Rajesh Exports Limited · NSE:RAJESHEXPO
Rajesh Exports — Investor Presentation (February 2019)
33 slides from Rajesh Exports's investor presentation, Feb 4, 2019
Slide 1: Investor Presentation February 2019
Investor Presentation February 2019
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Industry Dynamics 7 Operations Overview 12 Financial Highlights 20 Way Ahead 27 2
Slide 3: Company Snapshot
Company Snapshot
Slide 4: Company Overview
Company Overview World’s largest gold Company and the only end to end provider across value chain of gold ▪ Headquartered in Bangalore, India (1989). Extensive global manufacturing and marketing network with distribution 01 through Exports, Wholesale and directly to consumers by own Retail brand Wor
Slide 5: Journey So Far
Journey So Far 1988-1990 2002-2006 2014-2015 ▪ Set up World's largest ▪ Set up 80 SHUBH Jewellers ▪ Brothers Rajesh Mehta and manufacturing facility Showrooms in state of Karnataka Prashant Mehta joined family retail ▪ Sales cross USD 1 Bln ▪ Acquired World’s largest gold refinery, ▪ First organized
Slide 6: Management Team
Management Team Mr Rajesh Mehta (Chairman) Mr Prashant Mehta (Managing Director) In charge of overall functioning of Company In charge of manufacturing facilities BSc, 35 years of experience B.com, 37 years of experience Mr Michael Mesaric, CEO of Valcambi In charge of refining activities Mr Prashan
Slide 7: Industry Dynamics
Industry Dynamics
Slide 8: Industry - Gold Value Chain
Industry - Gold Value Chain Mining Refining Manufacturing Exports Wholesale Retail ▪ Begins with Mining and ends with Retail passing through Refining, Manufacturing, and Distribution in form of Exports and Wholesale ▪ Various value addition points across value chain • Mining constitutes different ty
Slide 9: Global Gold Industry
Global Gold Industry All major currencies have depreciated over the past ▪ Annually ~2,900 tons of gold mined globally; ~4,000 tons of gold consumed century relative to gold (difference accounted by recycled gold) ▪ 73% physical gold demand comes from developing countries; 54 % from China and India
Slide 10: Asian Markets
Asian Markets India ▪ Traditionally largest consumer of gold in the world. Gold embedded in the culture of India. ▪ This year, Indian consumer demand is expected to be between 900-1,000 Tons of gold, despite 400% rise in rupee gold price over the last decade ▪ Consumes ~85% of gold as jewellery, ~13
Slide 11: Asian Markets contd...
Asian Markets contd... South East Asia ▪ Indonesia, Thailand, Philippines, Malaysia, Singapore, Pakistan, Bangladesh and Srilanka - major gold consuming countries in South East Asia. ▪ Culture of these countries similar to Chinese and Indian cultures – gold embedded in their culture ▪ Majority of pe
Slide 12: Operations Overview
Operations Overview
Slide 13: Across value chain of Gold
Across value chain of Gold Wholesale of Gold Products Retail of Gold Products ▪ Wholesale presence in India and Middle East - ▪ Retail presence under own brand supplies gold jewellery directly to showrooms name “SHUBH Jewellers” ▪ Supplies jewellery to more than 5,000 showrooms in ▪ 81 showrooms in
Slide 14: Valcambi Acquisition
Valcambi Acquisition... ▪ Acquired Valcambi in 2015 for US$ 400 million ▪ World’s largest gold refinery & largest gold processor ▪ Headquartered in Balerna, Switzerland – 53 year old ▪ Over 200 employees ▪ Total refining capacity – 2,000 tons of precious metals ▪ Debt free, consistent profitable gro
Slide 15: Retail Brand
Retail Brand ▪ SHUBH Jewellers -Well known & respected brand in Karnataka ▪ Unique associate policy/franchise model – forge relationships with existing jeweller for readymade space and established customer base … In less than two years grown to 81 stores across Karnataka, India 15
Slide 16: Current Business Mix
Current Business Mix Exports • Exported to 632 tons 144 tons various countries across world Refining Sale of Bullion To Bullion & Central Wholesale Banks across world • Sold in India, UAE 949 tons 46 tons – directly to retail showrooms 200 tons 200 tons • Largest gold refiner in the world Retail • S
Slide 17: Key Strengths
Key Strengths Global presence across Extensive Global Marketing & 01 entire value chain of gold 05 Distribution Network Lowest cost gold jewellery Largest refining/ 02 producer globally incurring lowest gold wastage 06 manufacturing facilities combined with strong R&D High Quality Gold products Prof
