Raymond Limited · NSE:RAYMOND
Raymond — Q1 FY2020 Earnings Presentation
43 slides from Raymond's earnings presentation, August 2019
Slide 1: Result Presentation Quarter ended 30th June, 2019
Result Presentation Quarter ended 30th June, 2019
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 Ind-As 116 Impact 14 Performance of Segments 19 Raymond Realty 35 Way Forward 41 3
Slide 4: Market Overview
si Raymon Market Overview
Slide 5: Market Overview
Market Overview Textile • Demand remained sluggish across markets • Trade channels mainly impacted due to continued liquidity crunch Apparel & Retail • Growth likely to be driven by store expansion among apparel retailers • Moderate SSSG despite early EOSS mainly due to subdued consumer sentiments •
Slide 6: Initiatives and Awards
si Raymon Initiatives and Awards
Slide 7: Initiatives
Initiatives Broadening Retail Horizon through Asset light expansion Ethnix Mini TRS 6 New Ethnix Stores in Expansion of the small Q1FY20, totaling to store formats continues - 8 stores as at Jun’19 308 stores as at Jun’19 Style Play Tailoring Hubs 6 New Style Play Stores 3 tailoring hubs added in in
Slide 8: Awards
Awards Digital Excellence Trescon Big CIO Awards, 2019 Annual Report Mobility Solution of the year Award for exemplary Won Multiple awards for Award for Midas App technology initiatives & Annual Report from LACP at CSCMP IT innovation and IR Magazine 8
Slide 9: Financial Highlights
si Raymon Financial Highlights
Slide 10: Financial Highlights – Q1FY20
Financial Highlights – Q1FY20 Revenue (₹ Cr) EBITDA (₹ Cr) & EBITDA margin % 14% 8.3% Net Profit (₹ Cr) 1,289 1,467 7.1% 107 105 -2% 0 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 -12 Q1 FY19 Q1 FY20 Net Debt to Equity Ratio NWC days* A&SP & % to revenue 3.1% 2.8% 1.1 1.1 101 102 40 41 Jun'18 Jun'19 Jun'18 Jun'1
Slide 11: Consolidated Results
Consolidated Results Pre Ind-AS 116 Particulars (INR Cr) Q1 FY20 Q1 FY19 Y-o-Y% Net Revenue 1,467 1,289 13.8% Net Sales 1,435 1,251 14.7% EBITDA 105 107 -2.3% EBITDA margin 7.1% 8.3% -118bps PBT before exceptions -7 8 - PBT margin -0.4% 0.6% -106 bps Net Profit -12 0 - Profit margin -0.8% 0% -81 bps
Slide 12: Segment Results – Q1 FY20
Segment Results – Q1 FY20 Pre Ind-AS 116 Particulars (INR Cr) Revenue Growth EBITDA EBITDA Growth (YoY%) (INR Cr) (YoY%) (INR Cr) Margin Branded Textile 600 2% 30 5.0% - 245 bps Branded Apparel 313 12% 16 5.1% 275 bps Garmenting 190 16% 3 1.6% -431 bps High Value Cotton 174 11% 27 15.4% 303 bps Shir
Slide 13: Balance Sheet & Performance Indicators (Pre Ind-AS 116)
Balance Sheet & Performance Indicators (Pre Ind-AS 116) Particulars (INR Cr) Q1 FY19 Q1 FY20 Net Worth 1,860 2,003 Net Debt 2,135 2,303 Cash Flow from Operations -135 -94 Free Cash Flow -216 -215 Key Ratios Jun'18 Jun'19 Net Debt / Equity 1.1 1.1 NWC Days# 101 102 NWC Days excl. Real Estate# 102 97
Slide 14: Ind-As 116 Impact
si Raymon Ind-As 116 Impact 14
Slide 15: IND AS 116 – Overview (effective from 1st April 2019)
IND AS 116 – Overview (effective from 1st April 2019) • No distinction between Finance Lease & Operating Lease • Accounting Treatment • All leases to be recognized in the balance sheet as Asset and Liability • ‘Lease Obligation’ is measured at present value of lease payments to be made over lease te
Slide 16: IND AS 116 – Impact on Financials
IND AS 116 – Impact on Financials Balance Sheet Income Statement IND IND IND AS17 IND AS116 AS17 AS116 Assets - Revenue - Other Expenses - Liabilities - EBITDA - Depreciation - Off Balance Assets EBIT - Sheet – Rights / - Obligations Liabilities Interest - PBT - 16
Slide 17: IND AS 116 – Raymond Adoption
IND AS 116 – Raymond Adoption • Raymond has seamlessly transitioned to IND AS 116 w.e.f 1st April 2019 • No re-statement of past period • Raymond has lease terms ranging from 3 to 9 yrs on average • Non cancellable minimum period – as per the agreements 17
Slide 18: IND AS 116 – Lease Impact Summary
IND AS 116 – Lease Impact Summary Particulars (INR Cr) Pre IND AS 116 Impact Post IND AS 116 Net Revenue 1,467 3 1,470 Net Sales 1,435 (0) 1,435 EBITDA 105 39 144 EBITDA margin 7% 3% 10% Depreciation 50 31 81 EBIT 55 8 63 Interest Cost 61 12 74 PBT before exceptions (7) (4) (11) PBT margin -0.4% -0.
