Filatex India Ltd · NSE:FILATEX
Filatex India — Q2 FY18 Earnings Presentation
31 slides from Filatex India's earnings presentation, November 2017
Slide 1: Filing cover letter to stock exchanges
_ B® FILATEX INDIA LIMITED “°° FIL/SE/2017-18/39 8" November, 2017 National Stock Exchange of India Limited The Bombay Stock Exchange Limited Listing Department Listing Department 5" Floor, Exchange Plaza, C-1, Block-G, 25" Floor, Pheroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra (E) Dalal Stre
Slide 2: Filatex India Limited - Next Growth Phase 5.0
Filatex India Limited Next Growth Phase – 5.0 November 2017
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Filatex India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
Slide 4: H1FY18: Key Highlights
H1FY18: Key Highlights Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +15.1% +10.7% +36.9% 845 73 28 734 66 20 H1FY17 H1FY18 H1FY17 H1FY18 H1FY17 H1FY18 Yarns Volume (MTPA) Chips Volume (MTPA) +8.2% +2.8% 87,070 12,829 13,189 80,435 H1FY17 H1FY18 H1FY17 H1FY18 Net External Debt / Equity ~1.3X Succ
Slide 5: Filatex India Limited Journey: Growth in 4.0 Phases
Growth in 4.0 Phases Filatex India Limited Journey: 1.o 4.0 Success Follows Diligent Planning 4
Slide 6: Value Creation Journey So Far
Value Creation Journey So Far Transition Product Backward Forward Manufacturing Diversification Integration Integration 1.0 2.0 3.0 4.0 1990-1995 1996 - 2011 2012 - 2015 2016 Noida Plant Dadra Plant Dahej Plant Dahej Plant ▪ A pioneer in manufacturing of ▪ Diversified into Polyester POY and ▪ Fully
Slide 7: Success follows Diligent Planning
Success follows Diligent Planning Focus on Core Business, Emergence of New Platforms and Financial Discipline 1 2 3 4 5 Increase in Increase in Increase in Increase in Increase in Manufacturing Market Reach Profitability Product Offerings Value Addition Capacities Success Follows Diligent Planning 6
Slide 8: Increase in Product Offerings
Increase in Product Offerings Success Follows Diligent Planning 7
Slide 9: Increase in Manufacturing Capacities
Increase in Manufacturing Capacities Capacity Break-up (Plant Wise) Existing Capacity (MTPA) Products Dadra Dahej Narrow Woven Fabric 2,500 - New Delhi Semi Dull Polyester POY* 16,700 20,000 Capacity increased Semi Dull Drawn Textured Yarn* 6,000 70,000 from Semi Dull Polyester Chips - 64,000 Dahej
Slide 10: Increase in Value Addition
Increase in Value Addition Semi Dull & Coloured Production Split by Volume – FY17 Total Production Volume for FY17 – 189,945 Metric Tonnes 2.5% 1.4% 13.0% 24.6% 34.6% 23.9% Drawn Textured Yarn Polyproplene Yarn Fully Drawn Yarn Polyester Chips - 24,601 MT Polyester POY - 65,811 MT Fully Drawn Yarn -
Slide 11: Increase in Market Reach
Increase in Market Reach Over 50% of DTY production are exported Latvia Canada Poland Turkey Exports contributed Portugal USA Italy South 19% to overall Syria Morocco Israel Iran Korea Revenues as on FY17 Nepal Algeria Egypt Hong Kong Bangladesh Thailand Colombia Exports – Rs. Crs Kenya Sri Lanka 15
Slide 12: Increase in Profitability
Increase in Profitability Revenue Interest 10 Year CAGR Coverage Ratio 18% 2x EBITDA ROCE 10 Year CAGR 31% 14% PAT ROE 10 Year CAGR 30% 19% Success Follows Diligent Planning 11
Slide 13: Strong Leadership Team
Strong Leadership Team Mr. Madhu Sudhan Bhageria - Chairman & Managing Director › Gold medalist in Commerce from Shri Ram College of Commerce, Delhi › Rich experience in Polyester Industry and President of PTA Users Association Mr. Purrshottam Bhaggeria – Joint Managing Director Mr. Madhav Bhageria
Slide 14: Launch of Phase 5.0
Launch of Phase 5.0 Filatex India Limited 5.0 Success Follows Diligent Planning 13
Slide 15: Phase 5.0 – Complete Product Range
Phase 5.0 – Complete Product Range Transition Product Backward Forward Manufacturing Diversification Integration Integration Complete Product Range 1.0 2.0 3.0 4.0 5.0 Bright Polymer Expansion at Dahej Success Follows Diligent Planning 14
Slide 16: Dahej Expansion – Integration & Optimization
Dahej Expansion – Integration & Optimization › Finished Products PTA MEG • Semi Dull – DTY, POY & FDY • Bright– DTY, POY & FDY Polymerization › Existing Polymerization POY Capacity to support Bright Spinning Capex FDY • Remaining Polyester Chips as well as Spinning Bright Chips supplied to Dadra Pla
Slide 17: Brownfield Expansion at Dahej
