Rupa & Co. Ltd. · NSE:RUPA
Rupa & — Q1 FY23 Earnings Presentation
60 slides from Rupa &'s earnings presentation, Aug 12, 2022
Slide 1: Stock exchange cover letter for investor presentation
ms Ga RU ” A "1 RUPA & COMPANY LIMITED Date: August 12, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5 Floor, Dalal Street Plot No. C/1, G Block Mumbai - 400 001 Bandra Kurla Complex, Bandra (E) Mumbai - 400 051 Ref: NSE Symbol- RUPA / BSE Scri
Slide 2: Q1 FY23 Investor Presentation
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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 Company Q1 FY23 Business Overview Result Model Highlights Growth ESG & CSR Historical Initiatives Initiatives Financials
Slide 5: Company Overview
Company Overview caus
Slide 6: #1 undisputed knitwear Indian brand
#1 undisputed knitwear indian brand 7,00,000+ 1,500+ Finished goods Dealers pieces per day 1,50,000+ 100+ Registration of trademark’s Retail Outlets both Nationally & Internationally 9,000+ 18 SKUs Sub Brands
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: Brand to recon 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 14: Q1 FY23 Result Highlights
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Slide 15: Q1 FY23 Performance Highlights
Q1 FY23 Performance Highlights Revenue Rs. 214.7 crores EBITDA Margin Rs. 18.5 crores 8.6% PAT Margin Rs. 12.5 crores 5.8% All figures on Consolidated Basis
Slide 16: Growth in revenues and profitability
Growth in revenues and profitability Revenue from Operations EBITDA & EBITDA Margin PAT & PAT Margin 19.3% 8.6% 13.4% 5.8% -1.5% -56.1% -57.2% 218 215 42 29 19 13 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 (Rs. in Cr) *consolidated financials 15
Slide 17: Q1 FY23: Sales mix
Q1 FY 23 : Sales mix Region-wise Revenue split Gender-wise Revenue split 6% 4% 8% 10% 40% 19% 2% 25% 86% East North East Men North Women West & Central Kids South Overseas
Slide 18: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crs.) Q1 FY23 Q1 FY22 Y-o-Y FY22 Total Revenue 214.7 218.0 -2% 1,474.1 Total Raw Material 64.5 74.3 632.7 Subcontracting Expenses 69.9 59.3 327.4 Gross Profit 80.3 84.5 514.0 Gross Profit Margin (%) 37.4% 38.7% 34.9% Employee Expenses 17.2 14.4 68.1 Other
Slide 19: Business Model
j g 5 , 4 ive Business Model | sees MINI BRIEFS vailable in 10 colours §——— CHARCOAL, LOCATION @ NORWAY
Slide 20: 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 21: 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 22: 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 Super Premium Price Segments Segment Premium Segment Gamut of products from innerwear to casual and athleisure wear (Inner wear + Thermal wear + Active
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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
Slide 31: Reinforcing high growth: Thermal Wear
Reinforcing high growth : Thermal Wear Plan to cross Rs. 200 crores of Thermal wear revenue in next 2 years ✓ 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, knitte
Slide 32: 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
Slide 33: Strategic & Consistent investments in Branding
Strategic & Consistent investments in Branding Strong brand recall developed through consistent investment in advertising and brand promotion strategies Over Rs. 1,000 crores spent on brand development in the last decade Brand Development Cost (Rs. In Cr) 86 82 71 62 53 20 2018 2019 2020 2021 2022 Q
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 ✓ Reinforcing high growth ✓Expanding retail footprint portfolio manufacturing process segments ✓Adopting digital ✓ Brands across a wide
Slide 35: 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 36: 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 37: Growth Initiatives
MACROMAN @ Growth Initiatives
Slide 38: 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 + super 2 years Re-organising premium category Scaling up the distribution Athl
Slide 39: 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 FY23 Target Growth - 45% Growth - 60% Growth - 70% Growth - 55% Q1 FY22 Q1 FY23 +31% Revenue 34 (in Rs cr) 26 +140% +122% 13 11 +33% 5 5 2 3 X-Factor Areas Modern Trade Exports Govt. Busine
Slide 40: Expanding EBO network
Expanding EBO network Exclusive Brand outlets Our maiden flagship store at Camac Street, Kolkata Current store count : 23 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 41: Investing in modern trade and e-commerce
Investing in modern trade and e-commerce Modern Online Current store count: 150+ Retail Apps & Presence on all e-commerce sites Trade portals Strategy: Strategy: › Increase Brand Footprints across all › E-commerce Industry is poised to grow at 13% brands creating special product line more CAGR (Niel
Slide 42: 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 43: 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 44: Demerger of Licensed Brands
Demerger of Licensed Brands Market Presence Consolidation Synergies 01 02 03 Utilizing the current Consolidation of similar Cost savings in market presence and premium businesses to marketing, distribution customer base to access execute more efficiently expenses, benefits of the premium market and
Slide 45: ESG & CSR Initiatives
ESG & CSR Initiatives
Slide 46: Why does ESG matter to us?
