Ghcl Textiles Ltd. · NSE:GHCLTEXTIL
Ghcl Textiles — Q1 FY25 Earnings Presentation
23 slides from Ghcl Textiles's earnings presentation, Aug 1, 2024
Slide 1: Exchange cover letter: Investors' Presentation Q1FY25 Business Update
August 1, 2024 ावण–कृ ण पक्ष, वादशी िवक्रम संवत, २०८१ National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Building, Bandra – Kurla Complex, P.J. Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumbai –
Slide 2: GHCL Textiles Limited Q1 FY25 Investor Presentation
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Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), 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 form the basis or be relied on in connection with any contra
Slide 4: GHCL Textiles is a leading yarn manufacturer and exporter in India
GHCL Textiles is a leading yarn manufacturer and exporter in India, with advanced facilities in Tamil Nadu specializing in high-quality, finer count yarns. Recently, we expanded into the fabric segment, leveraging our expertise in cotton coverage and maintaining a lean cost structure. With 62MW of g
Slide 5: Key strengths
1 Catering to strategic customers to meet their specific requirements. 2 Gradually shift from commodity yarn to value added yarn segments. Industry leading productivity with utilization of over 99% even in adverse 3 market conditions. 4 Deep understanding of cotton crop and its coverage. Lean cost s
Slide 6: Revenue, EBITDA and PBT trends
Revenue EBITDA & Margin (%) PBT & Margin (%) In Rs. Cr 288 289 16 265 261 30 29 246 14 22 20 18 8 6 6 7% 8% 8% 10% 10% 2% 3% 3% 5% 5% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 1,037 1,060 255 924 213 693 671 611 112 116 91
Slide 7: Revenue mix: yarn, fabric, domestic and exports
(In Rs. Cr) (In Rs. Cr) 545 693 671 611 924 1,037 1,060 545 693 671 611 924 1,037 1,060 32 69 159 134 10 115 38 58 39 1,005 991 14 914 265 288 903 901 265 288 693 809 671 611 655 545 18 21 613 571 531 56 60 247 267 209 228 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 FY18 FY19 FY20 FY21 FY22 FY2
Slide 8: Q1FY25 profit and loss summary
Particulars Q1FY25 Q4FY24 QoQ Q1FY24 YoY Total Income 289 288 0.4% 265 9% COGS 193 194 (1%) 188 3% Gross Profit 96 94 2% 77 25% Gross Profit (%) 33% 33% 41 bps 30% 393 bps Employee Cost 17 17 2% 15 15% Power, Fuel & Water Expense 18 17 6% 22 (19%) Other Expenses 31 31 2% 22 39% Total Expenditure 66
Slide 9: Efficient Capital Allocation – Q1 FY25
Efficient Capital Allocation – Q1 FY25 Rs. 54 Crore Rs. 6 Crore Gross Debt Debt Repayment Growth Capex Rs. 18 Crore Rs. 28 Crore Cash Inflows Generated Net Cash Surplus Rs. 5 Crore Rs. (44) Crore Working Capital & Others Net Debt to Equity -- Increase in cash & cash equivalents* Closing cash & c
Slide 10: Vertical integration and green energy expansion
• Vertical integration of the yarn manufacturing to include knitted, weaving and dyed fabrics, which yields superior margins and integration with existing business. • Enhancement of Green energy portfolio to 75 MW (from 62 MW currently) to cater up to 85% of our energy requirement. • These initiativ
Slide 11: Capex projects and status
Capex Project Description Current Status Project Cost Timeline Implication (Rs. Cr) 25k Spindles capacity addition Ongoing 215 Q2 FY2026 Expected to generate revenue of Rs. 250 Cr • Signed MoUs for Rs. 1035 Cr investment with the Government of Tamil Nadu. • Of this, Rs. 360 Cr has already been inves
Slide 12: ESG initiatives
