Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Q2 FY24 Earnings Presentation
55 slides from Pearl Global Industries's earnings presentation, November 2023
Slide 1: Investor Presentation November 2023
Pearl Global Industries Limited Investor Presentation November 2023 1
Slide 2: Safe Harbour
Safe Harbour This presentation has been prepared by and is the sole responsibility of Pearl Global Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitat
Slide 3: Q2 & H1 FY24 Highlights
PEARL GLOBAL Excooding Expectations. Always headlines! we, | Q2 & H1 FY24 | : Highlights
Slide 4: Message from the Management
Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “We are happy to report highest ever quarterly revenue since the inception. The board of Directors of the company have declared second interim dividend of Rs. 12.50 per equity share
Slide 5: Highlights
Business Highlights Q2 & H1 FY24 H1 FY24 Revenue: Rs. 1,854.8 Crs, up 8% YoY H1 FY24 Adj. EBITDA Margin stood at 8.8%, +180 bps YoY Q2 FY24 Revenue: Rs. 960.6 Crs, up 12% YoY Q2 FY24 Adj. EBITDA Margin stood at 8.3%, +220 bps YoY Highest ever Quarterly and Half yearly revenue since inception on acco
Slide 6: Highest Ever Consolidated Group Performance – H1 FY24
Highest Ever Consolidated Group Performance – H1 FY24 Revenue Adj EBITDA In Rs. Crs. 8.7% 1,854.8 7.0% 1,711.4 5.2% 163.9 COVID-19 Impact 1,117.5 119.6 4.0% COVID-19 Impact 816.4 3.2% 606.0 58.1 33.0 19.6 H1FY20 H1FY21 H1FY22 H1FY23 H1FY24 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY24 EBITDA EBITDA Margin
Slide 7: Highest Ever Consolidated Group Performance – Q2 FY24
Highest Ever Consolidated Group Performance – Q2 FY24 Revenue Adj EBITDA In Rs. Crs. 8.3% 960.6 6.8% 5.9% 860.3 6.1% 79.4 681.3 COVID-19 Impact 3.9% 52.5 435.6 450.7 COVID-19 Impact 39.9 30.7 16.8 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 EBITDA EBITDA Margin(%)
Slide 8: Improved Financial Metrics
Improved Financial Metrics Working Capital Days Inventory Days 66 67 73 63 68 57 59 38 33 13 FY20 FY21 FY22 FY23 H1 FY24* FY20 FY21 FY22 FY23 H1 FY24* Debtor Days Creditor Days 59 60 59 48 49 50 45 39 30 24 FY20 FY21 FY22 FY23 H1 FY24* FY20 FY21 FY22 FY23 H1 FY24* • Ratios are calculated on sales 8
Slide 9: Consolidated Financial Parameters
Consolidated Financial Parameters Networth (Rs. Crs.) Gross Debt (Rs. Crs.) Net Gearing Ratio (Times) 743 753 564 0.67 0.59 615 448 514 530 0.48 481 357 374 316 325 0.39 0.21 0.04 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 S
Slide 10: Consolidated Performance Highlights H1 FY24
Consolidated Performance Highlights H1 FY24 Geographical Revenue Split (Rs in Crs) No. Of Pieces Shipped (Mn pieces) Product wise Split 3,158 2,714 25.7 24.9 1,104 934 1,855 58% 55% 63% 59% 1,685 69% 1,491 476 825 771 2,055 1,780 1,379 42% 41% 45% 860 37% 720 31% FY20 FY21 FY22 FY23 H1 FY24 H1 FY23
Slide 11: Regular Dividend Payout
Regular Dividend Payout Dividend 16.9% 9.6% 15.8% 10.9% 43.2%^ Payout The Company has finalised a FY20 & FY21 dividend policy wherein the Due to impact of Covid-19, 68.7 Company will declare dividend of the Company has restrained at least 20% of the consolidated from giving dividend to profit after
Slide 12: Upgradation of Credit Rating by ICRA
Upgradation of Credit Rating by ICRA Credit Rating The Rating upgrade factors in: ▪ Consistent healthy performance of Pearl Global over the last two years despite the evolving demand slowdown in Type of Existing Revised its key market, the US, amid inflationary pressure which Credit Rating is affect
Slide 13: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Profit and Loss (in Rs. Crs) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1 FY24 H1FY23 Y-o-Y Revenue from Operations 960.6 860.3 11.7% 894.2 7.4% 1,854.8 1,711.4 8.4% Cost of Goods Solds 532.2 465.9 452.7 984.9 939.7 H1FY24 Revenue increased by 8.4% YoY: Gross Profit 428
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet In Rs. Crs. Assets Sep-23 Mar-23 Liabilities Sep-23 Mar-23 Non Current assets Equity Property, Plant and Equipment 341.1 288.2 Equity Share capital 21.7 21.7 Capital work-in-progress 37.5 33.1 Other Equity 711.8 700.8 Investment Property 56.8 57.4 Other Intangible Asset 2.
