2024 sustainabili
Slide 20: Branded Textiles: Sustain growth through Product & Service Innovation (Suiting)
Branded Textiles: Sustain growth through Product & Service Innovation Suiting Fabric Innovative Offerings Drive revenue growth through: ▪ Building categories through premiumization – wool rich blends ▪ Positioning from ‘Occasion Wear’ to ‘Daily Wear’ ▪ High impact product innovations including: Tech
Slide 21: Branded Textiles: Sustain growth through Product & Service Innovation (Shirting)
Branded Textiles: Sustain growth through Product & Service Innovation Shirting Fabric Innovative Offerings Drive revenue growth through: ▪ Building Raymond brand for shirting across the consumer chain ▪ Strong growth in linen category ▪ Premiumization in cotton through portfolio Regio Italia enhance
Slide 22: Service Innovation: Nurturing the tailoring ecosystem
Service Innovation: Nurturing the tailoring ecosystem Skill training in Investing in focused Personalized Casualwear training Engagement ▪ Develop tailoring ability to ▪ Ontime Delivery ▪ Made-To-Measure do casualwear in TRS: ▪ Soft skill training & • Immersive Experience Mapping fabrics, trims & gr
Slide 23: Branded Textiles: Raymond Home Innovative Offerings
Branded Textiles: Sustain growth through Product & Service Innovation Raymond Home Innovative Offerings ▪ ~$7 bn domestic market with growth drivers: Opulence: Cotton king size bedsheet Majestic: Super soft Blanket • Elevation in aesthetic value in home furnishings • Increased spending in home impro
Slide 24: Branded Textile: Continued Focus on Improving Margins
Branded Textile: Continued Focus on Improving Margins Focus on Optimizing Premiumization channel mix Focus on Continuing operational cost saving efficiency in initiatives manufacturing and supply chain 23
Slide 25: Branded Apparel: Sustain Profitable Growth Momentum
Branded Apparel: Sustain Profitable Growth Momentum Growth Enablers ▪ Sharpened Price-Product architecture for each brand Redefining brand architecture & role of each brand ▪ Widening product portfolio under brands Widening Product Portfolio • New launches in core portfolio • Increase casualization
Slide 26: Raymond Ready To Wear: Establish RR as a readymade premium fashion wear
Raymond Ready To Wear: Establish RR as a readymade premium fashion wear ▪ Premium ready to wear wardrobe solution provided ▪ Widening product portfolio • Stylish formals • Ceremonial • Casualization ▪ Channel expansion led by increase in retail & LFS network 25
Slide 27: Park Avenue: Establish as a hybrid formal wear
Park Avenue: Establish as a hybrid formal wear ▪ Widening product portfolio • Casualization • Athleisure collections • Stylish hybrid workplace dressing ▪ Channel expansion led by retail & LFS network and online 26
Slide 28: ColorPlus: Making the Brand Relevant to Millennials
ColorPlus: Making the Brand Relevant to Millennials ▪ Widening product portfolio • Establish leadership in Chinos Category • CP Sport • Casuals with focus on colors , comfort and premiumness as key product propositions ▪ Channel expansion led by retail & LFS network 27
Slide 29: Parx: Position as trendy Casual Wear for Gen Z
Parx: Position as trendy Casual Wear for Gen Z ▪ Widening product portfolio • Value for money casual wear • Denim • Athleisure ▪ Channel expansion led by MBO, LFS network and online 28
Slide 30: Ethnix: To build & establish dominance in Ethnix wear
Ethnix: To build & establish dominance in Ethnix wear Growth Enablers Create a unique proposition in men’s ethnic wear Widening Product & Category Portfolio Improve & align the route to market Develop tech enabled supply chain system 29
Slide 31: Wide Product Portfolio for All Occasions
Wide Product Portfolio for All Occasions ▪ USP: Differentiated design for all occasions, high quality offerings at affordable pricing, strong presence in wedding category ▪ Optimal portfolio mix of core ethnics (wedding) & smart ethnics (Casual) catering occasion wear to regular wear ▪ Expansion of
Slide 32: Ethnix range for targeted Occasion
Ethnix range for targeted Occasion Smart Ethnix Festive Collection Wedding Collection 31
Slide 33: Digitization
Digitization Focus on Developing Omni Channel Capabilities and Increase Revenue from Loyalty Program Thru Personalization MyRaymond.com Digital Platforms own E-comm site 100% YoY Seamless and Personalized growth with 1Mn visitors journey across touchpoints 12.2 Mn+ member base Made For You design it
Slide 34: Garmenting: Continue to maintain growth momentum in Exports
Garmenting: Continue to maintain growth momentum in Exports Growth Enablers Products ▪ Strong demand across the globe ▪ Adoption of “China + 1 strategy” by global brands ▪ Maintain critical supplier status for all key customers ▪ USP: High value shirts, trousers & suits category, complete solution p
Slide 35: Real Estate
mM raymond Real Estate
Slide 36: Real Estate residential market trends
Real Estate residential market trends New launches in 1st 3 quarters of 2022 surpassed the annual launches post 2015 Consumer rising preference for credible, established developer brands Apart from affordable & mid-segment, strong buyer interest in ‘value-for-money’ projects Continued growth momentu
Slide 37: Significant achievements till date
Significant achievements till date #1 in Thane* with ~3.0 mn sq ft of carpet area under development Market Leadership ▪ 1st 3 towers delivered 2 ~75% of total units sold ▪ 3rd project launched in Feb-23 Benchmarks achieved years ahead of RERA within 16 months of ▪ Overwhelming response from timeline
Slide 38: Raymond Realty – Growth story
Raymond Realty – Growth story Current 2022 2025 2021 ▪ Expansion plan: 2019 ▪ More offerings in ▪ 3rd project – TenX Era in Thane Thane – 2 tower with 0.6 ▪ Drive growth through ▪ Rated #1 player in mn sq ft of carpet area JDAs in MMR region Thane ▪ 2nd project – Address By (Feb-23) ▪ Ventured into
Slide 39: Engineering
mM raymond Engineering
Slide 40: Market leading position in precision engineering products
Market leading position in precision engineering products Steel Files Ring Gears Flexplates Drills Hand Tools Water Pump Bearings Power Tools # 1 in India with 60%+ # 1 in India with Sole domestic market share market share: manufacturer with ~25% #1 global installed capacity - ~55% in PV market shar
Slide 41: Engineering Business: Strong Domestic Demand while Exports Currently Impacted
Engineering Business: Strong Domestic Demand while Exports Currently Impacted Domestic Markets Exports Markets ▪ Pickup in manufacturing & construction Export Market: sectors driven by infrastructure ▪ Inflationary impacted global environment development ▪ Euro-currency depreciation & devaluation ▪
Slide 42: Engineering Business: Geared up for profitable growth
Engineering Business: Geared up for profitable growth ▪ Consolidate market leadership position mainly in the automotive and industrial files segment ▪ Continue to build relationships with white label customers in engineering products ▪ Increase wallet share with existing customers Consolidate ▪ Incr
Slide 43: The Journey ahead - Create consistent shareholder value
The Journey ahead - Create consistent shareholder value Current 2025 Primed for Growth 2021 Strengthening the Core Managing through pandemic 2020 42
Slide 44: 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 45: Thank You
C | ) gir Raymond Thank You
Slide 46: Questions and Answers
C | ) gir Raymond Questions and Answers