Sangam (india) Limited · NSE:SANGAMIND
Sangam (india) — Q3 FY24 Earnings Presentation
35 slides from Sangam (india)'s earnings presentation, Feb 3, 2024
Slide 1: Intimation to Stock Exchange cover letter
SANGAM (INDIA) LIMITED CIN : L17118RJ 1984PLC 003173 E - mail : secretarial@sangamgroup.com Website : www.sangamgroup.com I Ph : +91-1482-245400-06 Ref: SIL/SEC/2023-24 Date: 3rd February, 2024 The Manager The Manager, Department of Corporate Services Department of Corporate Services, The National S
Slide 2: Q3-FY24 Investor Presentation
Q3-FY24 Investor Presentation Sangam (India) Limited February,2024 1
Slide 3: Safe Harbor
Safe Harbor The presentation has been prepared by Sangam (India) Limited (the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basi
Slide 4: Table of Contents
Table of Contents 1 About the Company 05 2 Investment Thesis 06-20 3 Financials 21-27 4 Annexures 28-34 3
Slide 5: Management Commentary
Management Commentary “We have delivered good results in a challenging time. Our Industry continues to face headwinds due to subdued demand and complexities in the yarn business. However, it is noteworthy that positive indicators, exemplified by favorable domestic cotton prices relative to global ma
Slide 6: Sangam: Weaving the future
Sangam: Weaving the future India’s largest fastest growing and most trusted brand in Textile Sector Performance Metrics o Strong Expertise: 4 decades of Industry experience. o Skilled Employee Base: Workforce of 12,000+ skilled employees. 10% 15% o Marquee Clients: Jockey, Decathlon, Walmart, Mango,
Slide 7: Investment Thesis
Investment Thesis Integrated textile player Significant focus on and present across textile sustainability. Value Chain. Moving up value chain One of the largest increasing focus on value manufacturer of PV dyed added products. Yarn and Denim Fabric. High quality products at Creating shareholder com
Slide 8: Value Added Textile Player: Moving Towards Margin Expansion
Value Added Textile Player: Moving Towards Margin Expansion End Market Revenue categorization from Operations (%) 1% 2% 2% 1% 1% 1% 2% 3% 3% 3% 19% 16% 21% 21% 22% 22% Last 6 Years (FY 18- FY 23) Our Achievements 18% 22% 21% 22% 26% Increased focus on high Value 25% 12% Products 12% 12% 16% 18% 17%
Slide 9: Present Across Textile Value Chain
Present Across Textile Value Chain Yarn PV Fabric 562 2,98,944 • Prominent manufacturer of • Annual production capacity of Weaving Machine Spindles PV dyed Yarn 50MMPA. (as of Dec’23) • Price maker in PV dyed yarns • High Speed air jet weaving • 100% Cotton Yarn machines. 1 2,664 • Annual production
Slide 10: Production Quantity & Capacity Utilization %
Production Quantity & Capacity Utilization % Yarn PV Fabric Denim Fabric Garment (MT) (Lakh Meter) (Lakh Meter) ( lakh pcs) 79.70% 87.40% 91.00% 28.50% 3QFY24 3QFY24 3QFY24 3QFY24 20,867 95 109 10 72.60% 2QFY24 27.48% 87.70% 2QFY24 79.10% 2QFY24 2QFY24 9 21,205 78 95 22.20% 1QFY24 87.40% 93.30% 85.9
Slide 11: Yarn – Global Leader
Yarn – Global Leader • Global leader in PV Export yarn to 29+ Established Distribution In 1995 initiated backward integration Key Highlights dyed yarn. countries. Network. into spinning • Price Maker. Yarn 2,98,944 Spindles 2,664 Rotors 1,13,496 MTPA Capacity (as a% of Revenue) Yarn production capac
Slide 12: Garment – Revenue increased 4.4x in 6 years
Garment – Revenue increased 4.4x in 6 years • India’s largest • Innerwear and • 4.10 MMPA garments D2C model is becoming a significant demand Key Highlights manufacturers of Activewear for both manufactured in FY 23 driver for garments Seamless Garments. men and women. • 2000+ touchpoints. • Cutting
