Rswm Ltd · NSE:RSWM
Rswm — Investor Presentation (July 2018)
56 slides from Rswm's investor presentation, July 2018
Slide 1: An LNJ Bhilwara Group Company
An LNJ Bhilwara Group Company
Slide 2: FY18 Performance
‘)eauunae cis FY18 Performance
Slide 3: Key Challenges during FY18
Key Challenges during FY18 Lingering impact of demonetization GST implementation and its transitional difficulties. Uncertainty about GST rates Export remained under pressure due to stronger INR Increase in power tariff by DISCOM Increase in raw material prices 3
Slide 4: FY18 Financial Highlights
FY18 Financial Highlights Rs. in Cr. Total Income EBIDTA 3500 3028 2979 3000 358 400 2500 263 300 2000 200 83 80 1500 100 837 770 Series1 1000 0 500 Q4 Q4 FY17 FY18 0 FY17 FY18 Q4 FY17 Q4 FY18 FY17 FY18 EBDT PAT 248 120 101.0 250 100 200 146 80 150 60 100 55 52 28.9 40 50 13.7 14.5 Series1 20 0 Seri
Slide 5: Profitability Highlights
Profitability Highlights Rs. in Cr. Q4 FY18 Q4 FY17 Q3 FY18 Q2 FY18 Q1 FY18 FY18 FY17 Income 770 837 793 694 721 2979 3028 Raw Material Cost 426 450 414 428 449 1716 1721 Employee Cost 85 82 91 95 93 365 349 Other Expenses 163 175 171 169 170 673 656 Inc./Dec. in Inventory 16 47 46 -55 -45 -38 -56 E
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights Rs. in Cr. 31.03.18 31.03.17 Rs. in Cr. 31.03.18 31.03.17 Assets Liabilities Non-current Assets 1564 1319 Shareholders' Fund 901 633 Fixed Assets 1138 1190 Share Capital 24 24 Investments 383 110 Reserve & Surplus 877 609 Other Non-current Assets 43 19 Non-current Liabilitie
Slide 7: Key ratios
Key ratios FY17-18 FY16-17 Balance sheet ratios asset cover ratio (fixed assets) excl CPTL 1.99 2.40 asset cover ratio (fa+inv) excl CPTL 2.67 2.62 LT debt eq ratio excl CPTL 0.63 0.78 LT debt eq ratio incl CPTL 0.78 1.17 DE ratio excl CPTL 1.41 1.73 DE ratio incl CPTL 1.56 2.12 debt service coverag
Slide 8: Reasons for under achievement
Reasons for under achievement • Lingering impact of demonetization, Pre-GST uncertainties and Post-GST disruptions. • Decentralized sector and traders’ inability to cope-up with GST affected the domestic distribution chain. • Sales declined in July and early August due to strikes in all the major te
Slide 9: Reasons for under achievement
Reasons for under achievement • Power cost increased by 13% as compared to FY17 due to increase in coal prices and increase in unit rate by state electricity board. • Export incentives reduced on Fabric from 5.5% to 1.7% after GST. While import become cheaper as 12.5% CVD plus 4% SAD replaced by 5%
Slide 10: Way ahead
Way ahead • Steps taken by Govt. to reduce the complexity of GST • Reduction in GST rates specially on Job work from 18% to 5% and synthetic yarns from 18% to 12%. • Anomaly on fabric import duty represented before government and govt. imposed 10% custom duty wef 31st oct.2017 on synthetic fabrics b
Slide 11: Steps taken/planned
Steps taken/planned • Regular review of product-mix and replacement of less contributing products. • Work started on conversion of 53000 spindles of Rishabhdev unit from grey to value added dyed yarns at capital cost of around Rs.20 Cr. • To arrest losses due to volatility of polyester fibre, expand
Slide 12: Steps taken/planned
Steps taken/planned • To minimize the power cost, planning to install 15 MW rooftop and 14 MW ground mounted solar plant. • Looking to the increase in demand of branded fabrics, shift in our focus to increase the supply of denim fabrics to Indian and International brands. • Introduced a premium poly
