Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Investor Presentation (August 2023)
46 slides from Pearl Global Industries's investor presentation, Aug 11, 2023
Slide 1: Investor Presentation 2023-24
Pearl Global Industries Limited Investor Presentation 2023-24 1
Slide 2: Safe Harbour
Safe Harbour This presentation has been prepared by and is the sole responsibility of Pearl Global Industries 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 invitat
Slide 3: Q1FY24 Highlights
PEARL GLOBAL Excooding Expectations. Always headlines! aah Wa Q1FY24 Highlights
Slide 4: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “We are elated to report the highest ever first quarter revenue in Q1FY24 since inception. The global macro-environment continues to be a challenge. However, despite a sluggish macro
Slide 5: Business Highlights Q1FY24
Business Highlights Q1FY24 Revenue EBITDA Margin 5% YoY 9.3% +140 bps YoY Rs. 894.2 CRS EBITDA Margins improved by 140 bps to 9.3% in Q1FY24 from 7.9% in Q1FY23 due to: Highest ever Quarter 1 revenue since inception on account of: • Improved product mix and consistently improving profitability in •
Slide 6: Highest Ever Consolidated Group Performance
Highest Ever Consolidated Group Performance INR CRS. Revenue EBITDA +24.4% +5.1% COVID-19 Impact 9.3% 894.2 7.9% COVID-19 Impact 851.1 4.2% 4.2% 67.1 83.5 436.2 380.8 16.2 18.2 155.3 -7.2% -11.1 Q1FY20 Q1FY21 Q1FY22 Q1FY23 Q1FY24 Q1FY20 Q1FY21 Q1FY22 Q1FY23 Q1FY24 EBITDA EBITDA Margin(%) Adj PBT* PA
Slide 7: Consolidated Performance Highlights Q1FY24
Consolidated Performance Highlights Q1FY24 Geographical Revenue Split No. Of Pieces Shipped (Mn pieces) Product wise Split 3,158 2,714 15.3 1,104 934 12.4 58% 59% 55% 1,685 63% 73% 1,491 825 771 2,055 894 1,780 258 42% 41% 45% 860 37% 720 637 27% FY20 FY21 FY22 FY23 Q1FY24 Q1FY23 Q1FY24 FY20 FY21 FY
Slide 8: Consolidated Profit and Loss Statement - Q1FY24
Consolidated Profit and Loss Statement - Q1FY24 Profit and Loss (INR CRS.) Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q FY23 Revenue from Operations 894.2 851.1 5.1% 730.0 23% 3158.4 Cost of Goods Sold 452.7 473.8 356.4 1629.5 Q1FY24 Revenue increased by 5.1% YoY: Gross Profit 441.5 377.3 17.0% 373.6 18% 1,5
Slide 9: Standalone Profit and Loss Statement – Q1FY24
Standalone Profit and Loss Statement – Q1FY24 Profit and Loss (INR CRS.) Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q FY23 Revenue from Operations 257.5 327.9 -21.5% 274.6 -6.2% 1103.8 Cost of Goods Sold 118.3 179.3 129.2 541.9 Gross Profit 139.2 148.6 -6.3% 145.4 -4.2% 561.9 Gross Profit Margin 54.1% 45.3%
Slide 10: Company Overview
= PEARL GLOBAL PEARL GLOBAL ssa Pntone ay Exceeding Expectations. Always Designs that make headlines! : Se Company Overview
Slide 11: About Us
About Us Incorporation: Multi-National Presence : Founded in 1987, Pearl Global is a leading apparel Across 8 countries such as India, Indonesia, manufacturer offering end-to-end sustainable Bangladesh, Vietnam, USA, Spain, Hong Kong solutions to the fashion industry and U.K. Robust Design Team: Div
Slide 12: What We Do
What We Do C Customized Solutions: The biggest pillar for our operations is providing customized solutions as per your need Strong Analytics: Facts driven analytics help us drive insights and conclusion for projects Infrastructure: State-of-the art renewable technology has been installed in all fact
Slide 13: Our Journey
Our Journey • Established import and • 2014: Incorporation of • 1987: Pearl Global Commencement of Acquisition of Alpha distribution in the U.S.A. Pearl Bangalore started operations Prudent, Bangladesh unit in BD and U.K. • 2016: Commencement of • 1998: Established • Establishment of Norp 1 in opera
Slide 14: Our Vision, Mission & Goal
