Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX

Sutlej Textiles & Industries — Q1 FY2016 Earnings Presentation

32 slides from Sutlej Textiles & Industries's earnings presentation, Jul 30, 2015

  1. Slide 1: Sutlej Textiles and Industries Ltd Q1 FY2016 Results Presentation

    SUTLEJ TEXTILES AND INDUSTRIES LTD Q1 FY2016 Results Presentation – 30th July 2015

  2. Slide 2: Disclaimer

    2 Disclaimer Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic develop

  3. Slide 3: Index

    3 Index Q1 FY16 – Key Highlights 04 Q1 FY16 – Performance Update 09 Company Overview 15 Business Outlook 27 About Us 31

  4. Slide 4: Q1 FY16 – Key Highlights

    « SULE) Q1 FY16 — KEY HIGHLIGHTS

  5. Slide 5: Key Highlights – Q1FY16

    5 Key Highlights – Q1FY16 Achieved higher output of high margin Value Added Cotton Mélange and Cotton Blended Dyed Yarn Ω Successfully achieved higher utilization level from recently added capacities - added 31,104 spindles of Value Added Cotton Mélange and Cotton Blended Dyed Yarn from unit - Chena

  6. Slide 6: Key Highlights – Q1FY16

    6 Key Highlights – Q1FY16 Brownfield project - capacity expansion of Value Added Products Ω Commenced work on the project – installing 35,280 spindles at its Bhawani Mandi, Rajasthan facility at a project cost of Rs. 270 crore Ω Project to be funded by mix of internal accruals and debt Ω Financial c

  7. Slide 7: Key Highlights – Q1FY16

    7 Key Highlights – Q1FY16 Modernization Update Ω Invested around Rs. 17 crore during Q1 FY16, towards technology up-gradation and debottlenecking, etc. this will result in further improvement of efficiencies and plant utilization Ω Intends to deploy further amount of ~Rs. 79 crore during the year to

  8. Slide 8: Key Highlights – Q1FY16

    8 Key Highlights – Q1FY16 Credit rating upgrade Ω CARE upgrades Long/Short Term (Term Loan and Bank Facilities) rating to CARE AA- o CARE AA - (Double A Minus) for Long Term Bank facilities (Term Loan) from CARE A + (Single A Plus) signifying high degree of safety regarding timely servicing of finan

  9. Slide 9: Q1FY16 – Performance Update

    9 Q1FY16 – PERFORMANCE UPDATE

  10. Slide 10: Results Snapshot – Q1 FY16

    10 Results Snapshot – Q1 FY16 INR crore Q1 FY16 Q1 FY15 % Change Revenue 463.31 492.06 (5.84) EBITDA 68.75 68.89 (0.20) EBITDA Margin (%) 14.84 14.00 84 bps PBDT 55.42 55.41 - PBDT Margin(%) 11.96 11.26 70 bps PAT 29.78 35.74 (16.68) PAT margin (%) 6.43 7.26 (83 bps)

  11. Slide 11: Financial Performance – Q1 FY16

    11 Financial Performance – Q1 FY16 Revenue EBITDA PAT 36 Figs in crore Figs in crore Figs in crore 492 463 30 69 69 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Ω Revenue growth for the quarter remained soft owing to subdued demand environment and lower realisations Ω Improved operating efficienc

  12. Slide 12: Segment-wise Performance – Q1FY16

    12 Segment-wise Performance – Q1FY16 Yarns 466 444 Ω Revenue growth remained steady as weak demand and lower pricing environment resulted in generation of Rs. 444 crore for the quarter as against Rs. 466 crore generated during Q1 FY15. 50 47 Ω Higher proportion of value added products following opti

  13. Slide 13: Chairman's Comments

    13 CHAIRMAN’S COMMENTS Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said, “Our performance during the quarter is reflective of the challenging business environment currently prevailing in the sector. Multiple headwinds led to a lag in revenue momentum howe

  14. Slide 14: Capital Expenditure & Capacities

    14 Capital Expenditure & Capacities FY15 Acquisition By end FY16 Capex By end FY17 Cotton Mélange 96,104 (96,104) Chenab (No. of Spindles) Textile Mills Man-made yarn 107,200 (107,200) Yarn Rajasthan Cotton and ~Rs. 270 crore Textile Man-made yarn 90,432 125,712 (35,280) Mills (90,432) Cotton, Synth

  15. Slide 15: Company Overview

    s SUULE! COMPANY OVERVIEW

  16. Slide 16: At a Glance

    16 At a Glance Spun Dyed Yarn Manufacturer Total Capacity Cotton Mélange Yarn Total Capacity (Spindles) (Spindles) (Looms) Credit Rating (CARE / India Ratings, A Fitch Group Co.) Last 5 years Last 5 Years Last 5 Years Last 5 Years Revenue Growth EBITDA Growth PAT Growth EPS Growth “Delivering robust

