Sportking India Ltd. · NSE:SPORTKING
Sportking India — Q2 FY2023 Earnings Presentation
33 slides from Sportking India's earnings presentation, November 2022
Slide 1: Sportking India Ltd. cover letter to stock exchanges
Sp~)'tkJqCJINDIA LTD. (Govt. Recognised Three Star Export House) Regd. & Corporate Office : Vill. Kanech, Near Sahnewal, G.T. Road, Ludhiana-141120 Ph. (0161) 2845456 to 60 Fax: 2845458 Admn. Office : 178, Col. Gurdial Singh Road, Civil Lines, Ludhiana-141001 Ph. (0161) 2770954 to 55 Fax: 2770953 E-
Slide 2: Investor Presentation - November 2022
Investor Presentation - November 2022
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sportking India Ltd (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 4: Management Commentary
MANAGEMENT COMMENTARY Mr. Munish Avasthi Managing Director “This quarter was challenging due to higher input costs, inflationary pressures and low demand for clothing and apparel. Textile mills were operating at less than 50 % capacity because of high cotton prices and low demand. Despite these pres
Slide 5: Financial Performance
Sportkiqg Financial Performance
Slide 6: Delivered Strong Growth with Sustained Margins
DELIVERED STRONG GROWTH WITH SUSTAINED MARGINS Growth in Export Businesses Revenue +18.9% Rs. 1,158 crores 548 589 +7% Operating EBITDA H1FY22 H1FY23 Rs. 183 crores Margin at 15.8% H1FY23 Revenue Contribution 52% Operating PBT Contribution from Rs. 119 crores Export Business Margin at 10.3% Exports
Slide 7: Q2FY23 Performance (YoY/QoQ)
Q2FY23 PERFORMANCE (YOY/QOQ) Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) PBT (Rs. in Crs) 606 155 147 524 552 552 134 116 48 48 36 36 Q2FY22 Q2FY23 Q1FY23 Q2FY23 Q2FY22 Q2FY23 Q1FY23 Q2FY23 Q2FY22 Q2FY23 Q1FY23 Q2FY23 PAT (Rs. in Crs) EBITDA % PAT % 110 30.0 21.0 83 22.1 13.7 9.0 9.0 0
Slide 8: H1FY23 Performance (YoY/QoQ)
H1FY23 PERFORMANCE (YOY/QOQ) Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) PBT (Rs. in Crs) 1,158 280 253 974 183 153 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 PAT (Rs. in Crs) EBITDA % PAT % 189 29 19 16 83 7 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 7
Slide 9: Q2 & H1 FY23 Profit & Loss
Q2 & H1 FY23 PROFIT & LOSS Profit & Loss statement (Rs. in Crs) Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q H1 FY23 H1 FY22 Y-o-Y Revenue from Operation 552 524 5.3% 606 -9.0% 1158 974 18.9% Raw Material Cost 411 276 390 801 532 Purchase of Finished goods 1 0 0 0 0 (Increase) / Decrease In Stocks 3 -7 -18 -15
Slide 10: Business Overview
Sportking Business Overview
Slide 11: Overview
OVERVIEW Established in 1989 Presence in 30+ countries Owns 3 State of the art Committed to create High manufacturing facilities Quality end products Compliance with Diversified Product International Quality Range recognition standards Manufacturing facilities with Focus on High Modern Technology Ma
Slide 12: Journey So Far
JOURNEY SO FAR Successful expansion at Bathinda Unit adding 68K+ spindles with for Setting up of a Dye manufacturing of cotton compact House for dyeing/ yarn. processing of textile installed 6K+ yarn fibers Spindles for manufacturing of Acrylic Yarn at Ludhiana in 1993 2018-19 Spinning Capacity incr
Slide 13: Presence Across the Globe
PRESENCE ACROSS THE GLOBE Geography Wise Revenue Break-up Canada Germany H1 FY23 Belgium USA Italy 49.2% Portugal South Korea Spain China Morocco Tunisia 50.8% Rs. 1,158 Mexico Egypt Hong Kong crores Macao Bangladesh Vietnam Panama Columbia Ethiopia Thailand Malaysia Sri Lanka Domestic International
Slide 14: Manufacturing Facilities & Capacities
MANUFACTURING FACILITIES & CAPACITIES Units Manufacturing Installed Capacities Acrylic/Blended Acrylic Polyester Yarn/ Unit I - Spinning Unit 65,904 Spindles Blended Polyester Cotton yarn Support to Unit No. I & III for their synthetic Unit II - Dye House 15-20 MTPD fibre/ yarn dyeing processing com
Slide 15: Technological Edge
TECHNOLOGICAL EDGE Technologically advanced machineries to support our manufacturing infrastructure Robust control practices in place to ensure consistent quality of our products Use of modern testing instruments such as: ₋ HVI ₋ AFIS ₋ Uster Classimat ₋ Uster Tensest ₋ Uster Hairiness tester
Slide 16: Strategic Advantages
STRATEGIC ADVANTAGES Rail & Roads : Helps in better connectivity Inland Container Depot(ICD): ICD at with other parts of India. Bathinda/Ludhiana for import/export clearances & regular road transport/train service availability between company’s unit/ICD and different seaports. Add Text Here Add Text
Slide 17: Product Range
