Nandan Denim Limited · NSE:NDL
Nandan Denim — H1 FY19 Earnings Presentation
29 slides from Nandan Denim's earnings presentation, Nov 6, 2018
Slide 1: Nandan Denim – Submission of Investor Presentation
V Nandan One world with denim 6th November, 2018 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, G — Block, Dalal Street, BKC, Bandra (East), Mumbai—400 001. Mumbai—400 051. Scrip Code: 532641 Scrip Symbol: NDL Dear Sir, Subject:
Slide 2: Q2 & H1 FY19 Results Update
Q2 & H1 FY19 RESULTS UPDATE OCTOBER 2018 NANDAN DENIM LIMITED
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation and the following discussion may contain “forward looking statements” by Nandan Denim Limited (“Nandan Denim”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financia
Slide 4: Discussion Summary
DISCUSSION SUMMARY Q2 & H1 FY19 Results About Us Industry Overview Annexure
Slide 5: Q2 & H1 FY19 Results Update
yw Nandan One world with denim Q2 & H1 FY19 RESULTS UPDATE SSCHIRIPAL
Slide 6: H1 FY19 Results – Financial Highlights
H1 FY19 Results – Financial Highlights In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN 31.9% 30.0% 14.8% 10.7% 8,387 1,245 7,276 779 H1 FY18 H1 FY19 H1 FY18 H1 FY19 PBT & PBT MARGIN PAT & PAT MARGIN 4.5% 3.8% 1.8% 2.7% 377 322 198 132 H1 FY18 H1 FY19 H1 FY18 H1 FY19 5
Slide 7: H1 FY19 Results – Revenue Mix
H1 FY19 Results – Revenue Mix In Rs Mn REVENUE BREAKUP – DOMESTIC Vs. EXPORTS REVENUE BREAKUP – PRODUCT WISE 6% 543 27% 2,248 8% 608 5% 428 36% 2,634 7% 504 94% 7,844 92% 6,694 5,711 68% 57% 4,164 H1 FY18 H1 FY19 H1 FY18 H1 FY19 Exports Domestic Denim Shirting Yarn, Power & Others 6
Slide 8: H1 FY19 Performance Highlights
H1 FY19 Performance Highlights ▪ During H1 FY18, Nandan Denim has reported an operating revenue of Rs. 7,276 Mn Vs Rs. 8,387 Mn in corresponding period of previous financial year. ▪ Denim capacity utilisation for H1 FY19 stood at 61% in line with industry and realisation at Rs 122/meter. ▪ H1 FY19,
Slide 9: Q2 FY19 Results – Financial Highlights
Q2 FY19 Results – Financial Highlights In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN 32.1% 27.2% 15.3% 8.4% 4,150 637 3,706 313 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 PBT & PBT MARGIN PAT & PAT MARGIN 4.7% 3.8% 3.9% 2.1% 194 161 142 79 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 8
Slide 10: Q2 FY19 Results – Revenue Mix
Q2 FY19 Results – Revenue Mix In Rs Mn REVENUE BREAKUP – DOMESTIC Vs. EXPORTS REVENUE BREAKUP – PRODUCT WISE 7% 277 9% 326 27% 1,141 6% 226 40% 1,492 93% 3,873 6% 218 92% 3,379 67% 2,783 54% 1,996 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Exports Domestic Denim Shirting Yarn, Power & Others 9
Slide 11: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. in Mn) Q2 FY19 Q2 FY18 YoY% H1 FY19 H1 FY18 YoY% Revenue from Operations 3,705.5 4,149.8 -10.7% 7,276.1 8,386.8 -13.2% COGS 2,698.9 2,818.0 -4.2% 5,094.6 5,713.5 -10.8% Gross Profit 1,006.6 1,331.8 -24.4% 2,181.5 2,673.2 -18.4% Gross Margin % 27.
