Siyaram Silk Mills Limited · NSE:SIYSIL
Siyaram Silk Mills — H1 FY2023 Earnings Presentation
31 slides from Siyaram Silk Mills's earnings presentation, November 2022
Slide 1: Investor Presentation Q2 & H1FY23 - November 2022
Investor Presentation Q2 & H1FY23 - November 2022 SIYARAM SILK MILLS LIMITED www.siyaram.com 1
Slide 2: Agenda
04 About Us 10 16 Business Overview- At a Glance Rationale- A sustainable Roadmap Discussion 24 Q2 & H1FY23 Results Summary 2
Slide 3: Disclaimer
Disclaimer The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate Vision only as of the date it was originally issued. The figures mentioned in the data are rounded off. Siyaram Silk Mills Limited (“Siyaram” or
Slide 4: About Us
About Us Q2 & H1FY23 Results –November 2022 SIYARAM SILK MILLS LIMITED 4 www.siyaram.com
Slide 5: About Us – One of the longest serving brands in Textiles
About Us – One of the longest serving brands in Textiles The Company was incorporated in 1978 and is headquartered in Mumbai, India. The Company benefits from having the longest surviving and resilient serving portfolios of brands within India. Siyaram Silk Mills Limited is amongst India’s most reno
Slide 6: An inclusive growth Approach
An inclusive growth Approach ESG DRIVEN Vision To provide quality products and to be a name, synonymous with high fashion in India and across the globe. As our contribution, we comply with corporate social responsibility, ensure business sustainability, and keep our business ethical and transparent.
Slide 7: A sustainable business Model
A sustainable business Model It’s not only what WE DO, but HOW WE DO IT Underpenetrated Markets Higher Introduce Asset Fabrics Asset T/O Tier II, III cities Light Garments Nurture Mix of Mass and Better Premium Product Margins offerings Indigo yarn* & Knitted fabrics Expand MBO outlets Multiple prod
Slide 8: A sustained journey….reflects in numbers
A sustained journey….reflects in numbers Revenue 2% Gross Profit 10% Robust Growth EBITDA 8% growth over CAGR PAT 17% the years (FY18-22) Cash Accruals 12% Book Value (₹ 2 F.V) 8% R = 225 R = 99 G = 34 G = 99 Lead to…. B = 38 B = 101 EBITDA Margin 15% A sustainable PAT Margin 6% Ratios journey RoCE
Slide 9: Four Decades of serving quality brands
Four Decades of serving quality brands Launched multiple brands Ventured into the and sub brands like Mistair readymade garment and Royal Linen fabric. segment by introducing Launched J.Hampstead in Oxemberg. Launched readymade garments J. Hampstead with blend of wool suiting fabrics in 2010-19 Indi
Slide 10: Business Overview- At a Glance
At a Glance Business Overview- Q2 & H1FY23 Results –November 2022 SIYARAM SILK MILLS LIMITED 10 www.siyaram.com
Slide 11: Business Verticals- Fabrics lead the way
Business Verticals- Fabrics lead the way Product Categories Capacity (p.a) (In-house) Revenue Break up (₹ Mn) *FY21 was impacted by Covid-related production disruptions 206 902 646 2574 665 Looms, Outsourced 4066 1079 Fabrics 79.5mn mtrs (15-20%) 4020 3452 702 1164 15540 13026 13372 12384 Garments 5
Slide 12: Business Verticals-Products offerings
Business Verticals-Products offerings GARMENT / FABRICS Men Apparels Mass: Siyaram, Mistair Mass: Siyaram’s- Mozzo Product Category & Premium: J. Hampstead, Siyaram Royal Premium: Oxemberg Brands Linen Super Premium: J. Hampstead Super Premium: CADINI R = 225 Owned/ Franchise Owned Brand Owned Brand
Slide 13: Brands and Sub Brands- Personifying personalities
Brands and Sub Brands- Personifying personalities R = 225 R = 99 G = 34 G = 99 B = 38 B = 101 New Offerings Bamboo Fabrics for Shirtings 13
Slide 14: Strengths: Built over time
Strengths: Built over time Continuous, Constant & Conscious efforts have fortified the strengths Complete Value Chain Asset T/O* (X) 5.3 5.0 Yarn Fabric Garment 4.2 3.8 4.0 3.4 3.1 3.0 2.8 2.0 1.5 An optimum mix of In-house and Outsourcing makes 1.0 it a scalable and Asset-light model FY19 FY20 FY21
Slide 15: Building over Asset Light Model
Building over Asset Light Model Going the Franchise and MBOs way, getting away with COCO which is asset-heavy A distribution ecosystem which focuses on Tier II/III cities and regions, providing a better returns on investments Increasing EBOs (non SoR) network 83 89 57 4 40 Dealers Distributors Insti
Slide 16: Rationale- A sustainable Roadmap
Roadmap Rationale- A sustainable Q2 & H1FY23 Results –November 2022 SIYARAM SILK MILLS LIMITED 16 www.siyaram.com
Slide 17: Investing In Siyaram
Investing In Siyaram Sustainable Growth charted on the lean Balance sheet Fabric & Garment To Continue Systematic Distribution The Growth Momentum Framework Exhibits Sustainable Growth Outlook - Volume growth will keep the momentum - Receding with COCO model - Consolidating Unorganised players’ - MB
