Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Q4 FY22 Earnings Presentation
52 slides from Pearl Global Industries's earnings presentation, May 25, 2022
Slide 1: End-To-End Clothing Vendor & Supplier to Leading fashion brands
End-To-End Clothing Vendor & Supplier to Leading fashion brands TRANSFORMING THE WORLD OF FASHION Investor Presentation May 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: Q4 & FY22 Highlights
headlines! Jia ha : Q4 & FY22 Highlights
Slide 4: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “We are delighted to report the highest ever annual revenue growth in FY22. It is primarily driven by tailwinds in demand from international markets. Indian textile market is on a cu
Slide 5: Business Highlights FY22
Business Highlights FY22 Revenue Rs. 2,713.5 CRS. 82% ROCE 12.4% +690 bps • 147% YoY growth in overseas business • Increase in revenue from partnership facility in India & Vietnam Highlights • Start of commercial production in the Bangladesh factory ROCE improved by 690 bps to 12.4% in FY22 from 5.5
Slide 6: Consolidated Result Highlights FY22
Consolidated Result Highlights FY22 +82% +132% +300% Revenue EBITDA PAT Rs 2,713.5 CRS. Rs 140.6 CRS. Rs 70.1 CRS. +28% +16% Cash & Cash Equivalent Net Worth Rs 149.8 CRS. Rs. 598.9 CRS. 6
Slide 7: Consolidated Performance Highlights Q4 & FY22
Consolidated Performance Highlights Q4 & FY22 Revenue EBITDA PAT INR CRS. +70.7% +26.8% +81.5% 896.0 39.7 28.5 31.3 524.8 15.7 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue EBITDA PAT +82.0% +132.0% +300.6% 2,713.5 140.6 70.1 1,490.9 60.6 17.5 FY21 FY22 FY21 FY22 FY21 FY22 7
Slide 8: Key Performance Indicators FY22
Key Performance Indicators FY22 No. of pieces shipped (in Mn.) Revenue Contribution from Key Clients Revenue Contribution from customers added in last 5 years 53.9 21% 21.2% 41.4 41.0 19.7 36.1 13.2 13.7 32.7 10.4% 13.6 10.8 18% 61% 4.7% 5.3% 27.6 24.3 22.8 17.6 18.0 FY19 FY20 FY21 FY22 0.9 1.1 1.2
Slide 9: Consolidated Profit and Loss Statement - Q4 FY22
Consolidated Profit and Loss Statement - Q4 FY22 Profit and Loss (INR CRS.) Q4 FY22 Q4 FY21 Y-o-Y Q3FY22 Q-o-Q Revenue from Operations 896.0 524.8 71% 700.0 28% Cost of Goods Sold 529.3 288.4 383.7 Revenue increased by 71% YoY: Gross Profit 366.7 236.4 55% 316.3 16% ▪ Increase in revenue from Gross
Slide 10: Consolidated Profit and Loss Statement – FY22
Consolidated Profit and Loss Statement – FY22 Profit and Loss (INR CRS.) FY22 FY21 Y-o-Y Revenue from Operations 2,713.5 1,490.9 82% Revenue increased by 82% YoY: ▪ 147% YoY growth in overseas business Cost of Goods Sold 1,510.6 768.9 ▪ Increase in revenue from partnership facility in India Gross Pr
Slide 11: Consolidated Balance Sheet as on 31st March, 2022
Consolidated Balance Sheet as on 31st March, 2022 Assets (INR CRS.) Mar-22 Mar-21 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Non - Current Assets 533.9 533.2 Total Equity 614.9 530.2 Property Plant & Equipment along Property Plant & Equipment 258.2 213.8 Share Capital 21.7 21.7 with CWIP: CWIP 15
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) Mar-22 Mar-21 Net Profit Before Tax 85.8 11.4 Net Operating Cashflow: Adjustments for: Non Cash Items / Other Investment or Financial Items 76.2 61.3 ▪ Despite higher working capital requirements, working capital as a no Operating profit before working c
Slide 13: Standalone Performance Highlights Q4 & FY22
Standalone Performance Highlights Q4 & FY22 Revenue EBITDA PAT INR CRS. +28.7% +127.8% +162.2% 349.7 14.1 12.7 271.7 6.2 4.9 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue EBITDA PAT +21.1% 933.8 41.0 +3,149.6% 771.4 27.2 0.8 FY21 FY22 -3.8 FY21 FY22 FY21 FY22 13
Slide 14: Standalone Profit and Loss Statement – Q4 FY22