Slide 13: Denim Fabric – Revenue increased 2.2x in 6 years
Denim Fabric – Revenue increased 2.2x in 6 years • Producers of wide range of denim fabric ranging from 4Ozs to 15Osz. • Sustainable and innovative product range with key focus on R&D Denim Fabric Key Highlights • Working with value added yarns taking advantage of in-house yarn (as a % of Revenue) c
Slide 14: Synthetic Fabric – Significant Market Share
Synthetic Fabric – Significant Market Share • Significant market share in processing PV, PV Lycra, PVW, Strong Distribution Polyester woolen & 100% wool. Network: 10,000+ Key Highlights • Working with value added yarns taking advantage of in- Dealers house yarn capabilities. Synthetic Fabric with Pr
Slide 15: Significant Focus on Sustainability
Significant Focus on Sustainability • Annually consuming 12,500MT cotton and other waste to minimize our Recycle environmental footprint. • Currently 30,000MT per annum of recycled fiber comes through recycling of 38,400MT plastic waste. • Established Institutes and University. Empowering community
Slide 16: Diversified And De-Risk Business Model
Diversified And De-Risk Business Model Product Wise Sales Contribution FY23 Geographical Presence FY23 Segment Wise Sales Contribution FY23 3% 4% 2% 22% Rest of World 28% 34% 25% India 72% 16% 94% PV Yarn Cotton Yarn Denim Fabric Woven Fabic with processing India Rest of World Sale of products Sale
Slide 17: Creating Shareholder Value
Creating Shareholder Value Return Ratio Margin Expansion 13% 25% 11% 10% 9% 9% 20% 8% 18% 8% 8% 15% 10% 4% 9% 4% 3% 3% 5% 5% 6% 3% 3% 1% FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 ROCE ROE EBIT Margin EBITDA Margin Note: ROCE is calculated as Earning before Interest and Tax divided
Slide 18: Comfortable Debt Repayments: Funded from Internal Accruals
Comfortable Debt Repayments: Funded from Internal Accruals Debt Repayment Schedule (INR Cr.) Interest Coverage ratio 120 4.96 109 96 4.12 61 51 1.18 1.17 0.76 0.84 FY 24 FY 25 FY 26 FY 27 FY 28 FY18 FY19 FY20 FY21 FY22 FY23 • Debt repayment through internal accruals on path to reach turnover of INR
Slide 19: Strong Presence in a Growing Sector
Strong Presence in a Growing Sector Forecast Global Textile Market Size INR190bn INR44bn 5.67%CAGR 755.58 PLI scheme Outlay through PM MITRA 717.66 681.83 to Textile Industry scheme 646.73 611.11 573.45 750,000 2.3% Employment Contribution of textiles opportunities in Textile industry to India’s GDP
Slide 20: Vision 2026: Moving up the Value Chain – Fabric & Garments
Vision 2026: Moving up the Value Chain – Fabric & Garments Garment Garment 3% 6% Yarn 33% Yarn 42% Segment wise Sales Segment wise Sales Contribution FY24 Contribution FY26 Fabric 55% Fabric 61% Spinning Fabric Garment • High ROE • Focus on Value Added Product • Capex to drive long term growth 19
Slide 21: Capacity Expansion To Drive Future Growth
Capacity Expansion To Drive Future Growth Cotton Expansion Project Capital Outlay: INR0.85bn Garment Project Deployed 56 machines to garment manufacturing Topline Denim Expansion Capital Outlay: INR1.80bn Increased Denim Fabric Production by 12MMPA and savings in 4,000 Cr. Estimated for FY 26 Projec
Slide 22: Financials
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Slide 23: Consolidated Q3 & 9M FY24 Financial Performance
