Ghcl Textiles Ltd. · NSE:GHCLTEXTIL
Ghcl Textiles — Q3 FY2025 Earnings Presentation
24 slides from Ghcl Textiles's earnings presentation, Feb 3, 2025
Slide 1: Cover letter to stock exchanges: Investors' Presentation Q3FY25
February 03, 2025 माघ शुक्लपक्ष, षष्ठ� �वक्रम संवत, २०८१ National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Bandra – Kurla Complex, Building, P.J. Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumba
Slide 2: GHCL Textiles Limited Q3 FY25 Investor Presentation
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Slide 3: This presentation and the accompanying slides (the “Presentation”), have been prepared solely for information
This presentation and the accompanying slides (the “Presentation”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contra
Slide 4: Business update and highlights
GHCL Textiles is a leading Indian yarn manufacturer and exporter, with advanced facilities in Tamil Nadu specializing in high-quality cotton and blended yarns. We have expanded into the fabric segment, leveraging our expertise in cotton coverage and maintaining a lean cost structure. With 62MW of gr
Slide 5: Union Budget 2025-26
Union Budget 2025-26 Higher Allocation Cotton Productivity Custom Duty Other Key Initiatives The Ministry of Textiles has Allocation of Rs. 500 Cr Import duty on knitted • Exports emphasis received a Rs. 5,272 Cr towards a 5 year ‘Mission for fabrics covering nine tariff • Increased credit, allocati
Slide 6: Operational excellence and customer-centric approach
Operational Customer-Centric Shift to Value- Strong Foundation Excellence Approach Added Segments for Growth • 98%+ utilization, even • Catering to strategic • Gradual transition • Expertise in cotton in tough markets. customers who from commodity inventory • Lean cost structure require customized y
Slide 7: Revenue by products and geography
o Increasing revenue trend from value-added products (knitted and griege fabric); and exports Revenue by Products o Strategy aims to reduce market risks and ensure stable 0.0% 6.5% 7.8% margins o Focus on continued diversification for future growth FY19 FY24 9MFY25 100.0% 93.5% 92.2% Total Revenue (
Slide 8: Capex commitment and capacity additions
Capex – Capacity Additions Capex Commitment Project Current Project Cost Timeline Implication Signed MoUs with Tamil Nadu Govt. for Rs. Description Status (Rs. Cr) 1,035 Cr. investment; Rs. 360 Cr. already Expected to generate 25k Spindles Ongoing 215 Q2 FY2026 invested in 40k spindles and solar pow
Slide 9: Vertical integration and green energy enhancement
• Vertical integration of the yarn manufacturing to include knitted, weaving and dyed fabrics, which yields superior margin and integration with existing business. • Enhancement of Green energy portfolio to 75 MW (from 62 MW currently) to cater up to 85% of our energy requirement. • These initiative
Slide 10: Revenue, EBITDA and PBT trends
Revenue EBITDA & Margin (%) PBT & Margin (%) In Rs. Cr 307 288 289 288 16 16 30 29 29 246 26 14 13 20 6 8% 10% 10% 10% 9% 8% 5% 5% 5% 4% Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 1,037 1,060 255 924 883 213 693 671 611 112
Slide 11: Quarterly profit and loss
Particulars Q3FY25 Q2FY25 QoQ Q3FY24 YoY 9MFY25 9MFY24 YoY Total Income 288 307 -6% 246 17% 883 772 14% COGS 194 211 -8% 166 17% 599 536 12% Gross Profit 94 95 -2% 80 17% 284 236 20% Gross Profit (%) 32.6% 31.1% 150 bps 32.6% 0 bps 32.2% 30.6% 160 bps Operating Expenses 68 66 2% 60 13% 200 177 13% E
Slide 12: Capital allocation for 9M FY25
Capital Allocation for 9M FY25 Debt Repayment Growth Capex Gross Debt Net Cash Surplus Rs. 61 Crore Rs. 75 Crore Rs. 11 Crore Rs. 25 Crore Cash Inflows Generated Net Debt to Equity Rs. 80 Crore -- Dividends Paid Working Capital Release Return on Capital Employed** Return on Equity** Rs. 5 Crore
