Renaissance Global Limited · NSE:RGL
Renaissance Global — Q3 FY2023 Earnings Presentation
37 slides from Renaissance Global's earnings presentation, Feb 6, 2023
Slide 1: Cover letter to stock exchanges
Ref. No.: RGL/S&L/2023/15 February 06, 2023 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip code: 5
Slide 2: Renaissance Global announces Q3 & 9M FY23 Results
PRESS RELEASE Renaissance Global announces Q3 & 9M FY23 Results 9M FY23 Total Income stood at Rs. 1,742 crore Direct-to-Consumer business revenues up 83% to Rs.173 crore EBITDA stood at Rs. 130 crore, with margins at 7.5% PAT stood to Rs. 68 crore Mumbai, February 06, 2022: Renaissance Global Limite
Slide 3: Key Developments
Commenting on the performance for Q3 & 9M FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “Despite strong global headwinds, we were able to minimize the downward pressure on our revenues for 9M FY23. It was largely driven by the growth in our branded jewelry division
Slide 4: About Renaissance Global Limited
About Renaissance Global Limited (Renaissance) Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), is a global branded jewellery player. Renaissance designs, manufactures, and supplies branded jewellery across key high-potential markets in USA, Canada, UK & Asia. The product portfolio
Slide 5: Results Presentation Q3 & 9M FY23
Results Presentation Q3 & 9M FY23
Slide 6: 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 7: Content
Content Q3 & 9M FY23 Company Annexure Results Overview Overview 4 15 28 3
Slide 8: Q3 & 9M FY23 Results Overview
iO Renaissance Global Limited Q3 & 9M FY23 Results Overview
Slide 9: Q3 & 9M FY23 Financial Summary
Q3 & 9M FY23 Financial Summary Total Income (Rs. Crore) EBITDA (Rs. Crore) 6% 4% EBITDA 8.8% 6.9% 9.8% 7.5% 1,742.1 Margin (%) 1,672.4 21% 27% 163.7 775.0 130.0 725.0 68.5 50.1 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q3 FY23 9M FY22 9M FY23 PAT (Rs. Crore) EPS (Rs.) PAT 4.3% 3.9% 5.1% 3.9% Ma
Slide 10: Management Message
Management Message Commenting on the performance for Q3 & 9M FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “Despite strong global headwinds, we were able to minimize the downward pressure on our revenues for 9M FY23. It was largely driven by the growth in our brand
Slide 11: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q3 FY23, direct-to-consumer business posted revenues of Rs. 88.2 crores compared to Rs. 48.9 crores in Q3 FY22, registering a growth of 80% For 9MFY23, direct-to-consumer business revenue was up by 83% to Rs.172.8 crores as compared to Rs. 94.3 Cr
Slide 12: Q3 & 9M FY23 Operational Summary
Q3 & 9M FY23 Operational Summary Revenue Break-up Q3 Q3 9M 9M Revenue Mix (%) Shift % Shift % (Rs. Cr.) FY23 FY22 FY23 FY22 Plain Gold Customer Brands Branded Jewellery Branded Jewellery 234.2 196.3 19.3% 457.9 382.9 19.6% 32% 25% 26% 23% - B2B 146.0 147.4 -0.9% 285.1 288.6 -1.2% - D2C 88.2 49.0 80.
