Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q3 FY22 Earnings Presentation
53 slides from Rupa &'s earnings presentation, February 2022
Slide 1: Stock exchange disclosure letter for investor presentation
= @® < RUPA RUPA & COMPANY LIMIT ‘ Fe / omar Date: 08-02-2022 To, The Listing Department The Department of Corporate Services National Stock Exchange of India Ltd BSE Ltd Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Bandra (E), Mumbai - 400 051
Slide 2: Investor Presentation February 2022
INVESTOR PRESENTATION February 2022 AAKING INDIA PROUD MORE THAN 5O YEARS OF DELIVERING EXCELLENCE FRONTLINS= MACROMAN @) seme Bumchums =‘—=qeenre TORRIDO Premium Thermals foofj ine femm@®@ra EURO Sofiline THERMOCOT MACROWOMAN EM FRUITS&LOOM. |Fouk underwear
Slide 3: Safe Harbor
Safe Harbor CRuUPA This presentation has been prepared by and is the sole responsibility of Rupa & Company Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation
Slide 4: Q3 & 9M FY22 Financial Highlights
Q3 & 9M FY22 FINANCIAL HIGHLIGHTS
Slide 5: Padma Shri conferred to Chairman
Padma Shri conferred to CRUPA Our Group Chairman, industrialist Mr Prahlad Rai Agarwala has been named among this years Padma Awards recipients by the union government. Mr. Agarwala, has been leading the Rupa Group, the number one knitted garments company in India for over five decades, has been sel
Slide 6: Strong Q3 & 9M FY22 Performance
Strong Q3 & 9M BY2Z CRUPA Q3 FY22 9M FY22 Revenue 425% Revenue +19% Rs. 433 crores a. Rs. 1,019 crores a. EBITDA EBITDA +26% +17% Rs. 81 crores ‘ Rs. 194 crores As Margin at 18.7% Margin at 19.1% PAT +34% PAT +30% Rs. 58 crores y N Rs. 143 crores 4 Margin at 13.5% Margin at 14% onsolidated financial
Slide 7: Strong Q3 FY22 Performance
Strong Q3 FY22 Perfor CRUPA Total Revenue OP.EBITDA & OP.EBITDA% —@® OP. EBIIDA% C+25.3%) OP. EBITDA 433 346 308 64 46 14.9% Reon eo— S @3 FY20 Q3 FY21 @3 FY22 Q3 FY20 Q3 FY2I Q3 FY22 PBT & PBT% PAT & PAT% —@ PBI% ~@ PAT % PBT PAT 427.8% 59 | {343% v 58 38 43 29 12.3% ce 9.3% 12.6% Q3 FY20 Q3 FY21 Q
Slide 8: Strong 9M FY22 Performance
NLU Reereme NY un O44 t=» ie CRUPA Total Revenue OP.EBITDA & OP.EBITDA% —@— OP. EBITDA % OP. EBITDA 1019 859 +16.69 194 167 106 13.3% . ( pe —_@— o— 9M FY20 9M FY21 9M FY22 9M FY20 9M FY21 9M FY22 PBT & PBT% PAT & PAT% —@- PAT% —@ PBT% PAT PBT 178 | 20.3% y 143 149 109 83 66 17.4% 8.3% 12.7% 10.4% 9
Slide 9: Consolidated Profit & Loss Statement Q3 FY22
® C RUPA cen Q3 FY22 ae Ae mae Total Revenue 433.2 345.6 25% 1,018.7 858.7 19% Total Raw Material 206.9 162.4 424.7 397.4 Subcontracting Expenses 83.9 63.9 236.6 164.2 Gross Profit 142.5 119.3 19% 357.4 297.1 20% Gross Profit Margin (%) 32.9% 34.5% 35.1% 34.6% Employee Expenses 16.0 12.5 46.5 34.9 O
Slide 10: About the Company
€ | WAY} Pa mise ; 5 > @ a Fy r ABOUT THE COMPANY
Slide 11: #1 Undisputed Knitwear Brand
#1 Undisputed k CRUPA qi, 7,00,000+ ft Retail 1,25Outlets ,000+ ‘One of the leading and Finished goods pieces per largest knitwear brand in day India, engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear = 7 000+ jv 18 and fashion wear’ — \ S
Slide 12: Journey and milestones
mea siuemleyerea (sr CRUPA Acquired exclusive license from "FCUK" Acquired exclusive license from Fruit of the Loom, Inc Awarded the "Promising Brands- 2018" by The Economic Times 2016 Jr. 2018 | Achieved highest ever Listing of shares at NSE and BSE . Revenue and PAT Launched premium brand Macroman
Slide 13: Experienced leadership
...under the lez CRUPA Mr. Prahlad Rai Agarwala, Chairman Mr. Ghanshyam Prasad Agarwala, Vice Chairman Mr. Kunj Bihari Agarwal, Managing Director * More than 50 years of experience in the textile industry * More than 47 years of experience in the textile industry * More than 45 years of experience i
