Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q3 FY24 Earnings Presentation
64 slides from Rupa &'s earnings presentation, Feb 8, 2024
Slide 1: Regulation 30 disclosure letter to stock exchanges
Date: February 08, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Ref: NSE Symbol- RUPA / BSE Scrip Code- 533552 Sub: Disclosure unde
Slide 2: Q3 & 9M FY24 Investor Presentation
Q3 & 9M FY24 Investor Presentation
Slide 3: 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 4: Table of contents
Table of contents Q3 & 9M FY24 Result Highlights Business Model ESG & CSR Initiatives Growth Initiatives Company Overview Historical Financials
Slide 5: Q3 & 9M FY24 Result Highlights
Q3 & 9M FY24 Result Highlights
Slide 6: Management Commentary
Management Commentary We are delighted to present an insightful overview of our company's performance during Q3 Q3 FY24 9M FY24 FY24. We have adeptly steered through a dynamic operating landscape, achieving growth across key metrics. Revenues surged by 35% this quarter backed by strong sales in our
Slide 7: Q3 & 9M Financial Highlights
Q3 & 9M Financial Highlights Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 6.0% 10.3% 2.3% 6.5% +35% +131% +276% 319 33 21 236 14 6 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 8.4% 9.4% 4.7% 5.6% +11% +24% +31% 816 77 46 736 62 35 9
Slide 8: Q3 & 9M FY24 Performance Highlights
Q3 & 9M FY24 Performance Highlights Q3 FY24 Revenue stands at Registered a robust growth of Volume Rs. 319 cr, up by 35% YoY 131% in EBITDA and 276% in PAT Q3 FY24: 45% during the quarter 9M FY24: 21% Modern trade & e-commerce Exports contributed ~3% of the contributed ~5% of revenues revenues; stoo
Slide 9: 9M FY24 Sales mix
9M FY24 Sales mix Region-wise Gender-wise Segment-wise 3% 5% 5% 3% 7% 10% 13% 9M FY24 47% 9M FY24 9M FY24 26% 85% 4% 92% East North-East North Men Women Kids West & Central South Overseas Domestic Modern Trade Exports 8
Slide 10: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crs.) Q3 FY24 Q3 FY23 Y-o-Y% Q2 FY24 Q-o-Q% 9M FY24 9M FY23 Y-o-Y% Revenue from Operations 318.5 236.0 35% 302.1 5% 816.0 736.3 11% Total Raw Material 173.5 133.8 144.6 395.7 347.9 Sub-Contract Expenses 59.7 36.8 67.0 175.7 157.0 Gross Profit 85.3 65.4 90.
Slide 11: Star Studded Line-up of Brand Ambassadors
Star Studded Line-up of Brand Ambassadors Brand Development Cost (Rs. In Cr) Strong brand recall developed through 82 78 Advertisement & consistent investment in advertising and 71 62 Branding Expense 53 brand promotion strategies 48 constitutes ~6% of Revenues in 9M FY24. 2019 2020 2021 2022 2023 9
Slide 12: ESG & CSR Initiatives
ESG & CSR Initiatives
Slide 13: Why ESG matters to us?
Why ESG matters to us ? Sustainability is something that investors are demanding, customers are expecting, shareholders are relying on and employees are valuing. Stakeholders’ Perspective Investors Shareholders Employees Customers Government Communities Good financial returns, Working with Occupatio
Slide 14: ESG Vision & Mission
ESG Vision & Mission “Weaving together a sustainable future” To be one of the most loved knitwear and apparel brands in India; commended for responsible Vision manufacturing and delivering superior customer experience with the best pricing. Rupa endeavors to responsibly manufacture products through
Slide 15: Rupa's Pillars of Sustainability
Rupa’s Pillars of Sustainability Strategic Sustainability Pillars Environment Social Governance ❖ Energy and climate change ❖ Diversity and inclusion ❖ Corporate governance management ❖ Occupational health and safety ❖ Ethics, transparency and ❖ Water and effluent management accountability ❖ Corpora
Slide 16: Strong Board Oversight on ESG
Strong Board Oversight on ESG Responsible Governance Board Tenure • Active oversight from Board of Directors and dedicated Board level CSR committee for overseeing ESG risks >12 years 0 - 7 years 36% 28% • Corporate social responsibility embedded in our Values • Fosters a culture of honesty, integri
Slide 17: Committed to Sustainable Growth
Committed to Sustainable Growth CSR Vision : Improving lives in pursuit of collective development and environmental sustainability Energy and GHG Management Emissions Management ▪ The steam generated from the boiler is captured and ▪ Installed bag filters to ensure particulate reused in operations i
Slide 18: Care for our People
Care for our People Adhering to the highest labour standards Gender Diversity We respect and protect human rights both within and outside the workplace All workmen on the shop floor are by adhering to the principles of human required to undergo workplace safety training for ensuring prevention of ri
Slide 19: Strengthening our Communities
Strengthening our Communities Rupa & Company Limited operates with a strong belief that giving back to the society and contributing towards its sustainable development is every organization’s responsibility. The Company and its people Key highlights are committed to society, ecology and environment.
