Renaissance Global Limited — Investor Meet, 19-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Renaissance Global reported a robust financial performance for Q3 with total income from continuing operations increasing by 18% year-over-year to ₹710 crores, bolstered by a 34.2% rise in the Customer Brands segment. Adjusted EBITDA grew 32.8% year-over-year, reflecting effective cost management. Adjusted profit before tax rose 45% to ₹47 crores, while adjusted PAT increased by 28% to ₹35.6 crores, marking improved profit margins.

**Future Outlook and Growth Drivers:** Management expressed confidence in continued growth, particularly in the Owned Brands and Licensed Brands segments. The company aims for the India division and its direct-to-consumer segment to break even by FY26, with plans to open five new stores and significantly grow the D2C segment, targeting revenue above ₹300 crores in FY26.

**Order Book and Operational Updates:** The ongoing cost optimization program is expected to yield annual savings of ₹40 to ₹50 crores. Additionally, the company raised ₹163.5 crores through a preferential allotment to strengthen its balance sheet, preparing for strategic growth opportunities.

**Analyst Q&A Insights:** Analysts were keen to understand the disparity in growth rates between customer products and the D2C segment. Management clarified that while Customer Brands are recovering from previous declines, the focus now is on profitability over aggressive D2C growth. Queries about debt brought assurances of planned reductions moving forward. The management expressed expectations for sustained future margin improvements as the lab-grown diamond segment continues to expand.

**Market or Regulatory Updates:** The sentiment around lab-grown diamonds remains positive, with anticipated growth expected in this segment across all brands. The management noted considerable consumer migration towards lab-grown products.

**Strategic Focus Areas:** The company's strategy emphasizes cost control and profitability while focusing on expanding its presence in the lab-grown diamond market. The operational tone reflected confidence in navigating challenges and capitalizing on future opportunities.

**Investor Insight:** The solid financial health combined with strategic initiatives underpins a favorable investment perspective. The anticipated growth trajectory and effective cost management suggest a ‘buy’ outlook as the company positions itself for significant advances in future quarters.