Raymond Limited · NSE:RAYMOND
Raymond — Q3 FY2021 Earnings Presentation
50 slides from Raymond's earnings presentation, Feb 9, 2021
Slide 1: Exchange filing cover letter
RL/SE/AC/20-21/95 February 09, 2021 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 - 400 051 Scrip Code: 500330 Symbol: RAYMOND Luxe
Slide 2: Raymond Limited Q3FY21 Result Presentation
Raymond Limited Q3FY21 Result Presentation
Slide 3: 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 4: Table of Contents
Table of Contents Company Overview 4 Q3 Highlights 9 Financial Highlights & Current Status 17 Way Forward 42 Annexures 44 3
Slide 5: Company Overview
sh Company Overview
Slide 6: 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 7: Raymond: A Group with Strong Leadership Position
Raymond: A Group with Strong Leadership Position # 1 player in Amongst leading 1st organised retailer Manufacturer of Near 100% worsted suiting men’s tailored suit in India world’s finest fabric consumer awareness fabrics in India manufacturers in the world One of the world’s One of the largest Larg
Slide 8: 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%) 48% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Tool
Slide 9: Management Team
Management Team Amit Agarwal Joe Kuruvilla S L Pokharna K A Narayan Group CFO CEO – Lifestyle President – President – Ex- JSW, Jet Airways, Ex- Uniliver PLC Commercial Human Resources Essar Group Ex- Wockhardt Ganesh Kumar Hemant Lakhotia Balasubramanian V COO – Lifestyle CEO – Tools & Hardware CEO
Slide 10: Q3 Highlights
sh Q3 Highlights
Slide 11: Market Update
Market Update Sequential improvement in recovery in Q3FY21 • Sentiments improved post unlocking 5 & 6 with normalcy restoration, allowed community gatherings & weddings • Higher recovery in Tier IV-VI largely driven by reverse migration, good harvest and lower COVID-19 impact • Demand improved in Oc
Slide 12: 9mFY21 Highlights
9mFY21 Highlights Cost Rationalisation • Sales & marketing, manpower & Liquidity Management rentals • Focus on collections and inventory • Restructuring organization to reduction ensure efficiencies • Rationalize capex New Business opportunities Digital Imperatives Raymond Care Initiative • Expand O
Slide 13: Cost rationalisation
Cost rationalisation Particulars (Rs Cr) Q3FY21 Q3FY20 9mFY21 9mFY20 Q3 (Y-o-Y %) 9m (Y-o-Y %) Employment Cost 169 255 494 762 -34% -35% A & SP 13 71 34 192 -81% -83% Others* 152 253 385 702 -40% -45% Total Opex 334 580 913 1,656 -42% -45% Continued Focus on Cost Rationalisation o Fixed cost conti
Slide 14: Liquidity strengthens and Debt reduction in Q3
Liquidity strengthens and Debt reduction in Q3 Strong focus on collections & reduction in inventory Particulars (Rs Cr) Dec'20 Sep'20 Mar'20 Vs Sep Vs Mar Net Working Capital 1,190 1,359 1,855 (169) (665) Liquidity position strengthened compared to Sep-20 & March-20 levels: Particulars (Rs Cr) D
Slide 15: Update on New Business Opportunity and initiatives
Update on New Business Opportunity and initiatives Expansion of Premium Brand Personal Protective Equipment Expansion of Fabric offering portfolio (PPE) Sanitizer PPE Suit Masks Latex Hand Wash SKU’s portfolio Gloves 100 ml, 200 ml, 5 ltr. Launched a new range of sanitizing Utilizing Bengaluru &
Slide 16: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Digital Order Booking Strengthening 3rd party tie-up • Moving from physical • Aggressive play on tradeshows to digital rendering e-commerce marketplaces of samples & 3D modelling with over 2x more options • Shifting to digital swatch books, made availabl
Slide 17: Stores 2.0 – Reassuring customers & incentivizing them