Slide 20: Glimpses of our CSR Activities
Glimpses of our CSR Activities Medical and healthcare facility under Cancer awareness and detection camp in Provision of mid-day meal Provision of mid-day meal construction collaboration with Indian Cancer Society Animal welfare Women empowerment Supporting education Promoting sports Drinking water
Slide 21: Company Overview
MACROMAN (@) SERIES Company Overview Now YASH. the new MACROMAN www.macroworld.in LIVE LIKE A MACROMAN Innerwear | Athleisure cru PA
Slide 22: #1 undisputed knitwear Indian brand
#1 undisputed knitwear Indian brand Finished goods Finished goods pieces per day 7,00,000+ 1,500+ pieces per day Registration of trademark’s both Retail Outlets 1,50,000+ 100+ Nationally & Internationally SKUs 9,000+ 18 Sub Brands 21
Slide 23: Long legacy of delivering excellence
Long legacy of delivering excellence 1968 1985 1995 - 1996 1997-2000 2003-2008 RUPA brand Rupa & Co. Pvt. Ltd. Took over business of Entered casual wear and Acquired the brand incorporated Established Binod Hosiery thermal wear products “Euro” IPO and listing on Started export of products Calcutta S
Slide 24: Eminent Board of Directors
Eminent Board of Directors Mr. Prahlad Rai Agarwala, Mr. Ghanshyam Prasad Agarwala, Mr. Kunj Bihari Agarwal, Chairman Vice Chairman Managing Director • 50+ years of experience in the textile • 47+ years of experience in the textile • 45+ years of experience in the textile industry industry industry,
Slide 25: Eminent Board of Directors
Eminent Board of Directors Mr. Ramesh Agarwal, Mr. Mukesh Agarwal, Mr. Vikash Agarwal, Whole-time Director Whole-time Director Whole-time Director • More than 30 years of experience in the • 30+ years of experience in the • Graduated from St. Xavier’s College, textile industry textile industry Kolka
Slide 26: Eminent Board of Directors
Eminent Board of Directors Mr. Dipak Kumar Banerjee, Mr. Vinod Kumar Kothari, Mr. Ashok Bhandari, Independent Director Independent Director Independent Director • Vinod Kothari is internationally • Chief Financial Officer and President • Chartered Accountant with 45 recognized as an author, trainer
Slide 27: Eminent Board of Directors
Eminent Board of Directors Mr. Sushil Patwari, Mr. Dharam Chand Jain, Mrs. Alka Devi Bangur, Mr. Sunil Chandiramani, Independent Director Independent Director Independent Director Independent Director • 40+ years of experience in the field • 45+ years of experience in the field • 16+ years of experi
Slide 28: Experienced Management Team
Experienced Management Team Mr. Niraj Kabra, Mr. Rajnish Agarwal, Executive Director President • A commerce graduate from Calcutta University • New generation industrialist, Master’s in Business Administration in Marketing from University of Cardiff, U.K. • More than 20 years of rich expertise in th
Slide 29: Brand to reckon with
Brand to recon with Step 01 Step 03 Step 05 Step 07 Deploy Process Quality Achievement o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here o Add Text Here Most Promising Brand 2018 Indywood Excellence Award 2017 Best Corporate Brand 2016 In
Slide 30: Business Model
Business Model
Slide 31: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓ Accelerating the launch of ✓ Expanding retail footprint portfolio manufacturing process aspirational brands ✓ Adopting digital ✓ Bran
Slide 32: Broad & unparalleled product portfolio
Broad & unparalleled product portfolio Bermudas Athleisure Leggings & Causal Wear T-shirts Socks Vests/ Upper Thermal Wear Lowers Brief / Drawer Lingerie Vest / Upper Innerwear Lowers "Rupa overhauls its portfolio periodically to the fast-changing requirements, evolving the market in line with chang
Slide 33: Brands across a wide price range
Brands across a wide price range Diversified, targeted product offering across demographics, categories and price segments Bouquet of Brands across Price Segments Super Premium Segment Gamut of products from innerwear to casual and Premium Segment athleisure wear (Inner wear + Thermal wear + Active
