S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q2 FY20 Earnings Presentation
32 slides from S.p. Apparels's earnings presentation, Nov 15, 2019
Slide 1: Cover letter to stock exchanges: Financial Presentation
S.P.APPARELS LTD. Regd. 39-A, Office: EXTENSION STREET, KAIKATTIPVDUR. AVINASJD • 641664. COIMBATORE DT. TAMD..NADU. lNDIA. PHONE : +91-4296-304000 FAX : +91-4296-304260, 304281 E-MAIL : spind.la@la·p·apparels.com WEB : www.a-p-apparels.com 15'11November, 2019 The Listing Department The Listing Depa
Slide 2: S.P. Apparels Limited Investor Presentation Q2 & H1 FY20 Results Update
S.P.APPARELS LIMITED INVESTOR PRESENTATION Q2 & H1 FY20 Results Update November 2019
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial co
Slide 4: Q2 FY20 - Key Highlights
Q2 FY20 - KEY HIGHLIGHTS ❑ Total Revenues 1 grew by 34.1% on YoY basis ❑ Garment Exports Division grew by 37% on YoY basis driven by increase in orders from both existing and new customers ❑ SPUK Operations remained flat on a YoY basis ❑ Retail Division grew by 34.4% on YoY basis ❑ Adj. EBITDA2 incr
Slide 5: Q2 & H1 FY20 Results Update
Q2 & H1 FY20 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 6: Q2 FY20 Result – Key Highlights
Q2 FY20 RESULT – KEY HIGHLIGHTS Q2 FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 2,551.9 18.5% 13.7% 15.0% 11.3% 7.8% 9.0% 384.0 352.1 348.9 1,903.4 214.1 230.0 34.1 % 9.1 % 7.4 % 149.1 133.9 % Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY2
Slide 7: H1 FY20 Result – Key Highlights
H1 FY20 RESULT – KEY HIGHLIGHTS H1 FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 4,802.9 16.3% 11.0% 13.3% 8.8% 7.3% 7.1% 3,774.5 639.9 413.9 613.5 422.2 339.0 275.0 27.2 % 4.3 % -18.1 % 53.5 % H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY2
Slide 8: Q2 FY20 Result – Division Wise Analysis
Q2 FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn Q2 FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q2 FY19 Q2 FY20 2251.9 Garment Exports 84.4% 86.3% 221.9 128.8 1903.4 SPUK 6.9% 5.0% 165.2 131.4 Retail 8.7% 8.7% 34.4 % -2.0 % 2,201.2 Adj. EBITDA MARGIN % 2 Q2 FY19 Q2 FY20 1,606
Slide 9: H1 FY20 Result – Division Wise Analysis
H1 FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn H1 FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE H1 FY19 H1 FY20 4802.9 Garment Exports 83.0% 85.8% 428.9 3774.5 254.6 SPUK 7.4% 5.3% 361.1 Retail 9.6% 8.9% 18.8 % 281 -9.4 % 4,119.4 Adj. EBITDA MARGIN % 2 H1 FY19 H1 FY20 3,132.5
Slide 10: Q2 FY20 Result – Key Analysis
Q2 FY20 RESULT – KEY ANALYSIS FINANCIAL UPDATE: • Q2 FY20 total revenues1 increased by 34.1% YoY to Rs 2,551.9 mn. • Revenues increased by 37% in Garment Exports and 34.4% in Retail. • Garment Exports witnessed healthy traction on account of orders from new customers as well as existing customers. •
Slide 11: Q2 & H1 FY20 Result – Consolidated Profit & Loss Statement
Q2 & H1 FY20 RESULT – CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY20 Q2 FY19 YoY% H1 FY20 H1 FY19 YoY% FY19 Revenue from Operations 2,461.0 1,907.4 29.0% 4,637.0 3,815.5 21.5% 8,263.8 Gain on account of Foreign Currency Fluctuations 90.9 -4.0 - 165.9 -41.0 - -159.2 Total Revenue
Slide 12: Q2 & H1 FY20 – Consolidated Balance Sheet
Q2 & H1 FY20 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Sep-19 Mar-19 Particulars (Rs Million) Sep-19 Mar-19 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 256.9 a. Property, Plant and Equipment 3,959.7 3,107.3 Other Equity 4,988.1 4,581.7 b. Capi
Slide 13: Company Overview
Q2 & H1 FY20 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 14: Brief Profile
BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪ SPAL is also the
Slide 15: Our Evolution
OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase efficiencies and
Slide 16: Leading Exporter of Infant & Children Wear in India
LEADING EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decades • Labour intensive operations.
Slide 17: Preferred Vendor to Reputed International Brands
PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including body suits, sleep su
Slide 18: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES INTEGRATED BUSINESS LOCATION ADVANTAGE: MODEL • All 26 manufacturing facilities are located within a radius of ~125 km of our Registered Office near Product Development Tirupur (leading hub in India for knitted garments for children and exp
Slide 19: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 18
Slide 20: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 19
Slide 21: Strong In-House Design Expertise
STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and des
Slide 22: Stringent Quality Controls & Compliance
STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each piece of garment f
Slide 23: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 22
Slide 24: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL IS STRENGTHENING ITS RETAIL PRESENCE BY EXPANDING THE REACH OF CROCODILE BRAND OUR RETAIL STORE PRESENCE • SPAL undertakes manufacturing and retailing activities in India under the ‘Crocodile’ brand. • SPAL sells wide range of adult menswear products like shirt
Slide 25: Qualified Management with Deep Understanding of Apparel Sector
QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Four years of experience in the • Founder director of SPAL with 33 Founder director of SPA with 26 years textile and
Slide 26: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mr P. Yesuthasen Independent Director Independent Director • 45 years of experience in banking • 42 years of experience in banking • Masters of Science from the University • MS in Business Administration, Cass of Madras Business Sch
Slide 27: Business Strategy & Outlook
Q2 & H1 FY20 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 28: Expand Retail Presence Across India
EXPAND RETAIL PRESENCE ACROSS INDIA PROPOSED EXPANSION OF RETAIL PRESENCE OVER THREE YEARS • Growing aspiration levels of people in Tier II, III and IV cities in India along with rising brand awareness and higher disposable income makes these smaller urban areas as focal points for expansion. • SPAL
Slide 29: Financial Overview & Shareholding Structure
Q2 & H1 FY20 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 30: Financial Overview
FINANCIAL OVERVIEW In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN CAGR: 9.3% CAGR: 8.9% CAGR: 11.1% 8.5% 8.9% 16.0% 16.2% 7.2% 8,264 16.4% 6,330 6,624 1,338 734 1,036 1,058 536 478 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 * Excludes exceptional item of write-off of amou
Slide 31: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 30th September 2019 KEY SHAREHOLDERS – 30th September 2019 Goldman Sachs India Ltd 5.21% Non-Institutions 15.0% UTI Mutual Fund 5.18% Promoters 61.6% DSP Blackrock Small Cap Fund 4.81% Aditya Birla Sun Life Insurance Company 3.20% Institutions 23.4% ICIC
Slide 32: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Chief Financial Officer Email: balaji.v@spapparels.com Mr. Chinmay Madgulkar /Mr. Chintan Mehta IR Consultant Email: s.p.apparels@dickensonworld.com Contact no: +91 9860088296/ 9892183389