Ghcl Textiles Ltd. · NSE:GHCLTEXTIL
Ghcl Textiles — Q4 FY24 Earnings Presentation
29 slides from Ghcl Textiles's earnings presentation, May 7, 2024
Slide 1: Investors' Presentation – Q4FY24 Business Update (exchange letter)
May 7, 2024 वैशाख – कृ ण प , चतुदशी व म 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 – 40
Slide 2: GHCL Textiles Limited Q4FY24 Investor Presentation
Integrated Team Work GHCL TEXTILES LIMITED Ownership Q4FY24 Investor Presentation May 2024 Trust Respect
Slide 3: Safe Harbour
Safe Harbour 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 wi
Slide 4: Company Overview
COMPANY OVERVIEW 3
Slide 5: Emerging as a Prominent Player in the Industry
Emerging as a Prominent Player in the Industry o Established as Sree Meenakshi Mills in 1927, journey started with acquisition of sick spinning unit in 2002, turnaround to one of India's leading yarn manufacturers and exporters. o Currently operating with 2.25 Lakh spindles, 3,320 rotors, 5,760 TFO
Slide 6: Organization & Business Structure
Organization & Business Structure 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 Industr
Slide 7: GHCL Textiles: in Numbers
GHCL Textiles: in Numbers FY24 Capacities 48% ₹ 60 Cr Revenue: ₹ 1060 Cr Ring Spindles: 2.25 lac Revenue from Value Net Debt Gross Margin: 31% Rotors: 3,320 Added Products EBITDA Margin: 8% Vortex: 480 5 Yr. Avg. Margins: 14% TFO Spindles: 5,760 2 98%+ 300+ 2,800* Manufacturing Units Capacity Utilis
Slide 8: What Set Us Apart
What Set Us Apart Supplier of bouquet of Producers of high-quality tailor- Products - Commodity to Value added 1 6 made yarns Uphold quality culture with traceability Cost benefits driven by a deeply platform 2 7 ingrained cost-conscious culture “A” grade cotton used; sourced State-of-the-art manufa
Slide 9: Expanding with Value-Added Products: Vertical Integration
Expanding with Value-Added Products: Vertical Integration Vision: Strategic Plan • Vertical integration of textile manufacturing to include knitted and woven finished fabrics which yields superior margins and integration with existing business • Product basket expansions and increase the spinning ca
Slide 10: Recovery in Cotton Yarn Spreads
Recovery in Cotton Yarn Spreads 122 95 99 28% 33% 87 90-92 44% 48% 51% 49% 48% 78 79 78 Rs./kg 72% 67% 56% 52% 49% 51% 52% FY18 FY19 FY20 FY21 FY22 FY23 FY24E FY25P FY18 FY19 FY20 FY21 FY22 FY23 FY24 Source: CRISIL Established Products Value Added Products o Spinning industry is poised for the bette
Slide 11: Committed for Future Expansions
Committed for Future Expansions New Project Projects Completed in Last 2 Years Project Project Current Cost Timeline Implication Project Description Current Status Description Status (Rs. Cr) Expected to 40k Spindles Completed 25k Spindles Q2 Ongoing 215 generate revenue of capacity addition FY2026
Slide 12: Financial Performance
FINANCIAL PERFORMANCE 11
Slide 13: Key Highlights
Key Highlights FY 24 Revenue at Rs 1060 Cr which increased by 2.2% YoY. Q4 FY 24 Revenue at Rs 288 Cr which increased by 16.8% QoQ. Q4 & FY24 25k spindles capacity addition ongoing. In FY24, cash inflows of Rs 81 Cr and invested Rs. 70 Cr on Capex. Gross Debt of Rs.72 Cr. and Net Debt of Rs. 60 Cr.
