Sangam (india) Limited · NSE:SANGAMIND
Sangam (india) — Q4 FY24 Earnings Presentation
44 slides from Sangam (india)'s earnings presentation, May 10, 2024
Slide 1: Intimation to Stock Exchange – Investor Presentation
SANGAM (INDIA) LIMITED CIN : L17118RJ 1984PLC 003173 E - mail : secretarial@sangamgroup.com Website : www.sangamgroup.com I Ph : +91-1482-245400-06 Ref: SIL/SEC/2024-25 Date: 10th May, 2024 The Manager, The Manager, Department of Corporate Services Department of Corporate Services, The National Stoc
Slide 2: Earnings Presentation Q4 FY24
Earnings Presentation Q4 FY24
Slide 3: Safe Harbor
Safe Harbor The presentation has been prepared by Sangam (India) Limited (the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basi
Slide 4: Table of Contents
Table of Contents 1 About the Company 04 2 Key USPs 05-09 3 Management Commentary 10 Strategic Priorities 11-25 4 Financial Highlights 26-29 5 6 Annexures 30-43 3
Slide 5: Sangam: Weaving The Future
Sangam: Weaving The Future India’s largest, fastest growing and most trusted brand in Textile Sector o One of the largest manufacturer of PV dyed Yarn and Denim Performance Metrics Fabric. o Strong Expertise: 4 decades of Industry experience. Rs. 2,628 Cr 25% o Skilled Employee Base: Workforce of 12
Slide 6: Key USPs
Key USPs Presence Across Textiles Value Chain Leadership in India: PV Dyed Yarn Diversified and De-Risk Business Model Diverse Offerings 5
Slide 7: Presence Across Textile Value Chain
Presence Across Textile Value Chain Yarn PV Fabric Denim Fabric Garment FY 24 Revenue FY 24 Revenue FY 24 Revenue FY 24 Revenue Contribution: 47% Contribution: 22% Contribution: 28% Contribution: 3% • Prominent • Manufacturer of finest • Latest finishing • Seamless garment- manufacturer and fabrics
Slide 8: Diversified And De-Risk Business Model
Diversified And De-Risk Business Model Product Wise Sales Contribution Geographical Presence 3% Rest of 22% World 29% 33% FY 24 28% India 67% 18% PV Yarn Cotton Yarn Denim Fabric Woven Fabic with processing Garment India Rest of World 4% 21% Rest of 26% World 36% Q4 FY 24 30% India 21% 64% PV Yarn C
Slide 9: Leadership In India: PV Dyed Yarn
Leadership In India: PV Dyed Yarn • Grasim Industries Limited has 80-85% market share globally. • Sangam (India) Limited is the largest buyer of Viscose from Grasim. • Using this Viscose and taking benefit of in-house dying polyester it manufactures PV dyed yarn. 8
Slide 10: Diverse Offerings
Diverse Offerings As an integrated Integration facilitates player company can seamless coordination manage, multi counts between different and multi blends like production stages, polyester, wool, hemi, resulting in enhanced linen, cotton, man efficiency and made blends, natural reduced lead times.
Slide 11: Management Commentary
Management Commentary Our industry is in a recovery phase, which was driven by subdued demand and challenges in the yarn sector. Positive signs like favorable domestic cotton prices and expected demand growth indicate a promising future. As we transition from yarn to fabric and garments, our focus i
Slide 12: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 11
Slide 13: Value Addition Driving Margin Expansion
Value Addition Driving Margin Expansion Value Added Products and Gross Margin % 1% 1% 1% 3% 40% 43% 45% 45% 50% 53% 45% 45% 45% 44% 43% 42% 42% Last 7 Years (FY 18-FY 24) 40% Our Achievements Fabric and Garment contribution increasing 59% 56% 54% 55% 52% 50% 47% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 F
Slide 14: On The Path To Recovery
On The Path To Recovery Product wise price realisation Spreads between Cotton Yarn Prices and Cotton Prices Yarn (INR/kg) PV Fabric (INR/Meter) 217 117 122 208 111 95 99 87 90-92 78 79 78 Q3FY24 Q4FY24 Q3FY24 Q4FY24 Rs./kg Denim Fabric (INR/Meter) Garment (INR/pc) 176 213 172 209 FY18 FY19 FY20 FY21
Slide 15: Improving The Mix Within Yarn
Improving The Mix Within Yarn • Leader in PV dyed Export yarn to 34+ Yarn Produced: In 1995 initiated backward integration Key Highlights yarn in India. countries. Established • Cotton into spinning • Price Maker. Distribution Network. • PV Dyed Yarn 2,97,744 Spindles 1,03,140 MTPA Yarn production c
