Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2021 Earnings Presentation
32 slides from Sutlej Textiles & Industries's earnings presentation, May 11, 2021
Slide 1: Exchange filing cover letter for Q4 & FY21 results presentation
SUTLEJ TEXTILES AND INDUSTRIES LIMITED Lotus Corporate Park, ‘E’ Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai 400 063, INDIA. Phone : (022) 4219 8800/6122 8989 Fax (022) 42198830 E-mail : info@sutlejtextiles.com Website: www.sutlejtextiles.com CIN. : L17
Slide 2: Enhancing Capabilities Q4FY21 Result Presentation
Enhancing Capabilities Q4FY21 Result Presentation | May 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q4 & FY21 Result Updates
Q4 & FY21 Result Updates
Slide 5: FY21 Highlights - Enhancing Capabilities
FY21 Highlights - Enhancing Capabilities Backward Integration: Commercialization of the Green Fiber Plant to aid Margin Expansion Strengthen Balance Sheet: Debt to Equity continued to remain below 1x Efficient Finance cost management: Finance cost reduced to Rs.38 crores in FY21 from Rs.46 crores in
Slide 6: Financial Performance - Q4 & FY21
Financial Performance - Q4 & FY21 Consolidated (Rs crore) Q4FY21 Q3FY21 QoQ % Q4FY20 YoY % FY21 FY20 YoY % Total Income 688 557 24% 545 26% 1915 2442 -22% Raw material cost 374 303 24% 296 26% 1062 1363 -22% Gross Profit 314 254 24% 249 26% 853 1079 -21% GP margin 45.58% 45.55% 3 bps 45.61% -3 bps 4
Slide 7: Continued Recovery in Yarn Business, Post Covid-19
Continued Recovery in Yarn Business, Post Covid-19 Capacity utilization at pre-Covid levels… …with improving Demand Scenario… …both in Domestic and Export markets Standalone Sales (Rs Crs) 93% 28,732 529 542 671 26,515 23,877 36% 32% 36% 85% 84% 64% 68% 64% Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
Slide 8: Strengthening the Balance Sheet
Strengthening the Balance Sheet Consistently keeping the Debt to Equity below 1x… ….Lower Finance cost despite increase in Total Debt (Rs Cr.) 0.98 0.91 0.95 46 -17% 920 871 907 38 381 291 339 539 580 569 FY19 FY20 FY21 FY20 FY21 Long Term Short Term Debt Equity (x) ✓ The Debt to Equity ratio has co
Slide 9: From the Executive Chairman's Desk
From the Executive Chairman’s Desk Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The Company has successfully navigated the challenging market dynamics that prevailed in the fiscal 2020-21 due to Covid19 pandemic. The successful commiss
Slide 10: Sutlej - Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years
Slide 11: Sutlej Textiles - Overview
Sutlej Textiles - Overview Largest Spun Dyed Capacity Patronage of Renowned K.K.Birla group ✓ India’s largest spun dyed Yarn Manufacturer ✓ Part of a reputed group with excellent Corporate Governance and ✓ One of the leading manufacturer of Melange Yarn Experienced Management Niche Presence Exports
Slide 12: Key Business Verticals
Key Business Verticals SPECIALISED YARN Dyed Yarns Value Added Yarn Segment Melange Yarns SUSTAINABLE GREEN FIBRE Recycled Polyester Recycled Green fibre Staple Fibre Curtains HOME TEXTILES Upholstery Niche Segment Made Ups 11
Slide 13: Guided by Industry Veterans and Experienced Management
Guided by Industry Veterans and Experienced Management Board of Directors Mr. C.S. Nopany Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Executive Chairman Independent Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Non-Execut
Slide 14: Consistently Expanding Capacities and Product Portfolio
Consistently Expanding Capacities and Product Portfolio… Acquisition of Birla Backward Commenced commercial Acquired Design, Textile Mills integration into production of 31,104 Sales, and Distribution (DS&D) green fiber Spindles at Chenab Textile 35,280 spindles – Mills, J&K to manufacture business
Slide 15: Focused on Value Added Specialty Yarn
Focused on Value Added Specialty Yarn Always Opted for Expansion into High Value Specialty Yarn
Slide 16: Among the Leading Yarn Capacities in India
Among the Leading Yarn Capacities in India ✓ Our manufacturing facilities are capable to handle a variety of Raw Material, having different Counts ✓ We work very closely with our Customers to fulfil requirements and on the ethos, ‘Manufacture to Sale and Not to Stock’ Kathua, J&K Baddi, Himachal Pra
