Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q4 FY24 Earnings Presentation
55 slides from Rupa &'s earnings presentation, May 23, 2024
Slide 1: Regulation 30 disclosure letter to exchanges
Date: May 23, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Ref: NSE Symbol- RUPA / BSE Scrip Code- 533552 Sub: Disclosure under Reg
Slide 2: Investor Presentation | Q4 & FY24
Investor Presentation | Q4 & FY24
Slide 3: Safe Harbor
Safe Harbor 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 or ind
Slide 4: Table of contents
Table of contents 01 Q4 & FY24 Result Highlights 02 Company Overview 03 Business Model 04 Growth Initiatives 05 ESG & CSR Initiatives 06 Historical Financials 3
Slide 5: Q4 & FY24 Result Highlights
CRuPA Q4&FY24 Result Highlights
Slide 6: Management Commentary
Management Commentary Commenting on the financial performance Mr. Vikash Agarwal - Whole Time Director, said, “We are pleased to present an insightful overview of our company’s performance for Q4 FY24 and FY24. Unaided by business landscape in maintaining the prices, your company notably registered
Slide 7: Q4 & FY24 Financial Highlights
Q4 & FY24 Financial Highlights Revenue (in Rs. Cr) EBITDA (in Rs. Cr) PAT (in Rs. Cr) 6.7% 10.1% 4.6% 6.1% -2% +48% +29% 407 400 40 24 19 27 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Revenue (in Rs. Cr) EBITDA (in Rs. Cr) PAT (in Rs. Cr) 7.8% 9.6% 4.7% 5.7% +6% +32% +30% 1,143 1,217 117 70 89
Slide 8: FY24 Performance Highlights
FY24 Performance Highlights FY24 Revenue stands at Robust YoY growth of 32% in Volume growth Modern Trade & E-commerce Rs. 1,217 crores; up by 6% YoY EBITDA and 30% in PAT in FY24 FY24 – 17% contributed 4% to the revenues Exports contributed 2% of the Net Working Capital Cash generated from Net Debt
Slide 9: Key Financial Metrics
Key Financial Metrics ROE (%) ROCE (%) Particulars (in Rs Cr) Mar-24 Mar-23 8% 12% Net Worth 958 912 6% 9% Long Term Borrowings 6 10 Short Term Borrowings 221 237 FY23 FY24 FY23 FY24 Total Cash & Cash 221 113 Equivalents* Net Debt/Operating EBITDA Net Debt/Equity (x) Net Debt 6 134 Net Debt/Equity (
Slide 10: Sales Mix - FY24
Sales Mix - FY24 Region-wise Gender-wise Segment-wise 7% 2% 3% 4% 2% 10% 13% FY24 48% FY24 FY24 25% 87% 5% 94% East North-East North Men Women Kids Domestic Exports West & Central South Overseas Modern Trade 9
Slide 11: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Cr) Q4 FY24 Q4 FY23 Y-o-Y% Q3 FY24 Q-o-Q% FY24 FY23 Y-o-Y% Revenue from Operations 400.5 406.8 -2% 318.5 26% 1,216.5 1,143.1 6% Total Raw Material 221.3 258.3 173.5 617.0 606.2 Sub-Contract Expenses 71.9 53.4 59.7 247.6 210.3 Gross Profit 107.3 9
Slide 12: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (Rs. Cr) Mar-24 Mar-23 Particulars (Rs. Cr) Mar-24 Mar-23 ASSETS EQUITY AND LIABILITIES Non-Current Assets EQUITY Equity Share capital 8.0 8.0 Property, plant and equipment 224.5 207.9 Other Equity 950.1 903.8 Right to Use Assets 18.3 20.3 Total Equit
Slide 13: Company Overview
Company Overview
Slide 14: #1 undisputed knitwear Indian brand…
#1 undisputed knitwear Indian brand… Finished goods 7,00,000+ pieces per day Dealers 1,500+ Registration of trademark’s both 1,50,000+ Retail Outlets Nationally & 100+ Internationally 9,000+ SKUs Brands 10+ 13
Slide 15: …with long legacy of delivering excellence
…with long legacy of delivering excellence 1968 1985 1995 - 1996 1997-2000 2003-2008 RUPA brand Rupa & Co. Pvt. Ltd. Took over business of Entered casual wear and Acquired the incorporated Established Binod Hosiery thermal wear products brand “Euro” IPO and listing on Calcutta Started export of prod
