Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q2 FY2018 Earnings Presentation
26 slides from Banswara Syntex's earnings presentation, December 2017
Slide 1: Banswara Syntex Limited Presentation – December 2017
BANSWARA SYNTEX LIMITED Presentation – December 2017 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Banswara Syntex Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Q2FY18: Gradual Recovery in Business
Q2FY18: Gradual Recovery in Business Net Revenue (Rs crs) EBITDA (Rs crs) 11.5% 8.5% 8.3% 10.4% 304 318 306 318 35 33 27 25 Q3FY17 Q4FY17 Q1FY18* Q2FY18* Q3FY17 Q4FY17 Q1FY18* Q2FY18* PAT (Rs crs) 4 3 2 1 Q3FY17 Q4FY17 Q1FY18* Q2FY18* Confident of further improving our profitability in coming quarte
Slide 4: Banswara Syntex a Global Player
Banswara Syntex a Global Player… Incorporated in the year 1976 Vertically integrated textile solutions Experienced Design Teams in Long Term Relationship with Leading Global and Domestic India and Paris players In House R&D & state of the art Exports to over 60 countries facilities Global Customer J
Slide 5: Evolution into an Integrated Business
Evolution into an Integrated Business Vertical expansion of business to higher value products with larger market reach 2016 & Beyond 2008 - 2012 Setting the stage for the Future 2004 - 2007 • Started production • Focusing on growth of made-ups through strategic JVs Worsted spinning, 1993 • Started p
Slide 6: Presence across the Value Chain
Presence across the Value Chain Garments Fabric Yarn 6
Slide 7: Manufacturing Capabilities
Manufacturing Capabilities Spinning Unit Weaving Unit Dyeing Unit Garmenting Unit Invested over Rs. 494 crores towards expansion and modernisation between FY 2010 – December 2016 • Spinning Rs.235 Crs • Garmenting Rs.38 Crs • Fabric Rs.171 Crs • Power Unit Rs.50 Crs 7
Slide 8: Value Addition in the Yarn Business
Value Addition in the Yarn Business Current Scenario Going Forward ▪ We produce blends of viscose staple ▪ Focus on higher contributions from fibre, polyester staple fibre, acrylic value added yarns to the product mix staple fibre, lycra, cotton, linen, etc. o Increase in production of PV Lycra Yarn
Slide 9: Focusing on High-Quality & Performance Fabrics
Focusing on High-Quality & Performance Fabrics Expansion in Current Leveraging our Value Added Our Goals Presence Advantages Fabrics • Worsted • Stretch based • In-House Design • Newer Markets and • Wool Specialties Fabrics for suiting Studio for Fabric Geographies like Japan • Viscose and pants Des
Slide 10: Fabrics Division Growth Strategy
Fabrics Division Growth Strategy To enhance our profitability by improving product mix towards value added products and improving Improve utilizations along with new USA: Deepen penetrations product development with within brands with Margins performance attributes. special emphasis on women’s wear
Slide 11: Garmenting business – A customized offering
Garmenting business – A customized offering Focus on Moving up the value chain visible in the sales mix The influx of international garment brands into India 18.7% 19.2% has led to Indian brands 20.8% 24.8% adopting a more global approach and we at Garments Banswara are in a position to leverage our
Slide 12: Expansion within the Garments Space
Expansion within the Garments Space • Leveraging our existing manufacturing Potential partnerships targeting capabilities at Daman & Surat SEZ • Trousers & Suiting's– 3,45,000 (pcs/ month) • Leading fast fashion brands • Jackets & Waist Coats - 37,500 (pcs/ month) • Expertise in women’s-wear • Lever
Slide 13: Our Strategic Partnerships
Our Strategic Partnerships Partnership with European Partnership with Japanese Company Company • Marketing agreement with a 90 year old • Marketing agreement with a Japanese company European company, who, has been a major for value added product sales of Fabrics and supplier to the global Fast Fashi
Slide 14: Riding the Fast Fashion Wave
Riding the Fast Fashion Wave Requirements of Fast Our Capabilities Our Focus Areas Fashion It is fuelled by advances in Design houses in Paris as well as Maintain a high grade of quality technology, automation India to accurately forecast even at shortened lead times trends in the West and Asia. It
Slide 15: Synergies from Vertical Integration
Synergies from Vertical Integration Spinning Weaving & Processing Garmenting Polyviscose, Worsted Fabric, Garments / Made-Ups Cotton Fabric & Technical (Trousers, Jackets & Fabric Waist Coats) Polyviscose & Processing & Worsted Finishing into Spinning Fabric Spun Yarn for Fabric for Internal Use Int
Slide 16: Domestic Clientele
Domestic Clientele E-Commerce Clients: 16
Slide 17: International Clientele
International Clientele Working with some of the world’s biggest names 17
Slide 18: Why Banswara Syntex Limited?