Slide 16: Garment – Revenue increased 5x in 7 years
Garment – Revenue increased 5x in 7 years • India’s largest • Innerwear and • 2000+ touchpoints. Key Highlights manufacturers of Activewear for both Garment Seamless Garments. men and women. (as a % of Revenue) • Cutting edge • Domestic: 96% Product range: 3 3 3 Production encompasses variety of mac
Slide 17: Denim Fabric – Revenue increased 2.5x in 7 years
Denim Fabric – Revenue increased 2.5x in 7 years • Producers of wide range of denim fabric ranging from 4Ozs to 15Ozs. Denim Fabric • Sustainable and innovative product range with key focus on R&D. • Working with value added yarns taking advantage of in-house yarn (as a % of Revenue) Key Highlights
Slide 18: Synthetic Fabric – Significant Market Share
Synthetic Fabric – Significant Market Share • Significant market share in processing PV, PV Lycra, PVW, Strong Distribution Polyester woolen & 100% wool. Network: 10,000+ Key Highlights • Working with value added yarns taking advantage of in- Dealers house yarn capabilities. Synthetic Fabric with Pr
Slide 19: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 18
Slide 20: Capacity Expansion to Drive Future Growth
Capacity Expansion to Drive Future Growth Capital Outlay Machines Capacity Timeline (As on FY 24) Planned Current Post Expansion Current Post Expansion Current Status Expected Yarn 344 Cr 1,03,140 MTPA 1,12,440 MTPA Ongoing Q1 FY 26 Spindles 2,97,744 3,06,864 Rotors 2,664 5,064 Knitting 26 32 Machin
Slide 21: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 20
Slide 22: Cost Competitiveness
Cost Competitiveness Fully integrated model- From Yarn to Fabric operations, Sangam can offer unlimited product combination in unlimited shades in cost effective manner. Upgradation of facilities and expansion to provide benefits of economies of scale. Existing diverse offerings to meet new demands
Slide 23: Strategic Priorities
Strategic Priorities Value Added Product Portfolio Capacity Expansion Cost Competitiveness Significant Focus On Sustainability 22
Slide 24: Significant Focus on Sustainability
Significant Focus on Sustainability • Currently 30,000MT per annum of recycled fiber comes through recycling of Recycle 38,400MT plastic waste. • Annually consuming 12,500MT cotton and other waste to minimize our environmental footprint. • Established Institutes and University. Empowering community
Slide 25: Vision 2026: Moving up the Value Chain – Fabric & Garments
Vision 2026: Moving up the Value Chain – Fabric & Garments Garment Garment 3% 6% Yarn Topline Segment wise Segment wise 33% Yarn Estimated for FY 26 Sales 47% Sales 4,000 Cr. Contribution Contribution FY24 FY26 Fabric 50% Fabric 61% EBITDA Margin Spinning Fabric Garment Approx 12.50% • High ROE • Fo
Slide 26: Strong Presence in a Growing Sector
Strong Presence in a Growing Sector Forecast Global Textile Market Size INR190bn INR44bn 5.67% CAGR 755.58 PLI scheme Outlay through PM MITRA 717.66 scheme 681.83 to Textile Industry 646.73 611.11 573.45 7,50,000 2.3% Employment Contribution of textiles opportunities in Textile industry to India’s G
Slide 27: Financial Highlights
Financial Highlights 26
Slide 28: Key Highlights
Key Highlights Revenue Rs. 701 Cr. EBITDA Rs. 67 Cr. PAT Rs. 14 Cr. Quarter Performance QoQ Growth 13 % QoQ Growth 38 % QoQ Growth 259 % Gross Profit Margin 42 % EBITDA Margin 10 % PAT Margin 2% Ratio & Margins QoQ Growth 237 bps QoQ Growth 171 bps QoQ Growth 133 bps • Business trend improving with
Slide 29: Key Performance Highlights: Q4 PAT up by 3.6x
Key Performance Highlights: Q4 PAT up by 3.6x In last 5 years (FY20-24), average Revenue of Rs. 2,185 Cr with an EBITDA margins of 10%. Yarn and Cotton prices have impacted the current financial year drastically, but recovery phase has started, and impact would be visible in coming quarters. Capex p
Slide 30: Q4 & FY24 Performance
