Slide 1: Exchange filing cover letter
RL/SE/22-23/128 November 3, 2022 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 Scrip Code: 500330 Symbol: RAYMOND Luxembo
Slide 2: Raymond Limited Q2FY23 Result Presentation
Raymond Limited Q2FY23 Result Presentation 30th September, 2022
Slide 3: 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 4: Table of Contents
Table of Contents Q2 Highlights 4 Financial Highlights 11 Key Focus Areas 15 Segment Financials 26 Business Consolidation 45 Current Status and Outlook 47 Company Overview 50 3
Slide 5: Q2 Highlights
an Raymon Q2 Highlights
Slide 6: Market Update
Market Update o Domestic: Robust momentum from the previous quarter continued into Q2 • Markets witnessed buoyant demand driven by strong consumer sentiments, uptick in social gatherings and celebrations with onset of festivities • Healthy footfalls witnessed in retail outlets driving secondary sale
Slide 7: Q2 FY23: Highest Revenue & Profitability in the last 10 years
Q2 FY23: Highest Revenue & Profitability in the last 10 years Highest quarterly revenue of ₹ 2,191 Cr, up 38% vs. PY & 15% vs. pre-covid (Q2 FY20) Highest quarterly EBITDA of ₹ 358 Cr with EBITDA margin of 16.3% Highest PBT of 237 Cr & margin of 10.8% in a decade Decrease in net debt by ₹ 24 Cr, mai
Slide 8: Q2FY23 – Highest Q2 Revenue & Profitability in last 10 years
Q2FY23 – Highest Q2 Revenue & Profitability in last 10 years ₹ Cr. Revenue EBITDA 12.4% 13.5% 355 16.3% 15.0% 380 2191 358 10.0% 1913 180 1583 237 213 732 (7.1%) 5.0% -20 (52) Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY20 Q2 FY22 Q2 FY23 0.0% -220 Q2 FY21 -5.0% PAT 15.0% 7.2% 4.4% 3.4% • Profitable toplin
Slide 9: Consistently delivered strong QoQ performance in last 4 quarters
Consistently delivered strong QoQ performance in last 4 quarters ₹ Cr. Revenue EBITDA 17.4% 16.3% 20.0% 380 16.2% 13.4% 15.0% 2032 2191 180 1871 1754 358 358 303 235 10.0% -20 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 5.0% Pre-covid (2%) 11% 20% 15% Growth -220 0.0% PAT • Recor
Slide 10: NWC days lower by over 35% from peak level
NWC days lower by over 35% from peak level NWC Days 98 2051 62 ₹ Cr. 1855 1731 1492 1359 1263 1117 1002 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Key initiatives: strong emphasis on collections and efficient inventory management & related production cycles NWC days reduced by over
Slide 11: Net debt reduction by ~₹1,100 Cr from peak level
Net debt reduction by ~ ₹ 1,100 Cr from peak level ₹ Cr. 2378 2066 1859 1817 1564 1416 1286 1088 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Key Initiatives: Focused revenue growth, cost optimization & effective working capital management generating FCF Net debt reduction by ₹1,092 c
Slide 12: Financial Highlights
an Raymon Financial Highlights
Slide 13: Consolidated Results – Q2FY23
Consolidated Results – Q2FY23 Particulars (₹ Cr) Q2FY23 Q1FY23 Q2FY22 YoY Q2FY20 (pre -covid) H1FY23 H1FY22 YoY Net Revenue 2,191 1,754 1,583 38% 1,913 15% 3,945 2,445 61% Opex 540 514 467 16% 582 (7%) 1,054 771 37% EBITDA 358 235 213 68% 237 51% 592 220 169% EBITDA margin % 16.3% 13.4% 13.4% 288 bp
Slide 14: Segment Results – Q2FY23
Segment Results – Q2FY23 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr) Q2FY23 Q2FY22 Y-o-Y% Q2FY23 Q2FY22 Q2FY23 Q2FY22 Branded Textile 912 722 26% 203 121 22.3% 16.8% Branded Apparel 370 221 67% 36 8 9.7% 3.4% Garmenting 266 212 25% 23 22 8.7% 10.3% High Value Cotton Shirting 211 148 4
Slide 15: Segment Results – H1FY23
Segment Results – H1FY23 Post Ind AS 116 Revenue EBITDA EBITDA % Particulars (₹ Cr) H1 FY23 H1 FY22 Y-o-Y% H1 FY23 H1 FY22 H1 FY23 H1 FY22 Branded Textile 1,560 1,005 55% 317 100 20.3% 10.0% Branded Apparel 632 296 114% 51 (22) 8.0% (7.3%) Garmenting 513 310 66% 38 23 7.5% 7.3% High Value Cotton Shi
