Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q3 FY22 Earnings Presentation
36 slides from Banswara Syntex's earnings presentation, Feb 4, 2022
Slide 1: Banswara Syntex Ltd Investor Presentation
Banswara Syntex Ltd Investor Presentation February 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: Q3 & 9M FY22 Highlights
Q3 & 9M FY22 Highlights 3
Slide 4: Key Developments
Key Developments Proportion of the high margin value-added business (Fabric and Garments) has increased to 49% of the total sales in Q3FY22 as 1 compared to 47% in Q2FY22 Demand from Export market increased marginally during the current quarter led by faster recovery from COVID in European and 2 Mid
Slide 5: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q3 FY22 Q2 FY22 QoQ 9M FY22 9M FY21 YoY Revenue from Operations 303.2 307.0 -1.2% 822.4 532.5 54.4% Other Income 4.7 5.1 11.4 7.7 Total Income 307.9 312.0 -1.3% 833.8 540.2 54.3% Power and fuel cost Total Expenditure 274.5 277.4 746.2 487.5 increased
Slide 6: About US
About US Our Specialty is Value Added Textiles 6
Slide 7: Our Journey
Our Journey Shift towards Sustainable production -Started first unit of 18 MW Started through captive thermal power Recycled Fabrics Banswara Textile production of plant. Entered Joint Venture Mills Ltd. (BTM), an Super-stretch -Started production of with French Company associate firm women Fabrics
Slide 8: 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 9: 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 10: Strategically Located Facilities
Strategically Located Facilities Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainable supply Also ensures strong relationship with suppliers with maintaining need-based approach Easy Availability of skilled and Unskilled labour Better Infrastructure connectivi
Slide 11: 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 12: 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 13: Business Segments
Business Segments 13
Slide 14: 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 Stretch Yarns for weaving using of viscose staple fibre, polyester staple fibre, branded lycra and non-branded e
Slide 15: 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 16: 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 17: 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 18: Riding the Fast Fashion Wave
Riding the Fast Fashion Wave Requirements of Our Capabilities Our Focus Areas Fast Fashion It is fuelled by advances in technology, Design houses in France & Italy as well Maintain a high grade of quality even automation as India to accurately forecast trends in at shortened lead times the West and
Slide 19: Domestic Clientele
Domestic Clientele E-Commerce Clients 19
Slide 20: International Clientele
International Clientele Working with some of the world’s biggest names 20
Slide 21: 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 22: Strategic Focus & Outlook
Strategic Focus & Outlook 22
Slide 23: 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 24: 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 25: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara 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 26: 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 power • Demand improvement across textile usage value chain across domestic and • Improv
Slide 27: 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 28: 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 29: Financials
Financials
Slide 30: Revenue Mix – Segmental and Geography wise
Revenue Mix – Segmental and Geography wise Division-Wise Gross Revenue (Rs. in Crores) Geography-wise Gross Revenue (Rs. in Crores) 1,350 1,295 34 1,290 1,254 37 27 32 282 252 255 240 46% 45% 44% 43% 41% 43% 822 787 497 30 496 25 498 584 102 130 306 260 55% 56% 57% 59% 57% 54% 484 537 512 422 402 35
Slide 31: 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 -84 +2 244 246 1.4 0.8 0.7 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Debt-Equity Ratio= Total Debt / Total Shareholders funds The company has reduced its
Slide 32: Standalone Profit and Loss Highlights
Standalone Profit and Loss Highlights Rs. in Crs. 9M FY22 FY 21 FY20 FY 19 Revenue from Operations 822.40 786.62 1,289.50 1,350.93 Other Income 11.37 16.22 12.86 13.58 Total Income 833.77 802.84 1,302.36 1,364.51 Total Expenditure 746.15 710.77 1,145.30 1,230.74 Raw materials 359.13 375.09 601.30 66
Slide 33: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crores) Sep-21 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. in Crores) Sep-21 Mar-21 Mar-20 Mar-19 Non-current assets 350.66 360.27 393.64 433.91 Equity 370.18 357.37 341.86 294.44 Property, Plant & Equipment 315.71 334.74 370.68 413.56 Equity share capital 1
Slide 34: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crores) Sep-21 Mar-21 Mar-20 Mar-19 Operating profit before working capital changes 54.42 89.83 150.67 133.72 Changes in working capital -23.84 45.27 65.45 6.60 Cash generated from operations 30.58 135.10 216.12 140.32 Income Tax Refund/(Direct Taxes Paid) -8.06 -2.66 -1
Slide 35: Dividend Payout History
Dividend Payout History Dividend 9% 20% 7% 5% 18% Pay-out 35.0 31.1 30.0 25.0 20.0 14.2 15.0 11.2 10.0 8.5 4.9 5.0 1.5 1.5 1.0 1.0 1.0 0.0 FY17 FY18 FY19 FY20 FY21 EPS DPS The company has Consistently declared dividends Year-on-Year 35
Slide 36: 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 / Mr. Vijay Goel kamleshnyati@banswarasyntex.com rahul.agarwal@sgapl.net / vijay.goel@sgapl.net +91 9