{"id":130798,"date":"2022-06-24T08:01:22","date_gmt":"2022-06-24T12:01:22","guid":{"rendered":"https:\/\/44.250.171.167\/?p=130798"},"modified":"2022-10-06T04:21:50","modified_gmt":"2022-10-06T08:21:50","slug":"renaissance-global-ltd-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/renaissance-global-ltd-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"Renaissance Global Ltd Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Renaissance Global Ltd Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/D5a_xmWE2AE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><strong>Key highlights from Renaissance Global Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/RGL\/\">RGL<\/a>) Q4 FY22 Earnings Concall<\/strong><\/h2>\n<p><strong>\u00a0<\/strong><\/p>\n<h3><strong>Q&amp;A Highlights:<\/strong><\/h3>\n<p><strong>Hitesh Chauhan &#8211; H2 Investment \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>China operation update?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>RGL tested Enchanted Disney Fine Jewellery program with a key retailer in China.\n<ul>\n<li>The product did not perform up to expectations and is not moving forward currently.<\/li>\n<li>Not optimistic about the opportunity in China due to the program not performing up to expectations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Bhavya Jain &#8211; Sarath Capital \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>RGL\u2019s thinking behind setting up a large headquarters and fulfillment center in New York?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>Current location of RGL\u2019s headquarter and fulfillment center at Manhattan of 20,000 sq. ft. is relatively expensive to do significant e-commerce fulfillment.<\/li>\n<li>RGL is moving to 50,000-55,000 sq. ft. facility in New York.\n<ul>\n<li>This will allow to grow the fulfillment capabilities for e-commerce in a meaningful way.<\/li>\n<\/ul>\n<\/li>\n<li>The rental expenses remain the same.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Aakash Javeri &#8211; Perpetual Investment \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Operating EBITDA margins in the lab grown diamond jewelry segment?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>It\u2019s a small business and at the time of acquisition the gross margin was in the mid 30s.<\/li>\n<li>Now it\u2019s at mid 40s.<\/li>\n<li>Long term goal is to have gross margins close to 50% and operating margin in the 15% range.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Kruttika Mishra &#8211; Sharekhan \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Reason for margins being flat at 5.6% in 4Q22 and EBITDA margin outlook for the next two years?<\/li>\n<\/ul>\n<p><strong>Hitesh Shah \u2013 Managing Director<\/strong><\/p>\n<ul>\n<li>Had a lot of input cost pressure with diamond prices rising.<\/li>\n<li>Going forward, as the costs are passed to the customer, RGL expects EBITDA margins to come back to the 9-10% range.<\/li>\n<li>In the next 2-3 years, as the divisional mix changes more towards the direct to consumer, the margins should reach the early double digits.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Kruttika Mishra &#8211; Sharekhan \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Revenue outlook?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>The goal would be to split the overall business 50:50 between customer brands and branded jewelry in the next 3-4 years.<\/li>\n<li>And in branded jewelry, the goal will be to have a 50:50 split between B2B and D2C.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Kruttika Mishra &#8211; Sharekhan \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Capex for FY23?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>A significant amount of capex of around INR30 crores is ongoing currently for the setup of RGL\u2019s fulfillment center and sales office at New York.<\/li>\n<li>Other than this, there might be some minor capex to upgrade manufacturing facility.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Kruttika Mishra &#8211; Sharekhan \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Demand outlook in the US and other RGL\u2019s operating regions?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>Saw some softness in March and April in retail sales on a YoY basis.<\/li>\n<li>In May, YoY comparisons look better.<\/li>\n<li>Seeing lean inventory across all of RGL\u2019s retail customers.<\/li>\n<li>Despite sales being weaker, at retail level, seeing healthy demand for RGL products.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Kalpesh Parekh &#8211; JMS Advisory Service \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Working capital expectation?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>Expectation would be to go below 189 days going forward.\n<ul>\n<li>Growing businesses require less than 5 months of inventory.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>\u00a0\u00a0<\/strong><\/p>\n<p><strong>Hiten Boricha &#8211; Joindre Capital \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Any plans to reduce debt?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>Will see reduction in net debt meaningfully over the next 2-3 years.<\/li>\n<li>From FY24, RGL also expects reduction in absolute debt number.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Hiten Boricha &#8211; Joindre Capital \u2013 Analyst<\/strong><\/p>\n<ul>\n<li>Savings from the new New York facility?<\/li>\n<\/ul>\n<p><strong>Sumit Shah \u2013 Chairman<\/strong><\/p>\n<ul>\n<li>The question is not for savings but the ability to growth RGL\u2019s e-commerce business.<\/li>\n<li>The new facility is for investing in fulfillment capabilities to meet the sales targets.