Renaissance Global Limited · NSE:RGL
Renaissance Global — Q4 FY2023 Earnings Presentation
37 slides from Renaissance Global's earnings presentation, May 26, 2023
Slide 1: Cover letter to stock exchanges
Ref. No.: RGL/S&L/2023/60 May 26, 2023 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Press Releas
Slide 2: Renaissance Global announces Q4 & 12M FY23 Results
PRESS RELEASE Renaissance Global announces Q4 & 12M FY23 Results 12M FY23 Total Income stood at Rs. 2,243 crore Direct-to-Consumer business revenues up 93% to Rs.239 crore EBITDA stood at Rs. 168 crore, with margins at 7.5% PAT stood at Rs. 87 crore Mumbai, May 26, 2023: Renaissance Global Limited,
Slide 3: Commenting on the performance for Q4 & 12M FY23
Commenting on the performance for Q4 & 12M FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “FY23 was a challenging year for our industry owing to the difficult macro environment in key markets. Despite the tough landscape, we managed to maintain our revenue growth tr
Slide 4: About Renaissance Global Limited
About Renaissance Global Limited (Renaissance) Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), is a global branded jewellery player. Renaissance designs, manufactures, and supplies branded jewellery across key high-potential markets in USA, Canada, UK & Asia. The product portfolio
Slide 5: Results Presentation Q4 & FY23
Results Presentation Q4 & FY23
Slide 6: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Global Limited (“Renaissance” or the Company) that are not historical in nature. These forward-looking statements, which may include statements relating to future results of operations,
Slide 7: Content
Content Q4 & FY23 Company Annexure Results Overview Overview 4 15 28 3
Slide 8: Q4 & FY23 Results Overview
iO Renaissance Global Limited Q4 & FY23 Results Overview
Slide 9: Q4 & 12M FY23 Financial Summary
Q4 & 12M FY23 Financial Summary Total Income (Rs. Crore) EBITDA (Rs. Crore) 7% 2% EBITDA 6.9% 7.6% 9.1% 7.5% Margin (%) 73 bps 158 bps 2,208.7 2,242.7 200.5 * 168.1 536.3 501.4 36.8 38.1 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 PAT (Rs. Crore) EPS (Rs.) PAT 4.0% 3.9% 4.8% 3.9% Margin (
Slide 10: Management Message
Management Message Commenting on the performance for Q4 & FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said: “FY23 was a challenging year for our industry owing to the difficult macro environment in key markets. Despite the tough landscape, we managed to maintain our re
Slide 11: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q4 FY23, direct-to-consumer business posted revenues of Rs. 66 crore compared to Rs. 30 crore in Q4 FY22, registering a growth of 125% For FY23, the direct-to-consumer business revenue was up by 93% to ₹239 crore as compared to ₹124 crore in FY22
Slide 12: Key Developments
Key Developments Irasva Fine Jewellery, the Company’s India-focused retail brand, opens its first store in Hyderabad IRASVA expands to Hyderabad, introducing its exquisite diamond and jadau jewellery for women through a new store in the upscale shopping district of Banjara Hills. Renaissance Globa
Slide 13: Q4 & 12M FY23 Operational Summary
Q4 & 12M FY23 Operational Summary Revenue Break-up Q4 Q4 12M 12M Revenue Mix (%) Shift % Shift % (Rs. Cr.) FY23 FY22 FY23 FY22 Plain Gold Customer Brands Branded Jewellery Branded Jewellery 147 120 22.9% 605 503 20.4% 29% 23% 27% 23% - B2B 81 90 -10.3% 366 379 -3.4% - D2C 66 30 124.7% 239 124 93.2%
Slide 14: Q4 FY23: Financial & Operational Discussions (Y-o-Y)
Q4 FY23: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 501 crore from Rs. 536 crore, down by 6.5% Branded Jewelry business revenues stood at Rs. 147 crore supported by a steady flow of orders from retail partners and revenues from D2C business D2C business revenue
Slide 15: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) 194 159 113 66 Strong FCF generation -351 Branded Jewellery - a low capital- intensive business FY19 FY20 FY21 FY22 FY23 Operating leverage & minimal capex spends to further improve FCF generation, going ahead Cash, Cash Equi
Slide 16: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52 Highly disciplined balance sheet 0.29 0.30 665 0.22 approach 699 843 924 1,026 503 364 242 280 223 Net Debt to Equity ratio as of March 2023 has decreased to 0.22 vs 0.30 in FY19 FY20 FY21 FY22 FY23 M
Slide 17: Healthy Return Ratios
Healthy Return Ratios ROE ROE (Adjusted for Cash & Current Investments) 17.6% 18.9% 17.1% 13.1% FY23 Return on Equity stood at 9.0% vs 8.8% 12.9% 13.5% 12.0% 12.0% for FY22. It is as high as 13.1% 9.0% without considering cash & current 6.0% investments. FY19 FY20 FY21 FY22 FY23 The company has
