Sarla Performance Fibers Limited · NSE:SARLAPOLY
Sarla Performance Fibers — Investor Presentation (February 2015)
37 slides from Sarla Performance Fibers's investor presentation, February 2015
Slide 1: Investor Presentation
Investor Presentation February 2015
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sarla Performance Fibers Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 3: Table Of Contents
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 3
Slide 4: Table Of Contents: Company Overview
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 4
Slide 5: Sarla at a Glance
Sarla at a Glance Manufacturer of Specialized & High Amongst the First manufacturers of covered Margin Polyester Yarn & Nylon Yarn yarn & now one of the Largest in India Only company in India to manufacture Nylon 66, a high tenacity & low shrinkage product Long standing relationships with leading Gl
Slide 6: Brief Highlights
Brief Highlights Background Presence Financials Commenced operations in 1995 India: Last 10 years CAGR: as a manufacturer of Silvassa: 2 manufacturing Revenue: 13% commodity yarns facilities; capacity 11,900 TPA EBITDA: 20% Progressed to specialized and Vapi: In-house dyeing plant hi
Slide 7: Key Milestones
Key Milestones Setup 100% US subsidiary - SarlaFlex LLC,(South Carolina) for the markets of SarlaFlex LLC USA and neighbouring countries 2013 2014 commenced operations Pilot Plant for Nylon 66 high tenacity yarn Established Marketing subsidiary 2009 in Portugal, Sarla Europe LDA Expanded Capacity by
Slide 8: Management Team
Management Team Commerce graduate with more than 50 years of experience in cotton Commerce Graduate from University trading of Mumbai with more than 25 years of experience in textile industry Has been president of Bombay Madhusudan Cotton Merchants and Muccadams Engaged in all aspects of Pro
Slide 9: Overview Of Key Subsidiaries
Overview Of Key Subsidiaries SARLA PERFORMANCE FIBERS LTD. 100% 100% Sarla Overseas Sarla Flex LLC, USA Holdings Ltd. (SOHL) 100% Marketing Operations 60% * Sarla Europe LDA for Europe & South America Markets Sarla Sarla Tekstil Filament 45%* Manufacture of Dyed Yarn Flex LLC Sanayi Ve Tic Manufactu
Slide 10: Key Products
Key Products Textured Textured Nylon Textured Sewing High Tenacity Bulklon Covered Yarn Polyester Yarn Stretch Yarns Thread Yarn POY (Partially Oriented Yarn) Chips Key Raw FDY (Fully Lycra Material Drawn Yarn) Spandex Rubber Location Silvassa South Carolina, USA Sewing Thread, Active Wear
Slide 11: Table Of Contents: India Operations
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 11
Slide 12: High-End Application products produced in India
High-End Application products produced in India Raw Materials Processes & Products Applications Polyster POY Texturising Texturised Yarn Nylon POY Twisting Twisted Yarn Threads, Hosiery, Elastics, Medical Bandages Fully Drawn Yarn Nylon Chips Extrusion Nylon 6 & Nylon 66 Parachutes, Shoes, Seat Belt
Slide 13: Manufacturing Facility - India
Manufacturing Facility - India Silvassa Vapi 12 KM distance between facilities Facility Highlights Facility Highlights • 2 facilities next to each other • In-house dyeing facility • Installed Capacity of 11,900 TPA • Installed Capacity of 3,200 TPA • Can produce 250 different • State of the art tech
Slide 14: Wind Power Business
Wind Power Business Year Of Capacity Place Commissioning (in MW) Captive Use for Dyeing Baradiya, Gujarat 2010 1.25 facility in Vapi Satara, Maharashtra 2011 2.0 Agreement for Power Efficient Wind Procurement with Power Operations Sangli, Maharashtra 2012 4.0 private entities Total Installed Capacit