Stores 2.0 – Reassuring customers & incentivizing them Video campaign focusing on Pre-booking offer Store opening communication customer advocacy Videos shared through LinkedIn and PAN India, through Member SMS, Facebook, Direct SMS with video link Facebook pages Twitter, Instagram Concierge service
Slide 18: Financial Highlights & Current Status
Financial Highlights & Current Status 17
Slide 19: Consolidated Results – Q3 and 9mFY21
Consolidated Results – Q3 and 9mFY21 Particulars (INR Cr) Q3FY21 Q2FY21 Q3FY20 9mFY21 9mFY20 Net Revenue 1,286 732 1,905 2,240 5,287 Opex 334 304 580 913 1,656 EBITDA 157 -52 226 -62 606 EBITDA margin 12.2% -7.1% 11.8% -2.7% 11.5% PBT 12 -210 60 -520 121 Taxes -1 80 -22 180 -13 Associate / JV / Mino
Slide 20: Segment Results – Q3FY21
Segment Results – Q3FY21 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (INR Cr) Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Branded Textile 603 866 102 158 16.9% 18.3% Branded Apparel 211 488 6 29 3.0% 5.9% Garmenting 137 239 9 10 6.6% 4.2% High Value Cotton Shirting 86 168 13 23 14.7% 13.9% Too
Slide 21: Segment Results – 9mFY21
Segment Results – 9mFY21 Post Ind AS 116 Revenue EBITDA Particulars (INR Cr) 9mFY21 9mFY20 9mFY21 9mFY20 Branded Textile 850 2,335 1 337 Branded Apparel 282 1,329 -106 118 Garmenting 423 662 22 25 High Value Cotton Shirting 125 503 -15 77 Tools and Hardware 224 297 23 35 Auto Component 128 161 23 28
Slide 22: Balance Sheet & Performance Indicators
Balance Sheet & Performance Indicators Particulars Dec'20 Sep'20 June'20 Mar'20 Net Worth (Rs Cr) 2,109 2,086 2,216 2,464 Net Debt (Rs Cr) 1,583 1,817 1,827 1,859 Net Debt / Equity (X) 0.75 0.87 0.82 0.75 Net Working Capital (Rs Cr) 1,190 1,359 1,550 1,855 Cash flow Positive for Q3FY21: • Operating
Slide 23: Branded Textile
Branded Textile
Slide 24: Branded Textile
Branded Textile Particulars (Rs Cr) Q3FY21 Q3 FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 603 866 -30% 850 2,335 -64% EBITDA 102 158 1 337 EBITDA margin 16.9% 18.3% 0.1% 14.5% Recovery of 70% vs PY driven by pickup in wholesale and trade channels on account of festive & wedding demand and gifting s
Slide 25: Branded Apparel
Branded Apparel Fon EAD IND IGEN FES VESHOPEING
Slide 26: Branded Apparel
Branded Apparel Particulars (Rs Cr) Q3FY21 Q3 FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 211 488 -57% 282 1,329 -79% EBITDA 6 29 -106 118 EBITDA margin 3.0% 5.9% - 8.9% Festive & marriage demand in the retail channels enabled recovery of 43% in Branded Apparel segment However, performance impact
Slide 27: Retail Network
=z er kat i ce = Te 1 a — - i Retail Network
Slide 28: Exclusive Retail Network & Current Status
Exclusive Retail Network & Current Status 2.48 mn sq ft 2.46 mn sq ft 1,577 1,559 EBO 405 381 MTM 58 51 TRS 1,114 1,127 Sep’20 Dec’20 Q3 FY21 Opened 19 stores during the quarter mainly in Tier III – VI towns Additionally, store rationalisation in progress to make the retail (mainly EBO) portfoli
Slide 29: Strong Distribution Network
Strong Distribution Network 6 Branded Textile 47 6 • 20,000+ points of sale across 14 32 600+ cities and towns 43 57 1 • 180+ Wholesalers 2 • 1,380+ MBOs 70 169 • Across TRS - Tier I to VI towns 12 1 87 1 91 73 31 84 1 Branded Apparel 22 23 • Presence in 500+ cities & towns 227 • 381 EBOs 77 • 5,425
Slide 30: Garmenting
ea “- Garmenting
Slide 31: Garmenting
Garmenting Particulars (Rs Cr) Q3FY21 Q3FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 137 239 -43% 423 662 -36% EBITDA 9 10 22 25 EBITDA margin 6.6% 4.2% 5.2% 3.8% Topline includes contribution from PPE sales and in Bulk business, customers in US & Europe placed orders however, due to fresh lockdowns
Slide 32: High Value Cotton Shirting
High Value Cotton Shirting
