Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q1 FY25 Earnings Presentation
53 slides from Rupa &'s earnings presentation, Aug 9, 2024
Slide 1: Regulation 30 disclosure letter to exchanges
Date: August 09, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Ref: NSE Symbol- RUPA / BSE Scrip Code- 533552 Sub: Disclosure under
Slide 2: Investor Presentation | Q1 FY25
Investor Presentation | Q1 FY25
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Rupa & Company Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or ind
Slide 4: Table of contents
Table of contents 01 Q1 FY25 Result Highlights 02 Company Overview 03 Business Model 04 Growth Initiatives 05 ESG & CSR Initiatives 06 Historical Financials 3
Slide 5: Q1 FY25 Result Highlights
CRuPA QLUFY25 Result Highlights
Slide 6: Management Commentary
Management Commentary Commenting on the financial performance Mr. Vikash Agarwal - Whole Time Director, said, “We are pleased to report a stable performance in Q1 FY25, though the industry continues to witness resistance to any price increase. We demonstrated steady improvements across key financial
Slide 7: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Revenue (in Rs. Cr) EBITDA (in Rs. Cr) PAT (in Rs. Cr) 5.8% 8.6% 2.2% 5.0% +8% +59% +149% 210 18 10 195 11 4 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 6
Slide 8: Q1 FY25 Performance Highlights
Q1 FY25 Performance Highlights Q1 FY25 Revenue stands at Robust YoY growth of 59% in Volume growth Modern Trade contributed Rs. 210 crores, up by 8% YoY EBITDA and 149% in PAT Q1 FY25 – 9% 8% to the revenues Exports contributed 4% of the Net Working Capital Cash generated from Achieved Net Debt Free
Slide 9: Sales Mix - Q1 FY25
Sales Mix - Q1 FY25 Region-wise Gender-wise Segment-wise 4% 2% 4% 9% 9% 8% 34% 17% Q1 FY25 Q1 FY25 Q1 FY25 4% 32% 89% 88% East North-East North Men Women Kids Domestic Exports West & Central South Overseas Modern Trade 8
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Cr) Q1 FY25 Q1 FY24 Y-o-Y% Q4 FY24 Q-o-Q% FY24 Revenue from Operations 210.3 195.4 8% 400.5 -47% 1,216.5 Total Raw Material 66.4 77.7 221.3 617.0 Sub-Contract Expenses 67.5 49.1 71.9 247.6 Gross Profit 76.4 68.7 107.3 351.9 Gross Profit Margin %
Slide 11: Company Overview
Company Overview
Slide 12: #1 undisputed knitwear Indian brand
#1 undisputed knitwear Indian brand… Finished goods 7,00,000+ pieces per day Dealers 1,500+ Registration of trademark’s both 1,50,000+ Retail Outlets Nationally & 100+ Internationally 9,000+ SKUs Brands 10+ 11
Slide 13: …with long legacy of delivering excellence
…with long legacy of delivering excellence 1968 1985 1995 - 1996 1997-2000 2003-2008 RUPA brand Rupa & Co. Pvt. Ltd. Took over business of Entered casual wear and Acquired the incorporated Established Binod Hosiery thermal wear products brand “Euro” IPO and listing on Calcutta Started export of prod
Slide 14: Star Studded Line-up of Brand Ambassadors
Star Studded Line-up of Brand Ambassadors Brand Development Cost (Rs. Cr) Strong brand recall developed through 78 Advertisement & 71 consistent investment in advertising and 53 62 66 Branding Expense constitutes ~9% of brand promotion strategies Revenues in Q1 FY25. 19 FY20 FY21 FY22 FY23 FY24 Q1 F
Slide 15: Awards & Accolades
Awards & Accolades Rank 1 in CSR Category at ICC Most Promised Digital Presence in Retail and E- Most Trusted Award -2022 in category of Corporate Governance & commerce at National Achievers Awards Fashion - Innerwear and Outerwear Sustainability Vision Awards 2024 Brand edge Award for Best Practice
Slide 16: Eminent Board of Directors
Eminent Board of Directors Mr. Prahlad Rai Agarwala, Chairman Mr. Ramesh Agarwal, Whole-time Director • 50+ years of experience in the textile industry • More than 30 years of experience in the textile industry • Provides strategic direction to the Company and is the driving force • Plays a key role
Slide 17: Eminent Board of Directors
Eminent Board of Directors Mr. Dipak Kumar Banerjee, Independent Director Mr. Sushil Patwari, Independent Director • Chartered Accountant with 45 years+ experience • 40+ years of experience in the field of cotton yarn and knitted fabric industry • Started his career with LIC in 1970 and thereafter,
Slide 18: Experienced Management Team
Experienced Management Team Mr. Niraj Kabra, Executive Director Mr. Arihant Kumar Baid, VP - Finance A commerce graduate from Calcutta University. More than 20 years of rich expertise in the 15 years of experience in Cross Functional areas in Finance. Member of the Institute of field of Operations a
Slide 19: Business Model
Business Model
Slide 20: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Branding Distribution ✓ Broad & unparalleled ✓ An integrated & efficient ✓ Accelerating the launch ✓ Expanding retail product portfolio manufacturing process of aspirational brands footprint ✓ Brands across a wide ✓ State
Slide 21: 1. Affordability - brands across wide price range segments
