Renaissance Global Limited · NSE:RGL
Renaissance Global — Q1 FY2021 Earnings Presentation
20 slides from Renaissance Global's earnings presentation, Aug 14, 2020
Slide 1: Cover letter to stock exchanges: Performance Highlights for Q1 FY21
Ref. No.: RGL/S&L/2020/86 August 14, 2020 Bombay Stock Exchange 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, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Performan
Slide 2: Business Disruption due to Covid-19: Revenues at ₹1,856 mn
Business Disruption due to Covid-19 Revenues at ₹ 1,856 mn; de-growth of 69% Mumbai, August 14, 2020: Renaissance Global Limited (RGL), India’s largest exporter of branded jewellery and supplier of licensed brands to leading global retailers, reported its unaudited and reviewed results for the quart
Slide 3: IRASVA launch, Direct-to-Consumer Business and FY21 Outlook
The Company launched brand “IRASVA” in the Indian market through a joint venture with Bennett, Coleman and Company Limited. We plan to open 2 new stores in Mumbai during the current financial year. The roll out is delayed due to Covid-19 pandemic. Growth through Direct-to-Consumer Business Our d
Slide 4: About Renaissance Global Limited
About Renaissance Global Limited: Renaissance Global Limited is a highly differentiated luxury lifestyle products company. It is the largest exporter of branded jewellery and supplier of licensed branded jewellery through its licensing agreement to sell “Enchanted Disney Fine Jewellery” and “Heart o
Slide 5: Q1 FY21 Financial Overview
RENAISSANCE GLOBAL LIMITED Q1 FY21 FINANCIAL OVERVIEW 1
Slide 6: Highlights for Q1 FY21
Highlights for Q1 FY21 Disciplined working capital management amidst business disruption due to Covid-19 • Net Debt as of June 2020 was ₹ 3,404 mn. v/s Jun 2019 Net Debt of ₹ 4,050 mn; reduction of ₹ 646 mn. • Strong liquidity position with cash and bank balances and short term investments of • ₹ 1,
Slide 7: Highlights for Q1 FY21: Strengthening the Balance Sheet
Highlights for Q1 FY21 Strengthening the Balance Sheet Net Debt which was rising post the acquisition of Jay Gems has been brought under control due to a focused approach on working capital reduction • Net Debt to Equity ratio as of June 2020 was 0.46 v/s Jun 2019 Net Debt to Equity ratio of 0.60. •
Slide 8: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business • Our direct to consumer business through our website has shown robust growth during the year (https://www.enchantedfinejewelry.com/) Direct to Consumer Sales Q1 FY21 • Recently, we also launched a website catering to the Lab 30.0 Grown Diamonds jewellery sp
Slide 9: FY21 Outlook
FY21 Outlook • We believe the first two quarters of FY21 will be extremely soft due to loss of retail sales because of store closures, lower discretionary spends and overhang of inventory. We expect things to slowly pick up in the third quarter of FY21 and to normalise by the fourth quarter of FY21
Slide 10: Impact of Covid-19 on Q1 FY21 Sales and Expenses
Impact of Covid-19 on Q1 FY21 Sales and Expenses Particulars (In ₹ Mn) Q1 FY21 Q1 FY20 YoY % Revenue From Operations 1,855.6 5,978.4 -69% Total Income 1,896.7 5,981.9 -68% Expenses 2,144.2 5,799.1 -63% Cost of Goods Sold 1,648.3 4,940.4 -67% Employee Benefits 135.4 234.4 -42% Finance Costs 61.4 79.7
Slide 11: Long Runway for growth over 5 years
Long Runway for growth over 5 years • Verigold China has signed a contract to launch Enchanted Disney Fine Jewelry with Lao Feng Xiang(LFX), the second largest retailer in China with 3700 stores. LFX is a leading retail jewellery brand in China, with 166 years of continuous operations and annual rev
Slide 12: Q1 FY21: Key Highlights
Q1 FY21 : Key Highlights Q1 FY21 vs. Q1 FY20 In ₹ Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 5,981 317 170 -68% 1,897 -178 Q1 FY20 Q1 FY21 -111 FY20 vs. FY19 Total Income EBITDA & EBITDA Margin PAT & PAT Margin 1,708 25,929 25,101 922 1,249 6.8% 783 -3% 3
Slide 13: Slowdown in both the Studded and Gold Jewellery business due to Covid-19
Slowdown in both the Studded and Gold Jewellery business due to Covid-19 In ₹ Mn Q1 FY21 Q1 FY20 YoY % FY20 FY19 YoY% Studded 1,618 4,034 -60% 18,544 19,108 -3% Gold 238 1,944 -88% 6,474 6,798 -5% Total Revenue 1,856 5,978 -69% 25,018 25,906 -3% 4,500 4,000 4,034 3,500 3,000 2,500 Studded 2,000 Gold
Slide 14: Q1 FY21: Segment Analysis
Q1 FY21 : Segment Analysis Q1 FY21 vs. Q1 FY20 Studded & Plain Gold Jewellery Geographical Mix Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 13% 6% 27% 33% 39% 55% 51% 67% 22% 87% Studded Jewellery Plain Gold Jewellery N. America Middle East Others FY20 vs. FY19 FY19 FY20 FY19 FY20 12% 27% 26% 8% 35% 57% 30% 58%
Slide 15: Improving Debt-Equity Ratio due to better inventory management
Improving Debt-Equity Ratio due to better inventory management Leverage (₹ Mn) Working Capital Analysis 187 154 157 135 6,647 6,785 6,992 7,460 118 5,578 115 144 119 147 132 5,033 4,050 3,641 3,404 57 53 59 65 2,857 41 -54 -43 -38 -21 -25 FY18 FY19 Jun-19 FY20 Jun-20 FY18 FY19 Jun-19 FY20 Jun-20 Net
Slide 16: Managing Inventory – Important Part of Working Capital Management
Managing Inventory – Important Part of Working Capital Management Inventory Trend 12,000 11,430 10,859 10,161 9,938 10,000 8,423 8,421 8,183 8,000 7,233 Rs. In Million 6,242 5,915 6,000 4,000 2,000 - Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 12
Slide 17: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In ₹ Mn) Q1 FY21 Q1 FY20 YoY % FY20 FY19 YoY % Revenue From Operations 1,855.6 5,978.4 -69.0% 25,018.5 25,906.3 -3.4% Other Income 41.1 3.5 83.1 22.7 Total Income 1,896.7 5,981.9 -68.3% 25,101.6 25,929.0 -3.2% COGS 1,648.3 4,940.4 -66.6% 20,204.8 21,
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In ₹ Mn) Jun-20 Jun-19 Particulars (In ₹ Mn) Jun-20 Jun-19 Shareholder's Funds 7,460.4 6,785.0 Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 736.9 553.5 Reserves & Surplus 7,273.6 6,598.1 CWIP & Intangibles under deve
Slide 19: 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 20: Thank You
RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to DICKENSON SEAGULL IR Aakash Mehta Renaissance Global Limited Renaissance Global Limited Email: Aakash.Mehta@dickensonworld.com Abhijit S. Karandikar G. M. Walavalkar Mob: 098706 79263 Compliance Officer Vikash Verma Manager