Consolidated Q3 & 9M FY24 Financial Performance Revenue EBITDA PBT PAT 3% -18% -77% -78% 19 59 18 Q3FY24 48 621 605 4 4 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 -5% -35% -73% -73% 2,028 231 100 1,927 125 9MFY24 149 27 34 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 (Rs. in
Slide 24: Consolidated H1FY24 Balance Sheet Highlights
Consolidated H1FY24 Balance Sheet Highlights Net Debt to EBITDA (x) Net Debt to Equity (x) Total Asset to Equity (x) 9.07 2.48 H1FY24 2.35 0.94 4.33 0.89 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 0.90 0.82 2.55 2.45 2.64 1.90 FY23 FY22 FY23 FY22 FY23 FY22 FY23 23
Slide 25: Consolidated Q3 FY24 Financial Performance
Consolidated Q3 FY24 Financial Performance Particulars (Rs in Cr) Q3FY24 Q3FY23 YoY% 9M FY24 9M FY23 YoY% Revenue from Operations 621.10 605.00 3% 1,926.94 2,027.60 -5% Total Expenditure 572.66 546.14 5% 1,778.15 1,796.92 -1% EBITDA 48.44 58.86 -18% 148.79 230.68 -35% EBITDA Margin % 7.80% 9.73% -2b
Slide 26: Product wise price realization
Product wise price realization Yarn (INR/kg) PV Fabric (INR/Meter) 141 289 128 130 129 264 273 245 116 111 230 229 110 110 220 208 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Denim Fabric (INR/Meter) Garment (INR/pc) 331 201 198 191
Slide 27: Consolidated H1FY24 Balance Sheet
Consolidated H1FY24 Balance Sheet Particulars (Rs in Cr) H1FY24 H1FY23 Particulars (Rs in Cr) H1FY24 H1FY23 (a) Equity Share Capital 50.25 45.05 Non-Current Assets (b) Share Warrant 0 23.40 Property, Plant and Equipment 913.92 654.95 ‘(c) Other Equity 916.89 766.64 Right of Use Assets 1.63 2.74 Tota
Slide 28: Annexure
Annexure 27
Slide 29: Strong Presence in Rajasthan
Strong Presence in Rajasthan Location Facilities Atun, Bhilwara Weaving, Processing & Garment Plant Biliya Kalan, Bhilwara Biliya Kalan, Bhilwara Denim Weaving & Processing Plant Biliya Kalan, Bhilwara Spinning Plant Unit-I Sareri, Bhilwara Spinning Plant Unit-II Soniyana, Chittorgarh Spinning Plant
Slide 30: Leadership
Leadership Mr. Ram Pal Soni Dr. S.N. Modani Mr. Vinod Kumar Sodani Mr. Anurag Soni Mr. Pranal Modani FOUNDER & VICE CHAIRMAN ED & CEO (FABRIC & MANAGING DIRECTOR CEO (YARN & DENIM CHAIRMAN GARMENT BUSINESS) BUSINESS) • 30 years of rich • Holds a Ph.D. in strategic • Managing PV Suiting and •Leads Sa
Slide 31: Leadership
Leadership Mr. Sudhir Maheshwari Mr. Yaduvendra Mathur Dr. T.K. Mukhopadhyay Mr. A. Karati Mrs Aparna Sahay INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR •With a 34 year long career •Former Officer of Indian •Served 30 years, Chief •Worked i
Slide 32: Historical Income Statement
Historical Income Statement Particulars (Rs in Cr) FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Revenue from Operations 1,648.38 1,873.53 1,790.11 1,358.97 2,437.76 2,712.30 Total Expenditure 1,523.68 1,714.3 1,628.58 1,236.83 2,130.38 2,410.73 EBITDA 124.70 159.23 161.53 122.14 307.38 301.57 EBITDA Margin %
Slide 33: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs in Cr) FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Particulars (Rs in Cr) FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 (a) Equity Share Capital 39.42 39.42 39.42 43.42 43.42 45.05 Non-Current Assets (b) Share Warrant 0 0 0 0 25.65 23.40 Property, Plant and Equipment 698.63 64
Slide 34: Our Customers
~ Our Customers _@
Slide 35: Thank You
Thank You Sangam (India) Ltd Name: Mr Arjun Agal Tel: +91 9252145210 Email: arjunagal@sangamgroup.com Investor Relations Go India Advisors Name: Ms. Vandini Tated Tel: +91-9024433893 Email: vandini@goindiaadvisors.com Name: Ms. Saloni Ajmera Tel: +91-9930577801 Email: saloni@goindiaadvisors.com Name