S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — H1 FY23 Earnings Presentation
30 slides from S.p. Apparels's earnings presentation, Nov 1, 2022
Slide 1: Cover letter to stock exchanges
S.RAPPARELS LTD. S&S. UKAS Regd Office 39-A, Extension Street, Kaikattipudur, AVINASHI 61 654, Tamil Nadu, India. : - Phone +01-4296-715001 E-mail spindia@s-p-apparels.com . : Web www.s-p-apparels.com CIN No.. L18101TZ2005PLC012295 017 November, 2022 The [isting Department The Listing Department BSE
Slide 2: Investor Presentation H1 & Q2 FY23 Results Update
Investor Presentation H1 & Q2 FY23 Results Update November 2022
Slide 3: Contents
Contents H1 & Q2 FY23 Results Update Company Overview Financial Overview & Shareholding Structure
Slide 4: Disclaimer
Disclaimer 3 This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial
Slide 5: H1 & Q2 FY23 Results Update
HB 1 S.P.APPARELS LTD. H1 & Q2 FY23 Results Update
Slide 6: H1 FY23 - Key Highlights
H1 FY23 - Key Highlights 5 60% YoY 39% YoY 48% YoY Growth in Total Revenue1 Growth in Gross Profit Growth in Adj. EBITDA PAT stands at 40% YoY 69% 72% Growth in Profit after Tax Increase in Garment Rs.487 mn Capacity Utilisation Revenue 68% increase in Stable operations in SP UK with revival in Reta
Slide 7: Q2 FY23 Result - Key Highlights
Q2 FY23 Result - Key Highlights 6 In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 3,145.2 20.0% 14.2% 14.0% 232.5 229.2 9.7% 2,226.7 444.4 445.2 7.3% 311.7 304.7 10.4% 41% 0.2% 2% 1% Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Notes: 1. To
Slide 8: H1 FY23 Result - Key Highlights
H1 FY23 Result - Key Highlights 7 In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 5,670.6 658.2 487.2 964.3 18.4% 13.5% 11.6% 17.0% 479.8 348.1 8.6% 3,545.0 653.7 9.8% 60% 48% 12% 40% H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Notes: 1. T
Slide 9: Q2 FY23 – Division Wise Analysis
Q2 FY23 – Division Wise Analysis 8 In Rs Mn Q2 FY23 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q2 FY22 Q2 FY23 Garment Exports 82.1% 85.4% 3058.0 17% 169.8 SPUK 11.2% 6.4% 201.2 2221.4 Retail 6.5% 5.4% 145.0 19% 248.9 2687.0 Adj. EBITDA MARGIN % 2 Q2 FY22 Q2 FY23 47% 1827.5 Garme
Slide 10: H1 FY23 – Division Wise Analysis
H1 FY23 – Division Wise Analysis 9 In Rs Mn H1 FY23 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE H1 FY22 H1 FY23 Garment Exports 84.8% 88.4% 5,670.6 341.8 80% 321.6 SPUK 10.3% 5.7% Retail 5.4% 6.0% 3,545.0 190.4 12% 365.7 5015.0 Adj. EBITDA MARGIN % 2 H1 FY22 H1 FY23 67% 3006.4 Gar
Slide 11: H1 FY23 - Key Analysis
H1 FY23 - Key Analysis 10 H1 FY23 total revenues1 increased by 60% YoY to Rs 5,671 mn Volumes (mn pcs) & NSR (INR) ❖ Revenues grew by 67% on a YoY basis in Garment Exports division due to traction in demand from existing customers 135.4 ❖ Realisation per piece improved by 17.4% YoY to 135.4. 115.3 1
Slide 12: H1 & Q2 FY23 Result - Consolidated Profit & Loss Statement
H1 & Q2 FY23 Result - Consolidated Profit & Loss Statement 11 Particulars (In Rs Mn) Q2FY23 Q2FY22 YoY% H1FY23 H1FY22 YoY% Revenue from Operations 3,058.0 2,219.7 37.8% 5515.7 3550.5 55.4% Gain on account of Foreign Currency Fluctuations 87.2 7.0 1149.3% 154.9 -5.5 - Total Revenues 3,145.2 2,226.7 4
Slide 13: H1 FY23 - Consolidated Balance Sheet
H1 FY23 - Consolidated Balance Sheet 12 Particulars (Rs Million) Mar-22 Sep-22 Particulars (Rs Million) Mar-22 Sep-22 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 256.9 a. Property, Plant and Equipment 4,105.1 4,193.2 Other Equity 6,120.8 6,658.7 b. Capita
Slide 14: Company Overview
B ' S.P.APPARELS LTD. Company Overview
Slide 15: Brief Profile
Brief Profile 14 BUSINESS OVERVIEW KEY STRENGTHS FINANCIAL OVERVIEW * ❖ SPAL is one of the leading manufacturers ❖ SPAL is a specialized player in the highly ❖ Reported Consolidated Revenues, EBITDA and exporters of knitted garments for challenging infant & children wear knitted and PAT were Rs 8,67
Slide 16: Our Evolution
Our Evolution 15 2016 ▪ Listed on BSE / NSE ▪ Repayment of Loans to reduce leverage 2004 2008-13 Set-up of flagship factory at Avinashi Streamlining of operations to integrate 2017-22 2005 the factories, increase efficiencies and ▪ Integration / expansion of Commissioned dying plant at increase back
Slide 17: Leading Exporter of Infant & Children Wear in India
Leading Exporter of Infant & Children Wear in India 16 SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES ❖ Labour intensive operations. ❖ Demonstrated manufacturing excellence for ❖ Employee tr
Slide 18: WHY SPAL?
