Sportking India Ltd. · NSE:SPORTKING
Sportking India — Q2 FY25 Earnings Presentation
35 slides from Sportking India's earnings presentation, Oct 29, 2024
Slide 1: Cover letter to stock exchanges
SIL/2024-25/SE Date: 29.10.2024 To To BSE Limited National Stock Exchange of India Ltd, Phiroze Jeeheebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai-400001 Bandra (East), Mumbai– 400051 Script Code: 539221 Symbol: SPORTKING Subject: Investor Presentation for the Quarter and
Slide 2: Sportking India Ltd. Investor Presentation – October 2024
SPORTKING INDIA LTD. Investor Presentation – October 2024
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sportking India Ltd (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q2 & H1 FY25 - Financial Performance
Q2 & H1 FY25 - Financial Performance
Slide 5: Quarterly Highlights
DELIVERED CONSISTENT FINANCIAL PERFORMANCE (Q2 FY25) Revenue from Export Businesses Revenue from Operations* 3.7% (Rs. in crores) Rs. 652 crores -9% Quarterly Highlights 330 290 300 GROSS PROFIT EBITDA Q2 FY25 Rs. 139 crores Rs. 58 crores Q2 FY24 Q1 FY25 Q2 FY25 Margin at 21.4% Margin at 8.9% Q2 FY2
Slide 6: Full Year Highlights
DELIVERED CONSISTENT FINANCIAL PERFORMANCE (H1 FY25) Revenue from Export Businesses Revenue from Operations* 10.1% (Rs. in crores) Rs. 1,286 crores +1% 582 590 Full Year Highlights GROSS PROFIT EBITDA H1 FY25 Rs. 293 crores Rs. 132 crores H1 FY24 H1 FY25 Margin at 22.8% Margin at 10.2% H1 FY25 Reven
Slide 7: Q2 FY25 Operational Performance
Q2 FY25 OPERATIONAL PERFORMANCE Yarn Production and Sales Volumes Capacity Utilisation 96% 96% 96% 95% 21.7 20.7 21.0 20.7 20.7 21.0 20.3 20.0 Best-in-class capacity utilisation levels 94% 19.4 18.8 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Revenue Contribution by Geography 48% 52% 53% 54% 59% 52% 48%
Slide 8: Q2 FY25 Financial Performance
Q2 FY25 FINANCIAL PERFORMANCE Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) +4% +46% +61% 628 634 652 74 32 58 25 40 16 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 PAT Gross (Rs. Profit in Crs) % EBITDA % PAT % +263 bps +255 bps +137 bps 24.3%
Slide 9: H1 FY25 Performance (Y-o-Y)
H1 FY25 PERFORMANCE (Y-o-Y) Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) +10% +47% +69% 1,286 132 57 1,167 89 34 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Gross Profit % EBITDA % PAT % +258 bps +257 bps +154 bps 22.8% 10.2% 4.4% 20.2% 7.7% 2.9% H1 FY24 H1 FY25 H1 F
Slide 10: Strategic Updates
STRATEGIC UPDATES Setting Foundation For Forward Integration Further Commitment to Sustainable Operations ❖ Proposed Investment of 26% of Equity Share Capital of M/s Evincea Renewable Two Pvt. Ltd. a special purpose vehicle (SPV) for INR. 12.09 Crs ❖ The SPV will commission the Solar Power Plant YAR
Slide 11: On Path to Margin Recovery
ON PATH TO MARGIN RECOVERY Triggers for Margin Recovery 25% 24.0% 24.3% ❖ Demand in key markets 22.7% 22.4% 22.0% 21.4% showing signs of improvement 20.9% 19.9% 20% ❖ Pickup in Domestic Market from second half of Q3 FY24 18.8% 15% ❖ Demand rising from segments such as Weaving and Denim. 11.6% 10.4%
Slide 12: Q2 & H1 FY25 Profit & Loss Statement
Q2 & H1 FY25 PROFIT & LOSS STATEMENT Profit & Loss statement (Rs. in Crs) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Revenue from Operation 651.6 628.3 3.7% 634.0 2.8% 1285.7 1167.3 10.1% Raw Material Cost 487.1 441.2 450.5 937.6 853.2 Purchase of Finished goods 0.2 0.3 0.2 0.4 0.7 (I
