Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Q4 FY2023 Earnings Presentation
55 slides from Pearl Global Industries's earnings presentation, May 15, 2023
Slide 1: Stock exchange filing cover letter
PEARL GL~BAL Exceeding Expectations .. .Always PGIL/SE/2023-24/16 Date: May 15, 2023 THE GENERAL MANAGER, THE GENERAL MANAGER, DEPARTMENT OF CORPORATE SERVICES- LISTING DEPARTMENT CRD NATIONAL STOCK EXCHANGE OF INDIA BSELIMITED LTD. 1ST FLOOR, NEW TRADING RING "EXCHANGE PLAZA", PLOT NO. C-1, ROTUNDA
Slide 2: Investor Presentation May 2023
Investor Presentation May 2023
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by and is the sole responsibility of Pearl Global Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitat
Slide 4: FY23 Highlights
PEARL GLOBAL Exceeding Expectations. Always Designs that make the = a headlines! } phe FY23 Highlights
Slide 5: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said,“Our outstanding performance in fiscal year 2023 is a testament to our robust global competitive advantage. We have skilfully leveraged our core strengths to achieve this sustained gr
Slide 6: Business Highlights FY23
Business Highlights FY23 Revenue EBITDA Margin 16% 8.1% +290 bps Rs. 3,158.4 CRS Highest ever revenue since inception on account of : EBITDA Margins improved by 290 bps to 8.1% in FY23 from 5.2% in FY22 due to: • Consistent improved profitability in Vietnam operations • Improved product mix, higher
Slide 7: Highest Ever Consolidated Group Performance
Highest Ever Consolidated Group Performance Revenue INR CRS. EBITDA EBITDA EBITDA Margin(%) COVID-19 Impact 3,158.4 2,713.5 COVID-19 Impact 8.1% 255.5 1,757.5 1,685.1 5.2% 1,490.9 5.0% 4.1% 4.0% 140.6 88.1 66.9 60.9 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PBT PAT 176 COVID-19 Impact COVID-
Slide 8: Consolidated Performance Highlights Q4FY23
Consolidated Performance Highlights Q4FY23 EBITDA INR CRS. Revenue Margin (%) 4.4% 8.6% +58.2% -18.5% 896.0 62.8 730.0 39.7 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Adj PBT* PAT +20.5% +87.0% 38.2 53.3 31.7 28.5 Q4FY22 Q4FY23 Q4FY22 Q4FY23 *Adj PBT excludes exceptional profit of Rs 17.8 crores in Q4FY23 and a lo
Slide 9: Key Performance Indicators FY23
Key Performance Indicators FY23 No. of pieces shipped (in Mn.) Revenue Contribution from Key Clients Revenue Contribution from customers added in last 5 years 53.9 50.9 25% 24.5% 41.0 19.7 21.2% 36.1 19.9 13.7 32.7 13.6 10.4% 10.8 59% 27.6 17% 4.7% 5.3% 22.8 26.9 17.6 18.0 1.1 1.2 1.8 4.5 2.7 FY19 F
Slide 10: Improved Financial Metrics
Improved Financial Metrics Working Capital Days Inventory Days Debtor Days Creditor Days 63 73 49 59 59 45 38 24 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Debt Service Coverage Interest Coverage Net Debt/EBITDA 2.30 3.5 2.95 1.95 2.7 0.60 FY22 FY23 FY22 FY23 FY22 FY23 9
Slide 11: Consolidated Profit and Loss Statement - Q4 & FY23
Consolidated Profit and Loss Statement - Q4 & FY23 Profit and Loss (INR CRS.) Q4 FY23 Q4 FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 730.0 896.0 -18.5% 717.1 2% 3,158.4 2,713.5 16.4% Cost of Goods Sold 356.4 529.3 333.5 1629.5 1510.6 FY23 Revenue increased by 16.4% YoY: Gross Pro
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Non - Current Assets 619.5 533.9 Total Equity 742.8 614.9 Property Plant & Equipment 288.2 258.2 Share Capital 21.7 21.7 CWIP 33.1 15.2 Reserves & Surplus 700.8 577.3 Goodwill 19.2 18.0 Non Contr
Slide 13: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) Mar-23 Mar-22 Net Profit Before Tax 175.8 85.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 67.8 76.2 Operating profit before working capital changes 243.7 162.1 Changes in working capital 157.6 -239.2 Cash generated from Operat
