Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Investor Day (November 2018)
28 slides from Sutlej Textiles & Industries's investor day presentation, Nov 22, 2018
Slide 1: Exchange filing cover letter for investor presentation
SUTLEJ TEXTILES AND INDUSTRIES LIMITED su 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) 4219 8830 E-mail info@sutlejtextiles.com Website : www
Slide 2: Charged to Grow Higher - Investor & Analyst Meet 2018
Sutlej Textiles and Industries Ltd. Charged to Grow Higher Investor & Analyst Meet 2018 22 Nov 2018 1 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: Sutlej
Sutlej Creation of a Strong Foundation over the years 3 3
Slide 5: Year gone by
Year gone by… Past few quarters saw unprecedented shift in structural changes in Indian Economy with DeMo, GST, Liquidity Crises and Oil Prices Trade war between two largest economies in the world impacted global sentiments and growth projections It was challenging environment with VUCA (Volat
Slide 6: Headwinds in last 2 years
Headwinds in last 2 years GST Demonetisation Implementation Foreign Crude price Exchange movement Fluctuations Increase in Power & Fuel Cost VUCA Trade War Witnessing Gradual Improvement in Business Environment 5
Slide 7: Business Verticals
Business Verticals Sutlej Textiles and Industries Ltd Value Home Added Textiles Yarns Melange Dyed Yarns Curtains Upholstery Made Ups Yarns 6
Slide 8: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Leading spun dyed & Melange Utilization in Industry Yarn Manufacturer in India Better RM & Power through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Home Te
Slide 9: Focussed on Value Added Speciality Yarns
Focussed on Value Added Speciality Yarns Always opted for expansion into high value speciality yarns 8
Slide 10: Yarn Capacities
Yarn Capacities Nearly 32% of the spindleage and 67% of the fabric weaving machines commissioned in the last decade, assuring high technological Bhawanimandi, Rajasthan relevance. • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.1 MW Kathua, J&K • 1
Slide 11: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 4,18,680 Dyed Yarn Spindles 35% dedicated to Melange Yarn 65% dedicated to various blends 418,680 Well Diversified Product Portfolio Marquee clients like Page Ind
Slide 12: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 11
Slide 13: Home Textile - Emerging Business
Home Textile - Emerging Business Focus on Curtains, Upholstery & Made ups Leading producer & exporter of Home Decor Continuous Increase in Spindle Capacities Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA Latest Technology in design & manufacturing State of
Slide 14: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Expanding Product Portfolio Adding wider width printing machines Better Designs Digital Printing capabilities Sheer Material Steaming & Washing Made-ups Fancy Yarn Embroidery Establish Geographic Presence Improving Design
Slide 15: American Silk Mills (ASM)
American Silk Mills (ASM) Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) Stabilizing Operations Working on improving margins Building Customers Confidence Re-gaining customer confidence lost due to liquidity position before acquisition
Slide 16: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 15
Slide 17: Backward Integration into Green Fibre
Backward Integration into Green Fibre Captive PSF – A Key Raw Material Utilisation for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity 120 MT / Day CAPEX Rs. 189 crore Location – land acquired Baddi, Himachal Pradesh Expected Commercial Production Q1FY20-21 Fulfil 75% of Captive R
Slide 18: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost Installed Roof Top Solar plant of 2.1 MW at new unit in Bhawanimandi, Rajasthan, additional capacity of 0.60 MW under commissioning Resulting ~40% less per unit cost compared to State Tariff Solar Plant at Bhawanimandi, Rajashthan 17
Slide 19: Sutlej 2.0 – Growth Strategy
Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation 18
Slide 20: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth Total Income Total Debt Networth Total Debt Total Debt to Equity 2,510 1,200 4.73 1,047 5.00 1,000 907 4.00 1,705 800 738 652 3.00 1,047 600 809 738 349 1.87 2.00 652 400 156 1.15 1.00 200 0 0.00 FY08 FY13 FY18 FY08 FY13 FY18 Growth financed from Re-investment of
Slide 21: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key • Integration with ASM • Opportunities into •Strong Balance Sheet Raw material cost Forward Integration • Product Portfolio •Generate better Return expansion to strengthen • Opportunities in new Ratio’s Home Textiles Business Speciality Ya
Slide 22: Great Leadership Leads to Great Success
Great Leadership Leads to Great Success MR. C.S. NOPANY MR. S.K. KHANDELIA MR. UPDEEP SINGH CHATRATH EXECUTIVE CHAIRMAN PRESIDENT & CEO DEPUTY CEO 21
Slide 23: Enhancing value for Stakeholders
Enhancing value for Stakeholders Dividend Per Share (Rs) Dividend Payout (%) FY14 8 FY14 12 FY15 10 FY15 17 FY16 13 FY16 18 FY17 13 FY17 16 FY18 13* FY18 23 * Dividend declared Rs.1.30 on FV of Rs.1 per share post split. Depiction is for visual and comparative purpose only 22
Slide 24: Annexure - Financials
Annexure - Financials 23
Slide 25: Performance Highlights
Performance Highlights *The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence FY2017-18 is first yT/F9 12 Tf1 0 0 1 282.82 36.936 Tm1 g1 G[(18 )-19(is first yfirstQqfirso(tion0.
Slide 26: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY14 1.4 FY14 4 FY15 1.1 FY15 3.8 7.5% 7.3% FY16 1.2 FY16 4.9 6.8% FY17 5.2 6.2% 6.2% FY17 1.3 FY18 4.8 FY18 1.15 FY14 FY15 FY16 FY17 FY18 25
Slide 27: Balance sheet
Balance sheet Gross Block (Rs Cr) Net worth (Rs Cr) Adjusted EPS (Rs.1 per share) FY14 1,226 FY14 462 FY14 8.0 FY15 1,397 FY15 558 FY15 7.1 FY16 1,650 FY16 683 FY16 8.8 FY17 1,985 FY17 816 FY17 9.6 FY18 2,067 FY18 907 FY18 6.9 26
Slide 28: Thank You
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! 27
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