Preferred Vendor To Reputed International Brands 17 Strong Pedigree Leading children wear manufacturer under the leadership of Mr. Sundararajan, CMD with more than 36 years of experience in apparel industry SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNA
Slide 19: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 18 SPINNING KNITTING DYEING
Slide 20: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 19 AUTOMATED CUTTING PRINTING EMBROIDERY
Slide 21: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 20 SEMI-AUTOMATED AUTOMATED SEWING INVENTORY SEWING ASSEMBLY LINE MANAGEMENT
Slide 22: Strong In-house Design Expertise
Strong In-house Design Expertise 21 STRONG DESIGN IS SPAL’S CORE COMPETENCY ❖ SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. ❖ Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and
Slide 23: Stringent Quality Controls & Compliance
Stringent Quality Controls & Compliance 22 ACCREDITATIONS AND AWARDS FOR OUR MANUFACTURING FACILITY/ABILITY Received laboratory accreditation ISO/IEC 17025:2005 by the National Accreditation Board for Testing and Calibration Authorities, Department ❖ Strong adherence to the highest standards of qual
Slide 24: Qualified Management with Deep Understanding of Apparel Sector
Qualified Management with Deep Understanding of Apparel Sector 23 ` Mr P. Sundararajan Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Joint Managing Director • Six years of experience in the textile and • Founder director of SPAL with 36 years of Founder director of SP
Slide 25: Board Of Directors - Wide Spectrum of Experience
Board Of Directors - Wide Spectrum of Experience 24 Mr A.S. Anandkumar Mrs H .Lakshmi Priya Mr C. R. Rajagopal Mr V. Sakthivel Independent Director Independent Director Independent Director Independent Director • 47 years of experience in banking • 20+ years of experience in corporate • Core areas o
Slide 26: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure
Slide 27: Financial Overview
Financial Overview 26 REVENUES Adj. EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN 9.1% 9.8% 8,672 18.4% 17.6% 7.2% 6.6% 8,264 8,090 15.3% 16.4% 5.6% 6,624 6,523 10.8% 1,528 847 1,238 1,238 734 1,072 895 478 469 432 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 LEVERA
Slide 28: Division-wise EBIDA Performance
Division-wise EBIDA Performance 27 GARMENT DIVISION 21.0% 20.2% 20.9% 17.6% 12,000 12.0% 10,000 6,805 7,429 8,000 7,026 5,734 5,369 6,000 4,000 1,202 1,194 843 1,083 1,553 2,000 - FY18 FY19 FY20 FY21 FY22 Garment Revenue Garment EBITDA Adj. EBITDA Margin (%) RETAIL DIVISION SPUK 4.4% 5.6% 5.3% 3.6%
Slide 29: Shareholding Structure
Shareholding Structure 28 SHAREHOLDING PATTERN – 30th September 2022 KEY SHAREHOLDERS – 30th September 2022 Non-Institutions 20.1% DSP Mutual Fund 8.41% Promoters ICICI Prudential Mutual Fund 3.77% 61.7% UTI Mutual Fund 3.63% Euro Asia Agencies, Hong Kong 1.34% Institutions 18.2% Source: BSE
Slide 30: For Further Queries
Q3 FY22 Results Update For Further Queries: Mr. V. Balaji Company Overview Chief Financial Officer Email: balaji.v@spapparels.com Financial Overview & Shareholding Structure www.s-p-apparels.com Mr. Chintan Mehta/Ms. Jill Chandrani IR Consultant Email: s.p.apparels@dickensonworld.com Contact no: +91