Raymond Limited · NSE:RAYMOND
Raymond — Q4 FY2024 Earnings Presentation
55 slides from Raymond's earnings presentation, May 2024
Slide 1: Raymond Limited Q4 FY24 Result Presentation
R AY M O N D L I M I T E D Q 4 ’ F Y 2 4 R E S U LT P R E S E N TAT I O N 31st March 2024 1
Slide 2: Raymond Achieved Highest Quarterly Revenue & EBITDA
Raymond Achieved Highest Quarterly Revenue & EBITDA HIGHEST QUARTERLY OPERATING RECENT EVER QUARTERLY HIGHLIGHTS DEVELOPMENTS YoY 23% Revenue 39 Lifestyle NCLT hearing scheduled ₹2,688 Cr. New Stores Demerger on 9th May’24 for Opened Update Demerger approval. YoY 36% EBITDA 1st JDA Real Estate Area
Slide 3: Table of Content
Pages 1 Q4FY24 Highlights 4-9 2 Strategic Initiatives Undertaken 10-14 TABLE OF 3 Financial Highlights 15-21 CONTENT 4 Go To Market Initiatives 22-27 5 Segment Financials 28-47 6 Current Status and Outlook 48-50 7 Management 51-53 3
Slide 4: Q4FY24 Highlights
Q4FY24 HIGHLIGHTS SB SIX Raymon
Slide 5: Market Update
Market Update DOMESTIC MARKET EXPORTS MARKET Retail Market • Despite significant challenges of • Q4 began with modest consumer sentiments inflation, order book remained healthy as discretionary spends moderated in the for formal wear category in garmenting inflationary environment. • Demand levers:
Slide 6: Q4FY24 — Continued Momentum for Profitable Growth
Q4FY24 — Continued Momentum for Profitable Growth With record Revenue and EBITDA performance REVENUE EBITDA & Margins (%) PBT & Margins (%)# YoY Growth (₹Cr.) YoY Growth (₹Cr.) YoY Growth 19.4% (₹Cr.) 28% 12.0% 23% 38% 11.9% 11.5% 17.6% 17.3% 14.0% 4.6% 324 2,688 521 242 253 2,032 2,192 358 379 65 1
Slide 7: 11th Consecutive Quarters of Record Financial Performance
11th Consecutive Quarters of Record Financial Performance EBITDA & Margins (%) QoQ REVENUE QoQ 21% 10% 521 2,688 432 2,450 386 2,321 379 2,191 2,200 2,192 358 358 351 2,032 1,871 1,826 1,754 303 (₹Cr.) 1,583 256 19.4% 17.6% 235 17.6% 213 16.2% 16.3% 17.3% 16.6% 15.9% 13.5% 13.4% 14.0% (₹Cr.) Q2 FY22
Slide 8: Continued Focus on Optimizing NWC
Continued Focus on Optimizing NWC Peak Level 2,319 2,051 316 Acquired Real Estate 1,855 1,925 MPPL NWC 227 NWC 635 Real Estate 1,824 NWC 1,265 1,117 1,002 (₹Cr.) 1,368 Sep-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Mar-24 NWC ^ Excluding 98 71 68 Days MPPL • Key Initiatives: Strong emphasis on collection
Slide 9: Net Debt Free Years Ahead of Stated Guidance
Net Debt Free 2 Years Ahead of Stated Guidance Peak Level Including FMCG business Sale proceeds of 2,378 ₹2,825 Cr. 1,859 1,817 achieved Net Debt free status at 1,564 (₹Cr.) Group level 1,416 1,286 1,088 689 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Mar-24 Sep-23 680* 1,100 * Achieved
Slide 10: Financial Highlights
Financial HIGHLIGHTS SB SIX Raymon
Slide 11: Consolidated Results
Consolidated Results Q4FY24 and FY24 Particulars (₹ Cr.) Q4FY24 Q3FY24 Q4FY23 YoY FY24 FY23 YoY Net Revenue 2,688 2,450 2,192 23% 9,286 8,337 11% Opex 683 641 562 2,499 2,204 EBITDA (excluding ESOP) 521 432 379 38% 1,594 1,322 21% EBITDA Margin % 19.4% 17.6% 17.3% 17.2% 15.9% Reported EBITDA 516 426
Slide 12: Q4FY24 — Segment Results
Q4FY24 — Segment Results Post IndAS 116 Revenue EBITDA EBITDA % Q4 Q4 YoY Q4 Q4 YoY Q4 Q4 Particulars (₹ Cr.) FY24 FY23 (%) FY24 FY23 (%) FY24 FY23 Branded Textile 920 902 2% 201 196 3% 21.9% 21.8% Branded Apparel LIFESTYLE 409 332 23% 55 52 5% 13.4% 15.8% Garmenting BUSINESS* 280 305 (8%) 32 20 57%
Slide 13: FY24 — Segment Results
