Ghcl Textiles Ltd. · NSE:GHCLTEXTIL
Ghcl Textiles — Q3 FY2024 Earnings Presentation
27 slides from Ghcl Textiles's earnings presentation, Feb 6, 2024
Slide 1: Cover letter to stock exchanges: Q3FY24 investor presentation
February 06, 2024 माघ कृ प , एकादशी िव म संवत, २०८० National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Bandra – Kurla Complex, Building, P.J. Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumbai – 4
Slide 2: GHCL Textiles Limited Q3FY24 Investor Presentation
Integrated Team Work GHCL TEXTILES LIMITED Ownership Q3FY24 Investor Presentation February 2024 Trust Respect
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection wi
Slide 4: Company Overview
COMPANY OVERVIEW 3
Slide 5: Emerging as a Prominent Player in the Industry
Emerging as a Prominent Player in the Industry o Established in 1927 as Sri Meenakshi Mills in state of Tamil Naidu o Prominent and one of India's leading yarn manufacturers and exporters. o Producers of high-quality yarns, including GIZA, SUPIMA, Australian, and CmiA Yarn, catering to domestic and
Slide 6: Organization & Business Structure
Organization & Business Structure Pre Demerger Organization & Business Structure Post Demerger Organization & Business Structure GHCL Limited (Listed on NSE & BSE) GHCL Textiles Limited (Listed on NSE & BSE) Inorganic Chemicals Textiles Spinning Home Textile business divested to lndo Count Industr
Slide 7: GHCL Textiles: in Numbers
GHCL Textiles: in Numbers FY23 Capacities 54% Revenue: ₹ 1,037 Cr ₹ 2 Cr Ring Spindles: 2.25 lac FY23 Revenue from Value Gross Margin: 27% Net Debt as Rotors: 3320 Added Products EBITDA Margin: 7% on 31-Dec-23 Vortex: 480 5 Yr. Avg. Margins: 17% TFO Spindles: 5760 2 95%+ 300+ 3150 Manufacturing Unit
Slide 8: What Set Us Apart
What Set Us Apart Supplier of bouquet of Producers of high-quality Products - Commodity to Value added 1 6 tailor-made yarns Uphold quality culture with Cost benefits driven by a deeply traceability platform 2 7 ingrained cost-conscious culture “A” grade cotton used; sourced State-of-the-art manufac
Slide 9: Strengthening Customer Relationship through Value Creation
Strengthening Customer Relationship through Value Creation Fully Equipped Product Basket Premium Quality • 38,000 MTPA yarn production • Wide range of products form • Producers of high-quality yarns, • Culture for developing value- commodity to value-added including GIZA, SUPIMA, added products lead
Slide 10: Superior Customer Base
Superior Customer Base GHCL us pron anon _mm ae _
Slide 11: Sustainable Energy Solution: Guiding Path to Excellence
Sustainable Energy Solution: Guiding Path to Excellence “ We strive to become a responsible steward and aim to reduce the overall environmental footprint of the organisation and will continuously monitor our journey ” Several Initiatives Focused on ESG: o Renewable Energy: 72% of energy consumption
Slide 12: Superior Credibility Through Several Certifications
Superior Credibility Through Several Certifications GIZA GRS A CMI 11
Slide 13: Diverse Product Basket: Key Product Offerings
Diverse Product Basket: Key Product Offerings Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn from 25s to 60s Knitting Indian, US and Australian Mix 100% cotton combed compact yarn from Indian, 30s to 170s Weaving US, Australian, Supima and Giza Mix Polyester /Cotton & Cotton/Polyest
Slide 14: Macro Tailwinds to Support Growth
Macro Tailwinds to Support Growth Textiles Industry Overview Pandemic Impact & Recovery Policy-Driven Turnaround Critical sector contributing over Robust demand during & post- Government initiatives & 2% to total GDP & more than pandemic, driven by home- measures like technical textile 12% to manufa
Slide 15: Committed for Future Expansions
Committed for Future Expansions • Signed MoU for Rs. 535 Cr investment with the Government of Tamil De-risking Business Model with Vertical Nadu on January 8, 2024, during the Global Investors Meet Integration • Committed an investment of Rs. 500 Cr in a previous MoU on Value- Added Product Basket E