Slide 34: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓An integrated & efficient ✓ Accelerating the launch of ✓ Expanding retail footprint portfolio manufacturing process aspirational brands ✓ Adopting digital ✓ Brand
Slide 35: An integrated & efficient manufacturing process
An integrated & efficient manufacturing process Product Design & Development Manufacturing Process Logistics & Distribution Manufacturing Process Processing / Dyeing Knitting Stitching Warehousing Distribution & Bleaching Logistics & Distribution Critical Processes done in-house Cutting » Automate s
Slide 36: State of art manufacturing facilities
State of art manufacturing facilities Continous 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 » Dy
Slide 37: Unwavering focus on R&D
Unwavering focus on R&D • Harnessing the power of technology enables conforming to international standards • Majority of our fabrics are biodegradable • Innerwear, thermals and hosiery products are made from superior and natural fibers that are grown in sustainable farming methods • Each of Rupa’s p
Slide 38: Quality implemented at each stage
Quality implemented at each stage Quality is our lodestar at Rupa. Since inception, we have never compromised on quality. We believe, if you follow quality, everything else will follow automatically. Understanding the value of research, the ultra- modern laboratory at Rupa’s Dyeing and Processing Pl
Slide 39: High Volume Capacities
High Volume Capacities OPERATIONS IN HOUSE CAPACITY Strategic Advantages Fabric Dyeing & Bleaching 25 Tons/Day • Streamlined Operations • Technologically advanced machineries to support our manufacturing infrastructure Yarn Dyeing & Bleaching 3 Tons/Day • Robust control practices in place to ensure
Slide 40: Brand Strategy
C@LORS "Ges FRONTLINE Brand Strategy onsen ONE:= Cc RUPA
Slide 41: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓Reinforcing high growth ✓ Expanding retail footprint portfolio manufacturing process segments ✓ Adopting digital ✓ Brands across a wid
Slide 42: Reinforcing high growth: Women's Wear
Reinforcing high growth : Women’s Wear Pioneering Premium Leggings, Lingerie and Brands mantra ‘Effortless You’, communicates Outerwear brand with a huge range of wardrobe exactly to reach out to the primary consumer essentials ho seek ease with a fashionable edge base, i.e. young women, fulfilling
Slide 43: Reinforcing high growth: Athleisure
Reinforcing high growth : Athleisure There’s a fun side to everyone! Bumchums range of T- shirts, Bermudas, Tracks and Muscle Tees is designed for those who hate seriousness High Growth Potential in health and lifestyle focused Active wear segment. Industry has grown by ~13% CAGR since 2011 42
Slide 44: Reinforcing high growth: Thermal Wear
Reinforcing high growth : Thermal Wear ✓ Ideal companion during winter months. Now, you can stay warm and stylish in winters ✓ Thermocot fabric is knitted on hi-tech machines with a perfect ✓ Exquisite range of thermal wear, knitted on hi-tech machines to give blend of Cotton and Polyster to give a
Slide 45: Scaling high margin revenue streams
Scaling high margin revenue streams One of the Largest Premium Brand of Innerwear, Leisurewear, Sportswear, Activewear & Athleisure, for Men & Women Macroman M-Series and Macrowoman W-Series have top notch fabrics, are styled by cutting edge designers & available in a variety of colors and pattern 4
Slide 46: Distribution Network
Distribution Network Cc RUPA
Slide 47: Consumers are increasingly in pursuit of experiences
Consumers are increasingly in pursuit of experiences Affordability Scalability Brand Distribution 1 2 3 4 ✓ Broad & unparalleled product ✓ An integrated & efficient ✓ Reinforcing high growth ✓Expanding retail footprint portfolio manufacturing process segments ✓Adopting digital ✓ Brands across a wide
Slide 48: Expanding retail footprint
Expanding retail footprint 1,50,000+ Strong position in Eastern India. Strategy: Foray in newer markets by Retail Outlets Gaining significant presence in appointing new distributors and building the North followed by the West, experienced team while offering 1,500+ establishing a Pan- India presence
Slide 49: Digitisation & Information Technology
