Slide 1: Raymond Limited Q3FY23 Result Presentation
Raymond Limited Q3FY23 Result Presentation 31st December, 2022
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: Table of Contents
Table of Contents Q3 Highlights 4 Financial Highlights 11 Key Focus Areas 15 Segment Financials 26 Current Status and Outlook 45 Company Overview 48 3
Slide 4: Q3 Highlights
Q3 Highlights 4
Slide 5: Market Update
Market Update o Domestic: Festive season driving consumer demand • At the backdrop of festivities, markets witnessed resilient consumer demand • Healthy footfalls witnessed in retail outlets driving secondary sales during October and November • Stable demand for Engineering products – amid improveme
Slide 6: Q3 FY23: Highest Revenue & Profitability in the last 10 years
Q3 FY23: Highest Revenue & Profitability in the last 10 years Highest ever quarterly revenue of ₹ 2,200 Cr, up 18% vs. PY & 15% vs. pre-covid (Q3 FY20) Highest Q3 EBITDA of ₹ 351 Cr with EBITDA margin of 15.9% Highest Q3 PBT of 222 Cr with margin of 10.1% Adjusted PAT* is ₹ 168 Cr, up 68% vs. PY PAT
Slide 7: Q3FY23 – Highest Q3 Revenue & Profitability in last 10 years
Q3FY23 – Highest Q3 Revenue & Profitability in last 10 years ₹ Cr. EBITDA 16% Revenue 15.9% 20.0% 18% 380 16.2% 18.0% 280 11.8% 16.0% 10.8% 12.2% 14.0% 1905 1871 2200 180 351 1706 303 12.0% 1286 226 80 185 157 10.0% 8.0% Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 -20 Q3 FY19 Q3 FY20 Q3 FY21 Q3 FY22 Q3
Slide 8: Consistently delivered strong QoQ performance in last 5 quarters
Consistently delivered strong QoQ performance in last 5 quarters ₹ Cr. Revenue EBITDA 380 17.4% 16.3% 15.9% 20.0% 16.2% 13.4% 15.0% 2032 2191 2200 1871 1754 180 303 358 358 351 235 10.0% -20 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 5.0% Pre-covid (2%) 11% 20% 1
Slide 9: NWC days lower by over ~45% from peak level
NWC days lower by over ~ 45% from peak level NWC Days 98 2051 55 ₹ Cr. 1855 1731 1492 1359 1263 1316 1117 1002 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Key initiatives: strong emphasis on collections and efficient inventory management & related production cycles NWC days re
Slide 10: Net debt reduction by ~₹1,450 Cr from peak level
Net debt reduction by ~ ₹ 1,450 Cr from peak level ₹ Cr. 2378 2066 1859 1817 1564 1416 1286 1088 932 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Key Initiatives: Focused revenue growth, cost optimization & effective working capital management generating FCF Net debt reduction
Slide 11: Financial Highlights
an Raymond Financial Highlights
Slide 12: Consolidated Results – Q3FY23
Consolidated Results – Q3FY23 Particulars (INR Cr) Q3FY23 Q2FY23 Q3FY22 YoY 9mFY23 9mFY22 YOY Net Revenue 2,200 2,191 1,871 18% 6,145 4,316 42% Opex 588 540 478 23% 1,643 1,249 32% EBITDA 351 358 303 16% 943 523 80% EBITDA margin % 15.9% 16.3% 16.2% (25 bps) 15.3% 12.1% 324 bps Depreciation 58 57 60
Slide 13: Segment Results – Q3FY23
Segment Results – Q3FY23 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (INR Cr) Q3FY23 Q3FY22 Y-o-Y% Q3FY23 Q3FY22 Q3FY23 Q3FY22 Branded Textile 902 899 - 189 190 20.9% 21.2% Branded Apparel 364 316 15% 41 34 11.2% 10.7% Garmenting 282 203 39% 26 17 9.1% 8.6% High Value Cotton Shirting 195 148
Slide 14: Segment Results – 9m FY23
Segment Results – 9m FY23 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (INR Cr) 9m FY23 9m FY22 Y-o-Y% 9m FY23 9m FY22 9m FY23 9m FY22 Branded Textile 2,462 1,904 29% 505 291 20.5% 15.3% Branded Apparel 996 612 63% 91 12 9.2% 2.0% Garmenting 795 512 55% 64 40 8.0% 7.8% High Value Cotton Shirt
Slide 15: Key Focus Areas
an Raymond Key Focus Areas
Slide 16: Key Focus Areas
