Q4FY22 Quarterly Result Announced for Renaissance Global Ltd.
Renaissance Global declares Q4FY22 result: Total Income stood at Rs. 2,208.7 crore higher by 8% Direct-to-Consumer business revenues up 91% to Rs. 123.8 crore EBITDA stood at Rs. 200.5 crore, with margins at 9% PAT improves to Rs. 106.5 crore Total Income stood at Rs. 536.0 crore from Rs. 584.2 crore down by -8% On a like-to-like basis, total income growth stood at 28% YoY Branded Jewellery business revenues up 33% to Rs. 119.8 crore Direct-to-Consumer business revenues up 31% to Rs. 29.5 crore EBITDA at Rs. 36.8 crore as against Rs. 34.1 crore, up by 8% EBITDA Margins stood at 6.9% as against 5.8%, higher by 102 bps PAT, after discontinued operations, stood at Rs. 21.3 crore as against Rs. 15.7 crore, higher by 36% Commenting on the performance for Q4 & FY22, Mr. Sumit Shah – Vice Chairman and Global CEO, Renaissance Global Limited said, “We are pleased to share that we have ended the year with a strong business and financial performance, with some key strategic developments during the year. Our like-to-like total income growth in FY22 stood at 32% and PAT grew by 130%. Performance was driven by robust contribution from our high-margin branded jewellery segment and strong demand from our key geographies. While our EBIDTA margins improved over same quarter last year, we saw certain inflationary pressures in our key input costs such as diamonds. This had a slight bearing on our profitability performance during the quarter. However, we expect this impact to be transient in nature as we pass on some of these cost increases to our customers. Overall, our EBITDA margins during the year stood at 9.1%. The branded jewellery segment is a key growth lever for us. Our revenues in this segment marked a notable increase of 37% YoY in FY22 driven by healthy uptick in retail consumption and improved demand environment in global markets. Our recent licensing agreement with one of North America's most popular sports league, National Football League (NFL) to design a unique jewellery collection will further boost revenues in this segment over the coming years. We are undertaking several strategic initiatives towards growing our branded jewellery business model. In one such move, during the quarter, we successfully acquired the assets of Four Mine Inc (FMI). FMI specializes in the sale of branded lab grown diamond engagement rings and this transaction will give us a strong foothold in this space, while also improving the operating margin of the business through supply chain efficiencies. On the D2C front, we are experiencing consistent improved traction in new consumer engagements as well as seeing increased repeat customer wins across our six websites. The contribution from repeat customers came in at 17% in Q4 FY22. In the coming months, we'll be expanding our D2C portfolio further with the launch of new websites, including the NFL website. I am also happy to share that we are developing a new headquarters and fulfilment centre in New York, USA, with state of the art distribution facilities, merchandising centre, sales and after sales support functions to support our growth in this segment. Our engagement with world renowned brands, our extensive experience in product conceptualization, design capabilities and distribution position us well to leverage on the many growth opportunities in the global branded jewellery industry. In a normalised environment, we look forward to delivering improved performance.” Result PDF31-05-2022