Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q4 FY23 Earnings Presentation
42 slides from Banswara Syntex's earnings presentation, May 16, 2023
Slide 1: Banswara Syntex Ltd. Investor Presentation
Banswara Syntex Ltd. Investor Presentation May 2023 1
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: Q4&FY23 Highlights
Q4&FY23 Highlights 3
Slide 4: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Ravindra Kumar Toshniwal, Managing Director said, "It is with great pleasure that I highlight the remarkable performance of FY 23. This Financial Year witnessed our highest ever revenues and profits, a testament to our success. Our earnin
Slide 5: Q4 & FY23 Highlights
Q4 & FY23 Highlights Total Income* EBITDA PBDT PAT +0.3% +15.3% +15.1% +43.0% 373 374 56 48 28 48 42 19 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Total Income* EBITDA PBDT PAT +25.1% +53.4% +58.8% +138.2% 1,513 213 181 111.396 1,209 139 114 46.757 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY2
Slide 6: Revenue Mix – Segmental and Geography wise
Revenue Mix – Segmental and Geography wise Division-Wise Gross Revenue (Rs. in Crores) Geography-wise Gross Revenue (in %) 1,499 16 1,350 1,295 34 1,290 37 27 368 1,190 282 38 252 255 43% 41% 45% 44% 45% 48% 199 787 557 497 496 25 397 584 102 306 55% 56% 57% 59% 55% 52% 537 512 556 558 422 354 FY18
Slide 7: Q4 & FY23 Highlights
Q4 & FY23 Highlights Yarn Fabric Garment Other Highlights For Q4FY23, yarn sales dropped 18% For Q4FY23, garment sales grew by For Q4FY23, fabric sales grew by Exports sales grew 3% to Rs 193cr in to Rs 126cr vs Rs 154cr in Q4FY22 41% to Rs 97cr vs Rs 69cr in Q4FY22 3.7% to Rs 141cr vs Rs 13
Slide 8: Improvement in Credit Rating
Improvement in Credit Rating India Ratings and Research (Ind-Ra) has upgraded Banswara Syntex Limited’s (BSL) bank facilities as below: Instrument Type Maturity Date Size of Issue (million) Rating/ Outlook Rating Action INR 1,677.6 (reduced from Long-term loans Mar-30 IND A/Stable Upgraded 2,197.3)
Slide 9: Standalone Profit and Loss Statement
Standalone Profit and Loss Statement Rs. in Crs. Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Operating Margins: Revenue from Operations 369.0 367.4 0.4% 367.9 0.3% 1498.8 1189.8 26.0% Margins improved due to Other Income 5.1 5.7 4.9 14.6 19.7 Reduction in Power and Fuels costs- The per tonne coal c
Slide 10: About US
About US Our Specialty is Value Added Textiles 10
Slide 11: Our Journey
Our Journey • Started production of wool & wool • Started production of mixed fabrics in the brand name of Readymade Garments `SaintX` for domestic supply. • Banswara Textile Mills Ltd. • Started second unit of 15 MW (BTM), an associate firm captive thermal power plant. engaged in fabric finishing 1
Slide 12: 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 Middle East with Italy and France 12,000+ Employees Japan Corporate Office - Mumbai Manufacturing Plants - • Banswara, Rajasthan In H
Slide 13: Manufacturing Capabilities
Manufacturing Capabilities Dyeing Unit Spinning Unit Weaving Unit Garmenting Unit The Company owns • 1,59,000 Spindles YARN FABRICS GARMENTS POWER GENERATION • 400 Looms Weaving- 2.7Mn Meters/ month 6,00,000 pieces per month of Trouser, 3,060 Tonnes / month Processing- 4.5Mn Meters/ Suiting's 33 MW
Slide 14: Strategically Located Facilities
Strategically Located Facilities Manufacturing Facilities’ proximity to raw material suppliers ensures stable and sustainable supply It also ensures strong relationship with suppliers while maintaining need-based approach Easy Availability of skilled and Unskilled labour Quality Infrastructure conne
Slide 15: Leadership Team
Leadership Team Founded the Company in the year 1976. Masters in Textiles from Leeds University, UK. 55 years of experience in the textile industry. Late Shri. Toshniwal Ex-Chairman of Rajasthan Textile Mills Association, Ex-President of Indian Spinners Association and Ex-Chairman of the Synthet
Slide 16: Board of Directors
Board of Directors Mr. Rakesh Mehra Mr. Ravindra Kumar Toshniwal Mr. Shaleen Toshniwal Chairman Managing Director Joint Managing Director Mr. Parduman Kumar Mr. D P Garg Mr. J. M. Mehta Independent Director Independent Director Independent Director Mr. Vijay Mehta Mr. Kamal Kishore Kacholia Dr. S B
Slide 17: Strong Professional Management Team
Strong Professional Management Team Ms. Kavita Gandhi Mr. Devendra Pratap Misra Mr. Swapnil Shrivastava CFO CTO DGM – Corporate HR Chartered Accountant from ICAI Over 30 years of experience in Msc (Math), MCA, LLB Over 15 years of experience across the field of Accounts, Taxation, Over 29
Slide 18: Business Segments
Business Segments 18
Slide 19: Yarn Business – The Building Block
Yarn Business – The Building Block Preferred Partner for the quality Focused Customers for Synthetic Blended Yarns Multi-specialty Yarn range with functional features Production of blends made of Stretch Yarns for weaving using viscose staple fibre, polyester staple fibre, acrylic branded lycra and
Slide 20: Yarn
