Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q3 FY2020 Earnings Presentation
36 slides from Sutlej Textiles & Industries's earnings presentation, Feb 6, 2020
Slide 1: Cover letter to stock exchanges: Results Presentation
SUTLEJ TEXTILES AND INDUSTRIES LIMITED su te 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 Website
Slide 2: Result Presentation Q3 & 9MFY20
sutei textiles and industries limited Sutlej Textiles and Industries Limited Re-inventing itself Result Presentation | Q3 & 9MFY20 February 2020
Slide 3: Safe Harbor
Safe Harbor sutiei textiles and induStriea limited 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
Slide 4: Q3 FY20 Results Highlights
Q3 FY20 Results Highlights Improving efficiencies… 3
Slide 5: Results Highlights (Consolidated) – Q3 & 9MFY20
Results Highlights (Consolidated) – Q3 & 9MFY20 Total Income (Rs Cr) EBITDA (Rs Cr) 2,014 186 174 1,897 669 644 586 58 62 62 Lai Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 PBT (Rs Cr) 66 65 26 27 20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 4
Slide 6: Results Highlights (Consolidated) – Q3 & 9MFY20
Results Highlights (Consolidated) – Q3 & 9MFY20 seY;LP Total Debt (Rs Cr) Finance Cost (Rs Cr) 44 929 21% 780 831 35 393 243 263 13 11 10 536 537 568 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 9M FY19 6M FY20 9M FY20 Long Term Short Term Total Debt reduced by Rs. 98 crore in the last 1 year. There is incr
Slide 7: Profitability Highlights
Profitability Highlights Consolidated Particulars Q3 Q3 YoY Q2 QoQ 9M 9M YoY (Rs crore) FY20 FY19 Chg % FY20 Chg % FY20 FY19 Chg % Total Income 586 669 -12% 644 -9% 1,897 2,014 -6% RM cost 306 403 -24% 363 -16% 1,067 1,178 -9% Gross Profit 280 266 5% 281 0% 831 836 -1% Gross Profit Margin (%) 47.73%
Slide 8: Key Performance Highlights – Q3FY20 & 9MFY20
Key Performance Highlights – Q3FY20 & 9MFY20 seY;LP Yarn Sales (in MT) Avg. Yarn Realization (Rs/kg) Domestic & Export Revenues (Rs Crs) 436 228 554 82,637 81,205 27,571 222 26,844 26,210 212 213 205 239 194 169 1280 1297 413 435 404 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MF
Slide 9: Executive Chairman’s comments
Executive Chairman’s comments sutte r Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: "Subdued domestic demand and falling exports continued due to falling GDP growth coupled with global slowdown. However various initiatives taken by the c
Slide 10: Creation of a Strong Foundation over the years
SUttei Sutlej Creation of a Strong Foundation over the years 9
Slide 11: Sutlej Textiles - Overview
Sutlej Textiles - Overview §17.!!le- 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 Expo
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
rams P.T.01 ',C.!, lb ^P.' PY,91!1,1 Business Verticals Dyed Yarns Value Added Yarns Melange Yarns raiins paiguE se.P1-snPu! pue seppgal 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 sutiei textiles and induStriea limited 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. Ra
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 SUttei • 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
Slide 18: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business sutiei textiles end industries 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 OOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
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 sutiei textiles and induStriea limited 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 i
Slide 21: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles sutiei textiles and induStriea limited Participation in Heimtextile Exhibition 2020 • Participated in Heimtextile Exhibition 2020 organized by Messe’ Frankfurt in Jan 2020 • First time, qualified for an entry into Green Directory 2020 with three Green leav
Slide 22: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles sutiei textiles and induStriea limited Enhance Manufacturing Capabilities Branding • Modernisation underway to meet market trends. • Key machines have been installed and undergoing trial runs for processing, yarn dyeing, fancy yarn to broaden product portf
Slide 23: Home Textiles Business- Way Forward
Home Textiles Business- Way Forward sutiei LexidAs And incluAtnAA fimded 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, I
Slide 24: Building Organization
TIMELESS DESIGN SINCE 1896 www.americansilk.com Building Organization 23
Slide 25: American Silk Mills (ASM)
American Silk Mills (ASM) 110 AMERICAN sutiei textiles and ind, -Nen I it SILK MILLS® T896 WEAVE. f 0¢31.1 SINCE AcquiredInitiatives Design, Sales, andandWay Distribution (DS&D) forward forbusiness ASM along with brand of American Silk Mills LLC (ASM) Consumer focused Design & Development Escala
Slide 26: Improving Operating Efficiencies
4 4 I X11111~,, l~llihllll~ 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 seY;LP Captive PSF – A Key Raw Material Utilisation for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day Location (adjacent to our existing yarn manufacturing unit) Baddi, Himachal Prad
Slide 28: Focus on Reducing Energy Cost
rains 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
IA01 VI - '4 f ill a I4 y gi 04, 1 trio a---"ram 111-11-111 14140 ,14e let ,1 ht 14, 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 §.Y.1191 Total Income Total Debt Networth Total Debt Total Debt to Equity 2,642 4.73 1,2 00 5.0 0 1,0 00 942 923 971 4.5 0 1,897 831 4.0 0 1,705 738 3.5 0 652 800 3.0 0 600 2.5 0 809 738 923 831 349 1.87 2.0 0 652 400 1.5 0 156 0.98 0.86 1.0 0 200 0.5 0 0 0.0 0 F
Slide 31: Well Placed for next Growth Phase
Well Placed for next Growth Phase SUttei • 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 Yarn
Slide 32: Annexure - Financials
Annexure - Financials 31
Slide 33: Year Performance Highlights
5 year Performance Highlights sum LexidAs And incluAtnAA fimded 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 orw The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence
Slide 34: Balance sheet Ratios
Balance sheet Ratios seY;LP 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 1.3 FY17 5.2 6.8% 6.8% FY18 H 4.8 6.2% 6.2% FY18 1.15 FY19 H 4.2 FY19 0.98 9MFY20 H 5.05 \b \ci 9MFY20 0.86 <14/
Slide 35: Appreciation and Awards
Appreciation and Awards suto Ethtl incluttnda9 NTiLead • Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) Gold Trophy for highest export of Synthetic Spun Dyed Yarn in FY18-19 • Cotton Textiles Export Promotion Council (TEXPROCIL) Gold Trophy - Highest Exports of Cotton Processed Yarn
Slide 36: Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect sutta tr STELLAR INVWQR gvnos Mr. Bipeen Valame Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andh
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