Raymond Limited · NSE:RAYMOND
Raymond — Q2 FY2024 Earnings Presentation
70 slides from Raymond's earnings presentation, Nov 8, 2023
Slide 1: Exchange filing cover letter – Investor Presentation
RL/SE/23-24/177 November 8, 2023 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 Dear Si
Slide 2: Q2FY24 Result Presentation
R AY M O N D L I M I T E D Q2FY24 RESULT PRESENTATION 30th September 2023 1
Slide 3: Raymond delivers strong quarter with highest ever Revenue and EBITDA
Raymond delivers strong quarter with highest ever Revenue and EBITDA Continues to Maintain Net Debt Free Status at Group Level REVENUE Delivered Highest Quarterly EBITDA Reported Highest ever HIGHEST Revenues, despite muted EVER ₹2,321 Cr. customer demand and tough ₹382 Cr. EBITDA in a Quarter marke
Slide 4: Table of Content
Pages 1 Q2FY24 Highlights 4-9 2 Strategic Initiatives Undertaken 10-15 3 Financial Highlights 16-20 TABLE OF CONTENT 4 Go To Market Initiatives 21-26 5 Segment Financials 27-50 6 Current Status and Outlook 51-53 7 Company Overview 54-64 8 Annual Financial Performance 65-69 3
Slide 5: Q2FY24 Highlights
mM Raymond Q2FY24 HIGHLIGHTS
Slide 6: Market Update
Market Update DOMESTIC MARKET EXPORTS MARKET • Subdued consumer demand due to low • US, UK & Europe: Order book remained consumer sentiments. healthy for formal wear category in • Discretionary spending impacted primarily garmenting inspite of significant due to inflationary pressures and higher cha
Slide 7: Q2FY24: Delivers Highest Ever Revenue and EBITDA
Q2FY24: Delivers Highest Ever Revenue and EBITDA Despite muted customer demand 6% Revenue EBITDA & Margins (%) (₹Cr.) (₹Cr.) 8% 16.6% 16.3% 2,321 12.4% 13.5% 2,191 1,913 1,583 386 358 732 213 237 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24* PBT & Margins (%)# (52)
Slide 8: Consistent Strong Performance Over Successive Quarters
Consistent Strong Performance Over 9 Successive Quarters (₹Cr.) Revenue (₹Cr.) EBITDA & Margins (%) 16.6% 17.6% 16.3% 15.9% 17.3% 2,191 2,200 2,192 2,321 16.2% 1,871 2,032 1,754 1,826 13.4% 14.0% 1,583 13.5% 303 358 358 351 379 386 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 F
Slide 9: Continued focus on optimizing NWC
Continued focus on optimizing NWC (₹Cr.) Peak Level Sep-19 NWC 2,051 1,927 Sep-23 NWC includes ₹227 1,855 includes ₹578 Cr of Real Cr of Real Estate NWC 1,583 1,492 Estate NWC 1,359 1,263 1,265 1,117 1,002 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 NWC Days 98 62 79 76 • K
Slide 10: Net Debt Free Two Years Ahead Of Stated Guidance
Net Debt Free Two Years Ahead Of Stated Guidance (₹Cr.) Peak Level 2,378 1,859 With FMCG business 1,817 Sale proceeds of 1,564 1,416 1,286 ₹2,825 Cr. 1,088 achieved Net Debt free status at 689 Group level Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 * 1,100* Achieved Surplus Cash a
Slide 11: Strategic Initiatives Undertaken
Strategic INITIATIVES UNDERTAKEN 10
Slide 12: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING RECENT VALUE UNLOCKING THE CORE (FY21-23) & GROWTH INITIATIVES in FY24 Reset the Business model during Covid Selling of Demerger* of FMCG Business Lifestyle Business Established Real Estate Business Engineering Business forays Shaping Scalable into sunr
Slide 13: Deleveraging Action
