Raymond Limited · NSE:RAYMOND

Raymond — Q4 FY2022 Earnings Presentation

61 slides from Raymond's earnings presentation, Mar 31, 2022

  1. Slide 1: Raymond Limited Q4FY22 Result Presentation

    Raymond Limited Q4FY22 Result Presentation 31st March, 2022

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents Q4 Highlights 4 Financial Highlights 9 Key Focus Areas 13 Segment Financials 24 Business Consolidation 44 Current Status and Outlook 45 Company Overview 48 3

  4. Slide 4: Q4 Highlights

    an Raymond Q4 Highlights

  5. Slide 5: Market Update

    Market Update o Upbeat sentiments in Domestic Market drives consumer demand: • Initial weeks of Q4 impacted due to Omicron-led restrictions, followed by recovery in February • March witnessed a sharp upturn in demand driven by upcoming strong wedding season in Q1 FY23 • Resumption of physical office

  6. Slide 6: Q4 FY22: A Quarter of Significant Achievements

    Q4 FY22: A Quarter of Significant Achievements Highest ever revenue of ₹ 2,032 crores, up 44% vs. PY Highest ever EBITDA of ₹ 358 crores with EBITDA margin of 17.6% Highest ever PBT of 242 crores & margin of 11.9% Significant net debt reduction by ₹ 165 Cr through internal accruals leading to net de

  7. Slide 7: Q4FY22 – A quarter of record achievements

    Q4FY22 – A quarter of record achievements ₹ Cr. Highest Revenue Highest EBITDA 17.4% 14.0% 10.6% 358 197 1,837 2,032 1,291 1,407 195 0.4% 5 Q4FY19 Q4FY20 Q4FY21 Q4FY22 Q4FY19 Q4FY20 Q4FY21 Q4FY22 Highest PAT 13.1% • Profitable topline growth across all businesses 3.7% 263 4.0% • Balance sheet streng

  8. Slide 8: 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 Q1 168 202 (8.1)% 260 • Hi

  9. Slide 9: Financial Highlights

    an Raymond Financial Highlights

  10. Slide 10: Consolidated Results – Q4FY22

    Consolidated Results – Q4FY22 Particulars (₹ Cr) Q4FY22 Q4FY21 FY22 FY21 YoY QoQ YoY Net Revenue 2,032 1,407 6,348 3,648 44% 161 625 Opex 506 408 1,754 1,320 24% 28 98 EBITDA 358 197 881 135 82% 55 161 EBITDA margin % 17.6% 14.0% 13.9% 3.7% 364 bps 143 bps 364 bps Depreciation 59 71 240 314 (16)% In

  11. Slide 11: Segment Results – Q4FY22

    Segment Results – Q4FY22 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr) Q4FY22 Q4FY21 Y-o-Y% Q4FY22 Q4FY21 Q4FY22 Q4FY21 Branded Textile 886 722 23% 201 163 22.7% 22.6% Branded Apparel 279 175 59% 31 (19) 11.0% (10.7%) Garmenting 213 126 69% 7 (3) 3.5% (2.3%) High Value Cotton Shirting 1

  12. Slide 12: Segment Results – FY22

    Segment Results – FY22 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr) FY22 FY21 Y-o-Y% FY22 FY21 FY22 FY21 Branded Textile 2,789 1,572 77% 492 164 17.6% 10.4% Branded Apparel 891 457 95% 43 (125) 4.8% NA Garmenting 725 549 32% 47 19 6.5% 3.5% High Value Cotton Shirting 572 258 122% 60 4

  13. Slide 13: Key Focus Areas

    an Raymond Key Focus Areas

  14. Slide 14: Key Focus Areas

    Key Focus Areas Liquidity Go to Market Cost Rationalization Digital Imperatives Management • Exclusive • Continued focused on • Focus on working Merchandise for • New Product & Range optimizing operating capital management Online Development expenses • Fasten Omni Channel • Monitoring inventory inte

  15. Slide 15: Cost rationalisation

    Cost rationalisation Pre-Covid Levels Particulars (₹ Cr) Q4FY22 Q3FY22 Q4FY21 FY22 FY21 Q4FY20 FY20 Employment Cost 247 227 180 880 674 234 996 A & SP 32 41 25 122 59 47 240 Others expenses 227 210 203 753 588 270 971 Total Opex 506 478 408 1,754 1,320 551 2,207 Interest Cost 57 57 61 228 276 72 303

