Kallam Textiles Ltd · BSE:KALLAM
Kallam Textiles — Q4 FY19 Earnings Presentation
34 slides from Kallam Textiles's earnings presentation, May 2019
Slide 1: Q4 & FY19 Result Presentation
Q4 & FY19 Result Presentation May 2019
Slide 2: Safe Harbour
Safe Harbour 2 Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our ac
Slide 3: Content
Content 3 Company Overview 4 Business Model 9 Strengths & Differentiators 17 Operating Highlights 20 Outlook 24 Financials 26
Slide 4: Company Overview
Company Overview SS — = = == a WhoojoSeescixaars sere — 2 7 SS a = = —— —— | BUCLROUEEOEEODERDEODOL OnNbbNbin vinninnininninn mini iiinninimnniGaNiisicaaRini Sea. ~
Slide 5: At a glance
At a glance 5 Years of operations and Spindles Rotors Dyeing everyday experience Weaving everyday Revenue CAGR 5 years EBITDA CAGR 5 years Consistent dividend paying company for the last 5 years
Slide 6: Timeline
Timeline Company in 2011-2012 – 6 Production process of 120 acres of land capacity installing modern purchased for increased to Loan automatic TMC weaving and 3,500 kgs/day, sanctioned Ginning Unit. dyeing unit. Turnover of– commenced Spindle Spindle for spindle Spindleage Spindleage Rs. 3,138 Compa
Slide 7: Best-in-class facilities
Best-in-class facilities 7 Hydel Plant, Nelakondapalli Registered Office and Corporate Office, Chowdavafram, Guntur Weaving and Dyeing Plant, Kunkupadu Ginning, Spinning, Open End Plants, Chowdavaram
Slide 8: Management Team
Management Team 8 Sri Kallam Haranadha Sri P. Venkateswara Reddy Mr. G.V.K. Reddy – Joint Mr. M.V. Subba Reddy - Reddy – Founder – Managing Director Managing Director of KTL Whole Time Director & Chief Financial Officer (CFO) Sri Kallam Haranadha Reddy is the Mr. P.V. Reddy is the Managing Mr. G.V.
Slide 9: Business Model
9 Business Model
Slide 10: Fully Integrated Business Solution
Fully Integrated Business Solution 10 Cotton Ginning Spinning Open End Dyeing Weaving Power Procurement One Stop Shop
Slide 11: Cotton Procurement
Cotton Procurement 11 ● Guntur district produces MCU5 which is long staple cotton and is suited for fine counts ● Kallam group is in the cotton Business for more than four decades ● The farmers bring kapas by tractors to chowdavaram spinning cum ginning plant. o The best quality kappas is procured f
Slide 12: Ginning
Ginning 12 ● #28 ginning machines ● Capacity - 200 bales /day and 50,000 bales in a year ● State of the art machinery – Equipped with modernized Automatic bale pressing unit and auto seed booster compressor to seed storage tank ● Kallam Textiles Limited has been BCI (Known as “Better Cotton Initiati
Slide 13: Spinning
Spinning 13 ● Commenced operations in 1995, with 12,096 spindles ● Presently operates 59,280 spindles of Ring Spinning out of which 31488 spindles are compact ● Superior Spinning units ensure the supply of consistent quality yarn to manufacture the garments
Slide 14: Open End
Open End 14 ● Established in 2009-2010 with 1,248 Rotors ● Present capacity – 2,912 rotors ● Most spinning today is done using Break or Open end spinning ● Open end Yarn quality has been proved by repeated orders from international markets ● Premium quality yarn is exported to customers around the w
Slide 15: Dyeing
Dyeing 15 ● Year Commenced - 2015 ● Initial Capacity – 3,000 kgs per day, now expanded to 5,000 kgs per day ● Supplies dyed fabric to several geographies ● Offerings include fabrics with cotton 100% and blended with lycra stretch, polyester, nylon, Linen and viscose fabrics
Slide 16: Weaving
Weaving 16 ● Commencement of unit – 2014 ● Initial Capacity – 248 looms, 80k meters per day of woven fabric ● Fabric includes - 70% yarn dyed shirting and 30% of bottom weight fabric ● State of art machinery - weaving preparatory, weaving loom shed and sophisticated testing equipment procured from B
