Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY20 Earnings Presentation
47 slides from Raymond's earnings presentation, Aug 1, 2019
Slide 1: Exchange filing cover letter
SECRETARIAL DEPARTMENT Jekegram, Pokhran Road No. I , Thane IWI . 400 606 Maharashtra, India CIN No.: ll7117MH1925PLC00! 208 Tel: (91-22) 4036 7000 / 6152 7000 fax: (91-22) 2541 2805 www.raymond.in RL/SE/AC/19-20/31 August 01, 2019 The Department of Corporate Services - CRD The National Stock Exchan
Slide 2: Press Release: Financial Results June Quarter
CORPORATE OFFICE NEW HIND HOUSE, NAROTIAM MORARJEE MARG, BALLARD FSTATE, MUMBAI 400 001, INDIA Press Release For Immediate Dissemination RAYMOND LIMITED - FINANCIAL RESULTS JUNE QUARTER (Qt) Revenue@ Rs.1,467 er up by 14% driven by growth across all core segments Key highlights of the quarter • Cons
Slide 3: Quarterly Highlights (pre IND AS 116)
Quarterly Highlights (pre IND AS 116) Segmental Performance: Branded Textile Segment sales at Rs. 600 Crores, higher by 2% over previous year led by 6% growth in the suiting business on account of expansion to new smaller outlets through low priced products in the subdued consumer sentiment quarter.
Slide 4: About Raymond
About Raymond Raymond offers end-to-end solutions for fabrics and garmenting. It has some of the leading brands in its portfolio including Raymond, Park Avenue, Raymond Ready to Wear, Parx, and Color Plus amongst others. Raymond has one of the largest exclusive retail network in the textile and fash
Slide 5: Result Presentation Quarter ended 30th June 2019
}I~ Raymon~ Result Presentation Quarter ended 30th June, 2019
Slide 6: Disclaimer
Disclaimer fl~ Raymon~ • 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 an
Slide 7: Table of Contents
Table of Contents Market Overview 04 Initiatives and Awards 06 Financial Highlights 09 Ind-As 116 Impact 14 Performance of Segments 19 Raymond Realty 35 Way Forward 41 3
Slide 8: Market Overview
fl~ Raymon~ Market Overview 4
Slide 9: Market Overview
Market Overview Textile • Demand remained sluggish across markets • Trade channels mainly impacted due to continued liquidity crunch Apparel & Retail • Growth likely to be driven by store expansion among apparel retailers • Moderate SSSG despite early EOSS mainly due to subdued consumer sentiments •
Slide 10: Initiatives and Awards
fl~ Raymon~ Initiatives and Awards 6
Slide 11: Initiatives
Initiatives Broadening Retail Horizon through Asset light expansion Ethnix Mini TRS 6 New Ethnix Stores in Expansion of the small Q1FY20, totaling to store formats continues - 8 stores as at Jun’19 308 stores as at Jun’19 Style Play Tailoring Hubs 6 New Style Play Stores 3 tailoring hubs added in in
Slide 12: Awards
Awards Digital Excellence Trescon Big CIO Awards, 2019 Annual Report Mobility Solution of the year Award for exemplary Won Multiple awards for Award for Midas App technology initiatives & Annual Report from LACP at CSCMP IT innovation and IR Magazine 8
