Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY15 Earnings Presentation
26 slides from Sutlej Textiles & Industries's earnings presentation, Aug 8, 2014
Slide 1: Q1 FY15 Results Presentation – 8th August 2014
Q1 FY15 Results Presentation – 8th August 2014
Slide 2: Forward-looking statements disclaimer
Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially fr
Slide 3: Agenda
Q1 FY15 – Performance Update 4 Company Overview 10 Track Record – Financial and Operational 19 Outlook 22 About Us 25 3
Slide 4: Q1 FY15 – Performance Update
Q1 FY15 – Performance Update
Slide 5: Q1 FY15 financial results table
5 (Rs. in crore) % % Particulars Q1 FY15 Q1 FY14 Q4FY14 Change wrt Change wrt Q1 FY14 Q4 FY14 Revenue 492 443 482 11.1 2.1 Total Expenditure 423 377 412 12.2 2.6 EBITDA 69 66 70 4.6 (0.9) Depreciation 15 17 24 (11.6) (36.1) EBIT 54 49 46 10.2 17.1 Interest 13 15 14 (12.8) (5.6) PBT (after exceptiona
Slide 6: Revenue, EBITDA and PAT highlights
Revenue 492 443 Revenue improved by 11.1% to highest ever for a quarter at Rs.492 crore on account of higher off-take and improved realisation of yarn. Yarn production Q1 FY14 Q1 FY15 during the quarter stood at 18,529 MT against 16,985 MT during corresponding period last year. Yarn EBITDA Figs in
Slide 7: Chairman's comments on the results
Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said "The Company's concerted efforts of focusing on specialty yarn products facilitated in maintaining growth momentum even during challenging time as demonstrated by our performance. Further, while our attempt
Slide 8: Rating agencies upgrade credit rating of bank facilities
Rating agencies upgrades credit rating of bank facilities Credit Analysis and Research Ltd. (CARE), upgrades credit rating of bank facilities of STIL as under • CARE A+ (Single A+ Plus) for long term Bank facilities from CARE A- (Single A Minus) indicating adequate degree of safety regarding timely
Slide 9: Update on Capacity Expansion and Modernization Programme
Update on Capacity Expansion and Modernization Programme Spinning capacity is being expanded by 30,672 spindles during the year; resulting in higher production of Cotton Mélange yarn, a value added product Company’s expertise in managing projects will ensure scheduled completion of expansion pro
Slide 10: Company Overview
Company Overview
Slide 11: Delivering robust growth on a sustainable basis
Spun Dyed Yarn Manufacturer Total Capacity For Cotton Mélange Yarn (Spindles) (Spindles) Total Capacity Total Capacity Credit Rating (Looms) (Rotors) (CARE / India Ratings, A Fitch Group Co.) Last 4 years Last 4 Years Last 4 Years Last 4 Years Revenue Growth EBITDA Growth PAT Growth EPS Growth “Deli
Slide 12: Company snapshot and marquee clients
• One stop shop for all types of yarn • Focus on Value added yarns – Spun Dyed Yarn, Cotton Mélange Sutlej Textiles and Industries Ltd (STIL) is India’s Product Mix • Diversified offerings with presence largest Spun Dyed Yarn manufacturer and across value chain with – Yarns, Fabrics & Home textile f
Slide 13: One stop shop for all types of spun dyed yarns
1• One stop shop for all types of spun dyed yarns – 100% or blends in Synthetic or natural / Count range: from 6 s to 60 s / Colour: grey, mélange or Dyed in all shade / Fold: simple, Double or multifold 2• Largest manufacturer of Value Added Dyed Synthetic and Cotton Mélange Yarn in India – sustain
Slide 14: Optimum and efficient capacity utilization
• Optimum & efficient capacity utilization owing 4 to the most modern Plant and Machinery – 69% of Company’s spindle age are less than a decade old 5• In house R&D team backed with state of the art technology • Robust order booking procedure – production 6 based on specific client requirements and a
Slide 15: Delivering consistent and robust returns
7• Delivering consistent & robust returns – reported one of the best Return Ratios in the industry. ROCE and ROE in FY2014 stood at 28% each 8• Consistent track record of paying dividend since incorporation 9• In line with Company’s philosophy of rewarding its shareholders, the Company allotted bonu
Slide 16: Focus on Niche and Value added Products
Sourcing Proficient Strong Robust Order Booking Raw Material Manufacturing and Distribution Efficiencies Processes R&D Strategies Multiple Raw Material inputs – Best-in-industry utilization In-house success – Strong in- Well-organized order booking efficiently manage input volatility levels – Contin
Slide 17: Growth Drivers
Value Added Products Highly Strategically automated located Mfg. Production facilities line Growth Ramping up of Capacities Drivers Strong & continuous R&D Optimum & Strong efficient Balance- resource sheet utilization 17
Slide 18: Capacity addition pre and post expansion
Capacity (Pre) Location Type of Yarn No. of Spindles Kathua Cotton Mélange 55,000 (J&K) Man-made Fibre 116,000 Bhawani Mandi Cotton and 90,000 (Rajasthan) Man-made Fibre • Project Budget: Rs. 175 crore (including Rs. 10 crore for long ~262,000 term working capital) Addition Cotton Mélange ~30,000 •
Slide 19: Track Record – Financial & Operational
Track Record – Financial & Operational
Slide 20: Financial track record FY12–FY14
20 INR Million USD Million Particulars FY12 FY13 FY14 FY12 FY13 FY14 Revenues 15,370 16,802 18,806 320 317 330 EBITDA 1,783 2,343 3,056 37 44 54 Margin % 12% 14% 16% 12% 14% 16% PBT 396 928 1,717 8 18 30 Margin % 3% 6% 9% 3% 6% 9% PAT 317 770 1,314 7 15 23 Margin % 2% 5% 7% 2% 5% 7% Total Assets 11,
Slide 21: Yarns and Fabrics sales and realisation
Yarns* Fabrics Sales (MT) Sales (‘000 Mtrs.) 5,497 6,042 5,337 78,124 79,666 4,906 5,089 76,334 71,973 72,346 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 Avg. Yarn realisation (Rs/Kg) Avg. Fabric realisation (Rs/Mtr) 109 116 119 200 207 222 87 98 147 186 2009-10 2
Slide 22: Outlook
Outlook
Slide 23: Pillar of Growth – Indian textile industry
Pillar of Growth On a global front, the Indian Textile Industry is the second largest producer of textiles and plays a pivotal role in the growth of the Indian economy. As it accounts for - • ~4.5% share in the world total exports • ~4% of GDP • ~11% of Country’s export earnings • ~14% of Industrial
Slide 24: Ramping up Value Added Products Capacities
Ramping up Value Profitability enhancement post commissioning of the capacities for Added Products value added Cotton Mélange yarn segment Capacities Strengthening Core Accentuate capacities at existing locations to scale up business Business operation and tap rising demand anticipated in the sector
Slide 25: About Sutlej Textiles and Industries Ltd
Sutlej Textiles and Industries Ltd (STIL): Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index) was incorporated in 2005 out of a corporate restructuring exercise wherein the textile divisions of Sutlej Industries Ltd and Damanganga Processors Ltd were demerged to create a sin
Slide 26: Thank You
THANK YOU SULIE)
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