Filatex India Ltd · NSE:FILATEX
Filatex India — Q3 FY2018 Earnings Presentation
33 slides from Filatex India's earnings presentation, Jan 29, 2018
Slide 1: Filatex India Limited results presentation filing letter
= FILATEX INDIA LIMITED "==" FIL/SE/2017-18/51 29 January, 2018 National Stock Exchange of India Limited The Bombay Stock Exchange Limited Listing Department Listing Department 5th Floor, Exchange Plaza, C-1, Block-G, 25m Floor, Pheroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra (E) Dalal Street
Slide 2: Next Growth Phase – 5.0
Filatex India Limited Next Growth Phase – 5.0 January 2018
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Filatex India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
Slide 4: Strong Financial Performance to continue…
Strong Financial Performance to continue… Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) 9M FY18 22.4% 15.7% 56.1% YoY Growth 1,551.0 133.3 41.0 42.3 1,349.1 110.4 PAT has ~87% of ~83% of already FY17 FY17 surpassed Revenues EBITDA FY17 Achieved Achieved number FY17 9MFY18 FY17 9MFY18 FY17 9MFY18
Slide 5: Key Updates
Key Updates Reduction in GST Rate on man- Despite GST disruption in the Due to improvement in India’s Cost made fibre from 18% to 12% and month of October, Revenues Competitiveness vs. China in Polyester Increase in Import Duty on all grew by ~37% YoY in Q3FY18 Yarns, Exports saw healthy growth Fabr
Slide 6: Q3FY18: Financial Highlights
Q3FY18: Financial Highlights Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +36.9% +26.8% +113.2% 504 37.9 14.5 368 29.9 6.8 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Exports (Rs Crs) Yarns Volume (MTPA) Chips Volume (MTPA) +39.8% +6.1% +35.4% 116 43,694 46,376 10,083 83 7,446 Q3FY17 Q3FY18 Q3FY17
Slide 7: 9MFY18: Financial Highlights
9MFY18: Financial Highlights Net Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +22.4% +15.7% +56.1% 1,349 110.4 42.3 1,102 95.4 27.1 9MFY17 9MFY18 9MFY17 9MFY18 9MFY17 9MFY18 Exports (Rs Crs) Yarns Volume (MTPA) Chips Volume (MTPA) +41.7% +7.4% +14.8% 265 133,346 23,272 124,129 20,275 187 9MFY17
Slide 8: Trial Production Commences in January 2018
Trial Production Commences in January 2018 Brownfield expansion for Bright Polyester Bright Facility Bright Poly Condensation Chips Cutter Fully Drawn Yarn and Bright Chips at Dahej Bright Chips Spinning of Bright Fully Drawn Yarn Take-up of Bright Fully Drawn Yarn Success Follows Diligent Planning
Slide 9: Filatex India Limited Journey: 1.0 – 4.0
Growth in 4.0 Phases Filatex India Limited Journey: 1.o 4.0 Success Follows Diligent Planning 8
Slide 10: Value Creation Journey So Far
Value Creation Journey So Far Transition Product Backward Forward Manufacturing Diversification Integration Integration 1.0 2.0 3.0 4.0 1990-1995 1996 - 2011 2012 - 2015 2016 Noida Plant Dadra Plant Dahej Plant Dahej Plant ▪ A pioneer in manufacturing of ▪ Diversified into Polyester POY and ▪ Fully
Slide 11: Success follows Diligent Planning
Success follows Diligent Planning Focus on Core Business, Emergence of New Platforms and Financial Discipline 1 2 3 4 5 Increase in Increase in Increase in Increase in Increase in Manufacturing Market Reach Profitability Product Offerings Value Addition Capacities Success Follows Diligent Planning 1
