S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q2 FY25 Earnings Presentation
48 slides from S.p. Apparels's earnings presentation, Nov 11, 2024
Slide 1: Financial Presentation cover letter to exchanges
S.P.APPARELS LTD. Regd. Office : 39-A, Extension Street, Kaikattipudur, AVINASHI - 641 654, Tamil Nadu, India. Phone : +91-4296-714000 E-mail : spindia@s-p-apparels.com Web : www.spapparels.com CIN No.: L18101TZ2005PLC012295 11" November, 2024 The Listing Department The Listing Department BSE Limite
Slide 2: Dressing the Future....
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Slide 3: Table of Content
TABLE OF CONTENT Sr No. Content 1 Quarter Highlights: Q2 & H1FY25 2 Company Overview 3 Garment Division 4 S. P. Retail 5 S. P. Apparels (UK) 6 Growth Drivers 7 Financial Highlights 2
Slide 4: Quarter Highlights: Q2 & H1 FY25
Quarter Highlights: Q2 & H1 FY25 Dressing the Future.... 3
Slide 5: Q2 & H1FY25: Performance Highlights (Standalone)
Q2 & H1FY25: Performance Highlights Standalone Adj. Total Revenue (Q2FY25) Adj. EBITDA (Q2FY25) PAT (Q2FY25) Standalone YoY Growth % Standalone Margin % Standalone Margin % ₹ 2,575 Mn 4.6%+ ₹440 Mn 17.1% ₹180 Mn 7.0% Standalone Adj. Total Revenue (H1FY25) Adj. EBITDA (H1FY25) PAT (H1FY25) Standalone
Slide 6: Q2 & H1FY25: Performance Highlights (Consolidated)
Q2 & H1FY25: Performance Highlights Consolidated Total Revenue (Q2FY25) EBITDA (Q2FY25) PAT (Q2FY25) Consolidated YoY Growth % Consolidated Margin % Consolidated Margin % ₹ 3,937 Mn 32.1% ₹ 521 Mn 13.2% ₹219 Mn 5.6% Consolidated Total Revenue (H1FY25) EBITDA (H1FY25) PAT (H1FY25) Consolidated YoY Gr
Slide 7: Segmental Highlights
Segmental Highlights Garment Exports SPUK Retail Adj. Operational Revenue (Rs. Mn) Operational Revenue (Rs. Mn) Operational Revenue (Rs. Mn) 316.1 4,588.7 4,713.7 293.3 426.8 373.7 199.0 2,461.0 2,575.1 276.9 145.3 225.3 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1
Slide 8: Garment Division – Operational Update
Garment Division – Operational Update Capacity Utilization Export Volumes & Realization Export Volumes (mn pcs) & Net Sales Realisation in INR 82.0% 16.0 160.00 145.9 147.2 134.0 133.5 135.4 132.6 140.00 15.5 15.5 15.4 15.3 120.00 15.0 74.9% 100.00 14.5 14.4 80.00 14.3 14.0 60.00 13.8 13.5 40.00 13.
Slide 9: P&L Statement Highlights (Standalone)
P&L Statement Highlights (Standalone) Particulars (In Rs Mn) Q2 FY25 Q2 FY24 YoY% Q1 FY25 QoQ% H1 FY25 H1 FY24 YoY% Revenue from Operations 2,560.4 2,514.6 1.8% 2,140.5 19.6% 4,700.9 4,693.9 0.1% Gain on account of Foreign Currency Fluctuations 14.7 -53.5 -1.9 12.8 -105.2 Adj. Total Revenues 2,575.1
Slide 10: P&L Statement Highlights - Young Brand Apparel
P&L Statement Highlights - Young Brand Apparel Particulars (In Rs Mn) Q2 FY25 Q1 FY25 QoQ Revenue from Operations 942.3 595.8 Gain on account of Foreign Currency Fluctuations 14.0 11.3 Adj. Total Revenues 956.2 607.1 57.5% COGS 531.4 293.7 Gross Profit 424.8 313.4 35.6% Gross Margin % 44.4% 51.6% Em
Slide 11: P&L Statement Highlights (Consolidated)
P&L Statement Highlights (Consolidated) Particulars (In Rs Mn) Q2 FY25 Q2 FY24 YoY% Q1 FY25 QoQ% H1FY25 H1FY24 YoY% Revenue from Operations 3,913.0 2,924.6 33.8% 2,453.1 59.5% 6,366.1 5,400.9 17.9% Other Income 23.9 56.3 27.1 51.0 98.0 Total Revenue 3,936.8 2,981.0 32.1% 2,480.3 58.7% 6,417.1 5,498.
