Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — FY2017 Earnings Presentation
41 slides from Sutlej Textiles & Industries's earnings presentation, May 19, 2017
Slide 1: Q4 and FY 2017 Results Presentation cover letter
SUILE) textiles and industries limited STIL/ SUTLEJ TEXTILES AND INDUSTRIES LIMITED Lotus Corporate Park, ‘E’ Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai - 400 063. Phone : (022) 4219 8800/6122 8989 Fax : (022) 4219 8830 E-mail : info@rtmyarn.com Websit
Slide 2: Investor Presentation May 2017
Investor Presentation May 2017
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej textiles & Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Index
Index Title Page No. Financial Highlights & Updates - Q4& FY17 6 Profitability Highlights 7 Balance Sheet Highlights - March 2017 8 Segmental Break Up 9 Chairman Comments 10 Key Business Updates 11 Key Business Updates 12 Key Business Updates 13 Company Overview 15 Journey till Date 16 Key Executive
Slide 5: Agenda
Agenda Q4 & FY17 – Financial Highlights & Updates Corporate Overview Segment Presence – Yarn & Home Textile Annual Financial Performance Business Outlook
Slide 6: Q4 & FY17 – Financial Highlights & Updates
Q4 & FY17 – Financial Highlights & Updates
Slide 7: Q4 & FY17 – Financial Performance
Q4 & FY17 – Financial Performance Total Income (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) 2,287 2,108 302 319 158 143 612 51 561 81 70 33 Q4 Q4 FY16 FY17 Q4 Q4 FY16 FY17 Q4 Q4 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 6
Slide 8: Profitability Highlights
Profitability Highlights Rs. in Cr Q4FY17 Q4FY16 FY17 FY16 Revenue from Operations 612 561 2,287 2,108 Raw Material Cost 351 312 1,263 1,204 Employee Cost 70 61 266 220 Other Expenses 121 107 439 382 EBITDA 70 81 319 302 EBITDA Margin (%) 11.4% 14.4% 14.0% 14.3% Depreciation 22 21 85 80 Finance Cost
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Rs. in Cr Mar – 17 Mar – 16 Rs. in Cr Mar - 17 Mar – 16 Non-current assets 1,177 941 Shareholder’s Fund 816 683 Share capital 16 16 Fixed assets 1,140 877 Reserves & Surplus 800 666 Investments 28 26 Deferred Govt. Subsidies 2 11 Other Non Current assets 9 38 Non-current lia
Slide 10: Segmental Break up
Segmental Break up Revenue Share Revenue Share 95% Yarn Segment 5% Home Textile Segment Revenue (Rs Cr) EBITDA (Rs Cr) Revenue (Rs Cr) EBITDA (Rs Cr) 8.16% 14.97% 21.43% 4.88% 2,141 108 302 17 14 1,980 94 288 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 9
Slide 11: Comments on Quarterly Performance
Comments on Quarterly Performance Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Ltd said “The challenging domestic business environment continued post demonetization well into Q4 of FY2017. The industry did start witnessing a slow revival of demand al
Slide 12: Key Business Updates
Key Business Updates Brownfield project - Capacity Expansion of Value Added Home Textiles Division – Capacity Expansion Products at Bhawanimandi, Rajasthan Commenced commercial production of 35,280 spindles for producing value added Cotton Mélange and Cotton Capacity expansion project of Home te
Slide 13: Key Business Updates
Key Business Updates Brownfield project - Capacity Expansion of specialty Modernization Update synthetic yarn at Baddi, H.P. The Company’s Board has approved brownfield capacity Invested around Rs.60 crore during FY2017, towards expansion of 28,800 spindles at its Baddi, Himachal technology up-g
Slide 14: Key Business Updates
Key Business Updates Credit Rating upgrades during the Year CARE upgrades STIL rating to CARE AA (Double A) for Long Term Bank Facilities (Term Loan) and for Long Term Bank facilities (Fund based) from CARE AA- (Double A minus) signifying high degree of safety regarding timely servicing of financi