Slide 12: Increase in Product Offerings
Increase in Product Offerings Success Follows Diligent Planning 11
Slide 13: Increase in Manufacturing Capacities
Increase in Manufacturing Capacities Capacity Break-up (Plant Wise) Existing Capacity (MTPA) Products Dadra Dahej Narrow Woven Fabric 2,500 - New Delhi Semi Dull Polyester POY* 16,700 20,000 Capacity increased Semi Dull Drawn Textured Yarn* 6,000 70,000 from Semi Dull Polyester Chips - 64,000 Dahej
Slide 14: Increase in Value Addition
Increase in Value Addition Semi Dull & Coloured Production Split by Volume – FY17 Total Production Volume for FY17 – 189,945 Metric Tonnes 2.5% 1.4% 13.0% 24.6% 34.6% 23.9% Drawn Textured Yarn Polyproplene Yarn Fully Drawn Yarn Polyester Chips - 24,601 MT Polyester POY - 65,811 MT Fully Drawn Yarn -
Slide 15: Increase in Market Reach
Increase in Market Reach Over 50% of DTY production are exported Latvia Canada Poland Exports contributed Turkey 19% to overall Portugal Italy USA Syria South Revenues as on Morocco Israel Iran Korea Nepal 9MFY18 Algeria Egypt Jordan Hong Kong Bangladesh Thailand Colombia Exports – Rs. Crs Kenya Sri
Slide 16: Increase in Profitability
Increase in Profitability Revenue Interest 10 Year CAGR Coverage Ratio 18% 2x EBITDA ROCE 10 Year CAGR 31% 14% PAT ROE 10 Year CAGR 30% 19% Success Follows Diligent Planning 15
Slide 17: Strong Leadership Team
Strong Leadership Team Mr. Madhu Sudhan Bhageria - Chairman & Managing Director › Gold medalist in Commerce from Shri Ram College of Commerce, Delhi › Rich experience in Polyester Industry and President of PTA Users Association Mr. Purrshottam Bhaggeria – Joint Managing Director Mr. Madhav Bhageria
Slide 18: Launch of Phase 5.0
Launch of Phase 5.0 Filatex India Limited 5.0 Success Follows Diligent Planning 17
Slide 19: Phase 5.0 – Complete Product Range
Phase 5.0 – Complete Product Range Transition Product Backward Forward Manufacturing Diversification Integration Integration Complete Product Range 1.0 2.0 3.0 4.0 5.0 Bright Polymer Expansion at Dahej Success Follows Diligent Planning 18
Slide 20: Dahej Expansion – Integration & Optimization
Dahej Expansion – Integration & Optimization › Finished Products PTA MEG • Semi Dull – DTY, POY & FDY • Bright– DTY, POY & FDY Polymerization › Existing Polymerization POY Capacity to support Bright Spinning Capex FDY • Remaining Polyester Chips as well as Spinning Bright Chips supplied to Dadra Pla
Slide 21: Brownfield Expansion at Dahej
Brownfield Expansion at Dahej Project Cost of Rs. 343 Crores – Fully Trial Commercial Production Started Funded - Internal Accruals – Rs. 63.5 Crs - Debt – Rs. 279.5 Crs • Foreign Debt – 174.5 Crs • Rupee Debt – Rs. 105 Crs • Eligible for Partial SGST refund - Blended Interest Rate – 6-7% Products (
Slide 22: Post Expansion Capacities
Post Expansion Capacities Products (MTPA) Gross Captive Net % Net Capacity (Post Expansion Net of Captive) 3,31,500 TPA Bright Polyester POY 9,000 - 9,000 2.7% Bright Polyester Chips 30,600 13,000 17,600 5.3% SD Drawn Bright Fully Drawn Yarn 68,400 - 68,400 20.6% SD Fully Drawn Textured Yarn Yarn 22
Slide 23: Complete Product Range
Complete Product Range One Stop Shop for Synthetic Filament Yarn Filatex India Limited New Expansion Semi Color Bright Dull POY DTY FDY POY DTY FDY POY DTY FDY Expansion will enable us to deliver all varieties of DENIERS and COLOURS Success Follows Diligent Planning 22
