Raymond Limited · NSE:RAYMOND
Raymond — Q4 FY2020 Earnings Presentation
66 slides from Raymond's earnings presentation, Jun 29, 2020
Slide 1: Cover letter to stock exchanges
RL/SE/AC/20-21/20 June 29, 2020 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 - 400 051 Fax No. 022-22721919 Fax No. (022) 26598120
Slide 2: Press Release: Net profit for the year at Rs 202 crores
CORPORATE OFFICE NEW HIND HOUSE, NAROTTAM MORARJEE MARG, BALLARD ESTATE, MUMBAI 400 001, INDIA Press Release For Immediate Dissemination NET PROFIT FOR THE YEAR AT RS 202 CRORES, UP 20% VS PREVIOUS YEAR Mumbai, 29th June, 2020: Raymond Limited today announced its audited financial results for the ye
Slide 3: Impact on performance due to Covid-19 and stock correction
Impact on performance due to: a) Covid-19 impact on 4QFY20 The primary sale of March was impacted especially for the wedding season of April to June 2020. The sales for the good wedding season was completely wiped off All retail stores in our network remained shut due to lockdown in March Expo
Slide 4: Key highlights of the year
Key highlights of the year FY20: A year of corporate actions in-line with stated strategy of deleveraging, value unlocking and asset monetization 1. De-leveraging through land sale in Oct 19: ~20 acres of land in associate company sold and entire net proceeds of Rs. 350 cr. infused into Raymond Ltd
Slide 5: Segment performance and current status of operations
High Value Cotton Shirting Fabric Segment sales at Rs. 119 cr. & EBITDA at Rs. 8 cr. Underlying sales higher vs PY by 4% led by higher domestic fabric sale. Underlying EBITDA margin at 14.9% as compared to 12.9% in previous year, increased mainly due to improved product mix and operating efficiencie
Slide 6: Cost Restructuring
Cost Restructuring The organization is challenging all costs while restructuring to ensure efficiencies. In line with the prevailing market conditions and unprecedented challenges, the company has undertaken the process of cost rationalisation & various cost control measures related to manpower, s
Slide 7: Result Presentation Q4FY20
Result Presentation Q4FY20 Quarter ended 31st March, 2020
Slide 8: 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 in
Slide 9: Table of Contents
Table of Contents Company Overview 4 Corporate Actions 10 Covid Impact 12 Our Response to Covid 14 Branded Apparel Stock Correction Update 18 Financial Highlights 20 Performance of Segments 28 IND AS 116 Impact 52 Annexures 55 3
Slide 10: Company Overview
sh Company Overview
Slide 11: Raymond Group: Introduction
Raymond Group: Introduction SUITING SHIRTING APPAREL RETAIL PRESENCE GARMENTING ENGINEERING REAL ESTATE DENIM FMCG A diversified group with interests in Textile & Apparel sectors as well as presence across diverse segments such as Real Estate, FMCG, Engineering in national and international markets
Slide 12: Raymond: A Group with Strong Leadership Position
Raymond: A Group with Strong Leadership Position No 1 player in 5th largest Suit 1st organised retailer Manufacturer of Near 100% worsted suiting manufacturer in in India world’s finest fabric consumer awareness fabrics in India the World One of the world’s 3rd largest player One of the largest Only
Slide 13: Raymond Group at a Glance
Raymond Group at a Glance Branded Textile Promoter Made to Measure Suiting B2C Shirting Group (MTM) Branded Apparel Raymond Apparel (100%) 48% Garmenting Dress Masters Suit Celebration Everblue Apparel Silver Spark (100%) Apparel (100%) (100%) Apparel (100%) High Value Cotton Ethiopia *(100%) Shirti
Slide 14: Raymond Group Leadership Team
