Sarla Performance Fibers Limited · NSE:SARLAPOLY
Sarla Performance Fibers — Q1 FY2014 Earnings Presentation
20 slides from Sarla Performance Fibers's earnings presentation, 2014
Slide 1: Results Presentation Q1FY2014
Results Presentation Q1FY2014
Slide 2: Financials & Key Ratios
Financials & Key Ratios 2
Slide 3: Q1FY2014 Financials (Consolidated)
Q1FY2014 Financials (Consolidated) Focus on niche high value products combined with improved raw material sourcing enables strong increase in profitability 3
Slide 4: Company Performance & Outlook
Company Performance & Outlook • Continued growth trajectory with strong Revenue, EBITDA & PAT for the Q1FY14 • Revenue – Rs. 60.52 crore (down 1.86%). Revenue were fairly stable compared to the previous corresponding quarter • EBITDA – Rs. 13.62 crore (up 46.76%). Margins improved by 746 bps compare
Slide 5: Managing Director's Comment
Managing Director’s Comment 5
Slide 6: Managing Director's comment on performance
Commenting on the performance, Mr. Krishna Jhunjhunwala, Managing Director of the Company said, “We are glad to begin the year on a positive note. We have been able to improve operational efficiencies significantly, which is reflected in our profitability. Our efforts to deepen relationships with ke
Slide 7: Revenue Breakup and Gross Margin (Delta) on Polyester and Nylon Yarns
Revenue Breakup and Gross Margin (Delta) on Polyester and Nylon Yarns 7
Slide 8: Segment Breakup
QUFY14 QUFY13 Commodities
Slide 9: Geographical Breakup
Qeasa 4? Geographical Breakup QUFY14 Q1FY13 Asia Pacific 30%
Slide 10: Gross Margin (Delta) on Polyester and Nylon Yarns
Gross Margin (Delta) on Polyester and Nylon Yarns Gross Margin/kg (Rs.) Nylon Polyester Q1FY2014 88 56 10
Slide 11: Company Profile
Company Profile 11
Slide 12: Manufacturer of specialized polyester & nylon yarns and threads
• Manufacturer of specialized polyester & nylon yarns and threads • Listed on the BSE in 1995 and subsequently NSE in 1997 • Has an established manufacturing unit in Silvassa for polyester textured/twisted yarn • Capacity of 11,900 tons per annum • In-house dyeing plant in Vapi broadening the produc
Slide 13: Progress from commodity yarns to specialized higher value added yarns
• The Company in its early stages began operations as a manufacturer of commodity yarns and has now successfully progressed to specialized and higher value added yarns • Caters to a niche clientele of marquee customers • Amongst the largest manufacturers for air covered and conventional covered yarn
Slide 14: Manufacturing facility in the US for POY and sewing thread
Manufacturing facility in the US will cater to POY used in specialized textured polyester yarn as well as sewing thread •Total size of opportunity in the US for sewing thread is $ 100 mn Benefits arising out of the US facility •Duty free benefits on goods manufactured inside the US as per NAFTA & CA
Slide 15: Financial Discipline and Wind Power
• Prudent deployment of funds • Extremely low leverage Financial • Cash surplus being deployed to grow stable wind power Discipline business • No further equity infusion or other debt funds required at this point • Deployment of strong cash flows to expand into the wind power business Wind power • S
Slide 16: Industry Perspective
Industry Perspective
Slide 17: U.S. Synthetic Apparel Sourcing Trends
U.S. Synthetic Apparel Sourcing Trends US apparel makers lost 38% share in the past 12 years; Market share now stabilizing US Markets share stabilizing, set to return to erstwhile levels Source: Industry data • New Policies in the US favors local manufacturing (Rule of origin; Yarn Forward etc.) • L
Slide 18: US vs Asia/Far East yarn prices
75/70 den textured 150 den textured 400 378 372 372 372 376 376 350 319 319 319 328 328 361 306 306 350 300 300 250 225 195 185 185 185 190 250 210 215 215 215 175 172 200 197 200 200 c/kg c/kg Asia/Far East 150 150 USA 100 100 50 50 0 0 Source: Industry data US Prices are 55 -90% higher than Asia/F
Slide 19: Regional Competitive Advantages
Regional Competitive Advantages Competitive cost $5.76 • Duty-free benefits of up to 32% on synthetic garments $5.44 • Greater labor productivity than most other yarn suppliers • Higher inflation in China/Asia Faster supply and flexibility • Shorter lead times of 6 to 7 weeks from “order” to “U.S. d
Slide 20: Sarla Performance Fibers Limited / CDR India contact
For further information contact Sarla Performance Fibers CDR India Limited Mahendra Sheth (CFO & Company Secretary) Gavin Desa msheth@sarlafibers.com gavin@cdr-india.com Tel.: +91 22 2283 4116 / 6632 4038 Rishab Barar rishab@cdr-india.com Tel.: +91 22 6645 1237 / 1238 Safe Harbour: Certain statement
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