Standalone Profit and Loss Statement – Q4 FY22 Profit and Loss (NR CRS.) Q4 FY22 Q4 FY21 Y-o-Y Q3FY22 Q-o-Q Revenue from Operations 349.7 271.7 29% 197.8 77% Cost of Goods Sold 179.3 166.0 70.6 Revenue increased by 29% YoY: ▪ Increase in revenue from Gross Profit 170.4 105.8 61% 127.2 34% partnershi
Slide 15: Standalone Profit and Loss Statement – FY22
Standalone Profit and Loss Statement – FY22 Profit and Loss (INR CRS.) FY22 FY21 Y-o-Y Revenue from Operations 933.8 771.4 21% Revenue increased by 21% YoY: Cost of Goods Sold 428.1 473.1 ▪ Increase in revenue from Gross Profit 505.7 298.3 70% partnership facility in India Gross Profit Margin 54.2%
Slide 16: Standalone Balance Sheet as on 31st March, 2022
Standalone Balance Sheet as on 31st March, 2022 Assets (INR CRS.) Mar-22 Mar-21 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Non - Current Assets 344.8 360.6 Total Equity 343.5 313.8 Property Plant & Equipment 124.1 128.5 Share Capital 21.7 21.7 CWIP 0.0 0.4 Reserves & Surplus 321.8 292.1 Intangibl
Slide 17: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) Mar-22 Mar-21 Cashflow from Operating Activities: Net Profit Before Tax 36.1 -9.2 ▪ Higher working capital Adjustments for: Non Cash Items / Other Investment or Financial Items 27.2 42.3 requirements led to a negative cash flow from operations Operating pr
Slide 18: Company Overview
PEARL GLOBAL We believe in the Triple Bottom Line Approach \ KA Company Overview [\ (2 Or \] Bf PLANET PROSPERITY
Slide 19: 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 20: 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 21: 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 22: 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 23: Product Profile
PEARL GLOBAL Exceeding Expactations...Always The One-Stop Destination For Your Fashion Line! ACTIVE Product Profile =f —_— ' CHILDREN’S ~~~ WEAR
Slide 24: 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 25: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 26: 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 26
Slide 27: 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 28: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 28
Slide 29: Management Team
Management Team Sustainability; A value deeply embedded in every Pearl Global employee
Slide 30: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 30
Slide 31: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 31
Slide 32: 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 33: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 34: 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 35: 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 36: Our Unique Propositions: Key Strengths
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 37: 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 38: 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 39: 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 39
Slide 40: Financial Highlights
PEARL GLOBAL Exceeding Expectations...Always Conscious steps towards a Sustainable future Financial Highlights
Slide 41: 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 1,510.6 768.9 998.2 1,079.9 1,016.5 Gross Profit 1,202.9 722.0 686.9 677.6 479.5 Gross Profit Margin 44.3% 48.4% 40.8% 38.6% 3
Slide 42: 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 43: 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 44: 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 505.7 298.3 425.7 423.2 362.1 Gross Profit Margin 54.2% 38.7% 51.6% 50.4% 50.9% Employee Cost 1
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 50
Slide 51: 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 52: 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 / Ms. Khushbu Shah sanjay.gandhi@pearlglobal.com brinkle.shah@sgapl.net / khushbu.shah@sgapl.net +91 961938554
Pearl Global Industries — Q4 FY22 Earnings Presentation on 6ix