Slide 15: Table Of Contents: Overseas Operations
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 15
Slide 16: Overseas Subsidiaries
Overseas Subsidiaries Sarla Overseas Holdings Ltd. (SOHL) SarlaFlex LLC 60% 45% 100% Sarla Europe LDA, Sarla Tekstil, Turkey Subsidiary of Sarla Portugal Performance Fibers Ltd. (SPFL) Entered in joint venture in Entered in joint venture in In 2013, SPFL entered US 2009 2010 markets through
Slide 17: Manufacturing Facility - USA
Manufacturing Facility - USA Charleston, South Carolina NAFTA & CAFTA treaties, allows waiver of duties upto 32% on synthetic Benefits garments manufactured in North or Central American region using US origin yarn when exported back into USA: Strategic Location the United States ~99% of the deci
Slide 18: Focus of US Manufacturing
Focus of US Manufacturing Raw Materials Processes & Products Applications Polyster chips Texturised Texturising & Twisted Yarn Threads, Hosiery , Narrow Twisting Solution Dyed Fabrics/ Elastics, Yarn Mattress Ticking Apparel & Industrial Application 18
Slide 19: Global Presence
Qaasna a PERFORMANCE FIBERS: Global Presence Exports to over 40 countries across 6 continents a Subsidiary operations in USA & Portugal e Joint Venture manufacturing operations in Honduras (Central America) and Turkey ® Distribution centres in Thailand & Vietnam — °
Slide 20: Table Of Contents: Growth Plans
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 20
Slide 21: New Products – Nylon 66
New Products – Nylon 66 End User Industries Commenced trials production of Nylon 66 yarn at Silvassa in 2013 on pilot basis Nylon 66 is high tenacity and lower shrinkage yarn product Air Bags Being a niche product on its own, extremely Filter Fabric specialized hence margins are substantially
Slide 22: US Facility – Expansion Plan
US Facility – Expansion Plan Further Expansion Of South Carolina Facility 9,900 TPA ~18,000 TPA Expansion POY Current capacity Capacity by 2017 New Product addition – Flat Yarn Cost of Project (USD Million) ~25 ~11 • The total cost of the project is USD~ 25 mn ~14 • Cost of Phase I already incurred
Slide 23: Entry Barriers
Entry Barriers Over 150 varieties of moulds Moulds form an integral part of the final product These are designed as per clients specifications to fit the varied machinery used by them in their plants in different geographies Clients Stickiness towards Quality & Goodwill Global brands deman
Slide 24: Key Strengths
Key Strengths One of the Largest Manufacturers of Covered Yarn in India Focused on High Margin value added products: Specialised Polyester and Nylon Yarns Amongst a few players globally catering to Specialised Yarns – Used in a variety of niche applications Manufacturing & Distribution hub in cl
Slide 25: Table Of Contents: Financials
Table Of Contents Company Overview India Operations Overseas Operations Growth Plans Financials 25
Slide 26: Q3 FY2015 Highlights
Q3 FY2015 Highlights Revenue of Rs. 727 mn, YoY growth of 13% Revenue excluding US Operations were at Rs. 647mn Gross Profit of Rs. 415 mn, margin 57% EBITDA of Rs. 136 mn, margin of 19%, impacted due to: Ramp up in US Operations: EBITDA in US Operations at Rs. -28 mn Higher Manpower a
Slide 27: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue EBITDA Cash PAT +26.3% +13.0% +3.9% 2,415 384 434 329 342 1,912 9MFY2014 9MFY2015 9MFY2014 9MFY2015 9MFY2014 9MFY2015 Revenue EBITDA Cash PAT +13.1% -10.5% -8.9% 643 727 152 136 107 98 Q3FY2014 Q3FY2015 Q3FY2014 Q3FY2015 Q3FY2014 Q3FY2015 Rs. in Million 27
