Raymond Limited · NSE:RAYMOND
Raymond — Q3 FY2019 Earnings Presentation
37 slides from Raymond's earnings presentation, February 2019
Slide 1: Result Presentation – Quarter ended December 31, 2018
Result Presentation Quarter ended December 31, 2018
Slide 2: 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 3: Table of Contents
Table of Contents Market Overview 04 Initiatives and Awards 06 Financial Highlights 09 Performance of Segments 15 Way Forward 30 Raymond Realty 32 3
Slide 4: Market Overview
si Raymon Market Overview
Slide 5: Market Overview
Market Overview Textile Apparel & Retail • Growth led by higher volumes mainly due to • Strong SSSG expected due to shift in festive festivities in Q3 and upcoming wedding season in season in Q3 Q4 • Network Expansion, early EOSS and promotional • Raw material cost continue to remain high schemes ex
Slide 6: Initiatives and Awards
si Raymon Initiatives and Awards
Slide 7: Initiatives
Initiatives Mini TRS Style play Tailoring Hubs 70 mini TRS added in Q3FY19; totaling 5 Stores opened in Q3FY19; totaling to 5 tailoring hubs added in Q3FY19, to 209 stores as at Dec’18 16 stores as at Dec’18 totaling to 38 hubs as at Dec’18 7
Slide 8: Awards
Awards Shared Service Team Supply Chain and Logistics Communication and Media GOLD Award in the category CII National Scale award for ‘Exemplary Silver Award for ‘Excellence in ‘Excellence in Transformation’ at position’ under Retail Category Communication & Media’ at Big Bang Shared Service Outsour
Slide 9: Financial Highlights
si Raymon Financial Highlights
Slide 10: Financial Highlights – Q3FY19
Financial Highlights – Q3FY19 Revenue (INR Cr) EBITDA (INR Cr) & Underlying Net Profit (INR Cr) EBITDA margin % 10.9% 1,706 8.6% 1,514 185 131 38 29 13% 41% 33% Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Net Debt to Equity Ratio NWC days* A&SP 4.6% 1.1 1.1 101 102 3.7% 69 63 -9% Dec'17 Dec'18 D
Slide 11: Consolidated Results
Consolidated Results Particulars (INR Cr) Q3 FY19 Q3 FY18 Y-o-Y% 9m FY19 9m FY18 Y-o-Y% Net Revenue 1,706 1,514 13% 4,871 4,370 11%* Net Sales 1,675 1,484 13% 4,774 4,277 12% EBITDA 185 131 41% 507 370 37% EBITDA margin 10.9% 8.6% 10.4% 8.5% PBT before exceptions 67 42 58% 179 116 54% PBT margin 3.9
Slide 12: Segment Results – Q3 FY19
Segment Results – Q3 FY19 Particulars Revenue Growth EBITDA EBITDA EBITDA Y-o-Y (INR Cr) (INR Cr) (YoY%) (INR Cr) Margin Margin % (LTL*) Change Branded Textiles 848 10% 125 14.8% 15.6% 26 bps Branded Apparels 397 20% 9 2.2% 2.7% 251 bps Garmenting 185 14% 7 3.8% 4.6% 49 bps High Value Cotton Shirtin
Slide 13: Segment Results – 9m FY19
Segment Results – 9m FY19 Particulars Revenue Growth EBITDA EBITDA EBITDA Y-o-Y (INR Cr) (INR Cr) (YoY%) (INR Cr) Margin Margin % (LTL*) Change Branded Textiles 2,321 10% 303 13.0% 13.9% -31 bps Branded Apparels 1,158 13% 29 2.5% 3.1% 229 bps Garmenting 567 16% 32 5.7% 6.5% 199 bps High Value Cotton
Slide 14: Balance Sheet & Cash Flow Performance Indicators
Balance Sheet & Cash Flow Performance Indicators Particulars (INR Cr) Dec’17 Dec’18 Net Worth 1,830 1,963 Net Debt 1,988 2,185 Cash Flow from Operations 188 226 Free Cash Flow 35 94 Key Ratios Dec’17 Dec’18 Net Debt / Equity 1.1 1.1 Net Working Capital Days (TTM basis) 101 102 14
Slide 15: Performance of Segments
si Raymon Performance of Segments 15
Slide 16: Branded Textiles
Branded Textiles
Slide 17: Branded Textile
Branded Textile Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg Net Sales 848 768 10% 2,321 2,113 10% 9m growth Ex-GST: 11% EBITDA 125 118 6% 303 301 0% EBITDA margin 14.8% 15.3% 13.0% 14.3% EBITDA margin LTL 15.6% 15.3% 13.9% 14.3% • Increase in sales driven by volume growth in dom
Slide 18: Branded Apparel
Branded Apparel
Slide 19: Branded Apparel
Branded Apparel Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg Net Sales 397 332 20% 1,158 1,021 13% 9m growth Ex-GST: 16% EBITDA 9 1 - 29 8 272% EBITDA margin 2.2% 0.2% 2.5% 0.8% EBITDA margin LTL 2.7% 0.2% 3.1% 0.8% • Branded Apparel growth driven by Strong growth in PA and Par