Slide 18: Fabric & Garment to continue the growth Momentum
Fabric & Garment to continue the growth Momentum Fabrics to remain the dominant contributor; Gradual premiumisation would be a key catalyst. FABRIC 146.5 146.6 153.3 139.4 136.4 ❑ Siyaram’s fabric segment maintains the lion’s share in total revenue. Fabrics have been consistently Highest Volume 93.4
Slide 19: Fabric & Garment to continue the growth Momentum
Fabric & Garment to continue the growth Momentum Garments revival on the cards Garment ❑ Siyaram’s garment vertical is directed toward the company’s effort of moving Garment up the value chain according to changes in customer preferences. ❑ Garments formed 15-20% of the revenue in FY18-22. This vert
Slide 20: Systematic Distribution Framework Exhibits Sustainable Growth Outlook
Systematic Distribution Framework Exhibits Sustainable Growth Outlook Company realigned its Distribution framework to impart more qualitative growth Benefits Strategy Purpose EBOS with SoR Receding COCO To remain Asset 83 89 stores Light & Utilise Capital for growing 57 core business 40 4 Discontinu
Slide 21: Focussed On Qualitative Growth
Focussed On Qualitative Growth An all inclusive growth – Profitability, Balance sheet and Cash Flows RoCE & RoE (%) D/E (x) 0.9 25.3 15.7 16 22.7 0.65 Prudent Capital Allocation 0.56 16.4 10.4 strategy coupled with immerse 13.4 3.5 0.27 sales strategy has helped the 9.4 0.6 0.21 company to not only
Slide 22: Promising Long-term growth prospects for Industry
Promising Long-term growth prospects for Industry Global Textile and Apparel Trade India’s Domestic Textile and Apparel Market USD Bn USD Bn R = 225 R = 99 G = 34 G = 99 B = 38 B = 101 In 2020, the global textile and apparel trade was US$ 774 bn., which was 8% lower compared to 2019 due Indian domes
Slide 23: Promising Long-term growth prospects for Industry
Promising Long-term growth prospects for Industry Advantage Siyaram Man-Made Fibre has been consistently outperforming natural fibre growth over the last 10 years. This propels an exciting opportunity for Siyaram to encash on it. Siyaram is one of the leading players in Polyviscose R = 225 within In
Slide 24: Q2 & H1FY23 Consolidated Result Highlights
Q2 &H1FY23 Consolidated Result Highlights Q2 & H1FY23 Results –Noevmebr 2022 SIYARAM SILK MILLS LIMITED 24 www.siyaram.com
Slide 25: Q2FY23- Key Highlights
Q2FY23- Key Highlights Revenue up by 32% led by overall EBIDTA up by 41% PAT up by 52% performance Revenue Mix of EBIDTA margin 20% R = 225 R = 99 Fabric: Garment: G = 34 for Q2FY23 G Garment = 99 volumes yarn/knitting B = 38 increased by B = 101 up by 92% YoY 69: 25: 6 128bps Debt / Equity Ratio: F
Slide 26: Q2FY23- Result Highlights
Q2FY23- Result Highlights ₹ Mn Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 1287.2 801.3 6,358 4,804 911.3 528.9 32% 20.0% 13.0% 41% 19.0% 11.0% 52% R = 225 R = 99 G = 34 G = 99 B = 38 B = 101 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 1. Revenue for Q1FY23 was higher by 32% YoY. It was le
Slide 27: Q2FY23- Result Highlights
Q2FY23- Result Highlights Revenue Mix (rs. Mn) Volumes Share of Premium Products 23.4 23.6 27% 4358.8 3829.0 24% 8.9 1596.2 5.9 790.0 R = 225 R = 99 382.7 2.4 177.3 G = 34 1.2 G = 99 B = 38 B = 101 Fabrics Garment Yarn / Knitting Fabrics Mn Mtrs Garment Mn Mtrs Yarn/Knitting Lac Kgs Q2FY22 Q2FY23 Q2
Slide 28: H1&Q2FY23- Profit & Loss Statement
H1&Q2FY23- Profit & Loss Statement Particulars (In ₹ Mn) Q2FY23 Q2FY22 YoY % H1FY23 H1FY22 YoY% Revenue 6357.6 4803.7 32% 10349.0 7135.1 45% Other Income 93.2 65.0 43% 167.6 140.9 19% COGS 3646.6 2698.3 35% 5855.6 3878.2 51% Gross Profit 2711.0 2105.4 29% 4493.4 3256.9 38% Gross Margin % 43% 44% (10
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (In ₹ Mn) FY22 H1FY23 Asset (In ₹ Mn) FY22 H1FY23 Equity Non-Current Assets 93.7 93.7 Property, Plant & Equipments 4460.9 4730.3 Equity Share Capital Capital Work in Progress 202.2 23.8 Other Equity 10206.5 9246.1 Investment Properties 141.2 149.6 Total Equity
Slide 30: Financials- At a Glance
Financials- At a Glance PAT (₹ Mn) & PAT (%) Revenue EBITDA (₹ Mn) & EBITDA (%) 11.2% 19031 18147 17328 16982 19.1% 15.7% 14.9% 6.4% 5.6% 10875 12.0% 4.2% 2125 8.8% 3634 2724 2695 2034 1116 1012 717 0.5% 956 53 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT PAT Margin (%) EBITDA EBITDA Margin
Slide 31: Thank You!
Thank You! William Fernandes Company Secretary Email id: William.fernandes@siyaram.com Manoj Saha/ Rahul Jaju Director / Analyst Cell No. 9819860835 / 9773264172 Email id: siyaram@dickensonworld.com Surendra Shetty CFO Email id: Surendra.shetty@siyaram.com DICKENSON IR www.dickensonworld.com SIYARAM