Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q3 FY2017 Earnings Presentation
37 slides from Sutlej Textiles & Industries's earnings presentation, Feb 10, 2017
Slide 1: Sutlej Textiles and Industries Limited filing cover letter
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. textiles and industries limited Phone : (022) 4219 8800 / 6122 8989 Fax : (022) 4219 8830 E-mail : info@rtmyarn.com Website : www.sut
Slide 2: Result Presentation Q3 & 9M FY17
Result Presentation Q3 & 9M FY17
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej textiles & Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Agenda
Agenda Q3 & 9M FY17 – Financial Highlights & Updates Corporate Overview Segment Presence – Yarn & Home Textile Annual Financial Performance Business Outlook
Slide 5: Q3 & 9M FY17 – Financial Highlights & Updates
Q3 & 9M FY17 – Financial Highlights & Updates
Slide 6: Q3 & 9M FY17 – Financial Performance
Q3 & 9M FY17 – Financial Performance Total Income (Rs Cr) PAT (Rs Cr) EBITDA (Rs Cr) +8.31 +12.79% % +34.71 % 1675 -2.29% 1546 -8.31% 249 -1.46% 125 221 93 559 546 77 71 28 28 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 5
Slide 7: Profitability Highlights
Profitability Highlights Rs. in Cr Q3FY17 Q3FY16 9M FY17 9M FY16 Total Income 546 559 1675 1546 Raw Material Cost 301 320 912 891 Employee Cost 66 61 196 159 Other Expenses 108 101 318 275 EBITDA 71 77 249 221 EBITDA Margin (%) 12.94% 13.79% 14.88% 14.29% Depreciation 21 21 35 34 Finance Cost 12 12
Slide 8: Segmental Break up
Segmental Break up Yarn Segment Home Textile Segment Revenue (Rs Cr) EBITDA (Rs Cr) Revenue (Rs Cr) EBITDA (Rs Cr) +8.10% +11.44% +12.46% +42.67% 1574 235 78 14 10 1456 211 70 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 7
Slide 9: Comments on Quarterly Performance
Comments on Quarterly Performance Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said “The historic step of demonetization in India will have long term positive implications with far reaching consequences for the Indian economy. However, certain sectors like
Slide 10: Key Business Updates
Key Business Updates Brownfield project - Capacity Expansion of Value Added Home Textiles Division expansion on track Products at Bhawanimandi, Rajasthan The trial run of expansion project of 35280 spindles for Capacity expansion project of Home textile at Bhilad is also producing value added Co
Slide 11: Key Business Updates
Key Business Updates Modernization Update Credit Rating upgrades during the Year CARE upgrades STIL rating to CARE AA (Double A) for Long Invested round Rs.49 crore during 9M FY 2017, towards Term Bank Facilities (Term Loan) and for Long Term Bank technology up-gradation and debottlenecking, etc
Slide 12: Corporate Overview
Corporate Overview
Slide 13: Company Overview
Company Overview Leading Textile Player India’s largest Spun-dyed Yarn manufacturer Presence across value chain – from Yarn to Home Textile 380,714 spindles capacity of Yarn 8.4 Million Meters Per Annum capacity of Home Textiles Global Presence over 60 countries across Europe, North America, South-E
Slide 14: Journey at Glance
Journey at Glance Demerger of Bhawanimandi: 31,104 spindles added at Chenab Sutlej Industries Limited and Completed Expansion of 7,488 spindles Textile Mills - J&K for value Damanganga Processor for PV Dyed Yarn added cotton mélange and cotton Limited blended dyed yarn 12,672 Spindles added for manu
Slide 15: Corporate Governance at the Helm
Corporate Governance at the Helm 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. Mahmoo
Slide 16: State of the art manufacturing facilities
State of the art manufacturing facilities … Location: Kathua, J&K Location: Baddi, Himachal Pradesh Products: Cotton Mélange Yarns Products: Cotton Yarns Man-made Fibre Yarns Man-made Fibre Yarns Capacity: 109,010 Spindles (Cotton Mélange ) Capacity: 83,376 Spindles 97,320 Spindles (Man-made Fibre)
Slide 17: Wide distribution network and marquee clientele
Wide distribution network and marquee clientele Presence and strong brand image across globe in over 60 countries… Evolved as vendor to… …partner to leading textile solution Expanded global foot print … providers …De-risk over dependence on few geography 16
Slide 18: Diverse and wide product portfolio
Diverse and wide product portfolio Yarn Home Textile One stop shop for all kinds of spun dyed yarns Focus on value added yarns that fetched superior realisations Diversified offerings with presence across value chain 17
Slide 19: Segment Presence – Yarn & Home Textiles
Segment Presence – Yarn & Home Textiles
Slide 20: Yarn - Consistent capacity addition over the years