Slide 14: Highly experienced management team
..and a highly CRUPA Mr. Vikash Agarwal, President Mr. Rajnish Agarwal, President ° New generation indusirialist, graduated from St. Xavier's College, Kolkata and New generation industrialist, Master's in Business Administration in Marketing from completed Diploma in Marketing from the University of
Slide 15: Maintaining brand leadership: awards
... Maintaining CRUPA Chosen by the Indian Consumer INDIAN BRA . 2011-2012 Most Promising Brand 2018 Indywood Excellence Award Best Corporate Brand 2016 indian P Brand 2011.12 The Economic Times 2017 The Economic Times naan rower pran - Govt. of Telangana THE WORLD’S Depre Rupa & Co., Ltd. GREATEST
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Slide 17: We offer Affordability + Scalability
We offer Affordability + Scalabilit CRUPA 1. Affordability 2. Scalability 3. Inspirations Brands 4. IT Infrastructure An integrated & efficient business model Accelerating the launch of Digitalisation of Sales & State of Art Manufacturing inspirational brands Distribution Broad & unparalleled produc
Slide 18: Broad & unparalleled product portfolio
1. Broad & unparalleled produc CRUPA Innerwear Thermal Wear Casual / Athleisure Vests Vest / Upper Leggings & Causal Wear Brief / Drawer Lowers Socks Lingerie T-shirts Bermudas & Tracks Athleisure & Winter Fashion "Rupa overhauls ifs portfolio periodically to the fast-changing requirements, evolving
Slide 19: Diversified product offering and brands across price segments
CRUPA | Diversified, targeted product offering across demographics, categories and price segments Bouquet of Brands across Price Segments Super Premium fc Uu k Segment underwear i Gamut of products from Premium Segment innerwear to casual and athleisure wear MACROMAN @ MAGROWOMAN @ (Inner wear + The
Slide 20: Integrated & efficient manufacturing
2. Integrated & efficient Manuracturin CRUPA Q_p oo} ey © @ [zs 0} Ea oO 0 Product Design & Development Manufacturing Process Logistics & Distribution y . eee Manufacturing Process a) a) @ Processing / O y Knitting Dyeing & Stitching Warehousing Distribution Bleaching EP 0 o c ~O Logistics & Distrib
Slide 21: State of Art manufacturing facility
State of Art manufacturing facility CRUPA Continues investment in R&D to produce environment-friendly clothes and minimize carbon footprints 9 Domjur (West Bengal) gy Tirupur (Tamil Nadu) 9 Bengaluru (Karnataka) g Ghaziabad (NCR) i Knitting: State of the Art Knitting process done at our manufacturin
Slide 22: Far-reaching footprints
Far-reaching footprints CRuPA Pan India Presence @— RUPA enjoys very strong position in the East of India and has gained significant presence in the North followed by the West of India Strategy is to foray in newer markets by appointing 1,200+ ’ @ new distributors and building experienced team and D
Slide 23: Penetration in high growth areas: revenue growth target
Penetration in H C RUPA Revenue Growth Target Rs. in Cr X-Factor Areas : West Bengal, Maharashtra [Ex Mumbai Pune], Gujarat, MP, Chattisgarh, Western UP, Uttrakhand, ae 120 3X Haryana ,HP , Punjab, Tamil Nadu, Andhra X-Factor Areas Pradesh & Kerala. Building complete eco 163 4 Years system of team m
Slide 24: Quality implemented at all levels
Quality impl Pursuit of quality without compromise is achieved Understanding the value of research, the ultra- Application of advanced technology at every by single-minded focus on innovation and modern laboratory at Rupa's Dyeing and Processing level— from planning to production — gives research, c
Slide 25: Unwavering focus on R&D
