Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q3 FY21 Earnings Presentation
43 slides from Rupa &'s earnings presentation, Jan 29, 2021
Slide 1: Exchange filing cover letter
C RUPA 5g 4 RUPA & COMPANY LIMITED x ~ Date: 29/01/2021 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 Mumba
Slide 2: Investor Release: Robust Performance for Q3 FY21
Investor Release Rupa & Company reports Robust Performance for Q3 FY21 ✓ Revenue at Rs. 346 crores, growth of 12% ✓ EBITDA growth of 40% ✓ PAT growth of 52% Kolkata, 29th January, 2021 – Rupa & Company Limited, one of the leading and largest knitwear brand in India, engaged in the manufacturing, mar
Slide 3: Update on Scheme of Arrangement
Update on Scheme of Arrangement During the quarter gone by, the Board has approved the Scheme of Arrangement between Oban Fashions Private Limited (Demerged Undertaking), and Rupa & Company Limited (Resulting Company) subject to requisite approvals and permissions. The proposed demerger would help i
Slide 4: Investor Presentation
INVESTOR PRESENTATION January 2021
Slide 5: 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 6: Q3 & 9M FY21 Financial Highlights
Q3 & 9M FY21 FINANCIAL HIGHLIGHTS
Slide 7: Strong Q3 FY21 Performance
Strong Q3 FY21 Performance* EBITDA Margin Revenue from Operations Growth Rs. 346 crores +12% +370 bps 18.6% 14.9% EBITDA Growth Q3 FY20 Q3 FY21 Rs. 64 crores +40% Margins 18.6% PAT Margin +330 bps 12.6% Profit After Tax Growth 9.3% Rs. 43 crores +52% Margins 12.6% Q3 FY20 Q3 FY21 * On Consolidated B
Slide 8: Strong 9M FY21 Performance
Strong 9M FY21 Performance* EBITDA Margin Revenue from Operations Growth Rs. 859 crores +8% +610 bps 19.4% 13.3% EBITDA Growth 9M FY20 9M FY21 Rs. 167 crores +57% Margins 19.4% PAT Margin +440 bps 12.7% Profit After Tax Growth 8.3% Rs. 109 crores +65% Margins 12.7% 9M FY20 9M FY21 * On Consolidated
Slide 9: Q3 & 9M FY21 Performance Highlights - Consolidated
Q3 & 9M FY21 Performance Highlights - Consolidated Profit & Loss Statement (Rs. Crs.) Q3 FY21 Q3FY20 Y-o-Y 9M FY21 9M FY20 Y-o-Y Revenue from Operations 345.6 307.6 12% 858.7 795.3 8% Total Raw Materials 162.4 148.2 397.4 333.4 Employee Benefits Expense 12.5 16.5 34.9 49.2 Sub-contracting/Jobbing Ex
Slide 10: About the Company
CRUPA RUPA & COMPANY LIMITED ABOUT THE COMPANY (0) % @ THERMOCOT macnowoman , SOS fouk FASHION INNERS “A reurTglooM, nh Jae FRONTLIN= MACROMAN @) Bumchums TORRIDO foof ine femmera
Slide 11: #1 Undisputed knitwear Indian brand
#1 Undisputed knitwear Indian brand… 7,00,000+ 7,000+ 18 Finished goods pieces per day SKUs Sub Brands 1,25,000+ 1,200+ 100+ Retail Outlets Dealers Registration of Trademark's Nationally & Internationally Presence across major E-commerce platforms One of the leading and largest knitwear brand in Ind
Slide 12: 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 Forayed into the manufacturing of leggings under the brand “Fem
Slide 13: Under the 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 45 years of experience in the textile industry • More
Slide 14: And 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 completed Diploma in Marketing from
Slide 15: Maintaining brand leadership over decades
…maintaining brand leadership over decades Most Promising Brand 2018 Indywood Excellence Award 2017 Best Corporate Brand 2016 The Economic Times The Economic Times Indian Power Brand 2011-12 Govt. of Telangana First Indian innerwear The Worlds Greatest Brand 2015 Worldwide achievers(Zee) manufacture
Slide 16: 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 State of Art Manufacturing facility inspirational brands Broad & unparalleled product portfolio Far-reaching footprin
Slide 17: Broad & unparalleled product portfolio
1. Broad & unparalleled product portfolio "Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with changing times." Innerwear Thermal Wear Casual / Athleisure Vests Vest / Upper Leggings & Causal Wear Brief / Drawer Lowers Socks Lingerie T-shirts
Slide 18: 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 19: An integrated & efficient business model
2. An integrated & efficient business model Product Design & Development Manufacturing Logistics & Process Distribution Manufacturing Process Processing / Knitting Stitching Warehousing Distribution Dyeing & Bleaching Logistics & Distribution Critical Processes done in-house Cutting › Reduce costs &
Slide 20: 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 21: 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 new 1,200+ distributors and building experienced team and further Dea
Slide 22: Quality implemented at all levels