Key Focus Areas Liquidity Go to Market Digital Imperatives Cost Rationalization Management • Exclusive • Continued focused on • New Product & Range • Focus on working Merchandise for optimizing operating Development capital management Online expenses • Fasten Omni Channel • On time availability of i
Slide 17: Go to Market Initiatives - Suiting
Go to Market Initiatives - Suiting Ultimo Black – Black superior fabric Gifting Moments – Customised Gifts Ultimo black superior fabric that can be adorned for any occasion Customize the Gift pack as per choice of Fabric color , Combinations, personalized messages, themes, create hashtags , Pers
Slide 18: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting REGIO ITALIA - Collection of finest Italian suiting materials Signature Italian fashion prints and yarn dyed designs in Silk, Cotton and Linen suited for both occasion and formal wear 18
Slide 19: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting Vibez – 2.0 SUSTAINOVA No exposure Good for farmers to chemicals Good for Better for the sensitive skin environment Preserve pure Conserves water Cotton benefits Larger than life fashion prints in intricate ikat patterns, Sustainable fibers like Organic cotton
Slide 20: Go to Market Initiatives - Apparel
Go to Market Initiatives - Apparel ColorPlus - Chinos Park Avenue – Wrinkle Free Shirt Stain-free, Stretchable and Travel Friendly Wrinkle-free Shirts & 100% Cotton 20
Slide 21: Go to Market Initiatives - Ethnics range for targeted Occasion
Go to Market Initiatives - Ethnics range for targeted Occasion Smart Ethnix Festive Collection Wedding Collection 21
Slide 22: Parx Music Fiesta
Parx Music Fiesta mM Raymon FIRST AND GRANDEST EVER IN THANE AND MUMBAI
Slide 23: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Unified B2B Booking Application Digital Engagements Raymondmart.com : • Unified Booking App for all dealer booking • Dynamic Digital Vouchers across Occasions across Suiting, Shirting, Apparel & Home based on shopping preference – eg: Business Internatio
Slide 24: Continued Focus on Cost Optimization
Continued Focus on Cost Optimization Pre-Covid Particulars (Rs Cr) Q3FY23 Q2FY23 Q3FY22 Q3FY20 Employment Cost 262 256 227 255 A & SP 65 60 41 71 Others expenses 261 224 210 253 Total Opex 588 540 478 580 Interest Cost 70 63 57 77 Total Cost 658 603 535 657 Total Opex to Revenue % 26.7% 24.6% 25.5%
Slide 25: Net debt reduction by ₹354 Cr led by profitability and NWC optimization
Net debt reduction by ₹354 Cr led by profitability and NWC optimization NWC lower vs Sep-22 - Decrease in working capital mainly due to reduction in receivables driven by strong collections Particulars (INR Cr) Dec'21 Mar'22 Sep'22 Dec'22 vs Sep'22 vs Dec'21 NWC 1,101 1,002 1,492 1,316 (176) 215 N
Slide 26: Segment Financials
an Raymond Segment Financials
Slide 27: Branded Textile
Branded BrandedTextile Textile Branded Textile 27
Slide 28: Branded Textile
Branded Textile Particulars (INR Cr) Q3FY23 Q3FY22 % Var. 9m FY23 9m FY22 % Var. Net Sales 902 899 - 2,462 1,904 29% EBITDA 189 190 - 505 291 74% EBITDA margin 20.9% 21.2% 20.5% 15.3% • Branded Textile segment sales performance driven by: o Festive season contributed to sales across primary channels
Slide 29: Branded Apparel
BrandedApparel Branded Apparel 29
Slide 30: Branded Apparel
Branded Apparel Particulars (INR Cr) Q3FY23 Q3FY22 % Var. 9m FY23 9m FY22 % Var. Net Sales 364 316 15% 996 612 63% EBITDA 41 34 20% 91 12 637% EBITDA margin 11.2% 10.7% 9.2% 2.0% • Branded Apparel segment recorded a sales growth of 15% in Q3F23 vs PY o Driven by strong consumer demand for festive re
Slide 31: Retail Network
Retail Network 31
Slide 32: Exclusive Retail Network
