Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — H1FY23 Earnings Presentation
50 slides from Pearl Global Industries's earnings presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation November 2022
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: H1FY23 Highlights
PEARL GLOBAL Exceeding Expectations. Always Designs that make the = Se Y headlines! coe H1FY23 Highlights
Slide 4: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “While the short-term macro environment seems arduous on the back of various global factors, we are a soon becoming a preferred player in the ecosystem of our global customers. Havin
Slide 5: Highlights
Business Highlights H1FY22 Revenue Rs. 1,711.4 CRS. 53% ROCE* Highest ever half yearly revenue since inception on account of : 20.4% +800 bps • Better product mix Highlights ROCE improved by 800 bps to 20% in H1FY23 from 12.4% in FY22 • Increase in contribution from in house and partnership factory
Slide 6: Highest Ever Consolidated H1 Revenue
Highest Ever Consolidated H1 Revenue Revenue INR CRS. EBITDA EBITDA EBITDA Margin(%) 1,711.4 7.0% COVID-19 Impact COVID-19 Impact 5.0% 119.6 1,117.5 4.1% 861.3 3.4% 816.4 606.0 -0.4% 58.1 28.3 33.0 H1FY19 H1FY20 H1FY21 H1FY22 H1FY23 19.6 H1FY19 H1FY20 H1FY21 H1FY22 H1FY23 PBT PAT 75.5 62.3 COVID-19
Slide 7: Consolidated Performance Highlights Q2FY23
Consolidated Performance Highlights Q2FY23 EBITDA INR CRS. Revenue Margin (%) 5.9% 6.1% +26.3% +31.4% 860.3 52.5 681.3 39.9 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Adj PBT* PAT +38.4% +1.6% 32.4 25.5 25.9 23.4 Q2FY22 Q2FY23 Q2FY22 Q2FY23 *Adj PBT excludes exceptional gain of Rs 6.5cr in Q2FY22 and a loss of Rs
Slide 8: Consolidated Profit and Loss Statement - Q2 & H1FY23
Consolidated Profit and Loss Statement - Q2 & H1FY23 Profit and Loss (INR CRS.) Q2 FY23 Q2 FY22 Y-o-Y Q1 FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Revenue from Operations 860.3 681.3 26.3% 851.1 1% 1711.4 1117.5 53.1% Q2FY23 Revenue increased by 26% YoY: Cost of Goods Sold 465.9 369.8 473.8 939.7 597.7 ▪ Reven
Slide 9: Consolidated Balance Sheet as on 30th Sept,2022
Consolidated Balance Sheet as on 30th Sept,2022 Assets (INR CRS.) Sep-22 Mar-22 Equity & Liabilities (INR CRS.) Sep-22 Mar-22 Non - Current Assets 599.9 533.9 Total Equity 656.3 614.9 Property Plant & Equipment 282.9 258.2 Share Capital 21.7 21.7 CWIP 21.4 15.2 Reserves & Surplus 605.9 577.3 Goodwil
Slide 10: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) Sep-22 Sep-21 Net Profit Before Tax 75.5 32.4 Adjustments for: Non -Cash Items / Other Investment or Financial Items 47.0 34.9 Operating profit before working capital changes 122.5 67.3 Changes in working capital 155.3 -98.8 Cash generated from Operation
Slide 11: Standalone Performance Highlights Q2FY23
Standalone Performance Highlights Q2FY23 INR CRS. Revenue EBITDA Margin (%) 4.3% 5.4% +38.9% +74.6% 300.5 16.4 216.3 9.4 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Adj PBT* PAT +101.9% -26.3% 8.1 7.6 5.6 4.0 Q2FY22 Q2FY23 Q2FY22 Q2FY23 *Adj PBT excludes exceptional gain of Rs 6.4cr in Q2FY22 and a loss of Rs 75 la
Slide 12: Standalone Performance Highlights H1FY23
Standalone Performance Highlights H1FY23 Revenue EBITDA INR CRS. Margin (%) 4.7% 6.1% +62.7% +109.6% 628.4 38.1 386.2 18.2 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Adj PBT* PAT +213.5% +95.5% 31.8 23.6 12.0 10.1 Q2FY22 Q2FY23 Q2FY22 Q2FY23 *Adj PBT excludes exceptional gain of Rs 6.4cr in Q2FY22 and a loss of Rs
Slide 13: Standalone Profit and Loss Statement – Q2 & H1FY23
Standalone Profit and Loss Statement – Q2 & H1FY23 Profit and Loss (INR CRS.) Q2 FY23 Q2 FY22 Y-o-Y Q1 FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Revenue from Operations 300.5 216.3 38.9% 327.9 -8.3% 628.4 386.2 62.7% Q2FY23 Revenue increased by 39% YoY: Cost of Goods Sold 163.0 98.7 179.3 342.3 178.2 ▪ Revenue
Slide 14: Standalone Balance Sheet as on 30th Sept,2022
Standalone Balance Sheet as on 30th Sept,2022 Assets (INR CRS.) Sep-22 Mar-22 Equity & Liabilities (INR CRS.) Sep-22 Mar-22 Non - Current Assets 351.3 344.8 Total Equity 341.6 343.5 Property Plant & Equipment 127.0 124.1 Share Capital 21.7 21.7 CWIP 0.9 0.0 Reserves & Surplus 319.9 321.8 Goodwill 0.
