Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q3 FY2021 Earnings Presentation
32 slides from Sutlej Textiles & Industries's earnings presentation, Feb 7, 2021
Slide 1: Sutlej Textiles and Industries Limited - Result Presentation Cover Letter
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: Re-aligning to the New Normal
Re-aligning to the New Normal Q3FY21 Result Presentation | February 2021
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: Q3 FY21 Result Updates
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Slide 5: Financial Performance Q3FY21
Financial Performance Q3FY21 Consolidated (Rs crore) Q3FY21 Q2FY21 QoQ % Q3FY20 YoY % Total Income 557 473 18% 586 -5% Raw material cost 303 277 9% 306 -1% Gross Profit 254 196 29% 280 -9% GP margin 45.55% 41.48% 407 bps 47.73% -218 bps Employee cost 83 74 13% 89 -6% Other expenses 119 98 21% 129 -8
Slide 6: Continued Recovery in Yarn Business, Post Covid-19
Continued Recovery in Yarn Business, Post Covid-19 Effective utilization near to …with improving Demand Scenario… …both in Domestic and Export markets pre-Covid levels… Standalone Sales (Rs Crs) 94% 26,515 26,210 573 460 542 85% 68% 30% 34% 32% 23,257 70% 66% 68% Q3FY20 Q2FY21 Q3FY21 Q3FY20 Q2FY21 Q
Slide 7: Strengthening the Balance Sheet
Strengthening the Balance Sheet Consistently reducing the Total Debt (Rs Cr.)… ….Leading to lower Finance Cost (Rs Cr.) 0.98 0.91 0.93 920 871 10 862 8 381 291 290 7 539 580 572 FY19 FY20 9MFY21 Q3FY20 Q2FY21 Q3FY21 Long Term Short Term Debt Equity (x) Overall Debt has reduced by Rs.58 Crs from FY
Slide 8: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years
Slide 9: 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
Slide 10: Key Business Verticals
Key Business Verticals SPECIALISED YARN Dyed Yarns Value Added Yarn Segment Melange Yarns SUSTAINABLE GREEN FIBRE Recycled Polyester Recycled Green fibre Staple Fibre Curtains HOME TEXTILES Upholstery Niche Segment Made Ups 9
Slide 11: Guided by Industry Veterans and Experienced Management
Guided by Industry Veterans and Experienced Management 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-Executive Director Non-Executive Director Non-Executive Director Non-Execut
Slide 12: From the Executive Chairman’s Desk
From the Executive Chairman’s Desk Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The decline in Covid cases and the gradual lifting of restrictions in India has witnessed a revival of consumer consumption. Prices have recovered lost gro
Slide 13: Consistently Expanding Capacities and Product Portfolio
Consistently Expanding Capacities and Product Portfolio… Acquisition of Birla Commenced commercial Acquired Design, Textile Mills production of 31,104 Sales, and Spindles at Chenab Textile Distribution (DS&D) 35,280 spindles – Mills, J&K to manufacture business along with commenced commercial Cotton
Slide 14: Focused on Value Added Specialty Yarn
Focused on Value Added Specialty Yarn Always Opted for Expansion into High Value Specialty Yarn
Slide 15: Among the Leading Yarn Capacities in India
Among the Leading Yarn Capacities in India Our manufacturing facilities are capable to handle a variety of Raw Material, having different Counts We work very closely with our Customers to fulfil requirements and on the ethos, ‘Manufacture to Sale and Not to Stock’ Kathua, J&K Baddi, Himachal Pra
Slide 16: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business Leading Yarn manufacturer in India 4,21,890 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ~35% dedicated to Melange Yarn ~65% dedicated to various blends Well Diversified Product Portfolio 4,,21,890 Marquee clients like
Slide 17: Sustainable Green Fibre Unit
Sustainable Green Fibre Unit Backward integration into recycle fibre to meet captive demand
Slide 18: Improving Operating Efficiency by Backward Integration