  17. Slide 17: Company Overview

    17 Company Overview Sutlej Textiles and Industries Ltd (STIL) is India’s largest Spun Dyed Yarn manufacturer and leading player in Value added / Specialty yarns Page Industries Marquee Clients Manufacturing Snapshot Domestic and Global Presence Product Mix Ω Manufacturing units (3) – Jammu & Kashmir

  18. Slide 18: Competitive Edge Over Most Other Spinning Mills

    18 Competitive Edge Over Most Other Spinning Mills Ω One stop shop for all types of spun dyed yarns – 100% or blends in Synthetic or natural / Count range: from 6 s to 60 s / Colour: grey, mélange or Dyed in all shade / Fold: simple, Double or multifold Ω Largest manufacturer of Value Added Dyed Syn

  19. Slide 19: Management Profile

    19 Management Profile Board Of Directors: Mr. C.S. Nopany Executive Chairman Mr. U.K. Khaitan Independent Non Exec Director Mr. Amit Dalal Independent Non Exec Director Mr. Rajan Dalal Independent Non Exec Director Ms. Sonu Bhasin Independent Non Exec Director Mr. Rajiv K. Podar Independent Non Exec

  20. Slide 20: Competitive Edge Over Most Other Spinning Mills

    20 Competitive Edge Over Most Other Spinning Mills Ω Scaling up presence in Home Textile business, by Ω Delivering consistent & robust returns – reported one of the expanding capacities to 9.6 million metres p.a. Increased healthiest Return Ratios in the industry. ROCE and ROE in presence in Home Te

  21. Slide 21: Operating Levers

    21 Operating Levers Multiple Raw Material inputs – efficiently manage input volatility Sourcing Innovative R&D in sourcing Raw Materials – Focused approach to increase the breadth Raw Material of raw material sources to lower dependency risk Efficiencies Procurement management – sourcing from repute

  22. Slide 22: Key Growth Drivers

    22 Key Growth Drivers Value Added Products Strong Balance-sheet Highly automated Production line Sharpened focus on Home Textile Division Higher proportion of Cotton Mélange and Strong & continuous R&D Cotton Blended Dyed Yarn Optimum & efficient resource utilization Strategically located Mfg. facil

  23. Slide 23: Financial Performance - Snapshot

    23 Financial Performance - Snapshot Revenue EBITDA Margin 1,881 1,878 17% 1,582 1,680 400 16% 20% Figs in crore Figs in crore 1,537 14% 14% 300 12% 15% 200 10% 100 5% 275 178 234 306 272 0 0% 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 PAT Margin EPS* 150 7% 7% 8%

  24. Slide 24: Key Financial Highlights

    24 Key Financial Highlights ROE (%) ROCE (%) D/E ratio Total D/E ratio 46 3.2 26 28 2.6 28 23 23 1.9 22 21 18 1.4 12 1.1 1.9 1.5 0.6 0.6 1.0 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 Delivering maximum returns at minimal r

  25. Slide 25: Operational Performance – Yarns

    25 Operational Performance Sales (MT) 78,124 76,334 79,666 80,040 72,346 2010-11 2011-12 2012-13 2013-14 2014-15 Avg. Yarn realisation (Rs/Kg) Yarns 207 222 219 186 200 2010-11 2011-12 2012-13 2013-14 2014-15 Sales (Rs. crore) 1,581 1,768 1,754 1,455 1,447 2010-11 2011-12 2012-13 2013-14 2014-15

  26. Slide 26: Key Financial Highlights

    26 Key Financial Highlights INR Million USD Million Particulars FY13 FY14 FY15 FY13 FY14 FY15 Revenues 16,802 18,806 18,782 317 330 308 EBITDA 2,343 3,056 2,718 44 54 45 EBITDA Margin % 14% 16% 14% 14% 16% 14% PBT 928 1,717 1,482 18 30 24 PBT Margin % 6% 9% 8% 6% 9% 8% PAT 770 1,314 1,155 15 23 19 P

  27. Slide 27: Business Outlook

    7 SUIC) BUSINESS OUTLOOK

  28. Slide 28: Indian Textile Sector - Present

    28 Indian Textile Sector - Present current size of Indian Textile Sector largest employment generator and employs 45 million people Million spindles capacity across ~1300 mills share of the country’s total exports basket in 2013-14 Contribution to India’s total industrial production Contribution to

  29. Slide 29: Indian Textile Sector - Potential

    29 Indian Textile Sector - Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 58 9.886 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Manifold The sector

  30. Slide 30: Business Outlook

    30 Business Outlook Consistent production of high margin value added products post the 1 completion of capacity expansion plan to result in greater proportion of Cotton Mélange and Cotton Blended Dyed Yarn product in the overall mix Acquisition of Birla Textile Mills to offer scale and size, besides

  31. Slide 31: About Us

    31 About Us Sutlej Textiles and Industries Ltd (STIL): CIN: L17124RJ2005PLC020927 Sutlej Textiles and Industries Ltd (STIL), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. CS Nopany, Chairman of STIL, a Chartered Accountant and

  32. Slide 32: Thank You

    THANK YOU

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