Slide 15: Consolidated Cash Flow
Consolidated Cash Flow Particulars (Rs. Crs) Sep-23 Sep-22 Net Profit Before Tax 103.1 75.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 65.9 47.0 Operating profit before working capital changes 169.0 122.5 Changes in working capital 162.0 155.3 Cash generated from Operatio
Slide 16: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Profit and Loss (in Rs. Crs) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Revenue from Operations 218.5 300.5 -27.3% 257.5 -15.1% 476.0 628.4 -24.3% H1FY24 Revenue decreased by 24.25% YoY: Cost of Goods Solds 105.1 163.0 118.3 223.4 342.3 • Shifting of sa
Slide 17: Standalone Balance Sheet
Standalone Balance Sheet In Rs. Crs. Assets Sep-23 Mar-23 Liabilities Sep-23 Mar-23 Non Current assets Equity Property, Plant and Equipment 141.4 128.2 Equity Share capital 21.7 21.7 Capital work-in-progress 10.7 6.9 Intangible assets 2.0 1.6 Other Equity 354.4 359.2 Investment Property 56.8 57.4 To
Slide 18: Standalone Cash Flow
Standalone Cash Flow Particulars (Rs. Crs) Sep-23 Sep-22 Net Profit Before Tax 16.7 29.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items 18.4 10.5 Operating profit before working capital changes 35.1 39.4 Changes in working capital 72.8 56.2 Cash generated from Operations 107.
Slide 19: Company Overview
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Slide 20: About Us
About Us Incorporation: Multi-National Presence : Founded in 1987, Pearl Global is a leading apparel Across 8 countries such as India, Indonesia, manufacturer offering end-to-end sustainable Bangladesh, Vietnam, USA, Spain, Hong Kong solutions to the fashion industry and U.K. Robust Design Team: Div
Slide 21: What We Do
What We Do C Customized Solutions: The biggest pillar for our operations is providing customized solutions as per your need Strong Analytics: Facts driven analytics help us drive insights and conclusion for projects Infrastructure: State-of-the art renewable technology has been installed in all fact
Slide 22: Our Journey
Our Journey • Established import and • 2014: Incorporation of • 1987: Pearl Global Commencement of Acquisition of Alpha distribution in the U.S.A. Pearl Bangalore started operations Prudent, Bangladesh unit in BD and U.K. • 2016: Commencement of • 1998: Established • Establishment of Norp 1 in opera
Slide 23: Our Vision, Mission & Goal
Our Vision, Mission & Goal Vision Mission Goal To be the Global Leader To continuously exceed To innovate the way Fashion is providing end-to-end supply customer and shareholder created across the Globe chain solutions to the fashion expectations by strategically industry driving sustainability, tec
Slide 24: Product Profile
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Slide 25: Product Portfolio Across Categories
Product Portfolio Across Categories Gender wise Split Woven Knits Dress, Tops, Top, Shirt, Long Shirt, Dress Skirts, Sweater ,T Shirt, Women Sleepwear, Huddie, legging Jogger Shirt, Sleepwear, T Shirts, Hoodies Men Pyjama, Polo Tshirt Boys Shirts T Shirt, 2 Pc Set PRODUCT WISE SPLIT (Mn Pieces)* T S
Slide 26: Manufacturing Facilities & Key Clientele
Manufacturing Facilities & Key Clientele
Slide 27: Global Presence Across 8 Countries
Global Presence Across 8 Countries UNITED KINGDOM SPAIN USA (NEW YORK) DESIGN & SALES ACROSS BANGLADESH HONG KONG 8 COUNTRIES GUATEMALA MANUFACTURING SET UP ACROSS 4 VIETNAM COUNTRIES INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA 27
Slide 28: Manufacturing Facilities