  16. Slide 16: Net Debt reduction while maintaining liquidity levels

    Net Debt reduction while maintaining liquidity levels  NWC lower vs Dec-21 – led by improvement in overall management of debtors & creditors Particulars (₹ Cr) Mar'22 Dec'21 Mar'21 vs Dec'21 vs Mar-21 Net Working Capital 1,002 1,101 1,117 (99) (115)  Cash flow in FY22: Operating Cash Flow @ ₹ 677

  17. Slide 17: NWC days lower by over 50% from peak level

    NWC days lower by over 50% from peak level ₹ Cr. 98 days 2,051 1,855 45 days 1,359 1,117 1,101 1,002 Sep-19 Mar-20 Sep-20 Mar-21 Dec-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

  18. Slide 18: Net debt reduction by over 50% from peak level

    Net debt reduction by over 50% from peak level ₹ Cr. 2,378 1,859 1,817 1,416 1,253 1,088 Sep-19 Mar-20 Sep-20 Mar-21 Dec-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 throu

  19. Slide 19: Digital Imperatives: The new norm of business

    Digital Imperatives: The new norm of business Online Services Strengthening 3rd party tie-up • Integrating AI based recommendation for Home Assist & MTM Concierge personalisation • Shubharambh designer services to cater to wedding shopping • Aggressive play on e-commerce marketplaces with over 2x op

  20. Slide 20: Go to Market Initiatives - Fabric

    Go to Market Initiatives - Fabric Stretch and Sustainable Collection - Suiting Vibez Collection – B2C Shirting The Stretch Story | The Sustainable Way | • ‘SPANAX’ combines unique solution of comfort & • Latest collection of vibrant shirting fabrics titled ‘Vibez’ performance and offers two variatio

  21. Slide 21: 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 and Creaseless 21

  22. Slide 22: Ethnics range for targeted Occasion

    Ethnics range for targeted Occasion 22

  23. Slide 23: Parx Hunt Season 5

    Parx Hunt Season 5 120 Colleges 60+ City/Town 5 Lakh+ Student outreach: Onground India’s Best College Band 25 Lakh+ Reach: Online Season 5 23

  24. Slide 24: Segment Financials

    an Raymond Segment Financials

  25. Slide 25: Branded Textile

    Branded Textile

  26. Slide 26: Branded Textile

    Branded Textile Particulars (₹ Cr) Q4FY22 Q4FY21 % Var. FY22 FY21 % Var. Net Sales 886 722 23% 2,789 1,572 77% EBITDA 201 163 492 164 EBITDA margin 22.7% 22.6% 17.6% 10.4% • Branded Textile segment sales reported strong growth of 23% in Q4F22 vs PY o Growth witnessed across primary channels & retail

  27. Slide 27: Branded Apparel

    = Branded Apparel SS =e SAS

  28. Slide 28: Branded Apparel

    Branded Apparel Particulars (₹ Cr) Q4FY22 Q4FY21 % Var. FY22 FY21 % Var. Net Sales 279 175 59% 891 457 95% EBITDA 31 (19) 43 (125) EBITDA margin 11.0% NA 4.8% NA • Branded Apparel segment recorded a robust sales growth of 59% in Q4F22 vs PY o Strong consumer demand for our brands driven by resumptio

  29. Slide 29: Retail Network

    Retail Network

  30. Slide 30: Exclusive Retail Network

    Exclusive Retail Network 2.26 mn sq ft 2.33 mn sq ft 2.39 mn sq ft 1,486 1,351 1,411 349 EBO 261 290 47 35 35 MTM TRS 1,055 1,086 1,090 Mar’22 Dec’21 Mar’21  High consumer footfalls across 1,351 store network of TRS and EBOs  TRS network witnessed ~14% growth in average transaction value (ATV) in

  31. Slide 31: Garmenting

    Garmenting

  32. Slide 32: Garmenting

    Garmenting Particulars (₹ Cr) Q4FY22 Q4FY21 % Var. FY22 FY21 % Var. Net Sales 213 126 69% 725 549 32% EBITDA 7 (3) 47 19 EBITDA margin 3.5% NA 6.5% 3.5% • Garmenting segment reported a buoyant sales growth of 69% in Q4F22 vs PY o Driven by high demand from existing customers in US & Europe markets a

