Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q2 FY2020 Earnings Presentation
36 slides from Sutlej Textiles & Industries's earnings presentation, Nov 7, 2019
Slide 1: Cover letter to stock exchanges
SIFILEJ "I'EX'IlLES AND INDUSTRIES LIMITED suue 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 Websi
Slide 2: Re-inventing itself: Result Presentation Q2 & H1FY20
Sutlej Textiles and Industries Limited Re-inventing itself Result Presentation | Q2 & H1FY20 November 2019
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: Q2 FY20 Results Highlights
Q2 FY20 Results Highlights Improving efficiencies… 3
Slide 5: Results Highlights (Consolidated) – Q2 & H1FY20
Results Highlights (Consolidated) – Q2 & H1FY20 Total Income (Rs Cr) EBITDA (Rs Cr) 1,345 1,311 128 112 709 667 644 74 62 50 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 PBT (Rs Cr) 46 38 35 26 12 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 4
Slide 6: Results Highlights (Consolidated) – Total Debt and Finance Cost
Results Highlights (Consolidated) – Q2 & H1FY20 Total Debt (Rs Cr) Finance Cost (Rs Cr) 916 839 31 780 22% 24 348 309 243 15 13 11 567 530 537 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Q1FY19 Q1FY20 H2FY20 Long Term Short Term ✓ Total Debt has reduced by Rs.136 crore in the last 1 year ✓ Finance cost reduc
Slide 7: Profitability Highlights
Profitability Highlights Standalone Consolidated Particulars H1 H1 (Rs. In Crs) Q2 Q1 QoQ chg Q2 Q1 QoQ chg FY20 FY19 FY20 FY20 % FY20 FY20 % Total Income 634 656 -3% 644 667 -3% 1311 1345 EBITDA 63 51 24% 62 50 24% 112 128 EBITDA % 9.9% 7.7% 218 bps 9.6% 7.5% 218 bps 8.6% 9.5% PBDT 52 38 37% 51 37
Slide 8: Key Performance Highlights – Q2 FY20 & H1FY20
Key Performance Highlights – Q2 FY20 & H1FY20 Yarn Sales (in MT) Avg. Yarn Realization (Rs/kg) Domestic & Export Revenues (Rs Crs) 29,262 55,793 54,995 436 385 221 221 27,424 27,571 219 217 239 191 194 212 867 893 448 458 435 Q2FY19Q1FY20Q2FY20 H1FY19H1FY20 Q2FY19 Q1FY20 Q2FY20 H1FY19 H1FY20 Domesti
Slide 9: Executive Chairman’s comments
Executive Chairman’s comments Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The challenging business environment continued with subdued domestic demand and falling exports due to the global slowdown. Sutlej continued its efforts of cost
Slide 10: Sutlej: Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years 9
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 to + 6
Slide 12: Key Milestones
Key Milestones Commenced commercial production of 31,104 Acquisition of Birla Spindles at Chenab Textile Textile Mills Acquired Design, Sales, Mills, J&K to manufacture and Distribution (DS&D) Backward Cotton Mélange and 35,280 spindles – business along with integration Cotton Blended Dyed Yarn comm
Slide 13: Business Verticals
Business Verticals Dyed Yarns Value Added Yarns Melange Yarns Curtains Home Textiles Upholstery Made Ups 12
Slide 14: 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 cost through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Ho
Slide 15: Experienced Team
Experienced Team 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 Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Rajiv K. Podar Mr. Rohit Dhoot Mr. Ashok
Slide 16: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 15
Slide 17: Yarn Capacities
Yarn Capacities • Ability to handle variety of RM with different counts • Work very closely with customer to fulfil requirements • Manufacture to Sale and not to Bhawanimandi, Rajasthan Stock • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW Kat
Slide 18: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business ▪ Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities ✓ 4,20,840 Dyed Yarn Spindles ▪ 35% dedicated to Melange Yarn ▪ 65% dedicated to various blends ▪ Well Diversified Product Portfolio 4,20,840 ✓ Marquee clients like Page In
Slide 19: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 18
Slide 20: Home Textile - Emerging Business
