Renaissance Global Limited · NSE:RGL
Renaissance Global — Q3 FY21 Earnings Presentation
22 slides from Renaissance Global's earnings presentation, Feb 1, 2021
Slide 1: Q3 FY21 Financial Overview
RENAISSANCE GLOBAL LIMITED Q3 FY21 FINANCIAL OVERVIEW 1
Slide 2: Highlights for Q3 FY21
Highlights for Q3 FY21 Particulars (In ₹ Mn) Q3 FY21 Q3 FY20 YoY % 9M FY21 9M FY20 YoY % Revenue From Operations 7,398.9 8,931.4 -17% 14,483.3 20,539.9 -29% Gross Profit 1,352.8 1,605.3 -16% 2,833.9 3,917.7 -28% Gross Margin % 18.2% 17.9% 19.4% 19.0% EBITDA 483.6 695.2 -30% 814.4 1449.0 -44% EBITDA
Slide 3: Revenue Mix Q3 FY21
Revenue Mix Q3 FY21 Rs. In Million Business Revenues Revenue % EBITDA % EBITDA Customer Brands 4,493.4 60.7% 6.8% 306.4 Branded Jewellery 1,053.5 14.2% 11.4% 120.1 Direct to Consumer 275.6 3.7% 16.0% 44.1 Plain Gold 1,576.5 21.3% 0.8% 12.9 Total 7,398.9 100% 6.5% 483.6 The Branded jewellery business
Slide 4: TTM Free Cash Flow Generation
TTM Free Cash Flow Generation 1,950 2,000 900 918 726 Free Cash flows (₹ mn) - FY17 FY18 FY19 FY20 Q1 FY21 Q2 FY21 Q3 FY21 -116 -438 -2,000 -3,512 -4,000 4
Slide 5: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business Quarterly D2C Sales Trend D2C Annual Revenue Run Rate* 300 275 800 693 250 700 Annual Revenue Run Rate Sales ( in Rs. Mn.) 600 200 ( in Rs. Mn.) 500 458 150 400 89 100 300 240 57 50 200 100 0 Q1 FY21 Q2 FY21 Q3 FY21 0 Q1 FY21 Q2 FY21 Q3 FY21 • The online dir
Slide 6: Direct to Consumer Business
Direct to Consumer Business • In Q3 FY21 we faced supply chain issues in the direct to consumer business due to which there was loss of sale. This was a result of revenue ramp up faster than anticipated. • Based on January sales, the direct to consumer business is trending at greater than ₹ 100 cror
Slide 7: Strengthening the Balance Sheet
Strengthening the Balance Sheet • Net Debt to Equity ratio as of Dec 2020 was 0.36 v/s Dec 2019 Net Debt to Equity ratio of 0.51. • TTM Return on Equity at 5.1% due to impact of Covid-19 vs Return on Equity for FY20 at 13.5% • Our long term goal is Return on equity greater than 15% 7
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 9 https://www.enchantedfinejewelry.com/
Slide 10: Star Wars Fine Jewelry website
https://starwarsfinejewelry.com/ 10
Slide 11: Jewelili website
https://www.jewelili.com/ 11
Slide 12: Diamonds Made for You website
https://diamondsmadeforyou.com/ 12
Slide 13: Outlook
Outlook • Revenues for Q4 FY21 should be between 0% to -10% compared to Q4 FY20 revenues. • We expect Net Income to increase meaningfully in Q4 FY21 compared to same quarter last year due to contribution from Licensed brands and Direct to consumer business • We expect Net Income and Earnings per sha
Slide 14: Q3 FY21: Key Highlights
Q3 FY21 : Key Highlights Q3 FY21 vs. Q3 FY20 In ₹ Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin* 8,953 695 4.9% 7,415 483 7.8% 440 3.5% 256 17% 30% 6.5% 42% Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 9M FY21 vs. 9M FY20 Total Income EBITDA & EBITDA Margin PAT & PAT Margin* 7.0% 4.0% 2
Slide 15: Q3 FY21: Segment Analysis
Q3 FY21 : Segment Analysis Q3 FY21 vs. Q3 FY20 Studded & Plain Gold Jewellery Geographical Mix Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 10% 8% 19% 21% 24% 25% 66% 67% 81% 79% Studded Jewellery Plain Gold Jewellery N. America Middle East Others 9M FY21 vs. 9M FY20 9M FY20 9M FY21 9M FY20 9M FY21 13% 25% 19% 1
Slide 16: Improving Debt-Equity Ratio due to better inventory management
Improving Debt-Equity Ratio due to better inventory management Leverage (₹ Mn) Working Capital Analysis 118 154 142 157 218 10,161 8,423 8,514 6,647 8,183 7,322 5,915 6,992 8,331 5,578 5,628 5,494 3,538 3,731 4,051 5,033 3,740 3,641 -3,073 -2,931 -3,331 -2,705 2,857 2,964 -1,467 FY18 FY19 Dec-19 FY2
Slide 17: Improving Gross Margins and EBITDA Margins
Improving Gross Margins and EBITDA Margins TTM Gross Margin Trend 30.0% • We anticipate long term trend of improving gross 19.6% 19.9% margins and EBITDA margins due to business mix 20.0% 17.3% 19.5% changing towards licensed and own brands. 18.4% 19.5% 10.0% FY18 FY19 FY20 Q1 FY21 Q2 FY21 Q3 FY21 •
Slide 18: Managing Inventory – Important Part of Working Capital Management
Managing Inventory – Important Part of Working Capital Management Inventory Trend 12,000 11,430 10,859 10,161 9,939 9,795 10,000 8,423 8,421 8,514 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 Dec-20 18
Slide 19: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In ₹ Mn) Q3 FY21 Q3 FY20 YoY % 9M FY21 9M FY20 YoY % Revenue From Operations 7,398.9 8,931.4 -17.2% 14,483.2 20,539.9 -29.5% Other Income 15.7 22.0 147.9 29.4 Total Income 7,414.6 8,953.4 -17.2% 14,631.2 20,569.3 -28.9% COGS 6,061.8 7,348.0 -17.5% 11
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In ₹ Mn) Dec-20 Dec-19 Particulars (In ₹ Mn) Dec-20 Dec-19 Shareholder's Funds 8,331.1 7,322.2 Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 702.9 769.9 Reserves & Surplus 8,144.3 7,135.4 CWIP & Intangibles under deve
Slide 21: 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 22: 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