Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q4 FY23 Earnings Presentation
64 slides from Rupa &'s earnings presentation, May 24, 2023
Slide 1: Stock exchange disclosure letter under Regulation 30
Date: May 24, 2023 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: Q4 & FY23 Investor Presentation
Q4 & FY23 INVESTOR PRESENTATION
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 Company Q4 & FY23 Business Overview Result Model Highlights Growth ESG & CSR Historical Initiatives Initiatives Financials
Slide 5: Company Overview
MACROMAN (@) SERIES Company Overview Now YASH. the new MACROMAN www.macroworld.in LIVE LIKE A MACROMAN Innerwear | Athleisure cru PA
Slide 6: #1 undisputed knitwear Indian brand
#1 undisputed knitwear indian brand Finished goods Finished goods pieces per day 7,00,000+ 1,500+ pieces per day Registration of trademark’s both Retail Outlets 1,50,000+ 100+ Nationally & Internationally SKUs 9,000+ 18 Sub Brands
Slide 7: Long legacy of delivering excellence
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 brand incorporated Established Binod Hosiery thermal wear products “Euro” IPO and listing on Started export of products Calcutta S
Slide 8: Eminent Board of Directors
Eminent Board of Directors Mr. Prahlad Rai Agarwala, Mr. Ghanshyam Prasad Agarwala, Mr. Kunj Bihari Agarwal, Chairman Vice Chairman Managing Director • 50+ years of experience in the textile • 47+ years of experience in the textile • 45+ years of experience in the textile industry industry industry,
Slide 9: Eminent Board of Directors
Eminent Board of Directors Mr. Ramesh Agarwal, Mr. Mukesh Agarwal, Mr. Vikash Agarwal, Whole-time Director Whole-time Director Whole-time Director • More than 30 years of experience in the • 30+ years of experience in the • Graduated from St. Xavier’s College, textile industry textile industry Kolka
Slide 10: Eminent Board of Directors
Eminent Board of Directors Mr. Dipak Kumar Banerjee, Mr. Vinod Kumar Kothari, Mr. Ashok Bhandari, Independent Director Independent Director Independent Director • Vinod Kothari is internationally • Chief Financial Officer and President • Chartered Accountant with 45 recognized as an author, trainer
Slide 11: Eminent Board of Directors
Eminent Board of Directors Mr. Sushil Patwari, Mr. Dharam Chand Jain, Mrs. Alka Devi Bangur, Mr. Sunil Chandiramani, Independent Director Independent Director Independent Director Independent Director • 40+ years of experience in the field • 45+ years of experience in the field • 16+ years of experi
Slide 12: Experienced Management Team
Experienced Management Team Mr. Niraj Kabra, Mr. Rajnish Agarwal, Executive Director President • A commerce graduate from Calcutta University • New generation industrialist, Master’s in Business Administration in Marketing from University of Cardiff, U.K. • More than 20 years of rich expertise in th
Slide 13: Brand to reckon with
Brand to recon with Step 01 Step 03 Step 05 Step 07 Deploy Process Quality Achievement o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here Most Promising Brand 2018 Indywood Excellence Award 2017 Best Corporate Brand 2016 In
Slide 14: Q4 & FY23 Result Highlights
EURO Q4 & FY23 Result Highlights CHUMBAK HAI BHAI
Slide 15: Star Studded Line-up of Brand Ambassadors
Star Studded Line-up of Brand Ambassadors Brand Development Cost (Rs. In Cr) Brand development cost in FY23 at Rs 78 Strong brand recall developed 86 82 cr against Rs 61 cr in FY22. This is 78 through consistent investment in 71 62 attributable to heavy investments in marketing by engaging celebrity
Slide 16: Management Commentary
Management Commentary The year in review has been a challenging year for the industry, witnessing steep volatility in raw material prices which were on increasing trend at the start of the year and then Q4 FY23 FY23 gradually declined steeply. This phenomenon led to destocking at distributor level t
Slide 17: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights Exports continue to perform well with Modern trade & e-commerce registered a FY23 Revenue stands at Rs. 1,143 cr 25% yoy growth in FY23, robust 32% growth and contributed contributing ~4% to overall revenues ~5% to overall revenue Proactive measures to support our tr
Slide 18: Sales mix
Sales mix Region-wise Revenue split Gender-wise Revenue split 4% 4% 7% 12% 13% 46% FY23 FY23 25% 84% 5% East Men North East Women North Kids West & Central South Overseas
Slide 19: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crs.) Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 406.8 456.6 -11% 236.1 72% 1,143.1 1,475.3 -23% Total Raw Material 258.3 209.1 133.8 606.2 633.8 Sub-Contract Expenses 53.4 90.8 36.8 210.3 327.4 Gross Profit 95.1 156.7 65.5
Slide 20: Balance Sheet
Balance Sheet Particulars (Rs. Cr) Mar-23 Mar-22 Particulars (Rs. Cr) Mar-23 Mar-22 ASSETS EQUITY AND LIABILITIES Equity Non-current assets Equity Share capital 8.0 8.0 Property, plant and equipment 207.9 188.7 Other Equity 903.8 873.8 Right to Use Assets 20.3 16.3 Total equity 911.8 881.8 Capital w
Slide 21: Business Model
Business Model caus
