Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2019 Earnings Presentation
33 slides from Sutlej Textiles & Industries's earnings presentation, May 9, 2019
Slide 1: Results presentation cover letter to exchanges
SUTLEJ TEXTILES AND INDUSTRIES LIMITED sum 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, INDIA. Phone : (022) 4219 8800/6122 8989 Fax : (022) 4219 8830 E-mail : info@sutlejtextiles.com W
Slide 2: Charged to Grow Higher: Q4 & FY19 Investor Presentation
Sutlej Textiles and Industries Ltd. Charged to Grow Higher Q4 & FY19 Investor Presentation | May 2019 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: \ As ieee
\ As ieee Wi Waa WA \ \\ XN . \\ SW AAA SA wl By MN a ee = a Fe) ae | 2 vit we ae ee Se mo ~ EA
Slide 5: Profitability Highlights
Profitability Highlights Standalone Consolidated Rs. in Cr Q4 FY19 Q4 FY18 YoY % FY19 FY18 YoY % FY19 FY18 YoY % Total Income 617 610 1% 2589 2488 4% 2642 2510 5% Raw Material Cost 354 354 0% 1503 1396 8% 1541 1412 9% Employee Cost 78 73 7% 319 299 7% 330 303 9% Other Expenses 128 131 -2% 521 512 2%
Slide 6: Key Performance Highlights – Q4 & FY19
Key Performance Highlights – Q4 & FY19 Yarn Sales (in MT) Up by 2% in FY19 Average Yarn Realization (Rs/kg) Up by 2% in FY19 Export Revenue Up by 19% in FY19 1,06,159 1,08,136 222 930 221 782 26,546 25,498 217 213 211 203 1695 1684 393 405 Q4 Q4 FY18 FY19 FY18 FY19 Q4 Q4 FY18 FY19 Q4 Q4 FY18 FY19 FY
Slide 7: Balance sheet
Balance sheet Rs. in Cr FY19 FY18 Rs. in Cr FY19 FY18 Non-current assets 1128 1184 Shareholder’s Fund 942 907 1082 1126 Share capital 16 16 Fixed assets Reserves & Surplus 925 891 Investments 26 51 Other Non Current assets 19 7 Non-current liabilities 496 555 Long term borrowings 437 509 Deferred ta
Slide 8: Executive Chairman’s comments
Executive Chairman’s comments Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The challenging business environment for the Textile Industry continued during the year due to subdued demand. The situation was further aggravated by unprecede
Slide 9: Sutlej: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years 8
Slide 10: 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 High value added dyed yarn and presence across all types of
Slide 11: Key Milestones
Key Milestones Acquired Design, Sales, Commenced commercial Acquisition of Birla Textile Mills and Distribution (DS&D) production of 31,104 Spindles at business along with Chenab Textile Mills, J&K to 35,280 spindles – commenced brand of American Silk manufacture Cotton Mélange commercial production
Slide 12: Business Verticals
. . SI HIAl Business Verticals 11
Slide 13: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Leading spun dyed & Melange Utilization in Industry Yarn Manufacturer in India Better RM & Power through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Home Te
Slide 14: Experienced Team
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 Mr. Ashok
Slide 15: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 14
Slide 16: Yarn Capacities
Yarn Capacities Nearly 32% of the spindleage and 67% of the fabric weaving machines commissioned in the last decade, assuring high technological Bhawanimandi, Rajasthan relevance. • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kathua, J&K • 1
Slide 17: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,20,840 Dyed Yarn Spindles ~35% dedicated to Melange Yarn ~65% dedicated to various blends 4,20,840 Well Diversified Product Portfolio Marquee clients like Page Industries,
Slide 18: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 17
Slide 19: Home Textile - Emerging Business
Home Textile - Emerging Business Focus on Curtains, Upholstery & Made ups Leading producer & exporter of Home Decor Continuous Increase in Spindle Capacities Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State of Art manufa
Slide 20: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Expanding Product Portfolio Adding wider width printing machines Better Designs Digital Printing capabilities Sheer Material Steaming & Washing Made-ups Fancy Yarn Embroidery Establish Geographic Presence Improving Design
Slide 21: American Silk Mills (ASM)
American Silk Mills (ASM) Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Stabilizing Operations Working on improving margins Building Customers Confidence Re-gaining customer confidence lost due to liquidity position before acquisition Intr
Slide 22: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 21
Slide 23: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive PSF – A Key Raw Material Utilisation for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity 120 MT / Day CAPEX Rs. 189 crore Location – land acquired Baddi, Himachal Pradesh Expected Commercial Production Q1FY20-21 Spent upto date Rs 10 c
Slide 24: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost Installed Roof Top Solar plant of 2.7 MW at new unit in Bhawanimandi, Rajasthan, Resulting ~40% less per unit cost compared to State Tariff Solar Plant at Bhawanimandi, Rajashthan 23
Slide 25: Sutlej 2.0 – Growth Strategy
Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation 24
Slide 26: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth Total Income Total Debt Networth Total Debt Total Debt to Equity 2,642 942 923 1,000 4.73 5.00 800 738 4.00 1,705 652 600 3.00 923 400 349 2.00 809 738 1.87 652 200 156 1.00 0.98 0 0.00 FY08 FY13 FY19 FY08 FY13 FY19 Continuous reduction in Total Debt to Equity ra
Slide 27: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key • Integration with ASM • Opportunities into •Strong Balance Sheet Raw material cost Forward Integration • Product Portfolio •Generate better Return expansion to strengthen • Opportunities in new Ratio’s Home Textiles Business Speciality Ya
Slide 28: Enhancing value for Stakeholders
Enhancing value for Stakeholders Dividend Per Share (Rs) Dividend Payout (%) FY15 10 FY15 17 FY16 13 FY16 18 FY17 13 FY17 16 FY18 13 FY18 23 FY19 6.5 * FY19 22 * Dividend declared Rs.0.65 on FV of Rs.1 per share post split. Depiction is for visual and comparative purpose only 27
Slide 29: Annexure - Financials
Annexure - Financials 28
Slide 30: 5 year Performance Highlights
5 year Performance Highlights Revenue EBITDA PAT FY15 1,918 FY15 272 FY15 115 FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510 FY18 281 FY18 113 * FY19 2,642 FY19 240 FY19 58 * Includes exceptional gain of Rs 42 crore 29
Slide 31: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY15 1.1 FY15 3.8 FY16 1.2 FY16 4.9 7.5% 7.3% FY17 1.3 FY17 5.2 6.8% FY18 4.8 6.2% 6.2% FY18 1.15 FY19 4.2 FY19 0.98 FY15 FY16 FY17 FY18 FY19 30
Slide 32: Balance sheet
Balance sheet Gross Block (Rs Cr) Net worth (Rs Cr) FY15 1,397 FY15 558 FY16 1,650 FY16 683 FY17 1,985 FY17 816 FY18 2,067 FY18 907 FY19 2,093 FY19 942 31
Slide 33: THANK YOU! Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! 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
Sutlej Textiles and Industries — Q4 FY2019 Earnings Presentation on 6ix