Ghcl Textiles Ltd. · NSE:GHCLTEXTIL
Ghcl Textiles — Q2 FY25 Earnings Presentation
23 slides from Ghcl Textiles's earnings presentation, Oct 30, 2024
Slide 1: Exchange filing cover letter: Investors' Presentation Q2FY25
October 30, 2024 का तक - कृ ण प - योदशी व म संवत, २०८१ 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
Slide 2: GHCL Textiles Limited Q2 FY25 Investor Presentation
Integrated Team Work GHCL TEXTILES LIMITED Ownership Q2 FY25 Investor Presentation October 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: Management Commentary
Management Commentary GHCL Textiles is a leading yarn manufacturer and exporter in India, with advanced facilities in Tamil Nadu specializing in high-quality, finer count yarns. Recently, we expanded into the fabric segment, leveraging our expertise in cotton coverage and maintaining a lean cost str
Slide 5: Our Strategic Edge: Positioned for Excellence
Our Strategic Edge: Positioned for Excellence Operational Customer-Centric Shift to Value- Strong Foundation Excellence Approach Added Segments for Growth • 98%+ utilization, even • Catering to strategic • Gradual transition • Expertise in cotton in tough markets. customers who from commodity invent
Slide 6: Ongoing Revenue Diversification to Drive Future Growth
Ongoing Revenue Diversification to Drive Future Growth o Increased revenue from value-added products (knitted and griege fabric) and exports Revenue by Products o Strategy aims to reduce market risks and ensure stable margins 1.1% 3.1% 6.5% o Focus on continued diversification for future growth. 202
Slide 7: Future Expansion Plans
Future Expansion Plans Ongoing Capex Capex Commitment Project Current Project Timeline Implication Signed MoUs with Tamil Nadu Govt. for Rs. Description Status Cost 1,035 Cr. investment; Rs. 360 Cr. already (Rs. Cr) invested in 40k spindles and solar power, currently running at full capacity. 25k Sp
Slide 8: Strategic Priorities
Strategic Priorities • Vertical integration of the yarn manufacturing to include knitted, weaving and dyed fabrics, which yields superior margins and integration with existing business. • Enhancement of Green energy portfolio to 75 MW (from 62 MW currently) to cater up to 85% of our energy requireme
Slide 9: Financial Performance
Financial Performance Revenue EBITDA & Margin (%) PBT & Margin (%) In Rs. Cr 307 288 289 16 16 261 30 29 29 246 14 22 20 8 6 8% 8% 10% 10% 10% 3% 3% 5% 5% 5% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 1,037 1,060 255 924 21
Slide 10: Q2 & H1 FY25 Results
Q2 & H1 FY25 Results In Rs. Cr Particulars Q2FY25 Q1FY25 QoQ Q2FY24 YoY H1FY25 H1FY24 YoY Total Income 307 289 6% 261 17% 595 526 13% COGS 211 193 9% 182 16% 405 370 9% Gross Profit 95 96 0% 79 21% 191 156 22% Gross Profit (%) 31% 33% (195 bps) 30% 81 bps 32% 30% 235 bps Employee Cost 20 17 14% 15 3
Slide 11: Prudent Capital Allocation and Strong Balance Sheet
Prudent Capital Allocation and Strong Balance Sheet Capital Allocation for H1 FY25 Rs. 58 Crore Rs. 25 Crore Gross Debt Net Cash Surplus Debt Repayment Growth Capex Rs. 14 Crore Rs. 92 Crore Rs. 55 Crore Cash Inflows Generated Net Debt to Equity -- Rs. 5 Crore Rs. (127) Crore Return on Capital R
Slide 12: Company Overview
COMPANY OVERVIEW 11
Slide 13: An Introduction to GHCL Textiles
An Introduction to GHCL Textiles o Journey started with acquisition of sick spinning unit in 2002, turnaround to one of the most reputed mills. o Spinning business demerged to form GHCL Textiles Ltd effective April 1, 2023. FY24 Capacities o 2 State-of-the-art manufacturing infrastructure with cutti
Slide 14: 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 Spindles capacity Added TFOs for value Spindles capacity Spindles capacity Ring Spindles 225 k business with 65K increased to 175K, added yarn & Air Je
Slide 15: Key Product Offerings
Key Product Offerings Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn 25s to 60s Knitting from 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/Polyester blended 25s to 40s Kn
Slide 16: 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, Australian, added p
Slide 17: Superior Customer Base
Superior Customer Base “PGHCL jraninyy | MR sus Arvioo Norban _— so Norhan ‘/TOGRY, Bren OBR | The World Of \ ocean Lanka “Wal oes i 1 Complete c 16
Slide 18: Superior Credibility Through Several Certifications
Superior Credibility Through Several Certifications GIZA GRS A CMI 17
Slide 19: 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: caters to 72% of energy co
Slide 20: Experienced Leadership Team
Experienced Leadership Team Resilient and Skilled Management Team MR. R. BALAKRISHNAN MR. GAURAV V MR. D. RAMESH BABU MR. N. RAJAGOPAL MR. LALIT DWIVEDI CEO CFO OPERATIONAL HEAD TECHNICAL HEAD COMPANY SECRETARY Experienced and Accomplished Board of Directors MR. ANURAG DALMIA MR. R. S. JALAN MR. RAM
Slide 21: Efficient Capacity Utilisation with Increasing Fabric Sales & Exports
Efficient Capacity Utilisation with Increasing Fabric Sales & Exports Particulars UoM FY19 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Sales Volume: Yarn MT 28,426 29,293 26,388 28,826 28,590 33,140 16,177 18,117 Knitted Fabric MT - - - - 44 336 235 256 Griege Fabric Lakh Meters - - - 9 50 114 49 67 Ca
Slide 22: Financial Performance - Results
Financial Performance - Results In Rs. Cr Particulars FY19 FY20 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 Total Income 693 671 611 924 1037 1060 526 595 COGS 759 729 370 405 Gross Profit 278 331 156 191 Gross Profit (%) 27% 31% 30% 32% Employee Cost 54 62 30 37 Power, Fuel & Water Exp. 61 71 37 33 Other E
Slide 23: Thank You
Contact Us: Mr. Manu Jain GHCL Textiles Limited Tel: +91-7042310002 Email: manujain@ghcl.co.in Investor Relations Go India Advisors THANK YOU Name: Ms. Devyanshi Dave Tel: +91-9892330743 Email: devyanshi@goindiaadvisors.com Name: Mrs. Sheetal Khanduja Tel: +91-9769364166 Email: sheetal@goindiaadviso