Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY2024 Earnings Presentation
64 slides from Raymond's earnings presentation, Aug 11, 2023
Slide 1: Exchange intimation letter: Investor Presentation
RL/SE/23-24/113 August 11, 2023 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 Dear Sir
Slide 2: Q1FY24 Result Presentation
R AY M O N D L I M I T E D Q1FY24 RESULT PRESENTATION 30th June 2023 1
Slide 3: Delivered Highest Ever Q1 Revenue and Profitability
Delivered Highest Ever Q1 Revenue and Profitability Achieved Net Debt Free Status at Group Level REVENUE Delivered highest Q1 revenue EBITDA Reported HIGHEST in a subdued consumer demand and highest ever Q1 EBITDA ₹1,826 Cr. ₹252 Cr. EVER, Q1 seasonally weak quarter (YoY growth 7%) YoY Growth 4% Mar
Slide 4: Table of Content
Pages 1 Q1FY24 Highlights 4-9 2 Recent Strategic Initiatives 10-13 3 Financial Highlights 14-17 TABLE OF CONTENT 4 Go To Market Initiatives 18-23 5 Segment Financials 24-45 6 Current Status and Outlook 46-48 7 Company Overview 49-59 8 Annual Financial Performance 60-62 3
Slide 5: Q1FY24 Highlights
mM Raymond Q1FY24 HIGHLIGHTS
Slide 6: Market Update
Market Update DOMESTIC MARKET EXPORTS MARKET • Moderate consumer sentiments in a • US, UK & Europe: Despite significant seasonally weak quarter challenges of inflation, order book remained healthy for formal wear • Early onset of End Of Season Sale category in garmenting (EOSS) in apparel sector • D
Slide 7: Q1FY24: Maintains Consistent Performance
Q1FY24: Maintains Consistent Performance In seasonally weak quarter Revenue EBITDA & Margins (%) (₹Cr.) (₹Cr.) 4% 9% 14.0% 13.4% 9.8% 1,754 1,826 1,470 0.8% 235 256 222 862 144 7 Q1 FY20 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY21 Q1 FY20 Q1 FY22 Q1 FY23 Q1 FY24* PBT & Margins (%)# (167) (₹ Cr.) 6.7% 6.
Slide 8: Consistently Delivered Strong Performance in Last 7 Quarters
Consistently Delivered Strong Performance in Last 7 Quarters (₹Cr.) Revenue (₹Cr.) EBITDA & Margins (%) 17.6% 16.3% 17.3% 15.9% 2,032 2,191 2,200 2,192 16.2% 1,871 1,754 1,826 13.4% 14.0% 358 358 351 379 303 256 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 235 Q3 FY22 Q4 FY22 Q1 FY23 Q2 F
Slide 9: NWC Days
NWC Days Continued focus on optimizing NWC Peak Level (₹Cr.) 2,051 1,855 1,583 1,323 1,265 1,117 1,209 1,002 Sep-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 Mar-23 Jun-23 NWC Days 98 79 • Key Initiatives: Strong emphasis on collections and efficient inventory management and related production cycle • NWC
Slide 10: Net Debt Free Two Years Ahead Of Stated Guidance
Net Debt Free Two Years Ahead Of Stated Guidance A ~₹ 4,000 Cr. net debt reduction journey from peak to ₹ 1,500+ Cr. of Surplus Cash at Group Level (₹Cr.) Peak Level 2,378 1,859 1,617 1,416 1,310 1,088 689 Sep-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 Mar-23 1,500+* With FMCG business sale proceeds of ₹
Slide 11: Recent Strategic Initiatives
Recent STRATEGIC INITIATIVES 10
Slide 12: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING THE CORE (FY21-23) Reset the Established Real Sustainable Annual Effective Working Continued Business model Estate Business Cost Savings Capital Management Net Debt Reduction during Covid Total booking value: (~₹400 Cr.) ~ ₹3,900 Cr. within Lower by ove
Slide 13: Deleveraging Action
Deleveraging Action Selling of FMCG Business Raymond Consumer Care Ltd. (RCCL) Slump Sale of FMCG business^ ₹ 1,500 Cr.+ Surplus Net of tax Cash available for with trademarks ₹2,825 Cr. realization Growth Capital at of Park Avenue Proceeds ₹2,200 Cr* (FMCG category), Raymond Group Level Premium, KS
Slide 14: Initiated Demerger of Lifestyle Business
Initiated Demerger of Lifestyle Business Two pure play listed net debt free companies Raymond Group Raymond Ltd. (Two Listed Entities) RCCL (Existing Listed Company) (To be a listed Lifestyle Company) • To be predominantly a Real Estate company • Branded Textile 1 2 • Along with investments in: • Br