Slide 14: Financial Performance
Financial Performance Revenue EBITDA & Margin (%) PBT & Margin (%) 1,037 1,060 In Rs. Cr 255 924 213 693 671 611 112 116 91 89 70 59 71 39 35 23 16% 14% 19% 28% 7% 8% 9% 6% 12% 23% 3% 2% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 288 14 265 261 30 246 2
Slide 15: Efficient Capacity Utilisation with Increasing Exports
Efficient Capacity Utilisation with Increasing Exports Sales Volume UoM FY21 FY22 FY23 FY24 Yarn MT 26,388 28,826 28,590 33,140 Knitted Fabric MT - - 44 336 Griege Fabric Meters (‘000) - 920 5,047 11,400 Capacity Utilization % 95 98 94 98 Particulars UoM FY21 FY22 FY23 FY24 Domestic Rs. Cr 571 809 9
Slide 16: Prudent Resource Allocation
Prudent Resource Allocation Efficient Capital Allocation – FY24 Rs. 7 Crore Rs. 70 Crore Gross Debt Debt Repayment Growth Capex Rs. 72 Crore Rs. 81 Crore Cash Inflows Generated Net Debt Rs. 60 Crore Rs. 29 Crore Working Capital & Others Net Debt to Equity 0.04x Decrease in cash & cash equivalent
Slide 17: Balance Sheet Extracts
Balance Sheet Extracts Rs in Crore Particular As on March 31, 2024 Assets Non-Current Assets 1101 Current Assets 532 Total Assets 1633 Liabilities Net Worth 1386 Borrowing 72 Other Non-Current Liabilities 129 Current Liabilities 47 Total Equity and Liabilities 1633 Note: GHCL Textile has been demerg
Slide 18: Q4 & FY24 Performance - Results
Q4 & FY24 Performance - Results In Rs. Cr Particulars Q4FY24 Q3FY24 QoQ Q4FY23 YoY FY24 FY23 YoY Total Income 288 246 17% 269 7% 1060 1037 2% COGS 194 166 17% 219 (11%) 729 759 (4%) Gross Profit 94 80 18% 50 88% 331 278 19% Gross Profit (%) 33% 33% 0 bps 19% 1400 bps 31% 27% 400 bps Employee Cost 17
Slide 19: Annexure
ANNEXURE 18
Slide 20: Decade-long Expertise in Spinning: Focused on Value Creation
Decade-long Expertise in Spinning: Focused on Value Creation 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 Je
Slide 21: Diverse Product Basket: Key Product Offerings
Diverse Product Basket: Key Product Offerings 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/Polyest
Slide 22: Well Invested Manufacturing Facilities
Well Invested Manufacturing Facilities Best-in-class Manufacturing Capability at Tamil Nadu o Journey started with acquisition of sick spinning unit in 2002, turnaround to one of the most reputed mills in southern India o Yarn operation sites are in Paravai, Madurai district & Manaparai, Tiruchirapp
Slide 23: Strengthening Customer Relationship through Value Creation
Strengthening Customer Relationship through Value Creation 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 p
Slide 24: 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 23
Slide 25: Sustainable Energy Solution: Guiding Path to Excellence
Sustainable Energy Solution: Guiding Path to Excellence “ 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: 72% of energy consumption
Slide 26: Superior Credibility Through Several Certifications
Superior Credibility Through Several Certifications GIZA GRS A CMI 25
Slide 27: Macro Tailwinds to Support Growth
Macro Tailwinds to Support Growth Textiles Industry Overview Pandemic Impact & Recovery Policy-Driven Turnaround Critical sector contributing over 2% Robust demand during & post- Government initiatives & measures to total GDP & more than 12% to pandemic, driven by home-bound like technical textile s
Slide 28: Experienced Leadership Team
Experienced Leadership Team Resilient and Skilled Management Team MR. R. BALAKRISHNAN MR. N. RAJAGOPAL MR. D. RAMESH BABU MR. GAURAV V MR. LALIT DWIVEDI CHIEF EXECUTIVE OFFICER HEAD - TECHNICAL OPERATIONAL HEAD CHIEF FINANCIAL OFFICER COMPANY SECRETARY Experienced and Accomplished Board of Directors
Slide 29: Thank You
Contact Us: Mr. Manu Jain GHCL Textiles Limited Tel: +91-7042310002 Email: manujain@ghcl.co.in Investor Relations Go India Advisors THANK YOU Name: Ms. Devyanshi Dave Tel: +91-9892330743 Email: devyanshi@goindiaadvisors.com Name: Mrs. Sheetal Khanduja Tel: +91-9769364166 Email: sheetal@goindiaadviso