Slide 18: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q4 FY23 Q4 FY22 FY23 FY22 Change (%) Change (%) Revenues from Operations 499.5 529.3 -5.6% 2,236.6 2,189.8 2.1% Other Income 1.9 7.0 -72.6% 6.1 18.9 -67.7% Total Income 501.4 536.3 -6.5% 2,242.7 2,208.7 1.5% COGS 351.9 405.7 -1
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crore) March 2023 March 2022 Particulars (Rs. Crore) March 2023 March 2022 Shareholder's Funds 1,026.5 924.1 Non-Current Assets Equity Share Capital 18.9 18.9 Fixed Assets – Tangible & Intangible [2] 257.6 218.3 Reserves & Surplus 1,007.1 905.1 CWIP & Inta
Slide 20: FY2024: Strategic Priorities
FY2024: Strategic Priorities Continued focus on enhancing contribution from D2C segment Integrate customization options across brands Expand omnichannel Presence Achieve historical margin range in the D2C business 16
Slide 21: Company Overview
iO Renaissance Global Limited Company Overview
Slide 22: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 5 6 605 cr. Licensing Direct-to- Branded jewellery agreements with Consumer revenues (Rs.) in global brands websites 12M FY23 Strong presence in global markets of North America, Euro
Slide 23: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery Association with globally-recognized brands segment 27% Increased presence in high-potential key global 23% markets 18% Renaissance’s Branded 13% Jewellery Better pricing on the back of branded products
Slide 24: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Distribution Direct-to- Business Consumer (D2C) (B2B) 20
Slide 25: 'Win-Win' Partnership with Global Iconic Brands
‘Win-Win’ Partnership with Global Iconic Brands Renaissance Global Global Brands PUSH STRATEGY PULL STRATEGY Conceptualisation & design Licensing agreements Brand development Manufacturing IP rights of brands Long-term license contracts Product marketing Marketing Distribution Spec
Slide 26: Growing Portfolio of Brands
Growing Portfolio of Brands Licensed Brands Partnership with Hallmark since 2015 Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine jewelry Success of brand unlocked more licensing opportunities Launched Disney Jewels in October 2019 & Disney Treasures in F
Slide 27: Growing Portfolio of Brands
Growing Portfolio of Brands Owned Brands Launched first India-focused retail brand IRASVA in 2019 Operates 3 IRASVA stores in India Jewelili, a play on affordable fine jewellery collection launched in February 2020 Distributed through Amazon platform in addition to its own website Building a
Slide 28: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline Successfully developed February July November February May and launched 6 online 2020 2020 2020 2021 2021 stores Monthly visitors on websites grown 10x since Feb 2020 (UK) Segment enjoys higher margins and healthy working capital cycle A
Slide 29: Growth Drivers
Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Increasing use of lab-grown diamonds to prioritize focus on sustainability Widening Omni-channel distribution network Inorganic growth opportunities 25
Slide 30: Conclusion
Conclusion Play on high-potential global branded jewellery industry ‘Win-Win’ partnership with global iconic brands Footprint in huge developed & developing global markets for branded jewellery Increasing scale to drive operating leverage across distribution channels High margin & low-capital intens
Slide 31: ESG Initiatives
iO Renaissance Global Limited ESG Initiatives
Slide 32: ESG Initiatives
ESG Initiatives ENVIRONMENT SOCIAL To achieve safety, health Renaissance’s CSR POLICY and environmental covers projects through NGOs excellence in all aspects of under: business activities Medical, Health Care and During the quarter Social Welfare Q1FY23, Renaissance Educational Global Ltd.
Slide 33: Annexure
») Renaissance Global Limited Annexure
Slide 34: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.8% Foreign Institutions (FPI, FII & 2.1% NRI) Individual - >1% 2.1% Others 25.0% *Holding as on 31st March 2023 Key Market Statistics As on 31-March-2023 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 82.9 Market Cap (Rs Cro
Slide 35: Conference Call Details
Conference Call Details Q4 & FY2023 Earnings Conference Call Timing 2:00 pm IST on Monday, May 29, 2023 Conference dial-in Primary number +91 22 6280 1141 / +91 22 7115 8042 Singapore Toll Free Number 800 101 2045 Hong Kong Toll Free Number 800 964 448 USA Toll Free Number 1 866 746 2133 UK Toll Fre
Slide 36: About Us
About Us Renaissance Global Limited (Renaissance) is a global branded jewellery player. Renaissance designs, manufactures and supplies branded jewellery across key high- potential markets in USA, Canada, UK & key Asian markets. The product portfolio encompasses Branded Jewellery, Customer Brands & P
Slide 37: Thank You
CO Renaissance Global Limited Thank You