Slide 16: Expanding with Value-Added Products: Vertical Integration
Expanding with Value-Added Products: Vertical Integration Vision: Strategic Plan • Vertical integration of textile manufacturing to include knitted and woven finished fabrics which yields superior margins • Product basket expansions and increase the spinning capacity by ~1.5x • Enhancement of Green
Slide 17: Investment Thesis
Investment Thesis Decade-long Expertise in Spinning; Strategic Demerger, Focused on Value Creation Investing in Vertical Integration for superior margins - Expanding to knitted and woven finished fabrics Cost Efficiency through expansion of Green Energy Portfolio and Modern Machinery Strong Balance
Slide 18: Financial Performance
FINANCIAL PERFORMANCE 17
Slide 19: Key Highlights
Key Highlights In last 5 years (FY19-23), average Revenue of Rs. 787 Cr with an EBITDA margins of 17% and PBT margins of 10% Business trend improving with uptick in demand and cotton prices largely stable. New capacity of 40k spindles commissioned recently is ready to 31-Dec-2023 benefit from future
Slide 20: Financial Performance – Long Term & Q3FY24
Financial Performance – Long Term & Q3FY24 Revenue EBITDA & Margin (%) PBT & Margin (%) 1,037 In Rs. Cr 255 924 213 772 693 671 611 112 116 91 70 59 71 60 39 23 20 16.2% 13.6% 19.0% 27.6% 6.8% 7.8% 8.6% 5.8% 11.7% 23.0% 2.2% 2.6% FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 F
Slide 21: Efficient Capacity Utilisation with Increasing Exports
Efficient Capacity Utilisation with Increasing Exports Sales Volume UoM FY21 FY22 FY23 9MFY24 Yarn MT 26388 28826 28590 23947 Knitted Fabric MT - - 44 277 Meters Griege Fabric - 920 5047 8322 (‘000) Capacity Utilization % 95 98 94 98 Particulars UoM FY21 FY22 FY23 9MFY24 Domestic Rs. Cr 571 809 903
Slide 22: Prudent Resource Allocation
Prudent Resource Allocation Efficient Capital Allocation – 9M FY24 Rs. 18 Crore Rs. 66 Crore Gross Debt Debt Repayment Growth Capex Rs. 61 Crore Rs. 49 Crore Cash Inflows Generated Net Debt Rs. 2 Crore Rs. (56) Crore Working Capital & Others Net Debt to Equity 0.0x Increase in cash & Cash Equiva
Slide 23: Q3FY24 Performance - Results
Q3FY24 Performance - Results In Rs. Cr Particulars Q3FY24 Q2FY24 QoQ Q3FY23 YoY Total Income 246 261 (6%) 233 6% COGS 166 182 (9%) 186 (11%) Gross Profit 80 79 1% 47 71% Gross Profit (%) 33% 30% 230 bps 20% 1240 bps Employee Cost 15 15 (1%) 13 15% Power, Fuel & Water Expense 17 16 11% 14 23% Other E
Slide 24: Well Invested Manufacturing Facilities
Well Invested Manufacturing Facilities Best-in-class Manufacturing Capability at Tamil Nadu o Journey started with acquisition of sick spinning unit in 2002, turnaround to one of the most reputed mills in southern India o Yarn operation sites are in Paravai, Madurai district & Manaparai, Tiruchirapp
Slide 25: Decade-long Expertise in Spinning: Focused on Value Creation
Decade-long Expertise in Spinning: Focused on Value Creation 2002 - 2008 2009-2015 2016-2018 2019-2020 2022-2023 Current Capacities Entered Spinning Added TFOs for Spindles capacity Spindles capacity Ring Spindles 2.25 lac Spindles capacity business with 65K value added yarn & increased to increased
Slide 26: Our Leadership Team
Our Leadership Team Resilient and Skilled Management Team MR. R. BALAKRISHNAN MR. N. RAJAGOPAL MR. D. RAMESH BABU MR. GAURAV V MR. LALIT DWIVEDI CHIEF EXECUTIVE OFFICER HEAD - TECHNICAL OPERATIONAL HEAD CHIEF FINANCIAL OFFICER COMPANY SECRETARY Experienced and Accomplished Board of Directors MR. R.
Slide 27: Thank You
Contact Us: Mr. Manu Jain GHCL Textiles Limited Tel: +91-7042310002 Email: manujain@ghcl.co.in THANK YOU Investor Relations Go India Advisors Name: Ms. Devyanshi Dave Tel: +91-9892330743 Email: devyanshi@goindiaadvisors.com Name: Mrs. Sheetal Khanduja Tel: +91-9769364166 Email: sheetal@goindiaadviso