Slide 1: Exchange filing cover letter
RL/SE/AC/20-21/72 November 10, 2020 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 500330 Symbol: RAYMOND Luxe
Slide 2: Raymond Limited Q2 FY21 Result Presentation
Raymond Limited Q2 FY21 Result Presentation
Slide 3: 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 4: Table of Contents
Table of Contents Company Overview 4 Q2 Highlights 10 Financial Highlights & Current Status 19 Way Forward 44 Annexures 46 3
Slide 5: Company Overview
sh Company Overview
Slide 6: Raymond Group: Introduction
Raymond Group: Introduction SUITING SHIRTING APPAREL RETAIL PRESENCE GARMENTING ENGINEERING REAL ESTATE DENIM FMCG A diversified group with interests in Textile & Apparel sectors as well as presence across diverse segments such as Real Estate, FMCG, Engineering in national and international markets
Slide 7: Raymond: A Group with Strong Leadership Position
Raymond: A Group with Strong Leadership Position # 1 player in Amongst leading 1st organised retailer Manufacturer of Near 100% worsted suiting men’s tailored suit in India world’s finest fabric consumer awareness fabrics in India manufacturers in the world One of the world’s One of the largest Larg
Slide 8: Raymond Group at a Glance
Raymond Group at a Glance Segments Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel Raymond Apparel (100%) 48% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Tool
Slide 9: Raymond Group Leadership Team
Raymond Group Leadership Team led by Gautam Hari Singhania Chairman and Managing Director Raymond Limited Nirvik Singh Rajeev Bakshi Ravi Uppal Non Executive Chairman Non Executive Chairman Non Executive Chairman Raymond Apparel Limited Raymond Consumer Care Ring Plus Aqua Limited Current – COO of G
Slide 10: Management Team
Management Team Amit Agarwal Joe Kuruvilla S L Pokharna K A Narayan Group CFO CEO – Lifestyle President – President – Ex- JSW, Jet Airways, Ex- Uniliver PLC Commercial Human Resources Essar Group Ex- Wockhardt Ganesh Kumar Balasubramanian V Arvind Mathur Sudhir Langer COO – Lifestyle CEO – Auto and
Slide 11: Q2 Highlights
sh Q2 Highlights
Slide 12: Market Update
Market Update Month on Month recovery in Q2 • July & August month impacted by local lockdowns • September month witnessed improvement in sales Recovery in consumer sentiments and emerging trends • Consumer sentiments showing recovery led by festive & wedding season • Week-on-week improvement in seco
Slide 13: H1FY21 Highlights
H1FY21 Highlights Cost Rationalisation • Sales & marketing, manpower & Liquidity Management rentals • Focus on collections and inventory • Restructuring organization to ensure reduction efficiencies • Rationalize capex New Business opportunities Digital Imperatives Raymond Care Initiative • Expand O
Slide 14: Cost rationalisation
Cost rationalisation Particulars (Rs Cr) Q2FY21 Q2FY20 H1FY21 H1FY20 Q2 (Y-o-Y %) H1 (Y-o-Y %) Employment Cost 154 264 325 507 -42% -36% A & SP 17 80 20 121 -79% -83% Others* 133 237 233 448 -44% -48% Total Opex 304 582 579 1,076 -48% -46% Q2 opex similar to Q1 levels while revenue up ~3x o Fixed
Slide 15: Liquidity Management: Maintained at June and March levels
Liquidity Management: Maintained at June and March levels Maintained liquidity and Net Debt levels at June and March levels with focused working capital management and cost rationalization − Cash & Cash Equivalents at Rs. 592 cr in Sep-20 (vs. Rs. 596 cr in Jun-20 & Rs. 571 cr in Mar-20) − Net deb
Slide 16: New Business Opportunity: Raymond Care Initiative
New Business Opportunity: Raymond Care Initiative Expansion of Premium Brand portfolio Personal Protective Equipment (PPE) Hand Sanitizer: 100 ml, 200 ml, 5 ltr. Hand Wash PPE Suit Masks portfolio Latex Gloves Launched a range of sanitizing products including Utilized garment manufacturing facto
Slide 17: New initiatives undertaken in Q2FY21