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in Mn.) Sep-18 Mar-18 Particulars (Rs. in Mn.) Sep-18 Mar-18 Equity & Liabilities Assets Shareholder's Funds 4,831.8 4747.9 Non-Current Assets 6,886.6 7416.9 Share Capital 480.5 480.5 Fixed Assets 6,772.1 7362.6 Reserves & Surplus 4,351.3 4267.4 Capital WI
Slide 13: About Us
yw Nandan One world with denim (2) ABOUT US SSCHIRIPAL
Slide 14: About Us: Chiripal Group – Emerging Conglomerate
About Us: Chiripal Group – Emerging Conglomerate BUSINESS DIVISION GROUP COMPANIES DETAILS Nandan Denim Ltd. Chiripal Industries Ltd. ▪ Fully integrated facilities for manufacturing range of products viz. woven fabrics, circular Textiles (Processing Division) knitted fabrics, polar fleece fabrics, c
Slide 15: About Us: Company Overview
About Us: Company Overview ▪ Nandan Denim Limited is a part of a leading conglomerate, Chiripal Group, which was established in 1972 and is currently diversified across several businesses like Textiles, Chemicals, Packaging, Infrastructure and Education. STRONG ▪ Nandan Denim commenced its operation
Slide 16: About Us: Integrated Denim Fabric Facility
About Us: Integrated Denim Fabric Facility FIBRE YARN FABRIC Ginned Cotton Spinning Weaving & Processing 70% of cotton requirement Denim – 110 MMPA Spinning Capacity – 141 TPD is met from Gujarat Shirting – 10 MMPA KEY HIGHLIGHTS ▪ One of the largest denim fabric facility in the world and largest in
Slide 17: About Us: Strategic Location Of Manufacturing Facilities
About Us: Strategic Location Of Manufacturing Facilities THE GUJARAT ADVANTAGE GUJARAT TEXTILE HUB OF INDIA SUPERIOR CONNECTIVITY ▪ Located in Ahmedabad, the financial ▪ Largest producer of denim fabric (65- capital of Gujarat. 70%) in India and third largest in the ▪ Superior infrastructure connect
Slide 18: About Us: Leveraging The Chiripal Group Eco-System
About Us: Leveraging The Chiripal Group Eco-System LEVERAGE CHIRIPAL GROUP ECO-SYSTEM Chiripal Industries Chiripal Chiripal Vishal Fabrics Nandan (Processing) Industries Polyfilms Shirting, Synthetic, Denim wovens, knitted, polar (Petrochemical) Thermal Films, Botton Weight, Denim fabric, fleece, fl
Slide 19: About Us: Leveraging The Chiripal Group Eco-System
About Us: Leveraging The Chiripal Group Eco-System MARKETING & DISTRIBUTION – DOMESTIC MARKETS MARKETING & DISTRIBUTION – EXPORTS MARKETS ▪ Leveraging the strong agent-based domestic network ▪ Leveraging the strong agent-based global network of of the Chiripal group. the Chiripal group. ▪ Strong pan
Slide 20: About Us: Building Global Presence
About Us: Building Global Presence TURKEY DUBAI UZBEKISTAN INDIA CHINA GREECE SOUTH KOREA PORTUGAL USA BANGLADESH HONG KONG HONDURAS MOROCCO THAILAND COLOMBIA EGYPT PHILIPPINES GUATEMALA INDONESIA PANAMA SRILANKA AUSTRALIA LESOTHO PERU MADAGASCAR SOUTH AFRICA VENEZUELA CHILE Nandan Denim exports its
Slide 21: About Us: Acceptance From Leading Brands
About Us: Acceptance From Leading Brands DOMESTIC BRANDS 20
Slide 22: About Us: Acceptance From Leading Brands
About Us: Acceptance From Leading Brands GLOBAL BRANDS 21
Slide 23: About Us: Capacity
About Us: Capacity Capacity FY16 FY17* FY18 Spinning (TPD) 70 141 141 Yarn Dyeing (TPD) 10 10 10 Fabric (MMPA) Denim 99 110 110 Shirting 10 10 10 *Capacity expansion completed in December 2016 22
Slide 24: Industry Overview
yw Nandan One world with denim INDUSTRY OVERVIEW SSCHIRIPAL
Slide 25: Industry Overview
Industry Overview • The global denim fabric market is around USD 17 bn, Asia LOWEST PER CAPITA DENIM JEANS accounts for ~70% of global denim fabric production. COSUMPTION IN THE WORLD • The Indian denim wear market is estimated at Rs. 23,076 cr US 9 in 2017 and it is projected to grow at robust 12.7
Slide 26: Annexure
yw Nandan One world with denim (4) ANNEXURE SSCHIRIPAL
Slide 27: Financial Summary
Financial Summary REVENUES (RS MN) EBITDA (RS MN) PAT (RS MN) 15,889 2,600 2,258 12,204 1,911 1,868 633 10,965 11,567 1,654 567 2,100 1,600 514 467 7,276 1,100 779 600 132 100 FY15 FY16 FY17 FY18 H1 FY19 (400) FY15 FY16 FY17 FY18 H1 FY19 FY15 FY16 FY17 FY18 H1 FY19 MARGIN ANALYSIS (%) LEVERAGE ANALY
Slide 28: Operational Summary
Operational Summary REVENUE BREAKUP – DOMESTIC Vs. EXPORTS REVENUE BREAKUP – PRODUCT WISE 82.1% 81.2% 84.0% 135.3 74.0% 132.7 131.6 132.2 61.0% 122.0 110 110 110 78.0 99 99 76.8 76.5 70.8 34.1 FY15 FY16 FY17 FY18 H1 FY19 FY15 FY16 FY17 FY18 H1 FY19 Denim Sales (Metres) Realisations Capacity Capacity
Slide 29: Thank You
THANK YOU Mr. Ashok Bothra (CFO) Mr. Mitul Bhagat / Mr. Arun Prakash Email: ab@chiripalgroup.com IR Consultant Ms. Purvee Roy (CS) Email: mitul.bhagat@dickensonir.com Email:purvee@chiripalgroup.com arun.prakash@dickensonir.com Contact No: +91 8898214083 / 9920993892