Renaissance Global Limited · NSE:RGL
Renaissance Global — Q2 FY2021 Earnings Presentation
24 slides from Renaissance Global's earnings presentation, Nov 12, 2020
Slide 1: Cover letter to stock exchanges: Performance Highlights Q2 FY21
Ref. No.: RGL/S&L/2020/130 November 12, 2020 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. 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.: Perfor
Slide 2: Q2 FY21 Revenues at ₹ 5,228 mn; de-growth of 7%
Q2 FY21 Revenues at ₹ 5,228 mn; de-growth of 7% Mumbai, November 12, 2020: Renaissance Global Limited (RGL), India’s largest exporter of jewellery and supplier of licensed brands to leading global retailers, reported its unaudited and reviewed results for the quarter and half year ending 30th Septem
Slide 3: Direct-to-Consumer Growth, FY21 Outlook and About the Company
The Company launched brand “IRASVA” in the Indian market through a joint venture with Bennett, Coleman and Company Limited. In line with our plans to expand the IRASVA brand in Mumbai, we have opened 2 new IRASVA stores in Mumbai. Growth through Direct-to-Consumer Business Our direct to consumer
Slide 4: Disclaimer
Disclaimer: This press release 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 5: Q2 FY21 Financial Overview
RENAISSANCE GLOBAL LIMITED Q2 FY21 FINANCIAL OVERVIEW 1
Slide 6: Highlights for Q2 FY21
Highlights for Q2 FY21 Strong Revenues despite Covid-19 • Q2 FY21 Revenues at ₹ 5,228 mn vs Q2 FY20 revenues of ₹ 5,630 mn; de-growth of 7% on account of pent up demand and one time conversions against Q1 FY21 Y-o-Y de-growth of 69% • Q2 FY 21 PAT of ₹ 227 mn vs Q2 FY20 PAT of ₹ 218 mn; growth of 4%
Slide 7: Highlights for Q2 FY21: Strengthening the Balance Sheet
Highlights for Q2 FY21 Strengthening the Balance Sheet Net Debt which was rising post the acquisition of Jay Gems has been brought under control due to a focused approach on working capital reduction • Net Debt to Equity ratio as of Sep 2020 was 0.51 v/s Sep 2019 Net Debt to Equity ratio of 0.71. •
Slide 8: Growing Focus on Brands
Growing Focus on Brands • Renaissance Global is focused on growing its portfolio of licensed and own brands. • Renaissance Global is the exclusive licensee of the following brands: Enchanted Disney Fine Jewelry – Disney Princesses IP Disney Treasures Fine Jewelry – A collection of iconic charact
Slide 9: Our Direct to Consumer Websites
Our Direct to Consumer Websites https://www.enchantedfinejewelry.com/ 5
Slide 10: Star Wars Fine Jewelry website
https://starwarsfinejewelry.com/ 6
Slide 11: Jewelili website
https://www.jewelili.com/ 7
Slide 12: Diamonds Made For You website
https://diamondsmadeforyou.com/ 8
Slide 13: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business • Our direct to consumer business through our websites has shown robust growth during the Q2 FY21 vs. Q1 FY21 D2C Revenues year 100 • The revenues of Star Wars Fine Jewelry are not 89.4 included in Q2 FY21 revenues as it was launched 75 on 05 November 2020 S
Slide 14: FY21 Outlook
FY21 Outlook • Revenues are down 39% during the first half of the financial year due to the lockdowns imposed in various parts of the world on account of Covid-19 • We expect our H2 FY21 revenues to be 20% lower to our H2 FY20 revenues. • The much anticipated launch of Enchanted Disney Fine Jewelry
Slide 15: Long Runway for Growth over Years
Long Runway for growth over 5 years • We will continue to be focused on growing our licensed brands and owned brands as a percentage of total revenues. We see meaningful opportunities in the branded jewellery segment • Verigold China has signed a contract to launch Enchanted Disney Fine Jewelry with
Slide 16: Q2 FY21: Key Highlights
Q2 FY21 : Key Highlights Q2 FY21 vs. Q2 FY20 In ₹ Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5,634 5,320 436 442 227 218 4.3% 7.7% 8.3% 3.9% 6% 1% 4% Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 H1 FY21 vs. H1 FY20 Total Income EBITDA & EBITDA Margin PAT & PAT Margin 388 11,616 6.5%
Slide 17: Q2 FY21: Segment Analysis
Q2 FY21 : Segment Analysis Q2 FY21 vs. Q2 FY20 Studded & Plain Gold Jewellery Geographical Mix Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 17% 15% 15% 25% 25% 22% 60% 63% 75% 83% Studded Jewellery Plain Gold Jewellery N. America Middle East Others H1 FY21 vs. H1 FY20 H1 FY20 H1 FY21 H1 FY20 H1 FY21 18% 16% 11%
Slide 18: Improving Debt-Equity Ratio due to better inventory management
Improving Debt-Equity Ratio due to better inventory management Leverage (₹ Mn) Working Capital Analysis 118 154 153 157 210 10,161 11,430 9,795 6,647 8,183 6,887 7,839 5,915 6,992 5,578 4,225 4,631 3,538 3,731 4,051 5,033 4,860 3,641 4,023 -3,073 -2,931 -2,601 2,857 -4,392 -1,467 FY18 FY19 Sep-19 FY
Slide 19: Improving Gross Margins and EBITDA Margins
Improving Gross Margins and EBITDA Margins Gross Margin Trend • We anticipate long term trend of improving gross margins and EBITDA margins due to business mix 30.0% changing towards licensed and own brands. 23.2% 20.0% 17.3% 10.0% 18.4% 19.5% 13.1% • Gross Margins and EBITDA margins will also expan
Slide 20: Managing Inventory – Important Part of Working Capital Management
Managing Inventory – Important Part of Working Capital Management Inventory Trend 12,000 11,430 10,859 14% 10,161 9,939 9,795 10,000 8,423 8,421 8,183 8,000 7,233 Rs. In Million 6,242 5,915 6,000 4,000 2,000 - Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 16
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In ₹ Mn) Q2 FY21 Q2 FY20 YoY % H1 FY21 H1 FY20 YoY % Revenue From Operations 5,228.7 5,630.1 -7.1% 7,084.3 11,608.5 -39.0% Other Income 91.2 3.9 132.2 7.5 Total Income 5,319.9 5,634.0 -5.6% 7,216.5 11,615.9 -37.9% COGS 4,087.2 4,363.3 -6.3% 5,735.5 9
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In ₹ Mn) Sep-20 Sep-19 Particulars (In ₹ Mn) Sep-20 Sep-19 Shareholder's Funds 7,839.9 6,886.5 Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 860.3 1042.1 Reserves & Surplus 7,653.1 6,699.7 CWIP & Intangibles under dev
Slide 23: 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 24: Thank You
RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to DICKENSON SEAGULL IR Aakash Mehta Renaissance Global Limited Renaissance Global Limited Email: Aakash.Mehta@dickensonworld.com Abhijit S. Karandikar G. M. Walavalkar Mob: 098706 79263 Compliance Officer Vikash Verma Manager