Deleveraging Action Selling of FMCG Business Raymond Consumer Care Ltd. (RCCL) Slump Sale of FMCG business^ Net of tax Growth Capital with trademarks ₹2,825 Cr. realization available at of Park Avenue Proceeds ₹2,200 Cr* Raymond Group Level (FMCG category), Premium, KS and Kamasutra to GCPL# • The c
Slide 14: Engineering: Acquisition of MPPL - Business Overview
Engineering: Acquisition of MPPL - Business Overview Raymond forays into sunrise sectors of Aerospace, Defense and EV Components Business P&L Overview (FY23) SALES MIX in FY23 ₹ ~97 Cr. 25 Auto Industry ₹750+ Cr. EBITDA Countries 77% 23% REVENUE ~13% Aerospace EBITDA MARGIN GEOGRAPHICAL MIX Nearly D
Slide 15: Engineering: Building a Stronger Scalable Combined Business
Engineering: Building a Stronger Scalable Combined Business Our Strategy is significantly boosted by this acquisition JKFEL MPPL Combined Entity ‘Newco’# Aero & Defence T&H 23% 30% SALES Auto SALES SALES* T&H ₹872 Cr. 43% Auto ₹750+ Cr. Auto ~₹1,600 Cr. 57% 77% 59% 11% Aero & Defence EBITDA: ₹123 Cr
Slide 16: Primed for Growth
Primed for Growth RAYMOND GROUP Three Distinct Vectors of Growth RCCL Raymond Ltd. To be a listed Lifestyle Company (Existing Listed Company) 1 Lifestyle Real Estate 2 3 Engineering Business (₹6,550 Cr. Aggregate (~₹1,115 Cr. (~₹1,600 Cr. Proforma Sales in FY23) Sales in FY23) Revenue in FY23) • Tha
Slide 17: Financial Highlights
mM Raymond Financial HIGHLIGHTS
Slide 18: Q2FY24: Consolidated Results
Q2FY24: Consolidated Results Particulars (₹ Cr.) Q2FY24 Q1FY24 Q2FY23 YoY H1FY24 H1FY23 YoY Net Revenue 2,321 1,826 2,191 6% 4,147 3,945 5% Opex 620 555 540 15% 1,175 1,054 11% EBITDA (excluding ESOP) 386 256 358 8% 642 592 8% EBITDA Margin % 16.6% 14.0% 16.3% 15.5% 15.0% Reported EBITDA 382 252 358
Slide 19: Q2FY24: Segment Results
Q2FY24: Segment Results Performance driven by Lifestyle business Post IndAS 116 Revenue EBITDA EBITDA % Q2 Q2 Q2 Q2 Q2 Q2 Particulars (₹ Cr.) YoY% YoY% FY24 FY23 FY24 FY23 FY24 FY23 Branded Textile 933 912 2% 207 203 2% 22.1% 22.3% Branded Apparel LIFESTYLE 437 370 18% 53 36 49% 12.2% 9.7% BUSINESS*
Slide 20: H1FY24: Segment Results
H1FY24: Segment Results Performance driven by Lifestyle business Post IndAS 116 Revenue EBITDA EBITDA % H1 H1 H1 H1 H1 H1 Particulars (₹ Cr.) YoY% YoY% FY24 FY23 FY24 FY23 FY24 FY23 Branded Textile 1,621 1,560 4% 323 317 2% 19.9% 20.3% Branded Apparel LIFESTYLE 741 632 17% 73 51 43% 9.8% 8.0% BUSINE
Slide 21: Q2FY24: Net Working Capital and Liquidity
Q2FY24: Net Working Capital and Liquidity NWC higher mainly due to Increase in: vs vs vs • Inventory to cater to demand for upcoming Particulars (₹ Cr.) Sep’23 Jun’23 Mar’23 Sep’22 Jun’23 Mar’23 Sep'22 festive season & incremental stock in new stores NWC 1,927 1,583 1,265 1,492 344 662 435 • Receiva
Slide 22: Go To Market Initiatives
mM Raymond Go To MARKET INITIATIVES 21
Slide 23: Go to Market Initiatives — Suiting
Go to Market Initiatives — Suiting RWS wool ECO LIFE A Sustainable fabric made from Super 100s, Sustainable Super 90s and Super Fabric 70s RWS wool. 22
Slide 24: Go to Market Initiatives — Shirting
Go to Market Initiatives — Shirting Voyage Art Photo Print Regio Italia Sustainova 4-Way Stretch Stain Resistant Stain Resistant Checkmate 23
Slide 25: Go to Market Initiatives — Apparel
Go to Market Initiatives — Apparel COLORPLUS (Chinos) PARK AVENUE 24
Slide 26: Ethnix by Raymond
