Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — H1 FY24 Earnings Presentation
40 slides from Banswara Syntex's earnings presentation, Nov 6, 2023
Slide 1: Investor Presentation
Investor Presentation Banswara Syntex Limited November 2023
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Banswara Syntex Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 3: Q2 & H1 FY24 Highlights
= ERTL Q2 & H1 FY24 Highlights
Slide 4: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Ravindra Kumar Toshniwal, Managing Director said “The first half of the fiscal year was challenging for the overall industry on the back of subdued demand in both domestic and global markets. Our topline witnessed a 18.6% de-growth in H1F
Slide 5: H1FY24 Highlights
H1FY24 Highlights Key Highlights Yarn Total Income* For H1FY24, yarn sales declined by 13% YoY to Rs 264 cr owing to a lower demand coupled with pricing pressure in spinning mills Rs. 618.6 cr Despite the lower demand and pricing pressure, the company witnessed a rise of 6% in sales volume on a
Slide 6: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y FY23 Revenue from Operations 315.9 406.5 302.7 618.6 762.0 1498.8 Raw Material Consumption: Other Income 2.2 1.5 3.4 5.6 4.5 14.6 The raw material consumption is at similar levels on a Q-O-Q basis
Slide 7: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Sep-23 Mar-23 Equity & Liabilities (Rs. in Crs) Sep-23 Mar-23 Non-current assets 473.3 444.4 Equity 518.1 509.1 Property, Plant & Equipment 376.4 362.8 Equity share capital 17.1 17.1 Right of use assets 4.9 5.3 other equity 501.0 492.0 Capital Work in prog
Slide 8: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crores) Sep-23 Sep-22 Operating profit before working capital changes 59.7 99.8 Changes in working capital 65.9 -173.2 Cash generated from operations 125.6 -73.4 Income Tax Refund/(Direct Taxes Paid) 7.7 20.3 Net Cash from Operating Activities (A) 117.9 -93.7 Net Cash fr
Slide 9: About Us
About Us Our Specialty is Value Added Textiles
Slide 10: Our Journey
Our Journey • Commenced Operations and • Started first unit of 18 MW • Started production of Super-stretch women started Yarn production with captive thermal power plant Fabrics 12,500 spindles • Started production of Made- • Addition of additional processes to Vertical • Started Fabric Weaving unde
Slide 11: Our Global Footprint
Our Global Footprint Incorporated in the year 1976 Offering Vertically Integrated Experienced Design Teams textile solutions Europe Design Studio in Collaboration USA Japan Middle East with Italy and France 9,000+ Employees Corporate Office - Mumbai Manufacturing Plants - • Banswara, Rajasthan In Ho
Slide 12: Manufacturing Capabilities
Manufacturing Capabilities Manufacturing Capex Done: Capacity H1FY24 Dyeing Unit 3,060 Tonnes / month Rs. 28 Crs. The Company owns YARN • ~1,51,000 Spindles Weaving- 3.2Mn Meters/ month • 464 Looms Spinning Unit Processing- 4.5Mn Meters/ Rs. 18 Crs. FABRICS month 3,25,000 Trouser & Suiting's/ Month
Slide 13: Strategically Located Facilities
Strategically Located Facilities Quality Infrastructure connectivity through Rails, Roads and Ports ensures seamless dispatches to domestic markets and exports Easy Availability of skilled and Unskilled labour Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainab
Slide 14: Leadership Team
Leadership Team Founded the Company in the year 1976. Masters in Textiles from Leeds University, UK. 55 years of experience in the Late Shri. Toshniwal textile industry. Founder Chairman Ex-Chairman of Rajasthan Textile Mills Association, Ex-President of Indian Spinners Association and Ex-Chairm
Slide 15: Board of Directors
Board of Directors Mr. Kamal Kishor Kacholia Mr. Parduman Kumar Dr. Vijay Mehta Independent Director Independent Director Independent Director Renowned industrialist. He holds a degree in A Chartered Accountant, M.A. and LLB, he is on the Renowned stockbroker and financial consultant. He Chemical En
Slide 16: Strong Professional Management Team
Strong Professional Management Team Mr. Vireshwar R. Joshi Mr. Shailendra Pandey Mr. Rahul Bhaduriya Ms. Kavita Gandhi Mr. Devendra Misra Mr. Swapnil Shrivastava Head – Yarn Division Head – Fabric Division Head – Garment Division CFO CTO DGM – Corporate HR Over 30 years of MSc – Textile Gradua
Slide 17: Business Segments
Business Segments
Slide 18: Yarn Business – The Building Block
Yarn Business – The Building Block GROWTH DRIVERS Preferred Partner for the quality Focused Customers for Synthetic Blended Yarns Multi-specialty Yarn range Integration of Banswara products into with functional features Stretch Yarns for weaving using supply chains of larger brands branded lycra and
Slide 19: Yarn
Yarn Commenting on the yarn segment, Mr. Vireshwar Joshi, Head of Yarn Division, said, “Pricing pressure in spinning mills combined with a subdued demand led to a soft performance for the first half of the year FY23-24. We are constantly in the attempt to venture into new products, change the produc
Slide 20: Fabric Business – The Growth Engine
Fabric Business – The Growth Engine Expansion in Leveraging our Company sees favourable opportunities in Current Presence Value Added Advantages production of Comfort fabric Fabrics Worsted Stretch Fabrics Renowned player Flexibility in production due to best-in-class technology and Wool S
Slide 21: Fabric Business – Growth Plan
