Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY2019 Earnings Presentation
29 slides from Raymond's earnings presentation, Jun 30, 2018
Slide 1: Results Presentation Quarter Ended June 30, 2018
RESULTS PRESENTATION QUARTER ENDED JUNE 30, 2018
Slide 2: Disclaimer
Disclaimer • 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 and are not in
Slide 3: Contents
Contents Market Overview Business Update Highlights Business-wise Details Way Forward 3
Slide 4: Market Overview
Market Overview 4
Slide 5: Market Overview
Market Overview Apparel/Textile Retail • Seasonally moderate quarter with subdued • Moderate demand due to sluggish consumer consumer sentiments and lesser number of wedding sentiments dates • However, growth supported by revival of wholesale • High base for most retailers due to pre-ponement of and
Slide 6: Business Update
Business Update 6
Slide 7: Initiatives
Initiatives Tailoring Hubs Khadi 5 tailoring hubs opened in Q1; totaling to 30 hubs as Khadi by Raymond launched in April’18 at Jun’18 Style Play Mini TRS Exclusive MBO (FOFO) selling Raymond Apparel Brands 10 mini TRS rolled out in Q1FY19; totaling to 101 4 Stores opened in Q1FY19; totaling to
Slide 8: Awards
Awards Raymond’s Annual Report 2017-18 wins Raymond wins multiple awards for multiple awards in Global Annual Report Retail Marketing: Local Store Activations Competition (LACP, US) Marketing Campaign of the Year, Indian Retail Silver Winner Worldwide in Consumer Durables Awards 2018 Top 5 Ind
Slide 9: Highlights
Highlights 9
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (Rs Cr) EBITDA (Rs Cr) Net Profit (Rs Cr) 1,289 107 1,240 81 (7) 0.02 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 * Revenue growth of 8% on excluding GST impact * Lower revenue recognition by ~4%, due to revenue booking “net of excise” post GST as agains
Slide 11: Consolidated Results
Consolidated Results INR Crore Q1 FY19 Q1 FY18 Change Net Revenue* 1,289 1,240 4% Net Sales 1,251 1,197 4% EBITDA 107 81 32% EBITDA margin 8.3% 6.6% PBT before excp 8 0 NA PBT margin 0.6% 0.0% Exceptional item (2) - NA Net Profit 0.02 (7) NA Profit margin 0.0% -0.6% * Excluding GST impact, revenue g
Slide 12: Q1 Sales Bridge and Q1 EBITDA Bridge
Q1 SALES BRIDGE (Rs. Cr) Q1 EBITDA BRIDGE (Rs. Cr) 1,197 Q1FY18 81 16 Branded Textiles 13 8 Branded Apparel 13 20 Garmenting 1 26 Luxury Cotton Shirting 7 9 Tools & Hardware 2 9 Auto Components 5 35 Others & Elimination 11 1,251 Q1FY19 107 Rs 54 cr Rs 26 cr Company entered into contracts with group
Slide 13: Business-wise Details
Business-wise Details Pst RON
Slide 14: Branded Textiles
BRAWDED TEXTILES Raymon
Slide 15: Branded Textiles
Branded Textiles INR Crore Q1 FY19 Q1 FY18 Change Net Sales 589 572 3% Growth Excluding GST 7% EBITDA 44 57 -23% EBITDA margin 7.5% 10.0% Increase in sales excluding GST impact by 7% Suiting and Shirting business grew by 3% and 23% respectively driven by channel expansion and exports growth
Slide 16: Branded Apparel
BRANDED APPREL BRANDED APPAREL 16
Slide 17: Branded Apparel
Branded Apparel INR Crore Q1 FY19 Q1 FY18 Change Net Sales 278 270 3% Growth Excluding GST 10% EBITDA 7 (6) NA EBITDA margin 2.4% -2.4% Growth driven by strong performance in MBO channel and contribution from new customer segments EBITDA margin improved to 2.4% as compared to negative 2.4% in th
Slide 18: Retail
RETAIL 18
Slide 19: Exclusive Retail Network
Exclusive Retail Network 2.17mn 2.15mn 32 additions sq ft sq ft 19 1,236 1,219 12 1 4 3 310 8 EBO 299 MTM# 68 15 closures 66 TRS 852 860 Mar 18 TRS MTM EBO TRS MTM EBO Jun 18 During the quarter • Added 32 new stores (including 10 mini-TRS) and closed 15 stores • All the new stores added are franch
Slide 20: Garmenting
GARMENTING 20
Slide 21: Garmenting
Garmenting INR Crore Q1 FY19 Q1 FY18 Change Net Sales 164 144 14% Growth Excluding GST 14% EBITDA 10 9 12% EBITDA margin 6.0% 6.1% • Sales growth of 14% led by exports growth in Europe • EBITDA margins maintained ~6% 21
Slide 22: High Value Cotton Shirting
HIGH VALUE COTTON SHIRTING
Slide 23: High Value Cotton Shirting
High Value Cotton Shirting INR Crore Q1 FY19 Q1 FY18 Change Net Sales 158 131 20% Growth Excluding GST 23% EBITDA 19 13 55% EBITDA margin 12.4% 9.6% The results shown above are for 100% operations and include minority interest Sales growth on account of better offtake by the customers Improvemen
Slide 24: Engineering Tools & Hardware, Auto Components
ENGINEERING TOOLS & HARDWARE AUTO COMPONENTS 24
Slide 25: Tools & Hardware
Tools & Hardware INR Crore Q1 FY19 Q1 FY18 Change Net Sales 96 87 10% Growth Excluding GST 18% EBITDA 8 6 34% EBITDA margin 8.3% 6.8% The results shown above are for 100% operations and include minority interest Growth driven by better performance in domestic markets Healthy improvement in EBITD
Slide 26: Auto Components
Auto Components INR Crore Q1 FY19 Q1 FY18 Change Net Sales 63 54 16% Growth Excluding GST 21% EBITDA 15 10 44% EBITDA margin 24.0% 19.5% The results shown above are for 100% operations and include minority interest High growth driven by strong demand from both domestic and international customers
Slide 27: Way Forward
Way Forward 27
Slide 28: Way Forward
Way Forward Consumer demand continued to remain moderate at retail level during July. However, overall consumer sentiments expected to improve supported by shift to new season stock and onset of festivities starting August For 2QFY19, we expect early double digits revenue growth and to maintai
Slide 29: Thank You
THANK YOU www.raymond.in 29