Slide 16: Star Studded Line-up of Brand Ambassadors
Star Studded Line-up of Brand Ambassadors Brand Development Cost (Rs. Cr) Strong brand recall developed through 82 78 Advertisement & 71 consistent investment in advertising and 62 66 Branding Expense 53 constitutes ~5% of brand promotion strategies Revenues in FY24. FY19 FY20 FY21 FY22 FY23 FY24 15
Slide 17: Awards & Accolades
Awards & Accolades Rank 1 in CSR Category at ICC Most Promised Digital Presence in Retail and E- Most Trusted Award -2022 in category of Corporate Governance & commerce at National Achievers Awards Fashion - Innerwear and Outerwear Sustainability Vision Awards 2024 Brand edge Award for Best Practice
Slide 18: Eminent Board of Directors
Eminent Board of Directors Mr. Prahlad Rai Agarwala, Chairman Mr. Ramesh Agarwal, Whole-time Director • 50+ years of experience in the textile industry • More than 30 years of experience in the textile industry • Provides strategic direction to the Company and is the driving force • Plays a key role
Slide 19: Eminent Board of Directors
Eminent Board of Directors Mr. Dipak Kumar Banerjee, Independent Director Mr. Sushil Patwari, Independent Director • Chartered Accountant with 45 years+ experience • 40+ years of experience in the field of cotton yarn and knitted fabric industry • Started his career with LIC in 1970 and thereafter,
Slide 20: Experienced Management Team
Experienced Management Team Mr. Niraj Kabra, Executive Director Mr. Arihant Kumar Baid, VP - Finance A commerce graduate from Calcutta University. More than 20 years of rich expertise in the 15 years of experience in Cross Functional areas in Finance. Member of the Institute of field of Operations a
Slide 21: Business Model
Business Model
Slide 22: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Branding Distribution ✓ Broad & unparalleled ✓ An integrated & efficient ✓ Accelerating the launch ✓ Expanding retail product portfolio manufacturing process of aspirational brands footprint ✓ Brands across a wide ✓ State
Slide 23: 1. Affordability - brands across wide price range segments
1. Affordability - brands across wide price range segments Bouquet of Brands across Price Segments Brand across all Users Broad & unparalleled product portfolio Brand for Men Brands for Women (Men + Women + Kids) Bermudas Leggings & Causal Wear Athleisure Premium Segment T-shirts Socks Mid-Premium S
Slide 24: 2. Scalability - an integrated & efficient manufacturing process
2. Scalability - an integrated & efficient manufacturing process… Product Design & Development Manufacturing Process Logistics & Distribution Manufacturing Process Knitting Processing / Dyeing Stitching Warehousing Distribution & Bleaching Logistics & Distribution Critical Processes done in-house Cu
Slide 25: …along with state of the art manufacturing facilities
…along with state of the art manufacturing facilities Continous investment in R&D to produce environment-friendly clothes and minimize carbon footprints 7,00,000+ 9,000+ Finished Goods per day SKUs 3 tons/day 25 tons/day Domjur (West Bengal) Tirupur (Tamil Nadu) Yarn Dyeing Fabric Dyeing » Knitting:
Slide 26: … with unwavering focus on R&D and quality standards
… with unwavering focus on R&D and quality standards • Harnessing the power of technology enables conforming to international standards • Innerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methods and are biodegradeable. • We make
Slide 27: … resulting in high volume capacities
