Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q1 FY2024 Earnings Presentation
37 slides from Banswara Syntex's earnings presentation, Aug 7, 2023
Slide 1: Investor Presentation
Investor Presentation Banswara Syntex Limited August 2023
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Banswara Syntex 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 invitation or in
Slide 3: Q1 FY24 Highlights
= ERTL Q1 FY24 Highlights
Slide 4: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Ravindra Kumar Toshniwal, Managing Director said “During the past quarter, the global macro environment continued to pose significant challenges. Despite this, India stood out as the most resilient economy, with domestic demand remaining
Slide 5: Q1FY24 Highlights
Q1FY24 Highlights Key Highlights Yarn Total Income* For Q1FY24, yarn sales declined by 9% YoY and grew by 6% QoQ to Rs 134cr in Q1FY24 owing to a slowdown in the general market condition Rs. 306 cr Despite the highly competitive market, the company is aggressively pushing its products in the dom
Slide 6: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q FY23 Impact on Revenue and Margins: The EBITDA margins for the quarter were influenced by Revenue from Operations 302.7 355.5 -14.9% 369.0 -18.0% 1498.8 persistently low realizations, a factor that was particularly O
Slide 7: About Us: Our Specialty is Value Added Textiles
About Us Our Specialty is Value Added Textiles
Slide 8: Our Journey
Our Journey • Commenced Operations and • Started first unit of 18 MW • Started production of Super-stretch women started Yarn production with captive thermal power plant Fabrics 12,500 spindles • Started production of Made- • Addition of additional processes to Vertical • Started Fabric Weaving unde
Slide 9: Our Global Footprint
Our Global Footprint Incorporated in the year 1976 Offering Vertically Integrated Experienced Design Teams textile solutions Europe Design Studio in Collaboration USA Japan Middle East with Italy and France 9,000+ Employees Corporate Office - Mumbai Manufacturing Plants - • Banswara, Rajasthan In Ho
Slide 10: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Capex Done Capacity Dyeing Unit 3,060 Tonnes / month Rs. 326 Crs. The Company owns YARN • 1,49,208 Spindles Weaving- 2.7Mn Meters/ month • 397 Looms Spinning Unit Processing- 4.5Mn Meters/ Rs. 228 Crs. FABRICS month 3,25,000 Trouser & Suiting's/ Month Over Rs
Slide 11: Strategically Located Facilities
Strategically Located Facilities Quality Infrastructure connectivity through Rails, Roads and Ports ensures seamless dispatches to domestic markets and exports Easy Availability of skilled and Unskilled labour Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainab
Slide 12: Leadership Team
Leadership Team Founded the Company in the year 1976. Masters in Textiles from Leeds University, UK. 55 years of experience in the Late Shri. Toshniwal textile industry. Founder Chairman Ex-Chairman of Rajasthan Textile Mills Association, Ex-President of Indian Spinners Association and Ex-Chairm
Slide 13: Board of Directors
Board of Directors Mr. Kamal Kishor Kacholia Mr. Parduman Kumar Dr. Vijay Mehta Independent Director Independent Director Independent Director Renowned industrialist. He holds a degree in A Chartered Accountant, M.A. and LLB, he is on the Renowned stockbroker and financial consultant. He Chemical En
Slide 14: Strong Professional Management Team
Strong Professional Management Team Mr. Vireshwar R. Joshi Mr. Shailendra Pandey Mr. Rahul Bhaduriya Ms. Kavita Gandhi Mr. Devendra Misra Mr. Swapnil Shrivastava Head – Yarn Division Head – Fabric Division Head – Garment Division CFO CTO DGM – Corporate HR Over 30 years of MSc – Textile Gradua
Slide 15: Business Segments
Business Segments
Slide 16: Yarn Business – The Building Block
Yarn Business – The Building Block GROWTH DRIVERS Preferred Partner for the quality Focused Customers for Synthetic Blended Yarns Multi-specialty Yarn range Integration of Banswara products into with functional features Stretch Yarns for weaving using supply chains of larger brands branded lycra and
Slide 17: Yarn
Yarn Commenting on the yarn segment, Mr. Vireshwar Joshi, Head of Yarn Division, said, “In the initial quarter of FY24, we faced moderate demand, and our spinning mills encountered some pressures. Despite the muted demand, the sales volume increased by 30% QoQ and overall revenues within the yarn se
Slide 18: Fabric Business – The Growth Engine
Fabric Business – The Growth Engine Expansion in Leveraging our Company sees favourable opportunities in Current Presence Value Added Advantages production of Comfort fabric Fabrics Worsted Stretch Fabrics Renowned player Flexibility in production due to best-in-class technology and Wool S
Slide 19: Fabric Business – Growth Plan
Fabric Business – Growth Plan Establishing a fabric brand to capitalize on the distribution network built over 3 decades Venturing into production of Knitted fabrics 01 Improved Product Mix Increasing the market share in production of high value-added Technical Fabrics Evaluation of producti
