Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q2 FY2023 Earnings Presentation
39 slides from Banswara Syntex's earnings presentation, Nov 12, 2022
Slide 1: Banswara Syntex Ltd Investor Presentation
Banswara Syntex Ltd Investor Presentation November 2022 1
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Banswara Syntex Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 3: Q2&H1FY23 Highlights
Q2&H1FY23 Highlights 3
Slide 4: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Ravindra Kumar Toshniwal, Managing Director said, “It is my pleasure to announce that we reach the halfway mark for FY 22/23 and have already crossed exceeded our last year's numbers for complete FY21/22. Going forward H2 has headwinds du
Slide 5: Q2 & H1FY23 Highlights
Q2 & H1FY23 Highlights Total Income* EBITDA PBDT PAT +13.9% +10.5% +12.1% +84.3% 408 51 44 35 358 47 39 312 +30.8% +48.6% +51.9% 35 29 19 +199.1% 12 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Total Income* EBITDA PBDT PAT +45.7% +80.6% +94.8% +260.1% 766 98 8
Slide 6: Revenue Mix – Segmental and Geography wise
Revenue Mix – Segmental and Geography wise Division-Wise Gross Revenue (Rs. in Crores) Geography-wise Gross Revenue (in %) 1,350 1,295 34 1,290 37 27 1,190 282 38 252 255 199 45% 44% 43% 41% 47% 787 761 497 496 25 397 9 584 102 182 306 267 55% 56% 57% 59% 53% 537 512 556 422 354 303 FY18 FY19 FY20 F
Slide 7: Key Balance Sheet Items
Key Balance Sheet Items Net Debt* (Rs. Crores) Debt-Equity Ratio* Increase in debt was on account of the following reasons: ▪ Increase in working capital 585 3.2 due to increase in trade 557 2.9 receivables in all the 479 business segments 2.2 365 ▪ Additional term loan of Rs 328 35 Crores used to i
Slide 8: Q2 & H1FY23 Highlights
Q2 & H1FY23 Highlights Proportion of the high margin value-added business (Fabric and Garments) has increased to 59% of the total sales in H1FY23 as compared to 1 46% in H1FY22. For Q2FY23, it was 60% of total sales For H1FY23, Yarn division grew its sales by 17% whereas the Fabric division increase
Slide 9: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q2FY23 Q2FY22 YoY Q1FY23 QoQ H1FY23 H1FY22 YoY FY22 Employee Cost: During Q2FY23, employee cost has marginally risen by 0.37% on account Revenue from Operations 406.5 307.0 355.5 762.0 519.2 1189.8 of additional wages payable in the labour-intensive
Slide 10: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Sep-22 Mar-22 Equity & Liabilities (Rs. in Crs) Sep-22 Mar-22 Non-current assets 396.1 377.1 Equity 449.5 400.1 Property, Plant & Equipment 311.7 306.4 Equity share capital 17.1 17.1 Right of use assets 5.5 5.7 other equity 432.3 383.0 Capital Work in prog
Slide 11: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crs) Sep-22 Sep-21 Operating profit before working capital changes 99.4 54.4 Changes in working capital -173.6 -23.8 Cash generated from operations -74.2 30.6 Income Tax Refund/(Direct Taxes Paid) 20.3 8.1 Net Cash from Operating Activities (A) -94.4 22.5 Net Cash from I
Slide 12: About US
About US Our Specialty is Value Added Textiles 12
Slide 13: Our Journey
Our Journey • Started production of wool & wool • Started production of mixed fabrics in the brand name of Readymade Garments `SaintX` for domestic supply. • Banswara Textile Mills Ltd. • Started second unit of 15 MW (BTM), an associate firm captive thermal power plant. engaged in fabric finishing 1
Slide 14: Our Global Footprint
Our Global Footprint Incorporated in the year 1976 Offering Vertically Integrated Experienced Design Teams textile solutions Europe Design Studio in Collaboration USA Middle East with Italy and France 9,000+ Employees Japan Corporate Office - Mumbai Manufacturing Plants - • Banswara, Rajasthan In Ho
Slide 15: Manufacturing Capabilities
Manufacturing Capabilities Dyeing Unit Spinning Unit Weaving Unit Garmenting Unit The Company owns • 1,59,000 Spindles YARN FABRICS GARMENTS POWER GENERATION • 400 Looms Weaving- 2.7Mn Meters/ month 3,25,000 Trouser & Suiting's/ Month 3,060 Tonnes / month Processing- 4.5Mn Meters/ 80,000 Jackets & W
Slide 16: Strategically Located Facilities
Strategically Located Facilities Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainable supply It also ensures strong relationship with suppliers while maintaining need-based approach Easy Availability of skilled and Unskilled labour Quality Infrastructure conne
Slide 17: Leadership Team
Leadership Team Founded the Company in the year 1976. Masters in Textiles from Leeds University, UK. 55 years of experience in the textile industry. Late Shri. Toshniwal Ex-Chairman of Rajasthan Textile Mills Association, Ex-President of Indian Spinners Association and Ex-Chairman of the Synthet
Slide 18: Board of Directors
Board of Directors Mr. Rakesh Mehra Mr. Ravindra Kumar Toshniwal Mr. Shaleen Toshniwal Chairman Managing Director Joint Managing Director Mr. Parduman Kumar Mr. D P Garg Mr. J. M. Mehta Independent Director Independent Director Independent Director Mr. Vijay Mehta Mr. Kamal Kishore Kacholia Dr. S B
Slide 19: Business Segments
Business Segments 19
Slide 20: Yarn Business – The Building Block
