Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY2023 Earnings Presentation
62 slides from Raymond's earnings presentation, Jun 30, 2022
Slide 1: Raymond Limited Q1FY23 Result Presentation
Raymond Limited Q1FY23 Result Presentation 30th June, 2022
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 Q1 Highlights 4 Financial Highlights 8 Key Focus Areas 11 Segment Financials 21 Business Consolidation 40 Current Status and Outlook 42 Annual Performance & Key Metrics 45 Company Overview 49 3
Slide 4: Q1 Highlights
an Raymon Q1 Highlights
Slide 5: Market Update
Market Update o Upbeat sentiments in Domestic Market drives consumer demand: • Markets witnessed buoyant demand as normalcy continued in April & May, fueled by summer wedding season & healthy footfalls in malls • Initially, June month witnessed subdued consumer sentiments; however last week of June
Slide 6: Q1 FY23: Highest Q1 Revenue & Profitability in the last 10 years
Q1 FY23: Highest Q1 Revenue & Profitability in the last 10 years Highest quarterly revenue of ₹ 1,754 crores, up 104% vs. PY & 19% vs. Q1’FY20 Highest quarterly EBITDA of ₹ 235 crores with EBITDA margin of 13.4% Highest ever PBT of 118 crores & margin of 6.7% Increase in net debt by ₹ 222 Cr mainly
Slide 7: Q1FY23 – Highest Q1 Revenue & Profitability in last 10 years
Q1FY23 – Highest Q1 Revenue & Profitability in last 10 years ₹ Cr. Revenue EBITDA 13.4% 15.0% 1754 180 9.8% 235 1470 7 222 862 80 144 0.8% 10.0% 222 -20 Q1 FY20 Q1 FY23 Q1 FY20 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY22 5.0% -120 (167) -220 0.0% PAT margin Q1 FY21 (1.0%) 4.6% 15.0% 180 • Profitable topline gro
Slide 8: Financial Highlights
an Raymon Financial Highlights
Slide 9: Consolidated Results – Q1FY23
Consolidated Results – Q1FY23 Particulars (₹ Cr) Q1FY23 Q1FY22 YoY Q1FY20 vs Pre-covid Net Revenue 1,754 862 104% 1,470 19% Opex 514 346 49% 494 4% EBITDA 235 7 na 144 63% EBITDA margin % 13.4% 0.8% 1260 bps 9.8% 360 bps Depreciation 58 61 (5%) 81 (28%) Interest 59 55 7% 74 (20%) PBT before exceptio
Slide 10: Segment Results – Q1FY23
Segment Results – Q1FY23 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr) Q1FY23 Q1FY22 Y-o-Y% Q1FY23 Q1FY22 Q1FY23 Q1FY22 Branded Textile 648 283 129% 114 (21) 17.6% (7.3%) Branded Apparel 262 75 251% 15 (29) 5.6% (38.9%) Garmenting 247 98 153% 15 1 6.1% 0.9% High Value Cotton Shirting 17
Slide 11: Key Focus Areas
an Raymon Key Focus Areas
Slide 12: Key Focus Areas
Key Focus Areas Liquidity Go to Market Digital Imperatives Cost Rationalization Management • Exclusive • Continued focused on • New Product & Range • Focus on working Merchandise for optimizing operating Development capital management Online expenses • Fasten Omni Channel • On time availability of i
Slide 13: Go to Market Initiatives - Suiting
Go to Market Initiatives - Suiting Stretch and Sustainable Collection Revento – Recreating the Magic of Wool The Stretch Story Techno Smart • ‘SPANAX’ combines unique solution of comfort & • Re-creating the Magic of Wool in trending fashion: performance and offers two variations: Multi-directional s
Slide 14: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting Monarch Linen Campaign VIBEZ 2.0 Evening & party wear collection – designed Linen campaign is running across Trendy & versatile prints offers diverse for the dapper look - with the sheen of satin 10 States colour palette to choose from, which and mid-tone colour s
Slide 15: 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 15
Slide 16: Go to Market Initiatives - Ethnics range for targeted Occasion
Go to Market Initiatives - Ethnics range for targeted Occasion 16
Slide 17: Real Estate: Definitive JDA Signed for Premium Project at Bandra
