Raymond Lifestyle Limited · NSE:RAYMONDLSL
Raymond Lifestyle — Q2 FY25 Earnings Presentation
44 slides from Raymond Lifestyle's earnings presentation, Nov 5, 2024
Slide 1: Exchange filing cover letter
(Formerly known as Raymond Consumer Care Limited) RLL/SE/24-25/10 November 5, 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 -
Slide 2: Q2 FY25 Results Presentation
Q2 FY25 RESULTS PRESENTATION 5 th November 2024
Slide 3: Table of Contents
TABLE OF CONTENTS Q2 FY25 Highlights 03 - 07 Financial Performance 08 - 10 Segmental Performance 11 - 28 Raymond Lifestyle — 2.0 29 - 38 ESG Goals 39 - 40 2
Slide 4: Delivered Stable Quarterly Performance
Delivered Stable Quarterly Performance Amidst Subdued Consumer Demand FINANCIAL OPERATING PERFORMANCE HIGHLIGHTS TOTAL INCOME YoY QoQ New Stores ₹1,735 Cr. (6%) 39% Added 52 EBITDA YoY QoQ New Customers ₹242 Cr. (21%) 171% Garmenting Acquisition Ongoing Margin 13.9% PBT* YoY QoQ Categories Launch of
Slide 5: Q2'FY25 Highlights
Q2’FY25 HIGHLIGHTS 4
Slide 6: Q2 Reflection
Q2 Reflection Market and Economy Updates ECONOMY UPDATES Discretionary spending Geopolitical tensions and persistently Subdued impacted primarily due to high inflation continued to remain one of consumer demand. inflation. the key risks in international market. MARKET UPDATES Lower offtake due to Ba
Slide 7: Q2'FY25 Performance Highlights
Q2’FY25 Performance Highlights Gradually Improving Performance TOTAL INCOME EBITDA & Margins (%) PBT & Margins (%)# (₹Cr.) (₹Cr.) (₹Cr.) 350 16.6% 300 11.0% 250 13.9% 200 306 1,849 6.5% 1,735 150 203 1,250 242 100 7.1% 112 89 50 - (32) Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25
Slide 8: Q2'FY25 Performance Highlights - NWC
Q2’FY25 Performance Highlights - NWC Amount (₹Cr.) 1,692 • NWC stood at 97 days in Sep-24 v/s 76 days in Mar-24. NWC increase was due to: 1,457 o Inventories placed in the expanded retail and 1,367 distribution network to cater to the demand of the upcoming festive & wedding season • Continued focus
Slide 9: Q2 FY25 Financial Performance
Q2 FY25 Financial PERFORMANCE 8
Slide 10: Q2'FY25 Performance Highlights: Consolidated Performance
Q2'FY25 Performance Highlights Consolidated Performance Particulars (₹ Cr.) Q2’FY25 Q1’FY25 Q2’FY24 YoY H1’25 H1’24 YoY Total Income 1,735 1,250 1,849 (6%) 2,985 3,203 (7%) Opex 1,494 1,160 1,543 2,654 2,718 EBITDA 242 89 306 (21%) 331 486 (32%) EBITDA Margin % 13.9% 7.1% 16.6% 11.1% 15.2% Depreciat
Slide 11: Segment Performance
Segment Performance Quarterly Results Q2’FY25 Post IndAS 116 TOTAL INCOME EBITDA EBITDA % Q2 Q2 YoY Q2 Q2 YoY Q2 Q2 Particulars (₹ Cr.) FY25 FY24 (%) FY25 FY24 (%) FY25 FY24 Branded Textile 854 933 (8%) 161 207 (22%) 18.9% 22.2% Branded Apparel 441 437 1% 57 53 8% 13.0% 12.2% Garmenting 260 286 (9%)
Slide 12: Segment Performance
Segment PERFORMANCE 11
Slide 13: Branded Textile
BRANDED TEXTILE 12
Slide 14: Branded Textiles
Branded Textiles Particulars Q2 Q1 Q2 % Change (₹ Cr.) FY25 FY25 FY24 YOY Revenue 854 565 933 (8%) EBITDA 161 54 207 (22%) EBITDA margin 18.9% 9.6% 22.2% REVENUES Remained soft due to subdued demand and “Shraadh” in month of September. EBITDA Primarily Impacted due to lower revenues 13
Slide 15: New Launches — Entry into Ceremonial Fabrics
New Launches — Entry into Ceremonial Fabrics New Launches include ‘Ceremonial Collection’, deriving Inspiration from Ancient Indian Monuments and Architectural Domes with intricate detailing as Motif direction.
