32 slides from S.p. Apparels's earnings presentation, Aug 14, 2019
Slide 1: Filing cover letter to stock exchanges
I S.P.APPARELS LTD. Regd. Office : 39—A, Extension Street, Kaikattipudur, AVlNASl-Il 641 654, Tamil Nadu, indie, — {931' Phone : 491-4296414000 E-mail : spindia@s-p—apparels.com Web : www.s-p«apparels.com ClN No.: L18101T22005PLC012295 l4”‘ August, 2019 The Listing Department ~ The Listing Departmen
Slide 2: Investor Presentation Q1 FY20 Results Update
S.P.APPARELS LIMITED INVESTOR PRESENTATION Q1 FY20 Results Update August 2019
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial co
Slide 4: Q1 FY20 - Key Highlights
Q1 FY20 - KEY HIGHLIGHTS ❑ Total Revenues 1 grew by 20% on YoY basis ❑ Garment Exports Division grew by 26% on YoY basis driven by both existing and new customers ❑ SPUK Operations de-grew by 16% on YoY basis ❑ Retail Division grew by 6% on YoY basis ❑ Adj. EBITDA2 decreased by 2.1% on YoY basis and
Slide 5: Q1 FY20 Results Update
Q1 FY20 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 6: Q1 FY20 Result – Key Highlights
Q1 FY20 RESULT – KEY HIGHLIGHTS Q1 FY20 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 1,871.1 2,251.0 14.0% 10.7% 6.7% 11.4% 3.3% 261.4 255.9 4.8% 199.7 125.9 20 % -2.1 % -45.4 % -41.8 % 109.0 73.3 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20
Slide 7: Q1 FY20 Result – Division Wise Analysis
Q1 FY20 RESULT – DIVISION WISE ANALYSIS In Rs Mn Q1 FY20 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q1 FY19 Q1 FY20 2251.0 207.0 Garment Exports 81.5% 85.2% 1871.1 125.8 195.9 SPUK 8.0% 5.6% 149.6 Retail 10.5% 9.2% 5.7 % 1,918.3 1,525.6 -15.9 % Adj. EBITDA MARGIN % 2 Q1 FY19 Q1 F
Slide 8: Q1 FY20 Result – Key Analysis
Q1 FY20 RESULT – KEY ANALYSIS FINANCIAL UPDATE: • Q1 FY20 total revenues1 increased by 20% YoY to Rs 2,251.0 mn. • Revenues increased by 25.7% in Garment Exports and 5.7% in Retail. • Garment Exports witnessed healthy traction on account of orders from new customers as well as existing customers. •
Slide 9: Q1 FY20 Result – Consolidated Profit & Loss Statement
Q1 FY20 RESULT – CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY20 Q1 FY19 YoY% FY19 Revenue from Operations 2176.1 1908.1 14.0 8,263.8 Gain on account of Foreign Currency Fluctuations 75.0 -37.0 - -159.2 Total Revenues 2251.0 1871.1 20.3% 8,104.6 COGS 930.5 793.1 17.3 3,266.0 Gros
Slide 10: FY19 – Consolidated Balance Sheet
FY19 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Mar-19 Mar-18 Particulars (Rs Million) Mar-19 Mar-18 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 251.7 a. Property, Plant and Equipment 3,107.3 3,007.7 Other Equity 4,581.7 3,720.3 b. Capital work
Slide 11: Company Overview
Q1 FY19 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 12: Brief Profile
BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪ SPAL is also the
Slide 13: Our Evolution
OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase efficiencies and
Slide 14: Leading Exporter of Infant & Children Wear in India
LEADING EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decades • Labour intensive operations.
Slide 15: Preferred Vendor to Reputed International Brands
PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including body suits, sleep su
Slide 16: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES INTEGRATED BUSINESS LOCATION ADVANTAGE: MODEL • All 26 manufacturing facilities are located within a radius of ~125 km of our Registered Office near Product Development Tirupur (leading hub in India for knitted garments for children and exp
Slide 17: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 16
Slide 18: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 17
Slide 19: Strong In-House Design Expertise
STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and des
Slide 20: Stringent Quality Controls & Compliance
STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each piece of garment f
Slide 21: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 20
Slide 22: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL IS STRENGTHENING ITS RETAIL PRESENCE BY EXPANDING THE REACH OF CROCODILE BRAND OUR RETAIL STORE PRESENCE • SPAL undertakes manufacturing and retailing activities in India under the ‘Crocodile’ brand. • SPAL sells wide range of adult menswear products like shirt
Slide 23: Qualified Management with Deep Understanding of Apparel Sector
QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Four years of experience in the • Founder director of SPAL with 33 Founder director of SPA with 26 years textile and
Slide 24: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mr P. Yesuthasen Independent Director Independent Director • 45 years of experience in banking • 42 years of experience in banking • Masters of Science from the University • MS in Business Administration, Cass of Madras Business Sch
Slide 25: Business Strategy & Outlook
Q1 FY19 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 26: Capacity Expansion & Backward Integration
CAPACITY EXPANSION & BACKWARD INTEGRATION Existing Business Model SPAL has utilized Rs 750.7 mn from the Net IPO Proceeds towards: 1. Enhancing spinning capacity – Capex of Rs 472.4 mn (completed) Product Development • Spinning capacity from 16,896 to 22,272 spindles (completed) • Blow room capacity
Slide 27: Expand Retail Presence Across India
EXPAND RETAIL PRESENCE ACROSS INDIA PROPOSED EXPANSION OF RETAIL PRESENCE OVER THREE YEARS • Growing aspiration levels of people in Tier II, III and IV cities in India along with rising brand awareness and higher disposable income makes these smaller urban areas as focal points for expansion. • SPAL
Slide 28: Financial Overview & Shareholding Structure
Q1 FY19 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 29: Financial Overview
FINANCIAL OVERVIEW In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN CAGR: 9.3% CAGR: 8.9% CAGR: 11.1% 8.5% 8.9% 16.0% 16.2% 7.2% 8,264 16.4% 6,330 6,624 1,338 734 1,036 1,058 536 478 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 * Excludes exceptional item of write-off of amou
Slide 30: IPO Proceeds Utilisation
IPO PROCEEDS UTILISATION Utilization of Net proceeds as on 30st June 2019 Particulars (Rs million) Utilization Planned Amount Utilized Amount Pending Utilization Expansion and modernization of manufacturing facility 701.6 701.6 0.0 Repayment or prepayment of debt 630.0 630.0 0.0 Opening of new store
Slide 31: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 30th June 2019 KEY SHAREHOLDERS – 30th June 2019 Goldman Sachs India Ltd 5.21% Non-Institutions 18.3% UTI Mutual Fund 5.18% Promoters 61.6% DSP Blackrock Small Cap Fund 4.81% Aditya Birla Sun Life Insurance Company 3.20% Institutions 20.1% ICICI Prudenti
Slide 32: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Chief Financial Officer Email: balaji.v@spapparels.com Mr. Chinmay Madgulkar /Mr. Chintan Mehta IR Consultant Email: s.p.apparels@dickensonworld.com Contact no: +91 9860088296/ 9892183389