Slide 13: Balance Sheet Statement
BALANCE SHEET STATEMENT Equity & Liabilities (₹ in Cr) Sep-24 Mar-24 Assets (₹ in Cr) Sep-24 Mar-24 Equity Share Capital 12.9 12.9 Property, plant and equipment 747.4 785.1 Other Equity 939.7 889.6 Capital Work-in-Progress 12.3 0.0 Total Equity 952.6 902.4 Right of Use Asset 0.5 0.5 Financial liabil
Slide 14: Cash Flow Statement
CASH FLOW STATEMENT Cash Flow Statement (Rs. Crs.) Sep-24 Sep-23 Cash Flow from Operating Activities Profit before Tax 76.5 45.7 Adjustment for Non-Operating Items 68.6 62.9 Operating Profit before Working Capital Changes 145.1 108.6 Changes in Working Capital -327.8 88.1 Cash Generated from Operati
Slide 15: Business Overview
Sportking Business Overview
Slide 16: Overview
OVERVIEW Established in 1989 Presence in 30+ countries Owns 3 State of the art Committed to create High manufacturing facilities Quality end products Compliance with Diversified Product International Quality Range recognition standards Manufacturing facilities with Recognised Four Star Modern Techno
Slide 17: Journey So Far
JOURNEY SO FAR Successful expansion at Bathinda Unit adding 68K+ spindles with state-of-the-art plant for Setting up of a Dye manufacturing of cotton compact House for dyeing/ yarn achieving a total overall processing of textile spinning capacity 274K+ spindles. Installed 6K+ yarn fibers Spindles fo
Slide 18: Business Strengths
BUSINESS STRENGTHS Extensive Product Range Competitive Prices • Sportking enjoys price leadership status • Diverse fiber options, along with various in all of the market segments due to its yarn types, with custom solutions to ability to supply high quality products meet specific client needs regula
Slide 19: Capacity Built Up Over the Years
CAPACITY BUILTUP OVER THE YEARS Continuous capacity addition to support robust growth in our business 3,78,576 63,072 40,800 68,256 -6,520 34,464 Closure of a 24,480 unit(Small capacity) 52,800 28,800 23,232 12,096 17,856 6,520 12,720 1994 1996 1998 2006 2007 2011 2012 2013 2014 2014 2019 2022 2023
Slide 20: Presence Across the Globe
PRESENCE ACROSS THE GLOBE Geography Wise Revenue Break-up Q2 FY25 54% Rs. 300 46% crores Domestic International Global footprint We are representing spanning 39 countries. India on a world As a recognition of our stage with average export contributions, exports worth more MCI has upgraded us to a ‘F
Slide 21: Manufacturing Facilities & Capacities
MANUFACTURING FACILITIES & CAPACITIES Capacity utilisation of all units more than 95% Units Manufacturing Installed Capacities Acrylic/Blended Acrylic Polyester Yarn/ Blended Unit I - Spinning Unit 65,904 Spindles Polyester Cotton yarn Support to Unit No. I & III for their synthetic fibre/ yarn Unit
Slide 22: Strategic Advantages
STRATEGIC ADVANTAGES Rail & Roads: Helps in better connectivity with other parts of India. Inland Container Depot(ICD): ICD at Bathinda/Ludhiana for import/export clearances & regular road transport/train service availability between company’s unit/ICD and different seaports. Concentrated Production
Slide 23: Product Range
PRODUCT RANGE 100% Cotton Yarns ▪ 100% cotton combed compact yarns in normal and sublime quality for knitting and weaving ▪ 100% cotton combed compact slub ▪ 100% cotton combed Eli twist Polyester/Cotton Blended Yarns ▪ Polyester/cotton combed yarns ▪ Polyester/ cotton Melange yarns Fancy Yarns ▪ Ja