Slide 24: Economics of Expansion
Economics of Expansion Higher Realization & Better Margin 01 Government 02 Incentive Schemes Lower Capex Existing Land 03 & Infrastructure Saving in Operating 04 and Interest Cost Utilization of Existing Polymerization 05 Partially Success Follows Diligent Planning 23
Slide 25: Financial Performance
Financial Performance › Robust Business Results › Margin Development › Return Indicators › Disciplined Capital Allocation › Financials Success Follows Diligent Planning 24
Slide 26: Robust Business Results
Robust Business Results Yarns Volume (MTPA) Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) 165,344 41.0* 1,572.8 1,551.0 133.3 122,658 130,039 1,278.2 87.5 26.3^ 78.9 FY15 FY16 FY17 Chips Volume (MTPA) # 9.6 47,053 29,072 29,368 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 *FY17 - Includes Profit
Slide 27: Margin Development
Margin Development EBITDA Margin % EBITDA Margin Development 8.6% Improving Margins through Operating Cost Efficiencies -0.9% 6.8% -0.9% 8.6% 0.1% 3.6% -1.6% 6.8% 5.0% 3.3% 5.0% FY15 FY16 FY17 FY15 - RM - Value Employee Other Cost FY16 - RM - Value Employee Other Cost FY17 - EBITDA Add* Cost EBITDA
Slide 28: Return Indicators
Return Indicators ROCE % ROE % * 14.4% 18.5% 18.6% 11.5% 10.5% 10.3% FY15 FY16 FY17 FY15 FY16 FY17 Return ratios improvement led by improved product mix and operating cost efficiencies *Shareholders Funds = Equity Capital + Share Premium + Accumulated Profits On Standalone basis Success Follows Dili
Slide 29: Disciplined Capital Allocation
Disciplined Capital Allocation Net-worth (Rs. Crs) Net External Debt (Rs. Crs) Estimated - Net External Debt (Rs. Crs) 325.7 Net External Debt / Equity Net External Debt / Equity* 1.1X ~1.5-1.65X 245.9 55 70 88 105 357 15 175 40 622 390 Incremental Debt for 357 Bright Expansion FY16 FY17 Term Loan W
Slide 30: Standalone Profit & Loss Statement - Quarter
Standalone Profit & Loss Statement - Quarter Particulars (Rs. Crs) Q3FY18 Q3FY17 YoY 9MFY18 9MFY17 YoY REVENUE (Net of Excise Duty) 504.2 368.2 36.9% 1349.1 1102.3 22.4% Raw Material Costs 409.0 288.5 1079.6 871.1 Employee Expenses 12.2 12.3 36.4 35.7 Other Expenses 45.1 37.6 122.8 100.1 EBITDA 37.9
Slide 31: Standalone Profit & Loss Statement - Annual
Standalone Profit & Loss Statement - Annual Particulars (Rs. Crs) FY17 FY16 FY15 REVENUE 1,551.0 1,278.2 1,572.8 Raw Material Costs 1,225.3 1,051.8 1,350.0 Employee Expenses 47.0 40.0 35.4 Other Expenses 145.5 99.0 108.5 EBITDA 133.3 87.5 78.9 EBITDA Margin 8.6% 6.8% 5.0% Other Income 11.4 10.7 9.7
Slide 32: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crs) Sept-17 Mar-17 Mar-16 Mar-15 Particulars (Rs. Crs) Sept-17 Mar-17 Mar-16 Mar-15 EQUITY & LIABILITIES ASSETS EQUITY 353.3 325.7 245.9 170.3 Non-Current Assets 818.8 664.2 571.6 409.4 Equity Share capital 43.5 43.5 32.0 32.0 Property, plant and equipment
Slide 33: Contacts
Contacts Filatex India Limited Strategic Growth Advisors Pvt. Limited CIN: L17119DN1990PLC000091 CIN: U74140MH2010PTC204285 Mr. R. P. Gupta Mr. Pankaj Chhaochharia / Mr. Rohan Adhiya rpgupta@filatex.com pankaj.c@sgapl.net / rohan.adhiya@sgapl.net +91 7977090417/ +91 98332 19522 www.filatex.com www.s