Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q2 FY2021 Earnings Presentation
31 slides from Sutlej Textiles & Industries's earnings presentation, Nov 10, 2020
Slide 1: Q2FY21 Result Presentation cover letter to stock exchanges
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 Q2FY21 Result Presentation | November 2020
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: Q2 FY21 Results Highlights
CA @ FY21 Result Highlights Q ZONK, - < & \ YS "
Slide 5: Financial Performance Q2 / H1 FY21
Financial Performance Q2 / H1 FY21 Particulars Consolidated Financial Results (Rs crore) Q2 Q2 YoY Q1 QoQ H1FY21 H1FY20 FY21 FY20 Chg % FY21 Chg % Total Income 473 644 -26% 197 140% 671 1,311 EBITDA 25 62 -60% -23 NA 2 112 EBITDA Margin (%) 5.24% 9.64% -440 bps -11.48% NA 0.32% 8.60% PBDT 16 51 -68%
Slide 6: Experiencing gradual recovery post-Covid in Yarn business
Experiencing gradual recovery post-Covid in Yarn business Utilization levels gradually recovering …supported by mix of Domestic & …with improving demand scenario… to Pre-covid levels… Exports. Yarn Sales (In Rs Crs) In MT 94% 27,571 Rs 629 Crs Rs 188 Crs Rs 460 Crs 23,257 68% 30.8% 33.6% 45.4% 46% 8
Slide 7: Strengthening Balance Sheet
Strengthening Balance Sheet Finance Cost (Rs. Cr) Total Debt (Rs. Cr) Debt to Equity (x) 920 0.98 871 862 24 806 20 381 291 276 223 0.91 0.88 11 8 539 580 586 583 FY19 FY20 Q1FY21 Q2FY21 FY19 FY20 H1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Long Term Short Term Total Debt has witnessed a reduction of Rs. 5
Slide 8: Executive Chairman's comments
Executive Chairman’s comments Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “Gradual climbing back of economy out of depths to which it had plummeted is reflected on our quarterly performance also. A steady contraction of active Covid-19
Slide 9: Sutlej
Sutlej Creation of a Strong Foundation over the years 8
Slide 10: 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 to + 6
Slide 11: Key Milestones
Key Milestones Commenced commercial Acquisition of Birla Textile Acquired Design, Sales, and production of 31,104 Spindles at Mills Distribution (DS&D) Chenab Textile Mills, J&K to Backward business along with brand manufacture Cotton Mélange and integration into 35,280 spindles – of American Silk M
Slide 12: Business Verticals
Business Verticals Dyed Yarns Value Added Yarns Melange Yarns Curtains Home Textiles Upholstery Made Ups 11
Slide 13: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Utilization in Leading spun dyed & Melange Yarn Industry Manufacturer in India Better RM & Power cost through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Ho
Slide 14: Experienced Team
Experienced Team 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 Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Rajiv K. Podar Mr. Rohit Dhoot Mr. Ashok
Slide 15: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns
Slide 16: Yarn Capacities
Yarn Capacities • Ability to handle variety of RM with different counts • Work very closely with customer to fulfil requirements Bhawanimandi, Rajasthan • Manufacture to Sale and not to Stock • 35,280 Spindles (Cotton Mélange ) • 90,384 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kat
Slide 17: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,19,640 Dyed Yarn Spindles ~35% dedicated to Melange Yarn ~65% dedicated to various blends 4,19,640 Well Diversified Product Portfolio Marquee clients like Siyar
Slide 18: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 17
Slide 19: Home Textile Business
Home Textile Business Focus on Curtains, Upholstery & Made ups One of the leading producer & exporter of Home Decor Increase in Loom Capacities over past 12 yrs Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State
Slide 20: Home Textiles Business
Home Textiles Business Strengthening Distribution Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Developing new distribution model for domestic market. Appointment of local independent sales agents in key export market. Engagement w
Slide 21: NESTERRA- Home Textile Division
NESTERRA- Home Textile Division Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Soon plan to launch ‘Nesterra’ Home Textile Brand in the upholstery and furnishings segment through Multi Brand outlets 20
Slide 22: Building Organization
www.americansilk.com Building Organization 21
Slide 23: American Silk Mills (ASM)
American Silk Mills (ASM) Covid-19 Preparedness Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Preserve liquidity. Keep our people safe and operate warehouse at reduced levels. Be ready to adapt to the inevitable societal and though
Slide 24: Improving Operating Efficiencies
Improving Operating Efficiencies 23
Slide 25: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive RPSF – A Key Raw Material for Utilisation Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day Location (adjacent to our existing yarn manufacturing unit) Baddi, Himachal Pradesh Fu
Slide 26: Green Fibre Facility-Commenced trial production
Green Fibre Facility-Commenced trail production Commenced Trial Production of the first line of 30 MT/day of the Green Fibre plant. 25
Slide 27: Green Fiber Facility-Commenced trial production
Green Fiber Facility-Commenced trail production To start trial run of second line of 90 MT/day soon Expect to start commercial production in Q4FY21 26
Slide 28: Annexure - Financials
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Slide 29: 5 year Performance Highlights
5 year Performance Highlights Revenue EBITDA PAT FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510 FY18 281 FY18 113 FY19 2,642 FY19 240 FY19 58 FY20 2,442 FY20 198 FY20 28 Performance of FY20 impacted due to lockdown of manufacturing units due to Covid-19 28
Slide 30: Balance sheet Ratios
Balance sheet Ratios Average Interest Rate of Comfortable Total Debt/Equity Ratio Robust Interest Coverage Term Loans (After TUF) FY16 1.2 FY16 4.9 7.3% FY17 1.3 FY17 5.2 6.8% 6.7% FY18 FY18 4.8 1.15 6.2% 6.2% FY19 4.2 FY19 0.98 FY20 4.3 FY20 0.91 FY16 FY17 FY18 FY19 FY20 29
Slide 31: THANK YOU! Let's Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! 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
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