Slide 13: Q3 FY23: Financial & Operational Discussions (Y-o-Y)
Q3 FY23: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 725.0 crore from Rs. 775.0 crore Branded Jewellery business revenues stood at Rs. 234.2 crore supported by a steady flow of orders from retail partners and increasing revenues from D2C business D2C business re
Slide 14: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) 167 149 Strong FCF generation 89 Branded Jewellery - a low capital- 43 36 intensive business FY20 FY21 TTM Dec 21 FY22 TTM Dec 22 Operating leverage & minimal capex spends to further improve FCF generation, going ahead Cash,
Slide 15: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52 0.33 0.30 0.30 665 0.29 699 926 924 984 Highly disciplined balance sheet 843 503 364 approach 242 305 280 291 FY19 FY20 FY21 TTM Dec 21 FY22 TTM Dec 22 Net Debt to Equity ratio as of December 2022 imp
Slide 16: Healthy Return Ratios
Healthy Return Ratios ROE ROE (Adjusted for Cash & Current Investments) 17.6% 18.9% 17.1% 16.9% 12.3% 8.8% 12.9% 13.5% 12.0% 11.5% 9.4% 9M FY23 Return on Equity stood at 9.4% 6.0% vs 12.0% for FY22. FY19 FY20 FY21 TTM Dec 21 FY22 TTM Dec 22 Branded business enjoys ROEs in the range of 22-25%. D2
Slide 17: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q3 FY23 Q3 FY22 9M FY23 9M FY22 Change (%) Change (%) Revenues from Operations 723.9 773.9 -6.5% 1,737.9 1,660.5 4.7% Other Income 1.1 1.0 4.2% 4.2 11.9 -64.8% Total Income 725.0 775.0 -6.5% 1,742.1 1,672.4 4.2% COGS 551.6 594.
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet December December December December Particulars (Rs. Crore) Particulars (Rs. Crore) 2022 2021 2022 2021 Shareholder's Funds 984.2 925.7 Non-Current Assets Equity Share Capital 18.9 18.7 Fixed Assets – Tangible & Intangible 258.0 184.9 Reserves & Surplus 964.3 907.1 CWIP &
Slide 19: FY23: Outlook
FY23: Outlook Revenue from Operations Rs.1,970 – 2,150 crore Revenue for FY23 is estimated to decrease by 2-10% YoY. Profit after Tax Rs.85 – 90 crore PAT for FY23 is anticipated to decline by 15-20% YoY. We are constantly monitoring the macro environment and business developments. We believe our ex
Slide 20: Company Overview
iO Renaissance Global Limited Company Overview
Slide 21: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 5 6 575 cr Licensing Direct-to- Branded jewellery agreements with Consumer revenues (Rs.) in global brands websites 9M FY23 Strong presence in global markets of North (annualised) Am
Slide 22: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery Association with globally-recognized brands segment 26% Increased presence in high-potential key global 23% markets Renaissance’s 18% Branded Jewellery Better pricing on the back of branded products 13%
Slide 23: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Distribution Direct-to- Business Consumer (D2C) (B2B) 19
Slide 24: '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 25: Growing Portfolio of Brands: Licensed 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 26: Growing Portfolio of Brands: Owned 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 Made for
Slide 27: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline June February November November February May Successfully 2019 2020 2020 2020 2021 2021 developed and launched 6 online stores Segment enjoys higher margins and healthy working capital cycle KINDLY CLICK ON THE LOGOS TO VISIT RENAISSANCE’S
Slide 28: 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 24
Slide 29: 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 30: ESG Initiatives
iO Renaissance Global Limited ESG Initiatives
Slide 31: 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 32: Corporate Social Responsibility
Corporate Social Responsibility ENVIRONMENTAL, MEDICAL, HEALTH CARE AND EDUCATIONAL HUMANITARIAN ANIMAL WELFARE, SOCIAL WELFARE CULTURAL & RELIGIOUS Partnered with the Under the Each One Teach One Initiative (EOTO), Donated during natural Actively contributes to Bhaktivedanta Hospital by Ren
Slide 33: Annexure
») Renaissance Global Limited Annexure
Slide 34: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.7% Foreign Institutions (FPI, FII & 1.8% NRI) Individual - >1% 3.7% Others 23.8% *Holding as on 31st December 2022 Key Market Statistics As on 30-December-2022 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 98.15 Market Cap
Slide 35: Conference Call Details
Conference Call Details Q3 & 9M FY2023 Earnings Conference Call Time • 2:00 p.m. IST on Wednesday, February 08, 2023 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 36: About Us
About Us Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), is a global branded jewellery player. Renaissance designs, manufactures, and supplies branded jewellery across key high-potential markets in USA, Canada, UK & Asia. The product portfolio encompasses Branded Jewellery, Custom
Slide 37: Thank You
CO Renaissance Global Limited Thank You