Slide 15: Financial Highlights
mM Raymond Financial HIGHLIGHTS
Slide 16: Q1FY24: Consolidated Results
Q1FY24: Consolidated Results Particulars (₹ Cr.) Q1FY24 Q4FY23 Q1FY23 YoY % Net Revenue 1,826 2,192 1,754 4% Opex 555 562 514 8% EBITDA (excluding ESOP) 256 379 235 9% EBITDA Margin % 14.0% 17.3% 13.4% Reported EBITDA 252 379 235 7% Depreciation 60 62 58 2% Interest Expense^^ 69 64 59 17% Interest o
Slide 17: Q1FY24: Segment Results
Q1FY24: Segment Results Performance driven by Lifestyle business Post IndAS 116 Revenue EBITDA EBITDA % Q1 Q1 Q1 Q1 Q1 Q1 Particulars (₹ Cr.) YoY% YoY% FY24 FY23 FY24 FY23 FY24 FY23 Branded Textile 688 648 6% 117 114 3% 17.0% 17.6% Branded Apparel LIFESTYLE 305 262 16% 19 15 32% 6.4% 5.6% BUSINESS*
Slide 18: Q1FY24: Net Working Capital and Liquidity
Q1FY24: Net Working Capital and Liquidity NWC higher mainly due to Increase in Particulars (₹ Cr.) Jun’23 Mar'23 Jun’22 vs Mar’23 vs Jun'22 inventory: NWC 1,583 1,265 1,323 318 260 • To cater to demand for upcoming festive season & NWC - No. of Days 79 53 69 26 10 • Increase in real estate related t
Slide 19: Go To Market Initiatives
mM Raymond Go To MARKET INITIATIVES 18
Slide 20: Go to Market Initiatives — Suiting
Go to Market Initiatives — Suiting FASHMODA A youth-oriented collection with high fashion known for its unique bold designs and styling LUXOLITE • A collection with designs in variation of strips, micros, sub-dued checks, Slub looks with pastel and bright colors 19
Slide 21: Go to Market Initiatives — Shirting
Go to Market Initiatives — Shirting Voyage Checkmate Regio Italia Sustainova Linen Vibez 2.0 Linen Stain Resistant 20
Slide 22: Go to Market Initiatives — Apparel
Go to Market Initiatives — Apparel COLORPLUS (Chinos) PARK AVENUE 21
Slide 23: 'Ethnix by Raymond'
‘Ethnix by Raymond’ Ethnix range for targeted Occasion Festive Collection Wedding Collection Smart Ethnix 22
Slide 24: Digital Imperatives
Digital Imperatives The new norm of business B2B Commerce / Application Smart Retail Personalise Gifting : Gifting Moments Tag Dealer Program : PRIDE • Dynamic Digital Vouchers across occasions based on • Launch of India’s first unique Block Chain based MBO & trade Rewards Program. shopping preferen
Slide 25: Segment Financials
mM Raymond Segment FINANCIALS
Slide 26: Branded Textile
BRANDED TEXTILE 25
Slide 27: Branded Textile
Branded Textile Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 688 648 6% EBITDA 117 114 3% EBITDA margin 17.0% 17.6% ➢ Recorded sales growth of 6% in Q1F24 Vs PY • Driven by increasing consumer demand for our latest season offerings including innovative products, and gifting solutions for summer
Slide 28: Branded Apparel
BRANDED APPAREL Branded Apparel 27
Slide 29: Branded Apparel
Branded Apparel Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 305 262 16% EBITDA 19 15 32% EBITDA margin 6.4% 5.6% ➢ Recorded sales growth of 16% in Q1F24 Vs PY • Continued demand for office wear and new offerings in casual wear contributed to the growth • Growth witnessed across all brands with
Slide 30: Retail Network
Raymond RETAIL NETWORK 29
Slide 31: Exclusive Retail Network
Exclusive Retail Network 2.36 Mn 2.36 Mn 2.30 Mn sq ft sq ft sq ft 1407 1409 1372 311 316 278 EBO 42 40 36 MTM 1054 1053 1,058 TRS June'23 Mar'23 June'22 • 37 new stores opened during the quarter • ‘Ethnix by Raymond’: Opened 15 new stores leading to total 75 stores as on 30 th June, 2023 • 39 store
Slide 32: Garmenting
GARMENTING 31
Slide 33: Garmenting
Garmenting Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 265 247 7% EBITDA 24 15 62% EBITDA margin 9.2% 6.1% ➢ Sales growth of 7% in Q1F24 vs PY • Healthy momentum in orderbook maintained with China+1 adoption & consolidation of vendors by global brands • Growth driven by sustained demand in US
