S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q4 FY20 Earnings Presentation
34 slides from S.p. Apparels's earnings presentation, June 2020
Slide 1: Financial Presentation cover letter to stock exchanges
ip) S.P.-APPARELS LTD. Regd. Office: 39-A, Extension Street, Kaikattipudur, AVINASHI- 641 654, Tamil Nadu, India. Phone ; +91-4296-714000 E-mail : spindia@'s-p-apparels.com Web : www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295 29" June, 2020 The Listing Department The Listing Department BSE Limi
Slide 2: Investor Presentation: Q4 & FY20 Results Update
S.P.APPARELS LIMITED INVESTOR PRESENTATION Q4 & FY20 Results Update June 2020
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial co
Slide 4: Q4 & FY20 Results Update: Company Overview
Q4 & FY20 RESULTS UPDATE Company Overview Financial Overview & Shareholding Structure
Slide 5: Living in times of Covid-19
Living in times of Covid-19 Strong fundamentals to continue the resilient performance even during turbulent times Healthy order book as of today o Despite the uncertainties, lockdowns and supply chain disruptions the company did not witness any significant order cancellation from the garment divisio
Slide 6: Living in times of Covid-19: Impact on Financials & Operations
Living in times of Covid-19 Impact on Financials & Operations in Q4FY2020 • Supply chain disruption led to loss of revenue: Shipments were kept on hold by our international customers due to disruption in the supply chain coupled with lockdowns imposed in their respective countries. This led to reven
Slide 7: Living in times of Covid-19: Opex Management
Living in times of Covid-19 Opex Management • Cost Reduction: • The company has announced reduction of working days to the extent of 30% for staff and above cadre, including to the senior management till September 2020. • Small rented factories are in the process of consolidation into big factories,
Slide 8: Impact of Covid-19 on P&L
Impact of Covid-19 on P&L March 2020 Revenue (in Rs Mn) Quarterly Revenue (in Rs Mn) Garment Division1 Garment Division 734.1 1,849.6 -20.5 % -52.6 % 348.3 1,470.0 Q4 FY19 Q4 FY20 Mar-19 Mar-20 207.0 Retail Division Retail Division -42.1 % -38.6 % 66.5 38.5 127.2 Mar-19 Mar-20 Q4 FY19 Q4 FY20 1,262,
Slide 9: Q4 FY20 - Key Highlights
Q4 FY20 - KEY HIGHLIGHTS ❑ Total Revenues 1 declined by 21.1% on YoY basis ❑ Garment Exports Division declined by 21.6% on YoY basis as few customers kept the orders on hold due to Covid- 19 and due to supply chain disruption. ❑ SPUK Operations grew by 31.5% on a YoY basis ❑ Retail Division declined
Slide 10: FY20 Result – Key Highlights
FY20 RESULT – KEY HIGHLIGHTS FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 13.5% 15.3% 13.3% 8,309.2 9.1% 8,104.6 5.6% 1,094.5 5.3% 733.7 1,238.3 1,103.7 469.2 2.5 % 10.9 % -59.4 % 444.1 36.1 % FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 1. Tot
Slide 11: Q4 FY20 Result – Key Highlights
Q4 FY20 RESULT – KEY HIGHLIGHTS Q4 FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 13.0% 10.8% 2,146.3 13.9% 8.9% 1.7% 298.8 1,694.5 278.4 3.1% 190.9 21.1 % -34.4 % 182.7 82.7% 85.3 % 51.6 28.1 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20
Slide 12: FY20 Result – Division Wise Analysis
FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE FY19 FY20 8104.6 8309.2 Garment Exports 84.0% 84.6% 817.8 776.3 506.6 SPUK 5.9% 6.1% 481.8 Retail 10.1% 9.3% 5.1 % 5.1 % 7,026.4 6,805.0 Adj. EBITDA MARGIN % 2 FY19 FY20 Garment Exports
Slide 13: Q4 FY20 Result – Division Wise Analysis
Q4 FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn Q4 FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q4 FY19 Q4 FY20 Garment Exports 86.2% 85.6% 2146.3 207.3 1694.5 SPUK 4.1% 6.9% 89.4 127.2 Retail 9.7% 7.5% 38.7 % 117.5 31.5% 1,849.6 Adj. EBITDA MARGIN % 2 Q4 FY19 Q4 FY20 1,449.8
Slide 14: Q4 FY20 Result – Key Analysis
Q4 FY20 RESULT – KEY ANALYSIS FINANCIAL UPDATE: • Q4 FY20 total revenues1 decreased by 21.1% YoY to Rs 1,694.5 mn. • Revenues decreased by 21.6% on a YoY basis in Garment Exports division as the exports witnessed decline as the customer kept orders on hold due to lockdowns imposed in their countries
