Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q3 FY2019 Earnings Presentation
36 slides from Sutlej Textiles & Industries's earnings presentation, Feb 7, 2019
Slide 1: Cover letter to stock exchanges: Investors Presentation
SUTLEJ TEXTILES AND INDUSTRIES LIMITED suta 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) 4219 8830 E-mail : info@sutlejtextiles.com
Slide 2: Investor Presentation | February 2019
Sutlej Textiles and Industries Ltd Charged to Grow Higher Investor Presentation | February 2019 1
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: Q3 & 9M FY19 Results Highlights
Q3 & 9M FY19 Results Highlights 3
Slide 5: Key Quarter Highlights
Key Quarter Highlights Key Challenges during Q3 FY19 compared to Q3 FY18 • Significant volatility in input prices, FX and Crude pricies • Increase in raw material prices, particularly PSF, created pressure on margins – Cotton and Polyester prices increased by 10% (QoQ) & 14 % (QoQ) respectively • Re
Slide 6: Results Highlights – Q3 & 9M FY19
Results Highlights – Q3 & 9M FY19 Total Income (Rs Cr) EBITDA (Rs Cr) ADJUSTED PAT (Rs Cr) 1,877 1,972 228 69 190 51 604 657 67 60 16 17 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Performance updates:- • Export increased by about 23% on QOQ and YO
Slide 7: Key Performance Highlights – Q3 & 9MFY19
Key Performance Highlights – Q3 & 9MFY19 9MFY19 on 9MFY18 Revenue grew by 5%, the Yarn segment continues to give 95%+ of Revenue Share Yarn Sales (in MT) Up by 4% in 9MFY19 Average Yarn Realization (Rs/kg) Up by 2% in 9MFY19 Export Revenue Up by 23% in 9MFY19 79,321 82,637 228 674 548 26,899 222 26,
Slide 8: Profitability Highlights
Profitability Highlights Rs. in Cr Q3FY19 Q3 FY18 Q2FY19 9MFY19 9MFY18 Total Income 657 604 694 1,972 1,877 Raw Material Cost 394 337 400 1,148 1,043 Employee Cost 82 78 80 241 227 Other Expenses 121 123 140 393 379 EBITDA 60 67 74 190 228 EBITDA Margin (%) 9.14% 11.08% 10.70% 9.61% 12.15% Depreciat
Slide 9: Executive Chairman’s comments
Executive Chairman’s comments Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “Q3 FY19 has witnessed unprecedented fluctuations in rates of crude oil, Polyester Staple fibre, a derivative of crude oil, one of our major raw-materials, excha
Slide 10: Sutlej: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years 9
Slide 11: Year gone by…
Year gone by… Past few quarters saw unprecedented shift in structural changes in Indian Economy with DeMo, GST, Liquidity Crises and Oil Prices Trade war between two largest economies in the world impacted global sentiments and growth projections It was challenging environment with VUCA (Volat
Slide 12: Headwinds in last 2 years
Headwinds in last 2 years GST Demonetisation Implementation Foreign Crude price Exchange movement Fluctuations Increase in Power & Fuel Cost VUCA Trade War Witnessing Gradual Improvement in Business Environment
Slide 13: Sutlej Textiles - Overview
Sutlej Textiles - Overview Largest Patronage of Renowned K.K.Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance One of the leading manufacturer of Melange Yarn Niche Presence Exports to + 65 countries Zero grey yarn manufacturing, pres
Slide 14: Key Milestones
Key Milestones Commenced commercial Acquisition of Birla Textile Mills Acquired Design, Sales, production of 31,104 Spindles at and Distribution (DS&D) Chenab Textile Mills, J&K to 35,280 spindles – commenced business along with manufacture Cotton Mélange commercial production for brand of American
Slide 15: Business Verticals
Business Verticals Sutlej Textiles and Industries Ltd Value Home Added Textiles Yarns Melange Dyed Yarns Curtains Upholstery Made Ups Yarns 14
Slide 16: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Leading spun dyed & Melange Utilization in Industry Yarn Manufacturer in India Better RM & Power through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Home Te
Slide 17: 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 18: Focused on Value Added Speciality Yarns
Focused on Value Added Speciality Yarns Always opted for expansion into high value speciality yarns 17
Slide 19: Yarn Capacities
