Slide 1: Exchange intimation letter: revised investor presentation
RL/SE/23-24/45 May 10, 2023 To The Department of Corporate Services - CRD The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400051 Scrip Code: 500330 Symbol: RAYMOND Dear Sir/Mada
Slide 2: Q4'FY23 Result Presentation
R AY M O N D L I M I T E D Q4’FY23 RESULT PRESENTATION 31st March 2023 1
Slide 3: Raymond Delivers Record Performance in FY23
Raymond Delivers Record Performance in FY23 REVENUE EBITDA NET PROFIT HIGHEST ₹8,337 Cr. ₹1,322 Cr. ₹529 Cr. EVER YoY Growth 50% YoY Growth 103% YoY Growth 31% Margin 15.9% Margin 6.3% A year of multiple achievements in operational 12Mn+ 150+ ₹1,609 Cr. performance driving OPERATING (14% Increase) f
Slide 4: Strong Annual Performance Across Parameters
Strong Annual Performance Across Parameters Revenue EBITDA & Margins (%) Net Profit & Margins (%) 31% YoY Growth 50% YoY (₹ Cr) (₹ Cr) (₹ Cr) 103% YoY Growth Growth 8,337 1,400 15.9% 22.0% 600 6,578 6,348 500 10.0% 1,200 13.9% 17.0% 6.3% 1,000 400 9.3% 1,322 4.1% 5.0% 3,648 800 12.0% 300 3.0% 529 60
Slide 5: Table of Content
Pages 1 Q4 Highlights 5-10 2 Recent Strategic Initiatives 11-14 TABLE OF 3 Financial Highlights 15-18 CONTENT 4 Key Focus Areas 19-27 5 Segment Financials 28-47 6 Current Status and Outlook 48-50 7 Company Overview 51-61 4
Slide 6: Q4FY23 Highlights
mM Raymond Q4FY23 HIGHLIGHTS
Slide 7: Market Update
Market Update DOMESTIC MARKET EXPORTS MARKET • Q4 began with modest consumer • US, UK & Europe: Despite significant sentiments as discretionary spends challenges of inflation, order book moderated in the inflationary remained healthy for formal wear environment. category in garmenting and stable dem
Slide 8: Q4FY23 – A Quarter of Record Achievements
Q4FY23 – A Quarter of Record Achievements Revenue EBITDA & Margins (%) (₹ Cr) (₹ Cr) 17.6% 17.3% 14.0% 10.6% 2,032 2,192 1,837 358 379 1,291 1,407 5 195 197 0.4% Q4 FY19 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY19 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 (₹ Cr) PBT & Margins (%)* 11.9% 11.5% • Revenue grown by 8
Slide 9: Consistently Delivered Strong QoQ Performance in Last 6 Quarters
Consistently Delivered Strong QoQ Performance in Last 6 Quarters Revenue EBITDA & Margins (%) (₹ Cr) (₹ Cr) 17.6% 17.3% 16.2% 16.3% 15.9% 13.4% 2032 2191 2,200 2,192 358 351 379 1,871 1,754 303 358 235 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 (₹
Slide 10: NWC Days
NWC Days Lower by over ~ 46% from peak level (₹ Cr) 2051 1855 1492 1359 1316 1263 1265 1117 1002 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Mar-23 NWC Days 98 53 1. Key initiatives: Strong emphasis on collections and efficient inventory management & related production cycles. 2. NWC day
Slide 11: Net Debt Reduction
Net Debt Reduction by ~ ₹1,700 Cr. from Peak Level (₹ Cr) 2378 1859 1817 1564 1416 1286 1088 932 689 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Mar-23 1. Key Initiatives: Focused revenue growth, cost optimization & effective working capital management generating FCF 2. Net debt reductio
Slide 12: Recent Strategic Initiatives
Recent STRATEGIC INITIATIVES 11
Slide 13: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken STRENGTHENING THE CORE (FY21-23) Reset the Business Established Real Sustainable Annual Effective Working Continued model during Covid Estate Business Cost Savings Capital Management Net Debt Reduction Total booking value: (~₹400 Cr.) Lower by over ~ 46% Lower by ~₹1
Slide 14: Deleveraging Initiative: Selling of FMCG Business
Deleveraging Initiative Selling of FMCG Business Raymond Consumer Care Ltd (RCCL) To be utilized to REPAY EXTERNAL DEBT • Slump sale of FMCG of Raymond business^ with trademarks of Park Avenue & Premium ₹2,825 Cr. Proceeds (FMCG category), KS and Kamasutra to GCPL# RAYMOND GROUP to be NET DEBT FREE