New initiatives undertaken in Q2FY21 Expansion of Fabric offering Garment Exchange Program Launched fabric with anti-viral technology in Exchange old garments for free tailoring Autumn Winter (AW20) booking in Aug-20 and on fabric purchase received good traction with wide dealer coverage Recei
Slide 18: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Digital Order Booking Strengthening 3rd party tie-up • Moving from physical • Aggressive play on tradeshows to digital rendering e-commerce marketplaces of samples & 3D modelling with over 2x more options • Shifting to digital swatch books, made availabl
Slide 19: Stores 2.0 – Reassuring customers & incentivizing them
Stores 2.0 – Reassuring customers & incentivizing them Video campaign focusing on Pre-booking offer Store opening communication customer advocacy Videos shared through LinkedIn and PAN India, through Member SMS, Facebook, Direct SMS with video link Facebook pages Twitter, Instagram Concierge service
Slide 20: Financial Highlights & Current Status
Financial Highlights & Current Status 19
Slide 21: Consolidated Results – Q2 and H1 FY21
Consolidated Results – Q2 and H1 FY21 Particulars (Rs Cr) Q2FY21 Q1 FY21 Q2 FY20 H1FY21 H1FY20 Net Revenue 732 222 1,913 954 3,383 Opex 304 275 582 579 1,076 EBITDA -52 -167 237 -218 381 EBITDA margin -7.1% - 12.4% -22.9% 11.3% Taxes 80 101 11 182 10 Associate / JV / Minority -3 -21 2 -24 -1 Net Pro
Slide 22: Segment Results – Q2 FY21
Segment Results – Q2 FY21 Post Ind AS 116 Revenue EBITDA Particulars (Rs Cr) Q2FY21 Q2FY20 Y-o-Y% Q2FY21 Q2FY20 Branded Textile 230 869 -74% -6 139 Branded Apparel 71 529 -87% -74 49 Garmenting 187 233 -20% 19 12 High Value Cotton Shirting 33 161 -79% -11 27 Tools and Hardware 100 103 -3% 15 14 Auto
Slide 23: Segment Results – H1 FY21
Segment Results – H1 FY21 Post Ind AS 116 Revenue EBITDA Particulars (Rs Cr) H1FY21 H1FY20 Y-o-Y% H1FY21 H1FY20 Branded Textile 246 1,469 -83% -101 179 Branded Apparel 71 842 -92% -113 89 Garmenting 287 423 -32% 13 16 High Value Cotton Shirting 39 335 -88% -28 54 Tools and Hardware 120 194 -38% 1 22
Slide 24: Balance Sheet & Performance Indicators
Balance Sheet & Performance Indicators Particulars Sep'20 June'20 Mar'20 Net Worth (Rs Cr) 2,086 2,216 2,464 Net Debt (Rs Cr) 1,817 1,827 1,859 Net Debt / Equity (X) 0.9 0.8 0.8 Net Working Capital (Rs Cr) 1,359 1,550 1,855 Cash flow Positive in H1FY21: • Operating cash flow at Rs 138 Cr • Free Cash
Slide 25: Branded Textile
Branded Textile
Slide 26: Branded Textile
Branded Textile Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 230 869 -74% 246 1,469 -83% EBITDA -6 139 -101 179 EBITDA margin -2.5% 16.0% - 12.2% Performance impacted largely in July and August due to weak demand on account of lockdowns September witnessed traction i
Slide 27: Branded Apparel
Branded Apparel
Slide 28: Branded Apparel
Branded Apparel Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 71 529 -87% 71 842 -92% EBITDA -74 49 -113 89 EBITDA margin - 9.3% - 10.6% Recovery in Branded Apparel business remained impacted due to: o Intermittent lockdowns delaying the opening of retail touch-points a
Slide 29: Retail Network
Retail Network
Slide 30: Exclusive Retail Network & Current Status
Exclusive Retail Network & Current Status 2.52 mn sq ft 2.48 mn sq ft 1,608 1,577 EBO 431 405 MTM 65 58 TRS 1,112 1,114 Jun’20 Sep’20 Q2 FY21 • Store rationalisation in progress to make the retail portfolio healthy − Net store closure at 31 for Q2 and 61 for H1 Current Status The Raymond Shop (TRS)
Slide 31: Strong Distribution Network
Strong Distribution Network 6 Branded Textile 50 6 • 20,000+ points of sale across 14 32 600+ cities and towns 47 59 1 • 180+ Wholesalers 2 • 1,360+ MBOs 70 169 • Across TRS - Tier I to VI towns 12 1 83 1 91 76 31 84 1 Branded Apparel 21 23 • Presence in 500+ cities & towns 228 • 404 EBOs 76 • 5,400
Slide 32: Garmenting
Garmenting
Slide 33: Garmenting
