Slide 1: Cover letter to NSE on revised investor presentation
May 29, 2023 The Listing Department, National Stock Exchange of India Limited, ‘Exchange Plaza’, C 1, Block G, Bandra – Kurla Complex, Bandra (E), Mumbai 400 051 Symbol: PRECOT Dear Sir/Madam, Sub: Investors Presentation - reg Pursuant to Regulation 30(6) and Regulation 46(2)(o) of SEBI (Listing Obl
Slide 2: Precot Investor Presentation March 2023
Precot Reliable, Agile and Innovative Investor Presentation March 2023
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Precot Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 4: Yarn & Threads, Technical Textile overview
Yarn & Threads Technical Textile Private Label Specialist in Incorporated in 1962 cotton-based products in hygiene and cosmetics 5 state of art facilities with Wide range of cotton- based presence in products with End-to-End 4 states of South India capability Yarn & Technical Threads Textile 1.65 la
Slide 5: Company history and milestones
1962 1983 1992 1995 First Manufacturing Unit in Unit 2 with Unit 3 with 25,000 Unit 4 with 35,000 spindles Kerala with 12,000 29,000 spindles in spindles in Kerala in Tamil Nadu spindles Andra Prdaesh 2010 2002 1995 Dyeing Unit with annual capacity of 1800T of Commissioning of Doubling & Gassing Uni
Slide 6: Geographical Presence, Quality, Product Diversification
Geographical Presence Quality Captures the benefit of growing Delivering sustainable products with unmatched market opportunity in international quality and consistency. as well as domestic markets 03 04 Product Diversification Technical Advancements Introduction of new & value-added Automation for
Slide 7: Diversified range of cotton yarns and threads
Diversified range of cotton yarns and threads 165,000 spindles Organic, BCI & normal Newer and quality cotton and polyester products to create product differentiation Production of specialty Value addition and blended yarn Efforts to improve Products Integration operational with supply chains effici
Slide 8: Huge Export Opportunity Market
Enabling Factors for Growth Target Nations USA Private Label Sales in exports market Constant R&D for Rapid increase in demand for hygiene developing value-added products providing platform for Improve Product Mix and products to create value Indian players geographical presence for both global & do
Slide 9: Absorbent Cotton
Products End User Absorbent Cotton Our purifiedcotton Our purified cotton is OEKO contains zeroTex and residual REACH compliant chemicals, zero toxinsand andTotally Chlorine is Totally Chlorine Free (TCF). Free (TCF). Cotton buds Cotton Pads Sanitary Pads Tampons and Spunlace Wipes manufacturers Our
Slide 10: Exfoliating Pads
Products End User Our range of cotton balls are made Cotton Balls from 100% pure absorbent cotton. Cosmetic and Nail Paint medical purposes remover Patented woven textured 100% Cotton, Exfoliating Pads 100% Biodegradable exfoliating pads Nail Paint Gentle skin remover exfoliation 9
Slide 11: Cotton Spunlace Rolls
Products End User Highly absorbent wool rolls. Cotton Wool Rolls Pleats specially designed for easy tear- off & use General hygiene Baby cleaning Cotton Spunlace Rolls Our cotton spunlace is 4 layered, highly absorbent and has good strength for further processability Panty Liners Sanitary Pads 10
Slide 12: Yarn & Threads
Products End User Leading manufacturers of yarns & Yarn & Threads threads for textile production, knitting and sewing Weaving Knitting Sewing Textile Production 11
Slide 13: Key Highlights of the Manufacturing Processes
Key Highlights of the Manufacturing Processes ✓ Vertically integrated manufacturing capabilities with in- house design and development ✓ Increased automation and process improvements are being implemented in order to maintain quality and profitability. ✓ Compliance and Quality Standards: ISO 9001 &
Slide 14: Accessibility, Manpower, Infrastructure and Scalability
Accessibility Our Facilities are located close to the source of Raw material required for production enabling continuous supply and better ability to manage demand cycles Manpower Availability of both skilled and unskilled manpower helps in manpower planning Karnataka - Gowribidnur, Kolar Karnataka
Slide 15: Key Takeaways
Key Takeaways Key Takeaways Container availability and State of art Facilities located reduced freight cost providing in India export relief Canada UK Europe Middle East Bangladesh India USA Egypt Company has moved towards Vietnam Presence in over 25 countries solar and wind energy for its Sri lanka
Slide 16: Geography wise and Segment wise revenue
Geography wise (Rs. Crs) Segment wise (Rs. Crs) 157 453 386 244 92 284 119 270 272 139 798 665 675 473 501 532 577 426 424 504 FY19 FY20 FY21 FY22 FY 23 FY19 FY20 FY21 FY22 FY 23 Domestic Export Technical Textile Yarn Geography wise (%) Segment wise (%) 12.2 17.1 16.4 21.6 26.6 37.5 38.8 39.1 42.0 4