2. Quality implemented at all levels "Quality is our lodestar at Rupa. Since inception to the present day, we have never, and we shall never, compromise on quality. Because, if you follow quality, everything else will follow automatically." Pursuit of quality without compromise is achieved by single
Slide 23: 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 conform environmentally friendly clothes to international standards of fastness properties like rubbing, perspiration, light and washing Innerwear, thermals and hosiery products are
Slide 24: Accelerating the launch of inspirational brands
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 Well-known & largest International brands • Access to a global brand with strong brand recognition in the super premium segment in
Slide 25: 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. 74 80 86 82 71 Consistent annual investment of 7-8% of sales in br
Slide 26: Growth Strategies
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Slide 27: 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 300 2. Active & LFS in the next 2 years Leggin
Slide 28: Scaling high margin revenue stream
1. Scaling high margin revenue stream • Vision to occupy the white space in the category and consumer mindspace where the aspirational Indian consumer can show off his style quotient and Premium + Super Premium (Rs. in Cr) discerning taste • Catering to the brand sensitive Indian youth, aspiring tow
Slide 29: Scaling high margin revenue stream: Macroman and Macrowoman
1. Scaling high margin revenue stream One of the Largest Premium Brand Macroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge Direct distribution model Ranbir Kapoor as the brand of Innerwear, Leisurewear, designers, available in a variety of colors and with acc
Slide 30: 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 31: 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 32: Reinforcing high growth segments – Thermal wear
3. Reinforcing high growth segments – Thermal wear Exquisite range of thermal wear Your ideal companion during winter months. Available in a variety of exciting colours, trendy Now, you can stay warm and stylish in winters styles and all sizes, it is ideal for every member of the family Thermocot fa
Slide 33: 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 34: Simplifying and Optimising distribution channel
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 35: 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 36: Substantial opportunity to drive growth
Substantial opportunity to drive growth Increasing penetration of Increasing income levels and Growth in penetration of electronic media leading to high spending power organized retail branded products Emergence of purpose-specific Changing Fashion Growing urbanization innerwear (sporty, casual, Tre
Slide 37: Historical Financials
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Slide 38: Historical Financials - Standalone
Historical Financials - Standalone Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,084 1,090 1,108 166 170 167 115 1,013 941 141 95 93 827 131 45 125 64 80 600 100 78 77 H2 535 678 677 474 109 329 H2 65 74 60 64 55 35 H2 34 40 102 70 H1 478 485 431 467 498 H1 66 67 70 65 H1 44 45 412 57 37
Slide 39: Historical Financials - Standalone
Historical Financials - Standalone RoCE % RoE % 25.7% 27.1% 26.2% 22.9% 22.0% 25.1% 23.7% 19.1% 19.8% 17.2% 15.5% 13.3% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Sep-20 Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Sep-20 Debt to Equity Working Capital (Days) Inventory Debtors Creditors 0.39 172 0.30 148 116 122
Slide 40: Historical Financials - Consolidated
Historical Financials - Consolidated Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,120 1,149 167 109 1,093 155 1,015 151 975 139 132 86 859 64 43 661 114 72 74 H2 605 698 66 536 487 73 99 91 62 346 H2 66 54 58 36 38 24 H2 34 102 66 H1 479 488 488 488 513 H1 66 66 422 56 60 60 H1 32 34 38
Slide 41: Historical Financials - Consolidated
Historical Financials - Consolidated RoCE % RoE % 25.1% 26.0% 22.5% 23.0% 24.3% 19.0% 17.9% 18.4% 20.2% 14.2% 13.6% 11.0% Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Sep-20 Mar-16* Mar-17* Mar-18 Mar-19 Mar-20 Sep-20 Debt to Equity Working Capital (Days) Inventory Debtors Creditors 0.39 0.38 175 0.30 151 0
Slide 42: Sharing profits consistently
Sharing profits consistently Dividend % of FV 150% 200% 250% 275% 275% 275% 300% 300% 300% Payout as a % of Profits 38.6% 33.2% 32.1% 32.2% 30.1% 30.3% 27.4% 27.7% 24.5% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 39
Slide 43: 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