FY24 — Segment Results Post IndAS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr.) FY24 FY23 YoY% FY24 FY23 YoY% FY24 FY23 Branded Textile 3,450 3,364 3% 721 702 3% 20.9% 20.9% Branded Apparel LIFESTYLE 1,587 1,328 20% 189 144 31% 11.9% 10.8% Garmenting BUSINESS* 1,139 1,100 3% 109 84 30% 9.6% 7.6% H
Slide 14: Q4FY24 — Net Working Capital & Liquidity
Q4FY24 — Net Working Capital & Liquidity Particulars (₹Cr.) FY24 Operating Cash Flow 533 Free cash Flow 30 vs vs vs NWC higher in Mar-24 on QoQ basis: Particulars (₹Cr.) Mar’24& Dec’23 Sep’23 Mar’23 Dec’23 Sep’23 Mar’23 • Due to opening of new stores In the lifestyle NWC 2,003 1,925 1,927 1,265 78 7
Slide 15: Strategic Initiatives Undertaken
Strategic INITIATIVES UNDERTAKEN 15
Slide 16: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING RECENT VALUE UNLOCKING THE CORE (FY21-23) & GROWTH INITIATIVES in FY24 Reset the Business Selling of Demerger* of model during Covid FMCG Business Lifestyle Business Established Real Engineering Business forays into Shaping Scalable Estate Business sunr
Slide 17: Deleveraging Action — Selling of FMCG Business
Deleveraging Action — Selling of FMCG Business Enable Net Debt Free & Provides Growth Capital SOLD RCCL FMCG ₹2,825 Cr ₹2,200 Cr Business SALE AFTER-TAX Raymond Group Company PROCEEDS REALIZATION with trademarks of Park Avenue (FMCG category), Premium, KS and Kamasutra. Shareholding Structure in RCC
Slide 18: Demerger of Lifestyle Business
Demerger of Lifestyle Business Appointed date of Demerger: 1st April 2023 RAYMOND GROUP 3 Distinct Vectors of Growth RCCL Raymond Ltd. To be a listed Lifestyle Company (Existing Listed Company) 1 Lifestyle Real Estate 2 3 Engineering Business ₹7,000 Cr+. ~₹1,590+ Cr. ~₹1,800 Cr. Aggregate Sales in F
Slide 19: Issue of NCD to Group Company
Issue of NCD to Group Company To Repay External Debt KEY PARAMETERS OF NCD Transfer of ₹1,700 Cr. out of RCCL sale proceed from FMCG business from RCCL to Raymond Ltd. as NCD • Raymond Consumer Care Limited (RCCL) received Raymond Group proceeds through sale of FMCG business Company • To repay the e
Slide 20: Acquisition of Maini Precision
Acquisition of Maini Precision Forays into sunrise sectors of Aerospace, Defense and EV Components Business Source of Funding Step: 1 Internal Accrual of Engineering Business ₹107 Cr. External Debt ₹300 Cr. Raymond Ltd. Acquired Business of Debt from Raymond Ltd ₹275 Cr. Maini Precision Product (MPP
Slide 21: New JDA Launch — Premium Residential Projects
New JDA Launch — Premium Residential Projects Over 0.7 Mn Sq ft RERA Approved Carpet Area With 2,000 Cr.+ Revenue Potential Queens Court 8 towers with RERA approved carpet area ~0.7 Mn sq.ft. Received An Overwhelming Response with Booking of ~96 Total Units Planned: Units within 40 days of 782 (1BHK
Slide 22: Go To Market Initiatives
Go To MARKET INITIATIVES SB SIX Raymon 22
Slide 23: Go to Market Initiatives
Go to Market Initiatives SUITINGS & SHIRTING ULTIMO BLACK PLATINUM • Ultimo Black has a wide range of superior black. • Range has been expanded with the introduction of Super 180s, 160s, 150s, 140s and 130s Wool Rich fabric. Voyage Regio Italia SUPERLUXE • The luxurious suiting fabric made in Super
Slide 24: Go to Market Initiatives — Regio Italia
Go to Market Initiatives — REGIO ITALIA 24
Slide 25: Go to Market Initiatives — Apparel
Go to Market Initiatives — Apparel 25
Slide 26: Ethnix by Raymond
‘Ethnix by Raymond’ Ethnix Range for Targeted Occasion SMART ETHNIX WEDDING Collections Collections FESTIVE Collections 26
Slide 27: Digital Imperatives