Yarn - Consistent capacity addition over the years Spindles capacity Sales (MT) 412,968 377,688 104,359 293,736 253,000 261,736 79,666 80,040 72,346 76,334 208,104 155,456 FY12 FY13 FY14 FY15 FY16 FY05 FY08 FY12 FY14 FY15 FY16 FY17 Invested in modernization - 54% of spindle age are less than a dec
Slide 21: Registering strong growth in Yarn segment…
Registering strong growth in Yarn segment… Revenue (Rs. Cr) Average Sales Realisation (Rs / Kg) 2,177 222 219 207 206 200 1,768 1,784 1,581 1,447.00 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 … through multiple capacity expansions as well as profitable acquisitions 20
Slide 22: Home Textiles – Entering Growth Orbit
Home Textiles – Entering Growth Orbit Capacity (Million Meters Per Annum) Entered the Home Textiles segment in 2006-07 9.6 Capacity to expand by 4.6 mm pa to 9.6 mm pa by FY17 Continued focus on driving category premiumisation Product range includes 5.0 o Furnishing Fabrics o Curtain Fabrics
Slide 23: Annual Financial Performance
Annual Financial Performance
Slide 24: Total Income at new peak …
Total Income at new peak … 2,302 1,923 1,918 Home Textiles 5% 1,728 1,573 95% Yarn FY12 FY13 FY14 FY15 FY16 Figures in Rs Crore 23
Slide 25: … Highest ever profitability
… Highest ever profitability EBITDA (Rs Cr) Net Profit (Rs Cr) 306 311 143 272 131 234 115 178 77 32 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 24
Slide 26: … and strong leverage position
… and strong leverage position Improving Total Debt / Equity Ratio Robust Interest Coverage Average Interest Rate of Term Loans (After TUF) 4.9 8.0% 4.0 2.6 3.8 7.5% 1.9 7.3% 7.2% 2.5 1.4 6.8% 1.8 1.1 1.1 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 25
Slide 27: Strong Balance Sheet…
Strong Balance Sheet… Growing Gross Block (Rs Cr) Increasing Networth (Rs Cr) Surging Earning Per Share (Rs) 676 1,667 1,397 558 88 80 1,226 462 1,136 1,147 71 346 276 47 19 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Continuous growth plan leading to consistent profit
Slide 28: …with healthier return ratios in the industry
…with healthier return ratios in the industry Strong Return on Equity (RoE) Consistent Return on Capital Employed (RoCE) 28% 28% 23% 23% 22% 21% 21% 21% 18% 12% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 RoE = Profit After Tax /Networth RoCE = EBITDA/Capital Employed (Networth + Debt) Consist
Slide 29: Highest ever Dividend in history of Company
Highest ever Dividend in history of Company Dividend Per Share (Rs) Dividend Payout (%) 18 17 13 10 12 8 8 5 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Board recommended highest ever Dividend of Rs 13 per equity share for FY16 28
Slide 30: Key financial highlights
Key financial highlights Rs. in Cr USD mn Particulars FY14 FY15 FY16 FY14 FY15 FY16 Total Revenues 1,923 1,918 2,302 337 315 339 EBITDA 306 272 311 54 45 46 PAT 131 115 143 23 19 21 Total Assets 1,273 1,341 1,709 223 220 251 Net Worth 462 558 676 81 92 99 Long Term Debt 267 339 427 47 56 63 Total De
Slide 31: Business Outlook
Business Outlook
Slide 32: Growth Strategies
Growth Strategies Niche Value Added Products Consistent production of high margin value added products to result in greater proportion of Cotton blended dyed and Mélange Yarn in the overall mix Growing Core Business Acquisition of BTM & enhancing spindles capacities towards manufacturing Cotton
Slide 33: Textile Sector - Value Chain
Textile Sector - Value Chain Garment/ Process Raw Material Ginning Spinning Weaving/Knitting Processing Apparel production Cotton, Polyester, Fibre Yarn Fabric Processed fabric Final garment/ Output etc Apparel Presence of Sutlej in the Value Chain 32
Slide 34: Domestic Home Textile Market – Large Opportunities
Domestic Home Textile Market – Large Opportunities Category wise market break-up (Rs Cr) Indian Home Textile Industry (USD billion) Categories 2011 2021 (P) CAGR (%) 40,780 Bed Linen 8,965 19,350 8.0 Towels 3,320 7,060 7.8 Curtains 1,850 4,790 10.0 Blankets 1,465 2,850 6.9 18,400 Upholstery 1,190 3,
Slide 35: Indian Textile Sector - Present
Indian Textile Sector - Present $108 Billion Indian Textile sector current size Largest employment generator, Employs 45 mn people directly 2nd Million spindles along with 842,000 Rotors capacity across ~3,400 mills 50 13% Share in country’s export earnings Contribution to India’s manufacturing prod
Slide 36: Indian Textile Sector Potential
Indian Textile Sector Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 82 141 9.886 58 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Competitive
Slide 37: Let's Connect
About Sutlej: Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Executive Chairman of STIL, a Chartered Accountant and Master of Science in In
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