Slide 16: New Launches- Bello Italiano
New Launches- Bello Italiano ‘Bello Italiano’ a collection by Raymond aiming at bringing authentic Italian fashion and design sense sourced from best of Italian mills.
Slide 17: Marketing Campaigns: Raymond & KBC on TV and Digital
Marketing Campaigns Brand presence through KBC association RAYMOND & KBC ASSOCIATION ACROSS TV AND DIGITAL 16
Slide 18: Marketing Campaigns: Garment Exchange Program (GEP)
Marketing Campaigns: Garment Exchange Program (GEP) ➢ Raymond believes a fashion statement can also make a huge soul statement. ➢ Encouraging the joy of giving by pledging the pre-owned garments / apparel (from customers) to people in need through active collaboration with ‘Goonj, an NGO. In return,
Slide 19: Branded Apparel
BRANDED APPAREL 18
Slide 20: Branded Apparel
Branded Apparel Steady Performance Particulars Q2 Q1 Q2 % Change (₹ Cr.) FY25 FY25 FY24 YOY Revenue 441 303 437 1% EBITDA 57 15 53 8% EBITDA margin 13.0% 4.8% 12.2% REVENUE Grew marginally driven by new stores additions in a subdued consumer demand and challenging market conditions. EBITDA EBITDA ma
Slide 21: Exclusive Retail Network
Exclusive Retail Network Continuing expansion of retail footprint TRS MTM EBO Total Sep'23 1,065 43 345 1,453 Mar'24 1,065 44 409 1,518 Sep'24 1,083 46 463 1,592 600 800 1,000 1,200 1,400 1,600 Opened 74 stores during the first half of the year with 1,592 stores as on 30th Sep 2024. Exclusive Brands
Slide 22: Ethnix by Raymond
ETHNIX BY RAYMOND 21
Slide 23: Our Ethnix Portfolio
Our Ethnix Portfolio WEDDING COLLECTION FESTIVE COLLECTION • Opened 15 stores in first half of the SMART ETHINIX year taking the tally to 129 stores. • Newly launched Smart Ethnix collection – an eclectic design code, defining an array of fusion silhouettes of Short Kurtas, Bundi & Trousers 22
Slide 24: 'Build' The New Category: Sleepwear
‘Build’ The New Category: Sleepwear • Product categories consist of Indian Wear (kurta – pajama set, dhoti) and Western Wear • Building a distribution strategy with strong focus on distributors with regional and PAN India level presence. 23
Slide 25: Garmenting
GARMENTING 24
Slide 26: Garmenting
Garmenting Continued Momentum Particulars Q2 Q1 Q2 % Change (₹ Cr.) FY25 FY25 FY24 YOY Revenue 260 252 286 (9%) EBITDA 25 9 22 15% EBITDA margin 9.6% 3.5% 7.5% REVENUE Impacted by certain delay in shipment dispatches. EBITDA EBITDA margins in Q2’FY25 stood at 9.6%. 25
Slide 27: High Value Cotton Shirting
HIGH VALUE COTTON SHIRTING 26
Slide 28: High Value Cotton Shirting
High Value Cotton Shirting Stable Demand Particulars Q2 Q1 Q2 % Change (₹ Cr.) FY25 FY25 FY24 YOY Revenue 228 186 211 8% EBITDA 22 10 28 (20%) EBITDA margin 9.7% 5.6% 13.1% REVENUE Revenue improved as our B2B customers prepare for ensuing festive and wedding season. EBITDA Impacted due to input cost
Slide 29: Q2'FY25 Performance: Management Commentary
Q2’FY25 PERFORMANCE “Raymond Lifestyle Limited had a stable quarterly performance amidst subdued demand, weaker consumer sentiment and higher inflationary pressures. Our continued focus on retail expansion led to reaching 1,592 stores including 129 stores in Ethnix by Raymond. We have launched Sleep
Slide 30: Raymond Lifestyle — 2.0
Raymond LIFESTYLE — 2.0 29
Slide 31: Vision