‘Ethnix by Raymond’ Ethnix range for targeted Occasion Festive Collection Wedding Collection Smart Ethnix 25
Slide 27: Digital Imperatives
Digital Imperatives The new norm of business Smart analytics Smart Retail LIVE Analytics: Raypulse Personalise Gifting : Gifting Moments • A unified App hosted in both Android & iOS for capturing • Dynamic Digital Vouchers across occasions based on LIVE feed from CRO’s across Multi-brand & LFS shopp
Slide 28: Segment Financials
mM Raymond Segment FINANCIALS
Slide 29: Branded Textile
BRANDED TEXTILE 28
Slide 30: Branded Textile
Branded Textile Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 933 912 2% 1,621 1,560 4% EBITDA 207 203 2% 323 317 2% EBITDA margin 22.1% 22.3% 19.9% 20.3% ➢ Recorded sales growth of 2% in Q2FY24 Vs PY • Quarter witnessed lower offtake due to delayed festivals & wedding date
Slide 31: Branded Apparel
BRANDED APPAREL Branded Apparel 30
Slide 32: Branded Apparel
Branded Apparel Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 437 370 18% 741 632 17% EBITDA 53 36 49% 73 51 43% EBITDA margin 12.2% 9.7% 9.8% 8.0% ➢ Recorded sales growth of 18% in Q2FY24 Vs PY, driven by • Strong performance in the retail formats of own store network and
Slide 33: Retail Network
Raymond RETAIL NETWORK 32
Slide 34: Exclusive Retail Network
Exclusive Retail Network 2.49 Mn 2.36 Mn 2.36 Mn 2.30 Mn sq ft sq ft sq ft sq ft 1453 1407 1409 1376 345 311 316 282 EBO 43 42 40 35 MTM 1065 1054 1053 1,059 TRS Sep'23 June'23 Mar'23 Sep'22 • 46 net store additions during the quarter • ‘Ethnix by Raymond’: Opened 17 new stores leading to total 92 s
Slide 35: Garmenting
GARMENTING 34
Slide 36: Garmenting
Garmenting Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 312 266 18% 577 513 13% EBITDA 23 23 (2%) 47 38 24% EBITDA margin 7.3% 8.7% 8.2% 7.5% ➢ Sales growth of 18% in Q2FY24 vs PY • Healthy momentum in orderbook maintained with China+1 adoption & consolidation of vendors b
Slide 37: High Value Cotton Shirting
HIGH VALUE COTTON SHIRTING 36
Slide 38: High Value Cotton Shirting
High Value Cotton Shirting Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 210.8 210.5 0% 403 380 6% EBITDA 27.7 27.8 0% 47 44 7% EBITDA margin 13.2% 13.2% 11.7% 11.7% ➢ Top line maintained at a same level in Q2FY24 Vs PY • In current environment of subdued consumer sentiment
Slide 39: Engineering
ENGINEERING 38
Slide 40: Engineering Business
Engineering Business Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 201 228 (12%) 410 437 (6%) EBITDA 26 29 (13%) 55 56 (2%) EBITDA margin 12.7% 12.8% 13.4% 12.8% ➢ The segment witnessed a de-growth of 12% in second quarter as compared to last fiscal: • Topline impacted due
Slide 41: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond
Slide 42: Real Estate Business at a Glance
Real Estate Business at a Glance Development of Own Land & JDA led business model in MMR region THANE LAND: (~100 Acre^) JDA LED BUSINESS MODEL Asset Light Expansion FURTHER POTENTIAL AREA UNDER Development Development Upcoming Appointed as a Developer for Project In a Prominent project in ~60 Acre
Slide 43: Existing Projects Booking Update (as on 30th September)
Existing Projects Booking Update (as on 30th September) Q1 Q2 H1 Project 10 towers with Particulars FY23 FY24 FY24 FY24 Till Date RERA carpet area % No of Bookings 542 102 85 187 2,638 UNIT SOLD ~1.7 Mn sq.ft. RERA Carpet Area* 0.31 0.06 0.05 0.11 1.43 Total Units Planned: Value of Bookings (Cr.) 66