Digital Imperatives The New Norm of Business 1 INSIGHTFUL ANALYTICS 2 INSIGHTFUL RETAIL Store Health Card – Store Dashboard Customer Connect – Tailoring Business • Store level Reports available for lifestyle Business. • Realtime collecting tailoring feedback on every • Feature engineering for chart
Slide 28: Segment Financials
Segment FINANCIALS SB SIX Raymon
Slide 29: Branded Textile
Branded Textile Particulars Q4 Q4 % Var. FY24 FY23 % Var. (₹Cr.) FY24 FY23 Net Sales 920 902 2% 3,450 3,364 3% EBITDA 201 196 3% 721 702 3% EBITDA margin 21.9% 21.8% 20.9% 20.9% 1. Top line higher in Q4FY24 Vs PY during the weaker market conditions and subdued customer demand. • Primary sales were m
Slide 30: Branded Apparel
Branded Apparel Particulars Q4 Q4 % FY24 FY23 % Var. (₹Cr.) FY24 FY23 Var. Net Sales 409 332 23% 1,587 1,328 20% EBITDA 55 52 5% 189 144 31% EBITDA margin 13.4% 15.8% 11.9% 10.8% ➢ Recorded sales growth of 23% in Q4FY24 Vs PY, driven by: ▪ Enhancing distribution reach with the opening of 200+ stores
Slide 31: Strategic Retail Network Expansion
Strategic Retail Network Expansion 2.61 Mn 2.63 Mn 2.49 Mn 2.36 Mn sq ft sq ft sq ft sq ft 1,518 1,512 1,453 1,409 409 380 345 316 EBO 44 46 43 40 MTM 1,065 1,086 1,065 1,053 TRS Mar'24 Dec'23 Sep'23 Mar'23 • Opened 56 ‘Ethnix by Raymond’ stores during the year with 114 stores as on 31st Mar 2024 TR
Slide 32: Garmenting
Garmenting Particulars Q4 Q4 % FY24 FY23 % Var. (₹Cr.) FY24 FY23 Var. Net Sales 280 305 (8%) 1,139 1,100 3% EBITDA 32 20 57% 109 84 30% EBITDA margin 11.3% 6.6% 9.6% 7.6% 1. Top line decline in Q4FY24 Vs PY due to ongoing Red Sea crisis and geopolitical issues • However, healthy momentum in orderboo
Slide 33: High Value Cotton Shirting
High Value Cotton Shirting Particulars Q4 Q4 % Var. FY24 FY23 % Var. (₹Cr.) FY24 FY23 Net Sales 213 187 14% 830 762 9% EBITDA 24 20 25% 95 85 12% EBITDA margin 11.5% 10.4% 11.4% 11.1% 1. Sales growth of 14% in Q4F24 vs PY: • Led by higher demand for linen fabric offerings from our B2B customers in t
Slide 34: Engineering Business
Engineering Business Particulars Q4 Q4 % FY24 FY23 % Var. (₹Cr.) FY24 FY23 Var. Net Sales 234 219 7% 861 864 0% EBITDA 37 33 13% 122 122 0% EBITDA margin 15.8% 14.9% 14.2% 14.1% 1. The segment witnessed a growth of 7% in Q4F24 vs PY: • Growth driven by demand in auto components category especially i
Slide 35: Raymond Realty
Cqp EX Raymond Raymono | REALTY Go Beyond
Slide 36: Real Estate Business at a Glance
Real Estate Business at a Glance Development of Own Land & JDA led business model in MMR region THANE LAND: (~100 Acre^) JDA LED BUSINESS MODEL Asset Light Expansion FURTHER POTENTIAL AREA UNDER Development Development Appointed: Developer Appointed: Preferred ~60 Acre ~40 Acre Launched Project for
Slide 37: Existing Projects Booking Update
Existing Projects Booking Update (as on 31st March 2024) Q4 Project 10 towers with Particulars FY23 FY24 FY24 Till Date RERA carpet area % No of Bookings 542 72 359 2,810 UNIT SOLD ~1.7 Mn sq.ft. RERA Carpet Area* 0.31 0.04 0.21 1.53 Total Units Planned: Value of Bookings (Cr.) 663 86 425 2,974 3,10
Slide 38: Existing Projects Booking Update
Existing Projects Booking Update (as on 31st March 2024) Project 2 Towers with Particulars Q4FY24 RERA Carpet Area Till Date % No of Bookings UNIT SOLD 58 228 ~0.7 Mn sq.ft. LAUNCHED UNITS RERA Carpet Area* 0.07 0.26 Total Units Planned: Value of Bookings (Cr.) 149 575 440 Launched in July-23; Tower
Slide 39: Existing Projects Booking Update