Slide 34: High Value Cotton Shirting
HIGH VALUE COTTON SHIRTING 33
Slide 35: High Value Cotton Shirting
High Value Cotton Shirting Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 192 170 13% EBITDA 19 17 17% EBITDA margin 10.0% 9.7% ➢ Recorded a sales growth of 13% in Q1’F24 Vs PY • Led by demand for our cotton & linen fabric offerings by our B2B customers in domestic market ➢ EBITDA margin higher a
Slide 36: Engineering
ENGINEERING 35
Slide 37: Engineering Business
Engineering Business Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 209 209 0% EBITDA 29 27 9% EBITDA margin 14.0% 12.8% ➢ Sales performance driven by: • Demand momentum maintained for ring gears, flex plates and bearings categories in domestic markets and well supported by ring gears and other c
Slide 38: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond
Slide 39: 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 AREA UNDER FURTHER POTENTIAL Development Development ~40 Acre ~60 Acre ~4.0 mn sq.ft .RERA ~7.4* mn sq.ft .RERA Upcoming Project in Ba
Slide 40: Existing Projects Booking Update (as on 30th June)
Existing Projects Booking Update (as on 30th June) 10 towers with RERA Q1 Project Particulars FY23 approved carpet area FY24 Till Date % ~1.7 Mn sq.ft. No of Bookings 542 102 2,553 UNIT SOLD RERA Carpet Area* 0.31 0.06 1.38 Total Units Planned: 3,103 (2BHK: 2,463; 1BHK: 640) Value of Bookings (Cr.)
Slide 41: Ten X Habitat
Ten X Habitat 3 towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 & 5 Towers 6, 7, 8, 9 & 10 Central Amenities Building Elevation Reference Image Reference Image 40
Slide 42: The Address By GS
The Address By GS Construction in full swing Building Elevation Tower (A) 7th Floor Slab Completed Tower (B) 3rd Floor Slab Completed Reference Image 41
Slide 43: Ten X ERA
Ten X ERA Launched in Feb-23 Tower (B) Excavation Completed Building Elevation Tower (C) Foundation Work in Progress Reference Image 42
Slide 44: New Launch — Premium Residential Projects
New Launch — Premium Residential Projects Over 1.0 Mn Sq ft RERA Approved Carpet Area With 2,000 Cr.+ Revenue Potential Received An Overwhelming Response with Over 50 Units on the Launch Date Launched in Q2FY24 Building Elevation Building Elevation 2 towers with RERA 1 tower with RERA approved carpe
Slide 45: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 44
Slide 46: Real Estate Business
Real Estate Business Particulars (₹Cr.) Q1FY24 Q1FY23 % Var. Net Sales 234 286 (18%) EBITDA 54 79 (31%) EBITDA margin 23.3% 27.5% ➢ Strong booking momentum maintained during the quarter: • In TenX brand offering (TenX Habitat & TenX ERA), booked value of ₹ 237 Cr in Q1FY24 vs ₹ 175 Cr in Q1FY23. The
Slide 47: Current Status & Outlook
mM Raymond Current Status & OUTLOOK 46
Slide 48: Current Status of Operations & Outlook
Current Status of Operations & Outlook 1 3 REAL ESTATE Company expects to be on profitable growth momentum • Residential real estate continue to demonstrate sustained demand • Our Projects: Construction activity in full swing in compliance with all the relevant guidelines 2 DOMESTIC MARKET 4 • Impro
Slide 49: Chairman & Managing Director on Q1FY24 performance
Chairman & Managing Director on Q1FY24 performance This was momentous quarter for us as the Raymond group became net debt free post the sale of our FMCG business. During the seasonally weak first quarter and subdued consumer demand, the company has recorded a strong and steady performance across bus
Slide 50: Company Overview
mM Raymond Company OVE RVI EW
Slide 51: 98+ Year Old Diversified Group
98+ Year Old Diversified Group With strong presence across sectors SUITING SHIRTING APPAREL RETAIL PRESENCE ~65% market share Largest branded player Amongst top 3 Presence in 600+ in worsted suiting in shirting fabrics menswear players cities with 1400+ Stores GARMENTING RealESTATE REAL Estate ENGIN
