Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q2 FY17 Earnings Presentation
40 slides from Sutlej Textiles & Industries's earnings presentation, 2016
Slide 1: Result Presentation Q2 & H1 FY17
Result Presentation Q2 & H1 FY17
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic developm
Slide 3: Agenda
Agenda 1 Q2 & H1 FY17 – Key Financial Highlights 2 Q2 & H1 FY17 – Key Business Update 3 Corporate Overview 4 Segment Presence – Yarn & Home Textiles 5 Annual Financial Performance 6 Business Outlook 3
Slide 4: Q2 & H1 FY17 – Key Financial Highlights
Q2 & H1 FY17 – Key Financial Highlights 4
Slide 5: Q2 & H1 FY17 – Financial Performance
Q2 & H1 FY17 – Financial Performance Total Income (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) +24.07% +50.47% +14.31% 1129 179 +9.57% 988 +24.97% +57.70% 97 144 64 567 92 52 518 74 33 Q2 FY16 Q2 FY17 H1 FY16 H1 FY17 Q2 FY16 Q2 FY17 H1 FY16 H1 FY17 Q2 FY16 Q2 FY17 H1 FY16 H1 FY17 Improved performance due to o
Slide 6: Profitability Highlights
Profitability Highlights Rs. In Cr Q2 FY17 Q2 FY16# YoY % H1 FY17 H1 FY16# YoY % Total income 567 518 9.57% 1,129 988 14.31% Raw Material Cost 304 303 611 572 Employee Cost 66 51 129 98 Other Expenses 105 90 210 174 EBITDA 92 74 24.97% 179 144 24.07% Depreciation 20 19 42 37 Finance Cost 10 11 23 23
Slide 7: Balance Sheet Highlights
Balance Sheet Highlights Rs. in Cr Sep – 16 Mar – 16 Rs. in Cr Sep - 16 Mar – 16 Non-current assets 1,111 947 Shareholder’s Fund 757 687 Share capital 16 16 Fixed assets 1,055 884 Reserves & Surplus 741 671 Investments 27 26 Deferred Govt. Subsidies 3 2 Other Non Current assets 29 37 Non-current lia
Slide 8: Yarn segment registering growth
Yarn segment registering growth Revenue (Rs Cr) EBIT (Rs Cr) +13.79% +25.47% 1057 125 929 99 H1 FY16 H1 FY17 H1 FY16 H1 FY17 Increasing share of value added products increasing revenues and profitability 8
Slide 9: Home Textile segment growing gradually
Home Textile segment growing gradually Revenue (Rs Cr) EBIT (Rs Cr) +21.18% +184.11% 6 55 45 2 H1 FY16 H1 FY17 H1 FY16 H1 FY17 Focusing on growth in Home Textile segment… 9
Slide 10: Comments of Executive Chairman on the results
Comments of Executive Chairman Mr. C. S. Nopany on the results The Second Quarter of the year continued to witness challenges due to global slowdown and stressed rural economy. Sutlej was able to offset these strong headwinds by its prudent raw material purchasing policy in a volatile cotton fiber m
Slide 11: Q2 & H1 FY17 – Key Business Update
Q2 & H1 FY17 – Key Business Update 11
Slide 12: Key Business Update and Growth Drivers
Key Business Update and Growth Drivers Brownfield project - Capacity Expansion of Value Added Products at Bhawanimandi, Rajasthan Work on the expansion project for adding 35,280 spindles at Bhawanimandi, Rajasthan facility at a project cost of Rs.270 crores is progressing satisfactorily. At pres
Slide 13: Key Business Update and Growth Drivers cont…
Key Business Update and Growth Drivers cont… Modernisation Update Invested around Rs.38 crore during H1 FY 2017, towards technology up-gradation and debottlenecking, etc. This will result in further improvement of efficiency and sustaining plant utilization. Intends to deploy further amount of ~
Slide 14: Corporate Overview
Corporate Overview 14
Slide 15: Company Overview
Company Overview India’s largest Spun-dyed Yarn manufacturer and leading textile player with presence across value chain – from Yarn to Home Textile – Increasing capacity of high margin Value-Added Products - Cotton blended dyed and Mélange Yarn State-of-the-art manufacturing facilities located
Slide 16: Journey from spun dyed yarn manufacturer to …
Journey from spun dyed yarn manufacturer to … Expansion at Incorporated as a result of 31,104 spindles Bhawanimandi unit by Corporate Restructuring in added at Chenab 7,488 spindles to which Textile Division of Textile Mills - J&K manufacture PV Dyed Yarn Sutlej Industries Limited for manufact
Slide 17: Corporate Governance at the Helm
Corporate Governance at the Helm Board of Directors Mr. C.S. Nopany Executive Chairman Mr. U.K. Khaitan Independent Non Exec Director Mr. Amit Dalal Independent Non Exec Director Mr. Rajan Dalal Independent Non Exec Director Ms. Sonu Bhasin Independent Non Exec Director Mr. Rajiv K. Podar Independen
Slide 18: State of the art manufacturing facilities …
State of the art manufacturing facilities … Chenab Rajasthan Textile Birla Damanganga Home Textile Mills Mills Textile Mills Textile Kathua, Bhawanimandi, Baddi, Daheli, Location Jammu & Kashmir Rajasthan Himachal Pradesh Gujarat Cotton Mélange Yarns Cotton Yarns Cotton Yarns Home textiles P
Slide 19: Wide distribution network and marquee clientele
Wide distribution network and marquee clientele Presence and strong brand image across globe in over 55 countries… Evolved as vendor to… Expanded global foot print … …partner to leading textile solution …De-risk over dependence on few geography providers 19
Slide 20: Diverse and wide product portfolio
Diverse and wide product portfolio One stop shop for all kinds of spun dyed yarns Focus on value added yarns that fetched superior realisations like Cotton Mélange Yarn, Dyed Synthetic Yarn Diversified offerings with presence across value chain with – Yarns & Home Textile 20