Fabric Business – Growth Plan Establishing a fabric brand to capitalize on the distribution network built over 3 decades Venturing into production of Knitted fabrics 01 Improved Product Mix Increasing the market share in production of high value-added Technical Fabrics Evaluation of producti
Slide 22: Fabric
Fabric Commenting on the fabric segment, Mr. Shailendra Pandey, Head of Fabric Division, said, “The sluggish performance for H1FY24 was owing to the underperformance from the US and UK markets by more than 50%. Although the European, Middle East and domestic market performed as expected. Having said
Slide 23: Garment Segment – Value Addition Division
Garment Segment – Value Addition Division GROWTH DRIVERS Garments is one of the fastest growing segments in the Textile industry COMFORT GARMENTS Move towards manufacturing of Comfort One of the Largest manufacturer Strong international presence garments made from Bi Stretch/ Knitted of specialized
Slide 24: Garment
Garment Commenting on the garment segment, Mr. Rahul Bhaduriya, Head of Garment Division, said, “Performance for H1 was impacted due to an overall slowdown in the market specially in the suits and blazers category. This trend continues for H2 as well where demand for blazers and suits continues to r
Slide 25: Domestic Clientele
Domestic Clientele E-Commerce Clients 25
Slide 26: International Clientele
International Clientele A BaNswaRa © YD | bermacys||JCPenney)) TARGET ec ah\/ La DOUGLAS&GRAHAME| | TESCO septa anata US [| PEERLESS Joa AP Se: 0.» kmart. 26
Slide 27: CSR Activities
CSR Activities Creation of garden in Banswara to provide locals with a means of recreation Cleaning of lake near the garden to increase the oxygen level of the water body. This has helped in the reduction of mosquitos and has brought back migratory birds Creation of a walking path of 5 KM along the
Slide 28: Strategic Focus and Outlook
Strategic Focus and Outlook
Slide 29: Industry expected to grow at ~11% CAGR over the next years
Industry expected to grow at ~11% CAGR over the next 5 years Indian Domestic Apparels and Textiles Market (USD bn) • Domestic textile and apparel industry faced a range of challenges post 191 13 covid induced lockdowns; fall in retail sales, logistical disruptions, 10.3% manufacturing shutdown and c
Slide 30: China +1 provides huge opportunity for Indian Textiles Industry
China +1 provides huge opportunity for Indian Textiles Industry Increasing exports Increased Domestic Production India Textiles exports expected With the improvement in domestic to grow at ~11% CAGR to reach economy and increase in exports, Domestic $ 65 bn by 2026 from pre-covid Production is expec
Slide 31: Why Banswara Syntex Ltd?
Why Banswara Syntex Ltd? Modernized outlook to textiles and fashion 01 Focus on export and 40+ years of industry experience domestic markets led by a competent leadership 06 02 team Investment Rationale Consistently Lowering Debt Skilled design and marketing 05 03 teams 04 Transition to Value Added
Slide 32: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara 01. Sustainability 02. Geographic Expansion 03. Economies of Scale 04. Improved Supply Chain Co- ordination 05. Product Specialization 06. Competitive Pricing 07. Significantly Lesser Lead Times 08. Covers All Requirements – One Stop Shop 32
Slide 33: Operational Focus
Operational Focus Improvement in Capacity Utilization Cost Optimisation Measures Increase in Value Added Products • Demand improvement across textile • Switched to grid power as thermal power cost • Structural shift in demand towards quality value chain across domestic and has increased fabrics Inte
Slide 34: Financials
Financials
Slide 35: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs FY23 FY22 FY21 FY20 Revenue from Operations 1,498.8 1,189.8 786.6 1,289.5 Other Income 14.6 17.0 16.2 12.9 Total Income 1,513.4 1,206.7 802.8 1,302.4 Total Expenditure Raw materials 628.8 526.9 375.1 601.3 Employee Expense 286.3 220.9 153.1 241.7 Power
Slide 36: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crs) Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (Rs. in Crs) Mar-23 Mar-22 Mar-21 Mar-20 Non-current assets 444.4 377.1 360.3 393.6 Equity 509.1 400.1 357.4 341.9 Property, Plant & Equipment 362.8 306.4 330.8 370.7 Equity share capital 17.1 17.1 17.1 17.1
Slide 37: Standalone Cash Flow
Standalone Cash Flow (Rs. in Crores) Mar-23 Mar-22 Mar-21 Mar-20 Operating profit before working capital changes 208.8 133.9 89.8 150.7 Changes in working capital -145.2 -57.1 45.3 65.5 Cash generated from operations 63.6 76.8 135.1 216.1 Income Tax Refund/(Direct Taxes Paid) 43.4 22.6 -2.7 -10.8 Ne
Slide 38: Key Balance Sheet Items
Key Balance Sheet Items Net Debt* (Rs. Crores) Debt-Equity Ratio* ▪ The net debt has reduced by 585 3.2 Rs 24 crore to Rs 315 crore 557 as on H1FY24 2.9 479 ▪ Overall debt equity ratio has 2.2 improved from 0.7x to 0.6x 328 339 as on H1FY24 315 244 262 1.4 0.8 0.7 0.7 0.6 Mar-17 Mar-18 Mar-19 Mar-20
Slide 39: Dividend Payout History
Dividend Payout History Dividend (%)* 20% 20% 30% 30% 50% 60% 32.6 31.1 EPS DPS 14.2 13.7 8.5 4.9 2.5 3.0 1.0 1.0 1.5 1.5 FY18 FY19 FY20 FY21 FY22 FY23 The company has Consistently declared dividends Year-on-Year 39 *Dividend % has been calculated using FV Rs. 5
Slide 40: Investor Relations Contacts
Company: Investor Relations Advisors: Banswara Syntex Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Ms. Kavita Gandhi Ms. Aakash Mehta/Mr. Rahul Agarwal secretarial@banswarasyntex.com aakash.s.m@sgapl.net / rahul.agarwal@sgapl.net +91 9870679263/+9