Slide 33: High Value Cotton Shirting
High Value Cotton Shirting Particulars (Rs Cr) Q3FY21 Q3FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 86 168 -49% 125 503 -75% EBITDA 13 23 -15 77 EBITDA margin 14.7% 13.9% -12.4% 15.3% Recovery mainly led by higher contribution from high margin yarn sales However, fabric performance was impacted d
Slide 34: Tools & Hardware / Auto Components
Tools & Hardware Auto Components
Slide 35: Tools and Hardware
Tools and Hardware Particulars (Rs Cr) Q3FY21 Q3FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 104 103 1% 224 297 -25% EBITDA 21 13 23 35 EBITDA margin 20.5% 12.9% 10.1% 11.8% Topline back to previous year levels led by growth in domestic markets and well supported by exports to LATAM & US markets M
Slide 36: Auto Components
Auto Components Particulars (Rs Cr) Q3FY21 Q3FY20 % Var. 9mFY21 9mFY20 % Var. Net Sales 59 41 44% 128 161 -20% EBITDA 14 6 23 28 EBITDA margin 24.3% 14.6% 18.3% 17.1% Topline led by strong growth in domestic as well as exports market EBITDA margin improvement led by improved plant utilization le
Slide 37: Raymond Realty
Raymono | REALTY Go Beyond .@ B. gir aymoria
Slide 38: 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 ~2.7 mn sq.ft of saleable area Details Total units planned for sale: 2,976 | 2BHK: 2,314; 1BHK: 662
Slide 39: Construction Update – Current Status
Construction Update – Current Status Tower - 3 Tower - 2 Tower - 1 Tower - 4 26th floor slab completed for Tower 1, 2 & 3 and 7th floor work in progress for Tower 4 Tower 5, 6, 7 & 8 – Excavation completed & foundation work in progress 38
Slide 40: Financial Update – KPI’s
Financial Update – KPI’s KPI's Till Mar'20 Q1FY21 Q2FY21 Q3FY21 Till Dec'20 Bookings: No. of bookings 932 13 49 179 1,173 Area (mn sq. ft.) 0.8 0.01 0.04 0.13 1.01 Value of Bookings (Rs Cr) 925 10 39 147 1,121 Customers Collection (Rs Cr) 221 14 47 82 364 P&L Snapshot Particulars (Rs Cr) FY20 Q3FY21
Slide 41: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 40
Slide 42: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant 41
Slide 43: Way Forward
Way Forward 42
Slide 44: Way Forward
Way Forward Domestic Market Expect continued domestic demand driven by consumer sentiments Raymond well poised for recovery led by strong product portfolio & deep penetration Exports Extended Lockdowns due to second wave of covid-19 in US & Europe impacts demand Cost Optimisation On target t
Slide 45: Annexures
Annexures 44
Slide 46: Consolidated Financial Overview
Consolidated Financial Overview Revenue (Rs Cr) Profitability Ratios 11.2% 9.6% 9.1% 7.7% 10.5% 8.0% 9.1% 8.9% 6.8% 6.7% 4.7% 3.0% 5,296 5,509 6,025 6,708 6,571 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA Margin ROCE India Global Leverage Indicators 4.0 4.2 FY 20 Revenue by 3.5 Geograph
Slide 47: Profit & Loss Account Summary
Profit & Loss Account Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Revenue 5,296 5,509 6,025 6,708 6,571 7,194 EBITDA 506 423 546 702 440 680 EBITDA % 9.6% 7.7% 9.1% 10.5% 6.7% 9.5% EBIT 347 266 376 506 231 EBIT % 6.6% 4.8% 6.2% 7.5% 3.5% PBT before exceptional 158 88 192 273
Slide 48: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Branded Textile Revenue 2,702 2,714 2,915 3,153 2,917 3,152 EBITDA % 17.3% 14.1% 15.7% 13.8% 13.5% 14.9% Branded Apparel Revenue 1,119 1,270 1,424 1,647 1,619 1,911 EBITDA % 2.0% -1.0% 1.6% 3.7% -4.9
Slide 49: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Garmenting Revenue 593 639 691 779 843 873 EBITDA % 8.3% 8.4% 5.2% 5.1% 3.5% 4.3% Tools & Hardware* Revenue 394 350 365 401 376 395 EBITDA % 4.7% 2.0% 9.0% 10.7% 9.6% 11.0% Auto Components* Revenue 1
Slide 50: Thank You
nh Raymond Thank You www.raymond.in