Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q2 FY23 Earnings Presentation
28 slides from Sutlej Textiles & Industries's earnings presentation, Nov 7, 2022
Slide 1: Exchange filing cover letter for Q2 & H1FY23 result presentation
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, INDIA. Phone : (022) 4219 8800/6122 8989 Fax (022) 42198830 E-mail : info@sutlejtextiles.com Website: www.sutlejtextiles.com CIN. : L17
Slide 2: Sutlej Textiles and Industries Limited - Q2 & H1FY23 Result Presentation
Sutlej Textiles and Industries Limited Leadership in Yarns, Establishing a niche in Home Textiles Q2 & H1FY23 Result Presentation Nov 2022 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Q2 & H1 FY23 Result Updates
Q2 & H1 FY23 Result Updates
Slide 5: Financial Performance – Q2 & H1FY23
Financial Performance – Q2 &H1FY23 Consolidated (Rs Crore) Q2FY23 Q1FY23 Q2FY22 YoY % H1FY23 H1FY22 YoY % Total Income 826 853 798 4% 1,679 1,388 21% Cost of goods sold 431 405 413 4% 836 690 21% Gross Profit 395 447 385 3% 843 698 21% GP margin % 47.84% 52.48% 48.26% -42 bps 50.20% 50.28% -8 bps Em
Slide 6: Yarn Business Highlights
Yarn Business Highlights Capacity utilisation reports further Yarn Sales stabilised Switched Focus on Domestic market improvement at 95% Standalone Sales (Rs Crs) 28,922 779 882 810 94% 94% 95% 25,009 25,540 45% 44% 42% 55% 56% 58% Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Yarn
Slide 7: Balance Sheet (Consolidated) - Highlights
Balance Sheet (Consolidated) - Highlights Decrease in overall Debt due to reduction in both Long Consistently keeping the Debt to Equity below 1x… term and Short term Debt. 0.97 0.95 920 871 907 942 799 0.91 0.86 381 291 339 464 0.70 496 539 580 569 478 303 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21
Slide 8: From the Executive Chairman's Desk
From the Executive Chairman’s Desk Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The global economic turmoil coupled with inflationary pressures has resulted in a challenging operating environment for most sectors, including the textile
Slide 9: Sutlej
Sutlej Creation of a Strong Foundation over the years
Slide 10: Sutlej Textiles – Successful Yarn business, building a niche Home Textile business
Sutlej Textiles – Successful Yarn business, building a niche Home Textile business Established Value-added Yarn Player Building a strong Home Textile Brand • Largest Spun Dyed Capacity • Niche Segment Presence ✓ One of India’s largest spun dyed Yarn and leading Melange Yarn ✓ One of the few listed p
Slide 11: Key Business Verticals
Key Business Verticals Dyed Yarns SPECIALISED YARN Value Added Yarn Segment Melange Yarns SUSTAINABLE GREEN FIBRE Recycled Polyester Recycled Green fibre Staple Fibre Curtains HOME TEXTILES Upholstery Niche Segment Made Ups 10
Slide 12: Guided by Industry Veterans and Experienced Management
Guided by Industry Veterans and Experienced Management Board of Directors Mr. C.S. Nopany Mr. U.K. Khaitan Mr. Amit Dalal Mr. Rajan Dalal Ms. Sonu Bhasin Executive Chairman Independent Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Non-Execut
Slide 13: Consistently Expanding Capacities and Product Portfolio
Consistently Expanding Capacities and Product Portfolio… Backward Acquisition of Birla integration into Commenced Textile Mills Acquired Design, green fiber commercial production 31,104 spindles Sales, and Greenfield Project Modernization of of 31,104 Spindles at added at 35,280 spindles – Distribut
Slide 14: Focused on Value Added Specialty Yarn
Focused on Value Added Specialty Yarn Always Opted for Expansion into High Value Specialty Yarn
Slide 15: Among the Leading Yarn and Fabric Capacities in India
Among the Leading Yarn and Fabric Capacities in India ✓ Our manufacturing facilities are capable to handle a variety of Raw Material, having different Counts ✓ We work very closely with our Customers to fulfil requirements and on the ethos, ‘Manufacture to Sale and Not to Stock’ Kathua, J&K • 1,11,7
