Raymond Lifestyle Ltd

- No explicit mention of any current or future fundraising through debt or equity was made during the call. - The focus discussed was on internal improvements such as operational efficiencies, store rationalization, and growth strategies. - The company is engaging a consultancy to develop a long-term strategy, with a plan ready around November 2026, which may clarify any future capital raising. - No direct commitments or plans to raise capital via debt or equity were disclosed in the Q&A section reviewed. - The management emphasized sustainable profitable growth and strengthening working capital management rather than external funding at this stage.

- Capex for the current year is around INR 180 crores. - Breakdown of current capex: - INR 50 crores for SAP implementation. - INR 60 crores for a new garmenting factory in Hyderabad. - Remaining amount for new stores and plant maintenance. - Capex for the next year is expected to remain at similar levels (~INR 180 crores). - Strategic investment includes hiring a top consultancy firm to build a 3-year long-term strategy. - The strategy project is planned to start around May 20-25 or by June 1, spanning 12-14 weeks, with a plan presentation targeted for November. - Focus this year is on consolidation and profitable growth; major expansion or new strategy execution expected post-strategy completion in Q3/Q4.

- Branded Apparel segment is expected to sustain double-digit growth driven by urbanization and discretionary spending despite macroeconomic challenges. - Garmenting business outlook is positive with solid order books and recovery in US and European markets; next year expected to be better than current year. - Branded Textile (fabric) segment projected to grow at low single-digit volume growth with focus on value growth, casualization, and expanding to lower-tier cities and exports. - Store additions for FY27 aim at gross addition of over 100 stores with net addition of 30-40 stores, focusing on profitable and sustainable growth. - Working capital improvements targeted with plans to reduce NWC days further next financial year, aiding operational efficiency. - Strategy consultancy engaged to define long-term growth plan, expected by around November 2026, aiming to identify key growth levers for doubling or tripling business in coming years.

- The company aims for double-digit top-line and bottom-line growth even in the "Year of Consolidation" FY27. - EBITDA margin is expected to be sustainable with factory efficiencies and operational leverage. - Branded Apparel segment is expected to continue double-digit growth driven by premiumization and casualization strategies. - Garmenting business is projected to have strong growth next year, aided by recovery in US and European orders, with top-line growing high double digits and bottom-line growing at a faster pace. - Branded Textile business growth is expected in the low single digits volume-wise, but with premiumization and value growth focus aiming for improved profitability over time. - Working capital improvements targeted to reduce NWC days, which should aid profitability. - Margin expansion supported by cost control on employee and manufacturing expenses, and operational efficiencies.

- Satyaki Ghosh mentioned that the order books are solid for the garmenting business. - The first quarter order books are completely full. - They are currently booking orders for the latter half of the second quarter. - The US orders are coming back, and Europe markets are responding positively. - Unless there is a major disruption like escalation in the Middle East conflict or higher US tariffs, growth in garmenting business is expected to continue. - Next year is expected to be much better than this year due to improved order flows. - Focus on reducing US dependency by expanding into UK and European markets, aided by FTAs. - Overall, order pipeline and pending orders indicate strong demand and growth potential in garmenting.