Raymond Group Leadership Team led by Gautam Hari Singhania Chairman and Managing Director Raymond Limited Nirvik Singh Rajeev Bakshi Ravi Uppal Non Executive Chairman Non Executive Chairman Non Executive Chairman Raymond Apparel Limited JK Helene Curtis Limited Ring Plus Aqua Limited Current – COO o
Slide 15: Management Team
Management Team Sanjay Bahl Vipin Agarwal S L Pokharna K A Narayan Group CFO President – President – President – Ex- Landmark, HUL Corporate Commercial Human Resources Ex – Deepak Fertilizers, 36 years of Ex- Wockhardt Jindal Stainless Steel experience Ganesh Kumar K Mukund Raj Balasubramanian V Arv
Slide 16: Corporate Action
sh Corporate Action 10
Slide 17: FY20 – Landmark year
FY20 – Landmark year Deleveraging ► Despite liquidity issues, sold ~20 acres of land of JKIT to Virtuous Retail ► Net proceeds of Rs. 350 Cr infused into the Company in the form of Equity & Compulsory Convertible Preference Shares (CCPS) - CCPS converted into Equity in April'20 ► Proceeds used for d
Slide 18: COVID-19 Impact
12 COVID-19 Impact sh
Slide 19: COVID Impact
COVID Impact March Company was expecting a good wedding season driven by higher primary sales, due to higher number of wedding dates starting April to June Secondary channels were broadly in-line with the expectation till beginning of March COVID Impact Initial impact was felt in Tier 1 cities
Slide 20: Our Response to COVID-19
14 Our Response to COVID-19 sh
Slide 21: Current Operational Status
Current Operational Status Deploying stringent health protocols and safe distancing measures in coherence with government directives Retail Stores • The gradual reopening began from Lockdown 3.0 onwards, wherein government permitted sale of certain nonessential items in specified geographies • Curre
Slide 22: Reset Business
Reset Business f R Raymond Stores 2.0 Employees safety * Create Safe Shopping Experience * Adopt Work from homeculture * Adhere safety guidelines at stores + Sanitized& disinfected offices & plants * Contact-less payments * Healthcheckcompulsory at office & plant * Increase digital Customers + Embar
Slide 23: New Business Opportunity
New Business Opportunity Raymond Care initiative Personal Protective Equipment (PPE) PPE Suit Masks portfolio Hand Sanitizer: 100ml, 200 ml, 5 ltr Latex Gloves Hand Wash
Slide 24: Branded Apparel Stock Correction Update
Branded Apparel Stock Correction Update 18
Slide 25: Planned Correction in Branded Apparel Trade channel
Planned Correction in Branded Apparel Trade channel Overall slowdown in consumption and liquidity pressure in last few quarters impacted secondary & tertiary sales resulting in significant increase in receivables in 3Q MBO topline growth Planned correction impacting • Topline ~ 209 Cr (Q4 - ~122 Cr)
Slide 26: Financial Highlights
sh Financial Highlights 20
Slide 27: Underlying Results for Q4FY20 and FY20
Underlying Results for Q4FY20 and FY20 • We are presenting both Actual and Underlying results • Underlying results exclude the impact of COVID-19. Branded Apparel Segment also excludes the impact of Stock Correction • COVID-19 impact for each segment is based on management estimates which are only i
Slide 28: Consolidated Results – Q4 & FY20
Consolidated Results – Q4 & FY20 Pre Ind-AS 116 Particulars (INR Cr) Q4 FY20 Q4 FY19 Y-o-Y% FY20 FY19 Y-o-Y% Net Revenue 1,288 1,837 -30% 6,571 6,708 -2% Net Sales 1,279 1,809 -29% 6,482 6,582 -2% EBITDA -40 195 NA 440 702 -37% EBITDA margin -3.1% 10.6% 6.7% 10.5% -360 bps PBT before exceptions -152
Slide 29: Consolidated Results – Q4FY20 and Full year FY20
Consolidated Results – Q4FY20 Pre Ind-AS 116 Revenue EBITDA EBITDA Particulars (INR Cr) Amount Y-o-Y% Amount Y-o-Y% Margin % Reported 1,288 -30% -40 NA -3.1% Covid Impact 414 134 Underlying 1,702 -7% 93 -53% 5.4% Stock Correction impact 122 54 Excluding Apparel Stock Correction 1,824 -1% 148 -24% 8.