Slide 15: Corporate Overview
Corporate Overview
Slide 16: Company Overview
Company Overview Leading Textile Player India’s largest Spun-dyed Yarn manufacturer Presence across value chain – from Yarn to Home Textile 4,16,616 spindles capacity of Yarn 9.6 Million Meters Per Annum capacity of Home Textiles Global Presence over 60 countries across Europe, North America, South-
Slide 17: Journey at Glance
Journey at Glance Demerger of Bhawanimandi: 31,104 spindles added at Chenab Sutlej Industries and Completed Expansion of 7,488 spindles Textile Mills - J&K for value Damanganga Processor for PV Dyed Yarn added cotton mélange and cotton Limited blended dyed yarn 12,672 Spindles added for manufacturin
Slide 18: Corporate Governance at the Helm
Corporate Governance at the Helm Board of Directors Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Mr. C.S. Nopany Independent Independent Independent Independent Executive Chairman Non Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Rajiv K. Podar Mr. Mahmoo
Slide 19: State of the art manufacturing facilities
State of the art manufacturing facilities … Location: Kathua, J&K Location: Baddi, Himachal Pradesh Products: Cotton Mélange Yarns Products: Cotton Yarns Man-made Fibre Yarns Man-made Fibre Yarns Capacity: 109,010 Spindles (Cotton Mélange ) Capacity: 83,376 Spindles 97,366 Spindles (Man-made Fibre)
Slide 20: Wide distribution network and marquee clientele
Wide distribution network and marquee clientele Presence and strong brand image across globe in over 60 countries… Evolved as vendor to… …partner to leading textile solution Expanded global foot print … providers …De-risk over dependence on few geography 19
Slide 21: Headway towards Exports
Headway towards Exports Domestic & Export Revenue Break Up (Rs. Cr) Yarn & Home Textile FY17 Revenue Break Up (Rs. Cr) Yarn Revenue (Rs. Cr) Home Textile Revenue (Rs. Cr) Domestic (%) Export (%) Domestic (%) Exports (%) Domestic (%) Exports (%) 1,680 1,881 1,878 2,074 2,250 1,980 2141 94 108 20% 25%
Slide 22: Diverse and wide product portfolio
Diverse and wide product portfolio Yarn Home Textile One stop shop for all kinds of spun dyed yarns Focus on value added yarns that fetched superior realisations Diversified offerings with presence across value chain 21
Slide 23: Segment Presence – Yarn & Home Textiles
Segment Presence – Yarn & Home Textiles
Slide 24: Yarn - Consistent capacity addition over the years
Yarn - Consistent capacity addition over the years Spindles capacity Sales (MT) 416,616 377,688 94,186 98,317 293,736 253,000 261,736 76,334 79,666 80,040 208,104 155,456 FY13 FY14 FY15 FY16 FY17 FY05 FY08 FY12 FY14 FY15 FY16 FY17 Invested in modernization ~50% of spindle age are less than a decad
Slide 25: Registering strong growth in Yarn segment
Registering strong growth in Yarn segment… Revenue (Rs. Cr) Average Sales Realisation (Rs / Kg) 2,141 222 219 215 1,980 207 207 1,768 1,784 1,581 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 … through multiple capacity expansions as well as profitable acquisitions 24
Slide 26: Home Textiles – Entering Growth Orbit
Home Textiles – Entering Growth Orbit Capacity (Million Meters Per Annum) Entered the Home Textiles segment in 2006-07 9.6 Capacity expanded by 4.6 mm pa to 9.6 mm pa in FY17 Continued focus on exports for better realization. Product range includes 5.0 o Curtain Fabrics o Upholstery Fabrics
Slide 27: Annual Financial Performance
Annual Financial Performance
Slide 28: Total Income at new peak
Total Income at new peak … 2,287 2,108 Home Textiles 1,923 1,918 1,728 5% 95% 95% Yarn FY13 FY14 FY15 FY16 FY17 Figures in Rs Crore 27