Slide 15: Demerger of Lifestyle Business: Simplification of Group Structure
Demerger of Lifestyle Business: Simplification of Group Structure Focused Investor Opportunities and Better Access to Capital Raymond Ltd RCCL (Lifestyle Company) (Existing listed company) (Branded Consumer Company) • To be predominantly a Real • Branded Textile Estate company • Branded Apparel • Al
Slide 16: Financial Highlights
mM Raymond Financial HIGHLIGHTS 15
Slide 17: Consolidated Results
Consolidated Results Q4FY23 and FY23 Q4 Q3 Q4 Particulars (₹ Cr.) YoY % FY23 FY22 YoY % FY23 FY23 FY22 Net Revenue 2,192 2,200 2,032 8% 8,337 6,348 31% Opex 548 588 506 8% 2,190 1,754 25% EBITDA 379 351 358 6% 1,322 881 50% EBITDA margin % 17.3% 15.9% 17.6% 15.9% 13.9% Depreciation 62 58 59 5% 235 2
Slide 18: Segment Results: FY23
Segment Results:FY23 Post India AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr.) FY23 FY22 YoY% FY23 FY22 YoY% FY23 FY22 Branded Textile 3,364 2,789 21% 702 492 43% 20.9% 17.6% Branded Apparel 1,328 891 49% 144 43 237% 10.8% 4.8% Garmenting 1,100 725 52% 84 47 78% 7.6% 6.5% High Value Cotton Shirt
Slide 19: Segment Results: Q4FY23
Segment Results: Q4FY23 Post India AS 116 Revenue EBITDA EBITDA % Q4 Q4 Q4 Q4 Q4 Q4 Particulars (₹ Cr.) YoY% YoY% FY23 FY22 FY23 FY22 FY23 FY22 Branded Textile 902 886 2% 196 201 (2%) 21.8% 22.7% Branded Apparel 332 279 19% 52 31 72% 15.8% 11.0% Garmenting 305 213 44% 20 7 177% 6.6% 3.4% High Value
Slide 20: Key Focus Areas
mM Raymond Key Focus Areas 19
Slide 21: Key Focus Areas
Key Focus Areas Liquidity Go to Market Digital Imperatives Cost Rationalization Management • Exclusive • Continued focused on • New Product & Range • Focus on working Merchandise for optimizing operating Development capital management Online expenses • Fasten Omni Channel • On time availability of i
Slide 22: Go to Market Initiatives - Suiting
Go to Market Initiatives - Suiting LAMIRACO FASHMODA • Lamiraco, a new brand in PW category with popular price point • A youth-oriented collection with high that offers a unique selection of trendy fabrics in Summery fashion known for its unique bold colors. designs and styling. • Season suitable in
Slide 23: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting Regio Italia Sustainova Vibez 2.0 Linen Stain Resistant 22
Slide 24: Go to Market Initiatives - Apparel
Go to Market Initiatives - Apparel ColorPlus - Chinos Park Avenue – Wrinkle Free Shirt Wrinkle-free Shirts & 100% Cotton 23
Slide 25: Ethnix by Raymond
Ethnix by Raymond Ethnix range for targeted Occasion Smart Ethnix Festive Wedding Collection Collection 24
Slide 26: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Unified B2B Booking Application Digital Engagements Raymondmart.com : • Dynamic Digital Vouchers across Occasions • Unified Booking App for all dealer booking based on shopping preference across Suiting, Shirting, Apparel & Home • Increased participation
Slide 27: Continued Focus on Cost Optimization
Continued Focus on Cost Optimization Q4 Q3 Q4 Particulars (₹ Cr.) FY20 FY22 FY23 FY22 FY23 FY23 Employment Cost 247 262 264 996 880 1024 A & SP 32 65 45 240 122 224 Other expenses* 227 261 252 971 753 956 Total Opex 506 588 562 2,207 1,755 2,204 Total Opex to Revenue % 24.9% 26.7 25.6% 33.6% 27.6% 2
Slide 28: Net Debt Reduction
Net Debt Reduction Led by profitability and NWC optimization Particulars (₹ Cr.) Mar'22 Dec'22 Mar'23 vs Dec'22 vs Mar'22 Decrease in working capital in NWC 1,002 1,316 1,265 (51) 263 Q4FY23 mainly due to reduction in NWC - No. of Days 45 55 53 (2) 8 receivables driven by strong collections Particul
Slide 29: Segment Financials
mM Raymond Segment FINANCIALS 28
Slide 30: Branded Textile
z P _ Branded Textile ™
Slide 31: Branded Textile