Improving Operating Efficiency by Backward Integration… Captive Utilisation RPSF – A Key Raw Material for Sutlej Bottle Flake Fibre Yarn Fabric Building a Sustainable Green Fibre Plant for captive use Details • Likely to fulfil ~65% of the Capacity to produce raw white and black recycled fibre capti
Slide 19: With Green Fibre Plant – Commenced Trial Production
…With Green Fibre Plant – Commenced Trial Production Successfully Commenced Trial Production of 120 MT/day Green Fibre unit, Commercial Production expected in March 2021 18
Slide 20: Home Textile Business
Home Textile Business One of the Few Listed Curtains & Upholstery Players
Slide 21: Home Textile Business
Home Textile Business Focus on Curtains, Upholstery & Made ups One of the leading producers & exporters of Home Decor Increase in Loom Capacities (MMT) over past 12 yrs Acquisition of American Silk Mills (ASM), leading Design & Distribution Company in USA Latest Technology in design & manufa
Slide 22: Home Textile Business – Key Initiatives
Home Textile Business – Key Initiatives Forayed into Cut length service Successfully forayed into Cut length Service to Multi Brand Outlets (MBOs) under our brand ‘Nesterra’ at premium price points Improving Service levels High responsiveness towards customers Standardized manufacturing and sa
Slide 23: Home Textile Business – Key Initiatives
Home Textile Business – Key Initiatives Acquired Design, Sales, and Distribution New Channels/Customer (DS&D) business along with brand of American Silk Mills LLC Segments (ASM) Diversifying into new channels like Large format stores, Furniture manufacturers etc. Widening the product portfolio O
Slide 24: NESTERRA – Home Textile Brand
NESTERRA – Home Textile Brand Through ‘Nesterra’ creating exclusive collections with differentiated unique product offering with 180 SKUs Nesterra’ introduced three new collections viz. The Global Traveller: Captures the essence of traditions around the world. Silken Roots : Luxurious collecti
Slide 25: Home Textile Business – Market Penetration
Home Textile Business – Market Penetration MakingSales, Acquired Design, inroadsand across the globe (DS&D) business along with brand of American Silk Mills LLC Distribution (ASM) Have been approved supplier with Ikea and some of the other large furniture retailers like Crate & Barrel and Ethan Al
Slide 26: NESTERRA – Soon to be launched Website
NESTERRA –Soon to be launched Website Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Developed fully integrated Web Site for rich consumer experience to look & feel and select latest collection and fitment online. 25
Slide 27: Building Organization
www.americansilk.com Building Organization
Slide 28: American Silk Mills (ASM)
American Silk Mills (ASM) New Channels Achieved more than 80 new SKU placements with furniture manufacturers. This is which is the largest amount for the company in last 4 years. Opened over 200 new accounts primarily in the Designer channel. Launched 350 Designer Books and Mini Books to suppo
Slide 29: American Silk Mills (ASM)
American Silk Mills (ASM) Operational Efficiencies Improved Gross Margins by over 200 bps during the year 2020. Have reduced expenses and focused on Inventory reduction. Revamp of Sales force Added experienced Designer Direct Sales Representatives as well as Furniture Manufacturer Sales Repres
Slide 30: Annexures - Financials
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Slide 31: Key Balance Sheet Ratios
Key Balance Sheet Ratios Average Interest Rate of Term Loans Comfortable Total Debt/Equity Ratio (x) Robust Interest Coverage (x) (After TUF) FY17 1.30 FY17 5.2 6.8% 6.7% FY18 1.15 FY18 4.8 6.2% 6.2% 6.3% FY19 0.98 FY19 4.2 FY20 0.91 FY20 4.3 9MFY21 0.93 FY17 FY18 FY19 FY20 9MFY21 30
Slide 32: Let’s Connect
“Opportunities don't happen. You create them.” 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 Street, Andheri (East), Mumbai 400 09
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