Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2014 Earnings Presentation
32 slides from Sutlej Textiles & Industries's earnings presentation, May 13, 2014
Slide 1: Q4 & FY14 Results Presentation - May 13, 2014
Q4 & FY14 Results Presentation - May 13, 2014
Slide 2: Forward-looking statements disclaimer
Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially fr
Slide 3: Agenda
Company Overview 4 Track Record – Financial and Operational 16 Q4 & FY14 – Performance Update 21 Outlook 27 About Us 31 3
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: Delivering robust growth on a sustainable basis
Spun Dyed Total Capacity Total Capacity Total Capacity Yarn Manufacturer (Spindles) (Looms) (Rotors) No. of Spindles added No. of (Last Decade) Employees Last 4 years Last 4 Years Last 4 Years Revenue Growth EBITDA Growth PAT Growth “Delivering robust growth on a sustainable basis” 5
Slide 6: Company snapshot and marquee clients
• One stop shop for all types of yarn • Focus on Value added yarns – Spun Dyed Yarn, Cotton Mélange Sutlej Textiles and Industries Ltd (STIL) is India’s Product Mix • Diversified offerings with presence largest Spun Dyed Yarn manufacturer and across value chain with – Yarns, Fabrics & Home textile f
Slide 7: FY14 segment wise revenue
YARNS FABRICS HOME TEXTILES FY14 - Segment wise Revenue (%) Fabrics & Home Textiles 6% Yarns 94% 7
Slide 8: Manufacturing units
Manufacturing units • Focused player in Niche product segment – 1 Leading player in specialty / value added yarns Chenab Textile Mills Rajasthan Textile Mills 2• India’s largest spun dyed yarn manufacturer Kathua Bhawani Mandi (Jammu & Kashmir) (Rajasthan) 3• Amongst few manufacturers capable of pro
Slide 9: Home Textiles and Fabrics
Manufacturing unit 1• Diversified Portfolio - Progressed up the value chain by entering the segment in Home Textiles 2006 Damanganga Home Textile Damanganga Fabrics Daheli Gujarat Daheli Gujarat 2• Producer of wide array of furnishing fabrics & made-ups 3• Segment expansion through tie-ups with Prod
Slide 10: Sourcing, manufacturing and order booking efficiencies
Multiple Raw Material inputs – efficiently manage input volatility Sourcing Innovative R&D in sourcing Raw Materials – facilitates raw material substitutes Raw Material leading to lower volatility in input costs Efficiencies Procurement management – sourcing from reputed manufacturers resulting in l
Slide 11: Total Capacity
Chenab Textile Mills Rajasthan Textile Mills Location: Kathua, J&K Location: Bhawani Mandi, Rajasthan Product: Cotton yarns & man-made Product: Cotton & man-made fibre fibre yarns yarns Capacity: 171,288 spindles Capacity: 90,448 spindles and 336 rotors Damanganga Fabrics Location: Daheli, Gujarat P
Slide 12: Presence across Yarn Value Chain
Presence One stop source for all types of yarn across Yarn Preferred choice for customers – offer customized products Value Chain Specialized Focused player – Specialty & Value added yarns Product Better than average sector realizations delivered through Value Added Yarns like Spun-Dyed Portfolio Ya
Slide 13: Key Growth Drivers
Sy Key Growth Drivers NICHE PRODUCT > BASKET HIGHLY STRATEGICALLY AUTOMATED LOCATED MFG, PRODUCTION FACILITIES LINE 4 v RAMPING UP OF CAPACITIES STRONG & . CONTINUOUS R&D OPTIMUM & BALANCE SHEET EFFICIENT RESOURCE < UTILIZATION sulle
Slide 14: Investment in R&D
1• Consistent investment in R&D – STIL has steadily Investment in R&D (Rs. crore) increased its investment in R&D 4.07 2• The Company development and design centers are well equipped with latest technological equipment's like Evenness Testers, HVI Spectrum, Tenso Jet-4, AFISPRO LMNT, Yarn Classimate
Slide 15: Board of Directors and Key Executives
Board Of Directors: Mr. C.S. Nopany Chairman 1• Professionally Managed Company – Mr. U.K. Khaitan Independent Non Exec Director Demarcation of ownership and Mr. Amit Dalal Independent Non Exec Director management Mr. Rajan Dalal Independent Non Exec Director Mr. Rajiv K. Podar Independent Non Exec D
Slide 16: Track Record - Financial & Operational
TDACW DECODN TRACK RECORD - FINANCIAL & OPERATIONAL
Slide 17: Delivering resilient and sustainable growth