Slide 13: Financial Highlights
fl~ Raymon~ Financial Highlights 9
Slide 14: Financial Highlights – Q1FY20
Financial Highlights – Q1FY20 Revenue (₹ Cr) EBITDA (₹ Cr) & EBITDA margin % 14% 8.3% Net Profit (₹ Cr) 1,289 1,467 7.1% 107 105 -2% 0 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 -12 Q1 FY19 Q1 FY20 Net Debt to Equity Ratio NWC days* A&SP & % to revenue 3.1% 2.8% 1.1 1.1 101 102 40 41 Jun'18 Jun'19 Jun'18 Jun'1
Slide 15: Consolidated Results
Consolidated Results Pre Ind-AS 116 Particulars (INR Cr) Q1 FY20 Q1 FY19 Y-o-Y% Net Revenue 1,467 1,289 13.8% Net Sales 1,435 1,251 14.7% EBITDA 105 107 -2.3% EBITDA margin 7.1% 8.3% -118bps PBT before exceptions -7 8 - PBT margin -0.4% 0.6% -106 bps Net Profit -12 0 - Profit margin -0.8% 0% -81 bps
Slide 16: Segment Results – Q1 FY20
Segment Results – Q1 FY20 Pre Ind-AS 116 Particulars (INR Cr) Revenue Growth EBITDA EBITDA Growth (YoY%) (INR Cr) (YoY%) (INR Cr) Margin Branded Textile 600 2% 30 5.0% - 245 bps Branded Apparel 313 12% 16 5.1% 275 bps Garmenting 190 16% 3 1.6% -431 bps High Value Cotton 174 11% 27 15.4% 303 bps Shir
Slide 17: Balance Sheet & Performance Indicators (Pre Ind-AS 116)
Balance Sheet & Performance Indicators (Pre Ind-AS 116) Particulars (INR Cr) Q1 FY19 Q1 FY20 Net Worth 1,860 2,003 Net Debt 2,135 2,303 Cash Flow from Operations -135 -94 Free Cash Flow -216 -215 Key Ratios Jun'18 Jun'19 Net Debt / Equity 1.1 1.1 NWC Days# 101 102 NWC Days excl. Real Estate# 102 97
Slide 18: Ind-As Impact
fl~ Raymon~ Ind-As 116 Impact 14
Slide 19: IND AS – Overview (effective from 1st April 2019)
IND AS 116 – Overview (effective from 1st April 2019) }ll Raymon~ • No distinction between Finance Lease & Operating Lease • Accounting Treatment • All leases to be recognized in the balance sheet as Asset and Liability • ‘Lease Obligation’ is measured at present value of lease payments to be made o
Slide 20: IND AS 116 – Impact on Financials
IND AS 116 – Impact on Financials Balance Sheet Income Statement IND IND IND AS17 IND AS116 AS17 AS116 Assets - Revenue - Other Expenses - Liabilities - EBITDA - Depreciation - Off Balance Assets EBIT - Sheet – Rights / - Obligations Liabilities Interest - PBT - 16
Slide 21: IND AS – Raymond Adoption
IND AS 116 – Raymond Adoption }ll Raymon~ • Raymond has seamlessly transitioned to IND AS 116 w.e.f 1st April 2019 • No re-statement of past period • Raymond has lease terms ranging from 3 to 9 yrs on average • Non cancellable minimum period – as per the agreements 17
Slide 22: IND AS 116 – Lease Impact Summary
IND AS 116 – Lease Impact Summary Particulars (INR Cr) Pre IND AS 116 Impact Post IND AS 116 Net Revenue 1,467 3 1,470 Net Sales 1,435 (0) 1,435 EBITDA 105 39 144 EBITDA margin 7% 3% 10% Depreciation 50 31 81 EBIT 55 8 63 Interest Cost 61 12 74 PBT before exceptions (7) (4) (11) PBT margin -0.4% -0.