1. Affordability - brands across wide price range segments Bouquet of Brands across Price Segments Brands across all Users Broad & unparalleled product portfolio Brands for Men Brands for Women (Men + Women + Kids) Bermudas Leggings & Causal Wear Athleisure Premium Segment T-shirts Socks Mid-Premium
Slide 22: 2. Scalability - an integrated & efficient manufacturing process
2. Scalability - an integrated & efficient manufacturing process… Product Design & Development Manufacturing Process Logistics & Distribution Manufacturing Process Knitting Processing / Dyeing Stitching Warehousing Distribution & Bleaching Logistics & Distribution Critical Processes done in-house Cu
Slide 23: …along with state of the art manufacturing facilities
…along with state of the art manufacturing facilities Continous investment in R&D to produce environment-friendly clothes and minimize carbon footprints 7,00,000+ 9,000+ Finished Goods per day SKUs 3 tons/day 25 tons/day Domjur (West Bengal) Tirupur (Tamil Nadu) Yarn Dyeing Fabric Dyeing » Knitting:
Slide 24: … with unwavering focus on R&D and quality standards
… with unwavering focus on R&D and quality standards • Harnessing the power of technology enables conforming to international standards • Innerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methods and are biodegradeable. • We make
Slide 25: … resulting in high volume capacities
… resulting in high volume capacities OPERATIONS IN HOUSE CAPACITY Strategic Advantages • Streamlined Operations Fabric Dyeing & Bleaching 25 Tons/Day • Technologically advanced machineries to support our manufacturing infrastructure Yarn Dyeing & Bleaching 3 Tons/Day • Robust control practices in p
Slide 26: 3. Branding - reinforcing high growth segments
3. Branding - reinforcing high growth segments… • Bumchums range of T-shirts, Bermudas, Tracks and Muscle. • High Growth Potential in health and lifestyle focused Active wear segment. Industry has grown by ~13% CAGR since 2011 • Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge r
Slide 27: …and scaling high margin revenue streams
…and scaling high margin revenue streams • One of the Largest Premium Brand of Innerwear, Leisurewear, Sportswear, Activewear & Athleisure, for Men & Women • Macroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge designers & available in a variety of colors and
Slide 28: Recent Launches by Colors
Recent Launches by Colors C#LORS
Slide 29: 4. Distribution - expanding retail footprint
4. Distribution - expanding retail footprint 1,50,000+ Retail Outlets Strategy: Foray in newer markets by appointing new Strong position in Eastern India. Gaining distributors and building experienced team while significant presence in the North 1,500+ offering products as per consumer preferences f
Slide 30: Growth Initiatives
RUPA Ives Growth Initiat
Slide 31: Recent Strategic Initiatives
Recent Strategic Initiatives Rapid expansion in Re-organising the high potential areas distribution channel Focus on exports in new Expanding EBO network emerging markets Investing in modern trade & e-commerce 30
Slide 32: 1. Rapid expansion in high potential areas
1. Rapid expansion in high potential areas Medium Term Target, 3X - 4 Years Medium Term Target, 4X - 3 Years +21% West Bengal, Maharashtra [Ex Mumbai Pune], Focus on e-commerce via partnerships with Gujarat, MP, Chattisgarh, Western UP, +44% Amazon, Flipkart. Drive direct sales through 39 Uttrakhand
Slide 33: 2. Expanding EBO network
2. Expanding EBO network Exclusive Brand outlets : 29 EBO Our MACROWORLD store at Shaguna More, Patna Strategy: › Opened MACROWORLD EBO › Create small to mid sized Franchisee Store Model with best-in- class SOPs › Build and nurture, competent Franchisee Management Organisation Capabilities › Establi
Slide 34: 3. Investing in modern trade and e-commerce
3. Investing in modern trade and e-commerce Modern Retail Trade Online Apps & Portals Current store count: 1500+ Presence on all e-commerce sites Strategy: Strategy: • Increase Brand Footprints across all brands creating special product line • E-commerce Industry is poised to grow at 13% CAGR (Niels
Slide 35: 4. Focus on exports and new markets
4. Focus on exports and new markets UAE | SAUDI ARABIA | KUWAIT | ALEGRIA | INDONESIA | NIGERIA | CONGO | USA | SINGAPORE and Many More RUSSIA USA MIDDLE EAST Strategy is to foray in newer markets by COUNTRIES appointing new distributors and building experienced team and further penetrate INDIA in t
Slide 36: 5. Re-organising the distribution channel
5. Re-organising the distribution channel WHOLESALE CHANNEL Strategic move towards Direct Distribution channel for premium & super premium product categories Semi Wholesalers Retailers Advantages Better control on prices with well-defined margins for Retailers distributors and retailers Better inven
Slide 37: ESG & CSR Initiatives
ESG & CSR Initiatives
Slide 38: Why ESG matters to us ?