… resulting in high volume capacities OPERATIONS IN HOUSE CAPACITY Strategic Advantages • Streamlined Operations Fabric Dyeing & Bleaching 25 Tons/Day • Technologically advanced machineries to support our manufacturing infrastructure Yarn Dyeing & Bleaching 3 Tons/Day • Robust control practices in p
Slide 28: 3. Branding - reinforcing high growth segments
3. Branding - reinforcing high growth segments • Bumchums range of T-shirts, Bermudas, Tracks and Muscle. • High Growth Potential in health and lifestyle focused Active wear segment. Industry has grown by ~13% CAGR since 2011 • Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge ra
Slide 29: …and scaling high margin revenue streams
…and scaling high margin revenue streams • One of the Largest Premium Brand of Innerwear, Leisurewear, Sportswear, Activewear & Athleisure, for Men & Women • Macroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge designers & available in a variety of colors and
Slide 30: Recent Launches by Colors
Recent Launches by Colors C#LORS C#LORS
Slide 31: 4. Distribution - expanding retail footprint…
4. Distribution - expanding retail footprint… 1,50,000+ Retail Outlets Strategy: Foray in newer markets by appointing new Strong position in Eastern India. Gaining distributors and building experienced team while significant presence in the North 1,500+ offering products as per consumer preferences
Slide 32: Growth Initiatives
RUPA Ives Growth Initiat
Slide 33: Recent Strategic Initiatives
Recent Strategic Initiatives Rapid expansion in Re-organising the high potential areas distribution channel Focus on exports in new Expanding EBO network emerging markets Investing in modern trade & e-commerce 32
Slide 34: 1. Rapid expansion in high potential areas
1. Rapid expansion in high potential areas Medium Term Target, 3X - 4 Years Medium Term Target, 4X - 3 Years +6% +18% 51 54 207 175 West Bengal, Maharashtra [Ex Mumbai Pune], Focus on e-commerce via partnerships with Gujarat, MP, Chattisgarh, Western UP, Amazon, Flipkart. Drive direct sales through
Slide 35: 2. Expanding EBO network
2. Expanding EBO network Exclusive Brand outlets : 29 EBO Our MACROWORLD store at Lake Mall, Kolkata Strategy: › Opening of MACROWORLD EBO › Create small to mid sized Franchisee Store Model with best-in- class SOPs › Build and nurture, competent Franchisee Management Organisation Capabilities › Esta
Slide 36: 3. Investing in modern trade and e-commerce
3. Investing in modern trade and e-commerce Modern Retail Trade Online Apps & Portals Current store count: 1500+ Presence on all e-commerce sites Strategy: Strategy: • Increase Brand Footprints across all brands creating special product line • E-commerce Industry is poised to grow at 13% CAGR (Niels
Slide 37: 4. Focus on exports and new markets
4. Focus on exports and new markets UAE | SAUDI ARABIA | KUWAIT | IRAQ | MYANMAR | UKRAINE | ALEGRIA | INDONESIA | NIGERIA | CONGO | USA | SINGAPORE | RUSSIA and Many More RUSSIA USA MIDDLE EAST Strategy is to foray in newer markets by COUNTRIES appointing new distributors and building experienced t
Slide 38: 5. Re-organising the distribution channel
5. Re-organising the distribution channel WHOLESALE CHANNEL Strategic move towards Direct Distribution channel for premium & super premium product categories Semi Wholesalers Retailers Advantages Better control on prices with well-defined margins for Retailers distributors and retailers Better inven
Slide 39: ESG & CSR Initiatives
ESG & CSR Initiatives
Slide 40: Why ESG matters to us ?
