Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY2019 Earnings Presentation
28 slides from Sutlej Textiles & Industries's earnings presentation, Aug 2, 2018
Slide 1: Sutlej Textiles and Industries Limited results presentation cover letter
SUTLEJ TEXTILES AND INDUSTRIES LIMITED sutta textiles and industries limited Lotus Corporate Park, 'E' Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai - 400 063. Phone : (022) 4219 8800/6122 8989 Fax : (022) 4219 8830 E-mail : info©rtmyarn.com Website : www
Slide 2: Investor Presentation | August 2018
Investor Presentation | August 2018
Slide 3: Agenda
Agenda • Q1 FY19 Performance • Sutlej at Glance • Financial Highlights 2
Slide 4: Q1FY19 Performance
why “Uf ft iil 1 ii Q1FY19 Performance Ss ‘oC,
Slide 5: Key progress during Q1 FY19 and outlook
Key progress during Q1 FY19 and outlook • Despite subdued demand during the quarter we saw some improvement in terms of Sales Volume (26,768 MT in Q1FY19 compared to 26,569 MT in Q4FY18) and Sales Realization (Rs 217 per Kg in Q1FY19 compared to Rs 213 per Kg in Q4FY18). • We expect a revival and be
Slide 6: Q1 FY19 Financial Highlights
Q1 FY19 Financial Highlights Total Income (Rs Cr) EBITDA (Rs Cr) PBT (Rs Cr) 659 610 621 76 53 55 34 10 12 Q1FY18 Q4FY18 Q1FY19 Q1FY18 Q4FY18 Q1FY19 Q1FY18 Q4FY18 Q1FY19 Sales improved marginally EBITDA improved marginally PBT improved marginally in in Q1FY19 against Q4FY18 in Q1FY19 against Q4FY18
Slide 7: Key Performance Highlights – Q1 FY19
Key Performance Highlights – Q1 FY19 The Yarn segment continues to give 95%+ of Revenue Share Export Revenue continues Yarn Sales (in MT) Average Yarn Realization (Rs/kg) in Q1FY19 30%+Shows our Market Sales volume are improving from Improvements in Realization from Diversification previous quarter
Slide 8: Profitability Highlights
Profitability Highlights Rs. in Cr Q1FY19 Q4FY18 Q1FY18 Total Income 621 610 659 Raw Material Cost 354 354 380 Employee Cost 79 73 72 Other Expenses 133 131 130 EBITDA 55* 53 76 EBITDA Margin (%) 8.9% 8.6% 11.6% Depreciation 27 27 26 Finance Cost 16 15 16 Profit Before Tax 12 10 34 Exceptional Items
Slide 9: Executive Chairman’s comments on Q1FY19 performance
Executive Chairman’s comments on Q1FY19 performance Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The challenging business environment in the spinning sector continued in Q1 FY19 due to subdued demand and sluggish exports. While input c
Slide 10: Sutlej’s Key Growth Areas
Sutlej’s Key Growth Areas “Growth is a outcome of right actions and patience” 9
Slide 11: Stabilization of recently expanded capacities
Stabilization of recently expanded capacities Optimum utilization of newly added yarn capacity •Post stabilization of newly added 35,280 spindles of melange yarn capacity, realization is expected to increase going forward Increasing utilization of Home Textile capacity •Home textile capacities were
Slide 12: Proactive measures to achieve better cost efficiencies
Proactive measures to achieve better cost efficiencies Proposed new expansion to improve operational margins •New Green Fibre project to manufacture polyester staple fibre will lead to savings in cost and better GST utilization Installation of Solar Plant •Installed Roof top solar plant of 2.1 MW at
Slide 13: Sutlej at Glance
Sutlej at Glance “Our Focus towards value addition, helps us to be in a niche segments” 12
Slide 14: Sutlej Textiles - Overview
Sutlej Textiles - Overview Largest Patronage of Renowned K.K.Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance One of the leading manufacturer of Melange Yarn Niche Presence Exports to + 65 countries Manufacturing mainly all value add
Slide 15: Key Milestones
Key Milestones Commenced commercial Acquisition of Birla Textile Mills Acquired Design, Sales, production of 31,104 Spindles at and Distribution (DS&D) Chenab Textile Mills, J&K to 35,280 spindles – commenced business along with manufacture Cotton Mélange commercial production for brand of American
