Raymond Limited · NSE:RAYMOND

Raymond — Q2 FY2019 Earnings Presentation

32 slides from Raymond's earnings presentation, Sep 30, 2018

  1. Slide 1: Result Presentation Quarter ended September 30, 2018

    Result Presentation Quarter ended September 30, 2018

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents Market Overview 04 Initiatives and Awards 06 Financial Highlights 09 Performance of Segments 15 Way Forward 30 3

  4. Slide 4: Market Overview

    si Raymon Market Overview

  5. Slide 5: Market Overview

    Market Overview Textile Apparel & Retail • Textiles growth largely due to base effect of last • Subdued consumer demand with moderate to year on account of GST and upcoming festivities negative SSSG • Higher input costs (raw materials) impacting • Heavy discounted quarter led by EOSS textile players

  6. Slide 6: Initiatives and Awards

    si Raymon Initiatives and Awards

  7. Slide 7: Initiatives

    Initiatives Mini TRS Style play Tailoring Hubs Exclusively selling Raymond Apparel 38 mini TRS rolled out in Q2FY19; 3 tailoring hubs added in Q2, totaling Brands. 5 Stores opened in Q2FY19; totaling to 139 stores as at Sep’18 to 33 hubs as on Sep’18 totaling to 11 stores as at Sep’18 7

  8. Slide 8: Awards

    Awards Best Annual Report Best Brand Strategy Great Place to Work ARC International Awards by MerComm Inc.(US) Awarded to • Grand - Best of Mid-east & India; Won Best Brand Strategy for • Raymond Limited • Gold - Traditional Annual Report “Do Good, Look Good” Campaign • Raymond Apparel Limited • Gol

  9. Slide 9: Financial Highlights

    si Raymon Financial Highlights

  10. Slide 10: Financial Highlights – Q2FY19

    Financial Highlights – Q2FY19 Revenue (INR Cr) EBITDA (INR Cr) & Net Profit (INR Cr) EBITDA margin % 11.4% Underlying Profit at INR 63 Cr, up 9.8% by 56% over Previous Year 1,876 1,616 214 158 60 63 16% 35% 5% Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Net Debt to Equity Ratio NWC days* A&SP 5.

  11. Slide 11: Consolidated Results

    Consolidated Results Particulars (INR Cr) Q2 FY19 Q2 FY18 Y-o-Y% H1 FY19 H1 FY18 Y-o-Y% Net Revenue 1,876 1,616 16% 3,165 2,856 11%* Net Sales 1,848 1,595 16% 3,098 2,792 11% EBITDA 214 158 35% 322 240 34% EBITDA margin 11.4% 9.8% 10.2% 8.4% PBT before exceptions 104 74 41% 112 74 52% PBT margin 5.5

  12. Slide 12: Segment Results – Q2 FY19

    Segment Results – Q2 FY19 Revenue Growth EBITDA EBITDA EBITDA Y-o-Y Particulars (INR Cr) (INR Cr) (YoY%) (INR Cr) Margin Margin % (LTL*) Change Branded Textiles 884 15% 133 15.1% 15.9% -50 bps Branded Apparels 484 15% 14 2.8% 3.2% 0 bps Garmenting 219 19% 16 7.2% 7.8% 420 bps High Value Cotton Shirt

  13. Slide 13: Segment Results – H1 FY19

    Segment Results – H1 FY19 Revenue Growth EBITDA EBITDA EBITDA Y-o-Y Particulars (INR Cr) (INR Cr) (YoY%) (INR Cr) Margin Margin % (LTL*) Change Branded Textiles 1,473 10% 177 12.0% 13.0% -65 bps Branded Apparels 761 10% 20 2.7% 3.2% 220 bps Garmenting 382 17% 25 6.6% 7.4% 271 bps High Value Cotton S

  14. Slide 14: Balance Sheet & Cash Flow Performance Indicators

    Balance Sheet & Cash Flow Performance Indicators Particulars (INR Cr) Q2 FY18 Q2 FY19 Net Worth 1,799 1,912 Net Debt 2,018 2,280 Cash Flow from Operations (61) (30) Free Cash Flow (192) (144) Key Ratios Q2 FY18 Q2 FY19 Net Debt / Equity 1.1 1.2 Net Working Capital Days (TTM basis) 110 109 14