Slide 12: Balance Sheet Highlights (Consolidated)
Balance Sheet Highlights (Consolidated) ASSETS (Rs. Mn) Sep’24 Mar’24 EQUITY AND LIABILITIES (Rs. Mn) Sep’24 Mar’24 Non-Current Assets Equity a. Equity Share capital 250.9 250.9 a. Property, Plant and Equipment 5,279.3 4,212.3 b. Other Equity 7,733.1 7,385.5 b. Right of Use Assets 244.8 264.7 Total
Slide 13: Company Overview
Company Overview S. P. Apparels Limited (SPAL) founded in 1989, is India's biggest manufacturer and exporter of knitted clothes for infants and children. These are produced in integrated facilities that enable end-to-end garment manufacturing services. SPAL offers complete garment production service
Slide 14: About us – S. P. Apparels (SPAL)
About us – S. P. Apparels (SPAL) SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India Strong promoter pedigree with more than 40 years of experience in the textile and apparel industry Provides end-to-end garment manufacturing from Yarn to fini
Slide 15: Journey So Far
Journey So Far 1989 2016 2024 Started export operations as a partnership firm 2006 ▪ Investment by NYLIM ▪ Listed on BSE / NSE ▪ Acquired Young Brand 1998 ▪ Investment in JV for manufacturing & marketing of Set-up manufacturing facility at Neelambur Apparels pvt ltd the “Crocodile” Brand ▪ Repayment
Slide 16: Effective Management Structure
Effective Management Structure Board of Directors Mr A.S. Anandkumar Mrs H .Lakshmi Priya Mr C. R. Rajagopal Mr V. Sakthivel Independent Director Independent Director Independent Director Independent Director Mr P. Sundararajan Chairman and Managing Director Garment Export Division • Founder directo
Slide 17: Integrated Facilities – Right from Yarn to Garment
Integrated Facilities – Right from Yarn to Garment SPINNING KNITTING DYEING CUTTING PRINTING AUTOMATED AUTOMATED SEWING SEMI-AUTOMATED EMBROIDERY SEWING ASSEMBLY LINE INVENTORY MANAGEMENT 16
Slide 18: Garment Division: Established Global Player
Garment Division: Established Global Player 17
Slide 19: Garment Division at Glance
Garment Division at Glance Well Established Garment Export Business (Kids & Infants) Leading Leading Kids and Infants Exporter Globally exporter +70% +70% Growth in Garment Exports Growth Revenue from FY16 to FY24 15-20% Consistently Delivered EBITDA Margins Margins between 18%-20% Global Catering t
Slide 20: Infants and Kids Segment a Critical Sector to Cater
Infants and Kids Segment a Critical Sector to Cater Key Entry Barriers • Labour intensive operations Skilled Labour • Employee training & skill development • Employee occupational health & welfare • Cater to infants and children Products • Manufacture high-fashion garments • Stringent safety and qua
Slide 21: Preferred Vendor To Reputed International Brands
Preferred Vendor To Reputed International Brands Strong Pedigree Leading children wear manufacturer under the leadership of Mr. Sundararajan, CMD with more than 40 years of experience in apparel industry SPAL is the preferred vendor for knitted garments for infants and children to reputed internatio
Slide 22: Complete Integration enables Quality Consistency and Timely Delivery
Complete Integration enables Quality Consistency and Timely Delivery Quality checks at every stage Product Order Spinning Knitting Dyeing Garmenting Export Development Packing of Design Purchase of Sewing orders as per Creation dyed yarn instructions Yarn Customer Converts Fabric dyed Final AQL Deve
Slide 23: Developed Capabilities Over the Years
Developed Capabilities Over the Years Demonstrated manufacturing excellence for over 3 Meeting stringent compliance requirements of 01 04 decades international customers Clear understanding of buyer preferences and Long-standing relationships with reputed global 02 specifications of knitted garments
