Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY2020 Earnings Presentation
34 slides from Sutlej Textiles & Industries's earnings presentation, Aug 7, 2019
Slide 1: Cover letter to stock exchanges
SUTLEJ TEXTILES AND INDUSTRIES LIMITED sumo texti les and industries limited Lotus Corporate Park, 'E' Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai - 400 063, INDIA. Phone : (022) 4219 8800/6122 8989 Fax : (022) 4219 8830 E-mail : info@sutlejtextiles.com
Slide 2: Investor Presentation Q1 FY20 - Countering the VUCA World
Sutlej Textiles and Industries Limited Investor Presentation | Q1 FY20 August 2019 COUNTERING THE VUCA WORLD 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q1FY20 Results Highlights
Q1FY20 Results Highlights Consolidation continues… 3
Slide 5: Results Highlights (Consolidated) – Q1 FY20
Results Highlights (Consolidated) – Q1 FY20 Total Income (Rs Cr) EBITDA (Rs Cr) PBT (Rs Cr) 55 12 667 50 11 636 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Finance Cost (Rs Cr) & Avg Borr Cost %* Total Debt (Rs Cr)* (Total Debt has reduced by Rs. 191 crore) 16 1,028 837 13 446 307 6.12% 6.04% 582 530
Slide 6: Profitability Highlights
Profitability Highlights Standalone Consolidated YoY YoY Rs. in Cr Q1FY20 Q1FY19 Q1FY20 Q1FY19 Chg % Chg % Total Income 656 621 6% 667 636 5% Raw Material Cost 389 354 10% 397 364 9% Employee Cost 85 79 8% 87 81 7% Other Expenses 131 133 -2% 132 135 -2% EBITDA 51 55 -8% 50 55 -9% EBITDA Margin (%) 7
Slide 7: Key Performance Highlights – Q1 FY20
Key Performance Highlights – Q1 FY20 Revenue growth for the quarter was 5%, Yarn continues to contribute over 94% of the revenues Yarn Sales (in MT) Up by 3% in Q1FY20 Average Yarn Realization (Rs/kg) Up by 2% in Q1FY20 Yarn Export Revenue down by 3% in Q1FY20 221 27,424 197 191 26,531 217 458 419 Q
Slide 8: Executive Chairman’s comments
Executive Chairman’s comments Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The expected resurgence of demand once the upheaval of demonetisation and GST settled, is yet to materialize. Weakness in domestic as well as in international d
Slide 9: Sutlej
Sutlej Creation of a Strong Foundation over the years 8
Slide 10: Sutlej Textiles - Overview
Sutlej Textiles - Overview Largest Patronage of Renowned K.K.Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance One of the leading manufacturer of Melange Yarn Niche Presence Exports to + 65 countries Zero grey yarn manufacturing, pres
Slide 11: Key Milestones
Key Milestones Commenced commercial production of 31,104 Acquisition of Birla Spindles at Chenab Textile Textile Mills Acquired Design, Sales, Mills, J&K to manufacture and Distribution (DS&D) Backward Cotton Mélange and 35,280 spindles – business along with integration Cotton Blended Dyed Yarn comm
Slide 12: Business Verticals
Business Verticals Dyed Yarns Value Added Yarns Melange Yarns Curtains Home Textiles Upholstery Made Ups 11
Slide 13: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Leading spun dyed & Melange Utilization in Industry Yarn Manufacturer in India Better RM & Power through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Home Te
Slide 14: Experienced Team
Experienced Team Board of Directors Mr. C.S. Nopany Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Executive Chairman Independent Independent Independent Independent Non Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Rajiv K. Podar Mr. Rohit Dhoot Mr. Ashok
Slide 15: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 14
Slide 16: Yarn Capacities
Yarn Capacities • Ability to handle variety of RM with different counts • Work very closely with customer to fulfil requirements • Manufacture to Sale and not to Bhawanimandi, Rajasthan Stock • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kat
Slide 17: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,20,840 Dyed Yarn Spindles 35% dedicated to Melange Yarn 65% dedicated to various blends Well Diversified Product Portfolio 4,20,840 Marquee clients like Page In
Slide 18: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 17
Slide 19: Home Textile - Emerging Business
Home Textile - Emerging Business Focus on Curtains, Upholstery & Made ups Leading producer & exporter of Home Decor Continuous Increase in Loom Capacities Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State of Art
Slide 20: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Expanding Product Portfolio • Modernisation of Home textile facility is underway to • Better Designs help widening product offering & meet market trends. • Made-ups • Adding wider width machines & Printing capabilities. •
Slide 21: Building Organisation
www.americansilk.com Building Organisation 20
Slide 22: American Silk Mills (ASM)
American Silk Mills (ASM) Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk AfterMills LLC (ASM) the acquisition of ASM, the company has taken various steps to improve the performance New Management team The company had appointed Mr. David Corbin as the C
Slide 23: American Silk Mills (ASM)
American Silk Mills (ASM) Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Building Customers Confidence/Identifying new customers Silk Mills LLC (ASM) Re-gaining customer confidence of key customers like Lee Industries, Tapis etc Identified new customers t
Slide 24: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 23
Slide 25: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive PSF – A Key Raw Utilisation Material for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day CAPEX Rs. 189 crore Location (adjacent to our existing yarn manufacturing unit) Baddi,
Slide 26: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost Installed Roof Top Solar plant of 2.7 MW at new unit in Bhawanimandi, Rajasthan, Resulting in over 70% saving in per unit power cost compared to State Tariff Solar Plant at Bhawanimandi, Rajashthan 25
Slide 27: Sutlej 2.0 – Growth Strategy
Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation 26
Slide 28: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth Total Income Total Debt Networth Total Debt Total Debt to Equity 2,642 942 923 1,000 4.73 5.00 800 738 4.00 1,705 652 600 3.00 923 400 349 2.00 809 738 1.87 652 200 156 1.00 0.98 0 0.00 FY08 FY13 FY19 FY08 FY13 FY19 Continuous reduction in Total Debt to Equity ra
Slide 29: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key • Improving performance • Opportunities into •Strong Balance Sheet Raw material cost of ASM & integration Forward Integration with Sutlej •Generate better Return • Opportunities in new Ratio’s • Product Portfolio Speciality Yarns expansion
Slide 30: Annexure - Financials
Annexure - Financials 29
Slide 31: 5 year Performance Highlights
5 year Performance Highlights Revenue EBITDA PAT FY15 1,918 FY15 272 FY15 115 FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510 FY18 281 FY18 113 FY19 2,642 FY19 240 FY19 58 The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence FY 2017-18 is first year of consolida
Slide 32: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY15 1.1 FY15 3.8 FY16 1.2 FY16 4.9 7.5% 7.3% FY17 1.3 FY17 5.2 6.8% FY18 4.8 6.2% 6.2% FY18 1.15 FY19 4.2 FY19 0.98 FY15 FY16 FY17 FY18 FY19 31
Slide 33: Appreciation and Awards
Appreciation and Awards Silver Trophy for Second highest exports of Cotton yarn (Processed Yarns) in category II by TEXPROCIL Bestowed ‘Silver Trophy’ for the ‘Second Best Export Performance of Spun Yarns’ for 2017-18 by SRTEPC 32
Slide 34: Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect Mr. Bipeen Valame Mr. Vikash Verma / Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com vikash.verma@stellar-ir.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia
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