Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2020 Earnings Presentation
35 slides from Sutlej Textiles & Industries's earnings presentation, Jun 16, 2020
Slide 1: Cover letter: Q4 and FY 2020 Results Presentation
SUTLEJ TEXTILES AND sulla textiles and industries limited INDUSTRIES LIMITED ‘E’ Wing, 5th/6th Floor, Lotus Corporate Park, 'E' 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
Slide 2: Result Presentation Q4 & FY20
suttee textiles and industries limited Sutlej Textiles and Industries Limited The Bond of Trust… Result Presentation | Q4 & FY20 June 2020 Q4FY20 Result Presentation | June 2020
Slide 3: Safe Harbor
Safe Harbor sutiei textiles and induStriea limited 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
Slide 4: Q4 FY20 Results Highlights
Q4 FY20 Results Highlights Improving efficiencies… 3
Slide 5: Covid-19 Impact
Covid-19 Impact •Manufacturing Operations ✓ Manufacturing operations were shutdown from 4th week of March to 3rd week of April 2020. ✓ Plants operating inline with the Government norms and all precautionary measures ✓ Currently all 4 plants are operational, at around 50% utilization. ✓ The company i
Slide 6: Covid-19 Impact
Covid-19 Impact •Financial Performance ✓ Profitability of Q4FY20 affected on account of fall in production, sales, MTM forex losses and one time provision amid lockdown •Liquidity position ✓ Comfortable liquidity position to meet its commitments with adequate banking limits being in place ✓ Implemen
Slide 7: Covid-19: Measures
Covid-19: Measures set4;igl rfno)cleneto7premises for maintaining,ro wo4rrt3ee akractoo Visit website for further information: http://sutlejtextiles.com/ 6
Slide 8: Results Highlights (Consolidated) – Q4 & FY20
Results Highlights (Consolidated) – Q4 & FY20 SUttei Total Income (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) 2642 2442 240 58 198 28 628 545 54 10 23 • ■ Q4FY19 Q4FY20 FY19 FY20 Q4FY19 Q4FY20 FY19 FY20 Q4FY19 Q4FY20 FY19 FY20 -14 Q4 & FY20 Performance ✓ Q4FY20 performance impacted due to nation
Slide 9: Profitability Highlights
Profitability Highlights Particulars Consolidated (Rs crore) Q4 Q4 YoY Q3 QoQ YoY FY20 FY19 FY20 FY19 Chg % FY20 Chg % Chg % Total Income 545 628 -13% 586 -7% 2442 2642 -8% RM cost 296 363 -18% 306 -3% 1363 1541 -12% Gross Profit 249 265 -6% 280 -11% 1079 1101 -2% Gross Profit Margin (%) 45.61% 42.2
Slide 10: Strengthen Balance Sheet
Strengthen Balance Sheet SUttei Finance Cost (Rs. Cr) Total Debt (Rs. Cr) Debt to Equity (x) 57 920 871 0.98 46 ■ 381 291 580 0.91 539 FY19 FY20 FY19 FY20 • Long Term • Short Term FY19 FY20 ✓ Total Debt has witnessed a reduction of Rs 49 Crs (net) over the last 1 year, led by efficient working capit
Slide 11: Key Performance Highlights – Q4FY20 & FY20
Key Performance Highlights – Q4FY20 & FY20 SUtLeJ Yarn Sales (in MT) Avg. Yarn Realization (Rs/kg) Domestic & Export Revenues (Rs Crs) 1,08,136 1,05,082 222 221 436 747 26,210 25,498 212 23,877 209 205 203 169 1684 193 1632 405 404 336 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4FY19 Q3FY20 Q4FY20 FY19 FY20 Q4
Slide 12: Executive Chairman’s comments
Executive Chairman’s comments SUtt@J Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said: “The sudden outbreak of COVID 19 Pandemic and the resultant global lockdown has had a significant impact on the textile sector. Being a r discretionary sp
Slide 13: Sutlej: Creation of a Strong Foundation over the years
SUttei Sutlej Creation of a Strong Foundation over the years 12
Slide 14: Sutlej Textiles - Overview
Sutlej Textiles - Overview sutiei LexiiI6s Arid incluStn. fimded Largest Spun Dyed Capacity Patronage of Renowned K.K.Birla group India’s largest spun dyed Yarn Manufacturer Part of a reputed group with excellent corporate governance and One of the leading manufacturer of Melange Yarn Experienced Ma
Slide 15: Key Milestones
Key Milestones Commenced commercial production of 31,104 Acquisition of Birla Spindles at Chenab Textile Textile Mills Acquired Design, Sales, Mills, J&K to manufacture and Distribution (DS&D) Backward Cotton Mélange and 35,280 spindles – business along with integration Cotton Blended Dyed Yarn comm
Slide 16: Business Verticals
rams Business Verticals P.T.01 ',C.!, lb ^P.' PY,91!1,1 Dyed Yarns Value Added Yarns Melange Yarns raiins paiguE se.P1-snPu! pue seppgal Curtains Home Textiles Upholstery Made Ups 15
Slide 17: Sutlej – Charged to grow higher
Sutlej – Charged to grow higher Improving Operating Focussed on Value Efficiencies Added Dyed yarns One of the best Capacity Leading spun dyed & Melange Utilization in Industry Yarn Manufacturer in India Better RM & Power cost through Green Fibre and Solar Energy Growth Drivers Niche Home Textile Ho
Slide 18: Experienced Team