Slide 24: Proficient In-House Design Team
Proficient In-House Design Team SPAL’s core competency lies in understanding the latest fashion and trends to suit the customer’s buying preferences Dedicated in-house design and merchandising team of designers located at SPUK and at our Corporate Office in India Use of latest technology for develop
Slide 25: Quality is a key essence of our success
Quality is a key essence of our success SPAL places a strong emphasis on upholding highest standards of quality, assurance, and compliance throughout the apparel manufacturing processes Stringent quality control checks at every stage, from fabric to garment, ensure top-notch product quality, free fr
Slide 26: Improving Operating leverage to thrust growth
Improving Operating leverage to thrust growth Capacity Utilization Trend EBITDA Margin (%) 82.0% 22% 76.0% 72.0% 20% 18% 18% 60.0% 17% 58.0% FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Potential to raise existing utilisation levels by 10% to 20%**, which will EBITDA Margin (%) to remain su
Slide 27: Young Brand Apparels – Entry into Intimate Wear Exports
Young Brand Apparels – Entry into Intimate Wear Exports Intimate The company offers innerwear and Marquee Core export customers are Marks & outerwear for men, women and kids. It Spencer, PINK (Victoria’s Secret), Wear specializes in intimate wear Customers Jockey, American Eagle Owns a 2,80,000 sq.
Slide 28: S.P. Retail: Building a Brand for Future
S.P. Retail: Building a Brand for Future 27
Slide 29: Evolution of Retail Division
Evolution of Retail Division 2006 2008 - 2012 2013 - 2019 2020 - 2022 Acquisition of CPPL Revolutionizing Retail: Store Expansion and & exclusive Crocodile's Flagship Acquired licensee of Angel & Rocket Phase of Consolidation Crocodile license Stores Unveiled ➢ SPAL acquires major stake in 2008 ➢ Th
Slide 30: Retail Division - A High Value Brand Play
Retail Division - A High Value Brand Play Fuelled by a robust distribution network, SPAL an in-house design team, and a Crocodile is an Established and a Crocodile profitable brand with Pan India Retail sustainable growth strategy, Retail is One of the fast-growing division of SPAL Presence and Good
Slide 31: S. P. Retail – The Brand Portfolio
S. P. Retail – The Brand Portfolio Leading Apparel brand Establishing New Brands Portfolio 49 46 5 In large Standalone Standalone stores format stores stores Leading Apparel brand with a Strategic acquisition of a premium kids wear brand, presence across India to establish our very own kids and infa
Slide 32: S.P. Apparels (UK) (P) Ltd: Tapping the Global Market
S.P. Apparels (UK) (P) Ltd: Tapping the Global Market 31
Slide 33: S.P. Apparels (UK) (P) Limited (SPUK)
S.P. Apparels (UK) (P) Limited (SPUK) SPUK – Need of an hour to Caters to Large cater to European Clients European Brands Incorporated in 2014 to explore possible Strong consumer ties to well- marketing opportunities and engage in known businesses like Joules trading activities with new and existing
Slide 34: Growth Drivers
Growth Drivers 33
Slide 35: Growth Drivers
Growth Drivers • Young Brand acquisition strengthens SP Apparels presence in US market • The ~24-acre land holds potential for expanding the • Plans to expand into men, capacity in near future women, intimate wear and • Cross sell synergies between other categories young brand customers and • Leadin
Slide 36: Macro Tailwinds – To boost Indian Garment Exports
Macro Tailwinds – To boost Indian Garment Exports China Plus-One and Reduction of dependency from Bangladesh by International customers will Benefit the Indian Garment Industry Benefit for SPAL Capacity Utilization to grow by 10%-20% Source: Business Standard in near future According to CII India’s