Slide 15: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) Sep-22 Sep-21 Net Profit Before Tax 29.0 16.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 10.5 19.8 Operating profit before working capital changes 39.4 36.2 Changes in working capital 56.2 -23.4 Cash generated from Operations 95
Slide 16: Company Overview
PEARL GLOBAL We believe in the Triple Bottom Line Approach \ KA Company Overview [\ (2 Or \] Bf PLANET PROSPERITY
Slide 17: 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 18: 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 19: 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 20: 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 21: Product Profile
PEARL GLOBAL Exceeding Expactations...Always The One-Stop Destination For Your Fashion Line! ACTIVE Product Profile =f —_— ' CHILDREN’S ~~~ WEAR
Slide 22: 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 23: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 24: Global Presence Across 8 Countries
Global Presence Across 8 Countries UNITED KINGDOM SPAIN USA (NEW YORK) DESIGN & SALES ACROSS BANGLADESH HONG KONG 8 COUNTRIES MANUFACTURING SET UP ACROSS 4 VIETNAM COUNTRIES INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA 24
Slide 25: Manufacturing Facilities
Manufacturing Facilities No of Location Annual Capacity Specialization Units Woven and Knit products including women’s fashion wear, men’s India 8 28mn pieces p.a. wear and kid’s wear. South factories make women’s tops and dresses Bangladesh 8 45mn pieces p.a. Woven and Knitted tops and bottoms for
Slide 26: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 26
Slide 27: Management Team
Management Team Sustainability; A value deeply embedded in every Pearl Global employee
Slide 28: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 28
Slide 29: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 29
Slide 30: 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 Amy Rosenberg David Ayala Jo Hales CE
Slide 31: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 32: Government Initiatives
Government Initiatives 1 2 3 4 5 Extension of RoSCTL Notification of Free Trade PLI Scheme MITRA Scheme RoDTEP rates Agreement scheme • Scheme was approved • Under the scheme, • The extension is likely • The announcement is • With the IndAUS with a total outlay of Rs 7 mega parks will be to benefit
Slide 33: China +1 Provides Huge Opportunity For Textiles & Apparel Players
China +1 Provides Huge Opportunity For Textiles & Apparel Players Covid-19 and geopolitical situations have led to redistribution of global trade shares and recalibration of sourcing partners China +1 provides enormous opportunity to India Textiles Industry to regain a leadership position as a top e
Slide 34: 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 35: 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 36: 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 37: 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 37
Slide 38: Financial Highlights
PEARL GLOBAL Exceeding Expectations...Always Conscious steps towards a Sustainable future Financial Highlights
Slide 39: Consolidated Profit And Loss Statement
Consolidated Profit And Loss Statement Profit and Loss (INR CRS.) FY22 FY21 FY20 FY19 FY18 Revenue from Operations 2,713.5 1,490.9 1,685.1 1,757.5 1,496.0 Cost of Goods Sold 1,510.6 768.9 808.3 873.3 825.5 Gross Profit 1,202.9 722.0 876.8 884.2 670.5 Gross Profit Margin 44.3% 48.4% 52.0% 50.3% 44.8%
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non - Current Assets 533.9 533.2 543.1 434.6 387.2 Total Equity 614.9 530.2 500.6 469.9 395.1 Property Plant & Equipment 258.2 213.8 221.9 243.6 179.0 Sh
Slide 41: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 85.8 11.4 31.2 82.9 32.4 Adjustments for: Non -Cash Items / Other Investment or Financial Items 76.2 61.3 93.2 51.5 42.6 Operating profit before working capital changes 162.1 72.6 124.5 134.5 75 Changes in w
Slide 42: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Profit and Loss (INR CRS.) FY22 FY21 FY20 FY19 FY18 Revenue from Operations 933.8 771.4 825.3 840.3 710.8 Cost of Goods Sold 428.1 473.1 399.6 417.1 348.6 Gross Profit 505.7 298.3 425.7 423.2 362.2 Gross Profit Margin 54.2% 38.7% 51.6% 50.4% 51.0% Employee Cost 1
Slide 43: Standalone Balance Sheet
Standalone Balance Sheet Assets (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non - Current Assets 344.8 360.6 377.8 347.2 348.5 Total Equity 343.5 313.8 305.9 316.2 298.6 Property Plant & Equipment 124.1 128.5 131.7 131.5 125.6 Shar
Slide 44: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 36.1 -9.2 10.9 31.9 6.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 27.2 42.3 33.7 20.5 27.4 Operating profit before working capital changes 63.3 33.1 44.6 52.4 34.1 Changes in worki
Slide 45: Sustainability
PEARL GLOBAL Exceeding Expectations...Always We're environmentally sustainable, for real! TAGS ® TAGS ARE MADE WITH % é RECYCLED PAPER 100% ORGANIC COTTON GARMENT DYED WITH SINGLE JERSEY wet, <, COTS CERTIFIED , NATURAL DYES: OEKO-TEX® MOLE USING MAGIC BOX, OZONE LASER & SUSTAINABLE CHEMICAL BIO-ENZ
Slide 46: 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 47: 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 48: 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 48
Slide 49: 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 50: 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
Pearl Global Industries — H1FY23 Earnings Presentation on 6ix