Gokaldas Exports Limited · NSE:GOKEX
Gokaldas Exports — Investor Presentation (September 2021)
34 slides from Gokaldas Exports's investor presentation, Sep 5, 2021
Slide 1: Intimation of Analyst / Investor Meetings Schedule
gokaldas exports Itd GEL/SEC/2021-22 September 5, 2021 BSE Limited The National Stock Exchange of India Limited Floor 25, P.J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai — 400 001 Mumbai — 400051. Security Code: 532630 Symbol: GOKEX Dear Sir, Sub: Intimation of
Slide 2: Gokaldas Exports Ltd. - No Limits!
gokaldas exports ltd. No Limits!
Slide 3: About Gokaldas Exports
About Gokaldas Exports
Slide 4: We are a leading apparel manufacturer in India
We are a leading apparel manufacturer in India Gokaldas Exports Limited is a leading apparel manufacturer, engaged in design, manufacture and export of a wide range of apparel products ranging from outerwear, activewear and fashion wear for all seasons Fully integrated Catering to brands in Strong w
Slide 5: A well integrated in-house capabilities
A well integrated in-house capabilities Design Studio with 3D In-house Testing Lab Robust Product Polyfill manufacturing using capability Accredited by GAP, Adidas, Development and latest technology. Puma. Sampling Quilting with a capacity to set-up quilt over 10,000 meters/day Modern Printing set u
Slide 6: Across the entire apparel manufacturing value chain
Across the entire apparel manufacturing value chain DESIGN DEVELOPMENT CUTTING PRINTING SEWING QUILTING POLYFILL EMBROIDERY LASER WASHING FINISHING AND TREATMENT LOGISTICS 4
Slide 7: Our state-of-the-art manufacturing capabilities
Our state-of-the-art manufacturing capabilities CUTTING MACHINE HOT AIR SEAM SEALING MACHINE HYDROSTATIC TESTER POLYFILL MACHINES SEWING MACHINES KNITS MACHINES WASHING MACHINE DRYER 5
Slide 8: Our units are certified to international standards
Our units are certified to international standards For environmental and social compliance We take compliance seriously. Water consumption, discharge of hazardous chemicals, human and worker rights, greenhouse gas emissions, waste production are all controllable. We are working with our customers in
Slide 9: Apparel Industry Landscape
Apparel Industry Landscape
Slide 10: Apparel dominates the global textiles business
Apparel dominates the global textiles business With China leading the world in apparel export with 29% share Major Apparel Importing countries Global Textile trade EU-27 28% USA 41% Japan Fibre 10% UK 6% Yarn 6% Others 6% Fabrics 19% 55% Home Textiles Others 19% Major Apparel Exporting Countries App
Slide 11: Apparel dominates India's textiles exports
Apparel dominates India’s textiles exports Exports to United States has been growing over the years Indian Textile Exports share Indian Apparel Exports Figures in US$ Billion 6% Geography FY19 FY20 FY21 Fibre EU 6.2 5.7 4.4 13% Yarn N. America 4.5 4.6 3.5 UAE 2.0 1.5 1.6 Fabrics 42% Others 3.4 3.7 2
Slide 12: Significant opportunity for India to pick up share in apparel trade
Significant opportunity for India to pick up share in apparel trade OPPORTUNITIES CHALLENGES ▪ Supply chain • Buyers looking for alternate production base outside China ▪ Recent FTA’s might increase competition for India. due to wage increase and shortage of workers and avoid the • Vietnam’s FTA wit
Slide 13: Our Transformation Journey
Our Transformation Journey 2018 onwards
Slide 14: Our transformation was predicated on four major thrust areas
Our transformation was predicated on four major thrust areas STRONG OPERATIONAL UNLOCKING UPGRADING CUSTOMER EXCELLENCE CAPACITY BUSINESS ENGAGEMENT COST INFRASTRUCTURE EFFECTIVELY 12
Slide 15: Strong customer engagement (1/6)
Strong customer engagement (1/6) Beginning the transformation journey With continuous engagement and rigorous execution, we regained the confidence of our customers for a sustainable growth Reached out to Valuable inputs Focused on all existing and from each execution across Regained the new custome
Slide 16: Strong customer engagement (2/6)
Strong customer engagement (2/6) Improved relationship and gained wallet share Long Standing Relations with Marquee Global Brands Wallet Share of Top Customers (in %) (in % of Revenue FY2021) 58 14% 38% 48% 52 53 FY19 FY20 FY21 10+ years 5-10 years <5 years Not only have we successfully served our c
Slide 17: Strong customer engagement (3/6)
Strong customer engagement (3/6) Execution excellence for superior service metrics. Brought in new customers Superior Track Record of Serving Clients (OTIF in %) Revenue Contributions from Customer added in last 4 years (in %) 13.1 96.0 95.0 99.0 3.9 8.7 FY19 FY20 FY21 FY19 FY20 FY21 OTIF dropped ma
Slide 18: Strong customer engagement (4/6)
Strong customer engagement (4/6) Improved share of revenue from high margin customers Growth in Valued Customers Value / Volume Customer Level (in %) FY19 FY20 FY21 15 50 16 51 28 63 Increase in revenue contribution from high value high margins products over the years. 85 50 84 49 72 37 Customer Cou