Real Estate : Definitive Joint Development Agreement (JDA) Signed for Premium Project at Bandra Premium residential project, strategically located in the Western Express Highway Estimated to have a revenue potential in excess of ₹ 2,000 Cr In line with the Company’s growth plan to expand its Real Es
Slide 18: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Online Services Strengthening 3rd party tie-up Home Assist & MTM Concierge • AI based personal messaging post purchase • Shubharambh designer services to cater to wedding shopping • Aggressive play on e-commerce marketplaces with over 2x options made Mad
Slide 19: Continued Focus on Cost Optimization
Continued Focus on Cost Optimization Pre-Covid Particulars (Rs Cr) Q1FY23 Q4FY22 Q1FY22 Q1FY20 Employment Cost 243 247 194 243 A & SP 57 32 21 41 Others expenses 215 227 131 211 Total Opex 514 506 346 494 Interest Cost 59 57 55 72 Total Cost 573 563 401 566 Total Revenue 1,754 2,032 862 1,470 Rev up
Slide 20: Working Capital Requirement met by Existing Liquidity
Working Capital Requirement met by Existing Liquidity NWC higher vs Mar-22 – mainly due to temporary increase in inventory, to cater to festive & wedding season in upcoming quarters Particulars (₹ Cr) Jun'22 Mar'22 Jun'21 vs Mar'22 vs Jun-21 NWC 1,323 1,002 1,209 326 119 Cash flow in FY22: Opera
Slide 21: Segment Financials
an Raymon Segment Financials
Slide 22: Branded Textile
Branded BrandedTextile Textile 22
Slide 23: Branded Textile
Branded Textile Particulars (₹ Cr) Q1FY23 Q1Y22 % Var. Net Sales 648 283 129% EBITDA 114 (21) EBITDA margin 17.6% (7.3%) • Branded Textile segment sales reported strong growth of 129% in Q1F23 vs PY o Healthy sales witnessed across all channels driven by strong wedding season demand, resumption of o
Slide 24: Branded Apparel
BrandedApparel Branded Apparel 24
Slide 25: Branded Apparel
Branded Apparel Particulars (₹ Cr) Q1FY23 Q1Y22 % Var. Net Sales 262 75 251% EBITDA 15 (29) EBITDA margin 5.6% (38.9%) • Branded Apparel segment recorded a sales growth of 251% in Q1F23 vs PY o Sales across all channels driven by opening up of offices & summer wedding season related purchases o Stro
Slide 26: Retail Network
Retail Network 26
Slide 27: Exclusive Retail Network
Exclusive Retail Network 2.30 mn sq ft 2.26 mn sq ft 2.35 mn sq ft 1,372 1,459 1,351 EBO 278 261 331 MTM 36 35 37 TRS 1,058 1,055 1,091 Jun’22 Mar’22 Jun’21 High consumer footfalls across 1,372 store network of TRS and EBOs TRS network witnessed ~31% growth in average transaction value (ATV) in
Slide 28: Garmenting
Garmenting Garmenting 28
Slide 29: Garmenting
Garmenting Particulars (₹ Cr) Q1FY23 Q1Y22 % Var. Net Sales 247 98 153% EBITDA 15 1 EBITDA margin 6.1% 0.9% • Garmenting segment reported a buoyant sales growth of of 153% in Q1F23 vs PY o Driven by high demand from existing customers in US & Europe markets and new customer acquisitions • EBITDA mar
Slide 30: High Value Cotton Shirting
High Value Cotton Shirting 30
Slide 31: High Value Cotton Shirting
High Value Cotton Shirting Particulars (₹ Cr) Q1FY23 Q1Y22 % Var. Net Sales 170 101 68% EBITDA 17 6 EBITDA margin 9.7% 6.2% • High Value Cotton Shirting segment sales grew at by 68% in Q1F23 vs PY led by high demand for cotton fabric from our B2B customers • EBITDA margin at 9.7% during the quarter,
Slide 32: Engineering
Engineering 32
Slide 33: Engineering Business
Engineering Business Particulars (₹ Cr) Q1FY23 Q1Y22 % Var. Net Sales 209 180 17% EBITDA 27 23 EBITDA margin 12.8% 13.1% • On aggregate basis, the sales grew by 17% to ₹ 209 Cr as compared to ₹ 180 Cr in previous year. • Sales growth was mainly driven by strong growth in domestic markets across cate
Slide 34: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond
