Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY23 Earnings Presentation
28 slides from Sutlej Textiles & Industries's earnings presentation, May 5, 2023
Slide 1: Cover letter to stock exchanges: Q4 & FY23 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: Sutlej Textiles and Industries Limited Q4 & FY23 Result Presentation
Sutlej Textiles and Industries Limited Leadership in Yarns, establishing a niche in Home Textiles Q4 & FY23 Result Presentation May 2023 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: Q4 & FY23 Result Updates
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Slide 5: Financial Performance – Q4 & FY23
Financial Performance – Q4 & FY23 Consolidated (Rs Crore) Q4FY23 Q3FY23 Q4FY22 YoY % FY23 FY22 YoY % Total Income 752 670 901 -17% 3,100 3,112 0% Cost of goods sold 457 365 475 -4% 1,658 1,604 3% Gross Profit 295 305 426 -31% 1,442 1,508 -4% GP margin % 39.22% 45.49% 47.32% - 46.52% 48.45% -193 bps
Slide 6: Yarn Business Highlights: Q4FY23
Yarn Business Highlights : Q4FY23 Capacity utilisation nearing optimum Yarn Volumes picking up Switched Focus to Domestic market levels Consolidated Sales (Rs Crs) 28,306 95% 27,086 890 665 744 94% 91% 22,522 47% 39% 45% 53% 61% 55% Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Dome
Slide 7: Yarn Business Highlights: FY23
Yarn Business Highlights: FY23 Capacity utilisation at optimum levels Yarn volumes almost at par Switched Focus to Domestic market Consolidated Sales (Rs Crs) 93% 3076 3074 93% 1,04,445 1,00,871 44% 43% 56% 57% FY22 FY23 FY22 FY23 FY22 FY23 Domestic Exports Yarn Capacity Utilization (%) Yarn Sales (
Slide 8: Balance Sheet (Consolidated) – Highlights
Balance Sheet (Consolidated) – Highlights Consistently keeping the Debt to Equity below 1x… Modest increase in overall Debt Levels 0.97 0.95 920 871 907 942 951 1.00 0.91 0.90 0.86 0.86 381 291 339 464 0.80 556 0.70 539 580 569 0.60 478 395 0.50 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Long
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: “For the Indian Textile Sector, Fiscal 2023 was a mixed bag. After a strong Fiscal 2022, we entered the year with geopolitical tensions and soaring raw mate
Slide 10: Sutlej: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years
Slide 11: 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 12: 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 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… Backward Acquisition of Birla integration into Commenced Textile Mills Acquired Design, green fiber commercial production 31,104 spindles Sales, and Modernization of of 31,104 Spindles at added at 35,280 spindles – Distribution Home Textile Fa
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 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 • 1,12,6
Slide 17: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business Leading Yarn manufacturer in India 4,22,208 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ~37% dedicated to Melange Yarn ~63% dedicated to various blends Well Diversified Product Portfolio/geographies and customers 4,20,2
Slide 18: 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 19: Sustainable Green Fibre Unit
Sustainable Green Fibre Unit Backward integration into recycle fibre to meet captive demand
Slide 20: 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 and currentl
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 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 23: Home Textile Business: Increase in Penetration
Home Textile Business Increase in Penetration Increased wallet share with existing customers by placing new SKUs which have a casual style and more relevant to market. Exhibited at the Readymade Market Week for the first time, with a good response and footfall, plan to exhibit twice each year to
Slide 24: 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 • ‘Nesterra’ has established itself as a prominent player in the industry through its fastest grown distribution network • Have developed seamless ordering portal
Slide 25: Home Textile - “Nesterra” Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future Market Penetration Currently present With a total of 461 retail points and 19 collections in the market Marketing and Advertising Nesterra being a young brand has adopted social media as a key channel for marketing. Organized the Sheer Love
Slide 26: Key Highlights
Key Highlights Market Penetration Aviation and display markets continue to be strong New Designs & Products Focused on developing contract, drapery and jobber product Re-introducing ASM trunk show program that builds a fabric line from archives. Continue to develop new looks in Velvet segmen
Slide 27: Awards and Accolades
Awards and Accolades Sutlej Textiles & Industries Limited was honored to accept the Council for Export Award 2021 - 22 by The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) in the following categories • Synthetic & Rayon Dyed Yarns (Gold Trophy) • SRTEPC Special Award (Brass Trophy) 26
Slide 28: Let’s Connect
“Strive not be success, but rather to be of value-Albert Einstein ” 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, An
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