Raymond Limited · NSE:RAYMOND
Raymond — Q2 FY2022 Earnings Presentation
49 slides from Raymond's earnings presentation, Sep 30, 2021
Slide 1: Raymond Limited Q2FY22 Result Presentation
Raymond Limited Q2FY22 Result Presentation 30th Sep, 2021
Slide 2: 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 3: Table of Contents
Table of Contents Company Overview 4 Q2 Highlights 9 Financial Highlights 11 Key Focus Areas 15 Segment Financials 23 Current Status 46 3
Slide 4: Company Overview
Company Overview 4
Slide 5: 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 6: Raymond: A Group with Strong Leadership Position
Raymond: A Group with Strong Leadership Position # 1 player in worsted Amongst leading men’s 1st organised retailer in Manufacturer of Near 100% consumer suiting fabrics in India tailored suit manufacturers India world’s finest fabric awareness in the world One of the world’s largest One of the lead
Slide 7: Raymond Group at a Glance
Raymond Group at a Glance Segments Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel Raymond Apparel (100%) 49% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Tool
Slide 8: Management Team
Management Team S L Pokharna Amit Agarwal K A Narayan Jatin Khanna Director - Raymond Ltd Group CFO President – Head – Corporate Ex- JSW, Jet Airways, Human Resources Development Essar Group Ex- Wockhardt Ex- Max Financial Services Ltd Hemant Lakhotia Balasubramanian V Ganesh Kumar CEO – Tools & Har
Slide 9: Q2 Highlights
Q2 Highlights 9
Slide 10: Market Update
Market Update Progressive Improvement in Consumer Sentiments during the quarter Domestic Market: • Consumer Sentiment: Post gradual unlocking from July onwards, witnessed m-o-m improvement driven by accelerated vaccination drive & waning of 3rd wave fear • Trade Channel: Gradual pickup from August o
Slide 11: Financial Highlights
Financial Highlights 11
Slide 12: Consolidated Results – Q2FY22
Consolidated Results – Q2FY22 Particulars (Rs. Cr) Q2FY22 Q1FY22 Q2FY21 H1FY22 H1FY21 QoQ YoY Net Revenue 1,583 862 732 2,445 954 84% 116% Opex 424 347 304 771 579 22% 39% EBITDA 213 7 (52) 220 (218) EBITDA margin 13.4% 0.8% (7.1%) 9.0% (22.9%) Depreciation 60 61 83 121 167 Interest 58 55 75 113 147
Slide 13: Segment Results – Q2FY22
Segment Results – Q2FY22 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (Rs. Cr) Q2FY22 Q2FY21 Y-o-Y% Q2FY22 Q2FY21 Q2FY22 Q2FY21 Branded Textile 722 230 214% 121 (6) 16.8% (2.6%) Branded Apparel 221 71 211% 8 (74) 3.4% na Garmenting 212 187 13% 22 19 10.3% 10.2% High Value Cotton Shirting 148
Slide 14: Segment Results – H1FY22
Segment Results – H1FY22 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (Rs. Cr) H1FY22 H1FY21 Y-o-Y% H1FY22 H1FY21 H1FY22 H1FY21 Branded Textile 1,005 246 308% 100 (101) 10.0% na Branded Apparel 296 71 317% (22) (113) (7.3%) na Garmenting 310 287 8% 23 13 7.3% 4.5% High Value Cotton Shirting 2
Slide 15: Key Focus Areas
Key Focus Areas 15
Slide 16: Key Focus Areas
Key Focus Areas Liquidity Go to Market Retail Stores 2.0 Cost Rationalization Digital Imperatives Management • Continued focused on • Focus on working capital • Exclusive Merchandise • Create safe shopping • New Product & Range optimizing operating management for Online experience Development expens
Slide 17: Stores 2.0 - Safety protocol at stores
Stores 2.0 - Safety protocol at stores • Ensure safe & secured shopping experience for our customers • Includes sanitisation of trial rooms on a regular basis, post trial sanitisation of all garments & contactless payments 17
Slide 18: Cost rationalisation
Cost rationalisation Particulars (Rs Cr) Q2FY22 Q1FY22 Q2FY21 H1 FY22 H1 FY21 (QoQ%) (Y-o-Y %) Employment Cost 212 194 154 406 325 9% 37% A & SP 28 21 17 49 20 31% 64% Others expenses 185 131 133 316 233 40% 39% Total Opex 424 347 304 771 579 22% 39% Q2 opex up by 22% vs Q1, while revenue up by ~8
Slide 19: Net Debt reduction while maintaining liquidity levels
Net Debt reduction while maintaining liquidity levels NWC higher vs Jun-21 – Receivables increased due to higher sales in September catering to festive demand Particulars (Rs. Cr) Sep'21 Jun'21 Mar'21 Sep'20 vs Jun'21 vs Mar-21 vs Sep-20 Net Working Capital 1,263 1,209 1,117 1,359 54 146 (96) Ca
Slide 20: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Online Services Strengthening 3rd party tie-up Home Assist Service offerings: • Strategy to work in close collaboration • Call-back, Virtual meeting, Video calls & commerce and store appointments • Aggressive play on e-commerce marketplaces with over 2x
Slide 21: Go to Market Initiatives - Fabric
Go to Market Initiatives - Fabric Stretch and Sustainable Collection - Suiting Vibez Collection – B2C Shirting The Stretch Story | The Sustainable Way | • ‘SPANAX’ combines unique solution of comfort & • Latest collection of vibrant shirting fabrics titled ‘Vibez’ performance and offers two variatio
Slide 22: Go to Market Initiatives - Apparel