Slide 35: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Project Overall 20 acres of residential development TenX Habitat Project Details Total 10 towers and convenience retail with ~2.8 mn sq.ft of saleable area Total units planned for sale: 3,143 | 2BHK: 2,503; 1BHK: 640 Addr
Slide 36: Ten X Habitat - 3 towers to be delivered 2 yrs ahead of RERA
Ten X Habitat - 3 towers to be delivered 2 yrs ahead of RERA Timeline Towers 1, 2, 3, 4 and 5 Towers 6, 7, 8, 9 and 10 Aerial View - 2 Reference Image – Central Amenities Reference Image – Building Elevation 36
Slide 37: The Address of GS – Construction in full swing
The Address of GS – Construction in full swing Reference Image – Building Elevation Tower A – Ground Floor Slab Completed Tower B – Basement Slab & Foundation Work in Progress 37
Slide 38: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 38
Slide 39: Booking Update – KPI's
Booking Update – KPI’s KPIs TEN X THE ADDRESS BY GS Particulars FY22 Q1FY23 PTD FY22 Q1FY23 PTD Number of booking 522 157 2,066 179 102 281 Booking Value (₹ Cr.) 568 175 2,062 400 270 670 Collections (₹ Cr.) 609 198 1,289 41 38 79 Area (Mn Sq.ft.) 0.47 0.14 1.80 0.33 0.21 0.54 Particulars (₹ Cr) Q1F
Slide 40: Business Consolidation
an Raymon Business Consolidation
Slide 41: Update on Strategic Initiatives
Update on Strategic Initiatives Consolidation of Consolidation of B2C business Subsidiarisation of Engineering business incl. Apparel into Raymond Ltd Real Estate business Synergy in: Synergy in: Leads to: • Business Development • Design & Innovation • Differentiated Focus • RM Sourcing & Logistics
Slide 42: Current Status and Outlook
Current Status and Outlook 42
Slide 43: Current Status of Operations & Outlook
Current Status of Operations & Outlook Company expects to be on profitable growth momentum Domestic Market: With upcoming festive season, consumer sentiments expected to be in upward trajectory from mid-Aug Exports market: momentum in B2B businesses of Garmenting & Engineering with healthy order flo
Slide 44: Chairman & Managing Director on Q1FY23 performance
Chairman & Managing Director on Q1FY23 performance “At Raymond, our continued focus on operating and financial parameters across businesses, supported by expansive network, quality products and services led to highest first quarterly revenue and profitability. The growing demand in both - domestic a
Slide 45: Annual Performance – Key Metrics
Annual Performance – Key Metrics 45
Slide 46: FY22 – A year of significant achievements
FY22 – A year of significant achievements ₹ Cr. Net Revenue EBITDA 13.9% 10.5% 6.7% 881 6,708 6,578 6,348 702 3.7% 3,648 440 135 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 PAT • Strong profitable growth across all businesses 2.5% 3.1% 4.1% • Highest EBITDA despite pandemic in Q1FY22 168 202 (8.1)% 260
Slide 47: NWC days lower by over 50% from peak level
NWC days lower by over 50% from peak level ₹ Cr. 98 days 2051 1855 1731 45 days 1359 1117 1002 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Mar-22 Key initiatives: strong emphasis on collections and efficient inventory management & related production cycles NWC days reduced by over 50% to 45 days in Mar-2
Slide 48: Net debt reduction by over 50% from peak level
Net debt reduction by over 50% from peak level ₹ Cr. 2378 2066 1859 1817 1416 1088 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Mar-22 Key Initiatives: Focused revenue growth, cost optimization & effective working capital management generating FCF Net debt reduction by ₹1,290 cr by: o ₹ 940 Cr through FCF
Slide 49: Company Overview
an Raymon Company Overview
Slide 50: 95+ year old diversified group with strong presence across sectors