Digitisation & Information Technology Digital Transformation Areas Upgraded Channels Digital Transformation Core Enterprise solution with SAP F&VB S4 HANA Implementation Manual Costing Details flow from Auto PR Derivation worth Pricing Upgrade Channels Revamp of B2C Sales Channel Rupa Online Store A
Slide 50: Growth Initiatives
Growth Initiatives Cc RUPA
Slide 51: Recent Strategic Initiatives
Recent Strategic Initiatives Rapid expansion in Investing in modern high potential areas trade & e-commerce Expanding Focus on high EBO network margin business roll out 150 more increase share in EBOs in the next premium category 2-3 years Re-organising Scaling up the distribution Athleisure channel
Slide 52: Rapid expansion in high potential areas
Rapid expansion in high potential areas Medium Term Target 3X - 4 Years 4X - 3 Years 5X - 3 Years 5X - 3 Years +13% 144 128 +3% 39 40 -36% 33 21 +9% 12 13 X-Factor Areas Modern Trade Exports Govt. Business West Bengal, Maharashtra [Ex Mumbai Focus on e-commerce via partnerships International busines
Slide 53: Expanding EBO network
Expanding EBO network Exclusive Brand outlets Our maiden flagship store at Camac Street, Kolkata Current store count : 29 EBO Strategy: › Rupa flagship store of 1000 sq ft launched in Kolkata › Create small to mid sized Franchisee Store Model with best-in-class SOPs › Build and nurture, competent Fr
Slide 54: Investing in modern trade and e-commerce
Investing in modern trade and e-commerce Modern Online Presence on all e-commerce sites Current store count: 1500+ Retail Apps & Strategy: Trade portals › E-commerce Industry is poised to grow at 13% Strategy: CAGR (Nielsen survey) › Increase Brand Footprints across all › Develop a robust tech-based
Slide 55: Focus on exports and new markets
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 team
Slide 56: Re-organising the distribution channel
Re-organising the distribution channel Raw Materials Retailers Semi Wholesalers WHOLESALE DIRECT Distributors CHANNEL CHANNEL Retailers Product Engineer Retailers Company’s Sales Representatives Strategic move towards Direct Distribution channel for premium & super premium product categories Advanta
Slide 57: Historical Performance
Historical Performance Cc RUPA
Slide 58: Historical P&L Highlights
Historical P&L Highlights Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,475 257 269 192 1,313 175 1,149 1,143 975 889 156 112 151 155 109 800 H2 661 643 487 114 74 H2 91 89 62 54 54 41 H2 36 24 513 586 102 113 66 80 25 H1 488 488 500 H1 60 60 48 H1 38 38 29 FY19 FY20 FY21 FY22 FY23 FY19 F
Slide 59: Key Performance Ratios
Key Performance Ratios ROCE (%) ROE (%) Debt to Equity (X) 30.8% 26.8% 28.4% 23.8% 0.38 0.40 0.30 20.2% 0.27 14.2% 13.6% 11.0% 0.19 8.5% 6.0% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Working Capital Days Inventory Debtors Creditors 175
Slide 60: Sharing profits consistently
Sharing profits consistently Payout as a % of Profits 24.5% 30.1% 32.1% 33.2% 30.3% 27.7% 32.2% 38.6% 22.7% 12.5% 4.5% Mark of gratitude to our shareholders during the pandemic: Special Dividend of 500 Rs. 2/- per equity share 200 300 300 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15 FY16 FY17
Slide 61: Key Takeaways
pz _ BUMCHUMs Key Takeaways Cc RUPA
Slide 62: Huge Industry Potential
Huge Industry Potential Men’s Innerwear Market Women’s Innerwear Market 6% 12% CAGR CAGR 17,894 56,364 8,500 4,300 14,500 7,000 2010 2015 2027E 2010 2015 2027E Key Growth Triggers Emergence of purpose-specific Increasing income levels Growth in penetration of Changing Fashion Increasing penetration
Slide 63: Rupa & Co. – Key Takeaways
Rupa & Co. – Key Takeaways #1 undisputed knitwear Indian brand Diversifies product offering across demographics & price segments Wide bouquet of brands with strong brand recall developed through consistent investment in ad spends Efficient business model with key focus on value addition, quality con
Slide 64: Thank You
CIN: L17299WB1985PLC038517 Mr. Sumit Khowala sumit.khowala@rupa.co.in Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in Mr. Sumeet Khaitan Thank You +91 7021320701 sumeet.khaitan@linkintime.co.in