Why does ESG matter to us? Sustainability is something that Investors are demanding, Customers are expecting, Shareholders Collaboration with EY to implement ESG are relying on, & Employees are valuing. ESG maturity assessment Good financial returns, doing business & gap analysis against 1 efficient
Slide 47: 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 • Corporate social responsibility embedded in our Values 28% 36% • Fosters a culture of honesty, integrity and accountability
Slide 48: Committed to Sustainable Growth
Committed to Sustainable Growth CSR Vision : improving lives in pursuit of collective development and environmental sustainability Energy and GHG Management Responsible Materials Our products are made from 100% viscose The steam generated from the boiler is fibre and hence biodegradable captured and
Slide 49: Care for our People
Care for our People Employee Strength Creating fulfilling career opportunities Permanent Employees : 1,152 Performance Improvement Plan helps our employees reach desired productivity levels through specific project work and close guidance Contractual Employees: 1,420 Gender Diversity Imparted produc
Slide 50: 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 are committed to society, ecology and environment. Our Focus Area
Slide 51: CSR Activities
CSR Activities Education & vocational training for the underprivileged students Women’s Day Celebration Supporting Education We operate with a strong belief that giving back to the society and contributing towards its sustainable development is every organizations responsibility.
Slide 52: CSR Activities
CSR Activities Ambulance Donation Blanket Distribution Upliftment of Tribal society
Slide 53: Historical Performance
Historical Performance
Slide 54: Historical P&L Highlights
Historical P&L Highlights Revenue (Rs. In Cr) EBITDA (Rs. In Cr) PAT (Rs. In Cr) 1,474 257 269 192 1,313 175 1,120 1,149 975 888 156 112 155 151 155 109 800 H2 698 661 86 487 114 74 H2 99 91 62 54 H2 58 36 24 488 488 513 586 102 113 66 80 H1 422 H1 56 60 60 38 38 H1 29 FY18 FY19 FY20 FY21 FY22 FY18
Slide 55: Key Performance Ratios
Key Performance Ratios ROCE (%) ROE (%) Debt to Equity (X) 30.8% 26.8% 28.4% 23.8% 0.38 0.40 25.1% 18.4% 0.30 20.2% 14.2% 0.23 13.6% 11.0% 0.19 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Working Capital Days Inventory Debtors Creditors 17
Slide 56: 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% Mark of gratitude to our shareholders during the pandemic: Special Dividend of 500 Rs. 2/- per equity share 200 300 300 300 300 275 275 275 250 200 300 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 57: Key Takeaways
Key Takeaways
Slide 58: 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 59: 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 60: Thank You
Thank You CIN: L17299WB1985PLC038517 Mr. Sumit Khowala sumit.khowala@rupa.co.in Mr. Rajesh Agrawal +91 9967491495 rajesh.agrawal@linkintime.co.in Mr. Nachiket Kale +91 9920940808 nachiket.kale@linkintime.co.in