Slide 16: Speciality Dyed Yarns – Backbone of Our Business
Speciality Dyed Yarns – Backbone of Our Business ▪ Leading Yarn manufacturer in India ✓ 4,21,008 Dyed Yarn Spindles Continuous Increase in Spindle Capacities (MT) ▪ ~35% dedicated to Melange Yarn ▪ ~65% dedicated to various blends ▪ Well Diversified Product Portfolio/geographies and customers 4,20,2
Slide 17: Capex Update
Capex Update New Green Field Spinning project at J&K ✓ Currently the company is not present in Greige ( grey) product segment. In order to compliment the dyed/mélange product offering, the company needs to have grey product in its product basket. ✓ In view of the increasing demand for cotton /polyes
Slide 18: Sustainable Green Fibre Unit
Sustainable Green Fibre Unit Backward integration into recycle fibre to meet captive demand
Slide 19: Improving Operating Efficiency by Backward Integration
Improving Operating Efficiency by Backward Integration… Captive Utilisation RPSF – A Key Raw Material for Sutlej Bottle Flake Fibre Yarn Fabric Key Statistics: Updates ✓ 120 Tonne per day Installed capacity of green fibre at ✓ Capacity utilization has been consistently Sutlej increasing and currentl
Slide 20: Home Textile Business
Home Textile Business One of the Few Listed Curtains & Upholstery Players
Slide 21: Home Textile Business
Home Textile Business ▪ Focus on Curtains, Upholstery & Made ups ✓ One of the leading producers & exporters of Home furnishings. Increase in Loom Capacities (MMT) over past 12 yrs ✓ American Silk Mills (ASM), leading Design & Distribution Company in USA ▪ Latest Technology in design & manufacturing
Slide 22: Home Textile Business - Market Penetration
Home Textile Business Market Penetration ✓ Launched 1500 new SKUs in the wholesale domestic market and on boarded 12 new customers. ✓ During the year, added 7 new clients and placed 496 SKUs in US, while added 3 new customers and placed 280 SKUs in UK. Expect to add new customers in both these marke
Slide 23: Home Textile - Nesterra Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future From B2B to Retail Brand • In FY21, launched the first retail brand in its existence • Brand is marketed wholesale, addressing cut piece requirements of India’s retail sector • Currently accessible in 407 stores across 25 states. Capitalize Existi
Slide 24: Home Textile - Nesterra Building a Brand of Future
Home Textile - “Nesterra” Building a Brand of Future New Collections ✓ At Indian Home Furnishings Expo ( IHF) 2022, new collections from Nesterra garnered significant traction ✓ Launched 6 collections in the market namely- Bloomington, Tranquil, Alana, Eccentric, Lucid, Evelyn Market Penetration ✓ A
Slide 25: Nesterra recent campaign images
Home Textile - “Nesterra” Building a Brand of Future Some of our recent campaign images Nesterra’s outdoor Campaign - Placed four LED screens in A month long Nesterra pop-up at the Domestic gate of Mumbai Lalbaug, Mumbai during Ganesh Chaturthi festival International Airport in the month of August 2
Slide 26: Key Highlights
Key Highlights ✓ Healthy order Book position. ✓ Witnessed overall improvement in performance, taken another price increase to offset vendor price increases. ✓ Expect an increase in orders from furniture manufacturers at the end of the year coming out Furniture and Interwoven fabric market. Synergy w
Slide 27: Awards and Accolades
Awards and Accolades ✓ Received Life Time Achievement Export Ratan Award. First time given by State Government for 2019-20 in 2022. 26
Slide 28: Let's Connect
“Nothing works better than just improving your product- Joel Spolsky” Let’s Connect Mr. Rajib Mukhopadhyay Ms. Pooja Sharma / Ms. Vinita Pandya rajibm@sutlejtextiles.com pooja.sharma@stellar-ir.com/vinita@stellar-ir.com yay Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, An
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