Renaissance Global Limited · NSE:RGL
Renaissance Global — H1 FY24 Earnings Presentation
39 slides from Renaissance Global's earnings presentation, Nov 9, 2023
Slide 1: Exchange cover letter
Ref. No.: RGL/S&L/2023/159 November 09, 2023 BSE Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip code: 532923 Symbol: RGL
Slide 2: Renaissance Global announces Q2 & H1 FY24 Results
PRESS RELEASE Renaissance Global announces Q2 & H1 FY24 Results Q2 FY24 Total Income stood at Rs. 443.2 crore Direct-to-Consumer business revenues up 23% to Rs. 53.8 crore EBITDA stood at Rs. 31.7 crore, with margins at 7.2% PAT stood at Rs. 10.5 crore Mumbai, November 09, 2023: Renaissance Global L
Slide 3: Management commentary and Key Developments
Commenting on the performance for Q2 & H1 FY24, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “External demand environment continues to put pressure on our revenue performance and consequently on overall group operating margins. Despite these headwinds, we witnessed heal
Slide 4: Direct to Consumer (D2C) Business Update
Direct to Consumer (D2C) Business Update: During Q2 FY24, the direct-to-consumer business posted revenues of ₹53.8 crore compared to ₹43.9 crore in Q2 FY23, up by 23%. For H1FY24, the direct to customer business revenue was up by 29% to ₹109.1 crore Based on the estimates of a quarter’s contribu
Slide 5: About Renaissance Global Limited
About Renaissance Global Limited (Renaissance) Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), is a global branded jewellery player. Renaissance designs, manufactures, and supplies branded jewellery across key high-potential markets in USA, Canada, UK & Asia. The product portfolio
Slide 6: Results Presentation Q2 & H1 FY24
Results Presentation Q2 & H1 FY24
Slide 7: 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 8: Content
Content Q2 & H1 FY24 Company Annexure Results Overview Overview 4 15 28 3
Slide 9: Q2 & H1 FY24 Results Overview
iO Renaissance Global Limited Q2 & H1 FY24 Results Overview
Slide 10: Q2 & H1 FY24 Financial Summary
Q2 & H1 FY24 Financial Summary Revenue (Rs. Crore) EBITDA (Rs. Crore) EBITDA 8.6% 7.2% 7.9% 7.4% Margin (%) 1,013.2 915.1 79.9 68.4 440.2 441.9 37.9 31.7 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 PAT (Rs. Crore) EPS (Rs.) PAT 3.5% 2.4% 3.9% 2.7% Margin (%) 4.21 2.62 39.8 1.64 2
Slide 11: Management Message
Management Message Commenting on the performance for Q2 & H1 FY24, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said: “External demand environment continues to put pressure on our revenue performance and consequently on overall group operating margins. Despite these headwinds
Slide 12: Key Developments
Key Developments Irasva Fine Jewellery Expands Offline Presence with New Store in Borivali, Mumbai Following the success of its Hyderabad, Mumbai and Ahmedabad stores, IRASVA has introduced yet another new store at Borivali, Mumbai The second of its kind luxury and lifestyle store in Mumbai, des
Slide 13: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q2 FY24, the direct-to-consumer business posted revenues of ₹54 crore compared to ₹44 crore in Q2 FY23, up by 23%. For H1FY24, the direct to customer business revenue was up by 29% to ₹109 crore Based on the estimates of a quarter’s contribution t
Slide 14: Q2 & H1 FY24 Operational Summary
Q2 & H1 FY24 Operational Summary Revenue Break-up Q2 Q2 H1 H1 Revenue Mix (%) Shift % Shift % Plain Gold Customer Brands Branded Jewellery (Rs. Cr.) FY24 FY23 FY24 FY23 Branded Jewellery 109.1 99.6 9.6% 241.1 223.7 7.8% 25% 23% 26% 22% - B2B 55.3 55.7 -0.7% 132.0 139.1 -5.1% - D2C 53.8 43.9 22.7% 10
Slide 15: Matrix of Natural vs Lab Grown Diamonds in Studded Jewellery
Matrix of Natural vs Lab Grown Diamonds in Studded Jewellery H1 FY24 D2C 50% 50% Lab grown diamonds (LGD) have gained widespread acceptance worldwide, particularly in engagement rings and solitaire jewelry. LGD B2B 4% 96% Natural Diamond The price disparity between natural and lab grown diamonds
Slide 16: H1 FY24: Financial & Operational Discussions (Y-o-Y)
H1 FY24: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 919 crore from Rs. 1,016 crore in H1FY23 Branded Jewellery business revenues up 7.8% YoY to Rs. 241 crore supported by a steady flow of orders from retail partners and revenues from D2C business D2C business r
Slide 17: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) Strong FCF generation 194 159 Branded Jewellery - a low capital- 113 108 113 66 intensive business FY20 FY21 FY22 TTM September FY23 TTM September Operating leverage & minimal capex 2022 2023 spends to further improve FCF gen
Slide 18: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52 0.41 0.29 0.30 0.29 665 0.22 699 936 1,077 843 924 1,026 503 364 381 317 242 280 223 Highly disciplined balance sheet FY19 FY20 FY21 FY22 TTM FY23 TTM approach September September 2022 2023 Net Debt t
Slide 19: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 Change (%) Change (%) Revenues from Operations 441.9 440.2 0.4% 915.1 1,013.2 -9.7% Other Income 1.3 1.5 -14.5% 4.4 3.1 39.5% Total Income 443.2 441.7 0.3% 919.5 1,016.3 -9.5% COGS 300.6 295.1 1.
