Slide 1: Exchange filing cover letter
November 12, 2022 The Listing Department, National Stock Exchange of India Limited, ‘Exchange Plaza’, C 1, Block G, Bandra – Kurla Complex, Bandra (E), Mumbai 400 051 Dear Sir/Madam, Sub: Investors Presentation - reg Pursuant to Regulation 30(6) and Regulation 46(2)(o) of SEBI (Listing Obligations a
Slide 2: Investor Presentation November 2022
Preco~ Reliable, Agile and Innovative Investor Presentation November 2022
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Precot Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 4: Yarn & Threads, Technical Textile overview
Yarn & Threads Technical Textile Private Label Specialist in Incorporated in 1962 cotton-based products in hygiene and cosmetics 5 state of art facilities with Wide range of cotton- based presence in products with End-to-End 4 states of South India capability Yarn & Technical Threads Textile 1.65 la
Slide 5: Company milestones since 1962
1962 1983 1992 1995 First Manufacturing Unit in Unit 2 with Unit 3 with 25,000 Unit 4 with 35,000 spindles Kerala with 12,000 29,000 spindles in spindles in Kerala in Tamil Nadu spindles Andra Prdaesh 2010 2002 1995 Dyeing Unit with annual Commissioning of Doubling & Gassing Units, capacity of 1800T
Slide 6: Geographical Presence, Quality, Product Diversification
Geographical Presence Quality Captures the benefit of growing Delivering sustainable products with unmatched market opportunity in international quality and consistency. as well as domestic markets 03 04 Product Diversification Technical Advancements Introduction of new & value-added Automation for
Slide 7: Diversified range of cotton yarns and threads
Diversified range of cotton yarns and threads 165,000 spindles Organic, BCI & normal Newer and quality cotton and polyester products to create product differentiation Production of specialty Value addition and blended yarn Efforts to improve Products Integration operational with supply chains effici
Slide 8: Enabling Factors for Growth, Target Nations
Enabling Factors for Growth Target Nations USA Private Label Sales in exports market Constant R&D for Rapid increase in demand for hygiene developing value-added products providing platform for Improve Product Mix and products to create value Indian players geographical presence for both global & do
Slide 9: Absorbent Cotton
Products End User Absorbent Cotton Our purifiedcotton Our purified cotton is OEKO contains zeroTex and residual REACH compliant chemicals, and zero toxins andTotally Chlorine is Totally Chlorine Free (TCF). Free (TCF). Cotton buds Cotton Pads Sanitary Pads Tampons and Spunlace Wipes manufacturers Ou
Slide 10: Exfoliating Pads
Products End User Our range of cotton balls are made from 100% pure absorbent cotton. Cotton Balls Cosmetic and Nail Paint medical purposes remover Patented woven textured 100% Cotton, Exfoliating Pads 100% Biodegradable exfoliating pads Nail Paint Gentle skin remover exfoliation 9
Slide 11: Cotton Spunlace Rolls
Products End User Highly absorbent wool rolls. Cotton Wool Rolls Pleats specially designed for easy tear- off & use General hygiene Baby cleaning Cotton Spunlace Rolls Our cotton spunlace is 4 layered, highly absorbent and has good strength for further processability Panty Liners Sanitary Pads 10
Slide 12: Yarn & Threads
Products End User Leading manufacturers of yarns & threads for textile production, knitting Yarn & Threads and sewing Weaving Knitting Sewing Textile Production 11
Slide 13: Key Highlights of the Manufacturing Processes
Key Highlights of the Manufacturing Processes ✓ Vertically integrated manufacturing capabilities with in- house design and development ✓ Increased automation and process improvements are being implemented in order to maintain quality and profitability. ✓ Compliance and Quality Standards: ISO 9001 &
Slide 14: Accessibility, Manpower, Infrastructure and Scalability
Accessibility Our Facilities are located close to the source of Raw material required for production enabling continuous supply and better ability to manage demand cycles Manpower Availability of both skilled and unskilled manpower helps in manpower planning Karnataka - Gowribidnur, Kolar Karnataka
Slide 15: Key Takeaways
Key Takeaways Key Takeaways Container availability and State of art Facilities located reduced freight cost providing in India export relief Canada UK Europe Middle East Bangladesh India USA Egypt Company has moved towards Vietnam Presence in over 25 countries solar and wind energy for its Sri lanka
Slide 16: Geography wise and Segment wise revenue
Geography wise (Rs. Crs) Segment wise (Rs. Crs) 955 955 757 157 696 697 757 679 501 679 697 92 642 73 119 473 139 386 426 424 798 606 665 453 577 504 293 284 270 272 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Domestic Export Technical Textile Yarn Geography wise (%) Segment wise (%) 10.7% 12.