Unwavering focus 6n R&D CRUPA We put in a lot of research and effort to give Harnessing the power of technology allows to environmentally friendly clothes conform to international standards of fastness properties like rubbing, perspiration, light and washing Innerwear, thermals and hosiery products
Slide 26: Licensed global brands: FCUK and Fruit of the Loom
SP aKaecy(cse- labels CRUPA * Exclusive license to develop, manufacture, market and sell the FCUK brand of innerwear and related products in India * Access to a global brand with strong brand recognition in the super premium segment Well-known & largest * Brings global expertise in improving other a
Slide 27: Prospective benefits of demerged undertaking
Prospective Benefits of Demerged Undertaking Market Presence Utilizing the current market presence and customer base to access premium market segments leading to higher top line growth Consolidation of similar premium businesses to execute more Consolidation efficiently and effectively Vly Cost savi
Slide 28: Deepening consumer connect through brand investment
Deepening co 6 6 Strong brand recall developed through consistent investment in advertising and brand promotion strategies 9 9 Over Rs. 1,000 crores spent on brand development in the last decade Rs. Crs. 80 8H BD INNER\ LINGERIE | SPORTSWEAR | LEISUREV Consistent annual investment of 6-8% of sales i
Slide 29: IT Infrastructure: SAP article management
4. IT Infrastructure =S$ CRUPA Significant decrease in operational time for article Article Fashion Price Fashion ATP management and maintenance SAP has an articla 3D matrix Design Scheme and discounts Thanks to the scheduling capability with SAP, you can Data Record Error Rate will reduce ensuring
Slide 30: Digitisation & Information Technology
Digitisation & Information Technology CRUPA Digital Transformation Upgrade Channels Revamps Sales System Analytics Mm. ? Cl “7? (st. 4 ‘o Core Enterprise solution Revamp of B2C Sales Dealer Management Implementation of SAP with SAP F&VB $4 HAHA Channel Rupa Online System (DMS) & Mobile Analytics on
Slide 31: Digital transformation: SAP S4 HANA in procurement
Dyteatwtseclakevemccasbebeeecsleluee CRUPA Digital Transformation Upgrade Channels Manual Costing Derivation Article Price can be higher Cost Sheet in SAP will limit the price variance in than Cost Sheet Price Sales Order Implementation of SAP S4 (HANA) in Fashion Procurement [o nan nnn nnn nnn nnn
Slide 32: IT Infrastructure: Demand planning
IT Infrastructure = Demanc Fashion Demand Planning — Dealer Contracts, Order & Forecasts ‘eation as per delive Us Garments- OBD- Contract- Forecast- MSO- CSO- ot Fabric- 1000 PCs panne moons panes 1200 PCs 1200 PCs 1200 PCs 1200 PCs
Slide 33: Growth Strategies
GROWTH STRATEGIES
Slide 34: Growth Strategies
Growth Strategies CRUPA Aim to increase share in premium + super premium category MAKING INDIA 1. High Margin PROUD Business SINCE 1968 Plan to grow through in-licensing or inorganic brand associations as well through organic growth of the Casual wear range 2. Active & Leggings under the brands “Sof
Slide 35: Scaling high margin premium brands: Macroman
Scaling high m CRUPA Macroman M-Series and Macrowoman W-Series One of the Largest Premium Brand of Direct distribution model with have top notch fabrics, are styled by cutting edge Innerwear, Leisurewear, Sportswear, access to retailers through own designers, available in a variety of colors and Act
Slide 36: Reinforcing high growth: Bumchums active wear
Reinforcing high srowt CRUPA Range for Men, Women High Growth Potential in . oo. . . and Kids Active / Thermal Wear “The most recent popular expression in design is "athleisure," one of those Health and lifestyle focused made-up terms that are so incredibly strange as to be flawlessly illustrative.
