Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q1 FY22 Earnings Presentation
51 slides from Rupa &'s earnings presentation, August 2021
Slide 1: Stock exchange cover letter for investor presentation
|Gomer Date: 11/08/2021 To, The Listing Department The Department of Corporate Services National Stock Exchange of India Ltd BSE Ltd Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex Dalal Street, Bandra (E), Mumbai - 400 051 Mumbai- 400 001 NSE Symbol: RUPA Scri
Slide 2: Investor Presentation August 2021
INVESTOR PRESENTATION August 2021
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Rupa & Company Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or ind
Slide 4: Q1 FY22 Financial Highlights
Q1 FY22 FINANCIAL HIGHLIGHTS
Slide 5: Strong Q1 FY22 Performance
Strong Q1 FY22 Performance* Revenue from Operations EBITDA Profit After Tax Rs. 218 crores Rs. 42 crores Rs. 27 crores +4% +16% +32% Export Revenues EBITDA Margin PAT Margin Rs. 5 crores 19.3% 12.5% +125% +200 bps +270 bps * On Consolidated Basis 4
Slide 6: Q1 FY22 Performance Highlights
Q1 FY22 Performance Highlights Particulars (Rs. Crs.) Q1 FY22 Q1 FY21 Y-o-Y FY21 Total Revenue 218.0 209.5 4% 1,312.7 Total Raw Material 74.2 111.2 611.4 Subcontracting Expenses 59.3 28.7 241.9 Value Addition 84.5 69.6 21% 459.4 Value Addition (%) 38.8% 33.2% 35.0% Employee Expenses 14.4 9.7 52.7 Ot
Slide 7: Strong FY21 Performance
Strong FY21 Performance* Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 1,313 crores Rs. 459 crores Rs. 257 crores Rs. 175 crores +35% +34% +126% +183% Total Dividend Gross Profit Margin EBITDA Margin PAT Margin Rs. 5/- per share 35.0% 19.6% 13.4% +67% +20 bps +790 bps +700 bps FY2
Slide 8: Strong Balance Sheet
Strong Balance Sheet Return on Capital Employed (RoCE) Return on Equity (RoE) Operating Cash Flows Cash & Bank Balances 30.8% 26.8% Rs. 211 crores Rs. 118 crores Improved from +1,710 bps +1,610 bps +133% Rs. 1.7 crores in FY20 Return on Capital Employed (RoCE) Net Debt Net Debt to Equity Working Cap
Slide 9: Balance Sheet
Balance Sheet ASSETS (Rs. Crs.) Mar-21 Mar-20 EQUITY & LIABILITIES(Rs. Crs.) Mar-21 Mar-20 Non ‐ Current Assets Equity Property, plant and equipment 168.9 166.2 Equity Share Capital 8.0 8.0 Right of Use Assets 18.1 11.9 Other Equity 721.6 570.0 Total Equity 729.5 578.0 Capital work‐in‐progress 19.4
Slide 10: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) Mar-21 Mar-20 Cash Flow from Operating Activities Profit before Tax 237.4 84.0 Adjustment for Non-Operating Items 23.8 31.3 Operating Profit before Working Capital Changes 261.2 115.3 Changes in Working Capital -6.7 19.3 Cash Generated from Operatio
Slide 11: About the Company
ABOUT THE COMPANY
Slide 12: #1 Undisputed knitwear Indian brand
#1 Undisputed knitwear Indian brand… 7,00,000+ 1,25,000+ ‘One of the leading and Finished goods pieces per Retail Outlets day largest knitwear brand in India, engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear and fashion wear’ 7,000+ 18 SK
Slide 13: With long legacy of delivering excellence
… with long legacy of delivering excellence Acquired exclusive license from “FCUK” Acquired exclusive license from Fruit of the Loom, Inc Awarded the “Promising Brands- 2018” by The Economic Times 50 Years of Creating Fashion… 2016 2018 2013 2015 Took over the business of Binod Hosiery and converted
Slide 14: Leadership and experienced advisory board
…under the leadership and experienced advisory board Mr. Prahlad Rai Agarwala, Chairman Mr. Ghanshyam Prasad Agarwala, Vice Chairman Mr. Kunj Bihari Agarwal, Managing Director • More than 50 years of experience in the textile industry • More than 47 years of experience in the textile industry • More
Slide 15: A highly experienced management team
…and a highly experienced management team Mr. Vikash Agarwal, President Mr. Rajnish Agarwal, President • New generation industrialist, graduated from St. Xavier’s College, Kolkata and • New generation industrialist, Master’s in Business Administration in Marketing from completed Diploma in Marketing
Slide 16: Maintaining brand leadership over decades
…maintaining brand leadership over decades Most Promising Brand 2018 Indywood Excellence Award Best Corporate Brand 2016 The Economic Times 2017 The Economic Times Indian Power Brand 2011-12 Govt. of Telangana First Indian innerwear manufacturer as licensee The Worlds Greatest Brand 2015 Worldwide a
Slide 17: Affordability + Scalability + Inspirational Brands
We offer Affordability + Scalability + Inspirational Brands 1. Affordability 2. Scalability 3. Inspirations Brands An integrated & efficient business model Accelerating the launch of inspirational brands Broad & unparalleled product State of Art Manufacturing facility portfolio Far-reaching footprin
Slide 18: Broad & unparalleled product portfolio
1. Broad & unparalleled product portfolio Innerwear Thermal Wear Casual / Athleisure Vests Vest / Upper Leggings & Causal Wear Brief / Drawer Lowers Socks Lingerie T-shirts Bermudas & Tracks Athleisure & Winter Fashion "Rupa overhauls its portfolio periodically to the fast-changing requirements, evo