  15. Slide 15: Performance of Segments

    si Raymon Performance of Segments 15

  16. Slide 16: Branded Textiles

    Branded Textiles

  17. Slide 17: Branded Textile

    Branded Textile Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg Net Sales 884 772 15% 1,473 1,345 10% H1: Growth Ex-GST: 11% EBITDA 133 126 5% 177 183 -3% EBITDA margin 15.1% 16.4% 12.0% 13.6% EBITDA margin LTL 15.9% 16.4% 13.0% 13.6% • Increase in sales by 15% supported by domestic

  18. Slide 18: Branded Apparel

    ed Apparel ea Brand

  19. Slide 19: Branded Apparel

    Branded Apparel Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg Net Sales 484 419 15% 761 689 10% H1: Growth Ex-GST: 13% EBITDA 14 14 0% 20 7 188% EBITDA margin 2.8% 3.2% 2.7% 1.0% EBITDA margin LTL 3.2% 3.2% 3.2% 1.0% • Branded Apparel grew by 15% driven by  Strong growth in RR an

  20. Slide 20: Retail Network

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  21. Slide 21: Exclusive Retail Network

    Exclusive Retail Network 2.21mn 2.17mn 60 additions sq ft sq ft 16 1,282 1,236 42 2 9 1 4 322 EBO 310 MTM # 66 14 closures 67 TRS 860 893 Jun 18 TRS MTM EBO TRS MTM EBO Sep 18 • During the quarter  Added 60 new stores (including 38 mini-TRS) and closed 14 stores  Almost all the new stores added ar

  22. Slide 22: Strong Distribution Network

    Strong Distribution Network 4 Branded Textile • 20,000+ points of sale across 46 3 600+ cities and towns 16 23 • 184+ Wholesalers 38 • 1350+ MBOs 57 1 42 • Across Raymond Shop (TRS) - 136 7 55 1 Tier I to VI towns 71 22 1 Branded Apparel 50 75 13 • Presence in over 500 cities and 14 towns 207 • 322

  23. Slide 23: Garmenting

    Garmenting

  24. Slide 24: Garmenting

    Garmenting Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg Net Sales 219 184 19% 382 328 17% H1 Growth Ex-GST: 17% EBITDA 16 7 133% 25 15 64% EBITDA margin 7.2% 3.6% 6.6% 4.7% EBITDA margin LTL 7.8% 3.6% 7.4% 4.7% • Garmenting grew by 19% led by exports growth in US • EBITDA margin

  25. Slide 25: High Value Cotton Shirting

    High Value Cotton Shirting

  26. Slide 26: High Value Cotton Shirting

    High Value Cotton Shirting Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg Net Sales 176 150 17% 333 281 19% H1 Growth Ex-GST: 20% EBITDA 27 17 59% 47 30 57% EBITDA margin 15.4% 11.4% 14.0% 10.5% EBITDA margin LTL 16.2% 11.4% 14.8% 10.5% The results shown above are for 100% operatio

  27. Slide 27: Tools & Hardware Auto Components

    Tools & Hardware 27 Auto Components

  28. Slide 28: Tools and Hardware

    Tools and Hardware Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg H1 Growth Net Sales 104 90 15% 200 177 13% Ex-GST: 17% EBITDA 15 8 84% 23 14 63% EBITDA margin 14.4% 9.0% 11.5% 7.9% The results shown above are for 100% operations and include minority interest • Business grew by 15

  29. Slide 29: Auto Component

    Auto Component Particulars (INR Cr) Q2 FY19 Q2 FY18 % Chg H1 FY19 H1 FY18 % Chg Net Sales 64 53 21% 127 106 19% H1 Growth Ex-GST: 21% EBITDA 14 13 8% 29 24 23% EBITDA margin 22.6% 25.5% 23.3% 22.4% EBITDA margin LTL 22.6% 23.0%* 21.6%* 19.4%* The results shown above are for 100% operations and inclu

  30. Slide 30: Way Forward

    30 Way Forward si Raymon

  31. Slide 31: Way Forward

    Way Forward • Expecting the consumer sentiments to remain modest due to rising inflation and low weddings in Q3 • However, we expect the sentiments to improve towards the end of Q3 led by wedding season in 1st half of CY19 • For Q3, we are expecting high single digit revenue growth and EBITDA margin

  32. Slide 32: Thank You

    ran raymond Thank You www.raymond.in

Raymond — Q2 FY2019 Earnings Presentation on 6ix