Exclusive Retail Network 2.34 mn sq ft 2.3 mn sq ft 2.26 mn sq ft 2.33 mn sq ft 1,400 1,376 1,351 1,411 EBO 296 282 261 290 MTM 37 35 35 35 TRS 1,067 1,059 1,055 1,086 Dec’22 Sep’22 Mar’22 Dec’21 24 stores added in Q3 leading to network of 1,400 store in TRS,EBOs and MTM TRS network witnessed ~2
Slide 33: Garmenting
Garmenting Garmenting Garmenting 33
Slide 34: Garmenting
Garmenting Particulars (INR Cr) Q3FY23 Q3FY22 % Var. 9m FY23 9m FY22 % Var. Net Sales 282 203 39% 795 512 55% EBITDA 26 17 47% 64 40 60% EBITDA margin 9.1% 8.6% 8.0% 7.8% • Garmenting segment reported a buoyant sales growth of 39% in Q3F23 vs PY o Continued demand from existing customers & new custo
Slide 35: High Value Cotton Shirting
High Value Cotton Shirting 35
Slide 36: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q3FY23 Q3FY22 % Var. 9m FY23 9m FY22 % Var. Net Sales 195 148 32% 575 397 45% EBITDA 21 13 64% 65 45 46% EBITDA margin 10.7% 8.6% 11.3% 11.3% • Segment sales grew by 32% in Q3FY23 vs PY, led by higher demand for our cotton & linen fabric offerings by o
Slide 37: Engineering
Engineering 37
Slide 38: Engineering Business
Engineering Business Particulars (INR Cr) Q3FY23 Q3FY22 % Var. 9m FY23 9m FY22 % Var. Net Sales 208 209 - 646 607 6% EBITDA 33 31 5% 89 89 - EBITDA margin 15.8% 15.0% 13.8% 14.6% • On aggregate basis, the sales was ₹208 Cr as compared to ₹209 Cr in previous year. • Sales growth was witnessed in dome
Slide 39: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond
Slide 40: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Project Overall 20 acres of residential development TenX Habitat • Total 10 towers with ~2.8 mn sq.ft of saleable area • Total units planned for sale: 3,103 | 2BHK: 2,463; 1BHK: 640 Project Details The Address by GS • Total 2
Slide 41: Ten X Habitat - 3 towers delivered 2 years ahead of RERA Timeline
Ten X Habitat - 3 towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 and 5 Towers 6, 7, 8, 9 and 10 Reference Image – Central Amenities Reference Image – Building Elevation 41
Slide 42: The Address of GS – Construction in full swing
The Address of GS – Construction in full swing Reference Image – Building Elevation Tower A – Podium – 5 slab completed Tower B – Podium 3 slab completed 42
Slide 43: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 43
Slide 44: Booking Update – KPI's
Booking Update – KPI’s Total booking value for the two projects in current year ₹ 1,137 Cr (9mFY23) Ten X as on Dec 31st 2022: Particulars Till Mar-22 Q1FY23 Q2FY23 Q3FY23 9m FY23Project till date Bookings: No of Bookings 1909 157 120 151 428 2,337 Saleable Area (Mn. Sq. ft.) 1.66 0.14 0.12 0.14 0.4
Slide 45: Current Status and Outlook
Current Status and Outlook 45
Slide 46: Current Status of Operations & Outlook
Current Status of Operations & Outlook Company expects to be on profitable growth momentum Domestic Market: While Q4 began with moderate consumer sentiments, expecting uptick in consumer demand in the wedding season in the coming months Exports market: Concerns of inflation in US & Europe markets re
Slide 47: Chairman & Managing Director on Q3FY23 performance
Chairman & Managing Director on Q3FY23 performance “Raymond continues to leverage the buoyancy in domestic markets as the festivities added to the fervor of good consumer demand leading to delivering highest ever revenues in a quarter. I am happy to share, that this is the fifth straight quarter whe
Slide 48: Company Overview
an Raymond Company Overview
Slide 49: 95+ year old diversified group with strong presence across sectors
95+ year old diversified group with strong presence across sectors Suiting Shirting Apparel Retail Presence Garmenting Engineering Real Estate Denim FMCG 49