Slide 30: Segment Results – Q4 FY20
Segment Results – Q4 FY20 Pre Ind-As 116 Revenue EBITDA EBITDA Margin % Q4 U^ Q4 Q4 Q4 Q4 Growth Q4 Q4 Q4 Q4 Particulars (INR Cr) FY20 Growth FY20 FY20 FY20 FY19 (YoY%) FY20 FY19 FY20 FY19 U^ (YoY%) U^ U^ Branded Textile 582 817 832 -30% -2% 87 164 132 15.0% 20.0% 15.9% Branded Apparel 289 495 489 -
Slide 31: Segment Results – FY20
Segment Results – FY20 Pre Ind-As 116 Revenue EBITDA EBITDA Margin % U^ FY20 Growth FY20 FY20 Particulars (INR Cr) FY20 FY19 Growth FY20 FY19 FY20 FY19 U^ (YoY%) U^ U^ (YoY%) Branded Textile 2917 3,152 3,153 -7% 0% 394 470 435 13.5% 14.9% 13.8% Branded Apparel 1619 1,911 1,647 -2% 16% -79 52 61 -4.9
Slide 32: Balance Sheet & Performance Indicators
Balance Sheet & Performance Indicators (Pre Ind-AS 116) Particulars (INR Cr) Mar’20 Dec’19 Mar'19 Net Worth 2,537 2,637 2,037 Net Debt 1,857 1,946 2,066 Operational Cash Flow (quarter) 179 180 316 Free Cash Flow (quarter) 80 81 133 Key Ratios as on Mar’20 Dec’19 Mar'19 Net Debt / Equity 0.7 0.7 1.0
Slide 33: Full Year FY20 Cashflow
Full Year - FY20 Cashflow (Post Ind AS 116) Particulars (₹Cr) FY20 Operating Profit less Taxes & Exc. Items 546 Working Capital Changes -173 Cash Flow from operating activities (a) 373 Net purchase of Fixed Assets -193 Movement in Investments 13 Interest & dividend income 60 Cash Flow from Investing
Slide 34: Performance of Segments
sh Performance of Segments 28
Slide 35: Branded Textile
— i Branded Textile / = - mn
Slide 36: Branded Textile – Q4 FY20
Branded Textile Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 582 817 832 -30% -2% EBITDA 87 164 132 -34% 24% EBITDA margin 15.0% 20.0% 15.9% -93 bps 413 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 98 Cr and EBITDA Margin is 16.8% • Underly
Slide 37: Branded Textile – FY20
Branded Textile FY20 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) FY19 Reported Underlying Reported Underlying Net Sales 2,917 3,152 3,153 -7% 0% EBITDA 394 470 435 -9% 8% EBITDA margin 13.5% 14.9% 13.8% -30 bps 111 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 435 Cr and EBITDA Margin is 14.9% • Underling to
Slide 38: Branded Apparel
Branded Apparel
Slide 39: Branded Apparel – Q4 FY20
Branded Apparel Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 289 495 489 -41% 1% EBITDA -116 -38 32 NA NA EBITDA margin -40.2% -7.6% 6.5% Post Ind-AS; EBITDA Loss for Q4FY20 is Rs 88 Cr and EBITDA Margin is -30.5% • Topline & profitabil
Slide 40: Branded Apparel – FY20
Branded Apparel FY20 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) FY19 Reported Underlying Reported Underlying Net Sales 1619 1911 1647 -2% 16% EBITDA -79 52 61 -229% -14% EBITDA margin -4.9% 2.7% 3.7% -856 bps 44 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 29 Cr and EBITDA Margin is 1.8% • Underlying Topli
Slide 41: Retail Network
Retail Network
Slide 42: Exclusive Retail Network additions
Exclusive Retail Network 62 additions 1 31 2.4 mn 30 2.5 mn 1 1 6 sq ft sq ft 8 closures 1,638 1,584 436 EBO 411 MTM * 67 67 TRS 1,106 1,135 Dec 19 TRS MTM EBO TRS MTM EBO Mar 20 • During the quarter Added 62 new stores and closed 8 stores 94% of stores added on Franchisee basis in line with our
Slide 43: Strong Distribution Network
Strong Distribution Network Branded Textile 5 • 20,000+ points of sale across 55 5 600+ cities and towns 15 31 • 188+ Wholesalers 52 64 1 • 1,360+ MBOs 2 • Across Raymond Shop (TRS) - 71 174 12 1 Tier I to VI towns 80 1 94 75 31 85 1 Branded Apparel 21 • Presence in over 500 cities and 23 towns 242
Slide 44: Garmenting
Garmenting
Slide 45: Garmenting – Q4 FY20
Garmenting Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 181 211 212 -14% 0% EBITDA 6 14 8 -16% 84% EBITDA Margin 3.5% 6.6% 3.6% -6 bps 303 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 7 Cr and EBITDA Margin is 4.0% • Q4FY20: Underlying topl
Slide 46: Garmenting – FY20
Garmenting FY20 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) FY19 Reported Underlying Reported Underlying Net Sales 843 873 779 8% 12% EBITDA 30 37 40 -26% -7% EBITDA Margin 3.5% 4.3% 5.1% -164 bps -89 bps Post Ind-AS; EBITDA for FY20 is Rs. 33 Cr and EBITDA Margin is 3.9% • FY20: Underlying topline grew