Yarn Business – The Building Block Preferred Partner for the quality Focused Customers for Synthetic Blended Yarns Multi-specialty Yarn range with functional features Production of blends made of Stretch Yarns for weaving using viscose staple fibre, polyester staple fibre, acrylic branded lycra and
Slide 21: Fabric Business – The Growth Engine
Fabric Business – The Growth Engine Company is Focusing on High-Quality & Performance Fabrics Company sees favorable opportunities in production of Comfort fabric Expansion in Value Leveraging our Current Presence Flexibility in production due to best-in-class technology and state-of- Added Fabrics
Slide 22: Fabric Business – Growth Plan
Fabric Business – Growth Plan Improve the Product Mix Potential Partnerships Target Markets Venturing into production of Potential partnerships with synergistic Knitted fabrics benefits USA Europe Japan & Korea Increasing the market share in To shorten lead times by partnering with Deepen penetratio
Slide 23: Garment Segment – Value Addition Division
Garment Segment – Value Addition Division Garments is one of the fastest growing segments in the Textile industry 15+ years Experience One of the Largest manufacturer of Strong international presence in Garment manufacturing specialized Formal Suits, Jackets and with long term relationships with Tro
Slide 24: Domestic Clientele
Domestic Clientele E-Commerce Clients 24
Slide 25: International Clientele
International Clientele Working with some of the world’s biggest names 25
Slide 26: CSR Activities
CSR Activities Creation of garden in Banswara to provide locals with a means of recreation Cleaning of lake near the garden to increase the oxygen level of the water body. This has helped in the reduction of mosquitos and has brought back migratory birds Creation of a walking path of 5 KM along the
Slide 27: Strategic Focus & Outlook
Strategic Focus & Outlook 27
Slide 28: Industry expected to grow at ~11% CAGR over the next 5 years
Industry expected to grow at ~11% CAGR over the next 5 years Indian Domestic Apparels and Textiles Market (USD bn) ▪ Domestic textile and apparel industry faced a range of challenges 191 13 post covid induced lockdowns; fall in retail sales, logistical 10.3% CAGR 43 disruptions, manufacturing shutdo
Slide 29: China +1 provides huge opportunity for Indian Textiles Industry
China +1 provides huge opportunity for Indian Textiles Industry With favorable India Covid-19 has led to Demographics and redistribution of global Industry Dynamics, India trade shares and is capable to position recalibration of sourcing 01 06 itself as a Global Partners Textiles hub China +1 provid
Slide 30: Why Banswara Syntex Limited?
Why Banswara Syntex Limited? Modernized Skilled Design Competent Transition to Outlook to and Marketing Leadership Value Added Textiles and Teams Team Products Fashion Investment Rationale Focus on Vertically Export and Consistently 40+ years of integrated Industry Domestic business Lowering Debt Ma
Slide 31: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara Benefits Covers All Economies Geographic Product requirements- of Scale Expansion Specialization One Stop Shop 02 04 06 08 01 03 05 07 Sustainability Improved Competitive Significantly Supply pricing Lesser Lead Time Chain Co- ordination
Slide 32: Operational Focus
Operational Focus Cost Optimisation Measures ▪ Switched to grid power as thermal power cost has increased ▪ Looking to increase usage of solar Improvement in Capacity Utilization power and targeting zero thermal ▪ Demand improvement across power usage textile value chain across domestic ▪ Improvemen
Slide 33: Shift from Yarn to Garment
Shift from Yarn to Garment Revenues Revenue Breakup EBITDA 1,600 11.7% 15% - 17% 13% 16% 25% Expected Margin Increase of ~100 bps 1,207 on a yearly basis 240-260 803 135 92 FY21 FY22 FY25e FY21 FY22 FY25E FY21 FY22 FY25E Garments Yarn Fabric Others CAGR CAGR 19% Target is to Banswara is well placed
Slide 34: Financials
Financials
Slide 35: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs FY22 FY21 FY20 FY19 Revenue from Operations 1,189.8 786.6 1,289.5 1,350.9 Other Income 17.0 16.2 12.9 13.6 Total Income 1,206.7 802.8 1,302.4 1,364.5 Total Expenditure Raw materials 526.9 375.1 601.3 667.7 Employee Expense 220.9 153.1 241.7 236.9 Power
Slide 36: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Non-current assets 377.1 360.3 393.6 433.9 Equity 400.1 357.4 341.9 294.4 Property, Plant & Equipment 306.4 330.8 370.7 413.6 Equity share capital 17.1 17.1 17.1 17.1
Slide 37: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crores) Mar-22 Mar-21 Mar-20 Mar-19 Operating profit before working capital changes 133.1 89.8 150.7 133.7 Changes in working capital -57.9 45.3 65.5 6.6 Cash generated from operations 75.2 135.1 216.1 140.3 Income Tax Refund/(Direct Taxes Paid) 22.6 -2.7 -10.8 -3.0 Net
Slide 38: Dividend Payout History
Dividend Payout History Dividend 10% 10% 10% 15% 15% 25% Pay-out 31.1 EPS 26.7 DPS 14.2 11.2 8.5 4.9 2.5 1.0 1.0 1.0 1.5 1.5 FY17 FY18 FY19 FY20 FY21 FY22 The company has Consistently declared dividends Year-on-Year 38
Slide 39: Contact Us
Contact Us Company: Investor Relations Advisors: Banswara Syntex Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Mr. Pankaj Gharat Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala pankajgharat@banswarasyntex.com rahul.agarwal@sgapl.net / Brinkle.shah@sg