Revenues (Rs. cr) EBITDA (Rs. cr) 1,881 1,680 EBITDA Margin 1,582 1,537 400 17% 20% 16% 1,147 13% 14% 300 12% 15% 306 200 275 10% 234 154 178 100 5% 0 0% 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 PAT (Rs. cr) EPS* (Rs.) PAT Margin 80 150 7% 7% 8% 70 5% 131 6% 47
Slide 18: Delivering maximum returns at minimal risk
ROE (%) ROCE (%) D/E ratio 26 28 23 3.5 46 18 28 15 1.9 22 1.5 12 1.0 0.6 18 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Delivering maximum returns at minimal risk Avg. rate of Term loans % Gross Block (Rs. cr) BVPS* (Rs.) (
Slide 19: Yarns and Fabrics sales and realisation
Yarns Fabrics Sales (MT) Sales (‘000 Mtrs.) 5,497 6,042 5,337 78,124 79,666 4,906 5,089 76,334 71,973 72,346 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 Avg. Yarn realisation (Rs/Kg) Avg. Fabric realisation (Rs/Mtr) 109 116 119 200 207 222 87 98 147 186 2009-10 20
Slide 20: Niryat Shree export awards
Niryat Shree - Gold trophy : For export performance in FY 2009-10 Gold trophy by SRTEPC: Best performance for export of fabrics to focused Latin American countries Silver trophy by SRTEPC: Second Best export performance in spun yarn category 20
Slide 21: Q4 & FY14 - Performance Update
Q4 & FY14 - Performance Update
Slide 22: Strong Operational and Financial Performance
Strong Operational and Financial Performance • Highest ever annual financial performance delivered by the Company • Margin progression on the back of improved spindle efficiency, cost optimization & healthier realisation • Improved volumes, better product mix and increased sales realisation resulted
Slide 23: Improved Credit Rating
Improved Credit Rating • Credit rating enhancement is testament to the Company’s improving financial and operational performance • The Company’s liquidity position remained comfortable led by improving working capital cycle and strong free cash flow India Ratings & Research (IND-Ra) • Long - Term Is
Slide 24: Q4 and FY14 income statement
24 (Rs. in crore) Growth Growth Particulars Q4 FY14 Q4 FY13 FY14 FY13 % % Net Revenues 482 432 11.6 1,881 1,680 12.0 Total Expenditure 412 372 10.8 1,575 1,446 8.9 - Material Consumed 251 243 3.3 1,003 948 5.8 - Other Costs & Expenses (Net) 161 129 24.8 572 498 14.9 EBITDA 70 60 16.7 306 234 30.8 EB
Slide 25: Revenue, EBITDA and PAT performance
Revenue EBITDA 1,881 1,680 306 Figs in crore Figs in crore 234 432 482 60 70 Q4 FY13 Q4 FY14 FY13 FY14 Q4 FY13 Q4 FY14 FY13 FY14 PAT In FY14, revenue expanded by 12.0% on account of better offtake of high margin products and improved 131 realisation. Better mix of value-added products improved per
Slide 26: Chairman's comments on the results
Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said “During the just concluded financial year we witnessed an overall improvement in Sutlej’s operations. Profitability was buoyed mainly as a result of optimal spindle utilization, thrust on value added produc
Slide 27: Outlook
OUTLOOK
Slide 28: Pillar of Growth
On a global front, the Indian Textile Industry is the second largest producer of textiles and plays a pivotal role in the growth of the Indian economy. As it accounts for - Pillar of • ~4.5% share in the world total exports Growth • ~4% of GDP • ~11% of Country’s export earnings • ~14% of Industrial
Slide 29: Planned Capacity expansion
Planned Expect profitability to improve significantly post commissioning of Capacity the capacities under value added cotton mélange segment expansion Domestic Increasing brand consciousness and higher disposable income market augurs well for the sector Export Revival in the developed economies of U
Slide 30: Strong financial performance drivers
Improved Profitability – Value-Added Higher ROE – One of products the highest in the industry Strong Cash Faster growth in assets with Flows Generation higher ROCE Margins sustainability with greater scale Prudent Working Capital Strong financial Management performance Cash balance for growth, healt
Slide 31: About Sutlej Textiles and contact
Sutlej Textiles and Industries Ltd (STIL): Sutlej Textiles and Industries Ltd (STIL) was incorporated in 2005 out of a corporate restructuring exercise wherein the textile divisions of Sutlej Industries Ltd and Damanganga Processors Ltd were demerged to create a single cohesive Company. STIL an ISO
Slide 32: Thank You
THANK YOU D = ap)
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