S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q3 FY23 Earnings Presentation
29 slides from S.p. Apparels's earnings presentation, Feb 10, 2023
Slide 1: Financial Presentation cover letter to exchanges
S.PAPPARELS LTD. Regd. Office : 39-A, Extension Street, Kaikattipudur, AVINASHI 61 654, Tamil Nadu, India. - ©) UKAS Phone : +91-4296-714000 E-mail : spindia@s-p-apparels.com Web : www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295 10" February, 2023 The Listing Department The Listing Department BS
Slide 2: Investor Presentation: 9M & Q3 FY23 Results Update
Investor Presentation 9M & Q3 FY23 Results Update February 2023
Slide 3: Contents
Contents 9M & Q3 FY23 Results Update Company Overview Financial Overview & Shareholding Structure
Slide 4: Disclaimer
Disclaimer 3 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
Slide 5: 9M & Q3 FY23 Results Update
HB ' S.P.APPARELS LTD. 9M & Q3 FY23 Results Update
Slide 6: 9M FY23 - Key Highlights
9M FY23 - Key Highlights 5 35.5% YoY 27% YoY Growth in Total Revenue1 Growth in Gross Profit PAT stands at 4.3% YoY 30% YoY 74% Growth in Profit after Tax Growth in Adj. EBITDA Rs.620 mn Capacity Utilisation Stable operations in SP UK with revival in Retail – 44.56 mn 212% Rs.24.20 up by 72% YoY Pie
Slide 7: Q3 FY23 Result - Key Highlights
Q3 FY23 Result - Key Highlights 6 In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 2544.10 2584.50 246.4 1.6% 374.5 382.5 302.3 2.1% 132.8 -35.7% 194.3 -46.1% Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 14.7% 14.8% 12.0% 8.0% 9.7% 5.1% EBIT
Slide 8: 9M FY23 Result - Key Highlights
9M FY23 Result - Key Highlights 7 In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 1345.7 853.5 782.0 8,255.1 1035.4 620.0 594.4 6,090.8 35.5% 30% 4.3% 9.1% 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 17.0% 16.3% 13.0% 10.9% 9.8% 7.5% EBITD
Slide 9: Q3 FY23 – Division Wise Analysis
Q3 FY23 – Division Wise Analysis 8 In Rs Mn Q3 FY23 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q3 FY22 Q3 FY23 Garment Exports 87.8% 87.3% 2503.2 2513.6 129.3 SPUK 7.0% 4.4% 208.7 176.0 111.5 61% Retail 5.2% 8.3% 37% 2197.9 2193.5 Adj. EBITDA MARGIN % 2 Q3 FY22 Q3 FY23 -0.20% Gar
Slide 10: 9M FY23 – Division Wise Analysis
9M FY23 – Division Wise Analysis 9 In Rs Mn 9M FY23 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE 9M FY22 9M FY23 Garment Exports 85.8% 87.8% 8029.3 433.02 SPUK 8.9% 5.4% 549.18 6,055.3 -20% Retail 5.3% 6.8% 541.11 319.59 72% 7047.09 Adj. EBITDA MARGIN % 2 9M FY22 9M FY23 5194.62 36
Slide 11: 9M FY23 - Key Analysis
9M FY23 - Key Analysis 10 9M FY23 total revenues1 increased by 35.5% YoY to Rs 8,255 mn Volumes (mn pcs) & v Revenues grew by 62% on a YoY basis in the Retail division due to Net Sales Realisation in INR (NSR) traction in demand from existing customers 138.1 v Realisation per piece improved to 138.1
Slide 12: 9M & Q3 FY23 Results - Consolidated Profit & Loss Statement
9M & Q3 FY23 Results - Consolidated Profit & Loss Statement 11 Particulars (In Rs Mn) Q3 FY23 Q3 FY22 YoY% 9M FY23 9M FY22 YoY% Revenue from Operations 2511.5 2503.1 0.3% 8027.2 6055.3 32.6% Gain on account of Foreign Currency Fluctuations 73.0 41.0 78.0% 227.9 35.5 542.0% Total Revenues 2584.5 2544
Slide 13: Company Overview
\ Company Overview ' S.P.APPARELS LTD.