Slide 28: Performance Excluding US Operations
Performance Excluding US Operations Revenue EBITDA Cash PAT +10.9% +29.6% +27.1% 1,912 2,120 498 418 384 329 9MFY2014 9MFY2015 9MFY2014 9MFY2015 9MFY2014 9MFY2015 Revenue EBITDA Cash PAT +0.7% +8.0% +20.6% 643 647 152 164 129 107 Q3FY2014 Q3FY2015 Q3FY2014 Q3FY2015 Q3FY2014 Q3FY2015 Rs. in Million 2
Slide 29: Profitability Statement
Profitability Statement Rs. In Millions Q3 FY15 Q3 FY14 YoY 9m FY15 9m FY14 YoY Revenues 727 643 13% 2,415 1,912 26% Raw Material 311 349 1181 1020 Manpower Cost 69 19 200 47 Other Operating Expenses 211 123 601 460 EBITDA 136 152 -11% 434 384 13% EBITDA Margin 18.7% 23.6% 18.0% 20.1% Other Income 1
Slide 30: Financials – Growth Story
Financials – Growth Story Revenues EBITDA +14% +13% 2,587 2,629 468 478 2,227 1,930 360 332 1,553 296 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Profit After Tax Networth +17% +17% 321 1,692 280 1,425 225 1,244 189 1,082 169 892 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Rs. in Million
Slide 31: Financial Breakups
Financial Breakups Segmental Breakup Geographical Breakup America Commodities HSIN* 2014 18% 25% Asia Pacific 34% 37% Total Revenue Rs. 2,618 million 10% Industrial Yarns 38% 6% 32% Middle East & Europe Africa Threads Commodities 15% Asia Pacific 2013 America HSIN* 28% 38% 34% Industrial Yarns 17% T
Slide 32: Working Capital Profile
Working Capital Profile Inventory Days (Sales)* Creditor Days (Sales) 50 104 90 30 2013 2014 2013 2014 Debtor Days (Sales)** Net Working Capital Days 76 128 130 69 2013 2014 2013 2014 ~95% of the Debtors are backed by Letter of Credit / Documents through banks * Excludes Inventory held for Trading S
Slide 33: Consolidated Debt & Finance Cost
Consolidated Debt & Finance Cost As at March 2014 Debt Structure* Finance Cost Structure 48 44 368 837 25 548 20 1,291 986 24 225 Long Term Short Cash & Non Current Debt Net Debt Interest Interest Net Bank Total Debt term Debt Bank Investments Waived Obligation Expense Income Interest Charges Financ
Slide 34: US Operations - Debt Structure
US Operations - Debt Structure As at March 2014 708 225 548 548 483 483 225 225 Loan B Loan A Non Current Total Long Total Short Total Net Debt Waived Total Debt Investments Term Debt Term Debt Debt 2014 off after 7 Years Obligation New Market Tax Credit Structure - The program provides 39% Tax Cr
Slide 35: Consolidated Profit & Loss account
Consolidated Profit & Loss account Rs. In Million 9MFY2015 FY2014 FY2013 FY2012 Revenues 2,415 2,629 2,587 2,227 Raw Material 1181 1,379 1,376 1,211 Manpower Cost 200 122 53 44 Other Operating Expenses 601 650 690 635 EBITDA 434 478 468 332 EBITDA Margin 18.0% 18.2% 18.1% 14.9% Other Income 42 122 8
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. in Million Sept-14 Mar-14 Mar-13 Mar-12 Shareholders Fund 1,801 1,692 1,425 1,244 Share capital 70 70 70 70 Reserves & Surplus 1,732 1,622 1,355 1,175 Non-current liabilities 1,382 1,475 548 189 Long term borrowings 1,202 1,291 371 77 Other non-current liabilities 180
Slide 37: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Sarla Performance Fibers Limited Strategic Growth Advisors Pvt. Ltd. CIN: L31909DN1993PLC0000562596 CIN: U74140MH2010PTC204285 Mr. Mahendra Sheth, CFO Mr. Sudeep Chatterjee / Ms. Ruchi Rudra msheth@sarlafibers.com csude
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