Kitex Garments Limited · NSE:KITEX
Kitex Garments — Shareholder Meeting (August 2019)
26 slides from Kitex Garments's shareholder meeting presentation, Aug 28, 2019
Slide 1: Kitex Garments Limited – Letter to exchanges on AGM presentations
Kitex Garments Limited (L18101KL1992PLC006528) P. B. No. 5, Kizhakkambalam, Alwaye, Kochi, Kerala, 683562 Phone: 91 484 4142000, Fax: 91 484 2680604 Email: sect@kitexgarments.com website: www.kitexgarments.com Ref: KGL/SE/2019-20/AUG/09 August 28, 2019 The Secretary The Secretary BSE Limited Nationa
Slide 2: Investor Presentation – 27th Annual General Meeting
KITEX GARMENTS LIMITED 27th Annual General Meeting 28th August 2019 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Kitex Garments Limited (“Kitex” , “the Company”). These forward looking statements, which may relate to future results of operations, financial condition, client prospects, business environment, bus
Slide 4: Highlights of the year
Highlights of the year Revenue Net Worth EPS ₹ 629 Crores ₹ 591 Crores ₹ 12.22 EBITDA CAPEX Employees ₹ 161 Crores 28 Crores ₹ ₹ 4,326 PAT ROE Capacity ( Infant wear )* 81 Crores ₹ 13.8% 4.32 Lakhs ₹ • * Infant wear 3 • ROE is calculated on closing Equity
Slide 5: Contents
Contents 1 Result Update P05 2 Company Overview P11 3 Market Overview P17 4 Management Updates P21 5 Q1 performance FY2020 guidance P24 4
Slide 6: Results Update
1 Results Update 5
Slide 7: Your Company has markedly improved its financial performance in FY 19, outpacing the sector
Your Company has markedly improved its financial performance in FY 19, outpacing the sector Revenue (INR Crores) 629 566 548 560 525 456 321 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Revenue EBITDA (INR Crores) PAT (INR Crores) 250 36.4% 40.0% 120 25.0% 34.7% 31.5% 35.0% 19.8% 100 18.8% 200 16.9% 20
Slide 8: The Company managed to successfully address key concerns that affected performance in FY 18
The Company managed to successfully address key concerns that affected performance in FY 18 Business With Jockey The estimated INR 55 Crores of revenue loss in FY 18 has been arrested and compensated during the current year through increased orders from other existing customers Toys R Us Automation
Slide 9: A well capitalised, debt free Balance Sheet provides opportunities for further growth
A well capitalised, debt free Balance Sheet provides opportunities for further growth Capital Employed (INR Crores) 591 The balance sheet has sufficient room to 517 - absorb incremental debt to facilitate future 459 1 growth 376 3 291 Well capitalised balance sheet provides 8 resilience against
Slide 10: History of healthy dividend payments
History of healthy dividend payments 150% 150% 150% 150% 125% 100% 80% 60% 40% 30% 25% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Dividend yield on par value * Bonus shares in the ration of 2:5 have been issued in FY 18 9
Slide 11: Company Overview: What sets us apart
2 Company Overview: What sets us apart 10
Slide 12: Operational Advantages
Operational Advantages Sustainable Operations Kitex has grown over the years to be the second largest infant apparel Optimized consumption of fuel, energy and water: manufacturer in the word Advanced automated wood fired boiler The largest manufacturer within the Heat recovery and water re
Slide 13: Operational Advantages
Operational Advantages Product Safety Assurance of product safety with following practices and policies in place: Purchase of dyes and chemicals from approved list of international suppliers Strict small parts pull testing at production stage Stringent broken needle policy Metal detection sc
Slide 14: Key clients: Long standing, loyal client base
Key clients: Long standing, loyal client base. Increased focus on enhancing omnichannel distribution capability Key Brands Serviced Key Retail & Wholesale Clients 13
Slide 15: Global certifications have been reaffirmed and quality/safety standards consistently adhered to
Global certifications have been reaffirmed and quality /safety standards consistently adhered to Manufacturing performance Chemical and Product safety: Certified ‘Class I’ benchmarking: Adoption of Supplier for compliance to ‘Oeko-Tex Standard 100’ Qualification Program standards standards Safe, Law
Slide 16: Market Overview
3 Market Overview 15
Slide 17: Global infant wear market
Global infant wear market Global infant /baby wear market size : ~USD 67 billion A recent Technavio report quoted by KPMG estimates the global market for children’s wear to be USD 203 billion in 2019 An estimated 33% of this market is comprised of 33% infant/ baby wear translating into a market
Slide 18: The US children wear market
The US children wear market US children’s wear market (USD billion) In the US, birth rates have been stagnant over the 61 years. The U.S. Department of Health and Human 58 56 Services estimates that birth rates have fallen by 53 51 17 ~2% in 2018 compared to the previous year 16 17 15 16 However
Slide 19: Global headwinds/ opportunities
Global headwinds/ opportunities In August 2019,US President Trump announced enhanced tariffs of 15% Chinese exporters have been on USD 300bn of Chinese goods like the main competitors for our electronics and clothing (up from the products in the US. Tariffs on proposed 10% earlier) clothing woul
Slide 20: Management Updates
4 Management Updates 19
Slide 21: Enhanced management bandwidth
Enhanced management bandwidth MR. BOBY MICHAEL : CHIEF FINANCIAL OFFICER Mr. Boby Michael is a graduate in commerce and Chartered Accountant by profession He has vast knowledge and 32 years of experience in the field of accounting and auditing. He is also adept in Internal & External Financial r
Slide 22: The Company's professional and experienced management team
The Company’s professional and experienced management team is supported by external knowledge & assurance partners KPMG has been engaged as the strategic consultants and knowledge partners designing our long term Growth Strategy and handholding during it’s implementation BDO shall be reappointed as
Slide 23: FY 2020 Q1 performance, Full Year Guidance and Strategic Road Map
5 FY 2020 Q1 performance, Full Year Guidance and Strategic Road Map 22
Slide 24: Q1 performance and earnings guidance for FY 2020
Q1 performance and earnings guidance for FY 2020 Quarterly revenue (INR Crores) The Company experiences seasonality in sales and profitability due to the timing of holiday season and key retail shopping periods. Historically, this has resulted in sales and margins swings on a quarter on quarter ba
Slide 25: Growth Strategy: Vision 2025
Growth Strategy: Vision 2025 Addition of production capacity across the value chain: Enhanced revenue through: • Expansion of Knitting capacity from 25 tons • Promotion of own brand - Little Star to 85 tons • Promotion of licensed brand - Lamaze • Growth in private label business with • Expansion of
Slide 26: Thank you
Thank you Contact details: Mr. Boby Michael Kitex Garments Limited Chief Financial Officer Email: CFO@kitexgarments.com www.kitexgarments.com Mr. Surya Narayan Vice President – Corporate Strategy Email: vpcs@kitexgarments.com