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet September September September September Particulars (Rs. Crore) Particulars (Rs. Crore) 2023 2022 2023 2022 Shareholder's Funds 1,076.8 935.8 Non-Current Assets Equity Share Capital 19.2 18.9 Fixed Assets – Tangible & 255.2 258.4 Reserves & Surplus 1,057.7 916.7 Intangible
Slide 21: FY2024: Strategic Priorities
FY2024: Strategic Priorities Continued focus on enhancing contribution from D2C segment Integrate customization options across brands Expand omnichannel Presence Achieve historical margin range in the D2C business 16
Slide 22: Company Overview
iO Renaissance Global Limited Company Overview
Slide 23: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 5 6 650 cr. Licensing Direct-to- Annualized run- agreements with Consumer rate of Branded global brands websites jewellery revenues Strong presence in global markets of North in FY24
Slide 24: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Revenue contribution from Branded Jewellery segment in Studded Segment Association with globally-recognized brands 31% 31% Increased presence in high-potential key global 25% markets 21% Renaissance’s Branded Jewellery Better pricing on the back of brande
Slide 25: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Business Direct-to- Distribution (B2B) (through retail Consumer (D2C) and jewellery store (through our partners) websites) 20
Slide 26: Licensed Brands
Licensed Brands These brands are sold through the following B2B and D2C channels: Specialty Jewellery Stores B2B Big departmental stores Websites owned and managed by us D2C E commerce platforms like Amazon 21
Slide 27: 'Win-Win' Partnership with Global Iconic Brands
‘Win-Win’ Partnership with Global Iconic Brands Renaissance Global Global Brands PUSH STRATEGY PULL STRATEGY Conceptualisation & design Licensing agreements Brand development Manufacturing IP rights of brands Long-term license contracts Product marketing Marketing Distribution Spec
Slide 28: Growing Portfolio of Brands
Growing Portfolio of Brands Licensed Brands Partnership with Hallmark since 2015 Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine jewelry Success of brand unlocked more licensing opportunities Launched Disney Jewels in October 2019 & Disney Treasures in F
Slide 29: Growing Portfolio of Brands
Growing Portfolio of Brands Owned Brands Launched first India-focused retail brand IRASVA in 2019 Operates 3 IRASVA stores in India Jewelili, a play on affordable fine jewellery collection launched in February 2020 Distributed through Amazon platform in addition to its own website Building a
Slide 30: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline Successfully developed February July November February May and launched 6 online 2020 2020 2020 2021 2021 stores Monthly visitors on websites grown 10x since Feb 2020 (UK) Segment enjoys higher margins and healthy working capital cycle A
Slide 31: Growth Drivers
Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Increasing use of lab-grown diamonds to prioritize focus on sustainability Widening Omni-channel distribution network Inorganic growth opportunities 26
Slide 32: Conclusion
Conclusion Play on high-potential global branded jewellery industry ‘Win-Win’ partnership with global iconic brands Footprint in huge developed & developing global markets for branded jewellery Increasing scale to drive operating leverage across distribution channels High margin & low-capital intens
Slide 33: ESG Initiatives
iO Renaissance Global Limited ESG Initiatives
Slide 34: ESG Initiatives
ESG Initiatives ENVIRONMENT SOCIAL To achieve safety, health Renaissance’s CSR POLICY and environmental covers projects through NGOs excellence in all aspects of under: business activities Medical, Health Care and During the quarter Social Welfare Q1FY23, Renaissance Educational Global Ltd.
Slide 35: Annexure
») Renaissance Global Limited Annexure
Slide 36: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 69.6% Foreign Institutions (FPI, FII & 4.1% NRI) Individual - >1% 3.7% Others 22.6% *Holding as on 30th Sep 2023 Key Market Statistics As on 30-September-2023 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 104.55 Market Cap (Rs
Slide 37: Conference Call Details
Conference Call Details Q2 & H1 FY2024 Earnings Conference Call Time • 04:00 p.m. IST on Friday, November 10, 2023 To enable participants to connect to the conference call Pre-registration without having to wait for an operator, please register at the below mentioned link: Primary dial-in number • +
Slide 38: About Us
About Us Renaissance Global Limited (Renaissance) is a global branded jewellery player. Renaissance designs, manufactures and supplies branded jewellery across key high- potential markets in USA, Canada, UK & key Asian markets. The product portfolio encompasses Branded Jewellery, Customer Brands & P
Slide 39: Thank You
CO Renaissance Global Limited Thank You