Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY21 Earnings Presentation
50 slides from Raymond's earnings presentation, August 2020
Slide 1: Raymond Limited Q1 FY21 Result Presentation
Raymond Limited Q1 FY21 Result Presentation
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 Company Overview 4 Q1 Highlights 10 Financial Highlights & Current Status 19 Way Forward 43 Annexures 45 3
Slide 4: Company Overview
sh Company Overview
Slide 5: 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 6: 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 7: Raymond Group at a Glance
Raymond Group at a Glance Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel Raymond Apparel (100%) 48% Garmenting Dress Masters Suit Celebration Everblue Apparel Silver Spark (100%) Apparel (100%) (100%) Apparel (100%) High Value Cotton Ethiopia *(100%) Shirti
Slide 8: Raymond Group Leadership Team
Raymond Group Leadership Team led by Gautam Hari Singhania Chairman and Managing Director Raymond Limited Nirvik Singh Rajeev Bakshi Ravi Uppal Non Executive Chairman Non Executive Chairman Non Executive Chairman Raymond Apparel Limited JK Helene Curtis Limited Ring Plus Aqua Limited Current – COO o
Slide 9: Management Team
Management Team Amit Agarwal Vipin Agarwal S L Pokharna K A Narayan Group CFO President – President – President – Ex- JSW, Jet Airways, Corporate Commercial Human Resources Essar Group Ex – Deepak Fertilizers, 36 years of Ex- Wockhardt Jindal Stainless Steel experience Ganesh Kumar K Mukund Raj Bala
Slide 10: Q1 Highlights
10 Q1 Highlights sh
Slide 11: Market Update
Market Update Q1 Impacted due to lockdown • During Lockdown 1.0 and 2.0, retail stores remained shut • Gradual reopening from Lockdown 3.0 onwards with easing of restrictions • Government permitted sale of certain nonessential items (including fabric and apparel) • Focus on offering safe shopping en
Slide 12: Q1 Highlights
Q1 Highlights Stores 2.0 Employees Safety • Embark online learning • Create safe shopping experience • Adopt ‘Work From Home’ culture • Adhere safety guidelines at • Sanitized & disinfected offices and stores plants • Contact-less payments • Health check compulsory at office & plants Cost Rationalis
Slide 13: Stores 2.0 – In store assurance: The new normal
Stores 2.0 – In store assurance: The new normal • Rigorous process of sanitization before stores are approved to open • New SOPs developed and staff trained on the guidelines Safety Measures called out at store entrance Social distancing Sanitizers, Gloves, Masks Staff in PPE Kit Temperature check m
Slide 14: 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 15: Cost Rationalisation
Cost Rationalisation Q1FY21 Opex Q1FY20 Opex Q4FY20 Opex Rs 275 Cr Rs 494 Cr Rs 551 Cr Y-o-Y reduction by 44% i.e. Rs 220 Cr ; Q-o-Q reduction by 50% i.e. Rs 276 Cr INR Cr Q1FY21 Q1FY20 Q4FY20 Y-o-Y % Q-o-Q % Employment Cost 171 243 234 -30% -27% A & SP 3 41 47 -92% -93% Others* 101 211 270 -52% -63
Slide 16: Liquidity Management: Maintained at March levels
Liquidity Management: Maintained at March levels NWC lower vs March by Rs 305 Cr mainly due to collections Funding NCDs worth Rs 145 Cr issued during the quarter Cost rationalisation Y-o-Y reduction by 44% i.e. Rs 220 Cr ; Q-o-Q reduction by 50% i.e. Rs 276 Cr Zero Capex during the quart
Slide 17: 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 18: New Business Opportunity: Raymond Care Initiative
New Business Opportunity: Raymond Care Initiative Personal Protective Equipment (PPE) Sanitization Products PPE Suit Masks Latex Gloves Hand Sanitizer: Hand Wash 100ml, 200 ml, 5 ltr Launched a range of sanitizing products including hand cleansers, hand wash and high alcohol content cologne meetin
Slide 19: Financial Highlights & Current Status
Financial Highlights & Current Status 19
Slide 20: Consolidated Results – Q1FY21
Consolidated Results – Q1FY21 Post Ind AS 116 Particulars (INR Cr) Q1 FY21 Q1 FY20 Net Revenue 222 1,470 EBITDA (167) 144 PBT before exceptions (322) (11) Taxes 101 (1) Associate / JV / Minority (21) (3) Net Profit (242) (15) Net Revenue includes Rs 17.4 Cr on account of rent concessions recognized
Slide 21: Segment Results – Q1 FY21
Segment Results – Q1 FY21 Post Ind AS 116 Revenue EBITDA Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Q1FY21 Q1FY20 Branded Textile 17 600 -97% (95) 40 Branded Apparel* 0 313 - (38) 40 Garmenting 100 190 -48% (6) 3 High Value Cotton Shirting 6 174 -97% (17) 27 Tools and Hardware 20 91 -78% (14) 7 Auto
Slide 22: Balance Sheet & Performance Indicators