Slide 52: Group Values
Group Values TRUST QUALITY EXCELLENCE • One of India’s most trusted textile • Recognized for its innovation • Leadership in different & apparel brands with near 100% and high-quality product offerings product categories awareness • Loyal consumer base spanning • Crafting world-class offerings • Stro
Slide 53: Raymond Group Led by
Raymond Group Led by ATUL SINGH S.L. POKHARNA RAVI UPPAL Executive Vice Chairman (Designate) Director Non-Executive Chairman GAUTAM HARI SINGHANIA Ex – Coca Cola, Colgate - Palmolive Raymond Ltd. JK Files & Engineering Ltd & RPAL Chairman & Managing Director Ex – L&T, JSW Currently – CMD of Steel In
Slide 54: Raymond Management Team
Raymond Management Team ATUL SINGH S.L. POKHARNA AMIT AGARWAL K.A. NARAYAN Executive Vice Chairman Director Group CFO President – HR (Designate) Raymond Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Essar Group Colgate -Palmolive BALASUBRAMANIAN V JATIN KHANNA SUNIL KATARIA HARMOHAN SAHNI
Slide 55: Manufacturing Excellence — Fabric & Garmenting
Manufacturing Excellence Fabric & Garmenting SUITING SHIRTING DENIM GARMENTING Mfg. World’s Finest Fabric Mfg. World’s Finest Fabric Mfg. of High Quality Denim End-to-End 250s – Worsted Suiting 340s – Cotton Fabric Fabrics & Garments to Top Integrated Garment Mfg. 150 Lea Linen Fabric Global & India
Slide 56: Manufacturing Excellence — Engineering & Real Estate
Manufacturing Excellence Engineering & Real Estate ENGINEERING REAL ESTATE • #2 Global supplier of Steel Files • One of the leading global players in Ring Gears - End to end manufacturing solutions provider for files & drills • Fast paced construction activity - Sole manufacturer of Flex Plates in I
Slide 57: Domestic Presence
Domestic Presence One of the largest asset-light distribution network in multiple businesses Branded Branded 8,000+ 20,000+ Textiles Apparel POS POS 1,407 stores Retail ~1.5 lakh (2.36 Mn sq. ft) Engineering POS Pan-India network inover 600 towns & cities * Legends represent indicative store locatio
Slide 58: Our Brands
Our Brands Home grown portfolio of renowned brands with high recall value BRANDED TEXTILE BRANDED APPAREL REAL ESTATE ENGINEERING Presence in Africa & Asia through multiple sub- brands 57
Slide 59: International Presence
International Presence Global Footprint in 90+ Countries through diversified businesses North Asia INDIA America Europe Dubai Ethiopia South America Africa Australia 45 Retail stores in overseas location Overseas Store Location Manufacturing Location 58 * Legends represent indicative store locations
Slide 60: Raymond Group at a Glance
Raymond Group at a Glance SEGMENTS Branded Textile PROMOTER Suiting B2C Shirting Made to Measure (MTM) GROUP Branded Apparel Bed and Bath Garmenting Everblue Silver Spark Ethiopia* High Value Apparel (100%) Apparel (100%) (100%) 49% Cotton Shirting Raymond Luxury Cotton (100%) Engineering Real Estat
Slide 61: Annual Financial Performance
Annual FINANCIAL PERFROMANCE 60
Slide 62: Strong Annual Performance Across Parameters
Strong Annual Performance Across Parameters (₹Cr.) Revenue (₹Cr.) EBITDA & Margins (%) (₹Cr.) Net Profit & Margins (%) 31% YoY 50% YoY 103% YoY Growth Growth Growth 8,337 15.9% 600 6,578 1,400 22.0% 6.3% 6,348 500 10.0% 1,200 13.9% 17.0% 1,000 400 9.3% 1,322 3,648 800 12.0% 300 3.0% 4.1% 5.0% 600 3.
Slide 63: Segmental Sales & EBITDA Margin (%)
Segmental Sales & EBITDA Margin (%) (₹Cr). Branded Textile (₹Cr). Branded Apparel (₹Cr). Garmenting 4,000 25.0% 20.9% 1,800 12.0% 1,200 7.6% 9.0% 3,500 14.9% 17.6% 1,600 10.8% 6.5% 10.0% 8.0% 20.0% 1,400 1,000 3,000 7.0% 2,500 1,200 1,619 8.0% 3,364 1,100 800 6.0% 15.0% 2,917 10.4% 1,000 4.8% 843 5.
Slide 64: Thank You
+12 gir Raymond THANK YOU [