Slide 17: Growth strategy
Enhance existing & expand product portfolio • Focus on branding and promotion Increasing presence in overseas markets • Manufacturing and developing Value added • Plans to export to new geographies such as product portfolio 01 03 MENA & South East Asia in the next 5-10 years through increase reach a
Slide 18: Historical, existing and target mix
Historical mix Existing mix Target mix 11% 16% 35% FY18 FY22 FY25 65% 89% 84% Yarn Technical Textile Aiming to Increase our revenue share Higher share of value-added products Value added products to be targeted in technical textiles segment from 11% to aid in margin expansion and better in current a
Slide 19: Customer retailers and brands
Walmart Inc. CVS Pharmacy Walgreens ` ` ` Dollar General Dove The Kroger Co. ` ` ` Meijer Inc. K Mart ` ` Coles Supermarkets Aldi ` ` 18
Slide 20: Board of Directors
Mr. Ashwin Chandran Mr. Prashant Chandran Mr. T Kumar Designation - Chairman & MD Designation - Vice Chairman & MD Designation - Executive Director Age - 46 Years Age - 42 Years Age - 54 Years Experience - More than 22 years of experience Experience - More than 15 years of experience Experience - Mo
Slide 21: Certifications
Certifications Precot AC EC — Uf OEKO-TEX® ir. STANDARD 100 $i s 4 /) MAD 300 3 i 3 - Water wees pentiromm: A k o al — ‘sos =
Slide 22: Investments in Green Energy and sustainability
Investments in Green Energy - 5 MW Recycled Water Management with the Wind and 10 MW Solar generations and help of effluent treatment plants Gas based power plants Promoting Organic & Recycled Products in Active CSR with special focus on education both Spinning and Technical Textile and healthcare f
Slide 23: Financial Highlights
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Slide 24: Q4FY23 and FY23 revenue, gross profit, EBITDA, PAT
Revenue (₹ crore) Gross Profit (₹ crore) 505 993 954 331 Highlights 132.2 ➢ Q4FY23 Revenue 285 238 73.8 from operations stood at Rs 238 crore Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 as against Rs 285 crore in Q4FY22; EBITDA (₹ crore) PAT (₹ crore) ➢ EBITDA margins 188.8 105.4 were impacted o
Slide 25: Profit and Loss (Q4FY23, FY23)
Profit and Loss (in Rs. Crs) Q4FY23 Q4FY22 FY23 FY22 Revenue from Operations 238.0 285.0 953.8 993.3 Cost of Goods Solds 164.3 152.8 623.3 488.6 Gross Profit 73.7 132.2 330.5 504.7 Gross Profit Margin 31.0% 46.4% 34.7% 50.8% Employee Cost 21.0 24.2 84.6 93.6 Other Expenses 52.7 64.9 218.1 222.3 EBIT
Slide 26: Assets and Equity & Liabilities
Assets (in Rs. Crs) Mar-23 Mar-22 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Non - Current Assets 497.4 495.1 Total Equity 405.7 444.1 Property Plant & Equipment 443.7 428.0 Share Capital 12.0 12.0 CWIP 3 31.6 Reserves & Surplus 393.7 432.1 Intangible assets 0.3 0.4 Non-Current Liabilities 168.
Slide 27: Cash flow statement
As on As on Particulars (in Rs. Crs) 31-Mar-23 31-Mar-22 Net Profit/(loss) Before Tax -34.5 133.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 66.9 58.9 Operating profit before working capital changes 32.4 192.7 Changes in working capital 22.8 -117.2 Cash generated from Ope
Slide 28: Five-year Revenue, Gross Profit, EBITDA, PAT
Revenue (₹ crore) Gross Profit (₹ crore) 993 954 505 790 726 665 318 330.5 296 307 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBITDA (₹ crore) PAT (₹ crore) 189 105.5 93 33 57 48 27.8 -8 -17 FY19 FY20 FY21 FY22 FY23 -26 FY19 FY20 FY21 FY22 FY23 27
Slide 29: Profit and Loss five-year
Profit and Loss (in Rs. Crs) FY23 FY22 FY21 FY20 FY19 Revenue from Operations 953.8 993.3 665.1 726.1 790.1 Cost of Goods Sold 623.3 488.6 358.6 430.1 472.5 Gross Profit 330.5 504.7 306.6 296.0 317.7 Gross Profit Margin 34.7% 50.8% 46.1% 40.8% 40.2% Employee Cost 84.6 93.6 73.6 71.7 76.9 Other Expen
Slide 30: Balance sheet five-year
Assets (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (in Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 497.4 495.1 471.6 491.9 547.6 Total Equity 405.7 444.1 341.6 310.2 335.7 Property Plant & Equipment 443.7 428.0 437.4 462.5 511.5 Share Capital 12.0 12.0 1
Slide 31: Cash flow five-year
Particulars (in Rs. Crs) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax -34.5 133.8 33.0 -25.5 -7.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 66.9 58.9 64.2 63.00 67.8 Operating profit before working capital changes 32.4 192.7 97.1 38.3 60 Changes in working capital 22.8
Slide 32: For further information, please contact
For further information, please contact: Company: Precot Limited CIN: L17111TZ1962PLC001183 Mrs S. Kavitha kavitha@precot.com www.precot.com 31