Our Vision, Mission & Goal Vision Mission Goal To be the Global Leader To continuously exceed To innovate the way Fashion is providing end-to-end supply customer and shareholder created across the Globe chain solutions to the fashion expectations by strategically industry driving sustainability, tec
Slide 15: Product Profile
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Slide 16: Product Portfolio Across Categories
Product Portfolio Across Categories Gender wise Split Woven Knits Dress, Tops, Top, Shirt, Long Shirt, Dress Skirts, Sweater ,T Shirt, Women Sleepwear, Huddie, legging Jogger Shirt, Sleepwear, T Shirts, Hoodies Men Pyjama, Polo Tshirt Boys Shirts T Shirt, 2 Pc Set PRODUCT WISE SPLIT (Mn Pieces)* T S
Slide 17: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 18: Global Presence Across 8 Countries
Global Presence Across 8 Countries UNITED KINGDOM SPAIN USA (NEW YORK) DESIGN & SALES ACROSS BANGLADESH HONG KONG 8 COUNTRIES GUATEMALA MANUFACTURING SET UP ACROSS 4 VIETNAM COUNTRIES INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA 18
Slide 19: Manufacturing Facilities
Manufacturing Facilities Capacity Location No of Units Utilization % Annual Capacity as on Specialization Revenue % FY23 (Blended) FY23 In-House Partnership 16.0% Woven and Knit products including women’s fashion wear, men’s wear and India 7 - 88% 24.6 mn pieces p.a. kid’s wear. South factories make
Slide 20: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 20
Slide 21: Management Team
= PEARL GLOBAL PEARL GLOBAL ssa Pntone ay Exceeding Expectations. Always Designs that make the headlines! Management Team
Slide 22: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 22
Slide 23: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 23
Slide 24: Core Team
Core Team Sanjay Sarkar Rajesh Ajwani Dr. Mahesh Seth Pankaj Bhasin Sundeep Chatrath Gurusankar Gurumoorthy Country Director - Bangladesh Commissioner Indonesia Vice President – US CEO- Woven India CEO-Knits India CEO-Vietnam Operations Vikas Mehra Jeff Kreindel David Ayala Jo Hales CEO-Bangladesh E
Slide 25: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 26: Key Takeaways
Key Takeaways USA EU UK Japan • In May 2023, US apparel • EU apparel imports in May • UK apparel imports in May • In April 2023, Japan’s imports were US $ 6.5 Bn. 2023 has decreased by 22% 2023 were US$ 1.6 Bn. apparel imports were US$ which is 23% lower than in compared to May 2022 and which is 24%
Slide 27: China +1 provides huge opportunity for Textiles and Apparel Players
China +1 provides huge opportunity for Textiles and Apparel Players With the improvement in Covid-19 and geopolitical situations domestic economy and have led to redistribution of global increase in exports, trade shares and recalibration of Domestic Production is sourcing partners expected to incre
Slide 28: Government Initiatives
Government Initiatives 1 PLI Scheme • Scheme was approved with a total outlay of Rs 107bn • Likely to provide incentives,~3-11% on incremental revenue yoy for 5 years on greenfield as well as brownfield investments PM MITRA Scheme 2 • Under the scheme, 7 mega parks will be set up in the country over
Slide 29: Our Unique Propositions
Our Unique Propositions Multinational Presence Robust Design Team Shift Towards Asset Light Model Strong Customer Relationship • 21 manufacturing facilities • Fashion trend analysis by • Partnership model to drive spread across 4 countries. talented design personnel next leg of growth • Long term re
Slide 30: Global Competitive Advantage
Global Competitive Advantage Multinational Presence Diversified Product Offering Robust Design Team • Present in each country for >10 years • Close proximity to customer • Specialised products in each country • Gives an edge to leverage • Strengthens relationship and gives • Provides leveraging oppo
Slide 31: Synergies From Partnership Model
Synergies From Partnership Model Pearl Global Partner Synergies • Working capital investment • Capex and Labour expenses Faster Turnaround Time • Designing • Design sharing with the • Appoints Industrial Engineer buyer Capacities in proximity to • Responsible for optimum • Contract on per piece basi