Slide 13: Current Market Scenario and outlook (Yarn)
Current Market Scenario and outlook (Yarn) Post GST , in synthetic textile arena there is still some issues going on basically due to payment flow not getting completely eased out.. Exporters working capital is also stuck up as POST GST , Indian Government has not released their benefits complet
Slide 14: Current Market Scenario and outlook (Denim)
Current Market Scenario and outlook (Denim) There is a tremendous oversupply situation in the Indian denim industry. This is sharply affecting demand patterns. Denim fabric manufacturing is growing in the unorganised segment. Number of denim units have moved to 46, from 30 in 2012.Capacity has inc
Slide 15: Opportunities (Denim)
Opportunities (Denim) The large format retailers in India – Reliance, Future Lifestyles, Madura Lifestyle Fashions, Myntra are yet churning our large volumes for their quickly increasing shelf space. Though the price points remain challenging, this arena is now major focus for growth. Our focuse
Slide 16: LNJ Bhilwara Group – At a glance
LNJ Bhilwara Group – At a glance 16
Slide 17: LNJ Bhilwara Group - Diversified Presence
LNJ Bhilwara Group - Diversified Presence 6 Group companies listed on the Stock Exchanges. Over 1,000,000 stake holders in the Group. Production units & Corporate office spread across the country at 38 locations All key companies ISO certified Over 28,000 strong workforce. 17
Slide 18: RSWM Ltd. – At a glance
‘)eauunae cis RSWM Ltd. - At a glance 18
Slide 19: RSWM – Overview
RSWM – Overview Flagship company of LNJ Bhilwara Group Established in 1961 One of the largest textile manufacturers of Synthetic, Blended, Mélange, Cotton, Specialty and Value added yarns. Also manufacturing Fabrics, Denim and Green Polyester Fiber. Exports to over 70 countries ‘Golden Tra
Slide 20: RSWM – Overview
RSWM – Overview Installed Capacity 18000 MTs p.a. Green Polyester Fiber manufacturing capacity 494072 Spindles and 4080 Rotors Spinning 154 Looms for PV Fabric, 21.6 million meter p.a. Fabric Processing 20 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Facility (Spinning+We
Slide 21: RSWM – Journey
RSWM – Journey 1961 - Established with a spinning unit at Bhilwara. 1973 - Second plant commissioned at Gulabpura. Later, Bhilwara plant was spun off as independent Company (Bhilwara Spinners Ltd.) 1989 - Established grey yarn spinning unit at Banswara. 1994 - Established Melange Yarn manufa
Slide 22: RSWM – Journey
RSWM – Journey 2011 – 2012 Executed another expansion plan with capital outlay of Rs. 400 Crore. Expanded capacity at Kharigram (SJ-11), Banswara (Rotors), Denim (Spinning), Mordi (50 Looms). 2014 - Established a Green Fiber manufacturing unit at Reengus with capacity of 18000 MTs p.a. 2014 -
Slide 23: Certifications
Certifications ISO 9001:2008 : Quality System Certification ISO EMS - 14001:2004 : Environment Management Certification OHSAS - 18001: 2007, SA- 8000:2008 (certified by BSI) : Social Accountability Oeko-Tex-100 (certified by Hoihenstein) : Human Ecological Certification GOTS : Global Org
Slide 24: Product Portfolio
Product Portfolio Synthetic Yarns – Grey/Dyed PV Blended, Poly 100%, Visc. 100%, Poly/Visc/Cotton Blended Specialty Yarns from unorthodox fibres like Bamboo, Bamboo-charcoal, Flex, Lycra, Tencel, Trevira CS, Birla Modal, Protex, X-static, Beltron, Huvis FR polyester etc. Melange Yarns - High value c
Slide 25: Branding
Branding Melange Mayur Fabrics Yarns Edge Ultima LNJ Denim 25
Slide 26: Manufacturing Units