Slide 15: Q4 & FY20 Result – Consolidated Profit & Loss Statement
Q4 & FY20 RESULT – CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY20 Q4 FY19 YoY% FY20 FY19 YoY% Revenue from Operations 1,683.7 2,222.2 -24.2% 8,089.7 8,263.8 -2.1% Gain on account of Foreign Currency Fluctuations 10.82 -75.9 - 219.6 -159.1 - Total Revenues 1,694.5 2,146.3 -21.1%
Slide 16: FY20 – Consolidated Balance Sheet
FY20 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Mar-20 Mar-19 Particulars (Rs Million) Mar-20 Mar-19 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 256.9 a. Property, Plant and Equipment 3,964.8 3,107.3 Other Equity 4,975.3 4,581.7 b. Capital work
Slide 17: Company Overview
Q4 & FY20 Results Update COMPANY OVERVIEW Financial Overview & Shareholding Structure
Slide 18: Brief Profile
BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪ Strong promoter p
Slide 19: Our Evolution
OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase efficiencies and
Slide 20: Leading Exporter of Infant & Children Wear in India
LEADING EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decades • Labour intensive operations.
Slide 21: Preferred Vendor to Reputed International Brands
PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including body suits, sleep su
Slide 22: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES INTEGRATED BUSINESS LOCATION ADVANTAGE: MODEL • All 26 manufacturing facilities are located within a radius of ~125 km of our Registered Office near Product Development Tirupur (leading hub in India for knitted garments for children and exp
Slide 23: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 22
Slide 24: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 23
Slide 25: Strong In-House Design Expertise
STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and des
Slide 26: Stringent Quality Controls & Compliance
STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each piece of garment f
Slide 27: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 26
Slide 28: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL IS STRENGTHENING ITS RETAIL PRESENCE BY EXPANDING THE REACH OF CROCODILE BRAND OUR RETAIL STORE PRESENCE • SPAL undertakes manufacturing and retailing activities in India under the ‘Crocodile’ brand. • SPAL sells wide range of adult menswear products like shirt
Slide 29: Qualified Management with Deep Understanding of Apparel Sector
QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Five years of experience in the • Founder director of SPAL with 34 Founder director of SPA with 27 years textile and
Slide 30: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mr P. Yesuthasen Independent Director Independent Director • 46 years of experience in banking • 43 years of experience in banking • Masters of Science from the University of • MS in Business Administration, Cass Madras Business Sch
Slide 31: Financial Overview & Shareholding Structure
Q4 & FY20 Results Update Company Overview FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 32: Financial Overview
FINANCIAL OVERVIEW In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN 9.1% 18.4% 7.2% 8,264 8,090 15.3% 5.6% 13.3% 6,624 1,238 1,238 734 1,104 478 469 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 * Excludes exceptional item of write-off of amount considered recoverable from a b
Slide 33: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 31st March 2020 KEY SHAREHOLDERS – 31st March 2020 UTI Mutual Fund 5.18% Non-Institutions 16.8% Goldman Sachs India Ltd 4.76% Promoters 61.6% DSP Blackrock Small Cap Fund 4.81% ICICI Prudential Mutual Fund 3.67% Institutions 21.6% Aditya Birla Sun Life I
Slide 34: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Chief Financial Officer Email: balaji.v@spapparels.com Mr. Chinmay Madgulkar /Mr. Chintan Mehta IR Consultant Email: s.p.apparels@dickensonworld.com Contact no: +91 9860088296/ 9892183389