Manufacturing Facilities Capacity Location No of Units Utilization % Annual Capacity as on Specialization Revenue % FY23 (Blended) FY23 In-House Partnership 16.0% Woven and Knit products including women’s fashion wear, men’s wear and India 7 - 88% 24.6 mn pieces p.a. kid’s wear. South factories make
Slide 29: Key Clientele
Key Clientele Large Format Stores High Fashion Speciality Retailers 29
Slide 30: Management Team
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Slide 31: Pioneers of Our Vision
Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 31
Slide 32: The Leaders Behind Our Mission
The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 32
Slide 33: Core Team
Core Team Sanjay Sarkar Rajesh Ajwani Dr. Mahesh Seth Pankaj Bhasin Sundeep Chatrath Gurusankar Gurumoorthy Country Director - Bangladesh Commissioner Indonesia Vice President – US CEO- Woven India CEO-Knits India CEO-Vietnam Operations Vikas Mehra Jeff Kreindel David Ayala Jo Hales CEO-Bangladesh E
Slide 34: Key Industry Growth Driver & Way Forward
Key Industry Growth Driver & Way Forward
Slide 35: Key Takeaways
Key Takeaways USA EU UK Japan • In July’23, US apparel • EU apparel imports in • In July’23, Japan’s apparel July’23 were US$ 7.7 Bn • UK apparel imports in imports were US$ 7.7 Bn imports were US$ 1.9 Bn. which is 6% lower than July’23 were US$ 1.5 Bn. whereas in August’23, which is similar to that
Slide 36: China +1 provides huge opportunity for Textiles and Apparel Players
China +1 provides huge opportunity for Textiles and Apparel Players With the improvement in Covid-19 and geopolitical situations domestic economy and have led to redistribution of global increase in exports, trade shares and recalibration of Domestic Production is sourcing partners expected to incre
Slide 37: Government Initiatives
Government Initiatives 1 PLI Scheme • Scheme was approved with a total outlay of Rs 107bn • Likely to provide incentives,~3-11% on incremental revenue yoy for 5 years on greenfield as well as brownfield investments PM MITRA Scheme 2 • Under the scheme, 7 mega parks will be set up in the country over
Slide 38: Our Unique Propositions
Our Unique Propositions Multinational Presence Robust Design Team Shift Towards Asset Light Model Strong Customer Relationship • 21 manufacturing facilities • Fashion trend analysis by • Partnership model to drive spread across 4 countries. talented design personnel next leg of growth • Long term re
Slide 39: Global Competitive Advantage
Global Competitive Advantage Multinational Presence Diversified Product Offering Robust Design Team • Present in each country for >10 years • Close proximity to customer • Specialised products in each country • Gives an edge to leverage • Strengthens relationship and gives • Provides leveraging oppo
Slide 40: Synergies From Partnership Model
Synergies From Partnership Model Pearl Global Partner Synergies • Working capital investment • Capex and Labour expenses Faster Turnaround Time • Designing • Design sharing with the • Appoints Industrial Engineer buyer Capacities in proximity to • Responsible for optimum • Contract on per piece basi
Slide 41: Robust Risk Mitigation Practices
Robust Risk Mitigation Practices Social & Ethical Customer Product Raw Material Currency Cashflow Compliance Retention & Growth Quality Prices and Supply Chain Fluctuation Non-Compliance Debt Repayment & servicing o Direct Relationship with o Quality systems & o Early projection and o Natural hedge
Slide 42: Way Forward and Strategy For Growth