Slide 37: FTA and RoDTEP – Bringing Indian Exporters at a level playing field
FTA and RoDTEP – Bringing Indian Exporters at a level playing field FTA’s, RoSCTL and RoDTEP to Push the Indian Garment Exports Benefit for SPAL • India and UAE have recently signed a Free Trade Agreement (FTA) • India is also in the process of negotiating FTAs with the EU, Australia, UK, Canada, Is
Slide 38: Garment Industry - Opportunities Ahead
Garment Industry - Opportunities Ahead Garment Market to pick up post hit from macro-headwinds Benefit for SPAL Global Apparel Market, Forecast Market Size, 2022-2027, $ Billion Men's Wear: 831 6.57% 782 737 694 653 610 S. P. Apparels – One of the leading Global Exporters of Infant Global Garment an
Slide 39: ESG
ESG Mission Statement: "To achieve carbon neutrality by the year 2033" Vision Statement: “To be a sustainable practise leader by promoting the use of renewable energy and prioritising the usage of recycled materials in order to protect our world for future generations” At SPAL we are committed to bu
Slide 40: Sustainability at SPAL
Sustainability at SPAL Our approach to sustainability is guided to create long-term value in a balanced and responsible manner while making choices that positively impact environment, people, and communities. OUR PILLARS Sustainable business Responsible production Creating social impact Commitment t
Slide 41: From Awareness to Action: Making a Difference for the Environment
From Awareness to Action: Making a Difference for the Environment Our company is committed to conducting business activities in an environmentally responsible manner. We focus on reducing our environmental footprint across the value chain and returning back to nature what we consume. Environmental S
Slide 42: Building Stronger Communities through Social Responsibility
Building Stronger Communities through Social Responsibility Our company is committed to conducting business activities in an environmentally responsible manner. We focus on reducing our environmental footprint across the value chain and returning back to nature what we consume. Building a Stronger C
Slide 43: Financial Highlights
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Slide 44: Financial Highlights (1/2)
Financial Highlights (1/2) Consolidated Figures (in Rs. Mn) Adj. Total Revenues Adj. EBITDA & EBITDA MARGIN Profit After Tax (PAT) & PAT MARGIN 9.8% 10,984.0 7.5% 8.3% 10,774.0 17.6% 6.6% 16.4% 5.6% 8671.9 15.7% 8089.7 14.4% 6523 10.8% 846.9 825.1 896.2 1,528.2 1,728.9 1,551.1 895.3 1,072.0 469.2 43
Slide 45: Financial Highlights (2/2)
Financial Highlights (2/2) Figures (in Rs. Mn) GARMENT DIVISION 20.2% 20.9% 17.6% 18.7% 12000 9,600.4 9,383.7 12.0% 10000 8000 7,026.4 7,429.3 6000 5,368.7 4000 1,553.2 1,791.0 1,655.5 2000 842.6 1,083.3 0 FY20 FY21 FY22 FY23 FY24 Garment Revenue Garment EBITDA Margin RETAIL DIVISION SPUK 1000 768.1
Slide 46: Shareholding Structure
Shareholding Structure SHAREHOLDING PATTERN – 30th September 2024 Non-Institutions 16.9% KEY SHAREHOLDERS – 30th September 2024 Promoters 61.9% DSP Small Cap Fund 8.67% Quant Mutual Fund 3.37% Institutions 21.2% UTI Mutual Fund 2.12% Franklin India Smaller Companies Fund 2.44% Mahindra Manulife Busi
Slide 47: Disclaimer
Disclaimer This presentation has been prepared by S. P. Apparels Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or o
Slide 48: Let's Connect!
LET'S CONNECT! SP Apparels EY LLP Mr. V. Balaji, Chief Financial Officer Mr. Vikash Verma / Mr. Abhishek Bhatt / Shrishti Tandon Balaji.V@spapparels.com Vikash.verma1@in.ey.com / Abhishek.bhatt3@in.ey.com / Shrishti.tandon@in.ey.com 47 Visit us at: www.s-p-apparels.com