Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX

Sutlej Textiles & Industries — Q1 FY17 Earnings Presentation

39 slides from Sutlej Textiles & Industries's earnings presentation, 2016

  1. Slide 1: Result Presentation Q1 FY17

    and industries limited Result Presentation

  2. Slide 2: Safe Harbor

    Safe Harbor Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic developm

  3. Slide 3: Agenda

    Agenda 1 Q1 FY17 – Key Financial Highlights 2 Q1 FY17 – Key Business Update 3 Corporate Overview 4 Segment Presence – Yarn & Home Textiles 5 Annual Financial Performance 6 Business Outlook 3

  4. Slide 4: Q1 FY17 – Key Financial Highlights

    Q1 FY17 – Key Financial Highlights 4

  5. Slide 5: Q1 FY17 – Financial Performance

    Q1 FY17 – Financial Performance Total Income (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) +19.6% 561 470 +23.1% 86 70 +42.9% 45 32 Q1FY16 Q1FY17 Q1FY16 Q1FY17 Q1FY16 Q1FY17 Improved performance due to operational efficiency, debottlenecking and changing product mix 5

  6. Slide 6: Profitability Highlights

    Profitability Highlights Rs. In Cr Q1 FY17 # Q1 FY16 ## YoY % FY16* FY15* YoY % Total income 561 470 19.6% 2,302 1,918 20.0% Raw Material Cost 307 269 1,330 1,143 Employee Cost 63 48 236 175 Other Expenses 105 83 425 328 EBITDA 86 70 23.1% 311 272 14.3% Depreciation 21 18 84 70 Finance Cost 13 12 47

  7. Slide 7: Yarn segment registering growth

    Yarn segment registering growth Revenue (Rs Cr) EBIT (Rs Cr) +18.2% 525 +24.8% 444 59 47 Q1FY16 Q1FY17 Q1FY16 Q1FY17 Increasing share of value added product to boost revenues and profitability 7

  8. Slide 8: Gradual growth in Home Textile segment

    Gradual growth in Home Textile segment Revenue (Rs Cr) EBIT (Rs Cr) +47.9% 28 +192.4% 2.7 19 0.9 Q1FY16 Q1FY17 Q1FY16 Q1FY17 8

  9. Slide 9: Comments of Executive Chairman Mr. C. S. Nopany on the results

    Comments of Executive Chairman Mr. C. S. Nopany on the results The Company's concentrated efforts of focusing on specialty yarn products and enhancing home textile capacity facilitated in maintaining the growth momentum during this quarter, as the world grappled with new dimensions of economic uncer

  10. Slide 10: Q1 FY17 – Key Business Update

    Q1 FY17 – Key Business Update 10

  11. Slide 11: Key Business Update and Growth Drivers

    Key Business Update and Growth Drivers Brown field project - Capacity Expansion of Value Added Products at Bhawanimandi, Rajasthan  Work on the expansion project for adding 35,280 spindles at its Bhawanimandi, Rajasthan facility at a project cost of Rs.270 crores is progressing as per schedule. The

  12. Slide 12: Key Business Update and Growth Drivers cont…

    Key Business Update and Growth Drivers cont… Modernisation Update  Invested around Rs.17 crore during the quarter, towards technology up-gradation and debottlenecking, etc. This will result in improvement of efficiency and sustaining plant utilization.  Acquired 13 acres of Freehold land near Birl

  13. Slide 13: Corporate Overview

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  14. Slide 14: Company Overview

    Company Overview  India’s largest Spun-dyed Yarn manufacturer and leading textile player with presence across value chain – from Yarn to Home Textile – Increasing capacity of high margin Value-Added Products - Cotton blended dyed and Mélange Yarn  State-of-the-art manufacturing facilities located

  15. Slide 15: Journey from spun dyed yarn manufacturer to …

    Journey from spun dyed yarn manufacturer to …  Expansion at  Incorporated as a result of  31,104 spindles Bhawanimandi unit by Corporate Restructuring in added at Chenab 7,488 spindles to which Textile Division of Textile Mills - J&K manufacture PV Dyed Yarn Sutlej Industries Limited for manufact

  16. Slide 16: Corporate Governance at the Helm

    Corporate Governance at the Helm Board of Directors Mr. C.S. Nopany Executive Chairman Mr. U.K. Khaitan Independent Non Exec Director Mr. Amit Dalal Independent Non Exec Director Mr. Rajan Dalal Independent Non Exec Director Ms. Sonu Bhasin Independent Non Exec Director Mr. Rajiv K. Podar Independen

  17. Slide 17: State of the art manufacturing facilities …

    State of the art manufacturing facilities … Chenab Rajasthan Textile Birla Damanganga Home Textile Mills Mills Textile Mills Textile Kathua, Bhawanimandi, Baddi, Daheli, Location Jammu & Kashmir Rajasthan Himachal Pradesh Gujarat  Cotton Mélange Yarns  Cotton Yarns  Cotton Yarns  Home textiles P

  18. Slide 18: Wide distribution network and marquee clientele

    Wide distribution network and marquee clientele Presence and strong brand image across globe in over 55 countries… Evolved as vendor to… Expanded global foot print … …partner to leading textile solution …De-risk over dependence on few geography providers 18

  19. Slide 19: Diverse and wide product portfolio

    Diverse and wide product portfolio  One stop shop for all kinds of spun dyed yarns  Focus on value added yarns that fetched superior realisations like Cotton Mélange Yarn, Dyed Synthetic Yarn  Diversified offerings with presence across value chain with – Yarns & Home Textile 19