Way Forward and Strategy For Growth New Customer Optimum Utilization Of Acquisition Existing Facilities Growth Through Geographical Partnership Facilities Expansion Automation Of PLI Scheme To Act As Facilities A Growth Engine 42
Slide 43: Financial Highlights
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Slide 44: Consolidated Profit And Loss Statement
Consolidated Profit And Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 3,158.4 2,713.5 1,490.9 1,685.1 1,757.5 Cost of Goods Sold 1,629.5 1,510.6 768.9 808.3 873.3 Gross Profit 1,528.9 1,202.9 722.0 876.8 884.2 Gross Profit Margin 48.4% 44.3% 48.4% 52.0% 5
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 619.5 533.9 533.2 543.1 434.6 Total Equity 742.8 614.9 530.2 513.6 481.4 Property Plant & Equipment 288.2 258.2 213.8 221.9 243.6 Sh
Slide 46: Consolidated Cash Flow
Consolidated Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 175.8 85.8 11.4 31.2 82.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 67.8 76.2 61.3 93.2 51.5 Operating profit before working capital changes 243.7 162.1 72.6 124.5 134.5 Changes
Slide 47: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Profit and Loss (INR CRS.) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 1103.8 933.8 771.4 825.3 840.3 Cost of Goods Sold 541.9 428.1 473.1 399.6 417.1 Gross Profit 561.9 505.7 298.3 425.7 423.2 Gross Profit Margin 50.9% 54.2% 38.7% 51.6% 50.4% Employee Cost
Slide 48: Standalone Balance Sheet
Standalone Balance Sheet Assets (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (INR CRS.) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 364.9 344.8 360.6 377.8 347.2 Total Equity 380.9 343.5 313.8 305.9 316.2 Property Plant & Equipment 128.2 124.1 128.5 131.7 131.5 Shar
Slide 49: Standalone Cash Flow
Standalone Cash Flow Particulars (INR CRS.) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 61.7 36.1 -9.2 10.9 31.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.8 29.5 42.3 33.7 20.5 Operating profit before working capital changes 62.5 65.6 33.1 44.6 52.4 Changes in worki
Slide 50: Sustainability
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Slide 51: Approach to Sustainability
Approach to Sustainability We believe in the Triple bottom approach : People, Planet and Profit Environmental sustainability forms one of the key pillar of our social responsibility. To attain the highest level of sustainability standards, we have the following measures in place to fulfil our respon
Slide 52: Sustainability Is An Integral Part Of Our Processes
Sustainability Is An Integral Part Of Our Processes Ongoing sustainable initiatives Ozone ECO FRIENDLY Eco Friendly Recycled Poly Stone, Longer Life Span Reduce Water Consumption Replacement Of Pumic Stone With No Residue Magic Box Environmental Impact Measurement Eco Friendly Software to monitor th
Slide 53: Protecting the Future
Protecting the Future We believe in the long-term preservation of our resources ✓ To create a circular economy by eliminating waste & utilizing resources 53
Slide 54: Awards
Awards 2006-2008 2008-2010 2010-2011 • 2006-07: Highest Export in woven • 2008-09: Highest Exports by Young • 2010-11: Highest Exports – Woven Entrepreneur -1st Position to Pulkit garments Seth Garments- Winner • 2007-08: Highest Export in woven • 2009-10: Highest Exports in Woven garments Graments-
Slide 55: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sanjay Gandhi - Group CFO Mr. Karan Thakker / Mr. Rahul Agarwal sanjay.gandhi@pearlglobal.com karan.thakker@sgapl.net / rahul.agarwal@sgapl.net +91 81699 62562 /
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