Garmenting Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 187 233 -20% 287 423 -32% EBITDA 19 12 13 16 EBITDA margin 10.1% 5.3% 4.5% 3.7% Recovery mainly led by improvement in bulk & institutional MTM business to key markets of US & Europe along with contribution from sa
Slide 34: High Value Cotton Shirting
High Value Cotton Shirting
Slide 35: High Value Cotton Shirting
High Value Cotton Shirting Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 33 161 -79% 39 335 -88% EBITDA -11 27 -28 54 EBITDA margin - 16.7% - 16.0% Performance impacted due to lockdowns and related weak demand in the market The results shown above are for 100% operation
Slide 36: Tools & Hardware Auto Components
Tools & Hardware Auto Components
Slide 37: Tools and Hardware
Tools and Hardware Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 100 103 -3% 120 194 -38% EBITDA 15 14 1 22 EBITDA margin 15.2% 13.8% 1.0% 11.1% Topline back to previous year levels led by growth in domestic markets and well supported by exports to LATAM & US markets
Slide 38: Auto Components
Auto Components Particulars (Rs Cr) Q2 FY21 Q2 FY20 % Var. H1FY21 H1FY20 % Var. Net Sales 49 52 -7% 70 120 -42% EBITDA 10 8 9 22 EBITDA margin 20.7% 15.4% 13.2% 17.9% Revenue recovery led by revival in demand from domestic market and well supported by exports market EBITDA margin improvement led
Slide 39: Raymond Realty
Raymono | REALTY Go Beyond .@ B. gir aymoria
Slide 40: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Overall 20 acres of residential development Project − Phase 1: ~14 acre of development Phase 1 - Project Total 10 towers with ~2.7 mn sq.ft of saleable area Details Total units planned for sale: 2,976 | 2BHK: 2,314; 1BHK: 662
Slide 41: Construction Update – Current Status
Construction Update – Current Status Tower - A Tower - C Tower - B Tower - D 14th floor slab work in progress for Tower A, B & C 1st floor work in progress for Tower D Tower E, J & K – Excavation work in progress 40
Slide 42: Financial Update – KPI's
Financial Update – KPI’s KPI's Till Mar'20 Q1FY21 Q2FY21 Till Sep'20 Bookings: No. of bookings 950 13 49 1012 Area (mn sq. ft.) 0.8 0.01 0.04 0.9 Value of Bookings (Rs Cr) 948 10 39 997 Customers Collection (Rs Cr) 221 14 47 282 P&L Snapshot Particulars (Rs Cr) FY20 Q2FY21 H1FY21 Sales* 176 19 24 EB
Slide 43: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 42
Slide 44: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant 43
Slide 45: Way Forward
Way Forward 44
Slide 46: Way Forward
Way Forward Increasing trend in sales Recovery in festive season & onset of wedding season to strengthen domestic demand Raymond well poised for recovery led by strong product portfolio & deep penetration Exports Lockdowns due to second wave of covid-19 may impact demand Cost Optimisation On
Slide 47: Annexures
Annexures 46
Slide 48: Consolidated Financial Overview
Consolidated Financial Overview Revenue (Rs Cr) Profitability Ratios 11.2% 9.6% 9.1% 7.7% 10.5% 8.0% 9.1% 8.9% 6.8% 6.7% 4.7% 3.0% 5,296 5,509 6,025 6,708 6,571 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA Margin ROCE India Global Leverage Indicators 4.0 4.2 FY 20 Revenue by 3.5 Geograph
Slide 49: Profit & Loss Account Summary
Profit & Loss Account Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Revenue 5,296 5,509 6,025 6,708 6,571 7,194 EBITDA 506 423 546 702 440 680 EBITDA % 9.6% 7.7% 9.1% 10.5% 6.7% 9.5% EBIT 347 266 376 506 231 EBIT % 6.6% 4.8% 6.2% 7.5% 3.5% PBT before exceptional 158 88 192 273
Slide 50: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Branded Textile Revenue 2,702 2,714 2,915 3,153 2,917 3,152 EBITDA % 17.3% 14.1% 15.7% 13.8% 13.5% 14.9% Branded Apparel Revenue 1,119 1,270 1,424 1,647 1,619 1,911 EBITDA % 2.0% -1.0% 1.6% 3.7% -4.9
Slide 51: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Garmenting Revenue 593 639 691 779 843 873 EBITDA % 8.3% 8.4% 5.2% 5.1% 3.5% 4.3% Tools & Hardware* Revenue 394 350 365 401 376 395 EBITDA % 4.7% 2.0% 9.0% 10.7% 9.6% 11.0% Auto Components* Revenue 1
Slide 52: Thank You
nh Raymond Thank You www.raymond.in