Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX

Sutlej Textiles & Industries — Q4 FY16 Earnings Presentation

41 slides from Sutlej Textiles & Industries's earnings presentation, 2016

  1. Slide 1: Results Presentation Q4 & FY16

    Results Presentation Q4 & FY16

  2. Slide 2: Safe Harbor

    Safe Harbor Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic developm

  3. Slide 3: Agenda

    Agenda 1 Annual Financial Performance 2 Q4 & FY16 – Key Financial Highlights 3 Q4 & FY16 – Key Business Update 4 Corporate Overview 5 Segment Presence – Yarn & Home Textiles 6 Business Outlook 3

  4. Slide 4: Annual Financial Performance

    Annual Financial Performance 4

  5. Slide 5: Total Income at new peak

    Total Income at new peak … 2,302 +10.0% 1,923 1,918 Home Textiles 4.0% 1,728 1,573 96.0% Yarn FY12 FY13 FY14 FY15 FY16 Figures in Rs Crore 5

  6. Slide 6: Highest ever profitability

    … Highest ever profitability EBITDA (Rs Cr) Net Profit (Rs Cr) +15.0% +45.5% 306 311 143 131 272 115 234 178 77 32 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 6

  7. Slide 7: … and strong leverage position

    … and strong leverage position Average Interest Rate of Term Improving Total Debt / Equity Ratio Robust Interest Coverage Loans (After TUF) 2.6 4.9 4.0 3.8 1.9 1.4 8.0% 2.5 7.2% 7.5% 7.3% 6.8% 1.1 1.1 1.8 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 7

  8. Slide 8: Strong Balance Sheet…

    Strong Balance Sheet… Growing Gross Block (Rs Cr) Increasing Networth (Rs Cr) Surging Earning Per Share (Rs) +45.7% 1,667 676 87.5 +10.1% 80.2 1,397 +25.1% 558 70.5 1,226 1,136 1,147 462 346 47.0 276 19.4 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Continuous growth pl

  9. Slide 9: …with healthier return ratios in the industry

    …with healthier return ratios in the industry Strong Return on Equity (RoE) Consistent Return on Capital Employed (RoCE) 28.0% 28.0% 23.0% 23.0% 22.0% 21.0% 21.0% 21.0% 18.0% 12.0% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 RoE = Profit After Tax /Networth RoCE = EBITDA/Capital Employed (Netw

  10. Slide 10: Highest ever Dividend in history of Company

    Highest ever Dividend in history of Company Dividend Per Share (Rs) Dividend Payout (%) 13 18% 17% 10 12% 8 8% 5 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Board recommended highest ever Dividend of Rs 13 per equity share for FY16 10

  11. Slide 11: Executive Chairman Mr. C. S. Nopany's Comments

    Executive Chairman Mr. C. S. Nopany’s Comments The Financial Year 2016 has been a challenging year due to global economic slowdown and stressed rural economy in the country. Despite these challenging times, I am pleased that Sutlej due to its strategy of focusing on operational efficiency, Organic a

  12. Slide 12: Q4 & FY16 – Key Financial Highlights

    Q4 & FY16 – Key Financial Highlights 12

  13. Slide 13: Robust year on year growth

    Robust year on year growth Total Income (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) +20.0% +14.3% +24.2% 2,302 311 143 272 1,918 115 +78.0% +16.8% +13.4% 49 558 77 478 68 27 Q4FY15 Q4FY16 FY15 FY16 Q4FY15 Q4FY16 FY15 FY16 Q4FY15 Q4FY16 FY15 FY16 13

  14. Slide 14: Profitability Highlights

    Profitability Highlights Rs. In Cr Q4 FY16 * Q4 FY15 YoY % FY16* FY15 YoY % Total income 558 478 16.8% 2,302 1,918 20.0% Raw Material Cost 312 280 1,330 1,143 Employee Cost 61 46 236 175 Other Expenses 108 84 425 328 EBITDA 77 68 13.4% 311 272 14.3% Depreciation 19 21 84 70 Finance Cost 7 14 47 53 P