  33. Slide 33: High Value Cotton Shirting

    High Value Cotton Shirting

  34. Slide 34: High Value Cotton Shirting

    High Value Cotton Shirting Particulars (₹ Cr) Q4FY22 Q4FY21 % Var. FY22 FY21 % Var. Net Sales 175 133 31% 572 258 122% EBITDA 15 20 60 4 EBITDA margin 8.5% 14.7% 10.5% NA • High Value Cotton Shirting segment sales grew at a healthy 31%, led by higher demand of cotton fabric by our B2B customers • EB

  35. Slide 35: Engineering

    Engineering

  36. Slide 36: Engineering Business

    Engineering Business Particulars (₹ Cr) Q4FY22 Q4FY21 % Var. FY22 FY21 % Var. Net Sales 205 189 8% 812 541 50% EBITDA 34 37 123 83 EBITDA margin 16.4% 19.6% 15.1% 15.3% • On aggregate basis, the sales grew by 8% to ₹ 205 Cr as compared to ₹ 189 Cr in previous year. Sales growth was mainly driven in

  37. Slide 37: Raymond Realty – Go Beyond

    sR Raymond Raymono | REALTY Go Beyond 37

  38. Slide 38: 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

  39. Slide 39: Ten X Habitat - towers to be delivered ahead of RERA timeline

    Ten X Habitat - 3 towers to be delivered 2 yrs ahead of RERA Timeline Aerial View - 1 Aerial View - 2 Reference Image – Central Amenities Reference Image – Building Elevation 39

  40. Slide 40: The Address of GS – Construction in full swing

    The Address of GS – Construction in full swing Reference Image – Building Elevation Tower A – Foundation work in progress Tower B – Excavation work in progress 40

  41. Slide 41: Excellent Connectivity & Eco-system

    Excellent Connectivity & Eco-system 41

  42. Slide 42: Booking Update – KPI's

    Booking Update – KPI’s KPIs TEN X ADDRESS BY GS Particulars 9M FY22 Q4FY22 FY22 Till Mar'22 Q3FY22 Q4FY22 FY22 Till Mar'22 Number of booking 376 146 522 1909 117 62 179 179 Booking Value (₹ Cr.) 398 170 568 1887 252 148 400 400 Collections (₹ Cr.) 421 188 609 1091 11 30 41 41 Area (Mn Sq.ft.) 0.34 0

  43. Slide 43: Business Consolidation

    MR Raymond Business Consolidation

  44. Slide 44: 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

  45. Slide 45: Current Status and Outlook

    Current Status and Outlook 45

  46. Slide 46: Current Status of Operations & Outlook

    Current Status of Operations & Outlook Company expects to be on profitable growth momentum Domestic Market: Overall consumer sentiments are positive with summer wedding season, social gatherings Exports market: momentum in B2B businesses of Garmenting & Engineering with healthy order flow Real Estat

  47. Slide 47: Chairman & Managing Director on Q4FY22 performance

    Chairman & Managing Director on Q4FY22 performance “I am happy to announce that the company delivered a very strong quarterly performance consecutively in two quarters. Capitalizing on the strength of the brand along with our expansive network, we leveraged the growing demand both in domestic and in

  48. Slide 48: Company Overview

    an Raymond Company Overview

  49. Slide 49: 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 49

  50. Slide 50: 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

  51. Slide 51: 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 90

  52. Slide 52: Raymond Group led by

    Raymond Group led by Gautam Hari Singhania Chairman and Managing Director Raymond Ltd S L Pokharna Rajeev Bakshi Ravi Uppal Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Raymond Consumer Care Ltd JK Files & Engineering Ltd & its subsidiary RPAL Ex – Metro, Pepsi and Cadbury Ex

  53. Slide 53: Management Team

    Management Team S L Pokharna Amit Agarwal K A Narayan Jatin Khanna Director - Raymond Group CFO President – HR Head – Corporate Development Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex- Max Financial Services Essar Group Sunil Kataria Balasubramanian V Hemant Lakhotia CEO – Lifestyle MD – JK Files &

  54. Slide 54: 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

  55. Slide 55: 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

  56. Slide 56: 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 ma

  57. Slide 57: Domestic presence: asset-light distribution network

    Domestic presence One of the largest asset-light distribution network in multiple businesses Branded 20,000+ POS Textiles Branded 8,000+ POS Apparel Retail 1,350+ stores | ~80% 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

  58. Slide 58: International Presence

    International Presence Global Footprint in 90+ 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;

  59. Slide 59: Our 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 sub- Umbrella Brand brands 59

  60. Slide 60: 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

  61. Slide 61: Thank You

    C | ) SIX Raymond Thank You www.raymond.in

Raymond — Q4 FY2022 Earnings Presentation on 6ix