Balance Sheet & Performance Indicators Particulars (INR Cr) June’20 Mar’20 June'19 Net Worth 2,216 2,537 2,003 Net Debt 1,827 1,859 2,303 Operational Cash Flow (quarter) 121 179 -94 Free Cash Flow (quarter) 63 80 -215 Key Ratios as on Jun’20 Mar’20 Jun'19 Net Debt / Equity 0.8x 0.7x 1.1x Net Working
Slide 23: Branded Textile
Branded Textile 23
Slide 24: Branded Textile
Branded Textile Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Net Sales 17 600 -97% EBITDA (95) 40 - EBITDA margin - 6.7% Q1 FY21 Primary sales impacted on account of limited secondary sales – due to lockdown & related low consumer demand All plants remained shut during the quarter Current Status
Slide 25: Branded Apparel
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Slide 26: Branded Apparel
Branded Apparel Particulars (INR Cr) Q1FY21 Q1FY20 Net Sales* 0 313 EBITDA (38) 40 EBITDA margin - 12.7% * net of returns and credit notes Q1 FY21 Due to lockdown & related low consumer demand, primary sales as well as secondary sales impacted Current Status ~95% of EBOs and ~85% of LFS counters
Slide 27: Retail Network
Retail Network 27
Slide 28: Exclusive Retail Network & Current Status
Exclusive Retail Network & Current Status 2.53 mn sq ft 2.52 mn sq ft 1,638 1,608 EBO 436 431 MTM 67 65 Net 30 stores closed during the quarter TRS 1,135 1,112 Mar’20 June’20 Current Status The Raymond Shop (TRS) network ~95% of TRS operational Consumer demand back to ~50% of previous year level
Slide 29: Strong Distribution Network
Strong Distribution Network Branded Textile 5 • 20,000+ points of sale across 54 6 600+ cities and towns 14 31 • 188+ Wholesalers 50 63 1 • 1,360+ MBOs 2 • Across Raymond Shop (TRS) - 70 173 12 1 Tier I to VI towns 80 1 92 74 31 85 1 Branded Apparel 21 • Presence in over 500 cities and 23 towns 232
Slide 30: Garmenting
Garmenting 30
Slide 31: Garmenting
Garmenting Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Net Sales 100 190 -48% EBITDA (6) 3 EBITDA margin - 1.6% Q1 FY21 Effective repurposing of our factories yielded over Rs. 50 Crores of revenues from PPE products Current Status Bulk and MTM orders for US, Japan & UK market gradually increasing
Slide 32: High Value Cotton Shirting
High Value Cotton Shirting 32
Slide 33: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Net Sales 6 174 -97% EBITDA (17) 27 - EBITDA margin - 15.4% Q1 FY21 Both plants remained shut during the quarter due to lockdowns Current Status Plants are now operational from July onwards mainly catering to B2B domestic custo
Slide 34: Tools & Hardware, Auto Components
Tools & Hardware Auto Components 34
Slide 35: Tools and Hardware
Tools and Hardware Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Net Sales 20 91 -78% EBITDA (14) 7 - EBITDA margin - 8.1% Q1 FY21 Resumed production since May to service pending export orders ~50% revenue from exports ; mainly in Africa and LATAM Current Status The business is clocking revenue at
Slide 36: Auto Components
Auto Components Particulars (INR Cr) Q1FY21 Q1FY20 Y-o-Y% Net Sales 21 68 -69% EBITDA (1) 13 - EBITDA margin - 19.9% Q1 FY21 Resumed to service pending export orders from May onwards ~75% revenue from exports ; mainly in Europe Current Status As the auto sector is reviving, the business is ope
Slide 37: Raymond Realty
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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 Total 10 towers with ~2.7 mn sq.ft of saleable area Project Details Total units planned for sale: 2,976 | 2BHK: 2,314; 1BHK: 662
Slide 39: Construction Update – Current Status
Construction Update – Current Status Tower - A Tower - C ____ 7th slab ____ 7th slab ____ 6th slab ____ 6th slab ____ 5th slab ____ 5th slab ____ 4th slab ____ 4th slab ____ 3rd slab ____ 3rd slab ____ 2nd slab ____ 2nd slab ____ 1st slab ____ 1st slab Tower - B Tower - D ____ 7th slab ____ 6th slab
Slide 40: Financial Update – KPI's
Financial Update – KPI’s KPI's Till Mar'20 Q1FY21 Till Jun'20 Bookings: No. of bookings 950 13 963 Area (mn sq. ft.) 0.8 0.01 0.8 Value of Bookings (Rs Cr) 960 10 970 Customers Collection (Rs Cr) 221 14 235 Capital Employed (Rs Cr)* 256 256 256 *excludes TDR of Rs 50 Cr and Development right of Rs 3
Slide 41: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 41
Slide 42: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant 42
Slide 43: Way Forward
Way Forward 43
Slide 44: Way Forward
Way Forward Increasing trend in sales Expect demand to pickup in H2 on account of festivities & wedding seasons Raymond well poised for recovery led by strong product portfolio and deep penetration Cost Optimisation Cost reduction initiatives expected to reduce full year opex by ~30-33% vs PY
Slide 45: Annexures
Annexures 45
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
hh Raymond Thank You www.raymond.in