S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q3 FY21 Earnings Presentation
31 slides from S.p. Apparels's earnings presentation, Feb 15, 2021
Slide 1: Cover letter to stock exchanges: Financial Presentation
S.PRAPPARELS LTD. Regd. Office : 39-A, Extension Street, Kaikattipudur, AVINASHI - 641 654, Tamil Nadu, India. Phone : +91-4296-714000 E-mail : spindiadis-p-apparels.com Web : www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295 15 February, 2021 The Listing Department The Listing Department BSE Limi
Slide 2: S.P. Apparels Limited Investor Presentation Q3 & 9M FY21 Results Update
S.P.APPARELS LIMITED INVESTOR PRESENTATION Q3 & 9M FY21 Results Update February 2021
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: Q3 & 9M FY21 Results Update
Q3 & 9M FY21 RESULTS UPDATE Company Overview Financial Overview & Shareholding Structure
Slide 5: Q3 FY21 - Key Highlights
Q3 FY21 - KEY HIGHLIGHTS 21% YoY growth 17% YoY growth 59% YoY growth in garment 13.2 Mn pieces export volume in total revenue1 in SPUK revenue division revenue ~280 bps 13.5 Mn pieces volume produced 38% growth in expansion in adj. 9.3% PAT Margin, adj. EBITDA YoY2 EBITDA margin +821 bps YoY YoY ~6
Slide 6: Q3 FY21 Result – Key Highlights
Q3 FY21 RESULT – KEY HIGHLIGHTS Q3 FY21 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 18.3% 15.5% 12.5% 2,123.7 1,811.8 9.3% 266.2 389.0 1.0% 3.0% 281.1 196.6 17.2% 38.4% 397.7% 938% 53.5 18.9 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3
Slide 7: 9M FY21 Result – Key Highlights
9M FY21 RESULT – KEY HIGHLIGHTS 9M FY21 YoY ANALYSIS In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT* & PBT MARGIN 3 PAT & PAT MARGIN 3 17.3% 9.6% 6,614.7 13.9% 6.7% 5.9% 4,594.9 7.1% 921.0 439.6 792.9 441.1 392.5 326.2 30.5% 13.9% 12.0% 26.1% 9M FY20 9M FY21 9M FY20 9M FY21 9M FY20 9M FY21 9M
Slide 8: Q3 FY21 Result – Division Wise Analysis
Q3 FY21 RESULT – DIVISION WISE ANALYSIS In Rs Mn Q3 FY21 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q3 FY20 Q3 FY21 Garment Exports 80.4% 82.9% 2,123.7 1,811.8 149.1 SPUK 7.4% 10.1% 213.5 220.2 Retail 12.2% 7.0% 134.45 32.3% 58.8% 1,761.1 Adj. EBITDA MARGIN % 2 Q3 FY20 Q3 FY21 1,
Slide 9: 9M FY21 Result – Division Wise Analysis
9M FY21 RESULT – DIVISION WISE ANALYSIS In Rs Mn 9M FY21 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE 9M FY20 9M FY21 6,614.7 Garment Exports 84.3% 81.3% 649.1 SPUK 5.9% 11.9% 389 4,594.9 9.8% 6.8% Retail 51.9 % 312.5 548.6 5,576.6 41.0% Adj. EBITDA MARGIN % 2 9M FY20 9M FY21 3,733
Slide 10: Q3 FY21 Result – Key Analysis
Q3 FY21 RESULT – KEY ANALYSIS FINANCIAL UPDATE: • Q3 FY21 total revenues1 increased by 17.2% YoY to Rs 2,123.7 mn. • Revenues grew by 20.9% on a YoY basis in Garment Exports division due to pick-up in the demand post Covid-19 related lockdowns in UK and EU. • Revenue grew at a robust pace of 58.8% o
Slide 11: Q3 & 9M FY21 Result – Consolidated Profit & Loss Statement
Q3 & 9M FY21 RESULT – CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY21 Q3 FY20 YoY% 9M FY21 9M FY20 YoY% Revenue from Operations 2,095.4 1,769.0 18.5% 4,606.9 6,406.0 -28.1% Gain on account of Foreign Currency Fluctuations 28.3 42.9 -33.9% -12.0 208.7 - Total Revenues 2,123.7 1,81
Slide 12: Consolidated Balance Sheet
Q2 & H1 FY21 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Sep-20 Mar-20 Particulars (Rs Million) Sep-20 Mar-20 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 256.9 a. Property, Plant and Equipment 3,944.5 3,964.8 Other Equity 5,155.7 4,975.3 b. Capi
Slide 13: Company Overview
Q3 & 9M FY21 Results Update COMPANY OVERVIEW Financial Overview & Shareholding Structure
Slide 14: 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 ▪ Strong promoter p
Slide 15: 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 16: 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 17: 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 18: 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 19: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 18
Slide 20: Strategically Located & Integrated Manufacturing Facilities
STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 19
Slide 21: 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 22: 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 23: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 22
Slide 24: 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 25: 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 Non-Executive Director • Five years of experience in the • Founder director of SPAL with 34 Founder director of SPAL with 27 years textile
Slide 26: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mrs H .Lakshmi Priya Independent Director Independent Director • 46 years of experience in banking • 20+ years of experience in corporate advisory, contract documentation, private • Masters of Science from the University of equity &
Slide 27: Financial Overview & Shareholding Structure
Q3 & 9M FY21 Results Update Company Overview FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 28: Financial Overview
FINANCIAL OVERVIEW In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN 9.1% 18.4% 7.2% 8,264 8,090 15.3% 5.6% 13.3% 6,624 1,238 1,238 734 1,104 478 469 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 * Excludes exceptional item of write-off of amount considered recoverable from a b
Slide 29: Division-wise EBITDA Performance
DIVISION-WISE EBITDA PERFORMANCE In Rs Million GARMENT DIVISION 20.9% 21.0% 17.6% 15.0% 6805.0 7026.4 5955.1 5733.7 1244.4 1202.4 1194.4 1051.0 FY17 FY18 FY19 FY20 Garment Revenue Garment EBITDA EBITDA Margin (%) RETAIL DIVISION SPUK 5.6% 3.6% 4.4% 3.5% 3.7% 2.1% 0.2% 481.8 506.6 817.8 776.3 646.2 3
Slide 30: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 31st December 2020 KEY SHAREHOLDERS – 31st December 2020 DSP Mutual Fund 6.16% Non-Institutions 23.4% UTI Mutual Fund 5.18% Promoters 61.7% ICICI Prudential Mutual Fund 3.39% Institutions 14.9% Source: BSE 29
Slide 31: 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