Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY22 Earnings Presentation
27 slides from Sutlej Textiles & Industries's earnings presentation, May 10, 2022
Slide 1: Cover letter to stock exchanges: Q4 & FY22 Result Presentation
SUTLEJ TEXTILES AND INDUSTRIES LIMITED Lotus Corporate Park, ‘E’ Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai 400 063, INDIA. Phone : (022) 4219 8800/6122 8989 Fax (022) 42198830 E-mail : info@sutlejtextiles.com Website: www.sutlejtextiles.com CIN. : L17
Slide 2: Sutlej Textiles and Industries Limited – Q4 & FY22 Result Presentation
Sutlej Textiles and Industries Limited Leadership in Yarns, Establishing a niche in Home Textiles Q4 & FY22 Result Presentation | May 2022 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q4 & FY22 Result Updates
Q4 & FY22 Result Updates
Slide 5: Financial Performance – Q4 & FY22
Financial Performance – Q4 & FY22 Consolidated (Rs crore) Q4FY22 Q3FY22 Q4FY21 YoY % FY22 FY21 YoY % Total Income 901 823 688 31% 3,112 1,915 63% Cost of goods sold 475 439 374 27% 1,604 1,062 51% Gross Profit 426 384 314 36% 1,508 853 77% GP margin % 47.32% 46.61% 45.58% 174 bps 48.45% 44.52% 393 b
Slide 6: Yarn Business- Highlights Q3FY22 and Q4FY22
Yarn Business- Highlights Q3FY22 and Q4FY22 Yarn realisations improved during the Capacity utilisation on increasing trend Export demand continues to be strong quarter Standalone Sales (Rs Crs) 95% 27,043 27,195 803 882 94% 42% 47% 58% 53% Q3FY22 Q4FY22 Q3FY22 Q4FY22 Q3FY22 Q4FY22 Yarn Capacity Util
Slide 7: Yarn Business- Highlights FY22
Yarn Business- Highlights FY22 Capacity utilisation at pre-covid levels Yarn volumes improved during the year Export demand continues to be strong Standalone Sales (Rs Crs) 93% 1,05,053 1,861 3,042 87,229 36% 44% 75% 64% 56% FY21 FY22 FY21 FY22 FY21 FY22 Yarn Capacity Utilization (%) Yarn Sales (MT)
Slide 8: Balance Sheet (Consolidated)- Highlights
Balance Sheet (Consolidated)- Highlights Marginal increase in overall Debt due to higher Consistently keeping the Debt to Equity below 1x… Working capital requirement 920 871 907 942 1.15 0.97 0.91 0.95 0.86 381 291 339 464 539 580 569 478 FY18 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Long Term Short
Slide 9: From the Executive Chairman’s Desk
From the Executive Chairman’s Desk Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: "During the fiscal, the Indian yarn players experienced a strong demand amid healthy exports and pent up demand in domestic market with receding impact of C
Slide 10: Sutlej – Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years
Slide 11: Successful Yarn business, building a niche Home Textile business
Sutlej Textiles – Successful Yarn business, building a niche Home Textile business Established Value-added Yarn Player Building a strong Home Textile Brand • Largest Spun Dyed Capacity • Niche Segment Presence ✓ One of India’s largest spun dyed Yarn and leading Melange Yarn ✓ One of the few listed p
Slide 12: Key Business Verticals
Key Business Verticals Dyed Yarns SPECIALISED YARN Value Added Yarn Segment Melange Yarns SUSTAINABLE GREEN FIBRE Recycled Polyester Recycled Green fibre Staple Fibre Curtains HOME TEXTILES Upholstery Niche Segment Made Ups 11
Slide 13: Guided by Industry Veterans and Experienced Management
Guided by Industry Veterans and Experienced Management Board of Directors Mr. C.S. Nopany Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Executive Chairman Independent Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Non-Execut
Slide 14: Consistently Expanding Capacities and Product Portfolio
Consistently Expanding Capacities and Product Portfolio… Backward Acquisition of Birla integration into Commenced Textile Mills Acquired Design, green fiber commercial production 31,104 spindles Sales, and Greenfield Project Modernization of of 31,104 Spindles at added at 35,280 spindles – Distribut
Slide 15: Focused on Value Added Specialty Yarn
Focused on Value Added Specialty Yarn Always Opted for Expansion into High Value Specialty Yarn
Slide 16: Among the Leading Yarn and Fabric Capacities in India
Among the Leading Yarn and Fabric Capacities in India ✓ Our manufacturing facilities are capable to handle a variety of Raw Material, having different Counts ✓ We work very closely with our Customers to fulfil requirements and on the ethos, ‘Manufacture to Sale and Not to Stock’ Kathua, J&K • 1,07,6
Slide 17: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business ▪ Leading Yarn manufacturer in India ✓ 4,20,240 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ▪ ~35% dedicated to Melange Yarn ▪ ~65% dedicated to various blends ▪ Well Diversified Product Portfolio/geographies and customers 4,20,2
Slide 18: Capex Update
Capex Update New Green Field Spinning project at J&K ✓ Currently the company is not present in Greige ( grey) product segment. In order to compliment the dyed/mélange product offering, the company needs to have grey product in its product basket. ✓ In view of the increasing demand for cotton /polyes
Slide 19: Sustainable Green Fibre Unit
Sustainable Green Fibre Unit Backward integration into recycle fibre to meet captive demand
Slide 20: Improving Operating Efficiency by Backward Integration
Improving Operating Efficiency by Backward Integration… Captive Utilisation RPSF – A Key Raw Material for Sutlej Bottle Flake Fibre Yarn Fabric Key Statistics: Updates ✓ 120 Tonne per day Installed capacity of green fibre at ✓ Capacity utilization has been consistently Sutlej increasing quarterly to
Slide 21: Home Textile Business
Home Textile Business One of the Few Listed Curtains & Upholstery Players
Slide 22: Home Textile Business
Home Textile Business ▪ Focus on Curtains, Upholstery & Made ups ✓ One of the leading producers & exporters of Home furnishings. Increase in Loom Capacities (MMT) over past 12 yrs ✓ American Silk Mills (ASM), leading Design & Distribution Company in USA ▪ Latest Technology in design & manufacturing
Slide 23: Home Textile Business – Market Penetration
Home Textile Business Market Penetration ✓ Focusing on Large Format store business in domestic market ✓ Maximum launch of new collections underway with customers for upcoming season. ✓ Targeting retailers, ready-made buyers in UK and Europe to promote made-up products. ✓ Increasing traction on made-
Slide 24: Home Textile - “Nesterra” Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future From B2B to Retail Brand • In FY21, launched the first retail brand in its existence • Brand is marketed wholesale, addressing cut piece requirements of India’s retail sector • Currently accessible in 153 stores across 21 states. Capitalize Existi
Slide 25: Home Textile - “Nesterra” Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future New Collections ✓ Phase 2 collections gained markets attention and garnered great traction ✓ Nesterra 3.0 is scheduled for launch in July 2022 Distribution ✓ Gained more than 80 new clients in the domestic retail market and is currently accessible
Slide 26: Key Highlights
Key Highlights ✓ Healthy order Book position with good orders from Furniture manufacturers. ✓ Instituted 2 price hikes in the past financial year across products, will help improve Gross margins. ✓ Strengthened sales force & secured representation throughout North America ✓ Developed new collection
Slide 27: Let’s Connect
“The best preparation for tomorrow is doing your best today ” Let’s Connect Mr. Bipeen Valame Ms. Pooja Sharma bipeenvalame@sutlejtextiles.com pooja.sharma@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andheri (East), Mumbai 400 093 For more information vis
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