Why ESG matters to us ? Sustainability is something that investors are demanding, customers are expecting, shareholders are relying on and employees are valuing. Stakeholders’ Perspective Investors Shareholders Employees Customers Government Communities Good financial returns, Working with Occupatio
Slide 39: ESG Vision & Mission
ESG Vision & Mission “Weaving together a sustainable future” To be one of the most loved knitwear and apparel brands in India; commended for responsible Vision manufacturing and delivering superior customer experience with the best pricing. Rupa endeavors to responsibly manufacture products through
Slide 40: Rupa's Pillars of Sustainability
Rupa’s Pillars of Sustainability Strategic Sustainability Pillars Environment Social Governance ❖ Energy and climate change ❖ Diversity and inclusion ❖ Corporate governance management ❖ Occupational health and safety ❖ Ethics, transparency and ❖ Water and effluent management ❖ Corporate citizenship
Slide 41: Strong Board Oversight on ESG
Strong Board Oversight on ESG Responsible Governance Board Tenure >12 years 0 - 7 years • Active oversight from Board of Directors and dedicated Board level 28% 36% CSR committee for overseeing ESG risks • Corporate social responsibility embedded in our Values Average Tenure • Fosters a culture of h
Slide 42: Committed to Sustainable Growth
Committed to Sustainable Growth CSR Vision : Improving lives in pursuit of collective development and environmental sustainability Energy and GHG Management Emissions Management ▪ The steam generated from the boiler is captured and reused ▪ Installed bag filters to ensure particulate matter in opera
Slide 43: Care for our People
Care for our People Adhering to the highest labour standards Gender Diversity We respect and protect human rights both within and outside the workplace All workmen on the shop floor are by adhering to the principles of human required to undergo workplace safety training for ensuring prevention of ri
Slide 44: Strengthening our Communities
Strengthening our Communities Rupa & Company Limited operates with a strong belief that giving back to the society and contributing towards its sustainable development is every organization’s responsibility. The Company and its people are Key highlights committed to society, ecology and environment.
Slide 45: Glimpses of our CSR Activities
Glimpses of our CSR Activities Medical and healthcare facility under Cancer awareness and detection camp in Provision of mid-day meal One Teacher School construction collaboration with Indian Cancer Society Animal welfare Women empowerment Supporting education Cancer Awareness Camp Drinking water fa
Slide 46: Historical Financial Performance
Historical Financial Performance
Slide 47: Historical P&L Highlights
Historical P&L Highlights Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,475 257 269 192 1,313 175 1,143 1,217 975 889 156 112 800 155 109 643 719 H2 487 114 117 89 62 70 H2 54 54 41 73 H2 24 45 H1 488 513 586 500 498 102 113 66 80 25 H1 60 48 44 H1 38 29 25 FY20 FY21 FY22 FY23 FY24 FY20 F
Slide 48: Key Financial Ratios
Key Financial Ratios ROCE (%) ROE (%) Debt to Equity (X) 30.8% 26.8% 28.4% 23.8% 0.40 0.30 0.27 0.24 13.6% 11.0% 0.19 11.9% 8.5% 7.5% 6.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Working Capital Days Inventory Debtors Creditors 175 171 157 136 138 120 113 109 101 9
Slide 49: Sharing profits consistently
Sharing profits consistently Payout as a % of Profits 24.5% 30.1% 32.1% 33.2% 30.3% 27.7% 32.2% 38.6% 22.7% 12.5% 44.9% 34.0% Mark of gratitude to our shareholders during the pandemic: Special Dividend of Rs. 2/- per equity share 500 200 300 300 300 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15
Slide 50: Key Takeaways
Key Takeaways
Slide 51: Huge Industry Potential
Huge Industry Potential Men’s Innerwear Market Women’s Innerwear Market 6% 12% CAGR CAGR 17,894 56,364 8,500 4,300 14,500 7,000 2010 2015 2027E 2010 2015 2027E Key Growth Triggers Emergence of purpose-specific Increasing income levels Growth in penetration of Changing Fashion Increasing penetration
Slide 52: Rupa & Co. – Key Takeaways
Rupa & Co. – Key Takeaways • Diversifies product offering across demographics & price segments • Wide bouquet of brands with strong brand recall developed through consistent investment in ad spends • Efficient business model with key focus on value addition, quality control & product differentiation
Slide 53: Thank You
Company: Investor Relation Advisors: Rupa & Company Ltd. Mr. Sumeet Khaitan CIN: L17299WB1985PLC038517 +91 7021320701 sumeet.khaitan@linkintime.co.in Mr. Sumit Khowala, Chief Financial Officer Mr. Bhavya Shah sumit.khowala@rupa.co.in sumit.khowala@rupa.co.in +91 8082748577 bhavya.shah@linkintime.c