Slide 16: Key Focus Areas
an Raymon Key Focus Areas
Slide 17: 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 18: Go to Market Initiatives - Suiting
Go to Market Initiatives - Suiting Technoseries – with stretch focus Zenpel - water & stain repellent The Stretch Story Techno Smart Techno Fresh • ‘Technostretch ’ combines unique solution of comfort & Zenpel uses innovative nanotechnology to offer performance and offers two variations: Multi-direc
Slide 19: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting VIBEZ 2.0 Regional Campaign Trendy & versatile prints offers diverse colour palette to One festival many looks - choose from, which can be tailored into multiple looks for Specially for Regional specific festivals (Durga Poojo, Onam). several occasions 18
Slide 20: Go to Market Initiatives - Shirting
Go to Market Initiatives - Shirting SUSTAINOVA Linen No exposure Good for farmers to chemicals Good for Better for the sensitive skin environment Preserve pure Conserves water Cotton benefits Sustainable – Linen – Sustainable fibers like Organic cotton, Hemp, For the Colorful summers an endless choi
Slide 21: Go to Market Initiatives - Apparel
Go to Market Initiatives - Apparel ColorPlus - Chinos Park Avenue – Wrinkle Free Shirt Stain-free, Stretchable and Travel Friendly Wrinkle-free Shirts & 100% Cotton 20
Slide 22: Go to Market Initiatives - Ethnics range for targeted Occasion
Go to Market Initiatives - Ethnics range for targeted Occasion 21
Slide 23: Go to Market Initiatives – Garment Exchange Program
Go to Market Initiatives – Garment Exchange Program ~3 Lac Garments exchanged 22
Slide 24: Digital Imperatives: The new norm of business
Digital Imperatives: The new norm of business Video Analytics Strengthening Product Positioning Vision Analytics : • AI based personal messaging post purchase • India’s first vision AI based video analytics to Drive footfall, Dwell analysis and heat map to • Aggressive play on Techno Series optimise
Slide 25: Continued Focus on Cost Optimization
Continued Focus on Cost Optimization Pre-Covid Particulars (Rs Cr) Q2FY23 Q1FY23 Q2FY22 Q2FY20 Employment Cost 256 243 212 264 A & SP 60 57 28 80 Others expenses 224 215 184 237 Total Opex 540 514 424 582 Interest Cost 63 59 58 79 Total Cost 603 573 482 661 Total Opex to Revenue % 24.6% 29.3% 26.8%
Slide 26: Marginal decrease in debt, despite higher seasonal NWC
Marginal decrease in debt, despite higher seasonal NWC NWC higher vs Jun-22 - increase in working capital deployment primarily in production and sales to meet strong festive and winter wedding demand in H2 Particulars (₹ Cr)Sep'22 Jun'22 Mar’22 Sep'21 vs Jun'22 Vs Mar’22 vs Sep’21 NWC 1,492 1,323
Slide 27: Segment Financials
an Raymon Segment Financials
Slide 28: Branded Textile
Branded BrandedTextile Textile 27
Slide 29: Branded Textile
Branded Textile Particulars (₹ Cr) Q2FY23 Q2FY22 % Var. H1FY23 H1FY22 % Var. Net Sales 912 722 26% 1,560 1,005 55% EBITDA 203 121 66% 317 100 214% EBITDA margin 22.3% 16.8% 20.3% 10.0% • Branded Textile segment sales reported strong growth of 26% in Q2F23 vs PY o Growth driven by robust demand acros
Slide 30: Branded Apparel
BrandedApparel Branded Apparel 29
Slide 31: Branded Apparel
Branded Apparel Particulars (₹ Cr) Q2FY23 Q2FY22 % Var. H1FY23 H1FY22 % Var. Net Sales 370 221 67% 632 296 114% EBITDA 36 8 378% 51 (22) EBITDA margin 9.7% 3.4% 8.0% (7.3%) • Branded Apparel segment recorded a sales growth of 67% in Q2F23 vs PY o Driven by strong consumer demand with fully operation
Slide 32: Retail Network
Retail Network 31
Slide 33: Exclusive Retail Network