Slide 19: Brands across a wide price range
1. Brands across a wide price range Diversified product offering across customer types, product categories and price segments Bouquet of Brands across Price Segments Super Premium Segment Gamut of products from Premium Segment innerwear to casual and athleisure wear (Inner wear + Thermal wear + Acti
Slide 20: An integrated & efficient business model
2. An integrated & efficient business model Product Design & Development Manufacturing Process Logistics & Distribution Manufacturing Process Processing / Knitting Dyeing & Stitching Warehousing Distribution Bleaching Logistics & Distribution Critical Processes done in-house Cutting › Reduce costs &
Slide 21: State of Art manufacturing facility
2. State of Art manufacturing facility Continues investment in R&D to produce environment-friendly clothes and minimize carbon footprints Domjur (West Bengal) Tirupur (Tamil Nadu) Bengaluru (Karnataka) Ghaziabad (NCR) Knitting: State of the Art Knitting process done at our manufacturing plants 25 to
Slide 22: Far-reaching footprints
2. Far-reaching footprints Pan India Presence RUPA enjoys very strong position in the East of India and has gained significant presence in the North followed by the West of India Strategy is to foray in newer markets by appointing 1,200+ new distributors and building experienced team and Dealers fur
Slide 23: Quality implemented at all levels
2. Quality implemented at all levels Pursuit of quality without compromise is achieved Understanding the value of research, the ultra- Application of advanced technology at every by single-minded focus on innovation and modern laboratory at Rupa’s Dyeing and Processing level – from planning to produ
Slide 24: Unwavering focus on R&D
2. Unwavering focus on R&D We put in a lot of research and effort to give Harnessing the power of technology allows to environmentally friendly clothes conform to international standards of fastness properties like rubbing, perspiration, light and washing Innerwear, thermals and hosiery products are
Slide 25: Rupa – A truly Global Indian
3. Accelerating the launch of inspirational brands • Exclusive license to develop, manufacture, market and sell the FCUK brand of innerwear and related products in India • Access to a global brand with strong brand recognition in the super premium segment Well-known & largest • Brings global experti
Slide 26: Deepening commitments by consistent investments
3. Deepening commitments by consistent investments Strong brand recall developed through consistent investment in advertising and brand promotion strategies Over Rs. 1,000 crores spent on brand development in the last decade Rs. Crs. 80 86 82 71 54 Consistent annual investment of 6-8% of sales in br
Slide 27: IT Infrastructure – Sales & Distribution
4. IT Infrastructure – Sales & Distribution • Significant decrease in operational time for article management and maintenance • Data Record Error Rate will reduce ensuring that master data is clean and streamline • Reduce duplication and manual effort in order scheduling • Reduce duplication and man
Slide 28: IT Infrastructure – Demand Planning
4. IT Infrastructure – Demand Planning Fashion Demand Planning – Dealer Contracts, Order & Forecasts Demand Supply Contract- Forecast- MSO- CSO- Yarn- Fabric- Garments- OBD- 1200 PCs 1200 PCs 1200 PCs 1200 PCs 1000 PCs 1200 PCs 1000 PCs 200 PCs 27
Slide 29: Growth Strategies
GROWTH STRATEGIES
Slide 30: Growth Strategies
Growth Strategies Aim to increase share in premium + super premium category 1. High Margin Business Plan to grow through in-licensing or inorganic brand associations as well through organic growth of the Casual wear range • Plan to have presence through 7. Modern 2. Active & Leggings under the brand
Slide 31: Scaling high margin revenue stream
1. Scaling high margin revenue stream Macroman M-Series and Macrowoman W-Series One of the Largest Premium Brand of Direct distribution model with have top notch fabrics, are styled by cutting edge Innerwear, Leisurewear, Sportswear, access to retailers through own designers, available in a variety
Slide 32: Scaling high margin revenue stream
1. Scaling high margin revenue stream • Vision to occupy the white space in the category and consumer mindspace where Premium + Super Premium* the aspirational Indian consumer can show off his style quotient and discerning (Rs. in Cr) taste • Catering to the brand sensitive Indian youth, aspiring to
Slide 33: Reinforcing high growth segments – Athleisure
2. Reinforcing high growth segments – Athleisure “The most recent popular expression in design is "athleisure," one of those made-up terms that are so incredibly strange as to be flawlessly illustrative. That is, fashioners are fixated on garments that fit a to some degree general class of being sui