Why Banswara Syntex Limited? Vertically integrated business Focus on Transition Export and Investment to Value Domestic Rationale Added Markets Products Consistently Lowering Debt 18
Slide 19: Leadership Team
Leadership Team 2 3 4 1 1 Mr. R L Toshniwal – Chairman 2 Mr Rakesh Mehra – Vice Chairman ▪ Masters degree in Textiles from Leeds University, UK ▪ Chartered Accountant from ICAI ▪ 54 years experience in Textile Industry ▪ 31 years experience in Textile Industry ▪ On the board of four other companies
Slide 20: Board of Directors
Board of Directors Mr. R. L Toshniwal Mr. Rakesh Mehra Mr. Ravindra Kumar Toshniwal Chairman Vice-Chairman Managing Director Mr. Shaleen Toshniwal Mr. Parduman Kumar Mr. J. M. Mehta Joint Managing Director Independent Director Independent Director Mr. D P Garg Mr. Kamal Kishore Kacholia Dr. S B Agar
Slide 21: Profit and Loss Highlights
Profit and Loss Highlights Rs. in Crs. Q2FY18 Q1FY18 QoQ% Q2FY17 YoY% H1FY18 H1FY17 YoY% Total Operating Income 317.8 305.8 3.95% 324.2 -1.97% 623.6 621.5 0.33% Raw materials 136.7 140.2 160.3 276.9 297.8 Employee Expense 62.8 55.7 56.2 118.5 106.8 Manufacturing Expenses 31.7 30.2 27.0 62.0 54.2 Pow
Slide 22: Impact to our Profitability
Impact to our Profitability : Increase in Expenses: • Substantial decrease in export duty drawback impacted our profitability in case of exports of yarn, fabric & garment. However, we have received price hikes from majority of the customers during the ongoing quarter and expect rest to follow soon •
Slide 23: Balance Sheet
Balance Sheet* EQUITY AND LIABILITIES (Rs. In Crs) Sep-17 ASSETS (Rs. In Crs) Sep-17 Equity 263.1 Non-current assets 501.3 Equity share capital 17.1 Property, Plant & Equipment 468.7 other equity 246.0 Capital Work in progress 6.7 Non-current liabilities 237.3 Intangible assets 3.5 Financial Liabili
Slide 24: Revenue Performance
Revenue Performance* Segment Gross Revenue (Rs crs) Geographic Gross Revenue (Rs crs) 1,271 1,254 1,271 1,254 1,231 1,236 1,231 1,236 1,130 1,130 473 520 484 514 470 51% 54% 55% 47% 57% 626 626 532 470 513 498 216 57% 488 272 53% 49% 46% 45% 43% 189 212 200 240 43% 136 120 36 37 40 38 32 18 FY13 FY1
Slide 25: Improving Balance Sheet
Improving Balance Sheet Net Debt *(Rs. Crs) Net Debt:Equity -47 664 -76 3.1 617 -17 -16 2.8 541 524 508 2.2 2.0 1.9 Mar-14 Mar-15 Mar-16 Mar-17 H1FY18^ Mar-14 Mar-15 Mar-16 Mar-17 H1FY18^ *Net Debt includes Current Maturity of Debt ^ As per IND AS rest Indian GAAP 25
Slide 26: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Banswara Syntex Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Mr. J.K.Jain - CFO Mr. Rahul Agarwal / Ms. Shrikant Sangani jkjain@banswarasyntex.com rahul.agarwal@sgapl.ne