Slide 29: Highest ever profitability
… Highest ever profitability EBITDA (Rs Cr) Net Profit (Rs Cr) 319 158 306 302 143 272 131 234 115 77 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 28
Slide 30: and strong financial position
… and strong financial position Average Interest Rate of Term Loans Comfortable Total Debt / Equity Ratio Robust Interest Coverage (After TUF) 5.2 4.9 7.5% 4.0 7.3% 3.8 7.2% 1.9 6.8% 2.5 1.4 1.3 1.2 6.2% 1.1 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 29
Slide 31: Strong Balance Sheet
Strong Balance Sheet… Growing Gross Block (Rs Cr) Increasing Networth (Rs Cr) Surging Earning Per Share (Rs) 816 1,985 683 1,650 96 1,397 558 88 1,226 80 1,147 462 71 346 47 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Continuous growth plan leading to consistent profit
Slide 32: with healthier return ratios in the industry
…with healthier return ratios in the industry Return on Equity (RoE) Return on Capital Employed (RoCE) 28% 28% 22% 23% 23% 21% 21% 19% 20% 17% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 RoE = Profit After Tax /Networth RoCE = EBITDA/Capital Employed (Networth + Debt) Generating Returns above
Slide 33: Dividend history of the Company
Dividend history of the Company Dividend Per Share (Rs) Dividend Payout (%) 18 13 13 17 16 10 12 8 8 5 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Board recommended Dividend of Rs.13 per equity share for FY17 32
Slide 34: Key financial highlights FY-15, FY-16 and FY-17
Key financial highlights FY-15, FY-16 and FY-17 Rs. in Cr USD mn Particulars FY15 FY16 FY17 FY15 FY16 FY17 Total Revenues 1,918 2,302 2,287 315 339 341 EBITDA 272 311 319 45 46 48 PAT 115 143 158 19 21 24 Total Assets 1,341 1,709 2,045 220 251 305 Net Worth 558 676 816 92 99 122 Long Term Debt 339 4
Slide 35: Business Outlook
Business Outlook
Slide 36: Growth Strategies
Growth Strategies Niche Value Added Products Consistent production of high margin value added products to result in greater proportion of Cotton blended dyed and Mélange Yarn in the overall mix. Incremental capacity dedicated towards 100% Polyester Industrial Yarn and other grey blended specialt
Slide 37: Sutlej Textiles – Value Chain
Sutlej Textiles – Value Chain Process Raw Material Spinning Offerings by Sutlej Yarn Spun Dyed Yarn Cotton, Polyester, & Output etc Yarn Melange Yarn Weaving/ Process Yarn Processing Offerings by Sutlej Knitting Home Curtains Textile & Processed Curtains & Upholstery Output Fabric fabrics Upholstery
Slide 38: Domestic Home Textile Market – Large Opportunities
Domestic Home Textile Market – Large Opportunities Category wise market break-up (Rs Cr) Indian Home Textile Industry (USD billion) Categories 2011 2021 (P) CAGR (%) Bed Linen 8,965 19,350 8.0 Towels 3,320 7,060 7.8 40,780 Curtains 1,850 4,790 10.0 Blankets 1,465 2,850 6.9 Upholstery 1,190 3,080 10.
Slide 39: Indian Textile Sector - Present
Indian Textile Sector - Present $137 Billion Indian Textile sector current size Largest employment generator, Employs 45 mn people directly 2nd Million spindles along with 842,000 Rotors capacity across ~3,400 mills 50 15% Share in country’s export earnings Contribution to India’s manufacturing prod
Slide 40: Indian Textile Sector Potential
Indian Textile Sector Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 9.9 58 31 6.6 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Competitive Adv
Slide 41: Let's Connect
About Sutlej: Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Executive Chairman of STIL, a Chartered Accountant and Master of Science in In
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