Slide 19: Strong customer engagement (5/6)
Strong customer engagement (5/6) Steadily improved realisation per piece by focusing on high value products Number of pieces Shipped and realization per piece Product Category Sales (in %) 17 10 14 7 6 18 11 596 515 463 30 32 38 43 39 36 23.4 24.9 19.2 FY19 FY20 FY21 FY19 FY20 FY21 Casualwear Outerw
Slide 20: Strong customer engagement (6/6)
Strong customer engagement (6/6) Consciously focused on increasing share of US business for profitability NORTH AMERICA EUROPE ASIA In % In % In % 70.38 19.77 59.13 62.01 21.84 24.19 17.90 12.65 9.06 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 SOUTH AMERICA OCEANIA AFRICA In % In % In % 0.09 0.40 0
Slide 21: Operational excellence (1/2)
Operational excellence (1/2) Leveraged people and process for performance improvement Brought in specialised resources for specific functions with exposure to global customers and markets Resulted in Key functions like New functional Created an improved product development, leadership and empowered
Slide 22: Operational excellence (2/2)
Operational excellence (2/2) Improved supply chain efficiency Supply Chain Efficiency (in %) Order to Ship (in %) 85.5 99.0 77.7 81.2 99.0 99.7 FY19 FY20 FY21 FY19 FY20 FY21 # Dropped due to cancellation of orders by customers owing to COVID Ontime release of raw material sourced from various suppli
Slide 23: Upgrading business infrastructure
Upgrading business infrastructure Modernized business systems for sustainable performance ▪ Invested in modernisation of machinery to meet global standards of productivity. Capital Expenditure ( ₹ in Lakhs ) ▪ Upgraded health and safety related facility and equipment to enhance compliance standards.
Slide 24: Covid was an opportunity to consolidate the supplier base
Covid was an opportunity to consolidate the supplier base And an opportunity to leap ahead YOY FY21 We gradually increased capacity utilisation US Retail US Imports -9% April 2020 15% India Exports 50% May 2020 GE Exports -20% -21% -22% June 2020 75% September 2020 80% The company’s export growth ha
Slide 25: Infused funds and managed finances well
Infused funds and managed finances well Raised ₹100 Cr. through QIP and sale of unused property in FY2019 A sustainable improvement of our financial metrics over the years EBITDA EBITDA MARGINS INTEREST COVERAGE RATIO ₹ in Lakhs In % In times 11,370 9.3 1.77 10,209 8,348 1.76 1.83 7.0 7.4 FY19 FY20
Slide 26: Summarised Profit and Loss Statement
Summarised Profit and Loss Statement ₹ i n L a k h s , e xc e p t s t a t e d o t h e r wi s e KEY PERFORMANCE METRICS FY19 FY20 FY21 Revenue from operations 1,17,451.91 1,37,094.85 1,21,072.73 Other Income 2,167.71 1,627.77 1,220.96 Total Income 1,19,619.62 1,38,722.62 1,22,293.69 EBITDA 8,347.77 1
Slide 27: Consolidated Balance Sheet (1/2)
Consolidated Balance Sheet (1/2) ₹ i n L a k h s , e xc e p t s t a t e d o t h e r wi s e As at As at As at March 31, 2019 March 31, 2020 March 31, 2021 I. ASSETS (1) Non- current assets (a) Property, plant and equipment 10,553.92 12,713.18 12,531.40 (b) Right of use asset - 4,308.06 11,016.15 (c)
Slide 28: Consolidated Balance Sheet (2/2)
Consolidated Balance Sheet (2/2) ₹ i n L a k h s , e xc e p t s t a t e d o t h e r wi s e As at As at As at March 31, 2019 March 31, 2020 March 31, 2021 II. EQUITY AND LIABILTIES (1) Equity (a) Equity share capital 2,140.78 2,141.28 2,144.78 (b) Other equity 21,897.49 20,520.05 26,861.99 Total equi
Slide 29: Q1 FY22, Profit and Loss Statement
Q1 FY22, Profit and Loss Statement ₹ i n L a k h s , e xc e p t s t a t e d o t h e r wi s e KEY PERFO RM ANC E M ET RICS Q 1FY 22 Revenue from operations 24,096.66 REVENUE The company had a robust orderbook and Other Income 202.07 factories were working at full capacity. Stringent lockdowns in May
Slide 30: Our Value Proposition
Our Value Proposition
Slide 31: The Gokaldas Advantage
The Gokaldas Advantage Diversified across geographies, products and clients Leading Apparel Manufacturer and vendor of value- added garments to Marquee Global Brands Fully integrated manufacturing operations (also ability to offer design services) Long standing relationships with eminent global bran
Slide 32: Outlook
Outlook Indian textile exports is on the threshold of a strong growth. Retail stores and ecommerce demand in key markets like US and EU are boisterous. Consequently, apparel imports from these regions are growing. With China’s export share on a decline, particularly to the US market, the opportunity
Slide 33: Disclaimer
Disclaimer This presentation and the accompanying slides have been prepared by and are the sole responsibility of the Gokaldas Exports Limited (“Company”). This presentation contains selected information about the activities of the Company as at the date of this presentation, unless otherwise specif
Slide 34: Thank you
Thank you « —_ i _ @ = Je a | ‘,
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