Branded Textile Particulars (₹ Cr.) Q4’FY23 Q4’FY22 % Var. FY23 FY22 % Var. Net Sales 902 886 2% 3,364 2,789 21% EBITDA 196 201 (2%) 702 492 43% EBITDA margin 21.8% 22.7% 20.9% 17.6% • Branded Textile Segment Sales Performance: • Secondary sales were moderate during the first half of the quarter, ho
Slide 32: Branded Apparel
BrandedApparel Branded Apparel 31
Slide 33: Branded Apparel
Branded Apparel Particulars (₹ Cr.) Q4’FY23 Q4’FY22 % Var. FY23 FY22 % Var. Net Sales 332 279 19% 1,328 891 49% EBITDA 52 31 72% 144 43 237% EBITDA margin 15.8% 11.0% 10.8% 4.8% • Branded Apparel segment recorded a sales growth of 19% in Q4’F23 Vs PY • Growth was driven by increased customer convers
Slide 34: Retail Network
Raymond 3 SB RETAIL NETWORK i _ ee
Slide 35: Exclusive Retail Network
Exclusive Retail Network 2.36 mn 2.34 mn 2.30 mn 2.26 mn sq ft sq ft sq ft sq ft 1409 1400 1376 1351 316 296 282 261 40 37 35 35 EBO MTM 1053 1067 1059 1055 TRS Mar'23 Dec'22 Sep'22 Mar'22 • 58 net new stores added during the year leading to network of 1,400+ store in TRS,EBOs and MTM • TRS network
Slide 36: Garmenting
Garmenting Garmenting 35
Slide 37: Garmenting
Garmenting Particulars (₹ Cr.) Q4FY23 Q4FY22 % Var. FY23 FY22 % Var. Net Sales 305 213 44% 1,100 725 52% EBITDA 20 7 177% 84 47 78% EBITDA margin 6.6% 3.4% 7.6% 6.5% • Garmenting segment reported a strong sales growth of 44% in Q4F23 vs PY • Healthy momentum in orderbook maintained with China+1 adop
Slide 38: High Value Cotton Shirting
High Value Cotton Shirting 37
Slide 39: High Value Cotton Shirting
High Value Cotton Shirting Particulars (₹ Cr.) Q4FY23 Q4FY22 % Var. FY23 FY22 % Var. Net Sales 187 175 7% 762 572 33% EBITDA 20 15 30% 85 60 42% EBITDA margin 10.4% 8.6% 11.1% 10.5% • Segment sales grew by 7% in Q4’FY23 vs PY, led by demand for our cotton & linen fabric offerings by our B2B customer
Slide 40: Engineering
Engineering 39
Slide 41: Engineering Business
Engineering Business Particulars (₹ Cr.) Q4FY23 Q4FY22 % Var. FY23 FY22 % Var. Net Sales 219 205 7% 864 812 6% EBITDA 33 34 (4%) 122 123 (1%) EBITDA margin 14.9% 16.6% 14.1% 15.1% • On aggregate basis, the sales grew by 7% to ₹219 Cr. In Q4FY23 as compared to ₹205 Cr. in previous year • Sales perfor
Slide 42: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond 41
Slide 43: Booking Update – KPI's
Booking Update – KPI’s 10 towers with RERA Till Q4 Project Particulars FY23 approved carpet area FY22 FY23 Till Date % ~1.7 Mn sq.ft. No of Bookings 1,909 114 542 2,451 UNIT SOLD RERA Carpet Area* 1.01 0.07 0.31 1.32 Total Units Planned: 3,103 Value of Bookings (Crs.) 1,887 148 663 2,550 ~80% (2BHK:
Slide 44: Ten X Habitat
Ten X Habitat 3 towers delivered 2 years ahead of RERA Timeline Towers 1, 2, 3, 4 & 5 Towers 6, 7, 8, 9 & 10 Central Amenities Building Elevation Reference Image Reference Image 43
Slide 45: The Address of GS
The Address of GS Construction in full swing Building Elevation Tower A – 2nd floor slab completed Tower B – Still floor slab completed Reference Image 44
Slide 46: Ten X ERA
Ten X ERA New Project Building Elevation Tower B - Excavation works in progress Tower C - Excavation works in progress Reference Image 45
Slide 47: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 46
Slide 48: Real Estate Business
Real Estate Business Particulars (₹ Cr.) Q4FY23 Q4FY22 % Var. FY23 FY22 % Var. Net Sales 289 321 (10%) 1,115 707 58% EBITDA 70 56 25% 287 147 95% EBITDA margin 24.3% 17.5% 25.7% 20.8% • Revenue recognition based on percentage completion method as per Ind AS 115 • Construction momentum maintained in
Slide 49: Current Status & Outlook
mM Raymond Current Status & OUTLOOK 48
Slide 50: Current Status of Operations & Outlook
Current Status of Operations & Outlook Company expects to be on profitable growth momentum Domestic Market: • Resilient consumer demand however, K Curve led recovery witnessed, Uptick is expected driven by summer wedding season • Continued focus on innovation and new offerings with increased focus o