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Renaissance Global Ltd (RGL) Q4 FY22 Earnings Concall \u00a0 Q&amp;A Highlights: Hitesh Chauhan &#8211; H2 Investment \u2013 Analyst China operation update? Sumit Shah \u2013 Chairman RGL tested Enchanted Disney Fine Jewellery program with a key retailer in China. The product did not perform up to expectations and is not moving forward currently. [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Renaissance Global Ltd Q4 FY22 Earnings Conference Call Insights #RGL #Q4","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,12],"tags":[9950],"class_list":["post-130798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-other-industries","tag-jewellery"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":137853,"url":"https:\/\/alphastreet.com\/india\/renaissance-global-ltd-rgl-q2-fy23-earnings-concall-transcript\/","url_meta":{"origin":130798,"position":0},"title":"RENAISSANCE GLOBAL LTD (RGL) Q2 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"November 11, 2022","format":false,"excerpt":"RENAISSANCE GLOBAL LTD (NSE:RGL) Q2 FY23 Earnings Concall dated Nov. 11, 2022 Corporate Participants: Anoop Poojari -- CDR India Sumit Shah -- Chairman and Global CEO Hitesh Shah -- Managing Director Analysts: Devanshu Bansal -- Emkay Global -- Analyst Pavan Kumar -- Ratnatraya Capital -- Analyst Umang Shah -- India\u2026","rel":"","context":"In &quot;Consumer&quot;","block_context":{"text":"Consumer","link":"https:\/\/alphastreet.com\/india\/category\/consumer-stocks\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":152707,"url":"https:\/\/alphastreet.com\/india\/renaissance-global-ltd-q1fy24-42-fall-in-profits\/","url_meta":{"origin":130798,"position":1},"title":"Renaissance Global Ltd Q1FY24; 42% fall in Profits","author":"Karan_Singh","date":"August 10, 2023","format":false,"excerpt":"Renaissance Global Ltd (RGL) was incorporated in 1989 as Mayur Gems & Jewellery Exports Pvt Ltd. It is engaged in designing and manufacturing of jewellery in gold, silver, platinum, studded with polished diamonds, semi-precious and precious stones. It has manufacturing offices in Mumbai and Gujarat with subsidiaries in the US,\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/08\/image-678.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":148373,"url":"https:\/\/alphastreet.com\/india\/renaissance-global-ltd-rgl-q4-fy23-earnings-concall-transcript\/","url_meta":{"origin":130798,"position":2},"title":"RENAISSANCE GLOBAL LTD (RGL) Q4 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"May 29, 2023","format":false,"excerpt":"RENAISSANCE GLOBAL LTD (NSE:RGL) Q4 FY23 Earnings Concall dated May. 29, 2023 Corporate participants: Jenny Rose -- Sumit Shah -- Chairman & Global CEO Hitesh Shah -- Managing Director Analysts: Pavan Kumar -- Ratnatraya Capital -- Analyst Devanshu Bansal -- Emkay Global -- Analyst Chirag Vekaria -- Budhrani Finance --\u2026","rel":"","context":"In &quot;Consumer&quot;","block_context":{"text":"Consumer","link":"https:\/\/alphastreet.com\/india\/category\/consumer-stocks\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130726,"url":"https:\/\/alphastreet.com\/india\/aether-industries-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":130798,"position":3},"title":"Aether Industries Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 20, 2022","format":false,"excerpt":"Key highlights from Aether Industries Ltd (AETHER) Q4 FY22 Earnings Concall \u00a0 Q&A Highlights: Gagan Thareja - ASK Investment Managers - Analyst Would growth get constrained due to lack of capacity for the first 3 quarters of FY23? Rohan Desai - Whole-time Director Currently at 80% of utilization. Constantly debottlenecking\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128789,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":130798,"position":4},"title":"Titan Company Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 4, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=sUcRdyUV6X0 Key highlights from Titan Company Ltd (TITAN) Q4 FY22 Earnings Concall Q&A Highlights: Abneesh Roy from Edelweiss asked about Fastrack sales dipping 32% in FY22 and the way forward. Suparna Mitra CEO Watches said Fastrack store format is in the process of being reimagined and that\u2019s why no stores\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":140795,"url":"https:\/\/alphastreet.com\/india\/renaissance-global-ltd-rgl-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":130798,"position":5},"title":"RENAISSANCE GLOBAL LTD (RGL) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 9, 2023","format":false,"excerpt":"RENAISSANCE GLOBAL LTD (NSE:RGL) Q3 FY23 Earnings Concall dated Feb. 08, 2023. Corporate Participants: Mr. Jenny Rose\u00a0--\u00a0Investor Relations Mr. Sumit Niranjan Shah\u00a0--\u00a0Non-Executive Chairman and Global Chief Executive Officer Mr. Hitesh Mahendrakumar Shah\u00a0--\u00a0Managing Director Analysts: Amit Doshi\u00a0--\u00a0Care PMS -- Analyst Pavan Kumar\u00a0--\u00a0RatnaTraya Capital. -- Analyst Aakash Javeri\u00a0--\u00a0Perpetual Investment Advisors. -- Analyst\u2026","rel":"","context":"In &quot;Consumer&quot;","block_context":{"text":"Consumer","link":"https:\/\/alphastreet.com\/india\/category\/consumer-stocks\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/130798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=130798"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/130798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=130798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=130798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=130798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}