Slide 22: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓ Accelerating the launch of ✓ Expanding retail footprint portfolio manufacturing process aspirational brands ✓ Adopting digital ✓ Bran
Slide 23: Broad & unparalleled product portfolio
Broad & unparalleled product portfolio Bermudas Athleisure Leggings & Causal Wear T-shirts Socks Vests/ Upper Thermal Wear Lowers Brief / Drawer Lingerie Vest / Upper Innerwear Lowers "Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with chang
Slide 24: Brands across a wide price range
Brands across a wide price range Diversified, targeted product offering across demographics, categories and price segments Bouquet of Brands across Price Segments Super Premium Segment Gamut of products from innerwear to casual and Premium Segment athleisure wear (Inner wear + Thermal wear + Active
Slide 25: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓An integrated & efficient ✓ Accelerating the launch of ✓ Expanding retail footprint portfolio manufacturing process aspirational brands ✓ Adopting digital ✓ Brand
Slide 26: An integrated & efficient manufacturing process
An integrated & efficient manufacturing process Product Design & Development Manufacturing Process Logistics & Distribution Manufacturing Process Processing / Dyeing Knitting Stitching Warehousing Distribution & Bleaching Logistics & Distribution Critical Processes done in-house Cutting » Automate s
Slide 27: State of art manufacturing facilities
State of art manufacturing facilities Continous investment in R&D to produce environment-friendly clothes and minimize carbon footprints Domjur (West Bengal) Tirupur (Tamil Nadu) Bengaluru (Karnataka) Ghaziabad (NCR) » Knitting: State of the Art Knitting process done at our manufacturing plants » Dy
Slide 28: Unwavering focus on R&D
Unwavering focus on R&D • Harnessing the power of technology enables conforming to international standards • Majority of our fabrics are biodegradable • Innerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methods • Each of Rupa’s p
Slide 29: Quality implemented at each stage
Quality implemented at each stage Quality is our lodestar at Rupa. Since inception, we have never compromised on quality. We believe, if you follow quality, everything else will follow automatically. Understanding the value of research, the ultra- modern laboratory at Rupa’s Dyeing and Processing Pl
Slide 30: High Volume Capacities
High Volume Capacities OPERATIONS IN HOUSE CAPACITY Strategic Advantages Fabric Dyeing & Bleaching 25 Tons/Day • Streamlined Operations • Technologically advanced machineries to support our manufacturing infrastructure Yarn Dyeing & Bleaching 3 Tons/Day • Robust control practices in place to ensure
Slide 31: Enhanced Capabilities with modern infrastructure
Enhanced Capabilities with modern infrastructure Dedicated Export Unit – West Bengal Cutting Unit – West Bengal Investment: Rs 18 crore Investment: Rs 19 crore Expected Commissioning: FY 2023-24 Expected Commissioning: FY 2023-24
Slide 32: Brand Strategy
C@LORS "Ges FRONTLINE Brand Strategy onsen ONE:= Cc RUPA
Slide 33: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓Reinforcing high growth ✓ Expanding retail footprint portfolio manufacturing process segments ✓ Adopting digital ✓ Brands across a wid
Slide 34: Reinforcing high growth: Women's Wear
Reinforcing high growth : Women’s Wear Pioneering Premium Leggings, Lingerie and Brands mantra ‘Effortless You’, communicates Outerwear brand with a huge range of wardrobe exactly to reach out to the primary consumer essentials ho seek ease with a fashionable edge base, i.e. young women, fulfilling
Slide 35: Reinforcing high growth: Athleisure
Reinforcing high growth : Athleisure There’s a fun side to everyone! Bumchums range of T-shirts, Bermudas, Tracks and Muscle Tees is designed for those who hate seriousness High Growth Potential in health and lifestyle focused Active wear segment. Industry has grown by ~13% CAGR since 2011
Slide 36: Reinforcing high growth: Thermal Wear
Reinforcing high growth : Thermal Wear Plan to cross Rs. 200 crores of Thermal wear revenue in next 2 years ✓ Ideal companion during winter months. Now, you can stay warm and stylish in winters ✓ Thermocot fabric is knitted on hi-tech machines with a perfect ✓ Exquisite range of thermal wear, knitte
Slide 37: Scaling high margin revenue streams
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 pattern
Slide 38: Distribution Network
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Slide 39: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓ Reinforcing high growth ✓Expanding retail footprint portfolio manufacturing process segments ✓Adopting digital ✓ Brands across a wide
Slide 40: Expanding retail footprint
Expanding retail footprint 1,50,000+ Strong position in Eastern India. Strategy: Foray in newer markets by Retail Outlets Gaining significant presence in appointing new distributors and building the North followed by the West, experienced team while offering 1,500+ establishing a Pan- India presence
Slide 41: Digitisation & Information Technology