Slide 17: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business ▪ Leading Yarn manufacturer in India ✓ 4,20,384 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ▪ ~35% dedicated to Melange Yarn ▪ ~65% dedicated to various blends ▪ Well Diversified Product Portfolio 4,20,384 ✓ Marquee clients like
Slide 18: Sustainable Green Fibre Unit
Sustainable Green Fibre Unit Backward integration into recycle fibre to meet captive demand
Slide 19: Improving Operating Efficiency by Backward Integration
Improving Operating Efficiency by Backward Integration… Captive Utilisation RPSF – A Key Raw Material for Sutlej Bottle Flake Fibre Yarn Fabric Building a Sustainable Green Fibre Plant for captive use Details • Likely to fulfil ~65% of the Capacity to produce raw white and black recycled fibre capti
Slide 20: With Commercialization of the Green Fibre Plant – Mar'21
…With Commercialization of the Green Fibre Plant – Mar’21 The Green Fibre Unit having a capacity of 120 MT/day, commenced Commercial Production in March 2021 19
Slide 21: Home Textile Business
Home Textile Business One of the Few Listed Curtains & Upholstery Players
Slide 22: Home Textile Business
Home Textile Business ▪ Focus on Curtains, Upholstery & Made ups ✓ One of the leading producers & exporters of Home Decor Increase in Loom Capacities (MMT) over past 12 yrs ✓ Acquisition of American Silk Mills (ASM), leading Design & Distribution Company in USA ▪ Latest Technology in design & manufa
Slide 23: Home Textile Business – Key Initiatives
Home Textile Business – Key Initiatives Encouraging response for the Cut length service ✓ Our brand ‘Nesterra’ has been well received in the Domestic market and there is continuous demand for new collections. ✓ Launched “Nesterra” Website- www.nesterra.com Market Penetration ✓ Despite travel restric
Slide 24: Home Textile Business – Key Initiatives
Home Textile Business – Key Initiatives Acquired Design, Sales, Widening and Distribution the product portfolio (DS&D) business along with brand of American Silk Mills LLC (ASM) ✓ One of the sought players in the flat woven category and getting recognition from domestic and international players. ✓
Slide 25: NESTERRA – Home Textile Brand
NESTERRA – Home Textile Brand About the Brand Through ‘Nesterra’ creating exclusive collections with differentiated unique product offering with 180 SKUs ✓ Nesterra’ introduced three new collections viz. ▪ The Global Traveller: Captures the essence of traditions around the world. ▪ Silken Roots : Lu
Slide 26: NESTERRA Website launched
NESTERRA Website launched- www.nesterra.com Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) ✓ Developed fully integrated Web Site for rich consumer experience to look & feel and select latest collection and fitment online. 25
Slide 27: Home Textile Business – Market Penetration
Home Textile Business – Market Penetration MakingSales, Acquired Design, inroadsand across the globe (DS&D) business along with brand of American Silk Mills LLC Distribution (ASM) ✓ Have successfully placed more than 1000 SKUs in prominent markets despite the spread of Covid-19. This is 50% more SKU
Slide 28: www.americansilk.com
www.americansilk.com
Slide 29: American Silk Mills (ASM)
American Silk Mills (ASM) New Channels ✓ Had placed nearly 90 new SKU with furniture manufacturers. Have received initial orders for market samples and swatches. ✓ Have launched 350 Designer Books and Mini Books to support sales force. ✓ Plan to launch additional mini books for distribution over the
Slide 30: American Silk Mills (ASM)
American Silk Mills (ASM) Operational Efficiencies ✓ Improved Gross Margins by over 300 bps during the year 2020. ✓ Have reduced expenses and focused on Inventory reduction. Revamp of Sales force ✓ Adding experienced sales force for more representation and more coverage Synergy with Sutlej Home Text
Slide 31: Key Ratios
Key Ratios Average Interest Rate of Term Loans Comfortable Total Debt/Equity Ratio (x) (After TUF) FY17 1.30 6.8% 6.7% FY18 1.15 6.2% 6.2% 6.2% FY19 0.98 FY20 0.91 FY21 0.95 FY17 FY18 FY19 FY20 FY21 ✓ Both the key ratios have been improving over the years 30
Slide 32: Let's Connect
“Progress each day adds to up to big results.” Let’s Connect Mr. Bipeen Valame Ms. Pooja Sharma / Ms. Hina Agarwal bipeenvalame@sutlejtextiles.com pooja.sharma@stellar-ir.com / hina@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andheri (East), Mumbai 400 09
Sutlej Textiles and Industries — Q4 FY2021 Earnings Presentation on 6ix