Slide 20: Retail Network
Retail Network
Slide 21: Exclusive Retail Network
Exclusive Retail Network 2.3 mn 2.2 mn 97 additions sq ft sq ft 20 74 3 1,363 1,282 6 2 8 334 EBO 322 67 16 closures 68 MTM # TRS 893 961 Sep 18 TRS MTM EBO TRS MTM EBO Dec 18 • During the quarter Added 97 new stores (including 70 mini-TRS) and closed 16 stores 95 of 97 stores added on Franchise
Slide 22: Strong Distribution Network
Strong Distribution Network Branded Textile 4 • 20,000+ points of sale across 50 4 600+ cities and towns 16 23 • 180+ Wholesalers 44 55 • 1350+ MBOs 1 • Across Raymond Shop (TRS) - 48 149 7 1 Tier I to VI towns 61 1 79 57 24 75 1 Branded Apparel 16 • Presence in over 500 cities and 14 towns 213 • 33
Slide 23: Garmenting
Garmenting
Slide 24: Garmenting
Garmenting Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg Net Sales 185 162 14% 567 490 16% 9m growth Ex-GST: 16% EBITDA 7 7 5% 32 22 47% EBITDA margin 3.8% 4.1% 5.7% 4.5% EBITDA margin LTL 4.6% 4.1% 6.5% 4.5% • Growth led by exports in Europe and US • EBITDA margin LTL improved to
Slide 25: High Value Cotton Shirting
High Value Cotton Shirting
Slide 26: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg Net Sales 159 149 7% 492 430 14% 9m growth Ex-GST: 15% EBITDA 22 16 40% 69 46 51% EBITDA margin 14.0% 10.7% 14.0% 10.6% EBITDA margin LTL 14.8% 10.7% 14.8% 10.6% The results shown above are for 100% operation
Slide 27: Tools & Hardware Auto Components
Tools & Hardware 27 Auto Components
Slide 28: Tools and Hardware
Tools and Hardware Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg 9m Growth Net Sales 100 98 2% 300 275 9% Ex-GST: 11% EBITDA 12 10 20% 35 24 45% EBITDA margin 11.8% 10.1% 11.6% 8.7% The results shown above are for 100% operations and include minority interest • Growth driven by be
Slide 29: Auto Component
Auto Component Particulars (INR Cr) Q3 FY19 Q3 FY18 % Chg 9m FY19 9m FY18 % Chg Net Sales 64 49 30% 191 156 22% 9m growth Ex-GST: 24% EBITDA 14 12 16% 43 36 21% EBITDA margin 21.8% 24.4% 22.8% 23.1% EBITDA margin LTL 21.8% 23.7%* 21.6%* 20.8%* The results shown above are for 100% operations and incl
Slide 30: Way Forward
30 Way Forward si Raymon
Slide 31: Way Forward
Way Forward • Expecting growth momentum to be maintained with positive consumer sentiments led by continued EOSS and onset of wedding season • Continue with the asset light network expansion strategy mainly through franchisee based stores rollout • For Q4, we are expecting high single digit revenue
Slide 32: Raymond Realty
32 raymond REALTY an raymond
Slide 33: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Infrastructure Development Sphere of Quality Housing 20 acre of residential development with ~3 mn. sq. ft. of saleable Project area to be developed over 5 years Strategic location in Thane with developed social infrastructure Strategic Locati
Slide 34: Current Project – Aspirational Housing: Phase 1
Current Project – Aspirational Housing: Phase 1 Phase 1 - Plan Amenities include • 2 High-rise towers of 42 floors with 2 BHK apartments with ~0.6 mn sq. ft. of saleable area • Carpet area of flats: • 2BHK Compact - ~504 sq. ft. • 2BHK Large - ~615 sq. ft. Rain water Harvesting Energy Management Key
Slide 35: Excellence to Execute
Excellence to Execute • Experienced real estate team • Processes & systems in place • Strong association partners include: Master Architect Structural Consultant Landscape Green Consultant • Raymond Core Strength 35
Slide 36: Aligned to Raymond “Value Creation” Strategy
Aligned to Raymond “Value Creation” Strategy • Land Monetization is a critical aspect in unlocking value at Raymond • De-risked financial model in place Cash-accretive project over the period of 5 years Peak Funding Requirement Avail Construction Finance on need basis Possible sale of land p
Slide 37: Thank You
an raymond Thank You www.raymond.in