95+ year old diversified group with strong presence across sectors Suiting Shirting Apparel Retail Presence Garmenting Engineering Real Estate Denim FMCG 50
Slide 51: Group Values
Group Values Trust • One of India’s most trusted textile & apparel brands with near 100% awareness • Strong relationships with stakeholders over last 9 decades Quality • Recognized for its innovation and high-quality product offerings • Loyal consumer base spanning domestic and international markets
Slide 52: Group Overview
Group Overview Group Size • Revenue size of ~ ₹ 8,000 Cr Manufacturing • State-of-the-art 19 manufacturing facilities at strategic locations in India and 1 in Ethiopia Employment • Workforce of 30,000+ Reach • Wide reach in 600+ towns & cities in multiple businesses in India • Global footprint in 95
Slide 53: Raymond Group led by
Raymond Group led by Gautam Hari Singhania Chairman and Managing Director Raymond Ltd Atul Singh S L Pokharna Rajeev Bakshi Ravi Uppal Executive Vice Chairman (Designate) Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Ex – Coca Cola, Colgate - Palmolive Raymond Consumer Care Lt
Slide 54: Management Team
Management Team Atul Singh S L Pokharna Amit Agarwal K A Narayan Executive Vice Chairman Director - Raymond Group CFO President – HR (Designate) Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Colgate - Essar Group Palmolive Jatin Khanna Balasubramanian V Sunil Kataria Hemant Lakhotia Head
Slide 55: Commands Market Leadership across our Businesses
Commands Market Leadership across our Businesses Suiting Shirting Apparel Garmenting ~65% market share in Largest Branded player in Amongst top 3 Largest exporter of men’s worsted suiting shirting fabrics menswear players suits, jackets & Denim Engineering Denim FMCG #1 brand in steel files: #1 in r
Slide 56: Manufacturing Excellence Fabric & Garmenting
Manufacturing Excellence Fabric & Garmenting Suiting Shirting Denim Garmenting Manufacturing world’s Manufacturing world’s Manufacturer of high End to end integrated finest fabric finest fabric quality denim fabrics & garment manufacturer of 250s – worsted suiting 340s – cotton fabric garments to to
Slide 57: Manufacturing Excellence - Engineering, FMCG & Real Estate
Manufacturing Excellence - Engineering, FMCG & Real Estate Engineering FMCG Real Estate #2 Global supplier of Steel Files Amongst the top player in • Fast paced construction One of the leading global players in Ring Gears India’s Sexual wellness activity category • Acceptance of design • End to end
Slide 58: Domestic presence
Domestic presence One of the largest asset-light distribution network in multiple businesses Branded 20,000+ POS Textiles Branded 8,000+ POS Apparel Retail 1,370+ stores | ~95% franchisee (2.3 mn sq. ft ) Engineering ~1.5 lakh POS FMCG 6.5 lakh+ POS Pan-India network in over 600 towns & cities * Leg
Slide 59: International Presence
International Presence Global Footprint in 95+ Countries through diversified businesses India North Asia America Europe Dubai Ethiopia South America Africa Australia ~50 retail stores in overseas location Overseas Store Location Manufacturing Location * Legends represent indicative store locations;
Slide 60: Our Brands - Home grown portfolio of renowned brands
Our Brands - Home grown portfolio of renowned brands with high recall value Branded Textile Branded Apparel FMCG Real Estate Engineering Presence in Africa & Asia through multiple Umbrella Brand sub- brands 60
Slide 61: Raymond Group at a Glance
Raymond Group at a Glance Segments Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel 49% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Engineering JK Files & Engi
Slide 62: Thank You
¢ | ) gir Raymond Thank You www.raymond.in