Slide 37: Softline leggings and lingerie brand
cru PA Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge range of wardrobe essentials ho seek ease with a fashionable edge Oi WTA , Softline aims to make ‘comfortable’ the new fashion statement. ‘Softline' has LEGGINGS > always pushed the envelope in terms of innovation, variety
Slide 38: Reinforcing high growth: Thermocot and Torrido
Reinforcing high srowths CRUPA THERMOCOT TORRIDO Premium Thermals Your ideal companion during winter Exquisite range of thermal wear months. Now, you can stay warm and stylish in winters Available in a variety of exciting colours, trendy styles and alll sizes, it is ideal for Thermocot fabric is kni
Slide 39: Focus on Exports and new markets
Focus on Exports anda ne CRUPA UAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | Indonesia | Nigeria | Congo | USA| Singapore | Russia and many more 9 Russia USA Middle East Strategy is to foray in newer markets by Countries appointing new distributors and building ‘ experienced tea
Slide 40: Moving to direct distribution channel
RbCasvicsvelecw icc ic ele) CRUPA Wholesale Distribution Channel Direct Distribution Channel | Agents | ee Wholesalers Strategically move towards Distribut Direct Distribution channel SITIO UTOFS — ™ ; for its product categories Company's Semi Wholesalers Retailers Sales Representatives Ey Retailers
Slide 41: Prudent investing to drive growth: modern trade, EBOs, online
Prudent investing to driv CRUPA MODERN RETAIL TRADE EXCLUSIVE BRAND OUTLETS ONLINE PORTALS Currently have 150+ stores Currently have 17 stores Present on all e-commerce sites Strategy: Strategy: Strategy: Increase Brand Footprints across all brands Create small to mid sized Franchise Store E-commerc
Slide 42: Substantial opportunity to drive growth
Substantial opportunity to drive CRuPA Increasing penetration of Increasing income levels Growth in penetration electronic media leading and high spending of organized retail to branded products power A A A Emergence of purpose- Changing Fashion Growing urbanization specific innerwear (sporty, Trend
Slide 43: ESG Initiatives
ESG Initiatives CRUPA Integration of ESG principles into regular operations Adherence to regulatory standards forms the cornerstone of our operations Satis ENVIRONMENT «reine = GOVERNANCE More than 90% of the fabric wastes Continuous engagement with Foster a culture of honesty, integrity are recycle
Slide 44: CSR Initiatives
CSR Initiatives | | | SS | | | | b oe Contribution towards welfare of Supported healthcare activities underprivileged section Ensure availability of safe and during COVID pandemic by hygiene drinking water at providing Oxygen Concentrator, public places Free Vaccination, Masks Distribution, etc mS o
Slide 45: CSR focus areas and budget
CM sbredeleteli CRuPA Society 4 Promoting education med Eradicating hunger, ie ane aS) & vocational skills e poverty and aE g malnutrition homes Health and Safety Environment Disaster oe © Promoting Ensuring Animal @ management toe oat of health care Welfare CP icliectz drinkin Water rehabilitation
Slide 46: CSR Activities
CSR Activities More than 400 water filters and coolers installed at public places Rewarding the meritorious students, especially the underprivileged children in the society 45
Slide 47: CSR Activities
CSR Activities Books distribution, meals for children
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Slide 49: Historical Financials
HISTORICAL FINANCIALS
Slide 50: Historical Financials
Historical Fina CRUPA 1,313 257 175 10931120 NAP 1,015 975 800 155 151 155 109 H2 536 605 698 66! 487 132 139 36 4D 9] 66 72 74 " peGaa FYI6* = FYI7* ~—s-FYI8 FY19 FY20 FY21 ‘Boeooel FYI6* -FYI7* ~—sFYI8 FY19 FY20 FY21 ‘Boo FYI6* = FYI7* ~—-FYI8 FY19 eefi FY20 FY21 EBITDA Margin PAT Margin w= EBITDA
Slide 51: Historical Financials: ROCE, debt to equity, working capital
Historical Fina CRUPA ROCE% 30.8% 26.8% 24.3% 25.1% 23.0% 20.2% 19.0% 17.9% 18.4% 14.2% 13.6% 11.0% Mar-16* Mar-17* = Mar-18 = Mar-19 = Mar-20 Mar-21 Mar-16* Mar-17* = Mar-18 = Mar-19 = Mar-20 Mar-21 Debt to Equity Working Capital (Days) Inventory [i Debtors J Creditors 0.39 0.38 0.30 0.23 98 94 109
Slide 52: Consistently sharing 20-30% of profits as dividend
Payout as aRrofits of © 24.5% i : © 30.1% i : © 32.1% i : © 33.2% i : : 30.3% i i 277% : ©: 32.2% i ©: 38.6% i ©: 22.7% i Dividend % of FV Mark of gratitude to our shareholders 500 during the pandemic: Special Dividend of Rs. 2/- per equity share 300 300 300 250 275 275 275 200 300 FY13 FY14 FYI5 FY
Slide 53: Thank You
THANK YOU Company: cr CIN: L17299WB1985PLC038517 Mr. Sumit Khowala fori sumit.khowala@rupa.co.in Investor Relations Advisors: ce orient capital Mr. Rajesh Agrawal Mr. Nachiket Kale +91 9967491495 +91 9920940808 rajesh.agrawal@linkintime.co.in nachiket.kale@linkintime.co.in