Experienced Team sutiei textiles and induStriea limited 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 Exec Director Non Exec Director Non Exec Director Non Exec Director Mr. Ra
Slide 19: Focused on Value Added Specialty Yarns
Focused on Value Added Specialty Yarns Always opted for expansion into high value specialty yarns 18
Slide 20: Yarn Capacities
Yarn Capacities SUttei • Ability to handle variety of RM with different counts • Work very closely with customer to fulfil requirements • Manufacture to Sale and not to Bhawanimandi, Rajasthan Stock • 35,280 Spindles (Cotton Mélange ) • 90,384 Spindles (Man –made Fibre) • Roof top solar plant of 2.7
Slide 21: Speciality Dyed Yarns – Backbone of our business
Speciality Dyed Yarns – Backbone of our business sutiei textiles and industries limited ▪ Leading Yarn manufacturer in India Continuous Increase in Spindle Capacities ✓ 4,19,640 Dyed Yarn Spindles ▪ ~35% dedicated to Melange Yarn ▪ ~65% dedicated to various blends 306 ▪ Well Diversified Product Port
Slide 22: Niche Home Textile Presence
Niche Home Textile Presence One of the few listed Curtains & Upholstery players 21
Slide 23: Home Textile Business
Home Textile Business sutiei textiles and induStriea limited ▪ Focus on Curtains, Upholstery & Made ups ✓ One of the leading producer & exporter of Home Decor Increase in Loom Capacities over past 12 yrs ✓ Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA ▪ Latest Techno
Slide 24: Strengthening Capabilities in Home Textiles
Strengthening Capabilities in Home Textiles sutiei textiles and induStriea limited Manufacturing Capabilities • Home textile manufacturing plant at Damanganga is operational after the lockdown • Current focus is on ensuring current orders are produced and shipped without any cancellations and timely
Slide 25: Home Textiles Business- Way Forward
Home Textiles Business- Way Forward sutiei LexiiI6s Arid incluStn. fimded AcquiredInitiatives Design, Sales, andandWay forward Distribution forbusiness (DS&D) Home along Textiles with Business brand of American Silk Mills LLC (ASM) ▪ Digitalization of Product library ✓ In process of digitalizing of
Slide 26: Building Organization
TIMELESS DESIGN SINCE 1896 www.americansilk.com Building Organization 25
Slide 27: American Silk Mills (ASM)
American Silk Mills (ASM) 110 AMERICAN sutiei textiles ard in....9 GM., SILK MILLS® T896 WEAVE. f 0¢31.1 SINCE Covid-19Sales, Acquired▪Design, Resilience andplan Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM) ✓ Keep people safe and operate our Warehouse at reduced lev
Slide 28: Improving Operating Efficiencies
4 X11111~,, l~llihllll~ 4 I Improving Operating Efficiencies Our disciplined approach towards growth have always helped us to achieve new heights 27
Slide 29: Backward Integration into Green Fiber
Backward Integration into Green Fiber seY;LP Captive PSF – A Key Raw Material Utilisation for Sutlej • glip Bottle Flake Fibre 11I Yarn Fabric Description Details Capacity to produce Raw white and black recycled fibre 120 MT / Day Location (adjacent to our existing yarn manufacturing unit) Baddi, Hi
Slide 30: Sutlej 2.0 – Growth Strategy
IA01 VI - '4 f ill a I4 y gi 04, 1 trio a---"ram 111-11-111 14140 ,14e let ,1 ht 14, Sutlej 2.0 – Growth Strategy Charged to grow higher backed by a strong Foundation 29
Slide 31: Well Placed for next Growth Phase
Well Placed for next Growth Phase suttee ..04 and intluM9.5... • Effective control on key • Improving performance • Opportunities into •Deleverage overall Debt Raw material cost of ASM & integration Forward Integration to strengthen financing with Sutlej position • Opportunities in new • Product Por
Slide 32: Annexure - Financials
Annexure - Financials 31
Slide 33: 5 year Performance Highlights
5 year Performance Highlights suttee Revenue EBITDA PAT 1 FY16 2,108 FY16 302 FY16 143 FY17 2,285 FY17 317 FY17 158 FY18 2,510 FY18 281 FY18 113 FY19 2,642 FY19 240 FY19 58 FY20 2,442 FY20 198 FY20 28 J • The Company acquired American Silk Mills, LLC on 6th Nov 17 and hence FY 2017-18 is first year
Slide 34: Balance sheet Ratios
Balance sheet Ratios suttee leaIeR dmduanesrmaed Comfortable Total Robust Interest Average Interest Rate of Debt/Equity Ratio Coverage Term Loans (After TUF) FY16 1.2 FY16 4.9 7.3% FY17 1.3 FY17 5.2 6.8% 6.7% FY18 1.15 FY18 4.8 6.2% 6.2% FY19 FY19 4.2 0.98 FY20 4.3 FY20 0.91 FY16 FY17 FY18 FY19 FY20
Slide 35: THANK YOU! Let’s Connect
“WITHSTANDING FIRMLY DURING A STORM HELP’S TO CHERISH THE SUNSHINE LATER” THANK YOU! Let’s Connect sutta tr STELLAR INVWQR gvnos Mr. Bipeen Valame Mr. Abhishek Bhatt bipeenvalame@sutlejtextiles.com abhishek@stellar-ir.com Lotus Corporate Park, Goregaon (East), Mumbai 400063 Kanakia Wall Street, Andh
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