Why ESG matters to us ? Sustainability is something that investors are demanding, customers are expecting, shareholders are relying on and employees are valuing. Stakeholders’ Perspective Investors Shareholders Employees Customers Government Communities Good financial returns, Working with Occupatio
Slide 41: ESG Vision & Mission
ESG Vision & Mission “Weaving together a sustainable future” To be one of the most loved knitwear and apparel brands in India; commended for responsible Vision manufacturing and delivering superior customer experience with the best pricing. Rupa endeavors to responsibly manufacture products through
Slide 42: Rupa’s Pillars of Sustainability
Rupa’s Pillars of Sustainability Strategic Sustainability Pillars Environment Social Governance ❖ Energy and climate change ❖ Diversity and inclusion ❖ Corporate governance management ❖ Occupational health and safety ❖ Ethics, transparency and ❖ Water and effluent management ❖ Corporate citizenship
Slide 43: Strong Board Oversight on ESG
Strong Board Oversight on ESG Responsible Governance Board Tenure >12 years 0 - 7 years • Active oversight from Board of Directors and dedicated Board level 28% 36% CSR committee for overseeing ESG risks • Corporate social responsibility embedded in our Values Average Tenure • Fosters a culture of h
Slide 44: Committed to Sustainable Growth
Committed to Sustainable Growth CSR Vision : Improving lives in pursuit of collective development and environmental sustainability Energy and GHG Management Emissions Management ▪ The steam generated from the boiler is captured and reused ▪ Installed bag filters to ensure particulate matter in opera
Slide 45: Care for our People
Care for our People Adhering to the highest labour standards Gender Diversity We respect and protect human rights both within and outside the workplace All workmen on the shop floor are by adhering to the principles of human required to undergo workplace safety training for ensuring prevention of ri
Slide 46: Strengthening our Communities
Strengthening our Communities Rupa & Company Limited operates with a strong belief that giving back to the society and contributing towards its sustainable development is every organization’s responsibility. The Company and its people are Key highlights committed to society, ecology and environment.
Slide 47: Glimpses of our CSR Activities
Glimpses of our CSR Activities Medical and healthcare facility under Cancer awareness and detection camp in Provision of mid-day meal One Teacher School construction collaboration with Indian Cancer Society Animal welfare Women empowerment Supporting education Cancer Awareness Camp Drinking water fa
Slide 48: Historical Financial Performance
Historical Financial Performance
Slide 49: Historical P&L Highlights
Historical P&L Highlights Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,475 257 269 192 1,313 175 1,143 1,217 975 889 156 112 800 155 109 643 719 H2 487 114 117 89 62 70 H2 54 54 41 73 H2 24 45 H1 488 513 586 500 498 102 113 66 80 25 H1 60 48 44 H1 38 29 25 FY20 FY21 FY22 FY23 FY24 FY20 F
Slide 50: Key Financial Ratios
Key Financial Ratios ROCE (%) ROE (%) Debt to Equity (X) 30.8% 26.8% 28.4% 23.8% 0.40 0.30 0.27 0.24 13.6% 11.0% 0.19 11.9% 8.5% 7.5% 6.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Working Capital Days Inventory Debtors Creditors 175 171 157 136 138 120 113 109 101 9
Slide 51: Sharing profits consistently
Sharing profits consistently Payout as a % of Profits 24.5% 30.1% 32.1% 33.2% 30.3% 27.7% 32.2% 38.6% 22.7% 12.5% 44.9% 34.0% Mark of gratitude to our shareholders during the pandemic: Special Dividend of Rs. 2/- per equity share 500 200 300 300 300 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15
Slide 52: Key Takeaways
Key Takeaways
Slide 53: Huge Industry Potential
Huge Industry Potential Men’s Innerwear Market Women’s Innerwear Market 6% 12% CAGR CAGR 17,894 56,364 8,500 4,300 14,500 7,000 2010 2015 2027E 2010 2015 2027E Key Growth Triggers Emergence of purpose-specific Increasing income levels Growth in penetration of Changing Fashion Increasing penetration
Slide 54: Rupa & Co. – Key Takeaways
Rupa & Co. – Key Takeaways • Diversifies product offering across demographics & price segments • Wide bouquet of brands with strong brand recall developed through consistent investment in ad spends • Efficient business model with key focus on value addition, quality control & product differentiation
Slide 55: Thank You
Mr. Bhavya Shah CIN: L17299WB1985PLC038517 +91 8082748577 bhavya.shah@linkintime.co.in Mr. Sumit Khowala sumit.khowala@rupa.co.in Mr. Sumeet Khaitan +91 7021320701 sumeet.khaitan@linkintime.co.in Thank You