  15. Slide 15: Balance Sheet Highlights

    Balance Sheet Highlights Rs. in Cr Mar – 16* Mar - 15 Rs. in Cr Mar – 16* Mar - 15 Shareholder’s Fund 676 558 Non-current assets 1,010 778 Share capital 16 16 Fixed assets 884 687 Reserves & Surplus 660 542 Long-term loans and 76 41 advances Deferred Govt. Subsidies 2 2 Non Current Investments 50 50

  16. Slide 16: Yarn segment registering strong growth

    Yarn segment registering strong growth Sales (MT) Revenue (Rs Cr) EBIT (Rs Cr) +30.4% +22.0% +8.8% 104,359 2,177 210 193 1,784 80,040 +16.8% +16.9% +7.0% 25,030 525 48 52 21,435 449 Q4FY15 Q4FY16 FY15 FY16 Q4FY15 Q4FY16 FY15 FY16 Q4FY15 Q4FY16 FY15 FY16 16

  17. Slide 17: Key financial highlights

    Key financial highlights Rs. in Cr USD mn Particulars FY14 FY15 FY16 FY14 FY15 FY16 Total Revenues 1,923 1,918 2,302 337 315 339 EBITDA 306 272 311 54 45 46 PAT 131 115 143 23 19 21 Total Assets 1,273 1,341 1,709 223 220 251 Net Worth 462 558 676 81 92 99 Long Term Debt 267 339 427 47 56 63 Total De

  18. Slide 18: Q4 & FY16 – Key Business Update

    Q4 & FY16 – Key Business Update 18

  19. Slide 19: Key Business Update and Growth Drivers

    Key Business Update and Growth Drivers Enhanced Spinning Capacity through Acquisition of Birla Textile Mills  Acquisition of Birla Textile Mills (BTM) has been successfully concluded on September 30, 2015 on receiving statutory approvals and payment consideration of Rs. 232.63 crore less term loans

  20. Slide 20: Key Business Update and Growth Drivers cont…

    Key Business Update and Growth Drivers cont… Home Textiles Division Expansion with advanced technology on track  Placed order for 20 Nos. single width looms and 20 Nos. Jaquard attachment; also placed orders for 4 No. Electronic Chenille machines, 1 No. Multi chamber stenter forming part of the exp

  21. Slide 21: Other Updates

    Other Updates Credit Rating upgrades during the Year  CARE upgrades STIL rating to CARE AA- from CARE A+ signifying high degree of safety and CARE A1+ (A One Plus) for short term bank facilities  India Ratings and Research Private Limited (FITCH Group) upgrades STIL to ―IND AA-‖; Outlook Stable fr

  22. Slide 22: Corporate Overview

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  23. Slide 23: Company Overview

    Company Overview  India’s largest Spun-dyed Yarn manufacturer and leading textile player with presence across value chain – from Yarn to Home Textile – Increasing capacity of high margin Value-Added Products - Cotton Mélange Yarn & Cotton Blended Dyed Yarn  State-of-the-art manufacturing facilitie

  24. Slide 24: Journey from spun dyed yarn manufacturer to …

    Journey from spun dyed yarn manufacturer to …  Incorporated as a result of Corporate Restructuring in  Expansion at Bhawanimandi unit by  31,104 spindles added at which Textile Division of 7,488 spindles to Chenab Textile Mills - J&K Sutlej Industries Limited manufacture PV Dyed Yarn for manufact

  25. Slide 25: Corporate Governance at the Helm

    Corporate Governance at the Helm Board of Directors Mr. C.S. Nopany Executive Chairman Mr. U.K. Khaitan Independent Non Exec Director Mr. Amit Dalal Independent Non Exec Director Mr. Rajan Dalal Independent Non Exec Director Ms. Sonu Bhasin Independent Non Exec Director Mr. Rajiv K. Podar Independen

  26. Slide 26: State of the art manufacturing facilities …

    State of the art manufacturing facilities … Chenab Rajasthan Textile Birla Damanganga Home Textile Mills Mills Textile Mills Textile Kathua, Bhawanimandi, Baddi, Daheli, Location Jammu & Kashmir Rajasthan Himachal Pradesh Gujarat  Cotton Mélange Yarns  Cotton Yarns  Cotton Yarns  Home textiles P