Slide 14: Brief Profile
Brief Profile 13 BUSINESS OVERVIEW KEY STRENGTHS FINANCIAL OVERVIEW * v SPAL is one of the leading manufacturers v SPAL is a specialized player in the highly v Reported Consolidated Revenues, EBITDA and exporters of knitted garments for challenging infant & children wear knitted and PAT were Rs 8,67
Slide 15: Our Evolution
Our Evolution 14 2016 § Listed on BSE / NSE § Repayment of Loans to reduce leverage 2004 2008-13 Set-up of flagship factory at Avinashi Streamlining of operations to integrate 2017-22 2005 the factories, increase efficiencies and § Integration / expansion of Commissioned dying plant at increase back
Slide 16: Leading Exporter of Infant & Children Wear in India
Leading Exporter of Infant & 15 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 v Labour intensive operations. v Demonstrated manufacturing excellence for v Employee tr
Slide 17: WHY SPAL?
Preferred Vendor To Reputed International Brands 16 Strong Pedigree Leading children wear manufacturer under the leadership of Mr. Sundararajan, CMD with more than 36 SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR years of experience in apparel industry INFANTS AND CHILDREN TO REPUTED INTERNA
Slide 18: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 17 SPINNING KNITTING DYEING
Slide 19: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 18 AUTOMATED CUTTING PRINTING EMBROIDERY
Slide 20: Strategically Located & Integrated Manufacturing Facilities
Strategically Located & Integrated Manufacturing Facilities 19 SEMI-AUTOMATED AUTOMATED SEWING INVENTORY SEWING ASSEMBLY LINE MANAGEMENT
Slide 21: Strong In-house Design Expertise
Strong In-house Design Expertise 20 STRONG DESIGN IS SPAL’S CORE COMPETENCY v SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. v Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and
Slide 22: Stringent Quality Controls & Compliance
Stringent Quality Controls & Compliance 21 ACCREDITATIONS AND AWARDS FOR OUR MANUFACTURING FACILITY/ABILITY Received laboratory accreditation ISO/IEC 17025:2005 by the National Accreditation Board for Testing and Calibration Authorities, Department v Strong adherence to the highest standards of qual
Slide 23: Qualified Management with Deep Understanding of Apparel Sector
Qualified Management with Deep Understanding of Apparel Sector 22 ` Mr P. Sundararajan Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Joint Managing Director • Six years of experience in the textile and • Founder director of SPAL with 36 years of Founder director of SP
Slide 24: Board Of Directors - Wide Spectrum of Experience
Board Of Directors - Wide Spectrum of Experience 23 Mr A.S. Anandkumar Mrs H .Lakshmi Priya Mr C. R. Rajagopal Mr V. Sakthivel Independent Director Independent Director Independent Director Independent Director • 47 years of experience in banking • 20+ years of experience in corporate • Core areas o
Slide 25: Financial Overview & Shareholding Structure
Financial Overview & Shareholding Structure
Slide 26: Financial Overview
Financial Overview 25 REVENUES Adj. EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN 9.1% 9.8% 8,672 18.4% 17.6% 7.2% 6.6% 8,264 8,090 15.3% 16.4% 5.6% 6,624 6,523 10.8% 1,528 847 1,238 1,238 734 1,072 895 478 469 432 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 LEVERA
Slide 27: Division-wise EBIDA Performance
Division-wise EBIDA Performance 26 GARMENT DIVISION 21.0% 20.2% 20.9% 12,000 17.6% 12.0% 10,000 6,805 7,429 8,000 7,026 5,734 5,369 6,000 4,000 1,202 1,194 1,083 1,553 2,000 843 - FY18 FY19 FY20 FY21 FY22 Garment Revenue Garment EBITDA Adj. EBITDA Margin (%) RETAIL DIVISION SPUK 4.4% 5.6% 5.3% 3.6%
Slide 28: Shareholding Structure
Shareholding Structure 27 SHAREHOLDING PATTERN – 31st December 2022 KEY SHAREHOLDERS – 31st December 2022 Non-Institutions 19.2% DSP Small Cap Fund 8.37% Promoters ICICI Prudential Mutual Fund 3.86% 61.9% UTI Mutual Fund 3.71% Franklin India Smaller Companies Fund 1.09% Institutions 18.8% Source: BS
Slide 29: For Further Queries
Q3 FY22 Results Update For Further Queries: Mr. V. Balaji Company Overview Chief Financial Officer Email: balaji.v@spapparels.com Financial Overview & Shareholding Structure www.s-p-apparels.com Mr. Manoj Saha, Mr. Chintan Mehta, Kinneri Saha IR Consultant Email: s.p.apparels@dickensonworld.com Cont