Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — 9MFY23 Earnings Presentation
48 slides from Pearl Global Industries's earnings presentation, Feb 7, 2023
Slide 1: Exchange filing cover letter: Investor Presentation for quarter ended December 2022
PcARL GLOBAL - Exceeding Expectations ... Always PGIUSE/2022-23/69 Date: February 7, 2023 THE GENERAL MANAGER, THE GENERAL MANAGER, DEPARTMENT OF CORPORATE SERVICES - CRD LISTING DEPARTMENT BSE LIMITED NATIONAL STOCK EXCHANGE OF INDIA LTD. 1sT FLOOR, NEW TRADING RING "EXCHANGE PLAZA", PLOT NO. C- 1,
Slide 2: Investor Presentation February 2023
Investor Presentation February 2023
Slide 3: 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 4: 9MFY23 Highlights
PEARL GLOBAL Exceeding Expectations. Always Designs that make the = Se Y headlines! coe 9MFY23 Highlights
Slide 5: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “Despite the rough waters overseas owing to inflationary pressure and macro-economic challenges, we were able to deliver a satisfying performance. One of the major reasons for this i
Slide 6: Business Highlights 9MFY23
Business Highlights 9MFY23 Revenue EBITDA Margin Rs. 2,428.4 CRS. 34% 7.9% +239 bps Highest ever nine monthly revenue since inception on account of : EBITDA Margins improved by 239 bps to 7.9% in 9MFY23 from 5.5% • Integration from Alpha acquisition in financials from Q3FY23 onwards Highlights in 9M
Slide 7: Highest Ever Consolidated 9M Revenue
Highest Ever Consolidated 9M Revenue Revenue INR CRS. EBITDA EBITDA EBITDA Margin(%) 2,428.5 COVID-19 Impact COVID-19 Impact 7.9% 1,817.5 192.7 1,255.0 5.3% 5.5% 1,166.7 966.1 4.5% 3.0% 100.8 67.1 9MFY19 9MFY20 9MFY21 9MFY22 9MFY23 52.2 29.3 9MFY19 9MFY20 9MFY21 9MFY22 9MFY23 PAT Return On Capital E
Slide 8: Consolidated Performance Highlights Q3FY23
Consolidated Performance Highlights Q3FY23 EBITDA INR CRS. Revenue Margin (%) 6.1% 10.2% +2.4% +71.4% 700.0 717.1 73.2 42.7 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Adj PBT* PAT +115.8% +122.1% 46.4 37.4 21.5 16.8 Q3FY22 Q3FY23 Q3FY22 Q3FY23 *Adj PBT excludes exceptional loss of Rs 21 lakhs in Q3FY22 and a loss
Slide 9: Consolidated Profit and Loss Statement - Q3 & 9MFY23
Consolidated Profit and Loss Statement - Q3 & 9MFY23 Profit and Loss (INR CRS.) Q3 FY23 Q3 FY22 Y-o-Y Q2 FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Revenue from Operations 717.1 700.0 2% 860.3 -17% 2,428.5 1,817.5 34% Cost of Goods Sold 333.5 383.7 465.9 1273.1 981.3 Gross Profit 383.6 316.3 21% 394.4 -3% 1,155
Slide 10: Standalone Performance Highlights 9MFY23
Standalone Performance Highlights 9MFY23 Revenue EBITDA INR CRS. Margin (%) 4.6% 5.8% +42.0% +79.9% 829.2 48.2 584.0 26.8 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Adj PBT* PAT +171.2% +79.5% 37.0 25.9 14.4 13.6 Q3FY22 Q3FY23 Q3FY22 Q3FY23 *Adj PBT excludes exceptional gain of Rs 6.3cr in Q3FY22 and a loss of Rs
Slide 11: Standalone Performance Highlights Q3FY23
Standalone Performance Highlights Q3FY23 INR CRS. Revenue EBITDA Margin (%) 4.4% 5.0% +1.5% +16.1% 197.8 200.8 10.1 8.7 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Adj PBT* PAT +48.6% 5.2 2.4 2.3 3.5 Q3FY22 Q3FY23 Q3FY22 Q3FY23 *Adj PBT excludes exceptional loss of Rs 2 crores in Q3FY23. There was no exceptional it
Slide 12: Standalone Profit and Loss Statement – Q3 & 9MFY23
Standalone Profit and Loss Statement – Q3 & 9MFY23 Profit and Loss (INR CRS.) Q3 FY23 Q3 FY22 Y-o-Y Q2 FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Revenue from Operations 200.8 197.8 1% 300.5 -33% 829.2 584.0 42% Cost of Goods Sold 70.4 70.6 163.0 412.7 248.8 Gross Profit 130.4 127.2 2% 137.5 -5% 416.5 335.3 24%
Slide 13: Company Overview
PEARL GLOBAL We believe in the Triple Bottom Line Approach \ KA Company Overview [\ (2 Or \] Bf PLANET PROSPERITY
Slide 14: 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 15: 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 16: 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 17: 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 18: Product Profile
PEARL GLOBAL Exceeding Expactations...Always The One-Stop Destination For Your Fashion Line! ACTIVE Product Profile =f —_— ' CHILDREN’S ~~~ WEAR
Slide 19: 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 20: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 21: 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 20
Slide 22: 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 23: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 22
Slide 24: Management Team
Management Team Sustainability; A value deeply embedded in every Pearl Global employee
Slide 25: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 24
Slide 26: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 25
Slide 27: 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 David Ayala Jo Hales CEO-Bangladesh E
Slide 28: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 29: 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 30: 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 31: 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 32: Global Competitive Advantage
Global Competitive Advantage Multinational Presence Diversified Product Offering Robust Design Team • Present in each country for >10 years • Close proximity to customer • Specialised products in each country • Gives an edge to leverage • Strengthens relationship and gives • Provides leveraging oppo
Slide 33: 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 34: 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 35: 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 34
Slide 36: Financial Highlights
PEARL GLOBAL Exceeding Expectations...Always Conscious steps towards a Sustainable future Financial Highlights
Slide 37: 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 1,510.6 768.9 808.3 873.3 825.5 Gross Profit 1,202.9 722.0 876.8 884.2 670.5 Gross Profit Margin 44.3% 48.4% 52.0% 50.3% 44.8%
Slide 38: Historical Consolidated Balance Sheet
Historical 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 614.9 530.2 513.6 481.4 404.9 Property Plant & Equipment 258.2 213.8 221.9 243
Slide 39: 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 40: 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 505.7 298.3 425.7 423.2 362.2 Gross Profit Margin 54.2% 38.7% 51.6% 50.4% 51.0% Employee Cost 1
Slide 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 45
Slide 47: 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 48: 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 / Mr. Rahul Agarwal sanjay.gandhi@pearlglobal.com brinkle.shah@sgapl.net / rahul.agarwal@sgapl.net +91 9619385
Pearl Global Industries — 9MFY23 Earnings Presentation on 6ix