Slide 14: Standalone Performance Highlights FY23
Standalone Performance Highlights FY23 Revenue EBITDA INR CRS. Margin (%) 4.4% 6.3% +18.2% +69.8% 1103.8 69.6 933.8 41.0 FY22 FY23 FY22 FY23 Adj PBT* PAT +71.3% +97.8% 50.7 53.8 29.6 27.2 FY22 FY23 FY22 FY23 *Adj PBT excludes exceptional gain of Rs 11 crores in FY23 and a gain of Rs 6.6 crores in FY
Slide 15: Standalone Performance Highlights Q4FY23
Standalone Performance Highlights Q4FY23 INR CRS. Revenue EBITDA Margin (%) 4.0% 7.8% +51.8% -21.5% 349.7 21.4 274.6 14.1 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Adj PBT* PAT +119.7% -13.8% 15.9 27.9 13.7 12.7 Q4FY22 Q4FY23 Q4FY22 Q4FY23 *Adj PBT excludes exceptional gain of Rs 15.9 crores in Q4FY23 and a profi
Slide 16: Improved Financial Metrics
Improved Financial Metrics Working Capital Days Inventory Days Debtor Days Creditor Days 62 87 45 70 37 40 42 45 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Debt Service Coverage Interest Coverage Net Debt/EBITDA 1.28 2.7 4.76 2.1 0.80 1.68 FY22 FY23 FY22 FY23 FY22 FY23 15
Slide 17: Standalone Profit and Loss Statement – Q4 & FY23
Standalone Profit and Loss Statement – Q4 & FY23 Profit and Loss (INR CRS.) Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 274.6 349.7 -21.5% 200.8 36.8% 1,103.8 933.8 18.2% Cost of Goods Sold 129.2 179.3 70.4 541.9 428.1 FY23 Revenue increase by 18.2% Y-o-Y: Gross Profi
Slide 18: Standalone Balance Sheet
Standalone Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Non - Current Assets 364.9 344.8 Total Equity 380.9 343.5 Property Plant & Equipment 128.2 124.1 Share Capital 21.7 21.7 CWIP 6.9 0.0 Reserves & Surplus 359.2 321.8 Intangible assets 1.6 0.7 Non-Cu
Slide 19: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) Mar-23 Mar-22 Net Profit Before Tax 61.7 36.1 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.8 29.5 Operating profit before working capital changes 62.5 65.6 Changes in working capital 46.3 -78.3 Cash generated from Operations 108
Slide 20: Company Overview
PEARL GLOBAL We believe in the Triple Bottom Line Approach \ KA Company Overview [\ (2 Or \] Bf PLANET PROSPERITY
Slide 21: About Us
About Us Incorporation: Multi-National Presence : Founded in 1987, Pearl Global is a leading apparel Across 8 countries such as India, Indonesia, manufacturer offering end-to-end sustainable Bangladesh, Vietnam, USA, Spain, Hong Kong solutions to the fashion industry and U.K. Robust Design Team: Div
Slide 22: What We Do
What We Do C Customized Solutions: The biggest pillar for our operations is providing customized solutions as per your need Strong Analytics: Facts driven analytics help us drive insights and conclusion for projects Infrastructure: State-of-the art renewable technology has been installed in all fact
Slide 23: Our Journey
Our Journey • Established import and • 2014: Incorporation of • 1987: Pearl Global Commencement of Acquisition of Alpha distribution in the U.S.A. Pearl Bangalore started operations Prudent, Bangladesh unit in BD and U.K. • 2016: Commencement of • 1998: Established • Establishment of Norp 1 in opera
Slide 24: Our Vision, Mission & Goal
Our Vision, Mission & Goal Vision Mission Goal To be the Global Leader To continuously exceed To innovate the way Fashion is providing end-to-end supply customer and shareholder created across the Globe chain solutions to the fashion expectations by strategically industry driving sustainability, tec
Slide 25: Product Profile
PEARL GLOBAL Exceeding Expactations...Always The One-Stop Destination For Your Fashion Line! ACTIVE Product Profile =f —_— ' CHILDREN’S ~~~ WEAR
Slide 26: Product Portfolio Across Categories