Go to Market Initiatives - Apparel New range portfolio Sustainable Collection Upcoming trends • Advanced flexi and auto fit range • Sustainable fashion • Active formal workwear in knit • Premiumization of the Products bases • Enhancing Formals range - Wrinkle Free and Creaseless 22
Slide 23: Segment Financials
Segment Financials 23
Slide 24: Branded Textile
Branded Textile
Slide 25: Branded Textile
Branded Textile Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 722 230 214% 1,005 246 308% EBITDA 121 (6) 100 (101) EBITDA margin 16.8% (2.6%) 10.0% - • Branded Textile segment sales reported strong growth of 214% o Growth driven by improvement in both primary and as second
Slide 26: Branded Apparel
is Jazz up celebrations with’
Slide 27: Branded Apparel
Branded Apparel Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 221 71 211% 296 71 317% EBITDA 8 (74) (22) (113) EBITDA margin 3.4% - • Branded Apparel segment sales grew by 211% o Strong growth was witnessed across all channels o EBO and LFS channels observed higher tractio
Slide 28: Retail Network
Retail Network
Slide 29: Wedding and Festive Campaigns in Stores
Wedding and Festive Campaigns in Stores 29
Slide 30: New Collection Displays in EBOs
New Collection Displays in EBOs
Slide 31: Exclusive Retail Network
Exclusive Retail Network 2.33 mn sq ft 2.35 mn sq ft 2.39 mn sq ft 1,459 1,486 1,420 331 349 EBO 301 37 47 37 MTM 1,082 1,091 1,090 TRS Sep’21 Jun’21 Mar’21 ~100% of our retail network of 1,420 stores operational as on 30th September, 2021 TRS witnessed 90%+ recovery on LTL basis and ~20% growth
Slide 32: Strong Distribution Network
Strong Distribution Network Branded Textile 5 • 20,000+ points of sale across 600+ 43 6 cities and towns 12 25 • 180+ Wholesalers 37 46 2 • 1,380+ MBOs 2 • Across TRS - Tier I to VI towns 65 151 11 1 88 1 81 31 1 Branded Apparel 70 82 22 • Presence in 500+ cities & towns 22 205 • 301 EBOs 71 • 5,425
Slide 33: Garmenting
Garmenting
Slide 34: Garmenting
Garmenting Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 212 187 13% 310 287 8% EBITDA 22 19 23 13 EBITDA margin 10.3% 10.2% 7.3% 4.5% • Garmenting segment sales grew by 13% o Led by growth in bulk business from US & UK retail markets along with gradual opening up of Europ
Slide 35: High Value Cotton Shirting
Lins eB High V Value Cotton Shirting aes es i
Slide 36: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 148 33 349% 249 39 540% EBITDA 26 (11) 32 (28) EBITDA margin 17.4% - 12.8% - • High Value Cotton Shirting segment sales grew by 349%, led by higher fabric sales in domestic markets and yarn sales • EB
Slide 37: Tools and Hardware / Auto Components
Tools and Hardware Auto Components
Slide 38: Tools and Hardware
Tools and Hardware Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 138 100 38% 248 120 106% EBITDA 18 15 31 1 EBITDA margin 13.4% 15.0% 12.5% 0.8% • Tools & Hardware segment achieved the significant milestone of highest sales in the history in a quarter o Topline grew by 38%
Slide 39: Auto Components
Auto Components Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY22 H1FY21 % Var. Net Sales 81 49 66% 151 70 116% EBITDA 15 10 27 9 EBITDA margin 19.0% 20.4% 17.6% 12.9% • Auto Components segment achieved the significant milestone of highest sales in the history in a quarter. o Sales reported strong gr
Slide 40: Raymond Realty
cj2 gar Raymond Raymono | REALTY Go Beyond
Slide 41: 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 Phase 1 - Project Total 10 towers with ~2.8 mn sq.ft of saleable area Details Total units planned for sale: 3,146 | 2BHK: 2,503; 1BHK: 643
Slide 42: Construction Update – Current Status
Construction Update – Current Status
Slide 43: Financial Update – KPI’s
Financial Update – KPI’s Particulars FY21 Q1FY22 Q2FY22 Till Sep’21 Bookings: No of Bookings 455 61 107 1,555 Area (Mn. Sq. ft.) 0.38 0.06 0.09 1.33 Value of Bookings (Rs. Cr.) 399 62 108 1,494 Customer Collections (Rs. Cr.) 260 147 126 754 P&L Snapshot Particulars (Rs. Cr) Q2FY22 Q2FY21 % Var. H1FY
Slide 44: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 44
Slide 45: Co-Creators
Co-Creators Master Architect Interior Designer Structural Consultant Landscape Construction Contractor Green Consultant 45
Slide 46: Current Status
Current Status 46
Slide 47: Current Status of Operations & Outlook
Current Status of Operations & Outlook • Expect improvement in consumer sentiments to continue led by festive and wedding season in H2 • Pick-up in primary sales driven by a rise in confidence among trade channels as fear of 3rd wave is waning and secondary sales is on increasing trajectory due to r
Slide 48: Chairman & Managing Director on Q2FY22 performance
Chairman & Managing Director on Q2FY22 performance “All our businesses have performed well in the second quarter. The consumer facing businesses are witnessing strong resurgence of demand and we witnessed an uptick on a week on week basis during the quarter. With the onset of festive and wedding sea
Slide 49: Thank You
< I 2 gir Raymona Thank You www.raymond.in