Slide 18: Facilities
Facilities ▪ Refineries - Balerna, Switzerland and at Uttarakhand in India ▪ Facility – Bangalore (India), Cochin (India) and Dubai(UAE) ▪ Total Capacity – 2400 tons ▪ Total Capacity – 350 tons ▪ Valcambi, the world’s largest gold refinery and the largest gold ▪ Capability to produce wide range of h
Slide 19: Strong R & D
Strong R & D ▪ R&D units located at Bangalore (India) and Balerna (Switzerland) ▪ Engaged in developing new designs, new processes and technology for refining and gold jewellery manufacturing ▪ Instrumental in creating efficiencies and improving production in manufacturing and gold jewellery design
Slide 20: Financial Highlights
Financial Highlights
Slide 21: FY18 Balance Sheet Highlights
FY18 Balance Sheet Highlights 22 bps 9 bps RoA Current Ratio 5.37% 1.32% 4 bps Quick Ratio 1.21% High Returns combined with strong cash flows 21
Slide 22: Performance Trend (Quarterly)
Performance Trend (Quarterly) Volume (MT) Revenue (Rs. mn) 191 202 200 230 202 413048 438418 439267 533758 440172 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 EBITDA (Rs. mn) Net Profit (Rs. mn) 4328 5580 5780 4700 4606 3015 3692 3991 3148 3159 Q3 FY18 Q4 FY18 Q1 F
Slide 23: Performance Trend (Annual)
Performance Trend (Annual) Volume (MT) Revenue (Rs. mn) 580 900 832 1652114 2421320 1876854 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 EBITDA (Rs. mn) Net Profit (Rs. mn) 17688 17979 19463 10708 12459 12658 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 23
Slide 24: Segment Overview
Segment Overview Volume – by Segment Q3 FY2019: 202 Tons Bullion Export & Wholesale Retail Revenue – by Segment Revenue – by Geography China Far East 6% 11% Europe 31% Q3 FY2019: Rs. 440,172 mn Middle East 16% North America India 18% 18% Bullion Export & Wholesale Retail 24
Slide 25: P&L Summary
P&L Summary Q3 y-o-y Particulars (Rs. Mn) FY2019 FY2018 Growth (%) Revenue 440,172 413,048 6.6% Other income 88 41 114.6% Total Income 440,260 413,089 6.6% Raw Materials Consumed (434,335) (407,693) 6.5% Employee benefits expense (367) (343) 7.0% Other expenses (952) (724) 31.5% EBITDA (Incl. Other
Slide 26: Balance Sheet Summary
Balance Sheet Summary Rs. mn Mar-18 Mar-17 Rs. mn Mar-18 Mar-17 Shareholder’s Funds 71,746 58,841 Non-current assets 23,641 22,564 Share capital 295 295 Fixed assets 6,505 5,829 Reserves & Surplus 71,451 58,546 Intangible Assets 6,387 6,156 Non-current liabilities 3,315 4,753 Capital Work in progres
Slide 27: Way Ahead
Way Ahead
Slide 28: Way Ahead
Way Ahead… Revenue Contribution 1% 4% 14% 20% Others 45% 99% 96% 80% 55% 86% Retail FY18 3 Years 6 Years 9 Years 12 Years EBITDA Contribution 11% 7% 1% 33% 25% Others 89% 67% 75% 93% 99% Retail ...To refine 1,400 tons of gold and sell 1,200 tons directly to consumers 28
Slide 29: Multi Pronged Strategy
Multi Pronged Strategy... Existing Expansion by Leveraging New Opportunities Valcambi Shubh Jewellers E-Commerce Duty Free Shops (Retail) ... Leveraging on existing & new opportunities for profitable growth 29
Slide 30: Expansion by leveraging existing opportunities
Expansion by leveraging... Valcambi Shubh Jewellers (Retail) ▪ Large volumes leading to operating efficiencies & economies ▪ Well known & respected brand in Karnataka of scale ▪ Unique associate policy/franchise model – forge relationship ▪ Credibility & vast marketing network to enable distribution
Slide 31: New Opportunities
New Opportunities... E-Commerce Duty Free Shops ▪ Plans to set up E-commerce platform – offers 999 Fineness ▪ Many Asian & European countries levy customs duty making Valcambi brand gold bars of 1-100 gms to retails consumers gold bars and jewellery expensive compared to international ▪ Phase wise l
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by Rajesh Exports Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any co
Slide 33: Thank You
Thank You RAJESHEXPO 531500 RJEX IN REXP.BO Rajesh Exports Limited For further information, please contact: (CIN No. L36911KA1995PLC017077) No 4, Batavia Chambers Kumara Krupa Road, Kumara Park East Bangalore – 560001 www.rajeshindia.com For further information, please contact: Siddharth Mehta Rajes
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