Yarn Capacities Nearly 32% of the spindleage and 67% of the fabric weaving machines commissioned in the last decade, assuring high technological Bhawanimandi, Rajasthan relevance. • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kathua, J&K • 1
Slide 20: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,20,839 Dyed Yarn Spindles ~ 35% dedicated to Melange Yarn ~ 65% dedicated to various blends 4,20,840 Well Diversified Product Portfolio Marquee clients like Pag
Slide 21: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 20
Slide 22: Home Textile - Emerging Business
Home Textile - Emerging Business Focus on Curtains, Upholstery & Made ups Leading producer & exporter of Home Decor Gradual Increase in Weaving Capacities Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State of Art
Slide 23: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Expanding Product Portfolio Adding wider width printing machines Better Designs Digital Printing capabilities Sheer Material Steaming & Washing Made-ups Fancy Yarn Embroidery Establish Geographic Presence Improving Design
Slide 24: American Silk Mills (ASM)
American Silk Mills (ASM) Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Stabilizing Operations Working on improving margins Building Customers Confidence Re-gaining customer confidence lost due to liquidity position before acquisition
Slide 25: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 24
Slide 26: Backward Integration into Green Fibre
Backward Integration into Green Fibre Captive PSF – A Key Raw Material Utilisation for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity 120 MT / Day CAPEX Rs. 189 crore Location – land acquired Baddi, Himachal Pradesh Expected Commercial Production Q1FY20-21 Fulfil 75% of Captive R
Slide 27: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost Installed Roof Top Solar plant of 2.7 MW at new unit in Bhawanimandi, Rajasthan, Resulting ~40% less per unit cost compared to State Tariff Solar Plant at Bhawanimandi, Rajashthan
Slide 28: Sutlej 2.0 – Growth Strategy
Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation
Slide 29: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key • Integration with ASM • Opportunities into •Strong Balance Sheet Raw material cost Forward Integration • Product Portfolio •Generate better Return expansion to strengthen • Opportunities in new Ratio’s Home Textiles Business Speciality Ya
Slide 30: Annexure - Financials
Annexure - Financials 29
Slide 31: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth Total Income Total Debt Networth Total Debt Total Debt to Equity 2,510 1,200 4.73 5.00 1,047 1,000 907 934 929 1,972 4.00 1,705 800 738 652 3.00 1,047 600 809 738 929 2.00 400 349 1.87 652 156 1.15 0.99 1.00 200 0 0.00 FY08 FY13 FY18 9MFY19 FY08 FY13 FY18 9MFY19
Slide 32: Enhancing value for Stakeholders
Enhancing value for Stakeholders Dividend Per Share (Rs) Dividend Payout (%) FY14 8 FY14 12 FY15 10 FY15 17 FY16 13 FY16 18 FY17 13 FY17 16 FY18 13* FY18 23 * Dividend declared Rs.1.30 on FV of Rs.1 per share post split. Depiction is for visual and comparative purpose only
Slide 33: Performance Highlights
Performance Highlights Revenue EBITDA PAT FY14 1,923 FY14 306 FY14 131 FY15 1,918 FY15 272 FY15 115 FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510* FY18 281* FY18 113* *The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence FY2017-18 is first year of consolidatio
Slide 34: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY14 1.4 FY14 4 FY15 1.1 FY15 3.8 7.5% 7.3% FY16 1.2 FY16 4.9 6.8% FY17 5.2 6.2% 6.2% FY17 1.3 FY18 4.8 FY18 1.15 FY14 FY15 FY16 FY17 FY18
Slide 35: Balance sheet
Balance sheet Gross Block (Rs Cr) Net worth (Rs Cr) Adjusted EPS (Rs.1 per share) FY14 1,226 FY14 462 FY14 8.0 FY15 1,397 FY15 558 FY15 7.1 FY16 1,650 FY16 683 FY16 8.8 FY17 1,985 FY17 816 FY17 9.6 FY18 2,067 FY18 907 FY18 6.9
Slide 36: Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect Mr. Bipeen Valame Mr. Vikash Verma / Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia
Sutlej Textiles and Industries — Q3 FY2019 Earnings Presentation on 6ix