Product Portfolio Across Categories Gender wise Split Woven Knits Dress, Tops, Top, Shirt, Long Shirt, Dress Skirts, Sweater ,T Shirt, Women Sleepwear, Huddie, legging Jogger Shirt, Sleepwear, T Shirts, Hoodies Men Pyjama, Polo Tshirt Boys Shirts T Shirt, 2 Pc Set PRODUCT WISE SPLIT (Mn Pieces)* T S
Slide 27: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 28: Global Presence Across 8 Countries
Global Presence Across 8 Countries UNITED KINGDOM SPAIN USA (NEW YORK) DESIGN & SALES ACROSS BANGLADESH HONG KONG 8 COUNTRIES MANUFACTURING SET UP ACROSS 4 VIETNAM COUNTRIES INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA 27
Slide 29: Manufacturing Facilities
Manufacturing Facilities Capacity Annual Capacity as on Revenue % Location No of Units Utilization % Specialization FY23 (Blended) FY23 In-House Partnership 13.7% Woven and Knit products including women’s fashion wear, men’s wear and India 7 - 88% 24.6 mn pieces p.a. kid’s wear. South factories make
Slide 30: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 29
Slide 31: Management Team
Management Team Sustainability; A value deeply embedded in every Pearl Global employee
Slide 32: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 31
Slide 33: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 32
Slide 34: Core Team
Core Team Sanjay Sarkar Rajesh Ajwani Dr. Mahesh Seth Pankaj Bhasin Sundeep Chatrath Gurusankar Gurumoorthy Country Director - Bangladesh Commissioner Indonesia Vice President – US CEO- Woven India CEO-Knits India CEO-Vietnam Operations Vikas Mehra Jeff Kreindel David Ayala Jo Hales CEO-Bangladesh E
Slide 35: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 36: Government Initiatives
Government Initiatives 1 2 3 4 5 Extension of RoSCTL Notification of Free Trade PLI Scheme MITRA Scheme RoDTEP rates Agreement scheme • Scheme was approved • Under the scheme, • The extension is likely • The announcement is • With the IndAUS with a total outlay of Rs 7 mega parks will be to benefit
Slide 37: China +1 Provides Huge Opportunity For Textiles & Apparel Players
China +1 Provides Huge Opportunity For Textiles & Apparel Players Covid-19 and geopolitical situations have led to redistribution of global trade shares and recalibration of sourcing partners China +1 provides enormous opportunity to India Textiles Industry to regain a leadership position as a top e
Slide 38: Our Unique Propositions / Key Strengths
Our Unique Propositions Multinational Presence Robust Design Team Shift Towards Asset Light Model Strong Customer Relationship • 21 manufacturing facilities • Fashion trend analysis by • Partnership model to drive spread across 4 countries. talented design personnel next leg of growth • Long term re
Slide 39: Global Competitive Advantage
Global Competitive Advantage Multinational Presence Diversified Product Offering Robust Design Team • Present in each country for >10 years • Close proximity to customer • Specialised products in each country • Gives an edge to leverage • Strengthens relationship and gives • Provides leveraging oppo
Slide 40: Synergies From Partnership Model
Synergies From Partnership Model Pearl Global Partner Synergies • Working capital investment • Capex and Labour expenses Faster Turnaround Time • Designing • Design sharing with the • Appoints Industrial Engineer buyer Capacities in proximity to • Responsible for optimum • Contract on per piece basi
Slide 41: Robust Risk Mitigation Practices
Robust Risk Mitigation Practices Social & Ethical Customer Product Raw Material Currency Cashflow Compliance Retention & Growth Quality Prices and Supply Chain Fluctuation Non-Compliance Debt Repayment & servicing o Direct Relationship with o Quality systems & o Early projection and o Natural hedge