Slide 47: High Value Cotton Shirting
High Value Cotton Shirting
Slide 48: High Value Cotton Shirting
High Value Cotton Shirting Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 119 162 156 -24% 4% EBITDA 8 24 20 -59% 20% EBITDA Margin 7.0% 14.9% 12.9% -589 bps 199 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 8 Cr and EBITDA Margin is 7.0% FY20
Slide 49: Tools & Hardware, Auto Components
Tools & Hardware 43 Auto Components
Slide 50: Tools and Hardware
Tools and Hardware Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 79 98 102 -23% -4% EBITDA 3 10 8 -64% 23% EBITDA Margin 3.8% 10.4% 8.2% -435 bps 227 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 4 Cr and EBITDA Margin is 4.6% FY20 FY20 Y-o-Y
Slide 51: Auto Components
Auto Components Q4 FY20 Q4 FY20 Y-o-Y% Y-o-Y% Particulars (INR Cr) Q4 FY19 Reported Underlying Reported Underlying Net Sales 47 50 68 -31% -26% EBITDA 8 9 15 -48% -41% EBITDA Margin 16.4% 17.4% 21.9% -549 bps -448 bps Post Ind-AS; EBITDA for Q4FY20 is Rs 8 Cr and EBITDA Margin is 16.4% FY20 FY20 Y-o
Slide 52: Raymond Realty
46 raymono REALTY h Raymond
Slide 53: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Overall 20 acres of residential development Project − Phase 1: ~14 acre of development Phase 1 Total 10 towers with ~2.7 mn sq.ft of saleable area Project Details Total units available for sale: 2,960 | 2BHK: 2,330; 1BHK: 630
Slide 54: Construction Update
Construction Update Tower - A Tower - C Tower - B Tower - D • 3 slabs completed for 3 towers (Tower A, B and C) • Foundations are in progress for Tower D
Slide 55: Financial Update – KPIs
Financial Update – KPI’s KPI's FY19 FY20 Till Mar'20 Bookings: No. of bookings 238 712 950 Area (mn sq. ft.) 0.2 0.6 0.8 Value of Bookings (Rs. Cr) 243 717 960 Customers Collection (Rs. Cr) 7 214 221 Capital Employed (Rs. Cr)* 185 227 412 *excludes TDR which increased from Rs. 50 cr to Rs. 88 cr in
Slide 56: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system
Slide 57: Co-Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant
Slide 58: Ind-AS 116 Impact
sh Ind-As 116 Impact 52
Slide 59: Q4 FY20 - IND AS 116 Lease Impact Summary
Q4 FY20 - IND AS 116 – Lease Impact Summary Particulars (INR Cr) Pre IND AS 116 Impact Post IND AS 116 Net Revenue 1,288 3 1,291 Net Sales 1,279 0 1,279 EBITDA -40 45 5 EBITDA margin -3.1% 3.5% 0.4% Depreciation 52 33 85 EBIT -92 12 -80 Interest Cost 60 13 72 PBT before exceptions -152 0 -152 PBT ma
Slide 60: FY20 - IND AS 116 Lease Impact Summary
FY20 - IND AS 116 – Lease Impact Summary Particulars (INR Cr) Pre IND AS 116 Impact Post IND AS 116 Net Revenue 6,571 8 6,578 Net Sales 6,482 0 6,482 EBITDA 440 172 612 EBITDA margin 6.7% 2.6% 9.3% Depreciation 209 131 340 EBIT 231 41 272 Interest Cost 252 51 303 PBT before exceptions -21 -10 -31 PB
Slide 61: Annexures
Annexures 55
Slide 62: Consolidated Financial Overview
Consolidated Financial Overview Revenue (Rs Cr) Profitability Ratios 11.2% 9.6% 9.1% 7.7% 10.5% 8.0% 9.1% 8.9% 6.8% 6.7% 4.7% 3.0% 5,296 5,509 6,025 6,708 6,571 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA Margin ROCE India Global Leverage Indicators 4.0 4.2 FY 20 Revenue by 3.5 Geograph
Slide 63: Profit & Loss Account Summary
Profit & Loss Account Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Revenue 5,296 5,509 6,025 6,708 6,571 7,194 EBITDA 506 423 546 702 440 680 EBITDA % 9.6% 7.7% 9.1% 10.5% 6.7% 9.5% EBIT 347 266 376 506 231 EBIT % 6.6% 4.8% 6.2% 7.5% 3.5% PBT before exceptional 158 88 192 273
Slide 64: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Branded Textile Revenue 2,702 2,714 2,915 3,153 2,917 3,152 EBITDA % 17.3% 14.1% 15.7% 13.8% 13.5% 14.9% Branded Apparel Revenue 1,119 1,270 1,424 1,647 1,619 1,911 EBITDA % 2.0% -1.0% 1.6% 3.7% -4.9
Slide 65: Segmental Sales & EBITDA Margin Summary
Segmental Sales & EBITDA Margin Summary FY20 Particulars (Rs Cr) FY16 FY17 FY18 FY19 FY20 Underlying Garmenting Revenue 593 639 691 779 843 873 EBITDA % 8.3% 8.4% 5.2% 5.1% 3.5% 4.3% Tools & Hardware* Revenue 394 350 365 401 376 395 EBITDA % 4.7% 2.0% 9.0% 10.7% 9.6% 11.0% Auto Components* Revenue 1
Slide 66: Thank You
nh Raymond Thank You www.raymond.in