Slide 19: Performance of Segments
si Raymon Performance of Segments 19
Slide 20: Branded Textile
Branded Textile
Slide 21: Branded Textile
Branded Textile Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 600 589 2% EBITDA 30 44 -31% EBITDA margin 5.0% 7.5% -245 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 40 Cr and EBITDA Margin is 6.7% • Modest topline growth of 2% due to consumption slowdown on account of subdued consumer sentiments
Slide 22: Branded Textile
Branded Textile Suiting Suiting grew by 6% - Lower secondary sales and liquidity crunch impacted our trade channels However growth was led by higher volumes on account of expansion to new smaller outlets through low priced products B2C Shirting Shirting de-grew by 12% mainly due to lower off-t
Slide 23: Branded Apparel
Branded Apparel
Slide 24: Branded Apparel
Branded Apparel Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 313 278 12% EBITDA 16 7 143% EBITDA margin 5.1% 2.4% 275 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 40 Cr and EBITDA Margin is 12.8% • Branded Apparel growth driven by Strong growth in Park Avenue and Parx Increased Channel penet
Slide 25: Retail Network
Retail Network
Slide 26: Exclusive Retail Network
Exclusive Retail Network 2.4 mn 2.4 mn 42 additions sq ft sq ft 10 32 1,458 1,444 0 20 1 360 EBO 335 7 MTM * 68 28 closures 67 TRS 1,041 1,031 Jun19 Mar 18 TRS MTM EBO TRS MTM EBO Jun 19 • During the quarter Added 42 new stores and closed 28 stores 95% of stores added on Franchisee basis in line
Slide 27: Strong Distribution Network
Strong Distribution Network Branded Textile 4 • 20,000+ points of sale across 52 4 600+ cities and towns 16 24 • 180+ Wholesalers 46 54 • 1,340+ MBOs 1 • Across Raymond Shop (TRS) - 49 158 8 1 Tier I to VI towns 67 1 81 62 27 80 1 Branded Apparel 18 • Presence in over 500 cities and 14 towns 228 • 3
Slide 28: Garmenting
Garmenting
Slide 29: Garmenting
Garmenting Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 190 164 16% EBITDA 3 10 -68% EBITDA margin 1.6% 6.0% -431 bps No impact of Ind-AS 116 • Growth led by exports to US and Japan markets • EBITDA margin declined to 1.6% mainly due to o Change in product mix which impacted the gross margin
Slide 30: High Value Cotton Shirting
High Value Cotton Shirting
Slide 31: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 174 158 11% EBITDA 27 19 38% EBITDA margin 15.4% 12.4% 303 bps No impact of Ind-AS 116 • Sales growth led by yarn sales from Amravati plant • EBITDA margin improvement led by improved product mix and operating efficienci
Slide 32: Tools & Hardware Auto Components
Tools & Hardware 32 Auto Components
Slide 33: Tools and Hardware
Tools and Hardware Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 91 96 -5% EBITDA 7 8 -16% EBITDA margin 7.3% 8.3% -99 bps Post Ind-AS; EBITDA for Q1FY20 is Rs 7 Cr and EBITDA Margin is 8.1% • Revenue de-growth mainly due to slowdown in domestic files business • EBITDA margin was lower mainly
Slide 34: Auto Components
Auto Components Particulars (INR Cr) Q1 FY20 Q1 FY19 % Chg Net Sales 68 63 8% EBITDA 13 15 -11% EBITDA margin 19.9% 24.0% -419 bps No impact of Ind-AS 116 • Growth driven from international customers and supported by new customers & products • EBITDA Margin impacted due higher contribution from lowe
Slide 35: Raymond Realty
35 raymond REALTY an raymond
Slide 36: Raymond Realty – Go Beyond
Raymond Realty – Go Beyond Raymond’s maiden venture into Real Estate Development Overall 20 acres of residential development Project Phase 1: ~14 acre of development Phase 1 Project • Total 10 towers with ~2.8 mn sq.ft of saleable area Details • Total 2BHK units available for sale: 2,800 • RERA regi
Slide 37: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system
Slide 38: Co- Creators
Co- Creators Master Architect Structural Consultant Interior Designer Construction Contractor Landscape Green Consultant
Slide 39: Financial Update – KPI’s
Financial Update – KPI’s Particulars FY19* Q1 FY20 Till June-19 Bookings: - No. of bookings 238 343 581 - Area (Mn. Sq.ft.) 0.23 0.34 0.57 - Value of Bookings (Rs. Cr.) 243 367 612 Customers Collection (Rs. Cr.) 6 47 53 Capital Employed^ 235 79 314 Particulars(₹ Cr) FY19* Q1 FY20 Sales 20 60 EBITDA
Slide 40: Construction Update
Construction Update Tower - A Tower - B Tower - C Excavation, Plum & PCC, Foundations completed for Tower A, B & C Construction activities are as per construction schedule
Slide 41: Way Forward
41 Way Forward si Raymon
Slide 42: Way Forward
Way Forward • Domestic consumption remains impacted as the consumer sentiment remains subdued and liquidity concerns continues to affect the trade channels • Overall, we expect the quarter to be modest in terms of growth & consumer sentiment and expect pick up in demand from mid August with onset of
Slide 43: Thank You
an raymond Thank You www.raymond.in