Slide 42: Way Forward and Strategy For Growth
Way Forward and Strategy For Growth New Customer Optimum Utilization Of Acquisition Existing Facilities Growth Through Geographical Partnership Facilities Expansion Automation Of PLI Scheme To Act As Facilities A Growth Engine 41
Slide 43: Financial Highlights
PEARL GLOBAL Exceeding Expectations...Always Conscious steps towards a Sustainable future Financial Highlights
Slide 44: Historical Consolidated Profit And Loss Statement
Historical Consolidated Profit And Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 3,158.4 2,713.5 1,490.9 1,685.1 1,757.5 Cost of Goods Sold 1,629.5 1,510.6 768.9 808.3 873.3 Gross Profit 1,528.9 1,202.9 722.0 876.8 884.2 Gross Profit Margin 48.4% 44.3% 48
Slide 45: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 619.5 533.9 533.2 543.1 434.6 Total Equity 742.8 614.9 530.2 513.6 481.4 Property Plant & Equipment 288.2 258.2 213.8 221
Slide 46: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 175.8 85.8 11.4 31.2 82.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 67.8 76.2 61.3 93.2 51.5 Operating profit before working capital changes 243.7 162.1 72.6 124.5 134.5 Changes
Slide 47: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 1103.8 933.8 771.4 825.3 840.3 Cost of Goods Sold 541.9 428.1 473.1 399.6 417.1 Gross Profit 561.9 505.7 298.3 425.7 423.2 Gross Profit Margin 50.9% 54.2% 38.7% 51.6% 50.4% Employee Cost
Slide 48: Standalone Balance Sheet
Standalone Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 364.9 344.8 360.6 377.8 347.2 Total Equity 380.9 343.5 313.8 305.9 316.2 Property Plant & Equipment 128.2 124.1 128.5 131.7 131.5 Shar
Slide 49: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 61.7 36.1 -9.2 10.9 31.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.8 29.5 42.3 33.7 20.5 Operating profit before working capital changes 62.5 65.6 33.1 44.6 52.4 Changes in worki
Slide 50: Sustainability
PEARL GLOBAL Exceeding Expectations...Always We're environmentally sustainable, for real! TAGS ® TAGS ARE MADE WITH % é RECYCLED PAPER 100% ORGANIC COTTON GARMENT DYED WITH SINGLE JERSEY wet, <, COTS CERTIFIED , NATURAL DYES: OEKO-TEX® MOLE USING MAGIC BOX, OZONE LASER & SUSTAINABLE CHEMICAL BIO-ENZ
Slide 51: Approach to Sustainability
Approach to Sustainability We believe in the Triple bottom approach : People, Planet and Profit Environmental sustainability forms one of the key pillar of our social responsibility. To attain the highest level of sustainability standards, we have the following measures in place to fulfil our respon
Slide 52: Sustainability Is An Integral Part Of Our Processes
Sustainability Is An Integral Part Of Our Processes Ongoing sustainable initiatives Ozone ECO FRIENDLY Eco Friendly Recycled Poly Stone, Longer Life Span Reduce Water Consumption Replacement Of Pumic Stone With No Residue Magic Box Environmental Impact Measurement Eco Friendly Software to monitor th
Slide 53: Protecting the Future
Protecting the Future We believe in the long-term preservation of our resources ✓ To create a circular economy by eliminating waste & utilizing resources 52
Slide 54: Awards
Awards 2006-2008 2008-2010 2010-2011 • 2006-07: Highest Export in woven • 2008-09: Highest Exports by Young • 2010-11: Highest Exports – Woven Entrepreneur -1st Position to Pulkit garments Seth Garments- Winner • 2007-08: Highest Export in woven • 2009-10: Highest Exports in Woven garments Graments-
Slide 55: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sanjay Gandhi - Group CFO Ms. Brinkle Shah Jariwala / Mr. Rahul Agarwal sanjay.gandhi@pearlglobal.com brinkle.shah@sgapl.net / rahul.agarwal@sgapl.net +91 9619385
Pearl Global Industries — Q4 FY2023 Earnings Presentation on 6ix