Exclusive Retail Network 2.3 mn sq ft 2.3 mn sq ft 2.26 mn sq ft 2.33 mn sq ft 1,376 1,372 1,351 1,420 EBO 282 278 261 301 MTM 35 36 35 37 TRS 1,059 1,058 1,055 1,082 Sep’22 Jun’22 Mar’22 Sep’21 25 stores added in H1 leading to network of 1,376 store in TRS and EBOs TRS network witnessed ~26% gr
Slide 34: Garmenting
Garmenting Garmenting 33
Slide 35: Garmenting
Garmenting Particulars (₹ Cr) Q2FY23 Q2FY22 % Var. H1FY23 H1FY22 % Var. Net Sales 266 212 25% 513 310 66% EBITDA 23 22 7% 38 23 69% EBITDA margin 8.7% 10.3% 7.5% 7.3% • Garmenting segment reported a buoyant sales growth of 25% in Q2F23 vs PY o Driven by high demand from existing customers & new cust
Slide 36: High Value Cotton Shirting
High Value Cotton Shirting 35
Slide 37: High Value Cotton Shirting
High Value Cotton Shirting Particulars (₹ Cr) Q2FY23 Q2FY22 % Var. H1FY23 H1FY22 % Var. Net Sales 211 148 42% 380 249 52% EBITDA 28 26 8% 44 32 38% EBITDA margin 13.2% 17.4% 11.7% 12.8% • High Value Cotton Shirting segment sales grew at by 42% in Q2F23 vs PY, led by higher demand for our cotton & li
Slide 38: Engineering
Engineering 37
Slide 39: Engineering Business
Engineering Business Particulars (₹ Cr) Q2FY23 Q2FY22 % Var. H1FY23 H1FY22 % Var. Net Sales 228 219 4% 437 399 10% EBITDA 29 34 (14%) 56 57 (3%) EBITDA margin 12.8% 15.5% 12.8% 14.4% • On aggregate basis, the sales grew by 4% to ₹ 228 Cr as compared to ₹ 219 Cr in previous year. • Sales growth was m
Slide 40: Raymond Realty
MR Raymond Raymono | REALTY Go Beyond
Slide 41: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Project Overall 20 acres of residential development TenX Habitat Project Details Total 10 towers with ~2.8 mn sq.ft of saleable area Total units planned for sale: 3,103 | 2BHK: 2,463; 1BHK: 640 Address by GS Total 2 tow
Slide 42: Ten X Habitat - towers to be delivered ahead of RERA timeline
Ten X Habitat - 3 towers to be delivered 2 yrs ahead of RERA Timeline Towers 1, 2, 3, 4 and 5 Towers 6, 7, 8, 9 and 10 Reference Image – Central Amenities Reference Image – Building Elevation 41
Slide 43: The Address of GS – Construction in full swing
The Address of GS – Construction in full swing Reference Image – Building Elevation Tower A – Podium – 3 slab completed Tower B – Podium 1 slab completed 42
Slide 44: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 43
Slide 45: Booking Update – KPI's
Booking Update – KPI’s Real Estate Information - Ten X as on Sep 30th 2022: Particulars Till Mar-22 Q1FY23 Q2FY23 Project till date Bookings: No of Bookings 1909 157 120 2,186 Saleable Area (Mn. Sq. ft.) 1.66 0.14 0.12 1.92 Value of Bookings (Crs.) 1887 175 148 2,210 Customer Collections (Crs.) 1091
Slide 46: Business Consolidation
an Raymon Business Consolidation
Slide 47: Update on Strategic Initiatives
Update on Strategic Initiatives Consolidation of Consolidation of B2C business Subsidiarisation of Engineering business incl. Apparel into Raymond Ltd Real Estate business Synergy in: Synergy in: Leads to: • Business Development • Design & Innovation • Differentiated Focus • RM Sourcing & Logistics
Slide 48: Current Status and Outlook
Current Status and Outlook 47
Slide 49: Current Status of Operations & Outlook
Current Status of Operations & Outlook Company expects to be on profitable growth momentum Domestic Market: With festive season and upcoming winter wedding season, consumer sentiments expected to remain resilient Exports market: Concerns of inflation in US & Europe markets however strong order book
Slide 50: Chairman & Managing Director on Q2FY23 performance
Chairman & Managing Director on Q2FY23 performance “All our businesses are delivering consistent growth in both revenues and profitability on quarter on quarter. All 4 quarters are respectively record quarters in the last 12 months. Our quality products and services are tailored to meet the ever cha
