Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q4 FY2022 Earnings Presentation
38 slides from Banswara Syntex's earnings presentation, May 4, 2022
Slide 1: Banswara Syntex Ltd Investor Presentation May 2022
Banswara Syntex Ltd Investor Presentation May 2022 1
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Banswara Syntex Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 3: Q4 & FY22 Highlights
Q4 & FY22 Highlights 3
Slide 4: Q4 & FY22 Highlights
Q4 & FY22 Highlights Total Income* EBITDA* PBDT* PAT +42.0% +22.8% +28.2% +15.5% 373 48 42 19 308 17 39 33 263 33 27 12 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Total Income* EBITDA* PBDT* PAT +50.3% +47.7% +86.9% +236.0% 1,207 136 111 47 803 92 60 14 FY21
Slide 5: Key Developments
Key Developments Proportion of the high margin value-added business (Fabric and Garments) has increased to 56% of the total sales in Q4FY22 as 1 compared to 49% in Q3FY22. Value-added business stood at 50% for FY22 vs 52% in FY21 Proportion of exports has increased to 51% of total sales in Q4FY22 as
Slide 6: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q4 FY22 Q4 FY21 YoY Q3 FY22 QoQ FY22 FY21 YoY Revenue from Operations 367.4 254.1 303.2 1,189.8 786.6 Employee Cost: Other Income 5.6 8.5 4.7 17.0 16.2 ▪ Employee cost as a % to production value* has reduced by ~3.5% in FY22 to ~18.0% which is largely
Slide 7: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Mar-22 Mar-21 Equity & Liabilities (Rs. in Crs) Mar-22 Mar-21 Non-current assets 377.1 360.3 Equity 400.1 357.4 Property, Plant & Equipment 306.4 330.8 Equity share capital 17.1 17.1 Right of use assets 5.7 3.9 other equity 383.0 340.3 Capital Work in prog
Slide 8: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crs) Mar-22 Mar-21 Operating profit before working capital changes 133.1 89.8 Changes in working capital -57.9 45.3 Cash generated from operations 75.2 135.1 Income Tax Refund/(Direct Taxes Paid) 22.6 -2.7 Net Cash from Operating Activities (A) 52.7 132.4 Net Cash from I
Slide 9: About Us
About US Our Specialty is Value Added Textiles 9
Slide 10: Our Journey
Our Journey • Started production of wool & wool • Started production of mixed fabrics in the brand name of Readymade Garments `SaintX` for domestic supply. • Banswara Textile Mills Ltd. • Started second unit of 15 MW (BTM), an associate firm captive thermal power plant. engaged in fabric finishing 1
Slide 11: Our Global Footprint
Our Global Footprint Incorporated in the year 1976 Offering Vertically Integrated Experienced Design Teams textile solutions Europe Design Studio in Collaboration USA Middle East with Italy and France 9,000+ Employees Japan Corporate Office - Mumbai Manufacturing Plants - • Banswara, Rajasthan In Ho
Slide 12: Manufacturing Capabilities
Manufacturing Capabilities Dyeing Unit Spinning Unit Weaving Unit Garmenting Unit The Company owns • 1,59,000 Spindles YARN FABRICS GARMENTS POWER GENERATION • 400 Looms Weaving- 2.7Mn Meters/ month 3,25,000 Trouser & Suiting's/ Month 3,060 Tonnes / month Processing- 4.5Mn Meters/ 80,000 Jackets & W
Slide 13: Strategically Located Facilities
Strategically Located Facilities Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainable supply It also ensures strong relationship with suppliers while maintaining need-based approach Easy Availability of skilled and Unskilled labour Quality Infrastructure conne
Slide 14: Leadership Team
Leadership Team Founded the Company in the year 1976. Masters in Textiles from Leeds University, UK. 55 years of experience in the textile industry. Late Shri. Toshniwal Ex-Chairman of Rajasthan Textile Mills Association, Ex-President of Indian Spinners Association and Ex-Chairman of the Synthet
Slide 15: Board of Directors
Board of Directors Mr. Rakesh Mehra Mr. Ravindra Kumar Toshniwal Mr. Shaleen Toshniwal Chairman Managing Director Joint Managing Director Mr. Parduman Kumar Mr. D P Garg Mr. J. M. Mehta Independent Director Independent Director Independent Director Mr. Vijay Mehta Mr. Kamal Kishore Kacholia Dr. S B
Slide 16: Business Segments
Business Segments 16
Slide 17: Yarn Business – The Building Block
Yarn Business – The Building Block Preferred Partner for the quality Focused Customers for Synthetic Blended Yarns Multi-specialty Yarn range with functional features Production of blends made of Stretch Yarns for weaving using viscose staple fibre, polyester staple fibre, acrylic branded lycra and
Slide 18: Fabric Business – The Growth Engine
Fabric Business – The Growth Engine Company is Focusing on High-Quality & Performance Fabrics Company sees favorable opportunities in production of Comfort fabric Expansion in Value Leveraging our Current Presence Flexibility in production due to best-in-class technology and state-of- Added Fabrics
Slide 19: Fabric Business – Growth Plan
Fabric Business – Growth Plan Improve the Product Mix Potential Partnerships Target Markets Venturing into production of Potential partnerships with synergistic Knitted fabrics benefits USA Europe Japan & Korea Increasing the market share in To shorten lead times by partnering with Deepen penetratio
Slide 20: Garment Segment – Value Addition Division
Garment Segment – Value Addition Division Garments is one of the fastest growing segments in the Textile industry 15+ years Experience One of the Largest manufacturer of Strong international presence in Garment manufacturing specialized Formal Suits, Jackets and with long term relationships with Tro
Slide 21: Domestic Clientele
Domestic Clientele E-Commerce Clients 21
Slide 22: International Clientele
International Clientele Working with some of the world’s biggest names 22
Slide 23: CSR Activities
CSR Activities Creation of garden in Banswara to provide locals with a means of recreation Cleaning of lake near the garden to increase the oxygen level of the water body. This has helped in the reduction of mosquitos and has brought back migratory birds Creation of a walking path of 5 KM along the
Slide 24: Strategic Focus & Outlook
Strategic Focus & Outlook 24
Slide 25: Industry expected to grow at ~11% CAGR over the next 5 years
Industry expected to grow at ~11% CAGR over the next 5 years Indian Domestic Apparels and Textiles Market (USD bn) ▪ Domestic textile and apparel industry faced a range of challenges 191 13 post covid induced lockdowns; fall in retail sales, logistical 10.3% CAGR 43 disruptions, manufacturing shutdo
Slide 26: China +1 provides huge opportunity for Indian Textiles Industry
China +1 provides huge opportunity for Indian Textiles Industry With favorable India Covid-19 has led to Demographics and redistribution of global Industry Dynamics, India trade shares and is capable to position recalibration of sourcing 01 06 itself as a Global Partners Textiles hub China +1 provid
Slide 27: Why Banswara Syntex Limited?