Slide 44: Existing Projects Booking Update (as on 30th September)
Existing Projects Booking Update (as on 30th September) 2 Towers with Project RERA Carpet Area Particulars Till Date % UNIT SOLD ~0.5 Mn sq.ft. No of Bookings 107 LAUNCHED UNITS RERA Carpet Area* 0.13 Total Units Planned: 440 Value of Bookings (Cr.) 269 Launch in July-23 5BHK & above: 24, 4BHK: 156;
Slide 45: Ten X Habitat
Ten X Habitat 3 towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 & 5 Towers 6, 7, 8, 9 & 10 Central Amenities Building Elevation Reference Image Reference Image 44
Slide 46: The Address By GS
The Address By GS Construction in full swing Building Elevation Tower (A) 18th Floor Slab Completed Tower (B) 10th Floor Slab Completed Reference Image 45
Slide 47: Ten X ERA
Ten X ERA Launched in Feb-23 Tower (B) Foundation work in progress Building Elevation Tower (C) Plinth Slab Completed Reference Image 46
Slide 48: The Address by GS Season 2
The Address by GS Season 2 Launched in Q2FY24 Building Elevation Tower (C) Excavation in progress Reference Image (Tower C & Tower D) 47
Slide 49: Invictus by GS
Invictus by GS Launched in Q2FY24 Building Elevation Excavation in progress Reference Image 48
Slide 50: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 49
Slide 51: Real Estate Business
Real Estate Business Particulars (₹ Cr.) Q2FY24 Q2FY23 % Var. H1FY24 H1FY23 % Var. Net Sales 243 247 (2%) 476 534 (11%) EBITDA 47 63 (25%) 102 142 (28%) EBITDA margin 19.5% 25.6% 21.4% 26.6% ➢ Strong booking momentum maintained during the quarter: • In TenX brand offering (TenX Habitat & TenX ERA),
Slide 52: Current Status & Outlook
mM Raymond Current Status & OUTLOOK 51
Slide 53: Current Status of Operations & Outlook
Current Status of Operations & Outlook 1 3 Company expects to be on profitable REAL ESTATE growth momentum with 3 vectors of growth: Lifestyle, Real Estate and • Residential real estate continues to demonstrate Engineering sustained demand • Our Projects: Construction activity in full swing in compl
Slide 54: Chairman & Managing Director on Q2FY24 performance
Chairman & Managing Director on Q2FY24 performance The growth trajectory at Raymond continues its journey as we have recorded yet another stellar quarter. We continue to achieve milestones across businesses as we recently announced our second project under joint development in our real estate busine
Slide 55: Company Overview
mM Raymond Company OVE RVI EW
Slide 56: 98+ Year Old Diversified Group
98+ Year Old Diversified Group With strong presence across sectors SUITING SHIRTING APPAREL RETAIL PRESENCE ~65% market share Largest branded player Amongst top 3 Presence in 600+ in worsted suiting in shirting fabrics menswear players cities with 1450+ Stores GARMENTING RealESTATE REAL Estate ENGIN
Slide 57: Group Values
Group Values TRUST QUALITY EXCELLENCE • One of India’s most trusted textile • Recognized for its innovation • Leadership in different & apparel brands with near 100% and high-quality product offerings product categories awareness • Loyal consumer base spanning • Crafting world-class offerings • Stro
Slide 58: Raymond Group Led by