  20. Slide 20: Segment Presence – Yarn & Home Textiles

    Segment Presence – Yarn & Home Textiles 20

  21. Slide 21: Yarn - Consistent capacity addition over the years

    Yarn - Consistent capacity addition over the years Spindles capacity Sales (MT) 412,968 +9.6% 104,359 377,688 +8.5% 79,666 80,040 293,736 76,334 72,346 253,000 261,736 208,104 155,456 FY05 FY08 FY12 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16  Invested in modernization - 54% of spindle age are les

  22. Slide 22: Registering strong growth in Yarn segment…

    Registering strong growth in Yarn segment… Revenue (Rs. Cr) Average Sales Realisation (Rs / Kg) 2,177 222 219 207 206 200 1,768 1,784 1,581 1,447 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 … through multiple capacity expansions as well as profitable acquisitions 22

  23. Slide 23: Home Textiles – Entering Growth Orbit

    Home Textiles – Entering Growth Orbit Capacity (Million Meters Per Annum)  Entered the Home Textiles segment in 2006-07 9.6  Capacity to expand by 4.6 mmpa to 9.6 mmpa by FY17  Continued focus on driving category premiumisation  Product range includes +17.0% – Furnishing Fabrics – Curtain Fabric

  24. Slide 24: Annual Financial Performance

    Annual Financial Performance 24

  25. Slide 25: Total Income at new peak …

    Total Income at new peak … 2,302 +10.0% 1,923 1,918 Home Textiles 4.0% 1,728 1,573 96.0% Yarn FY12 FY13 FY14 FY15 FY16 Figures in Rs Crore 25

  26. Slide 26: … Highest ever profitability

    … Highest ever profitability EBITDA (Rs Cr) Net Profit (Rs Cr) +15.0% +45.5% 306 311 143 131 272 115 234 178 77 32 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 26

  27. Slide 27: … and strong leverage position

    … and strong leverage position Average Interest Rate of Term Improving Total Debt / Equity Ratio Robust Interest Coverage Loans (After TUF) 2.6 4.9 4.0 3.8 1.9 1.4 8.0% 2.5 7.2% 7.5% 7.3% 6.8% 1.1 1.1 1.8 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 27

  28. Slide 28: Strong Balance Sheet…

    Strong Balance Sheet… Growing Gross Block (Rs Cr) Increasing Networth (Rs Cr) Surging Earning Per Share (Rs) +45.7% 1,667 676 87.5 +10.1% 80.2 1,397 +25.1% 558 70.5 1,226 1,136 1,147 462 346 47.0 276 19.4 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Continuous growth pl

  29. Slide 29: …with healthier return ratios in the industry

    …with healthier return ratios in the industry Strong Return on Equity (RoE) Consistent Return on Capital Employed (RoCE) 28.0% 28.0% 23.0% 23.0% 22.0% 21.0% 21.0% 21.0% 18.0% 12.0% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 RoE = Profit After Tax /Networth RoCE = EBITDA/Capital Employed (Netw

  30. Slide 30: Highest ever Dividend in history of Company

    Highest ever Dividend in history of Company Dividend Per Share (Rs) Dividend Payout (%) 13 18% 17% 10 12% 8 8% 5 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Board recommended highest ever Dividend of Rs 13 per equity share for FY16 30

  31. Slide 31: Key financial highlights

    Key financial highlights Rs. in Cr USD mn Particulars FY14 FY15 FY16 FY14 FY15 FY16 Total Revenues 1,923 1,918 2,302 337 315 339 EBITDA 306 272 311 54 45 46 PAT 131 115 143 23 19 21 Total Assets 1,273 1,341 1,709 223 220 251 Net Worth 462 558 676 81 92 99 Long Term Debt 267 339 427 47 56 63 Total De

  32. Slide 32: Business Outlook

    Business Outlook 32

  33. Slide 33: Business Outlook

    Business Outlook Niche Value Added  Consistent production of high margin value added products to result in greater proportion Products of Cotton blended dyed and Mélange Yarn in the overall mix  Acquisition of BTM & enhancing spindles capacities towards manufacturing Cotton Growing Core Business b

  34. Slide 34: Industry Discussion – Home Textiles

    Industry Discussion – Home Textiles  Global Home Textile market is estimated at USD 45 bn  India’s market share on a continuous uptrend (improved 20% points over the last five years — from 27% in 2009 to 47% in 2015) India’s Market Share on a continuous uptrend India 27 33 38 45 47 46 China 29 30

  35. Slide 35: Domestic Home Textile Industry Overview

    Domestic Home Textile Industry Overview Domestic Home Textile Market (Rs Cr) Category wise market break-up (Rs Cr) CAGR 40,780 Categories 2011 2016 (P) 2021 (P) (%) Bed Linen 8,965 13,170 19,350 8.0 +8.3% Towels 3,320 4,840 7,060 7.8 27,365 Curtains 1,850 2,975 4,790 10.0 Blankets 1,465 2,040 2,850

  36. Slide 36: Indian Textile Sector - Present

    Indian Textile Sector - Present $108 Indian Textile sector current size Billion 2nd Largest employment generator, Employs 45 mn people directly 50 Million spindles along with 842,000 Rotors capacity across ~3,400 mills 13% Share in country’s export earnings 10% Contribution to India’s manufacturing

  37. Slide 37: Indian Textile Sector Potential

    Indian Textile Sector Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 9.886 58 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Market Valu

  38. Slide 38: About Us

    About Us Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Executive Chairman of STIL, a Chartered Accountant and Master of Science in Industr

  39. Slide 39: Thank You

    SUC) Thank You

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