  27. Slide 27: Wide distribution network and marquee clientele

    Wide distribution network and marquee clientele Presence and strong brand image across globe in over 55 countries… Evolved as vendor to… Expanded global foot print in FY16… …partner to leading textile solution …De-risk over dependence on few geography providers 27

  28. Slide 28: Diverse and wide product portfolio

    Diverse and wide product portfolio  One stop shop for all kinds of spun dyed yarns  Focus on value added yarns that fetched superior realisations like Cotton Mélange Yarn, Dyed Synthetic Yarn  Diversified offerings with presence across value chain with – Yarns & Home Textile 28

  29. Slide 29: Segment Presence – Yarn & Home Textiles

    Segment Presence – Yarn & Home Textiles 29

  30. Slide 30: Yarn - Consistent capacity addition over the years

    Yarn - Consistent capacity addition over the years Spindles capacity Sales (MT) 412,968 +9.6% 104,359 377,688 +8.5% 79,666 80,040 293,736 76,334 72,346 253,000 261,736 208,104 155,456 FY05 FY08 FY12 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16  Invested in modernization - 56% of spindle age are les

  31. Slide 31: Registering strong growth in Yarn segment…

    Registering strong growth in Yarn segment… Revenue (Rs. Cr) Average Sales Realisation (Rs / Kg) 2,177 222 219 207 206 200 1,768 1,784 1,581 1,447 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 … through multiple capacity expansions as well as profitable acquisitions 31

  32. Slide 32: Acquisition of Birla Textile Mills

    Acquisition of Birla Textile Mills  Sutlej acquired Birla Textile Mills (BTM) for payment consideration of Rs. 232.63 crore less term loans − Acquisition of BTM concluded on Sep 30, 2015 on receiving statutory approvals − BTM, with a capacity of 83,376 spindles manufactures cotton, synthetic & blen

  33. Slide 33: Home Textiles – Entering Growth Orbit

    Home Textiles – Entering Growth Orbit Capacity (Million Meters Per Annum)  Entered the Home Textiles segment in 2006-07 9.6  Capacity to expand by 4.6 mmpa to 9.6 mmpa by FY17  Continued focus on driving category premiumisation  Product range includes +17.0% – Furnishing Fabrics – Curtain Fabric

  34. Slide 34: Business Outlook

    Business Outlook 34

  35. Slide 35: Business Outlook

    Business Outlook Niche Value Added  Consistent production of high margin value added products to result in greater proportion Products of Cotton Mélange and Cotton Blended Dyed Yarn in the overall mix  Acquisition of BTM & enhancing spindles capacities towards manufacturing Cotton Growing Core Bus

  36. Slide 36: Industry Discussion – Home Textiles

    Industry Discussion – Home Textiles  Global Home Textile market is estimated at USD 45 bn  India’s market share on a continuous uptrend (improved 20% points over the last five years — from 27% in 2009 to 47% in 2015) India’s Market Share on a continuous uptrend India 27 33 38 45 47 46 China 29 30

  37. Slide 37: Domestic Home Textile Industry Overview

    Domestic Home Textile Industry Overview Domestic Home Textile Market (Rs Cr) Category wise market break-up (Rs Cr) CAGR 40,780 Categories 2011 2016 (P) 2021 (P) (%) Bed Linen 8,965 13,170 19,350 8.0 +8.3% Towels 3,320 4,840 7,060 7.8 27,365 Curtains 1,850 2,975 4,790 10.0 Blankets 1,465 2,040 2,850

  38. Slide 38: Indian Textile Sector - Present

    Indian Textile Sector - Present $108 Indian Textile sector current size Billion 2nd Largest employment generator, Employs 45 mn people directly 49 Million spindles capacity across ~1,300 mills 13% Share in country’s export earnings 14% Contribution to India’s industrial production 4% Contribution to

  39. Slide 39: Indian Textile Sector Potential

    Indian Textile Sector Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 9.886 58 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Market Valu

  40. Slide 40: About Us

    About Us Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Chairman of STIL, a Chartered Accountant and Master of Science in Industrial Admini

  41. Slide 41: Thank You

    SUC) Thank You

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