“ We strive to become a responsible steward and aim to reduce the overall environmental footprint of the organisation and will continuously monitor our journey ” Several Initiatives Focused on ESG: o Renewable Energy: caters to 72% of energy consumption o Environment: Significant savings in purcha
Slide 13: Union Budget 2024 measures for textiles
Commerce and Industry Union Budget 2024 Ministry Higher Allocation Skill & Innovation Custom Duty Infrastructure Higher allocation for the Enhanced allocations to Reduction of custom “The government is Ministry of Textiles from specialised programmes duty on Methylene setting up 12 new Rs 3400 Crore
Slide 14: Company Overview
COMPANY OVERVIEW 13
Slide 15: FY24 company snapshot and capacities
o Journey started with acquisition of sick spinning unit in 2002, turnaround to one of the most reputed mills in southern FY24 Capacities India. Revenue: ₹ 1060 Cr Ring Spindles: 2.25 lac o 2 State-of-the-art manufacturing infrastructure with cutting- Gross Margin: 31% Rotors: 3,320 edge textile mac
Slide 16: Demerger rationale and segments
Pre Demerger Organization & Business Structure Post Demerger Organization & Business Structure GHCL Limited (Listed on NSE & BSE) GHCL Textiles Limited (Listed on NSE & BSE) Inorganic Chemicals Textiles Spinning Home Textile business divested to lndo Count Industries Ltd. Soda Ash Spinning eff
Slide 17: Current capacities and growth history
2002 - 2008 2009-2015 2016-2018 2019-2020 2022-2023 Current Capacities Entered Spinning Spindles capacity Added TFOs for value Spindles capacity Spindles capacity Ring Spindles 225 k business with 65K increased to 175K, added yarn & Air Jet increased to increased to 225k Rotors - 3,320 spindles & la
Slide 18: Fully equipped product basket
Fully Equipped Product Basket Premium Quality • 38,000 MTPA yarn production • Wide range of products form • Producers of high-quality yarns, • Culture for developing value- commodity to value-added including GIZA, SUPIMA, Australian, added products leading to value • Tailor-made products to suit & C
Slide 19: Superior Customer Base
Superior Customer Base Y GHCL jraninyy | MR sus Arvioo Norban _— so Norhan ‘/TOGRY, Bren OBR | The World Of \ ocean Lanka “Wal oes i 1 Complete c 18
Slide 20: Superior credibility through several certifications
Superior Credibility Through Several Certifications Y GHCL = better foscooet | {CONFIDENCES are cotton | ON TeXTILes initiative | Tested for harmful substances according to Oeko-Tex® Standard 100 GIZA Ta z GRS mS Global Recycled EGYPTIAN COTTON KK Standard USTERIZED° 19
Slide 21: Yarn types, range and end use
Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn 25s to 60s Knitting from Indian, US and Australian Mix 100% cotton combed compact yarn from Indian, 30s to 170s Weaving US, Australian, Supima and Giza Mix Polyester /Cotton & Cotton/Polyester blended 25s to 40s Knitting Hosiery yarn Op
Slide 22: Management team and Board of Directors
Resilient and Skilled Management Team MR. R. BALAKRISHNAN MR. GAURAV V MR. D. RAMESH BABU MR. N. RAJAGOPAL MR. LALIT DWIVEDI CEO CFO OPERATIONAL HEAD TECHNICAL HEAD COMPANY SECRETARY Experienced and Accomplished Board of Directors MR. ANURAG DALMIA MR. R. S. JALAN MR. RAMAN CHOPRA MR. NEELABH DALMIA
Slide 23: Contact Us
Contact Us: Mr. Manu Jain GHCL Textiles Limited Tel: +91-7042310002 Email: manujain@ghcl.co.in Investor Relations Go India Advisors Name: Ms. Devyanshi Dave Tel: +91-9892330743 Email: devyanshi@goindiaadvisors.com Name: Mrs. Sheetal Khanduja Tel: +91-9769364166 Email: sheetal@goindiaadvisors.com