Renaissance Global Limited · NSE:RGL
Renaissance Global — Q1 FY24 Earnings Presentation
38 slides from Renaissance Global's earnings presentation, Aug 10, 2023
Slide 1: Cover letter to BSE and NSE
Ref. No.: RGL/S&L/2023/98 August 10, 2023 BSE Limited National Stock Exchange of India Limited Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Press Release and presen
Slide 2: Renaissance Global announces Q1 FY24 Results
PRESS RELEASE Renaissance Global announces Q1 FY24 Results Q1 FY24 Total Income stood at Rs. 476 crore Direct-to-Consumer business revenues up 36% to Rs. 55 crore EBITDA stood at Rs. 37 crore, with margins at 7.7% PAT stood at Rs. 14 crore Mumbai, August 10, 2023: Renaissance Global Limited, a brand
Slide 3: Key Developments
of over 35 years in the Indian retail industry and remarkable branding skills, his invaluable insights will play a crucial role in guiding our corporate strategy and elevating our D2C business vertical. While the macro-environment in our key markets is expected to remain choppy in the near-term, we
Slide 4: He contributes as an Advisory Board member of the esteemed World Retail Congress and
He contributes as an Advisory Board member of the esteemed World Retail Congress and actively participates in the governing boards of two renowned academic institutions – ENDS –
Slide 5: About Renaissance Global Limited
About Renaissance Global Limited (Renaissance) Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), is a global branded jewellery player. Renaissance designs, manufactures, and supplies branded jewellery across key high-potential markets in USA, Canada, UK & Asia. The product portfolio
Slide 6: Results Presentation Q1 FY24
Results Presentation Q1 FY24
Slide 7: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Global Limited (“Renaissance” or the Company) that are not historical in nature. These forward-looking statements, which may include statements relating to future results of operations,
Slide 8: Content
Content Q1 FY24 Company Annexure Results Overview Overview 4 15 28 3
Slide 9: Q1 FY24 Results Overview
iO Renaissance Global Limited Q1 FY24 Results Overview
Slide 10: Q1 FY24 Financial Summary
Q1 FY24 Financial Summary Total Income (Rs. Crore) EBITDA (Rs. Crore) EBITDA 7.3% 7.7% Margin (%) -17.3% 574.7 -12.5% 476.3 42.0 36.7 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 PAT (Rs. Crore) EPS[1] (Rs.) PAT 4.2% 3.0% Margin (%) 2.6 -41.3% -41.3% 24.2 1.5 14.2 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 5
Slide 11: Management Message
Management Message Commenting on the performance for Q1 FY24, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said: “In the quarter under review, our top-line performance was impacted by challenging market conditions marked by muted demand in our key markets. Despite these chall
Slide 12: Key Developments
Key Developments Strengthening the Board – Mr. Bijou Kurien appointed as an Independent Director With over 35 years of experience and outstanding branding skills, Mr. Kurien is a well-known veteran in the Indian retail industry He has played pivotal roles in the success of marquee brands within
Slide 13: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q1 FY24, the direct-to-consumer business posted revenues of ₹55.3 crore compared to ₹40.7 crore in Q1 FY23, up by 36% Based on estimates of a quarter’s contribution to annual sales, the annual revenue run rate of D2C business is at ₹310 crore in Q
Slide 14: Q1 FY24 Operational Summary
Q1 FY24 Operational Summary Revenue Break-up Q1 Q1 Shift % (₹ Cr.) FY24 FY23 Revenue Mix (%) Plain Gold Customer Brands Branded Jewellery Branded Jewellery 132.0 123.3 7.0% 22% - B2B 76.7 82.6 -7.2% 28% 27% - D2C 55.3 40.7 35.9% Customer brands 271.0 392.0 -30.9% 57% 68% 62% Plain Gold 70.2 57.6 21.