Slide 13: Operational and revenue data FY19-9MFY25
Particulars UoM FY19 FY20 FY21 FY22 FY23 FY24 9M FY24 9M FY25 Sales Volume: Yarn MT 28,426 29,293 26,388 28,826 28,590 33,140 23,947 27,207 Knitted Fabric MT - - - - 44 336 277 368 Griege Fabric Lakh Meters - - - 9 50 114 83 114 Capacity Utilization % 98% 98% 95% 98% 94% 98% 98% 98% Total Revenue Rs
Slide 14: Annual financials
Particulars FY19 FY20 FY21 FY22 FY23 FY24 Total Income 693 671 611 924 1037 1060 COGS 759 729 Gross Profit 278 331 Gross Profit (%) 27% 31% Employee Cost 54 62 Power, Fuel & Water Exp. 61 71 Other Expenses 92 107 Total Expenditure 207 240 EBITDA 112 91 116 255 70 89 EBITDA (%) 16% 14% 19% 28% 7% 8%
Slide 15: Company Overview
COMPANY OVERVIEW 14
Slide 16: Company overview and capacities
o Journey started with acquisition of sick spinning unit in 2002, turnaround to one of the most reputed mills. o Spinning business demerged to form GHCL Textiles Ltd Capacities effective April 1, 2023. FY24 Revenue: ₹ 1060 Cr Ring Spindles: 2.25 lac o 2 State-of-the-art manufacturing infrastructure
Slide 17: Current capacities and journey
2002 - 2008 2009-2015 2016-2018 2019-2020 2022-2023 Current Capacities Entered Spinning Spindles capacity Added TFOs for value Spindles capacity Spindles capacity Ring Spindles 225 k business with 65K increased to 175K, added yarn & Air Jet increased to increased to 225k Rotors - 3,320 spindles & la
Slide 18: Yarn product portfolio
Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn 25s to 60s Knitting from Indian, US and Australian Mix 100% cotton combed compact yarn from Indian, 30s to 170s Weaving US, Australian, Supima and Giza Mix Polyester /Cotton & Cotton/Polyester blended 25s to 40s Knitting Hosiery yarn Op
Slide 19: Fully equipped product basket
Fully Equipped Product Basket Premium Quality • 38,000 MTPA yarn production • Wide range of products form • Producers of high-quality yarns, • Culture for developing value- commodity to value-added including GIZA, SUPIMA, Australian, added products leading to value • Tailor-made products to suit & C
Slide 20: Superior customer base
Superior Customer Base “PGHCL jraninyy | MR sus Arvioo Norban _— so Norhan ‘/TOGRY, Ben OBR | The World Of | ocean Lanka ‘Vals oes i 1 Complete c 19
Slide 21: Superior credibility through several certifications
Superior Credibility Through Several Certifications EGHCL = bette? ae i J CONFIDENCEC are cotton | 0 IN TEXTILES initiative | Tested for harmful substances according to Oeko-Tex® Standard 100 GIZA Ta z GRS mS Global Recycled EGYPTIAN COTTON KK Standard USTERIZED° 20
Slide 22: ESG initiatives
“ We strive to become a responsible steward and aim to reduce the overall environmental footprint of the organisation and will continuously monitor our journey ” Several Initiatives Focused on ESG: o Renewable Energy: caters to 72% of energy consumption o Environment: Significant savings in purcha
Slide 23: Management team and board of directors
Resilient and Skilled Management Team MR. R. BALAKRISHNAN MR. GAURAV V MR. D. RAMESH BABU MR. N. RAJAGOPAL MR. LALIT DWIVEDI CEO CFO OPERATIONAL HEAD TECHNICAL HEAD COMPANY SECRETARY Experienced and Accomplished Board of Directors MR. ANURAG DALMIA MR. R. S. JALAN MR. RAMAN CHOPRA MR. NEELABH DALMIA
Slide 24: Contact Us
Contact Us: Mr. Manu Jain GHCL Textiles Limited Tel: +91-7042310002 Email: manujain@ghcl.co.in Investor Relations Go India Advisors Name: Ms. Devyanshi Dave Tel: +91-9892330743 Email: devyanshi@goindiaadvisors.com Name: Mrs. Sheetal Khanduja Tel: +91-9769364166 Email: sheetal@goindiaadvisors.com