Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY23 Earnings Presentation
27 slides from Sutlej Textiles & Industries's earnings presentation, Aug 10, 2022
Slide 1: Cover letter to stock exchanges: Q1 FY23 Result Presentation
SUTLEJ TEXTILES AND sutei textiles and industries limited INDUSTRIES LIMITED ‘E’ Wing, 5th/6th Floor, Lotus Corporate Park, 'E' 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
Slide 2: Sutlej Textiles and Industries Limited – Q1 FY23 Result Presentation
Sutlej Textiles and Industries Limited Leadership in Yarns, Establishing a niche in Home Textiles Q1 FY23 Result Presentation | August 2022 1
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: Q1 FY23 Result Updates
Q1 FY23 Result Updates
Slide 5: Financial Performance – Q1FY23
Financial Performance – Q1FY23 Consolidated (Rs crore) Q1FY23 Q4FY22 Q1FY22 YoY % FY22 FY21 YoY % Total Income 853 901 591 44% 3,112 1,915 63% Cost of goods sold 405 475 278 46% 1,604 1,062 51% Gross Profit 447 426 313 43% 1,508 853 77% GP margin % 52.48% 47.32% 53.01% -53 bps 48.45% 44.52% 393 bps
Slide 6: Yarn Business Highlights
Yarn Business Highlights Capacity utilisation stabilised post covid Yarn Sales stabilised Export demand continues to be strong Standalone Sales (Rs Crs) 95% 27,195 882 837 94% 578 89% 25,009 39% 47% 44% 21,892 61% 53% 56% Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Yarn Capacity U
Slide 7: Balance Sheet (Consolidated) - Highlights
Balance Sheet (Consolidated) - Highlights Decrease in overall Debt due to reduction in both Long Consistently keeping the Debt to Equity below 1x… term and Short term Debt. 920 871 907 942 898 1.15 0.97 0.91 0.95 0.86 381 291 339 0.78 464 451 539 580 569 478 447 FY18 FY19 FY20 FY21 FY22 Q1FY23 FY19
Slide 8: 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 key challenge faced by the Textile Industry has been the rising raw material prices and consequently prices of all textile products. While this is like
Slide 9: Sutlej: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years
Slide 10: Successful Yarn business, building a niche Home Textile business
Sutlej Textiles – Successful Yarn business, building a niche Home Textile business Established Value-added Yarn Player Building a strong Home Textile Brand • Largest Spun Dyed Capacity • Niche Segment Presence ✓ One of India’s largest spun dyed Yarn and leading Melange Yarn ✓ One of the few listed p
Slide 11: Key Business Verticals
Key Business Verticals Dyed Yarns SPECIALISED YARN Value Added Yarn Segment Melange Yarns SUSTAINABLE GREEN FIBRE Recycled Polyester Recycled Green fibre Staple Fibre Curtains HOME TEXTILES Upholstery Niche Segment Made Ups 10
Slide 12: 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 13: Consistently Expanding Capacities and Product Portfolio
Consistently Expanding Capacities and Product Portfolio… Backward Acquisition of Birla integration into Commenced Textile Mills Acquired Design, green fiber commercial production 31,104 spindles Sales, and Greenfield Project Modernization of of 31,104 Spindles at added at 35,280 spindles – Distribut
Slide 14: Focused on Value Added Specialty Yarn
Focused on Value Added Specialty Yarn Always Opted for Expansion into High Value Specialty Yarn
Slide 15: Among the Leading Yarn and Fabric Capacities in India
Among the Leading Yarn and Fabric 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 • 1,07,6
Slide 16: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business ▪ Leading Yarn manufacturer in India ✓ 4,20,240 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ▪ ~35% dedicated to Melange Yarn ▪ ~65% dedicated to various blends ▪ Well Diversified Product Portfolio/geographies and customers 4,20,2
Slide 17: Capex Update
Capex Update New Green Field Spinning project at J&K ✓ Currently the company is not present in Greige ( grey) product segment. In order to compliment the dyed/mélange product offering, the company needs to have grey product in its product basket. ✓ In view of the increasing demand for cotton /polyes
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 Key Statistics: Updates ✓ 120 Tonne per day Installed capacity of green fibre at ✓ Capacity utilization has been consistently Sutlej increasing quarterly to
Slide 20: Home Textile Business
Home Textile Business One of the Few Listed Curtains & Upholstery Players
Slide 21: Home Textile Business
Home Textile Business ▪ Focus on Curtains, Upholstery & Made ups ✓ One of the leading producers & exporters of Home furnishings. Increase in Loom Capacities (MMT) over past 12 yrs ✓ American Silk Mills (ASM), leading Design & Distribution Company in USA ▪ Latest Technology in design & manufacturing
Slide 22: Home Textile Business
Home Textile Business Market Penetration ✓ Participated in Heimtextile show at Frankfurt, which aided in approaching new customers. ✓ Some large converters from USA and UK showcased high level of interest in initiating business. ✓ Re- initiated discussions with customers from Bangladesh, Singapore,
Slide 23: Home Textile - “Nesterra” Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future From B2B to Retail Brand • In FY21, launched the first retail brand in its existence • Brand is marketed wholesale, addressing cut piece requirements of India’s retail sector • Currently accessible in 335 stores across 21 states. Capitalize Existi
Slide 24: Home Textile - “Nesterra” Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future New Collections ✓ Participated at Indian Home Furnishings Expo (IHF) with Nesterra – Phase 3 ✓ Nesterra- Phase 3 debuted with 12 collections capturing eyes and gaining market attention. Penetration ✓ Gained more than 200 new client’s requests at I
Slide 25: Key Highlights
Key Highlights ✓ Healthy order book position with good orders. ✓ Continued strong orders from furniture manufacturers, as the company moves into a slower spring selling season. ✓ Have taken price increase across the board to offset input costs. New Products ✓ Outdoor fabric category continues to gai
Slide 26: Awards and Accolades
Awards and Accolades ▪ Recently awards won at Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) for the following categories (2020-2021) o Fourth Best Overall Export performance Special Award o Best Export Performance 25
Slide 27: Let’s Connect
“The best preparation for tomorrow is doing your best today ” Let’s Connect Mr. Rajib Mukhopadhyay Ms. Pooja Sharma / Ms. Vinita Pandya rajibm@sutlejtextiles.com pooja.sharma@stellar-ir.com/vinita@stellar-ir.com yay Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andheri (E
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