Slide 20: Fabric
Fabric Commenting on the fabric segment, Mr. Shailendra Pandey, Head of Fabric Division, said, “In Q1, the fabric division experienced subdued performance. However, we did witness encouraging demand from the domestic market and the Middle East, with the Far East market also exhibiting signs of recov
Slide 21: Garment Segment – Value Addition Division
Garment Segment – Value Addition Division GROWTH DRIVERS Garments is one of the fastest growing segments in the Textile industry COMFORT GARMENTS Move towards manufacturing of Comfort One of the Largest manufacturer of garments made from Bi Stretch/ Knitted specialized Formal Suits, Jackets and Stro
Slide 22: Garment
Garment Commenting on the garment segment, Mr. Rahul Bhaduriya, Head of Garment Division, said, “The apparel industry, overall, has been experiencing subdued demand. Large retailers are actively de-stocking their inventory, a trend that persists. These efforts are proving to be fruitful, and we anti
Slide 23: Domestic Clientele
Domestic Clientele E-Commerce Clients 23
Slide 24: International Clientele
International Clientele jiev's| PEERLESS CLOTHING PHILIPS VAN HEUSEN. Korea and Japan DOCKERS ir KOHES ‘expect great things © AY | kMmacys||JCPenney}| TARGET = ah\/ & S DOUGLAS &GRAHAME TESCO DUNNES STORES oars M kmart. 24
Slide 25: CSR Activities
CSR Activities Creation of garden in Banswara to provide locals with a means of recreation Cleaning of lake near the garden to increase the oxygen level of the water body. This has helped in the reduction of mosquitos and has brought back migratory birds Creation of a walking path of 5 KM along the
Slide 26: Strategic Focus and Outlook
Strategic Focus and Outlook
Slide 27: Industry expected to grow at ~11% CAGR over the next 5 years
Industry expected to grow at ~11% CAGR over the next 5 years Indian Domestic Apparels and Textiles Market (USD bn) • Domestic textile and apparel industry faced a range of challenges post 191 13 covid induced lockdowns; fall in retail sales, logistical disruptions, 10.3% manufacturing shutdown and c
Slide 28: China +1 provides huge opportunity for Indian Textiles Industry
China +1 provides huge opportunity for Indian Textiles Industry Increasing exports Increased Domestic Production India Textiles exports expected With the improvement in domestic to grow at ~11% CAGR to reach economy and increase in exports, Domestic $ 65 bn by 2026 from pre-covid Production is expec
Slide 29: Why Banswara Syntex Ltd?
Why Banswara Syntex Ltd? Modernized outlook to textiles and fashion 01 Focus on export and 40+ years of industry experience domestic markets led by a competent leadership 06 02 team Investment Rationale Consistently Lowering Debt Skilled design and marketing 05 03 teams 04 Transition to Value Added
Slide 30: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara 01. Sustainability 02. Geographic Expansion 03. Economies of Scale 04. Improved Supply Chain Co- ordination 05. Product Specialization 06. Competitive Pricing 07. Significantly Lesser Lead Times 08. Covers All Requirements – One Stop Shop 30
Slide 31: Operational Focus
Operational Focus Improvement in Capacity Utilization Cost Optimisation Measures Increase in Value Added Products • Demand improvement across textile • Switched to grid power as thermal power cost • Structural shift in demand towards quality value chain across domestic and has increased fabrics Inte
Slide 32: FY24: The Road Ahead
FY24 : The Road Ahead Revenues Revenue Breakup PBDT 1,499 1,400-1,450* 12% 9%-10% 17% 1,207 25% 23% 181 140-150 803 47% 39% 37% 111 60 33% 37% 37% 3% 1% 1% FY22 FY23 FY24E FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E Garments Yarn Fabric Others Target is to Banswara is well placed increase revenue to c
Slide 33: Financials
Financials
Slide 34: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs FY23 FY22 FY21 FY20 Revenue from Operations 1,498.8 1,189.8 786.6 1,289.5 Other Income 14.6 17.0 16.2 12.9 Total Income 1,513.4 1,206.7 802.8 1,302.4 Total Expenditure Raw materials 628.8 526.9 375.1 601.3 Employee Expense 286.3 220.9 153.1 241.7 Power
Slide 35: Key Balance Sheet Items
Key Balance Sheet Items Net Debt* (Rs. Crores) Debt-Equity Ratio* Increase in debt was on account of the following reasons: 585 3.2 557 Increase in working capital 2.9 479 due to increase in trade receivables in all the 2.2 business segments 328 339 244 262 1.4 Additional term loan of Rs 17 Cror
Slide 36: Dividend Payout History
Dividend Payout History Dividend (%)* 20% 20% 30% 30% 50% 60% 32.6 31.1 EPS DPS 14.2 13.7 8.5 4.9 2.5 3.0 1.0 1.0 1.5 1.5 FY18 FY19 FY20 FY21 FY22 FY23 The company has Consistently declared dividends Year-on-Year 36 *Dividend % has been calculated using FV Rs. 5
Slide 37: Investor Relations Contact
Company: Investor Relations Advisors: Banswara Syntex Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Ms. Kavita Gandhi Ms. Brinkle Shah Jariwala/Mr. Rahul Agarwal secretarial@banswarasyntex.com Brinkle.shah@sgapl.net / rahul.agarwal@sgapl.net +91 96