Slide 51: Chairman & Managing Director on Q4FY23 performance
Chairman & Managing Director on Q4FY23 performance FY23 has been an year of exponential growth, as we doubled our net profit compared to previous year with strong growth in revenues delivered across all businesses. As we have charted out a clear roadmap for sustained growth, the recent corporate act
Slide 52: Company Overview
mM Raymond Company OVE RVI EW 51
Slide 53: 97+ Year Old Diversified Group
97+ Year Old Diversified Group With strong presence across sectors SUITING SHIRTING APPAREL RETAIL PRESENCE ~65% market share Largest branded player Amongst top 3 Presence in 600+ in worsted suiting in shirting fabrics menswear players cities with 1400+ Stores GARMENTING RealESTATE REAL Estate ENGIN
Slide 54: Group Values
Group Values TRUST QUALITY EXCELLENCE • One of India’s most trusted textile • Recognized for its innovation • Leadership in different product & apparel brands with near 100% and high-quality product offerings categories awareness • Loyal consumer base spanning • Crafting world-class offerings • Stro
Slide 55: Raymond Group Led by
Raymond Group Led by ATUL SINGH S.L. POKHARNA RAVI UPPAL Executive Vice Chairman (Designate) Director Non-Executive Chairman Ex – Coca Cola, Colgate - Palmolive Raymond Ltd. JK Files & Engineering Ltd & RPAL GAUTAM HARI SINGHANIA Ex – L&T, JSW Currently – CMD of Steel Infra Chairman & Managing Direc
Slide 56: Raymond Management Team
Raymond Management Team ATUL SINGH S.L. POKHARNA AMIT AGGARWAL K.A. NARAYAN Executive Vice Chairman Director Group CFO President – HR (Designate) Raymond Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Colgate - Essar Group Palmolive BALASUBRAMANIAN V JATIN KHANNA SUNIL KATARIA HARMOHAN SAH
Slide 57: Manufacturing Excellence
Manufacturing Excellence Fabric & Garmenting SUITING SHIRTING DENIM GARMENTING Mfg. World’s Finest Fabric Mfg. World’s Finest Fabric Mfg. of High Quality Denim End-to-End Integrated 250s – Worsted Suiting 340s – Cotton Fabric Fabrics & Garments to Top Global Garment Mfg. of High 150 Lea Linen Fabric
Slide 58: Manufacturing Excellence - Engineering & Real Estate
Manufacturing Excellence - Engineering & Real Estate Engineering Real Estate • #2 Global supplier of Steel Files a. Fast paced construction activity • One of the leading global players in Ring Gears b. Acceptance of design a. End to end manufacturing solutions provider for files & drills b. Sole man
Slide 59: Domestic presence
Domestic presence One of the largest asset-light distribution network in multiple businesses Branded Branded 8,000+ 20,000+ Textiles Apparel POS POS 1,409 stores Retail ~1.5 lakh (2.36 Mn sq. ft) Engineering POS Pan-India network in over 600 towns & cities * Legends represent indicative store locati
Slide 60: Our Brands
Our Brands Home grown portfolio of renowned brands with high recall value BRANDED TEXTILE BRANDED APPAREL REAL ESTATE ENGINEERING Presence in Africa & Asia through multiple sub- brands 59
Slide 61: International Presence
International Presence Global Footprint in 90+ Countries through diversified businesses North Asia INDIA America Europe Dubai Ethiopia South America Africa Australia ~45 retail stores in overseas location Overseas Store Location Manufacturing Location * Legends represent indicative store locations;
Slide 62: Raymond Group at a Glance
Raymond Group at a Glance Segments Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel 49% Garmenting Everblue Apparel Silver Spark (100%) Apparel (100%) Ethiopia *(100%) High Value Cotton Shirting Public Raymond Luxury Cotton (75.7%) Engineering JK Files & Engi
Slide 63: 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 inte
Slide 64: Thank You
+12 gir Raymond THANK YOU [