Renaissance Global Limited · NSE:RGL
Renaissance Global — Q3 FY2024 Earnings Presentation
34 slides from Renaissance Global's earnings presentation, February 2024
Slide 1: Results Presentation Q3 & 9M FY24
Results Presentation Q3 & 9M FY24 and many more…
Slide 2: 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 3: Content
Content Q3 & 9M FY24 Company Annexure Results Overview Overview 4 15 28 3
Slide 4: Q3 & 9M FY24 Results Overview
iO Renaissance Global Limited Q3 & 9M FY24 Results Overview
Slide 5: Q3 & 9M FY24 Financial Summary
Q3 & 9M FY24 Financial Summary Revenue (Rs. Crore) EBITDA (Rs. Crore) EBITDA 6.9% 8.2% 7.5% 7.8% 9% 1,737 10% Margin (%) 1,571 130 122 724 655 8% 6% 50 54 Q3 FY23 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q3 FY24 9M FY23 9M FY24 PAT (Rs. Crore) EPS (Rs.) PAT 3.9% 4.2% 3.9% 3.3% Margin (%) 7 6 68 23%
Slide 6: Management Message
Management Message Commenting on the performance for Q3 & 9M FY24, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said: “We have reported a resilient performance during the quarter marked by increased margins. Revenue growth in our strategically important Branded segment has he
Slide 7: Key Developments
Key Developments Launch of Wonder Fine Jewelry collection under license agreement with Marvel, Disney Jewels and Star Wars This quarter we have launched Wonder Fine Jewelry, which is our umbrella brand for Marvel, Disney Jewels and Star Wars at one of our retail partners. Initial sales during th
Slide 8: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q3 FY24, the direct-to-consumer business posted revenues of ₹94.9 crore compared to ₹88.2 crore in Q3 FY23, up by 7.5%. During the quarter, our focus was to increase the margins for this segment, we expect to see an acceleration in the revenue in
Slide 9: Leveraging Growing Popularity of Lab Grown Diamonds in D2C
Strategically leveraging the growing popularity of Lab Grown Diamonds (LGD) in the D2C vertical 9M FY24 Globally, LGDs have gained widespread D2C 49% 51% traction, especially in the segments of engagement rings and solitaire jewellery LGD B2B 4% 96% Currently, ~50% of Renaissance’s direct-to- Na
Slide 10: Q3 & 9M FY24 Operational Summary
Q3 & 9M FY24 Operational Summary Revenue Break-up Q3 Q3 9M 9M Revenue Mix (%) Shift % Shift % Plain Gold Customer Brands Branded Jewellery (Rs. Cr.) FY24 FY23 FY24 FY23 Branded Jewellery 272.1 234.2 16.2% 513.3 457.4 12.2% 32% 33% 26% 42% - B2B 177.3 146.0 21.4% 309.3 285.1 8.5% - D2C 94.9 88.2 7.5%
Slide 11: Q3 FY24: Financial & Operational Discussions (Y-o-Y)
Q3 FY24: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 657.9 crore from Rs. 725.0 crore in Q3FY23 Branded Jewellery business revenues up 16.2% YoY to Rs. 272.1 crore supported by a steady flow of orders from retail partners and revenues from D2C business D2C busin
Slide 12: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) Strong FCF generation 194 159 149 113 66 Branded Jewellery - a low capital- (0) intensive business FY20 FY21 FY22 TTM December FY23 TTM December Operating leverage & minimal capex 2022 2023 spends to further improve FCF gener
Slide 13: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52 0.29 0.30 0.30 0.28 665 0.22 699 924 984 1,117 843 1,026 503 364 242 280 291 223 311 FY19 FY20 FY21 FY22 As on FY23 As on December December Highly disciplined balance sheet 2022 2023 approach Working Ca
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q3 FY24 Q3 FY23 9M FY24 9M FY23 Change (%) Change (%) Revenues from Operations 655.5 723.9 -9.5% 1,570.6 1,737.1 -9.6% Other Income 2.4 1.1 125.7% 6.8 4.2 61.3% Total Income 657.9 725.0 -9.3% 1,577.4 1,741.3 -9.4% COGS 461.6 55
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crore) Dec 2023 Dec 2022 Particulars (Rs. Crore) Dec 2023 Dec 2022 Shareholder's Funds 1,117.3 984.2 Non-Current Assets Equity Share Capital 19.2 18.9 Fixed Assets – Tangible & 259.1 258.0 Intangible [2] Reserves & Surplus 1,098.2 964.3 CWIP & Intangibles
Slide 16: 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 17: Company Overview
iO Renaissance Global Limited Company Overview
Slide 18: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 5 6 660 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 19: 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 37% 31% Increased presence in high-potential key global markets 25% Renaissance’s 21% Branded Jewellery Better pricing on the back of brande
Slide 20: 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 21: 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 22: '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 23: 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 24: 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 25: 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 26: 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 27: 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 28: ESG Initiatives
iO Renaissance Global Limited ESG Initiatives
Slide 29: 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 30: Annexure
») Renaissance Global Limited Annexure
Slide 31: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 69.6% Foreign Institutions (FPI, FII & 4.1% NRI) Individual - >1% 3.7% Others 22.7% *Holding as on 31st December 2023 Key Market Statistics As on 29-December-2023 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 103.10 Market Cap
Slide 32: Conference Call Details
Conference Call Details Q3 & 9M FY2024 Earnings Conference Call Time • 2:30 p.m. IST on Wednesday, February 14, 2024 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 33: 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 34: Thank You
CO Renaissance Global Limited Thank You