Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2019 Earnings Presentation
35 slides from Sutlej Textiles & Industries's earnings presentation, May 9, 2019
Slide 1: Q4 and FY2019 Results Presentation cover letter
SUTLEJ TEXTILES AND INDUSTRIES LIMITED suuei 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: Charged to Grow Higher - Q4 FY19 Investor Presentation
Sutlej Textiles and Industries Ltd! Charged to Grow Higher Q FY Investor Presentation May 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides -the “Presentation”01 which have been prepared by Sutlej Textiles and Industries Limited -the “Company”01 solely for information purposes and do not constitute any offer1 recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q4 FY19 Results Highlights
Q FY Results Highlights Consolidation continues: 3
Slide 5: Key Quarter Highlights
Key Quarter Highlights To be updated Key Challenges during Q FY compared to Q FY= • Increase in raw material prices and other input costs created pressure on margins – Cotton and Polyester prices increased by > -QoQ0 > -QoQ0 respectively • Reduction in export incentives had pressure on margins • Unc
Slide 6: Results Highlights @ Q4 FY19
Results Highlights @ Q FY To be updated Total Income -Rs Cr0 EBITDA -Rs Cr0 PAT -Rs Cr0 Note: Financials for Q4 FY18 and Q4FY19 are on standalone basis while FY18 and FY19 financials are on consolidated basis 5
Slide 7: Key Performance Highlights @ Q4 FY19
Key Performance Highlights @ Q FY Done Revenue growth for the full year was E>1 Yarn continues to contribute over E> of the revenues Yarn Sales -in MT0 Up by > in FY Average Yarn Realization -Rs9kg0 Up by > in FY Export Revenue Up by D> in FY 6
Slide 8: Profitability Highlights
Profitability Highlights Sta nda lone Consolida ted Rs. in Cr YoY chg QoQ chg YoY chg Q4 FY19 Q4 FY18 Q3FY19 FY19 FY18 % % % Tota l Income 617 610 1% 657 -6% 2642 2510 5% Ra w Ma te ria l Co st 354 354 0% 394 -10% 1541 1412 9% Em p lo ye e Co st 78 73 7% 82 -5% 330 303 9% Othe r Exp e nse s 128 131
Slide 9: Balance sheet
Balance sheet To be updated Rs! in Cr FY FY= Rs! in Cr FY FY= Non7current assets = = Shareholder’’s Fund Shareholder G = D Share capital D D Fixed assets Reserves Surplus E = Investments D E Other Non Current assets G Non7current liabilities D EEE Long term borrowings HG E Deferred tax liabilities C
Slide 10: Executive Chairman's comments
Executive Chairman’ Chairman’s comments To be updated Commenting on the results1 Mr! C!S! Nopany1 Executive Chairman1 Sutlej Textiles and Industries Limited saidI “The challenging business environment for the Textile Industry continued during the year due to subdued demand! The situation was further
Slide 11: Sutlej - Creation of a Strong Foundation over the years
Sutlej Creation of a Strong Foundation over the years 10 10
Slide 12: Sutlej Textiles Overview
Sutlej Textiles 7 Overview Largest Patronage of Renowned K!K!Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance One of the leading manufacturer of Melange Yarn Niche Presence Exports to L DE countries Zero grey yarn manufacturing1 pres
Slide 13: Key Milestones
Key Milestones Commenced Commenced commercial commercial production production Acquisition Acquisition of of Birla Birla Textile Textile Mills Mills Acquired Acquired Design1 Design1 Sales1 Sales1 of of H1 H1 Spindles Spindles at at Chenab Chenab and and Distribution Distribution -DSD0 -DSD0 Textile
Slide 14: Business Verticals
Business Verticals Dyed Yarns Value Added Yarns Melange Yarns Curtains Home Textiles Upholstery Made Ups 13
Slide 15: Sutlej @ Charged to grow higher
Sutlej @ Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Utilization in Leading spun dyed Melange Yarn Industry Manufacturer in India Better RM Power through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Home Textil
Slide 16: Experienced Team
Experienced Team 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! Rajiv K! Podar Mr! Rohit Dhoot Mr! Ashok
Slide 17: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 16
Slide 18: Yarn Capacities