Slide 51: Company Overview
an Raymon Company Overview
Slide 52: 95+ year old diversified group with strong presence across sectors
95+ year old diversified group with strong presence across sectors Suiting Shirting Apparel Retail Presence Garmenting Engineering Real Estate Denim FMCG 51
Slide 53: Group Values
Group Values Trust • One of India’s most trusted textile & apparel brands with near 100% awareness • Strong relationships with stakeholders over last 9 decades Quality • Recognized for its innovation and high-quality product offerings • Loyal consumer base spanning domestic and international markets
Slide 54: Group Overview
Group Overview Group Size • Revenue size of ~ ₹ 8,000 Cr Manufacturing • State-of-the-art 19 manufacturing facilities at strategic locations in India and 1 in Ethiopia Employment • Workforce of 30,000+ Reach • Wide reach in 600+ towns & cities in multiple businesses in India • Global footprint in 95
Slide 55: Raymond Group led by Gautam Hari Singhania
Raymond Group led by Gautam Hari Singhania Chairman and Managing Director Raymond Ltd Atul Singh S L Pokharna Rajeev Bakshi Ravi Uppal Executive Vice Chairman (Designate) Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Ex – Coca Cola, Colgate - Palmolive Raymond Consumer Care Lt
Slide 56: Management Team
Management Team Atul Singh S L Pokharna Amit Agarwal K A Narayan Executive Vice Chairman Director - Raymond Group CFO President – HR (Designate) Ltd. Ex- JSW, Jet Airways, Ex- Wockhardt Ex – Coca Cola, Colgate - Essar Group Palmolive Jatin Khanna Balasubramanian V Sunil Kataria Hemant Lakhotia Head
Slide 57: Commands Market Leadership across our Businesses
Commands Market Leadership across our Businesses Suiting Shirting Apparel Garmenting ~65% market share in Largest Branded player in Amongst top 3 Largest exporter of men’s worsted suiting shirting fabrics menswear players suits, jackets & Denim Engineering Denim FMCG #1 brand in steel files: #1 in r
Slide 58: Manufacturing Excellence – Fabric & Garmenting
Manufacturing Excellence Fabric & Garmenting Suiting Shirting Denim Garmenting Manufacturing world’s Manufacturing world’s Manufacturer of high End to end integrated finest fabric finest fabric quality denim fabrics & garment manufacturer of 250s – worsted suiting 340s – cotton fabric garments to to
Slide 59: Manufacturing Excellence - Engineering, FMCG & Real Estate
Manufacturing Excellence - Engineering, FMCG & Real Estate Engineering FMCG Real Estate #2 Global supplier of Steel Files Amongst the top player in • Fast paced construction One of the leading global players in Ring Gears India’s Sexual wellness activity category • Acceptance of design • End to end
Slide 60: Domestic presence
Domestic presence One of the largest asset-light distribution network in multiple businesses Branded 20,000+ POS Textiles Branded 8,000+ POS Apparel Retail 1,370+ stores | ~95% franchisee (2.3 mn sq. ft ) Engineering ~1.5 lakh POS FMCG 6.5 lakh+ POS Pan-India network in over 600 towns & cities * Leg
Slide 61: International Presence
International Presence Global Footprint in 95+ Countries through diversified businesses India North Asia America Europe Dubai Ethiopia South America Africa Australia ~50 retail stores in overseas location Overseas Store Location Manufacturing Location * Legends represent indicative store locations;
Slide 62: Our Brands
Our Brands - Home grown portfolio of renowned brands with high recall value Branded Textile Branded Apparel FMCG Real Estate Engineering Presence in Africa & Asia through multiple Umbrella Brand sub- brands 61
Slide 63: 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 64: Thank You
¢ | ) gir Raymond Thank You www.raymond.in