Slide 34: Reinforcing high growth segments – Womenswear
2. Reinforcing high growth segments – Womenswear Pioneering Premium Leggings, Lingerie and Outerwear brand with a huge range of wardrobe essentials ho seek ease with a fashionable edge Softline aims to make ‘comfortable’ the new fashion statement. ‘Softline’ has always pushed the envelope in terms o
Slide 35: Reinforcing high growth segments – Thermal wear
3. Reinforcing high growth segments – Thermal wear Your ideal companion during winter Exquisite range of thermal wear months. Now, you can stay warm and stylish in winters Available in a variety of exciting colours, trendy styles and all sizes, it is ideal for Thermocot fabric is knitted on hi-tech
Slide 36: Focus on Exports and new markets
4/5. Focus on Exports and new markets UAE | Saudi Arabia | Kuwait | Iraq | Myanmar | Ukraine | Algeria | Indonesia | Nigeria | Congo | USA | Singapore | Russia and many more Russia USA Middle East Strategy is to foray in newer markets by Countries appointing new distributors and building experienced
Slide 37: Simplifying and Optimising distribution
6. Excellence is all about Simplifying and Optimising Wholesale Distribution Channel Direct Distribution Channel Agents Wholesalers Strategically move towards Distributors Direct Distribution channel for its product categories Company’s Semi Wholesalers Retailers Sales Representatives Retailers Reta
Slide 38: Prudent investing to drive business forward
7. Prudent investing to drive business forward MODERN RETAIL TRADE EXCLUSIVE BRAND OUTLETS ONLINE PORTALS Currently have 150+ stores Currently have 11 stores Present on all e-commerce sites Strategy: Strategy: Strategy: › Increase Brand Footprints across all brands › Create small to mid sized Franch
Slide 39: Substantial opportunity to drive growth
Substantial opportunity to drive growth Increasing income levels Increasing penetration of and high spending Growth in penetration electronic media leading power of organized retail to branded products Emergence of purpose- Changing Fashion Growing urbanization specific innerwear (sporty, Trends cas
Slide 40: CSR Activities
CSR Activities Providing Safe Drinking Water More than 400 water filters and coolers installed at public places Donating Blankets to the needy Supporting the Meritorious Students Rewarding the meritorious students, especially the underprivileged children in the society 39
Slide 41: CSR Activities
CSR Activities Promoting overall development of the Girl Child Promoting Girl Child Education 40
Slide 42: CSR Activities
CSR Activities Contribution towards Annamitra Providing Food to the needy children Donation to the Tribal Society Upliftment of all from the Tribal society 41
Slide 43: CSR Activities
CSR Activities Providing Food Ration Providing CoVID Beds Providing Food during CoVID Supporting the Mid-Day Meal Project by ISKCON 42
Slide 44: CSR Activities
CSR Activities Providing education and vocational training to the underprivileged students 43
Slide 45: Historical Financials
HISTORICAL FINANCIALS
Slide 46: Historical Financials - Consolidated
Historical Financials - Consolidated Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,313 257 175 1,120 1,149 1,093 1,015 975 800 155 155 109 661 151 H2 536 605 698 132 139 487 86 114 72 74 99 91 66 62 H2 66 73 54 38 58 36 H2 34 24 H1 479 488 488 488 513 102 66 422 H1 66 66 56 60 60 H1 32 34
Slide 47: Historical Financials - Consolidated
Historical Financials - Consolidated RoCE % RoE % 30.8% 26.8% 23.0% 24.3% 25.1% 20.2% 19.0% 17.9% 18.4% 14.2% 13.6% 11.0% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Debt to Equity Working Capital (Days) Inventory Debtors Creditors 0.39 0.38 175 0.30 121 1
Slide 48: Historical Financials - Standalone
Historical Financials - Standalone Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,261 257 181 1,084 1,090 1,108 1,013 941 763 166 170 155 111 H2 535 600 678 677 141 474 131 95 93 125 100 78 77 80 74 109 H2 65 60 55 H2 34 40 64 35 H1 478 485 412 431 467 498 102 70 H1 66 67 57 70 65 H1 44 37
Slide 49: Historical Financials - Standalone
Historical Financials - Standalone RoCE % RoE % 30.5% 25.6% 25.7% 27.1% 22.9% 25.1% 23.7% 19.8% 19.1% 17.2% 15.5% 13.3% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Mar-21 Debt to Equity Working Capital (Days) Inventory Debtors Creditors 0.39 172 0.30 116 122 0.22
Slide 50: Sharing profits consistently
Sharing profits consistently Payout as a % of 24.5% 30.1% 32.1% 33.2% 30.3% 27.7% 32.2% 38.6% 22.7% Profits Dividend % of FV Mark of gratitude to our shareholders 500 during the pandemic: Special Dividend of Rs. 2/- per equity share 200 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15 FY16 FY17 FY
Slide 51: Thank You
THANK YOU Company: CIN: L17299WB1985PLC038517 Mr. Sumit Khowala sumit.khowala@rupa.co.in Investor Relations Advisors : Mr. Deven Dhruva Mr. Sagar Shroff +91 9833373300 +91 9820519303 deven.dhruva@linkintime.co.in sagar.shroff@linkintime.co.in