Yarn Capacities Nearly H> of the spindleage and DG> of the fabric weaving machines commissioned in the last decade1 assuring high technological relevance! Bhawanimandi1 Bhawanimandi1 Rajasthan • HE1= Spindles -Cotton Mélange 0 • 1E= Spindles -Man @made Fibre0 • Roof top solar plant of !G MW Kathua1
Slide 19: Speciality Dyed Yarns @ Backbone of our business
Speciality Dyed Yarns @ Backbone of our business Done Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities 11= Dyed Yarn Spindles HE> dedicated to Melange Yarn DE> dedicated to various blends fold PH ro wn Well Diversified Product Portfolio G Marquee clients like Page Industr
Slide 20: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains Upholstery players 19
Slide 21: Home Textile - Emerging Business
Home Textile 7 Emerging Business To be updated Focus on Curtains1 Upholstery Made ups Leading producer exporter of Home Decor Continuous Increase in Spindle Capacities Acquisition of American Silk Mills -ASM01 leading Design Distribution in USA Latest Technology in design manufacturing P !=x rown by
Slide 22: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles Enhance Manufacturing Capabilities Expanding Product Portfolio Adding wider width printing machines Better Designs Digital Printing capabilities Sheer Material Steaming Washing Made7ups Fancy Yarn Embroidery Establish Geographic Presence Improving Designin
Slide 23: American Silk Mills (ASM)
American Silk Mills -ASM0 Acquired Design1 Sales1 and Distribution -DSD0 business along with brand of American Silk Mills LLC -ASM0 Stabilizing Operations Working on improving margins Building Customers Confidence Re7gaining customer confidence lost due to liquidity position before acquisition Intro
Slide 24: Improving Operating Efficiencies
Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 23 23 23
Slide 25: Backward Integration into Green Fiber
Backward Integration into Green Fiber Captive Utilisation PSF @ A Key Raw Material for Sutlej Bottle Flake Fibre Yarn Fabric Description Details Capacity MT 9 Day CAPEX Rs! = crore Location @ land acquired Baddi1 Himachal Pradesh Expected Commercial Production QFY7 Fulfil GE> of Captive Requirement
Slide 26: Focus on Reducing Energy Cost
Focus on Reducing Energy Cost Installed Roof Top Solar plant of !G MW at new unit in Bhawanimandi1 Rajasthan1 Resulting P> less per unit cost compared to State Tariff Solar Plant at Bhawanimandi1 Rajashthan 25
Slide 27: Sutlej 2.0 @ Growth Strategy
Sutlej ! @ Growth Strategy Charged to grow higher backed by a strong Foundation 26
Slide 28: Always Focused on Disciplined Growth
Always Focused on Disciplined Growth To be updated Continuous reduction in Total Debt to Equity ratio over the years1FY was != vs !E in FY= 27
Slide 29: Well Placed for next Growth Phase
Well Placed for next Growth Phase • Effective control on key Raw • Integration with ASM • Opportunities into Forward • Strong Balance Sheet material cost Integration • Product Portfolio expansion • Generate better Return to strengthen Home Textiles • Opportunities in new Ratio’s Business Speciality
Slide 30: Enhancing value for Stakeholders
Enhancing value for Stakeholders Remove Dividend Per Share -Rs0 Dividend Payout ->0 S S Dividend declared Rs!!H on FV of Rs! per share post split! Depiction is for visual and comparative purpose only
Slide 31: Annexure - Financials
Annexure 7 Financials 30
Slide 32: 5 year Performance Highlights
E year Performance Highlights Done Revenue EBITDA PAT SThe Company acquired American Silk Mills1 LLC on Dth Nov G and hence FYG7= is first year of consolidation 31
Slide 33: Balance sheet Ratios
Balance sheet Ratios To be updated Comfortable Total Average Interest Rate of Robust Interest Coverage Debt9Equity Ratio Term Loans -After TUF0 32
Slide 34: Balance sheet
Balance sheet Can be deleted Gross Block -Rs -Rs Cr0 Net worth -Rs -Rs Cr0 Adjusted EPS -Rs! per share0 33
Slide 35: Thank You
“Withstanding firmly during A storm Help’ Help’s to cherish the sunshine later” later” Thank YouT Let’s Let s Connect Mr! Bipeen Valame Mr! Vikash Verma 9 Mr! Abhishek Bhatt bipeenvalameUsutlejtextiles!com vikash!vermaUstellar7ir!com abhishekUstellar7ir!com Lotus Corporate Park1 Goregaon -East01 Mum
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