Yarn “The Yarn Division experienced a slight dip of 1% due to a slowdown in the general market conditions and lower order book positions in Q4. However, despite the challenges, our yarn sales remained flat at 558 crores compared to FY22. During Q3, we adjusted production by shutting down certain rin
Slide 21: Fabric Business – The Growth Engine
Fabric Business – The Growth Engine Company is Focusing on High-Quality & Performance Fabrics Company sees favorable opportunities in production of Comfort fabric Expansion in Value Leveraging our Current Presence Flexibility in production due to best-in-class technology and state-of- Added Fabrics
Slide 22: Fabric Business – Growth Plan
Fabric Business – Growth Plan Improve the Product Mix Potential Partnerships Target Markets Establishing a fabric brand to Potential partnerships with synergistic capitalize on the distribution benefits network built over 3 decades USA Europe Japan & Korea To shorten lead times by partnering with De
Slide 23: Fabric
Fabric “I am delighted to share that our Fabric Division has experienced a remarkable 41% increase in sales. Despite lower order book positions in Q3, our year-to-date production for March 2023 has significantly surpassed the previous year's figures. This growth can be attributed to increased demand
Slide 24: Garment Segment – Value Addition Division
Garment Segment – Value Addition Division Garments is one of the fastest growing segments in the Textile industry One of the Largest manufacturer of 15+ years Experience specialized Formal Suits, Jackets and Strong international presence with long term relationships with in Garment manufacturing cus
Slide 25: Garment
Garment “In the fiscal year 2022-23, our division experienced an exceptional surge in sales, reaching a record-breaking ~370 crores. Despite a previous decline in the formal tailored clothing segment during the pandemic, we successfully diversified into casual fashion, ensuring our survival. However
Slide 26: Domestic Clientele
Domestic Clientele E-Commerce Clients 26
Slide 27: International Clientele
International Clientele Working with some of the world’s biggest names 27
Slide 28: 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 29: Strategic Focus & Outlook
Strategic Focus & Outlook 29
Slide 30: Industry expected to grow at ~11% CAGR over the next 5 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 191 13 post covid induced lockdowns; fall in retail sales, logistical 10.3% CAGR 43 disruptions, manufacturing shutdo
Slide 31: China +1 provides huge opportunity for Indian Textiles Industry
China +1 provides huge opportunity for Indian Textiles Industry With favorable India Covid-19 has led to Demographics and redistribution of global Industry Dynamics, India trade shares and is capable to position recalibration of sourcing 01 06 itself as a Global Partners Textiles hub China +1 provid
Slide 32: Why Banswara Syntex Limited?
Why Banswara Syntex Limited? Modernized Skilled Design Competent Transition to Outlook to and Marketing Leadership Value Added Textiles and Teams Team Products Fashion Investment Rationale Focus on Vertically Export and Consistently 40+ years of integrated Industry Domestic business Lowering Debt Ma
Slide 33: Vertical Integration - A Game Changer for Banswara
Vertical Integration - A Game Changer for Banswara Benefits Covers All Economies Geographic Product requirements- of Scale Expansion Specialization One Stop Shop 02 04 06 08 01 03 05 07 Sustainability Improved Competitive Significantly Supply pricing Lesser Lead Time Chain Co- ordination
Slide 34: Operational Focus
Operational Focus Cost Optimisation Measures ▪ Switched to grid power as thermal power cost has increased ▪ Looking to increase usage of solar Improvement in Capacity Utilization power and targeting zero thermal ▪ Demand improvement across power usage textile value chain across domestic ▪ Improvemen
Slide 35: FY24 : The Road Ahead
FY24 : The Road Ahead Revenues Revenue Breakup PBDT 1,550-1,700 7.66% 8%-10% 1,499 17% 25% 25% 1,207 185-195 47% 37% 37% 181 803 111 33% 37% 38% 60 3% 1% 0% FY22 FY23 FY24E FY21 FY22 FY23 FY24E FY21 FY22 FY23 FY24E Garments Yarn Fabric Others Banswara is well placed Target is to to capitalize its de
Slide 36: Financials
Financials
Slide 37: 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 38: 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 39: 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 40: Key Balance Sheet Items
Key Balance Sheet Items Net Debt* (Rs. Crores) Debt-Equity Ratio* Increase in debt was on account of the following reasons: ▪ Increase in working capital 585 3.2 due to increase in trade 557 2.9 receivables in all the 479 business segments 2.2 ▪ Additional term loan of Rs 328 339 17 Crores used to i
Slide 41: 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 *Dividend % has been calculated using FV Rs. 5 41
Slide 42: Contact Us
Contact Us Company: Investor Relations Advisors: Banswara Syntex Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Ms. Kavita Gandhi Ms. Brinkle Shah Jariwala/Mr. Rahul Agarwal secretarial@banswarasyntex.com Brinkle.shah@sgapl.net / rahul.agarwal@sgapl