Slide 24: Sales & Marketing
SALES & MARKETING Focus on excellence Focus on delivering best & premium quality products to most quality conscious brands and customers. Customer Driven Innovation As a result of changing trends in both domestic & international markets accompanied with customer centric approach, our innovation init
Slide 25: Marquee Customers
MARQUEE CUSTOMERS The brand names mentioned are the property of their respective owners and are used here for identification purpose only 24
Slide 26: Board of Directors
BOARD OF DIRECTORS Munish Avasthi Naresh Jain Prashant Kochhar Sandeep Kapur Harpreet Kaur Kang Anjali Avasthi Chairman & Managing Executive/Whole Non-Executive Non-Executive Independent Non-Executive Non-Executive Non Director Time Director Independent Director Director Independent Director Indepen
Slide 27: Management Team
MANAGEMENT TEAM • Sandeep Sachdeva is a Qualified Chartered Accountant & Company Secretary with experience of more than 22 years in Sandeep Sachdeva accounting & finance, trading, banking industries covering, handling of Direct and Indirect taxation and various other Chief Financial Officer matters
Slide 28: Certificates & Compliances
CERTIFICATES & COMPLIANCES Recycled Claim Standard 2.0 Global Organic Textile Standard 6.0 Organic Content Standard 3.0 Oeko-Tex Standard 100 Fairtrade ISO 9001 2015 Global Recycle Standard 4.0 Cotton Made In Africa (CMIA) Higg Index The logos mentioned are the property of their respective owners an
Slide 29: Sector Outlook
Sector Outlook
Slide 30: Indian Textile Sector - Ready for a Transformation
INDIAN TEXTILE SECTOR- READY FOR A TRANSFORMATION India’s textiles sector is at an inflection point The sector can act fast and grab the huge opportunity opening up due to a change in global textile trade patterns. While the opportunity is huge, the government and the industry need to act in coordin
Slide 31: Government Support to Textile Sector
GOVERNMENT SUPPORT TO TEXTILE SECTOR Free Trade Agreements • Recent FTAs signed between India and UAE, Budgetary Support ECTA signed between India and Australia • In the interim budget 2024, government • India is currently in process of negotiating FTAs allocated ₹4,392.85 crore to the textile indus
Slide 32: Annexure
Annexure
Slide 33: Historical Financial Charts
HISTORICAL FINANCIAL CHARTS Revenue from Operations (Rs. in Crs) EBITDA (Rs. in Crs) PBT (Rs. in Crs) +9.7% +22.1% +15.4% 2,377 596 547 2,154 2,205 1,355 1,306 1,160 279 211 205 219 129 136 140 96 29 18 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY20 FY21 FY22 FY23 FY24 PAT (Rs
Slide 34: Historical Profit & Loss Statement
HISTORICAL PROFIT & LOSS STATEMENT Profit & Loss statement (Rs. in Crs) Mar’24 Mar’23 Mar'22 Mar'21 Mar'20 Mar'19 Revenue from Operation 2377 2,205 2,154 1,306 1,355 1,161 Raw Material Cost 1703 1,558 1,181 785 901 756 Purchase of Finished goods 1 1 0 0 1 1 (Increase) / Decrease In Stocks 1 -15 -14
Slide 35: Thank You
Thank You Sportking India Limited CIN: L17122PB1989PLC053162 Mr. Devansh Dedhia +91 9930147479 Devansh.dedhia@linkintime.co.in Mr. Lovlesh Verma Devansh.dedhia@linkintime.co.in 01612845456 Mr. Irfan Raeen cs@sportking.co.in www.sportking.co.in +91 9773778669 www.sportking.co.in Irfan.Raeen@linkintim