Brownfield Expansion at Dahej Project Cost of Rs. 343.0 Crores – Fully Funded Expansion Work near Completion - Internal Accruals – Rs. 63.5 Crs - Debt – Rs. 279.5 Crs • Foreign Debt – 174.5 Crs • Rupee Debt – Rs. 105.0 Crs • Eligible for Partial SGST refund - Blended Interest Rate – 6-7% Products (M
Slide 18: Expansion work near Completion
Expansion work near Completion Success Follows Diligent Planning 17
Slide 19: Post Expansion Capacities
Post Expansion Capacities Products (MTPA) Gross Captive Net % Net Capacity (Post Expansion Net of Captive) 3,31,500 TPA Bright Polyester POY 9,000 - 9,000 2.7% Bright Polyester Chips 30,600 13,000 17,600 5.3% SD Drawn Bright Fully Drawn Yarn 68,400 - 68,400 20.6% SD Fully Drawn Textured Yarn Yarn 22
Slide 20: Complete Product Range
Complete Product Range One Stop Shop for Synthetic Filament Yarn Filatex India Limited New Expansion Semi Color Bright Dull POY DTY FDY POY DTY FDY POY DTY FDY Expansion will enable us to deliver all varieties of DENIERS and COLOURS Success Follows Diligent Planning 19
Slide 21: Economics of Expansion
Economics of Expansion Higher Realization & Better Margin 01 Government 02 Incentive Schemes Lower Capex Existing Land 03 & Infrastructure Saving in Operating 04 and Interest Cost Utilization of Existing Polymerization 05 Partially Success Follows Diligent Planning 20
Slide 22: Financial Performance
Financial Performance › Robust Business Results › Margin Development › Return Indicators › Disciplined Capital Allocation › Financials Success Follows Diligent Planning 21
Slide 23: Robust Business Results
Robust Business Results Yarns Volume (MTPA) Revenue EBITDA PAT Rs. Crs Rs. Crs Rs. Crs 165,344 41.0* 1,572.8 1,551.0 133.3 122,658 130,039 1,278.2 87.5 26.3^ 78.9 FY15 FY16 FY17 Chips Volume (MTPA) # 9.6 47,053 29,072 29,368 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 *FY17 - Includes Profit of Rs.
Slide 24: Margin Development
Margin Development EBITDA Margin % EBITDA Margin Development 8.6% Improving Margins through Operating Cost Efficiencies -0.9% 6.8% -0.9% 8.6% 0.1% 3.6% -1.6% 6.8% 5.0% 3.3% 5.0% FY15 FY16 FY17 FY15 - RM - Value Employee Other Cost FY16 - RM - Value Employee Other Cost FY17 - EBITDA Add* Cost EBITDA
Slide 25: Return Indicators
Return Indicators ROCE % ROE % * 14.4% 18.5% 18.6% 11.5% 10.5% 10.3% FY15 FY16 FY17 FY15 FY16 FY17 Return ratios improvement led by improved product mix and operating cost efficiencies *Shareholders Funds = Equity Capital + Share Premium + Accumulated Profits On Standalone basis Success Follows Dili
Slide 26: Disciplined Capital Allocation
Disciplined Capital Allocation Net-worth Net External Debt Estimated - Net External Debt 325.7 Net External Debt / Equity Net External Debt / Equity* 1.1X ~1.5-1.65X 245.9 55 70 88 105 357 15 175 40 622 390 Incremental Debt for 357 Bright Expansion FY16 FY17 Term Loan W. Capital Promoter Cash & Tota
Slide 27: Standalone Profit & Loss Statement - Quarter
Standalone Profit & Loss Statement - Quarter Particulars (Rs. Crs) Q2FY18 Q2FY17 YoY Q1FY18 QoQ H1FY18 H1FY17 YoY REVENUE (Net of Excise Duty) 414.5 382.8 8.3% 430.4 -3.7% 844.9 734.1 15.1% Raw Material Costs 328.3 303.4 342.3 670.6 582.6 Employee Expenses 12.6 11.9 11.6 24.2 23.4 Other Expenses 37.
Slide 28: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crs) Sep-17 Particulars (Rs. Crs) Sep-17 EQUITY & LIABILITIES ASSETS EQUITY 353.3 Non-Current Assets 818.8 Equity Share capital 43.5 Property, plant and equipment 621.1 Other equity 309.8 Money received against share warrants - Capital work-in-progress 167.2
Slide 29: Standalone Profit & Loss Statement - Annual
Standalone Profit & Loss Statement - Annual Particulars (Rs. Crs) FY17 FY16 FY15 REVENUE 1,551.0 1,278.2 1,572.8 Raw Material Costs 1,225.3 1,051.8 1,350.0 Employee Expenses 47.0 40.0 35.4 Other Expenses 145.5 99.0 108.5 EBITDA 133.3 87.5 78.9 EBITDA Margin 8.6% 6.8% 5.0% Other Income 11.4 10.7 9.7
Slide 30: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crs) FY17 FY16 FY15 Particulars (Rs. Crs) FY17 FY16 FY15 EQUITY & LIABILITIES ASSETS EQUITY 325.7 245.9 170.3 Non-Current Assets 664.2 571.6 409.4 Equity Share capital 43.5 32.0 32.0 Property, plant and equipment 628.4 549.1 388.2 Other equity 282.2 201.0 13
Slide 31: Contacts
Contacts Filatex India Limited Strategic Growth Advisors Pvt. Limited CIN: L17119DN1990PLC000091 CIN: U74140MH2010PTC204285 Mr. R. P. Gupta Mr. Pankaj Chhaochharia / Mr. Rohan Adhiya rpgupta@filatex.com pankaj.c@sgapl.net / rohan.adhiya@sgapl.net +91 7977090417/ +91 98332 19522 www.filatex.com www.s