Slide 21: Segment Presence – Yarn & Home Textiles
Segment Presence – Yarn & Home Textiles 21
Slide 22: Yarn - Consistent capacity addition over the years
Yarn - Consistent capacity addition over the years Spindles capacity Sales (MT) 4,12,968 +9.6% 104,359 3,77,688 +8.5% 79,666 80,040 2,93,736 76,334 72,346 2,53,000 2,61,736 2,08,104 1,55,456 FY05 FY08 FY12 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 Invested in modernization - 54% of spindle age
Slide 23: Registering strong growth in Yarn segment…
Registering strong growth in Yarn segment… Revenue (Rs. Cr) Average Sales Realisation (Rs / Kg) 2,177 222 219 207 206 200 1,768 1,784 1,581 1,447 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 … through multiple capacity expansions as well as profitable acquisitions 23
Slide 24: Home Textiles – Entering Growth Orbit
Home Textiles – Entering Growth Orbit Capacity (Million Meters Per Annum) Entered the Home Textiles segment in 2006-07 9.6 Capacity to expand by 4.6 mmpa to 9.6 mmpa by FY17 Continued focus on driving category premiumisation Product range includes +17.0% – Furnishing Fabrics – Curtain Fabric
Slide 25: Annual Financial Performance
Annual Financial Performance 25
Slide 26: Total Income at new peak …
Total Income at new peak … 2,302 +10.0% 1,923 1,918 Home Textiles 4.0% 1,728 1,573 96.0% Yarn FY12 FY13 FY14 FY15 FY16 Figures in Rs Crore 26
Slide 27: … Highest ever profitability
… Highest ever profitability EBITDA (Rs Cr) Net Profit (Rs Cr) +15.0% +45.5% 306 311 143 131 272 115 234 178 77 32 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 27
Slide 28: … and strong leverage position
… and strong leverage position Average Interest Rate of Term Improving Total Debt / Equity Ratio Robust Interest Coverage Loans (After TUF) 2.6 4.9 4.0 3.8 1.9 1.4 8.0% 2.5 7.2% 7.5% 7.3% 6.8% 1.1 1.1 1.8 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 28
Slide 29: Strong Balance Sheet…
Strong Balance Sheet… Growing Gross Block (Rs Cr) Increasing Networth (Rs Cr) Surging Earning Per Share (Rs) +45.7% 1,667 676 87.5 +10.1% 80.2 1,397 +25.1% 558 70.5 1,226 1,136 1,147 462 346 47.0 276 19.4 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Continuous growth pl
Slide 30: …with healthier return ratios in the industry
…with healthier return ratios in the industry Strong Return on Equity (RoE) Consistent Return on Capital Employed (RoCE) 28.0% 28.0% 23.0% 23.0% 22.0% 21.0% 21.0% 21.0% 18.0% 12.0% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 RoE = Profit After Tax /Networth RoCE = EBITDA/Capital Employed (Netw
Slide 31: Highest ever Dividend in history of Company
Highest ever Dividend in history of Company Dividend Per Share (Rs) Dividend Payout (%) 13 18% 17% 10 12% 8 8% 5 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Board recommended highest ever Dividend of Rs 13 per equity share for FY16 31
Slide 32: Key financial highlights
Key financial highlights Rs. in Cr USD mn Particulars FY14 FY15 FY16 FY14 FY15 FY16 Total Revenues 1,923 1,918 2,302 337 315 339 EBITDA 306 272 311 54 45 46 PAT 131 115 143 23 19 21 Total Assets 1,273 1,341 1,709 223 220 251 Net Worth 462 558 676 81 92 99 Long Term Debt 267 339 427 47 56 63 Total De
Slide 33: Business Outlook
Business Outlook 33
Slide 34: Business Outlook
Business Outlook Niche Value Added Consistent production of high margin value added products to result in greater proportion Products of Cotton blended dyed and Mélange Yarn in the overall mix Acquisition of BTM & enhancing spindles capacities towards manufacturing Cotton Growing Core Business b
Slide 35: Industry Discussion – Home Textiles
Industry Discussion – Home Textiles Global Home Textile market is estimated at USD 45 bn India’s market share on a continuous uptrend (improved 20% points over the last five years — from 27% in 2009 to 47% in 2015) India’s Market Share on a continuous uptrend India 27 33 38 45 46 47 China 29 30
Slide 36: Domestic Home Textile Industry Overview
Domestic Home Textile Industry Overview Domestic Home Textile Market (Rs Cr) Category wise market break-up (Rs Cr) CAGR 40,780 Categories 2011 2016 (P) 2021 (P) (%) Bed Linen 8,965 13,170 19,350 8.0 +8.3% Towels 3,320 4,840 7,060 7.8 27,365 Curtains 1,850 2,975 4,790 10.0 Blankets 1,465 2,040 2,850
Slide 37: Indian Textile Sector - Present
Indian Textile Sector - Present $108 Indian Textile sector current size Billion 2nd Largest employment generator, Employs 45 mn people directly 50 Million spindles along with 842,000 Rotors capacity across ~3,400 mills 13% Share in country’s export earnings 10% Contribution to India’s manufacturing
Slide 38: Indian Textile Sector Potential
Indian Textile Sector Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 9.886 58 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Market Valu
Slide 39: About Us
About Us Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Executive Chairman of STIL, a Chartered Accountant and Master of Science in Industr
Slide 40: Thank You
IES - : Nh Thank You SUL)
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