Home Textile - Emerging Business ▪ Focus on Curtains, Upholstery & Made ups ✓ Leading producer & exporter of Home Decor Continuous Increase in Loom Capacities ✓ Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA ▪ Latest Technology in design & manufacturing ✓ State of Art
Slide 21: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Branding • Developed new brand identity to launch high end collection under own brand
Slide 22: Home Textiles Business - Way Forward
Home Textiles Business- Way Forward AcquiredInitiatives Design, Sales, andandWay Distribution (DS&D) forward forbusiness Home along with Business Textiles brand of American Silk Mills LLC (ASM) ▪ Certifications ✓ Obtained certifications like Oeko Tex, ISO 9001, ISO 14001, ISO 45001 to meet requireme
Slide 23: Building Organization
www.americansilk.com Building Organization 22
Slide 24: American Silk Mills (ASM)
American Silk Mills (ASM) AcquiredInitiatives Design, Sales, andandWay Distribution (DS&D) forward forbusiness ASM along with brand of American Silk Mills LLC (ASM) ▪ Consumer focused Design & Development ✓ Design archive of 100,000 images exist and accessible dating back to 1896 ✓ Relaunch of ASM w
Slide 25: American Silk Mills (ASM) (Contd…)
American Silk Mills (ASM) AcquiredInitiatives Design, and Sales, Way and Distribution forward (DS&D) business along with brand of American for ASM (Contd…) Silk Mills LLC (ASM) ▪ Simplify Supply Chain ✓ Streamlining processes and leveraging the cost of strategic partners ✓ Establish alliances with s
Slide 26: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 25
Slide 27: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive PSF – A Key Raw Utilisation Material for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day CAPEX (estimated) Rs. 189 crore Location (adjacent to our existing yarn manufacturing u
Slide 28: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost ▪ Installed Roof Top Solar plant of 2.7 MW at new unit in Bhawanimandi, Rajasthan, ▪ Resulting in over 70% saving in per unit power cost compared to State Tariff Solar Plant at Bhawanimandi, Rajashthan 27
Slide 29: Sutlej 2.0 – Growth Strategy
Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation 28
Slide 30: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth Total Income Total Debt Networth Total Debt Total Debt to Equity 2,642 1,200 4.73 5.00 942923 954 1,000 4.00 1,705 738 780 800 652 1,311 3.00 600 809 738 923 349 1.87 2.00 780 400 652 156 200 0.98 0.82 1.00 0 0.00 FY08 FY13 FY19 H1FY20 FY08 FY13 FY19 H1FY20 Delev
Slide 31: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key • Improving performance • Opportunities into •Deleverage overall Debt Raw material cost of ASM & integration Forward Integration to strengthen financing with Sutlej position • Opportunities in new • Product Portfolio Speciality Yarns •Gene
Slide 32: Annexure - Financials
Annexure - Financials 31
Slide 33: 5 year Performance Highlights
5 year Performance Highlights Revenue EBITDA PAT FY15 1,918 FY15 272 FY15 115 FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510 FY18 281 FY18 113 FY19 2,642 FY19 240 FY19 58 The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence FY 2017-18 is first year of consolida
Slide 34: Balance sheet Ratios
Balance sheet Ratios Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY15 1.1 FY15 3.8 FY16 1.2 FY16 4.9 7.5% 7.3% FY17 5.2 FY17 1.3 6.8% 6.8% FY18 FY18 4.8 6.2% 6.2% 1.15 FY19 4.2 FY19 0.98 H1FY20 4.6 H1FY20 0.82 33
Slide 35: Appreciation and Awards
Appreciation and Awards AWARD FOR EXPORT PERFORMANCE DURING 2018-2019 ▪ Gold Trophy for highest exports of yarn (Processed Yarns) in category II by TEXPROCIL ▪ Special Achievement Award – Gold Trophy AWARD FOR EXPORT PERFORMANCE DURING 2017-2018 ▪ Silver Trophy for Second highest exports of Cotton y
Slide 36: THANK YOU! Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect Mr. Bipeen Valame Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andheri (East), Mumbai 400 093 35
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