Q4 & FY 24 Performance Particulars (Rs in Cr) Q4 FY 24 Q3 FY 24 QoQ Q4 FY 23 YoY FY 24 FY 23 YoY Revenue from Operations 701 621 13% 685 2% 2,628 2,712 -3% Gross Profit 294 246 20% 283 4% 1,072 1,179 -9% EBITDA 67 48 38% 71 -6% 215 302 -29% EBITDA Margin % 10% 8% 171 bps 10% -84 bps 8% 11% -292 bps
Slide 31: Annexure
Annexure 30
Slide 32: Strong Presence in Rajasthan
Strong Presence in Rajasthan Location Facilities Atun, Bhilwara Weaving, Processing & Garment Plant Biliya Kalan, Bhilwara Biliya Kalan, Bhilwara Denim Weaving & Processing Plant Biliya Kalan, Bhilwara Spinning Plant Unit-I Sareri, Bhilwara Spinning Plant Unit-II Soniyana, Chittorgarh Spinning Plant
Slide 33: Leadership
Leadership Mr. Ram Pal Soni Dr. S.N. Modani Mr. Vinod Kumar Sodani Mr. Anurag Soni Mr. Pranal Modani FOUNDER & VICE CHAIRMAN ED & CEO (FABRIC & MANAGING DIRECTOR CEO (YARN & DENIM CHAIRMAN GARMENT BUSINESS) BUSINESS) • 40 years of rich • Holds a Ph.D. in strategic • Managing PV Suiting and • Leads S
Slide 34: Leadership
Leadership Mr. S. R. Dakhera Mr. Sudhir Maheshwari Dr. T.K. Mukhopadhyay Mr. A. Karati Mrs Aparna Sahay CFO INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR • He is graduated with B.Sc • With a 34-year long • Served 30 years, Chief • Worked in diverse roles at • An
Slide 35: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights Net Debt to EBITDA (x) Net Debt to Equity (x) Total Asset to Equity (x) 2.77 2.55 2.55 2.45 4.74 4.81 1.05 1.05 0.82 0.90 2.64 1.90 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 34
Slide 36: Historical Income Statement
Historical Income Statement Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Revenue from Operations 1,873.53 1,790.11 1,358.97 2,437.76 2,712.30 2,628.06 Total Expenditure 1,714.3 1,628.58 1,236.83 2,130.38 2,410.73 2,410.73 EBITDA 159.23 161.53 122.14 307.38 301.57 215.48 EBITDA Margin %
Slide 37: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 (a) Equity Share Capital 39.42 39.42 43.42 43.42 45.05 50.25 Non-Current Assets (b) Share Warrant - - - 25.65 23.40 - Property, Plant and Equipment 647.52 615.
Slide 38: Comfortable Debt Repayments: Funded from Internal Accruals
Comfortable Debt Repayments: Funded from Internal Accruals Debt Repayment Schedule (in INR Cr.) Interest Coverage ratio 120 122 4.96 110 4.12 93 57 1.66 1.18 1.17 0.76 0.84 FY 25 FY 26 FY 27 FY 28 FY 29 FY18 FY19 FY20 FY21 FY22 FY23 FY24 • Debt repayment through internal accruals. • Capex plans to e
Slide 39: Secured PLI
Secured PLI PLI Eligible Company One of the company amongst textile sector to be eligible for PLI. The company is in the process to Approval Obtained complete the formalities. Sangam Ventures Limited (Subsidiary of Sangam (India) Limited) has been selected in Duration of Scheme 24 Dec 2021 to 31 Mar
Slide 40: Recognised Four Star Export House
Recognised Four Star Export House Sangam (India) Limited has been recognized as a four-star export house. Exports (in Rs. Crore) 921 867 757 470 423 FY 20 FY 21 FY 22 FY 23 FY 24 39
Slide 41: Production Quantity & Capacity Utilization %
Production Quantity & Capacity Utilization % Yarn PV Fabric Denim Fabric Garment (MT) (Lakh Meter) (Lakh Meter) ( Lakh pcs) 4QFY24 86.75% 4QFY24 86.80% 99.00% 59.60% 96 4QFY24 119 4QFY24 14 22,719 3QFY24 79.70% 87.40% 91.00% 40.10% 3QFY24 95 3QFY24 3QFY24 20,867 109 10 2QFY24 87.70% 72.60% 79.10% 38
Slide 42: Product wise price realization
Q3FY22 166 Q3FY22 Q4FY22 Q4FY22 177 247 264 Q1FY23 Q1FY23 198 Q2FY23 Q2FY23 289 273 201 Q3FY23 Q3FY23 191 Q4FY23 Q4FY23 189 Q1FY24 245 230 229 Yarn (INR/kg) Q1FY24 184 Q2FY24 Q2FY24 177 Denim Fabric (INR/Meter) Q3FY24 Q3FY24 172 Q4FY24 220 208 217 Q4FY24 176 Product wise price realization Q3FY22 110
Slide 43: Our Customers
~ Our Customers _@
Slide 44: Thank You
Thank You Sangam (India) Ltd Name: Mr Arjun Agal Tel: +91 9252145210 Email: arjunagal@sangamgroup.com Investor Relations Go India Advisors Name: Ms. Vandini Tated Tel: +91-9024433893 Email: vandini@goindiaadvisors.com Name: Ms. Sheetal Kandhuja Tel: +91-9930577801 Email: sheetal@goindiaadvisors.com