Digitisation & Information Technology Digital Transformation Areas Upgraded Channels Digital Transformation Core Enterprise solution with SAP F&VB S4 HANA Implementation Manual Costing Details flow from Auto PR Derivation worth Pricing Upgrade Channels Revamp of B2C Sales Channel Rupa Online Store A
Slide 42: Growth Initiatives
1 MACROMAN (3) Growth Initiatives
Slide 43: Recent Strategic Initiatives
Recent Strategic Initiatives Rapid expansion in Investing in modern Scaling up high potential areas trade & e-commerce Athleisure Expanding Focus on high EBO network margin business roll out 150 more increase share in EBOs in the next premium category 2 years Focus on exports new emerging markets: d
Slide 44: Rapid expansion in high potential areas
Rapid expansion in high potential areas Medium Term Target 3X - 4 Years 4X - 3 Years 5X - 3 Years 5X - 3 Years -21% 222 +32% 51 +25% 175 39 41 33 +11% 14 16 X-Factor Areas Modern Trade Exports Govt. Business West Bengal, Maharashtra [Ex Mumbai Focus on e-commerce via partnerships International busin
Slide 45: Expanding EBO network
Expanding EBO network Exclusive Brand outlets Our maiden flagship store at Camac Street, Kolkata Current store count : 28 EBO Strategy: › Rupa flagship store of 1000 sq ft launched in Kolkata › Create small to mid sized Franchisee Store Model with best-in-class SOPs › Build and nurture, competent Fr
Slide 46: Investing in modern trade and e-commerce
Investing in modern trade and e-commerce Modern Online Current store count: 1400+ Retail Apps & Presence on all e-commerce sites Trade portals Strategy: Strategy: › Increase Brand Footprints across all › E-commerce Industry is poised to grow at 13% brands creating special product line more CAGR (Nie
Slide 47: Focus on exports and new markets
Focus on exports and new markets UAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | 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 team
Slide 48: ESG & CSR Initiatives
ESG & CSR Initiatives
Slide 49: Why does ESG matter to us?
Why does ESG matter to us? Sustainability is something that Investors are demanding, Collaboration with EY to implement ESG Customers are expecting, Shareholders are relying on, & Employees are valuing. ESG maturity assessment & Good financial returns, doing business gap analysis against internation
Slide 50: Rupa's Pillars of Sustainability
Rupa’s Pillars of Sustainability Strategic Sustainability Pillars Environment Social Governance ❖ Materials management ❖ Diversity and inclusion ❖ Corporate governance ❖ Energy and climate change ❖ Talent management ❖ Ethics, transparency and management accountability ❖ Occupational health and safet
Slide 51: Strong Board Oversight on ESG
Strong Board Oversight on ESG Responsible Governance Board Tenure • Active oversight from Board of Directors and dedicated 0 - 7 years 28% Board level CSR committee for overseeing ESG risks >12 years 36% • Corporate social responsibility embedded in our Values • Fosters a culture of honesty, integri
Slide 52: 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 ▪ Installed bag filters to ensure particulate captured and reused in operations i
Slide 53: Care for our People
Care for our People Adhering to the highest labour standards All workmen on the shop floor are required to undergo We respect and protect human rights workplace safety training to ensure prevention of unsafe both within and outside the workplace acts. through the implementation of SA 8000 framework.
Slide 54: 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 committed to society, ecology and environment. Our Focus Area
Slide 55: Strengthening our Communities
Strengthening our Communities Our Focus Areas and Expenditures Project Objective Amount Invested (in INR) Eradicating hunger, 17.30 Lakh poverty and malnutrition Promoting healthcare including 130.58 Lakh preventive healthcare 52.52 Lakh Support towards construction of Cancer awareness and detection
Slide 56: CSR Activities
CSR Activities Supporting Education Blanket Donation Supporting Education
Slide 57: Historical Performance
Historical Performance
Slide 58: 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 1,149 1,143 975 889 156 112 151 155 109 800 H2 661 643 487 114 74 H2 91 89 62 54 54 41 H2 36 24 513 586 102 113 66 80 25 H1 488 488 500 H1 60 60 48 H1 38 38 29 FY19 FY20 FY21 FY22 FY23 FY19 F
Slide 59: Key Performance Ratios
Key Performance Ratios ROCE (%) ROE (%) Debt to Equity (X) 30.8% 26.8% 28.4% 23.8% 0.38 0.40 0.30 20.2% 0.27 14.2% 13.6% 11.0% 0.19 8.5% 6.0% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Working Capital Days Inventory Debtors Creditors 175
Slide 60: 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% Mark of gratitude to our shareholders during the pandemic: Special Dividend of 500 Rs. 2/- per equity share 200 300 300 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15 FY16 FY17
Slide 61: Key Takeaways
Key Takeaways
Slide 62: 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 63: Rupa & Co. – Key Takeaways
Rupa & Co. – Key Takeaways #1 undisputed knitwear Indian brand 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 con
Slide 64: Thank You
Thank You CIN: L17299WB1985PLC038517 Mr. Sumit Khowala sumit.khowala@rupa.co.in Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in