Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY2021 Earnings Presentation
29 slides from Sutlej Textiles & Industries's earnings presentation, Aug 12, 2020
Slide 1: Sutlej Textiles and Industries Limited
SUTLEJ 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) 42198830 E-mail : info@sutlejtextiles.com Website: www.sutlejtextiles.com CIN. : L17
Slide 2: Q1FY21 Result Presentation | August 2020
Q1FY21 Result Presentation | August 2020
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: Q1 FY21 Results Highlights
Q1 FY21 Results Highlights Sailing through challenging times… 3
Slide 5: Revival after Covid-19
Revival after Covid-19 • Financial Performance Sales and profitability impacted due to shutdown of operations for nearly a month Some recovery witnessed in Export market, Domestic market demand remained subdued • Operational details Had sufficient orders in hand at the time of lockdown, could
Slide 6: Profitability Highlights
Profitability Highlights Consolidated Financial Results Particulars Q1 Q1 YoY Q4 QoQ (Rs crore) FY20 FY21# FY20 Chg % FY20 Chg % Total Income 197 667 -70% 545 -64% 2442 RM cost 108 397 -73% 296 -64% 1363 Gross Profit 89 270 -67% 249 -64% 1079 EBITDA -23 50 NA 23 NA 198 PBT ( before Excep. items) -55
Slide 7: Key Performance Highlights – Q1FY21
Key Performance Highlights – Q1FY21 Domestic & Export Revenues* (Rs Crs) Yarn Sales(in MT) Avg. Yarn Realization (Rs/kg) 27427 191 221 23877 193 209 208 8674 458 85 336 103 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 Domestic Export • Despite challenging business environment in th
Slide 8: Strengthen Balance Sheet
Strengthen Balance Sheet Finance Cost (Rs. Cr) Total Debt (Rs. Cr) Debt to Equity (x) 920 871 13 862 0.98 381 291 276 12 580 586 539 0.91 FY19 FY20 Q1FY21 Q1FY20 Q1FY21 Long Term Short Term FY19 FY20 Despite challenging business environment Total Debt has witnessed a reduction of Rs 9 Crs (net) du
Slide 9: 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 Covid-19 pandemic has engulfed the entire world causing catastrophic damage to economies and businesses across the globe. It has significantly impacted the
Slide 10: Sutlej
Sutlej Creation of a Strong Foundation over the years 9
Slide 11: Sutlej Textiles - Overview
Sutlej Textiles - Overview Largest Spun Dyed Capacity Patronage of Renowned K.K.Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance and One of the leading manufacturer of Melange Yarn Experienced Management Niche Presence Exports to + 6
Slide 12: Key Milestones
Key Milestones Commenced commercial production of 31,104 Acquisition of Birla Spindles at Chenab Textile Textile Mills Acquired Design, Sales, Mills, J&K to manufacture and Distribution (DS&D) Backward Cotton Mélange and 35,280 spindles – business along with integration Cotton Blended Dyed Yarn comm
Slide 13: Business Verticals
Business Verticals Dyed Yarns Value Added Yarns Melange Yarns Curtains Home Textiles Upholstery Made Ups 12
Slide 14: 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 cost through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Ho
Slide 15: 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 16: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 15
Slide 17: Yarn Capacities
Yarn Capacities • Ability to handle variety of RM with different counts • Work very closely with customer to fulfil requirements • Manufacture to Sale and not to Bhawanimandi, Rajasthan Stock • 35,280 Spindles (Cotton Mélange ) • 90,384 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kat
Slide 18: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,19,640 Dyed Yarn Spindles ~35% dedicated to Melange Yarn ~65% dedicated to various blends Well Diversified Product Portfolio 4,19,640 Marquee clients like Siyar
Slide 19: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 18
Slide 20: Home Textile Business
Home Textile Business Focus on Curtains, Upholstery & Made ups One of the leading producer & exporter of Home Decor Increase in Loom Capacities over past 12 yrs Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State
Slide 21: Home Textiles Business
Home Textiles Business Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Engagement with customers Have done Customer segmentation, Channel wise strategy preparation & customer focus group creation Strengthening network of local independ
Slide 22: Building Organization
www.americansilk.com Building Organization 21
Slide 23: 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) Preparedness Covid-19 Maintain all US Centers for Disease Control and Prevention (CDC) Guidelines including mandatory sanitizing, social distancing, and temperatur
Slide 24: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 23
Slide 25: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive RPSF – A Key Raw Material Utilisation for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day Location (adjacent to our existing yarn manufacturing unit) Baddi, Himachal Pradesh Fu
Slide 26: Annexure - Financials
Annexure - Financials 25
Slide 27: 5 year Performance Highlights
5 year Performance Highlights Revenue EBITDA PAT 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 FY20 2,442 FY20 198 FY20 28 Performance of FY20 impacted due to lockdown of manufacturing units due to Covid-19 26
Slide 28: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY16 1.2 FY16 4.9 7.3% FY17 1.3 FY17 5.2 6.8% 6.7% FY18 1.15 FY18 4.8 6.2% 6.2% FY19 4.2 FY19 0.98 FY20 4.3 FY20 0.91 FY16 FY17 FY18 FY19 FY20 27
Slide 29: Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect Mr. Bipeen Valame Ms. Pooja Sharma / Ms. Hina Agarwal bipeenvalame@sutlejtextiles.com pooja.sharma@stellar-ir.com / hina@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall
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