Existing Projects Booking Update (as on 31st March 2024) Project 8 Towers with Particulars Q4FY24 RERA Carpet Area Till Date % No of Bookings UNIT SOLD 96 96 ~0.7 Mn sq.ft. LAUNCHED UNITS RERA Carpet Area* 0.09 0.09 Total Units Planned: Value of Bookings (Cr.) 298 298 782 Queens Court Launched in Fe
Slide 40: Ten X Habitat
Ten X Habitat Three towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 & 5 Towers 10, 9, 8, 7 & 6 Central Amenities Building Elevation Reference Image Reference Image 40
Slide 41: The Address By GS
The Address By GS Construction in Full Swing Building Elevation Tower (A) 37th Floor Slab Completed Tower (B) 29th Floor Slab Completed Reference Image (Tower A & Tower B) 41
Slide 42: Ten X ERA
Ten X ERA Launched 3rd Tower in Dec-23 Tower (B) Podium-3 slab work in progress Building Elevation Tower (A) Plinth work in progress Tower (C) 2nd floor slab in progress Reference Image 42
Slide 43: The Address by GS Season 2
The Address by GS Season 2 Launched in Q2FY24 Building Elevation Tower (C) Plinth slab work in progress Tower (D) Raft work in progress Reference Image (Tower C & Tower D) 43
Slide 44: Invictus by GS
Invictus by GS Launched in Q2FY24 Building Elevation Foundation Plinth slab work in progress Reference Image 44
Slide 45: New Launch: Launched First JDA Project in Bandra
New Launch: Launched First JDA Project in Bandra Launched in Q4FY24: Received An Overwhelming Response with Booking of ~96 Units within 40 days of launch Foundation Building Elevation Plinth slab work in progress Queens Court Reference Image 45
Slide 46: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 46
Slide 47: Real Estate Business
Real Estate Business Q4 Q4 Particulars (₹Cr.) % Var. FY24 FY23 % Var. FY24 FY23 Net Sales 677 289 134% 1,593 1,115 43% EBITDA 171 70 143% 370 287 29% EBITDA margin 25.2% 24.3% 23.2% 25.7% ➢ Strong booking momentum maintained during the quarter: ▪ With the booking value of ₹ 840 Cr in Q4FY24 vs ₹ 473
Slide 48: Current Status & Outlook
Current Status & OUTLOOK SB SIX Raymon 48
Slide 49: Current Status of Operations & Outlook
Current Status of Operations & Outlook a) DOMESTIC MARKET 1 LIFESTYLE BUSINESS b) EXPORTS MARKET • Continued focus on innovation, new offerings such as • Global inflationary and Geo-political situations smart Ethnix and casual wear around the world remain concerns • Expand retail store network mainl
Slide 50: Chairman & Managing Director on Q4FY24 performance
Chairman & Managing Director on Q4FY24 performance I am satisfied with the performance across businesses, and they have demonstrated consistent growth throughout the year. Our Lifestyle business showed strong perseverance and recorded growth despite headwinds and muted consumer demand. For our Real
Slide 51: Management
MANAGEMENT SB SIX Raymon
Slide 52: Raymond Group Led by
Raymond Group Led by S.L. POKHARNA RAVI UPPAL Director Non-Executive Chairman Raymond Ltd. JK Files & Engineering Ltd & RPAL GAUTAM HARI SINGHANIA Ex – L&T, JSW Chairman & Managing Director Currently – CMD of Steel Infra Solutions P. Ltd Raymond Ltd. 52
Slide 53: Raymond Management Team
Raymond Management Team S.L. POKHARNA AMIT AGARWAL K.A. NARAYAN JATIN KHANNA Director Group CFO President – HR Head – Corporate Raymond Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Development Essar Group Ex- Max Financial Services SUNIL KATARIA HARMOHAN SAHNI BALASUBRAMANIAN V ARVIND MATHUR CEO-Lifesty
Slide 54: 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 55: Thank You
a gir Raymone [ THANK YOU sR