S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q3 FY20 Earnings Presentation
31 slides from S.p. Apparels's earnings presentation, Feb 15, 2020
Slide 1: Cover letter to stock exchanges: Financial Presentation
S.PAPPARELS LTD. Regd, Office : 39-A, Extension Street, Kaikattipudur, AVINASHI - 641 654, Tamil Nadu, India. Phone : +91-4296-714000 E-mail : spindia@s-p-apparels.com Web : www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295 15" February, 2020 The Listing Department The Listing Department BSE Limit
Slide 2: S.P. Apparels Limited Investor Presentation Q3 & 9M FY20 Results Update
S.P.APPARELS LIMITED INVESTOR PRESENTATION Q3 & 9M FY20 Results Update February 2020
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial co
Slide 4: Q3 FY20 - Key Highlights
Q3 FY20 - KEY HIGHLIGHTS ❑ Total Revenues 1 declined by 17.0% on YoY basis ❑ Garment Exports Division declined by 20.1% on YoY basis due to 2 customers went into administration ❑ SPUK Operations grew by 20.6% on a YoY basis ❑ Retail Division declined by 11.7% on YoY basis ❑ Adj. EBITDA2 decreased by
Slide 5: Q3 & 9M FY20 Results Update agenda
Q3 & 9M FY20 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 6: Q3 FY20 Result – Key Highlights
Q3 FY20 RESULT – KEY HIGHLIGHTS Q3 FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 17.5% 15.9% 15.5% 12.3% 2,183.8 381.8 346.4 1.0% 1,811.8 281.1 267.8 3.0% 17.0 % -18.8 % 86.0% 92.9 % 53.5 18.9 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20
Slide 7: 9M FY20 Result – Key Highlights
9M FY20 RESULT – KEY HIGHLIGHTS 9M FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 13.4% 6,614.7 16.1% 13.9% 5,958.3 9.1% 6.7% 795.7 959.9 5.9% 921.0 542.8 441.1 392.5 11.0 % 4.0 % -50.7 % 18.7 % 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY2
Slide 8: Q3 FY20 Result – Division Wise Analysis
Q3 FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn Q3 FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q3 FY19 Q3 FY20 Garment Exports 83.5% 80.4% 2183.8 249.4 1811.8 SPUK 5.1% 7.4% 111.5 220.2 Retail 11.4% 12.2% 11.7 % 134.45 20.6% Adj. EBITDA MARGIN % 2 Q3 FY19 Q3 FY20 1,822.9 1,4
Slide 9: 9M FY20 Result – Division Wise Analysis
9M FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn 9M FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE 9M FY19 9M FY20 6614.7 Garment Exports 83.2% 84.3% 5958.3 649.1 610.5 389.0 SPUK 6.6% 5.9% 392.5 Retail 10.2% 9.8% 6.3 % -0.9 % 5,576.6 Adj. EBITDA MARGIN % 2 9M FY19 9M FY20 4,955
Slide 10: Q3 FY20 Result – Key Analysis
Q3 FY20 RESULT – KEY ANALYSIS FINANCIAL UPDATE: • Q3 FY20 total revenues1 decreased by 17.0% YoY to Rs 1811.8 mn. • Revenues decreased by 20.1% in Garment Exports and increased by 20.6% in SPUK. • Garment Exports witnessed decline due to two customers went into administration • Q3 FY20 Adj. EBITDA2
Slide 11: Q3 & 9M FY20 Result – Consolidated Profit & Loss Statement
Q3 & 9M FY20 RESULT – CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY20 Q3 FY19 YoY% 9M FY20 9M FY19 YoY% Revenue from Operations 1768.95 2,226.0 -20.5% 6,406.0 6,041.5 6.0% Gain on account of Foreign Currency Fluctuations 42.86 -42.2 - 208.7 -83.2 - Total Revenues 1,811.8 2,183.8
Slide 12: Q3 & 9M FY20 – Consolidated Balance Sheet
Q3 & 9M FY20 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Sep-19 Mar-19 Particulars (Rs Million) Sep-19 Mar-19 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 256.9 a. Property, Plant and Equipment 3,959.7 3,107.3 Other Equity 4,988.1 4,581.7 b. Capi
Slide 13: Company Overview
Q3 & 9M FY20 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 14: Brief Profile
BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪ Strong promoter p
Slide 15: Our Evolution
OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase efficiencies and
Slide 16: Leading Exporter of Infant & Children Wear in India
LEADING EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decades • Labour intensive operations.
Slide 17: Preferred Vendor to Reputed International Brands
PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including body suits, sleep su
Slide 18: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES INTEGRATED BUSINESS LOCATION ADVANTAGE: MODEL • All 26 manufacturing facilities are located within a radius of ~125 km of our Registered Office near Product Development Tirupur (leading hub in India for knitted garments for children and exp
Slide 19: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 18
Slide 20: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 19
Slide 21: Strong In-House Design Expertise
STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and des
Slide 22: Stringent Quality Controls & Compliance
STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each piece of garment f
Slide 23: Qualified Management with Deep Understanding of Apparel Sector
QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Four years of experience in the • Founder director of SPAL with 33 Founder director of SPA with 26 years textile and
Slide 24: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mr P. Yesuthasen Independent Director Independent Director • 45 years of experience in banking • 42 years of experience in banking • Masters of Science from the University • MS in Business Administration, Cass of Madras Business Sch
Slide 25: Business Strategy & Outlook
Q3 & 9M FY20 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 26: Retail Division Hive-Off (1/2)
Retail Division Hive-Off : Focussing on core strengths to strengthen the Balance sheet & ROCE (1/2) Rationale • Raised Rs 280 Mn for Retail division through our IPO during the year 2016. • In the Financial year 2016, Retail division had a revenue of Rs 340 Mn and from there Retail division has grown
Slide 27: Retail Division Hive-Off (2/2)
Retail Division Hive-Off : Focussing on core strengths to strengthen the Balance sheet & ROCE (2/2) Scheme of arrangement : • The amount of Capital employed in Retail Division till December 2019 is Rs 846.1 Mn (Including an Intangibles of Rs 30 Mn) • The total consideration of the deal will be Rs 81
Slide 28: Financial Overview & Shareholding Structure
Q3 & 9M FY20 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 29: Financial Overview
FINANCIAL OVERVIEW In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN CAGR: 9.3% CAGR: 8.9% CAGR: 11.1% 8.5% 8.9% 16.0% 16.2% 7.2% 8,264 16.4% 6,330 6,624 1,338 734 1,036 1,058 536 478 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 * Excludes exceptional item of write-off of amou
Slide 30: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 31st December 2019 KEY SHAREHOLDERS – 31st December 2019 Goldman Sachs India Ltd 5.21% Non-Institutions 16.7% UTI Mutual Fund 5.18% Promoters 61.6% DSP Blackrock Small Cap Fund 4.81% ICICI Prudential Mutual Fund 2.67% Institutions 21.7% Aditya Birla Sun
Slide 31: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Chief Financial Officer Email: balaji.v@spapparels.com Mr. Chinmay Madgulkar /Mr. Chintan Mehta IR Consultant Email: s.p.apparels@dickensonworld.com Contact no: +91 9860088296/ 9892183389