Why Banswara Syntex Limited? Modernized Skilled Design Competent Transition to Outlook to and Marketing Leadership Value Added Textiles and Teams Team Products Fashion Investment Rationale Focus on Vertically Export and Consistently 40+ years of integrated Industry Domestic business Lowering Debt Ma
Slide 28: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara Benefits Covers All Economies Geographic Product requirements- of Scale Expansion Specialization One Stop Shop 02 04 06 08 01 03 05 07 Sustainability Improved Competitive Significantly Supply pricing Lesser Lead Time Chain Co- ordination
Slide 29: Operational Focus
Operational Focus Cost Optimisation Measures ▪ Switched to grid power as thermal power cost has increased ▪ Looking to increase usage of solar Improvement in Capacity Utilization power and targeting zero thermal ▪ Demand improvement across power usage textile value chain across domestic ▪ Improvemen
Slide 30: Shift from Yarn to Garment
Shift from Yarn to Garment Revenues Revenue Breakup EBITDA 1,600 11.7% 15% - 17% 13% 16% 25% Expected Margin Increase of ~100 bps on a yearly basis 240-260 803 92 FY21 FY22e FY25e FY21 FY22e FY25e FY21 FY22e FY25e Garments Yarn Fabric Others CAGR CAGR 19% Target is to Banswara is well placed to capi
Slide 31: Financials
Financials
Slide 32: Revenue Mix – Segmental and Geography wise
Revenue Mix – Segmental and Geography wise Division-Wise Gross Revenue (Rs. in Crores) Geography-wise Gross Revenue (in %) 1,350 1,295 34 1,290 1,254 37 27 1,190 32 282 38 252 255 240 199 46% 45% 44% 43% 41% 45% 787 497 496 25 397 498 584 102 306 55% 56% 57% 59% 55% 54% 537 512 556 484 422 354 FY17
Slide 33: Improving Balance Sheet
Improving Balance Sheet Net Debt* (Rs. Crores) Debt-Equity Ratio* -28 585 557 -78 3.2 479 2.9 -151 2.2 328 +18 -84 262 244 1.4 0.8 0.7 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Debt-Equity Ratio= Total Debt / Total Shareholders funds The company has reduced
Slide 34: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs FY22 FY21 FY20 FY19 Revenue from Operations 1,189.8 786.6 1,289.5 1,350.9 Other Income 17.0 16.2 12.9 13.6 Total Income 1,206.7 802.8 1,302.4 1,364.5 Total Expenditure Raw materials 526.9 375.1 601.3 667.7 Employee Expense 220.9 153.1 241.7 236.9 Power
Slide 35: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Non-current assets 377.1 360.3 393.6 433.9 Equity 400.1 357.4 341.9 294.4 Property, Plant & Equipment 306.4 330.8 370.7 413.6 Equity share capital 17.1 17.1 17.1 17.1
Slide 36: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crores) Mar-22 Mar-21 Mar-20 Mar-19 Operating profit before working capital changes 133.1 89.8 150.7 133.7 Changes in working capital -57.9 45.3 65.5 6.6 Cash generated from operations 75.2 135.1 216.1 140.3 Income Tax Refund/(Direct Taxes Paid) 22.6 -2.7 -10.8 -3.0 Net
Slide 37: Dividend Payout History
Dividend Payout History Dividend 10% 10% 10% 15% 15% 25% Pay-out 31.1 EPS 26.7 DPS 14.2 11.2 8.5 4.9 2.5 1.0 1.0 1.0 1.5 1.5 FY17 FY18 FY19 FY20 FY21 FY22 The company has Consistently declared dividends Year-on-Year 37
Slide 38: Contact Us
Contact Us Company: Investor Relations Advisors: Banswara Syntex Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Mr. Kamlesh Nyati Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala kamleshnyati@banswarasyntex.com rahul.agarwal@sgapl.net / Brinkle.shah@sg