Slide 23: Performance of Segments
fl~ Raymon~ Performance of Segments 19
Slide 24: Branded Textile
Branded Textile
Slide 25: Branded Textile
Branded Textile Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 600 589 2% EBITDA 30 44 -31% EBITDA margin 5.0% 7.5% -245 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 40 Cr and EBITDA Margin is 6.7% • Modest topline growth of 2% due to consumption slowdown on account of subdued consumer sentiments
Slide 26: Branded Textile: Suiting and B2C Shirting
Branded Textile Suiting Suiting grew by 6% - Lower secondary sales and liquidity crunch impacted our trade channels However growth was led by higher volumes on account of expansion to new smaller outlets through low priced products B2C Shirting Shirting de-grew by 12% mainly due to lower off-t
Slide 27: Branded Apparel
Branded Apparel
Slide 28: Branded Apparel
Branded Apparel Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 313 278 12% EBITDA 16 7 143% EBITDA margin 5.1% 2.4% 275 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 40 Cr and EBITDA Margin is 12.8% • Branded Apparel growth driven by Strong growth in Park Avenue and Parx Increased Channel penet
Slide 29: Retail Network
Retail Network
Slide 30: Exclusive Retail Network
Exclusive Retail Network 2.4 mn 2.4 mn 42 additions sq ft sq ft 10 32 1,458 1,444 0 20 1 360 EBO 335 7 MTM * 68 28 closures 67 TRS 1,041 1,031 Jun19 Mar 18 TRS MTM EBO TRS MTM EBO Jun 19 • During the quarter Added 42 new stores and closed 28 stores 95% of stores added on Franchisee basis in line
Slide 31: Strong Distribution Network
Strong Distribution Network Branded Textile 4 • 20,000+ points of sale across 52 4 600+ cities and towns 16 24 • 180+ Wholesalers 46 54 • 1,340+ MBOs 1 • Across Raymond Shop (TRS) - 49 158 8 1 Tier I to VI towns 67 1 81 62 27 80 1 Branded Apparel 18 • Presence in over 500 cities and 14 towns 228 • 3
Slide 32: Garmenting
Garmenting
Slide 33: Garmenting
Garmenting Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 190 164 16% EBITDA 3 10 -68% EBITDA margin 1.6% 6.0% -431 bps No impact of Ind-AS 116 • Growth led by exports to US and Japan markets • EBITDA margin declined to 1.6% mainly due to o Change in product mix which impacted the gross margin
Slide 34: High Value Cotton Shirting
High Value Cotton Shirting
Slide 35: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 174 158 11% EBITDA 27 19 38% EBITDA margin 15.4% 12.4% 303 bps No impact of Ind-AS 116 • Sales growth led by yarn sales from Amravati plant • EBITDA margin improvement led by improved product mix and operating efficienci
Slide 36: Tools & Hardware, Auto Components
Tools & Hardware 32 Auto Components
Slide 37: Tools and Hardware
Tools and Hardware Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 91 96 -5% EBITDA 7 8 -16% EBITDA margin 7.3% 8.3% -99 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 7 Cr and EBITDA Margin is 8.1% • Revenue de-growth mainly due to slowdown in domestic files business • EBITDA margin was lower mainly
Slide 38: Auto Components
Auto Components Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 68 63 8% EBITDA 13 15 -11% EBITDA margin 19.9% 24.0% -419 bps No impact of Ind-AS 116 • Growth driven from international customers and supported by new customers & products • EBITDA Margin impacted due higher contribution from lowe
Slide 39: Raymond Realty
Jll Raymon~ Raymonh REALTY ,o Be 1tlll 35
Slide 40: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Development Overall 20 acres of residential development Project Phase 1: ~14 acre of development Phase 1 Project • Total 10 towers with ~2.8 mn sq.ft of saleable area Details • Total 2BHK units available for sale: 2,800 • RERA regi
Slide 41: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system fl~ Raymon~ ·. n· Ba:_n r H d Li
Slide 42: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant
Slide 43: Financial Update – KPI's
Financial Update – KPI’s Particulars FY19* Q1 FY20 Till June-19 Bookings: - No. of bookings 238 343 581 - Area (Mn. Sq.ft.) 0.23 0.34 0.57 - Value of Bookings (Rs. Cr.) 243 367 612 Customers Collection (Rs. Cr.) 6 47 53 Capital Employed^ 235 79 314 Particulars(₹ Cr) FY19* Q1 FY20 Sales 20 60 EBITDA
Slide 44: Construction Update
Construction Update Tower - A Tower - B Tower - C Excavation, Plum & PCC, Foundations completed for Tower A, B & C Construction activities are as per construction schedule
Slide 45: Way Forward
fl~ Raymon~ Way Forward 41
Slide 46: Way Forward
Way Forward fl~ Raymon~ • Domestic consumption remains impacted as the consumer sentiment remains subdued and liquidity concerns continues to affect the trade channels • Overall, we expect the quarter to be modest in terms of growth & consumer sentiment and expect pick up in demand from mid August w
Slide 47: Thank You
an raymond Thank You www.raymond.in