Vision To be the leading FASHION & LIFESTYLE company with loved brands, fashion first approach and a delightful consumer experience to deliver superior stakeholder value. 30
Slide 32: Values
Values INNOVATION • We have been crafting world-class product offerings over the years. • We will invest behind product and process innovation to drive disruptive growth. QUALITY CONSUMER DELIGHT We are recognized for Consumers delight is the heart of everything our high-quality product offerings an
Slide 33: Strong Resilient Brand since 1925
Strong Resilient Brand since 1925 Ranked in the Top 10 list for 2024 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 92.9 91.0 88.0 88.0 87.9 Rank 6 Rank 7 Rank 8 Rank 9 Rank 10 87.5 86.2 85.6 85.0 84.6 WE ARE AMONGST INDIA’S STRONGEST BRANDS Brand Finance India 100 2024 Report. 32
Slide 34: Strategic Approach
Strategic Approach BUILD STRENGTHEN ACCELERATE THE “NEW THE “CORE” THE “GROWTH” CATEGORIES” • Ethnic Wear Branded Branded Apparel • Inner Wear Textile & Garmenting • Sleep Wear 33
Slide 35: Key Portfolio
Key Portfolio Lifestyle Segments / Brands HIGH VALUE BRANDED BRANDED COTTON TEXTILES APPAREL GARMENTING SHIRTING Leading B2C brand for Suiting Ready to wear brands like Park A white-labelled integrated B2B business – manufacturer of and Shirting fabric. Commands Avenue, ColorPlus, Parx, Raymond manu
Slide 36: High Teen Margin Business
High Teen Margin Business FY’2024 Particulars (₹ Cr.) FY24 Total Income# 6,691 Opex 5,599 EBITDA 1,093 Gross Margin EBITDA % EBITDA Margin % 16% 46% 16.3% Depreciation 248 Interest Expense 196 EBIT% PAT % PBT before exceptions 649 12.6% 7.0% PBT Margin % 10% Exceptional items 9 Taxes 170 Net Profit
Slide 37: Leadership & Management Team
Leadership & MANAGEMENT TEAM 36
Slide 38: Strong Governance
Strong Governance With High Pedigree Board Members K NARASIMHA MURTHY VINEET NAYAR ANISHA MOTWANI MAHENDRA V DOSHI Independent Director Independent Director Independent Director Independent Director Ex Director NSE, Ex CEO- HCL Strategic Advisor Chief Promoter & ONGC, LIC & UTI World Bank CMD LKP Fi
Slide 39: Led by Experienced Management Team
Led by Experienced Management Team SAMEER SHAH RAVI HUDDA HIMANSHU KHANNA MLN PATNAIK CDO, Lifestyle & Group CIO Chief Marketing Officer Chief HR Officer Chief Financial Officer SUNIL KATARIA Managing Director Dr. SUBHASH NAIK ABHIJIT BHALERAO DEBDEEP SINHA VIKRAM MAHALDAR Chief Manufacturing Off
Slide 40: ESG Goals
Raymond ESG GOALS 39
Slide 41: Well Defined ESG Goals
Well Defined ESG Goals ENVIRONMENT (E) 20% 20% 30% ZERO Reduction in Renewable Energy Decrease Liquid Discharge scope 1 & 2 Target by 2030 in Waste to (ZLD) by 2030 by 2030 landfill by 2030 SOCIAL (S) 100% Single Digit ZERO 20% Return to Employee Fatalities since Gender diversity Work Rate Turnover
Slide 42: Raymond Lifestyle 2.0 Growth Drivers
Raymond Lifestyle 2.0 Growth Drivers Retail Expansion: New Growth Vectors: Adding 650+ Stores Ethnic, Sleepwear in Next 3 years and Innerwear 2.0 India’s Largest Garmenting: Wedding & Ceremonial Capitalize on China+1, Attire Brand Bangladesh+1 and FTA RAYMOND- THE COMPLETE MAN 41
Slide 43: 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 44: Thank You
THANK YOU REACH US @Raymond.IR@Raymond.in