Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q1 FY22 Earnings Presentation
26 slides from Sutlej Textiles & Industries's earnings presentation, Aug 2, 2021
Slide 1: Cover letter to stock exchanges for Q1FY22 result 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: Reinvent & Rebound: Q1FY22 Result Presentation
Reinvent & Rebound Q1FY22 Result Presentation | July 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: Q1 FY22 Result Updates
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Slide 5: Financial Performance – Q1 FY22
Financial Performance – Q1 FY22 Consolidated (Rs crore) Q1FY22 Q4FY21 QoQ % Q1FY21* YoY % FY21 Total Income 591 688 -14% 197 199% 1915 Raw material cost 278 374 -26% 108 157% 1062 Gross Profit 313 314 0% 89 251% 853 GP margin 53.01% 45.58% 743 bps 45.24% 777 bps 44.52% Employee cost 95 89 7% 57 67%
Slide 6: Yarn Business - Highlights Q1FY22
Yarn Business- Highlights Q1FY22 Continued better utilization levels & Subdued volume offtake due to Covid Continue to focus on Export market realisations… 2nd wave Standalone Sales (Rs Crs) 93% 89% 188 671 578 28,732 21,892 36% 39% 45% 43% 8,674 64% 61% 55% Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22
Slide 7: Balance Sheet (Consolidated) - Highlights
Balance Sheet (Consolidated)- Highlights Consistently keeping the Debt to Equity below 1x… ….Marginal increase in Finance cost 0.94 0.95 0.96 907 937 862 12.25 276 339 392 11.99 586 569 545 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q1FY22 Long Term Short Term Debt Equity (x) ✓ The Debt to Equity ratio continues t
Slide 8: Key Ratios - Last 5 years
Key Ratios- Last 5 years Average Interest Rate of Term Loans Comfortable Total Debt/Equity Ratio (x) (After TUF) FY21 0.95 6.8% 6.7% FY20 0.91 6.2% 6.2% 6.2% FY19 0.98 FY18 1.15 FY17 1.30 FY17 FY18 FY19 FY20 FY21 ✓ Both the key ratios have been improving over the years 7
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 textile sector witnessed sharp recovery with improved demand in domestic as well as export markets particularly in grey yarn segment with gradual openi
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: 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 ✓ Acquisition of American Silk Mills (ASM), leading Design & Distribution Company in USA ▪ Latest Technology in design &
Slide 22: Home Textile Business – Current Market Scenario
Home Textile Business – Current Market Scenario Acquired Design,Domestic Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC market (ASM) ✓ In the domestic market now 75% of stores are open. Normal movement has resumed with minor limitations. ✓ Expect recovery of dema
Slide 23: Home Textile Business – Key Initiatives
Home Textile Business – Key Initiatives New Products ✓ Initiated a whole line of Mélange textiles (for bedding and upholstery) utilizing in-house yarns thus creating synergies. ✓ Planning to develop distinct product line in bedding and made-up category. ✓ Increasing thrust on coated products like Bl
Slide 24: NESTERRA – Home Textile Brand
NESTERRA – Home Textile Brand Plan going forward ✓ ‘Nesterra’ 2.0 collections to be introduced with a broad product variety and offering in the domestic market ✓ Creating better reach of the brand by targeting sub distributors who can stock all SKUs. ✓ Plan to execute several schemes for cut length
Slide 25: Customer Penetration
Customer Penetration ✓ Have opened 84 new accounts in the quarter. ✓ Strong Order Book position, orders coming from some large retailers like Hickory Chair, Norwalk, Ethan Allen, Sherril, Thayer-Coggin, Century ✓ Have received placements from Bernhardt Furniture Company and commitments from other cl
Slide 26: Let’s Connect
“You can if you think you can!” 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 400 093 For more info
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