Manufacturing Units 1. Spinning Unit - Kharigram, P.O. Gulabpura, Dist. Bhilwara, Rajasthan 2. Spinning Unit - Village Lodha, Banswara, Rajasthan 3. Spinning Unit - Rishabhdev, Dist. Udaipur, Rajasthan 4. Spinning Unit - Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan 5. Green Fibre
Slide 27: Kharigram Unit
Kharigram Unit Installed Capacity : 167792 Spindles Product : Blended synthetic grey/dyed yarns (p/v yarn, 100% Viscose, 100% polyester, acrylic), Slub Yarn, Core-spun, Compact yarn Production : 52000 MTs p.a. 27
Slide 28: Banswara Unit
Banswara Unit Installed Capacity : 95376 Spindles and 3120 Rotors Product : Blended synthetic & cotton grey yarns (p/v yarn, p/c yarn, 00% viscose, 100% polyester) Slub, Compact, Core-spun yarn Production : 36500 MTs p.a. 28
Slide 29: Rishabhdev Unit
Rishabhdev Unit Installed Capacity : 52848 Spindles Product : Blended synthetic grey yarns (p/v yarn, 100% Viscose, 100% Polyester) Production : 18500 MTs p.a. 29
Slide 30: Reengus Unit
Reengus Unit Installed Capacity : 27840 Spindles Product : Blended synthetic grey/dyed yarns (p/v yarn, 100% Viscose, 100% polyester, acrylic), Slub Yarn, Core- Spun, Compact yarn Production : 10000 MTs p.a. 30
Slide 31: Green Fibre Unit
Green Fibre Unit Installed Capacity : 18500 MTs p.a. Product : Recycled Polyester Fibre Production : 18100 MTs p.a. 31
Slide 32: Mandpam Unit
Mandpam Unit Installed Capacity : 49152 Spindles Product : Cotton Melange Yarn Production : 10000 MTs p.a. 32
Slide 33: Kanyakhery Unit
Kanyakhery Unit Installed Capacity : 25920 Spindles Product : Cotton Melange Yarn Production : 4500 MTs p.a. 33
Slide 34: Bagalur Unit
Bagalur Unit Installed Capacity : 64512 Spindles Product : Cotton Yarns Production : 8500 MTs p.a. 34
Slide 35: Fabric Unit
Fabric Unit Installed Capacity : 104 Looms Product : Fabrics (PV fabric, PC fabric, Flame Retardant and other value added fabrics) Production : 88 Lac Mtr. 35
Slide 36: Denim Unit
Denim Unit Installed Capacity : 136 Looms with matching spinning, dyeing and processing capacity Product : Denim Fabrics (3000+ denim variants) Production : 196 Lac Mtrs. 36
Slide 37: RSWM Ltd. – Performance
‘)eauunae cis RSWM Ltd. — Performance
Slide 38: Financials
Financials (Rs. in Crore) Description 2013-14 2014-15 2015-16 2016-17 2017-18 Turnover 2,884 3,014 2,945 2,996 2,943 EBIDTA 389 377 423 358 263 EBDT 267 252 297 248 146 EAT 99 85 107 101 15 Fixed Assets ( Net ) 947 1,161 1,143 1,190 1,138 Net Worth 395 445 552 633 901 Long Term Loans 606 669 564 497
Slide 39: Segment-wise Turnover
Segment-wiseTurnover Qty – Yarn: Lac Kg. Fabric/Denim Lac Mtr. Amt. - Rs. in Crore 2013-14 2014-15 2015-16 2016-17 2017-18 Segment Qty Amt Qty Amt Qty Amt Qty Amt Qty Amt Yarn 1264 2422 1345 2564 1392 2497 1420 2513 1349 2472 Denim 143 250 157 286 163 297 191 324 203 325 Fabric 197 212 152 165 138 1
Slide 40: Sustainable growth Turnover
Sustainable growth Turnover Rs. in Crore 3100 3014.31 2996.20 3000 2944.79 2943.09 2884.32 2900 2800 2700 2600 2500 2013-14 2014-15 2015-16 2016-17 2017-18 40
Slide 41: EBIDTA
EBIDTA Rs. in Crore 450 420.18 388.78 377.45 400 357.87 350 300 263.08 250 200 150 100 50 0 2013-14 2014-15 2015-16 2016-17 2017-18 41
Slide 42: PAT
PAT Rs. in Crore 120.00 106.95 98.80 100.97 100.00 84.91 80.00 60.00 40.00 20.00 14.50 0.00 2013-14 2014-15 2015-16 2016-17 2017-18 42
Slide 43: EPS
EPS Rs. Dividend Payout Rs. in Crore 50 46.20 28.94 28.94 29.44 43.33 30 45 42.68 1 1 1 40 36.68 25 23.15 35 100% 125% 100% 125% 20 1 1 30 25 15 20 15 10 10 4.71 6.16 5 20% 5 0 0 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18 43