Slide 50: Group Values
Group Values Trust • One of India’s most trusted textile & apparel brands with near 100% awareness • Strong relationships with stakeholders over last 9 decades Quality • Recognized for its innovation and high-quality product offerings • Loyal consumer base spanning domestic and international markets
Slide 51: Group Overview
Group Overview Group Size • Revenue size of ~ ₹ 8,000 Cr Manufacturing • State-of-the-art 19 manufacturing facilities at strategic locations in India and 1 in Ethiopia Employment • Workforce of 30,000+ Reach • Wide reach in 600+ towns & cities in multiple businesses in India • Global footprint in 95
Slide 52: Raymond Group led by
Raymond Group led by Gautam Hari Singhania Chairman and Managing Director Raymond Ltd Atul Singh S L Pokharna Rajeev Bakshi Ravi Uppal Executive Vice Chairman (Designate) Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Ex – Coca Cola, Colgate - Palmolive Raymond Consumer Care Lt
Slide 53: Management Team
Management Team Atul Singh S L Pokharna Amit Agarwal K A Narayan Executive Vice Chairman Director - Raymond Group CFO President – HR (Designate) Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Colgate - Essar Group Palmolive Jatin Khanna Balasubramanian V Sunil Kataria Hemant Lakhotia Head
Slide 54: Commands Market Leadership across our Businesses
Commands Market Leadership across our Businesses Suiting Shirting Apparel Garmenting ~65% market share in Largest Branded player in Amongst top 3 Largest exporter of men’s worsted suiting shirting fabrics menswear players suits, jackets & Denim Engineering Denim FMCG #1 brand in steel files: #1 in r
Slide 55: Manufacturing Excellence Fabric & Garmenting
Manufacturing Excellence Fabric & Garmenting Suiting Shirting Denim Garmenting Manufacturing world’s Manufacturing world’s Manufacturer of high End to end integrated finest fabric finest fabric quality denim fabrics & garment manufacturer of 250s – worsted suiting 340s – cotton fabric garments to to
Slide 56: Manufacturing Excellence - Engineering, FMCG & Real Estate
Manufacturing Excellence - Engineering, FMCG & Real Estate Engineering FMCG Real Estate #2 Global supplier of Steel Files Amongst the top player in • Fast paced construction One of the leading global players in Ring Gears India’s Sexual wellness activity category • Acceptance of design • End to end
Slide 57: Domestic presence: asset-light distribution network
Domestic presence One of the largest asset-light distribution network in multiple businesses Branded 20,000+ POS Textiles Branded 8,000+ POS Apparel Retail 1,400 stores | ~95% franchisee (2.34 mn sq. ft ) Engineering ~1.5 lakh POS FMCG 6.5 lakh+ POS Pan-India network in over 600 towns & cities * Leg
Slide 58: International Presence
International Presence Global Footprint in 95+ Countries through diversified businesses India North Asia America Europe Dubai Ethiopia South America Africa Australia 45 retail stores in overseas location Overseas Store Location Manufacturing Location * Legends represent indicative store locations; m
Slide 59: Our Brands - Home grown portfolio of renowned brands
Our Brands - Home grown portfolio of renowned brands with high recall value Branded Textile Branded Apparel FMCG Real Estate Engineering Presence in Africa & Asia through multiple Umbrella Brand sub- brands 59
Slide 60: Raymond Group at a Glance
Raymond Group at a Glance Segments Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel 49% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Engineering JK Files & Engi
Slide 61: Thank You
C | ) gir Raymond Thank You www.raymond.in