Slide 15: Q1 FY24: Financial & Operational Discussions (Y-o-Y)
Q1 FY24: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 476 crore from Rs. 575 crore Branded Jewelry business revenues stood at Rs. 132 crore, higher by 7% D2C business revenues grew by 36% to Rs. 55 crore in Q1FY24 Branded B2B segment witnessed a decline in reve
Slide 16: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) Strong FCF generation 194 159 113 121 Branded Jewellery - a low capital- 66 87 intensive business FY20 FY21 FY22 TTM June 2022 FY23 TTM June 2023 Operating leverage & minimal capex spends to further improve FCF generation, go
Slide 17: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.52 0.34 0.29 0.30 Highly disciplined balance sheet 0.22 0.22 approach 699 843 924 929 1,026 1,070 364 242 280 318 223 233 Net Debt to Equity ratio as of June 2023 has been constant at 0.22 vs FY20 FY21 FY22 A
Slide 18: Healthy Return Ratios
Healthy Return Ratios ROE ROE (Adjusted for Cash & Current Investments) 18.9% 17.1% 16.6% 13.1% Q1 FY24 Return on Equity stood at 7.8%. It 10.4% 8.8% 13.5% is as high as 10.3% without considering 12.0% 12.1% 9.0% 7.8% cash & current investments 6.0% FY20 FY21 FY22 TTM June FY23 TTM June The stra
Slide 19: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q1 FY24 Q1 FY23 FY23 FY22 Change (%) Change (%) Revenues from Operations 473.2 573.0 -17.4% 2,236.6 2,189.8 2.14% Other Income 3.1 1.6 88.6% 6.1 18.9 -67.7% Total Income 476.3 574.7 -17.1% 2,242.7 2,208.7 1.5% COGS 333.7 432.8
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crore) June 2023 June 2022 Particulars (Rs. Crore) June 2023 June 2022 Shareholder's Funds 1,070.0 929.1 Non-Current Assets Equity Share Capital 18.9 18.9 Fixed Assets – Tangible & Intangible [2] 258.3 224.2 Reserves & Surplus 1,051.3 910.1 CWIP & Intangib
Slide 21: FY2024: Strategic Priorities
FY2024: Strategic Priorities Continued focus on enhancing contribution from D2C segment Integrate customization options across brands Expand omnichannel Presence Achieve historical margin range in the D2C business 16
Slide 22: Company Overview
iO Renaissance Global Limited Company Overview
Slide 23: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 5 6 132 cr. Licensing Direct-to- Branded jewellery agreements with Consumer revenues (Rs.) in global brands websites Q1 FY24 Strong presence in global markets of North America, Europ
Slide 24: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery segment in Studded Segment Association with globally-recognized brands 33% 31% Increased presence in high-potential key global 25% markets Renaissance’s 21% Branded Jewellery Better pricing on the back o
Slide 25: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Distribution Direct-to- Business Consumer (D2C) (B2B) 20
Slide 26: 'Win-Win' Partnership with Global Iconic Brands
‘Win-Win’ Partnership with Global Iconic Brands Renaissance Global Global Brands PUSH STRATEGY PULL STRATEGY Conceptualisation & design Licensing agreements Brand development Manufacturing IP rights of brands Long-term license contracts Product marketing Marketing Distribution Spec
Slide 27: Growing Portfolio of Brands
Growing Portfolio of Brands Licensed Brands Partnership with Hallmark since 2015 Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine jewelry Success of brand unlocked more licensing opportunities Launched Disney Jewels in October 2019 & Disney Treasures in F
Slide 28: Growing Portfolio of Brands
Growing Portfolio of Brands Owned Brands Launched first India-focused retail brand IRASVA in 2019 Operates 3 IRASVA stores in India Jewelili, a play on affordable fine jewellery collection launched in February 2020 Distributed through Amazon platform in addition to its own website Building a
Slide 29: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline Successfully developed February July November February May and launched 6 online 2020 2020 2020 2021 2021 stores Monthly visitors on websites grown 10x since Feb 2020 (UK) Segment enjoys higher margins and healthy working capital cycle A
Slide 30: Growth Drivers
Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Increasing use of lab-grown diamonds to prioritize focus on sustainability Widening Omni-channel distribution network Inorganic growth opportunities 25
Slide 31: Conclusion
Conclusion Play on high-potential global branded jewellery industry ‘Win-Win’ partnership with global iconic brands Footprint in huge developed & developing global markets for branded jewellery Increasing scale to drive operating leverage across distribution channels High margin & low-capital intens
Slide 32: ESG Initiatives
iO Renaissance Global Limited ESG Initiatives
Slide 33: ESG Initiatives
ESG Initiatives ENVIRONMENT SOCIAL To achieve safety, health Renaissance’s CSR POLICY and environmental covers projects through NGOs excellence in all aspects of under: business activities Medical, Health Care and During the quarter Social Welfare Q1FY23, Renaissance Educational Global Ltd.
Slide 34: Annexure
») Renaissance Global Limited Annexure
Slide 35: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.8% Foreign Institutions (FPI, FII & 2.1% NRI) Individual - >1% 3.8% Others 23.3% *Holding as on 30th June 2023 Key Market Statistics As on 30-June-2023 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 110.9 Market Cap (Rs Cror
Slide 36: Conference Call Details
Conference Call Details Q1 FY2024 Earnings Conference Call Time • 02:30 p.m. IST on Friday, August 11, 2023 To enable participants to connect to the conference call Pre-registration without having to wait for an operator, please register at the below mentioned link: Primary dial-in number • + 91 22
Slide 37: About Us
About Us Renaissance Global Limited (Renaissance) is a global branded jewellery player. Renaissance designs, manufactures and supplies branded jewellery across key high- potential markets in USA, Canada, UK & key Asian markets. The product portfolio encompasses Branded Jewellery, Customer Brands & P
Slide 38: Thank You
CO Renaissance Global Limited Thank You