Slide 32: Robust Risk Mitigation Practices
Robust Risk Mitigation Practices Social & Ethical Customer Product Raw Material Currency Cashflow Compliance Retention & Growth Quality Prices and Supply Chain Fluctuation Non-Compliance Debt Repayment & servicing o Direct Relationship with o Quality systems & o Early projection and o Natural hedge
Slide 33: Way Forward and Strategy For Growth
Way Forward and Strategy For Growth New Customer Optimum Utilization Of Acquisition Existing Facilities Growth Through Geographical Partnership Facilities Expansion Automation Of PLI Scheme To Act As Facilities A Growth Engine 33
Slide 34: Financial Highlights
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Slide 35: Consolidated Profit And Loss Statement
Consolidated Profit And Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 3,158.4 2,713.5 1,490.9 1,685.1 1,757.5 Cost of Goods Sold 1,629.5 1,510.6 768.9 808.3 873.3 Gross Profit 1,528.9 1,202.9 722.0 876.8 884.2 Gross Profit Margin 48.4% 44.3% 48.4% 52.0% 5
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 619.5 533.9 533.2 543.1 434.6 Total Equity 742.8 614.9 530.2 513.6 481.4 Property Plant & Equipment 288.2 258.2 213.8 221.9 243.6 Sh
Slide 37: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 175.8 85.8 11.4 31.2 82.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 67.8 76.2 61.3 93.2 51.5 Operating profit before working capital changes 243.7 162.1 72.6 124.5 134.5 Changes
Slide 38: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 1103.8 933.8 771.4 825.3 840.3 Cost of Goods Sold 541.9 428.1 473.1 399.6 417.1 Gross Profit 561.9 505.7 298.3 425.7 423.2 Gross Profit Margin 50.9% 54.2% 38.7% 51.6% 50.4% Employee Cost
Slide 39: Standalone Balance Sheet
Standalone Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 364.9 344.8 360.6 377.8 347.2 Total Equity 380.9 343.5 313.8 305.9 316.2 Property Plant & Equipment 128.2 124.1 128.5 131.7 131.5 Shar
Slide 40: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 61.7 36.1 -9.2 10.9 31.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.8 29.5 42.3 33.7 20.5 Operating profit before working capital changes 62.5 65.6 33.1 44.6 52.4 Changes in worki
Slide 41: Sustainability
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Slide 42: Approach to Sustainability
Approach to Sustainability We believe in the Triple bottom approach : People, Planet and Profit Environmental sustainability forms one of the key pillar of our social responsibility. To attain the highest level of sustainability standards, we have the following measures in place to fulfil our respon
Slide 43: Sustainability Is An Integral Part Of Our Processes
Sustainability Is An Integral Part Of Our Processes Ongoing sustainable initiatives Ozone ECO FRIENDLY Eco Friendly Recycled Poly Stone, Longer Life Span Reduce Water Consumption Replacement Of Pumic Stone With No Residue Magic Box Environmental Impact Measurement Eco Friendly Software to monitor th
Slide 44: Protecting the Future
Protecting the Future We believe in the long-term preservation of our resources ✓ To create a circular economy by eliminating waste & utilizing resources 44
Slide 45: Awards
Awards 2006-2008 2008-2010 2010-2011 • 2006-07: Highest Export in woven • 2008-09: Highest Exports by Young • 2010-11: Highest Exports – Woven Entrepreneur -1st Position to Pulkit garments Seth Garments- Winner • 2007-08: Highest Export in woven • 2009-10: Highest Exports in Woven garments Graments-
Slide 46: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sanjay Gandhi - Group CFO Ms. Brinkle Shah Jariwala / Mr. Rahul Agarwal sanjay.gandhi@pearlglobal.com brinkle.shah@sgapl.net / rahul.agarwal@sgapl.net +91 9619385
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