Slide 44: Networth
Networth Rs. in Cr. 1000 901 900 800 700 633 600 552 500 445 395 400 300 200 100 0 31/03/14 31/03/15 31/03/16 31/03/17 31/03/18 44
Slide 45: Debt/Equity and Interest Coverage
Debt/Equity and Interest Coverage Debt Equity Ratio Interest Coverage 3.36 3.24 3.50 3.19 3.00 2.69 3.01 2.51 3.00 2.50 2.15 2.12 2.50 2.24 2.00 1.56 2.00 1.50 1.50 1.00 1.00 0.50 0.50 0.00 0.00 31/03/14 31/03/15 31/03/16 31/03/17 31/03/18 31/03/14 31/03/15 31/03/16 31/03/17 31-03-18 45
Slide 46: Textile Industry – Overview
Textile Industry – Overview 46
Slide 47: Textile Industry - Overview
Textile Industry - Overview 2nd Largest Employer in India. Employs around 40 Mn workforce directly and 40 14% Contribution to Industrial Production of Mn. Indirectly country. 4% Contribution to India’s GDP 16% Contribution to Exports Earnings 22% of World Highest # looms World’s # 1 World’s # 2 Worl
Slide 48: Raw Material Price Trend (Rs./Kg)
Raw Material Price Trend (Rs./Kg) Period Cotton Polyster Viscose Raw Material Prices Mar.16 92 76 141 180 164 164 Jun.16 117 77 144 159 159 159 159 161 161 161 161 160 154 154 154 Sep.16 134 77 154 Oct.16 120 75 154 140 124 125 124 123 124 Dec.16 113 81 154 120 120 120 117 119 120 112 112 113 Jan.17
Slide 49: Textile Industry – Future Prospect
Textile Industry – Future Prospect Huge possibilities in domestic market. Increasing disposable income and increasing e- commerce. Per capita fibre consumption in India is 8Kg as against 18 kg of China and world avg. of 12 kg. Fast growing hotel, hospital and education industry will continue to d
Slide 50: Textile Industry – Challenges
Textile Industry – Challenges • Technology up-gradation of weaving. • Capacity building in processing sector. • Spending on R & D and product development. • Competition from China, Pakistan, Bangladesh and Srilanka. • Squeezing lead time and fast changing fashion trends • Free trade agreements betwe
Slide 51: RSWM Ltd. – Standing with its Strengths
RSWM Ltd. – Standing with its Strengths 51
Slide 52: RSWM – Strengths
RSWM – Strengths • Integrated operations. Fibre Mfg. -> Dyeing-->Spinning-->Yarn Dyeing-->Weaving—>Processing & Finishing-->Fabric Dyeing • Economy of Scale 18000 MT p.a. PSF manufacturing, 27500 MT p.a. fibre/yarn dyeing, 494072 spindles, 4080 Rotors, 154 Looms fabric, 216 lac meter fabric processi
Slide 53: RSWM – Mitigating Challenges
RSWM – Mitigating Challenges Invested around Rs.1500 Cr under TUFS and Rs.400 Cr Non-TUFS in last 11 years Added 2.2 lac Spindles, 2400 Rotors, 64 Looms, 16.7 million meter p.a. capacity Denim unit, 46MW CPP, Yarn/Fibre Dyeing and Green Fibre Manufacturing unit Also added various value additio
Slide 54: Corporate Governance
Corporate Governance • RSWM recognises Corporate Governance not as a set of rules but as a framework supporting the core values. • Good Governance helps us to maintain trust with the shareholders, stakeholders, employees and society at large • RSWM believes that good governance is the key to doing b
Slide 55: Corporate Information
Corporate Information Key Managerial Persons Corporate Office, Noida Mr. Riju Jhunjhunwala- Managing Director & CEO Mr. B. M. Sharma - Chief Financial Officer Mr. Surender Gupta- Company Secretary Business Heads and Key Executives Mr. S.C.Garg- Chief Executive (Yarn Business) Mr. P. Bandyopadhyay- C
Slide 56: Disclaimer
DISCLAIMER This presentation is the property of RSWM Limited (the “Company”) and is strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that: (i) this document is not intended to be