Slide 17: Growth strategy
Enhance existing & expand product portfolio • Focus on branding and promotion Increasing presence in overseas markets • Plans to export to new geographies such as 01 03 • Manufacturing and developing Value added product portfolio MENA & South East Asia in the next 5-10 years • Leverage the advantage
Slide 18: Historical, Existing and Target mix
Historical mix Existing mix Target mix 11% 16% 35% FY18 FY22 FY25 65% 89% 84% Yarn Technical Textile Aiming to Increase our revenue share Higher share of value-added products Value added products to be targeted in technical textiles segment from 11% to aid in margin expansion and better in current a
Slide 19: Key customers
Walmart Inc. CVS Pharmacy Walgreens ` ` ` Dollar General Dove The Kroger Co. ` ` ` Meijer Inc. K Mart ` ` Coles Supermarkets Aldi ` ` 18
Slide 20: Board of Directors
Mr. Ashwin Chandran Mr. Prashant Chandran Mr. T Kumar Designation - Chairman & MD Designation - Vice Chairman & MD Designation - Executive Director Age - 46 Years Age - 41 Years Age - 53 Years Experience - More than 22 years of experience Experience - More than 15 years of experience Experience - Mo
Slide 21: Certifications
Certifications QEKO-TEX® STANDARD 100 $a THN itey
Slide 22: Investments in Green Energy and sustainability
Investments in Green Energy - 5 MW Recycled Water Management with the Wind and 10 MW Solar generations and help of effluent treatment plants Gas based power plants Promoting Organic & Recycled Products in Active CSR with special focus on education both Spinning and Technical Textile and healthcare f
Slide 23: Financial Highlights
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Slide 24: Q2 and H1 FY23 financial highlights
Revenue (₹ crore) Gross Profit (₹ crore) Margin% 52.2 37.4 54.3 42.4 Highlights 489 232 426 207 ➢ H1FY23 Revenue from operations stood at Rs 132 253 235 489 crore as against Rs 88 426 crore in H1FY22; witnessing a growth of 14.6% Q2FY22 Q2FY23 H1FY22 H1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 ➢ Gross Profit
Slide 25: Profit and Loss Q2FY23 and H1FY23
Profit and Loss (in Rs. Crs) Q2FY23 Q2FY22 H1FY23 H1FY22 Revenue from Operations 235.4 252.6 488.8 426.4 Cost of Goods Solds 147.4 120.9 281.4 194.8 Gross Profit 88.0 131.7 207.4 231.6 Gross Profit Margin 37.4% 52.2% 42.4% 54.3% Employee Cost 21.1 23.2 43.6 45.5 Other Expenses 53.5 53.7 115.2 97.0 E
Slide 26: Assets, Equity & Liabilities Sep-22
Assets (in Rs. Crs) Sep-22 Mar-22 Equity & Liabilities (in Rs. Crs) Sep-22 Mar-22 Non - Current Assets 498.5 495.1 Total Equity 447.3 444.1 Property Plant & Equipment 456.2 428.0 Share Capital 12.0 12.0 Reserves & Surplus 435.3 432.1 CWIP 1.7 31.6 Non-Current Liabilities 186.4 110.0 Intangible asset
Slide 27: Cash flow statement H1FY23
As on As on Particulars (in Rs. Crs) 30-Sept-22 31-Mar-22 Net Profit Before Tax 14.8 133.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 38.8 58.9 Operating profit before working capital changes 53.5 192.7 Changes in working capital -60.5 -117.2 Cash generated from Operation
Slide 28: Annual Revenue, Gross Profit, EBITDA, PAT FY18-FY22
Revenue (₹ crore) Gross Profit (₹ crore) Margin% 37.1 40.2 40.8 46.1 50.8 993 505 790 709 726 665 318 296 307 263 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (₹ crore) PAT (₹ crore) Margin% 2.9 7.3 6.6 14.0 19.0 Margin% -0.8 -1.0 -2.3 5.0 10.6 189 105 93 33 57 48 21 -6 -8 -17 FY18 FY19
Slide 29: Profit and Loss FY18-FY22
Profit and Loss (in Rs. Crs) FY22 FY21 FY20 FY19 FY18 Revenue from Operations 993.3 665.1 726.1 790.1 709.2 Cost of Goods Sold 488.6 358.6 430.1 472.5 446.1 Gross Profit 504.7 306.6 296.0 317.7 263.0 Gross Profit Margin 50.8% 46.1% 40.8% 40.2% 37.1% Employee Cost 93.6 73.6 71.7 76.9 72.3 Other Expen
Slide 30: Assets and Equity & Liabilities FY18-FY22
Assets (in Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (in Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non - Current Assets 495.1 471.6 491.9 547.6 567.5 Total Equity 444.1 341.6 310.2 335.7 343.5 Property Plant & Equipment 428.0 437.4 462.5 511.5 532.7 Share Capital 12.0 12.0 1
Slide 31: Cash flow statement FY18-FY22
Particulars (in Rs. Crs) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 133.8 33.0 -25.5 -7.8 -5.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 58.9 64.2 63.00 67.8 36.5 Operating profit before working capital changes 192.7 97.1 38.3 60 31.1 Changes in working capital -117.
Slide 32: For further information, please contact
For further information, please contact: Company: Investor Relations Advisors: Precot Limited Strategic Growth Advisors Pvt. Limited CIN: L17111TZ1962PLC001183 CIN: U74140MH2010PTC204285 Mrs S. Kavitha Mr Pratik Suresh Shah/ Ms Prachi Chhugani kavitha@precot.com p.s.shah@sgapl.net / prachi.c@sgapl.n