Slide 17: Power
Power 17 ● Kallam Textiles Limited has 3 hydroelectric plants with 4.0 MW capacity ● First two projects of 0.8 MW and 1.6 MW were commissioned in Jan 2002 and third hydro electric plant of 1.6 MW was commissioned in March 2011 ● All located at Nelakondapally Mandal, Khammam District of Andhra Prades
Slide 18: Strengths & Differentiators
18 Strengths & Differentiators
Slide 19: Our Strengths and Differentiators
Our Strengths and Differentiators 19 1 Strengths ● Integrated Player with presence across value chain - ginning, spinning, weaving and dyeing ● Backward integrated – Assured raw material availability at economical rates helps in cost control and reduction in lead times across operations ● Strong con
Slide 20: Our Strengths and Differentiators
Our Strengths and Differentiators 20 2 Differentiators ● Dedicated to quality of products and customer satisfaction which is evident in investments in machinery ● Zero bad debt policy: strict financial control on receivables and set policies with respect to cash collection the company has ensured ma
Slide 21: Operational Highlights
Sy C ad «. Operational Highlights
Slide 22: 5 Year Performance
5 Year Performance 22 Rs. In Crore Particulars FY15 FY16 FY17 FY18 FY19 Revenue 244.14 269.14 287 313 311 Other Income 7.13 6.97 10.4 1.13 1.40 Total Income 251.27 276.11 297 314 312 Expenditure -210.13 -224.23 -263 -279 -279 Interest -23.17 -28.3 -22 -22 -20 PBDT 17.96 23.58 34.7 35.3 27.63 Depreci
Slide 23: Export
Export 23 Product wise split export - FY2019 Fabric 29% Yarn 71%
Slide 24: Outlook
24 Outlook
Slide 25: Growth plans: FY2019-2020
Growth plans: FY2019-2020 25 In process of expansion of looms which will increase volumes by 20-25%. Setting up of process house will help in selling processed fabric to brands, Adding captive power garmenters and exporters. generation to reduce costs. Turnover and margins in this Looking into of So
Slide 26: Financials
26 Financials
Slide 27: Q4 FY19 vs Q4 FY18
Q4 FY19 vs Q4 FY18 27 Revenue (Rs. Cr) EBITDA (Rs. Cr) Margin (%) PAT (Rs. Cr) Margin (%) 85 18 7 8.34% 21.35% 84 5 6.03% 1 0.48% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19
Slide 28: FY19 vs FY18
FY19 vs FY18 28 Revenue (Rs. Cr) EBITDA (Rs. Cr) Margin (%) PAT (Rs. Cr) Margin (%) 313 57 16 18.28% 5.01% 312 7 18 2.13% 5.65% FY18 FY19 FY18 FY19 FY18 FY19
Slide 29: Performance Highlights
Performance Highlights 29 Revenue (Rs Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) FY19 542.7 FY19 48.2 FY19 6.6 FY18 543.6 FY18 57.1 FY18 15.7 FY17 472.4 FY17 56.7 FY17 12.8 FY16 415.7 FY16 51.9 FY16 5.9 FY15 348.7 FY15 41.1 FY15 9.45
Slide 30: Balance Sheet Ratios
Balance Sheet Ratios 30 Debt/Equity Interest Coverage Ratio FY19 3.2 FY19 1.58 FY18 3.5 FY18 1.96 FY17 4.0 FY17 1.96 FY16 4.1 FY16 1.38 FY15 4.3 FY15 1.35
Slide 31: Balance Sheet Ratios
Balance Sheet Ratios 31 Gross Block (Rs Cr) Net Worth (Rs. Cr) Adjusted EPS (in Rs.) FY19 447.8 FY19 107 FY19 1.55 FY18 438.8 FY18 101.1 FY18 3.66 FY17 371.0 FY17 85.7 FY17 2.98 FY16 370.5 FY16 73.0 FY16 1.35 FY15 331.7 FY15 67.9 FY15 2.18
Slide 32: Balance Sheet Ratios
Balance Sheet Ratios 32 Dividend (%) Dividend Payout (%) FY19 10.0 FY19 12.90% FY18 10.0 FY18 5.23% FY17 10.0 FY17 5.39% FY16 10.0 FY16 11.96% FY15 10.0 FY15 7.41%
Slide 33: About Us
About Us 33 Kallam Textiles Limited was established in 1994 with an initial capacity of 12,000 Contact Us: spindles. The Company is engaged in the business of Ginning of Cotton, Ring spinning of cotton yarn, Open End rotor yarn, Yarn dyeing, Grey fabric and grey yarn dyed GVK Reddy, JMD & CEO Fabric
Slide 34: Thank You
Thank You