Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q2 FY15 Earnings Presentation
27 slides from Sutlej Textiles & Industries's earnings presentation, Nov 5, 2014
Slide 1: Q2 & H1 FY15 Results Presentation – 5th November, 2014
Q2 & H1 FY15 Results Presentation – 5th November, 2014
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic developme
Slide 3: Index
Index Q2 & H1 FY15 – Performance Update 4 Company Overview 10 Track Record – Financial and Operational 19 Outlook 22 About Us 25 3
Slide 4: Q2 & H1 FY15 – Performance Update
Q2 & H1 FY15 – Performance Update
Slide 5: Profit & Loss Abstract
Profit & Loss Abstract 5 (Rs. in crore) Particulars Q2 FY15 Q2 FY14 Shift (%) H1 FY15 H1 FY14 Shift (%) Net Revenues 459 492 (6.7) 951 935 1.7 Total Expenditure 391 408 (4.2) 814 785 3.7 EBITDA 68 84 (18.8) 137 150 (8.5) EBIDTA Margin (%) 14.8 17.0 -220 bps 14.4% 16.0% -160 bps Depreciation 16 17 (4
Slide 6: Financial Performance – Q2 & H1FY15
Financial Performance – Q2 & H1FY15 Revenue EBITDA 951 150 935 137 Figs in crore Figs in crore 84 492 459 68 Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 PAT 71 Topline performance during the quarter Figs in crore 66 moderated due to sluggish demand primarily on 43 account of fa
Slide 7: Segment-wise Performance – Q2 & H1 FY15
Segment-wise Performance – Q2 & H1 FY15 Yarns Yarns 889 899 Q2 FY15 PBIT stood at Rs. 48 crore as against Rs. 63 crore in Q2 FY14 and Rs. 98 crore in H1 FY15 as 466 433 against Rs. 108 crore in H1FY14 63 48 108 98 During H1 FY15, the Company produced 37,009 MT as against 33,494 MT during corresp
Slide 8: Chairman’s Comments
Chairman’s Comments Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said, “Our strategy of focusing on niche value added products has helped us reduce the impact of the challenges faced by the sector during the quarter. Going ahead, the commissioning of addit
Slide 9: Key Highlights – Q2 FY15
Key Highlights – Q2 FY15 Update on Capacity Expansion and Modernization Programme Company has started commercial production of its expansion project of 31,104 spindles to manufacture Value Added Cotton Mélange and Cotton Blended Dyed Yarn at its unit - Chenab Textile Mills, Kathua (J & K) w.e.f. 1
Slide 10: Key Highlights – Q2 FY15
Key Highlights – Q2 FY15 Closure of Fabric Division Shutting down operations of its Fabric division situated at Daheli, Bhilad, Gujarat in view of its unviable operations in line with Company’s strategy of focusing on profitable business ventures. The closure of Fabrics division will not have any
Slide 11: Company Overview
Company Overview
Slide 12: At a Glance
At a Glance 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
Slide 13: Company Overview
Company Overview • 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, & Home
Slide 14: Competitive Edge Over Most Other Spinning Mills
Competitive Edge Over Most Other Spinning Mills 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 Synt
Slide 15: Competitive Edge Over Most Other Spinning Mills
Competitive Edge Over Most Other Spinning Mills • 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 – producti
Slide 16: Competitive Edge Over Most Other Spinning Mills
Competitive Edge Over Most Other Spinning Mills 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 rewar
Slide 17: Operating Levers
Operating Levers 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 volatilit
Slide 18: Key Growth Drivers
Key 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 18
Slide 19: Capacity Post Expansion Plan
Capacity Post Expansion Plan Capacity (Pre) Location Type of Yarn No. of Spindles Kathua Cotton Mélange 65,000 (J&K) Man-made Fibre 107,000 Bhawani Mandi Cotton and 90,000 (Rajasthan) Man-made Fibre ~262,000 Addition Cotton Mélange ~31,000 Capacity (Post) Location Type of Yarn No. of Spindles Kathua
Slide 20: Track Record – Financial & Operational
Track Record – Financial & Operational
Slide 21: Key Financial Highlights
Key Financial Highlights 21 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%
Slide 22: Operational Performance
Operational Performance Yarns* Home Textiles ** Sales (MT) Sales (‘000 Mtrs.) 78,124 76,334 79,666 2,162 2,159 2,370 71,973 72,346 1,852 1,356 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) 147 153 160 20
Slide 23: Business outlook
Business outlook
Slide 24: Outlook – Sector
Outlook – Sector 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 • ~
Slide 25: Business Outlook
Business Outlook Niche Value Added Augmenting capacities in niche value added products to further Products & Capacity strengthen its position as a leading player in the Cotton Mélange addition and Cotton Blended Dyed Yarn segment Accentuating operations at existing locations to sharpen its focus on
Slide 26: About Us
About Us Sutlej Textiles and Industries Ltd (STIL): CIN: L17124RJ2005PLC020927 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 Processo
Slide 27: Thank You
ey THANK YOU SULIE) corn wrt renin Wet
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