Raymond Group Led by S.L. POKHARNA RAVI UPPAL Director Non-Executive Chairman GAUTAM HARI SINGHANIA Raymond Ltd. JK Files & Engineering Ltd & RPAL Ex – L&T, JSW Currently – CMD of Steel Infra Chairman & Managing Director Solutions P. Ltd Raymond Ltd. 57
Slide 59: Raymond Management Team
Raymond Management Team S.L. POKHARNA AMIT AGARWAL K.A. NARAYAN JATIN KHANNA Director Group CFO President – HR Head – Corporate Raymond Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Development Essar Group Ex- Max Financial Services SUNIL KATARIA HARMOHAN SAHNI BALASUBRAMANIAN V ARVIND MATHUR CEO-Lifesty
Slide 60: Manufacturing Excellence
Manufacturing Excellence Fabric & Garmenting SUITING SHIRTING DENIM GARMENTING Mfg. World’s Finest Fabric Mfg. World’s Finest Fabric Mfg. of High Quality Denim End-to-End 250s – Worsted Suiting 340s – Cotton Fabric Fabrics & Garments to Top Integrated Garment Mfg. 150 Lea Linen Fabric Global & India
Slide 61: Manufacturing Excellence
Manufacturing Excellence Engineering & Real Estate ENGINEERING REAL ESTATE • #2 Global supplier of Steel Files • One of the leading global players in Ring Gears - End to end manufacturing solutions provider for files & drills • Fast paced construction activity - Sole manufacturer of Flex Plates in I
Slide 62: Domestic Presence
Domestic Presence One of the largest asset-light distribution network in multiple businesses Branded Branded 8,000+ 20,000+ Textiles Apparel POS POS 1,453 stores Retail ~1.5 lakh (2.49 Mn sq. ft) Engineering POS Pan-India network inover 600 towns & cities * Legends represent indicative store locatio
Slide 63: Our Brands
Our Brands Home grown portfolio of renowned brands with high recall value BRANDED TEXTILE BRANDED APPAREL REAL ESTATE ENGINEERING Presence in Africa & Asia through multiple sub- brands 62
Slide 64: International Presence
International Presence Global Footprint in 90+ Countries through diversified businesses North Asia INDIA America Europe Dubai Ethiopia South America Africa Australia 47 Retail stores in overseas location Overseas Store Location Manufacturing Location 63 * Legends represent indicative store locations
Slide 65: Raymond Group at a Glance
Raymond Group at a Glance SEGMENTS Branded Textile PROMOTER Suiting B2C Shirting Made to Measure (MTM) GROUP Branded Apparel Bed and Bath Garmenting Everblue Silver Spark Ethiopia* High Value Apparel (100%) Apparel (100%) (100%) 49% Cotton Shirting Raymond Luxury Cotton (100%) Engineering Real Estat
Slide 66: Annual Financial Performance
Annual FINANCIAL PERFROMANCE 65
Slide 67: Strong Annual Performance Across Parameters
Strong Annual Performance Across Parameters (₹Cr.) Revenue (₹Cr.) EBITDA & Margins (%) (₹Cr.) Net Profit & Margins (%) 31% YoY 50% YoY 103% YoY Growth Growth Growth 8,337 15.9% 600 6,578 1,400 22.0% 6.3% 6,348 500 10.0% 1,200 13.9% 17.0% 1,000 400 9.3% 1,322 3,648 800 12.0% 300 3.0% 4.1% 5.0% 600 3.
Slide 68: Segmental Sales & EBITDA Margin (%)
Segmental Sales & EBITDA Margin (%) (₹Cr). Branded Textile (₹Cr). Branded Apparel (₹Cr). Garmenting 4,000 25.0% 20.9% 1,800 12.0% 1,200 7.6% 9.0% 3,500 14.9% 17.6% 1,600 10.8% 6.5% 10.0% 8.0% 20.0% 1,400 1,000 3,000 7.0% 2,500 1,200 1,619 8.0% 3,364 1,100 800 6.0% 15.0% 2,917 10.4% 1,000 4.8% 843 5.
Slide 69: 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 inte
Slide 70: Thank You
+12 gir Raymond THANK YOU [