Slide 16: Business Verticals
Business Verticals Value Added Yarn Segment Home Textile Segment “our core strength” “our new growth opportunity” 95% Revenue contribution 5% Revenue contribution India’s Largest Spun-dyed & Cotton Melange Yarn manufacturer Focus on Curtains & Upholstery 4,18,680 spindles capacity Capacity - 9.6 mil
Slide 17: Best in class facilities
Best in class facilities Location: Bhawanimandi, Rajasthan Capacity: • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) Location: Kathua, J&K • Roof top solar plant of 2.1 MW Capacity: • 109,010 Spindles (Cotton Mélange) • 97,900 Spindles (Man-made Fibre) Location: Daheli, Gujar
Slide 18: Marquee Clients over the Globe
Marquee Clients over the Globe Charged to Grow Higher 17
Slide 19: Driven by Experienced Team
Driven by Experienced Team Board of Directors Mr. C.S. Nopany Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Executive Chairman Independent Independent Independent Independent Non Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Rajiv K. Podar Mr. Rohit Dhoot
Slide 20: Increasing global foot prints
Increasing global foot prints Progressively Entered geographies widened global with growing Exports contribute Competitive export footprint with preference for value- ~30% to total realisations presence in 65 added yarns & Home revenue countries Textile segment Yarn Home Textile Exports (Rs. Cr) Exp
Slide 21: Comfortable Balance Sheet
Comfortable Balance Sheet Switched from high-cost working Generate larger Moderate gearing capital loans to Moderated and increased capital cost of cash profits reinvestment commercial 5.97% in FY18 paper & packing credit (foreign currency) FY12 FY14 FY17 FY18 Total Debt to Equity (x) 2.58 1.36 1.27
Slide 22: Huge opportunities Ahead
Huge opportunities Ahead Textile and apparel industry in India (US$ Textiles and apparel exports from India Indian home textile industry billion) (US$ billion) (US$ billion) 250 1.2x 82.0 8.2 137 150 108 4.7 36.8 36.7 37.9 2015 2016 2017 2019F FY15 FY16 FY18 2021E 2014 2021E • Rising per capita inco
Slide 23: Financial Highlights
Financial Highlights “Discipline financial leads to consistent growth of the company” 22
Slide 24: Enhancing value across the years
Enhancing value across the years Revenue EBITDA PAT FY14 1,923 FY14 15.9% 306 FY14 6.8% 131 FY15 1,918 FY15 14.2% 272 FY15 6.0% 115 FY16 2,108 FY16 14.3% 302 FY16 6.8% 143 FY17 2,285 FY17 13.9% 317 FY17 6.9% 158 FY18 * 2,510 FY18* 11.2% 281 FY18 * 4.5% 113 *The Company acquired American Silk Mills,
Slide 25: Maintained low leverage despite continuous expansion
Maintained low leverage despite continuous expansion Average Interest Rate of Term Loans Comfortable Total Debt / Equity Ratio Robust Interest Coverage (After TUF) FY14 1.4 FY14 4 7.5% 7.3% FY15 1.1 FY15 3.8 6.8% FY16 1.2 6.2% FY16 4.9 6.2% FY17 1.3 FY17 5.2 FY18 1.15 FY18 4.8 FY14 FY15 FY16 FY17 FY
Slide 26: Continuous re-investment helps in better earnings growth
Continuous re-investment helps in better earnings growth Gross Block (Rs Cr) Networth (Rs Cr) Adjusted EPS (Rs.1 per share) FY14 462 FY14 8.0 FY14 1,226 FY15 558 FY15 7.1 FY15 1,397 FY16 683 FY16 8.8 FY16 1,650 FY17 816 FY17 9.6 FY17 1,985 FY18 907 FY18 6.9 FY18 2,067 Charged to Grow Higher 25
Slide 27: Enhancing value for Stakeholders
Enhancing value for Stakeholders Dividend Per Share (Rs) Dividend Payout (%) FY14 8 FY14 12 FY15 10 FY15 17 FY16 13 FY16 18 FY17 13 FY17 16 FY18 *13 FY18 23 * Dividend declared Rs.1.30 on FV of Rs.1 per share post split. Depiction is for visual and comparative purpose only Charged to Grow Higher 26
Slide 28: Let’s Connect
Let’s Connect Mr. Bipeen Valame Mr. Vikash Verma / Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andheri (East), Mumbai 400 093 For more information visit: www.sutlejtex
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