PRODUCT RANGE 100% Cotton Yarns 100% cotton combed compact yarns in normal and sublime quality for knitting and weaving 100% cotton combed compact slub 100% cotton combed Eli twist Polyester/Cotton Blended Yarns Polyester/cotton combed yarns Polyester/ cotton Melange yarns Fancy Yarns Ja
Slide 18: Sales & Marketing
SALES & MARKETING Focus on excellence Focus on delivering best & premium quality products to most quality conscious brands and customers. Customer Driven Innovation As a result of changing trends in both domestic & international markets accompanied with customer centric approach, our innovation init
Slide 19: Marquee Customers
MARQUEE CUSTOMERS Sportking vorsey M&S TNR\ IKEA) EST. 1884 > ) s Oliver Et interlexp COTTON USA™
Slide 20: Board of Directors
BOARD OF DIRECTORS Munish Avasthi Naresh Jain Prashant Kochhar Sandeep kapur Hapreet Kaur Kang Anjali Avasthi Managing Director Executive/Whole Non-Executive Non-Executive Non Executive Non Executive Time Director Independent Director Independent Director Independent Director Non Independent Directo
Slide 21: Management Team
MANAGEMENT TEAM Shiv K. Sharma • Shiv K. Sharma is a B.Tech with an experience of over 37 years President- Production • He look after the overall Project Implementation, Production, Development, and Maintenance of the company’s Bathinda spinning unit • D. S. Yadav has a Master Degree with specializa
Slide 22: Certificates & Compliances
CERTIFICATES & COMPLIANCES Global Organic textile Organic Content Standard Standard Oeko-Tex Fairtrade ISO 9001 2015 Global Recycle Standard 21
Slide 23: Way Forward
Sportkiqg > _ i Way Forward
Slide 24: Business Strengths
BUSINESS STRENGTHS Product Range 04 Competitive Prices Well diversified range of products Sportking enjoys price leadership suitable for use in manufacture of status in all of the market segments woven and knitted fabrics for due to its ability to supply high quality summer and winter wear products
Slide 25: Capacity Buildup Over the Years
CAPACITY BUILTUP OVER THE YEARS Continuous capacity addition to support robust growth in our business 3,15,504 40,800 68,256 34,464 -6,520 24,480 Closure of a unit(Small 52,800 capacity) 28,800 12,096 23,232 12,720 17,856 6,520 1994 1996 1998 2006 2007 2011 2012 2013 2014 2014 2019 2022 Total Existi
Slide 26: Half Yearly Business Updates
HALF YEARLY BUSINESS UPDATES Successful commissioning of 10 MW Rooftop Status of ongoing expansion Project Solar Power Project at Bathinda Unit Phase 1 & 2 at Bathinda Unit Completion of phase 1 expansion project 1st Phase capacity addition – 40,800 Spindles for manufacturing of Polyester Cotton S
Slide 27: Historical Financial Charts
HISTORICAL FINANCIAL CHARTS Revenue from Operations (Rs. in Crs) EBITDA (Rs. in Crs) PBT (Rs. in Crs) +19.5% 2,154 596 547 +55.7% +108.7% 1,355 1,306 1,055 1,160 211 129 136 140 101 29 38 18 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT (Rs. in Crs) EBITDA % PAT % 40
Slide 28: Key Financial Ratios
KEY FINANCIAL RATIOS ROCE # ROE * 76.4% 72.8% +5,080 bps +6,430 bps 31.7% 27.8% 14.8% 19.5% 16.0% 10.0% 10.9% 5.0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Interest Coverage ratio Long term Debt/Equity Ratio 20.8 0.99 0.80 0.61 0.54 5.8 3.5 3.3 2.4 0.18 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY
Slide 29: Profit & Loss Statement
PROFIT & LOSS STATEMENT Profit & Loss statement (Rs. in Crs) Mar'22 Mar'21 Mar'20 Mar'19 Mar'18 Revenue from Operation 2154 1306 1355 1161 1055 Raw Material Cost 1181 785 901 756 682 Purchase of Finished goods 0 0 1 1 1 (Increase) / Decrease In Stocks -14 10 7 -2 13 Power Cost 120 112 113 96 95 Gros
Slide 30: Improving Debt Profile & Financial Ratios
IMPROVING DEBT PROFILE & FINANCIAL RATIOS Debt Financial ratios Long term Debt to Equity Debt to Equity Short term Long term 0.21 0.20 0.77 0.18 449.0 176.0 173.0 0.46 142.0 0.21 217.0 Mar-22 Jun-22 Sep-22 Mar-22 Jun-22 Sep-22 35.0 Mar-22 Jun-22 Sep-22 Mar-22 Jun-22 Sep-22 TOL/ TNW Current Ratio 1.0
Slide 31: Balance Sheet Statement
BALANCE SHEET STATEMENT Equity & Liabilities (₹ in Cr) Sept’22 Mar’22 Assets (₹ in Cr) Sept’22 Mar’22 Equity Share Capital 13 13 Property, plant and equipment 533 381 Other Equity 837 754 Capital Work-in-Progress 52 73 Total Equity 850 767 Right of Use Asset 1 1 Financial liabilities Other Intangibl
Slide 32: Cash Flow Statement
CASH FLOW STATEMENT Cash Flow Statement (Rs. Crs.) Sep-22 Mar-22 Sept-21 Cash Flow from Operating Activities Profit before Tax 123.0 547.4 252.6 Adjustment for Non-Operating Items 64.4 68.5 31.0 Operating Profit before Working Capital Changes 187.4 616 283.6 Changes in Working Capital 420.1 -382.9 1
Slide 33: Thank You
THANK YOU Sportking India Limited CIN: L17122PB1989PLC053162 Mr. Lovlesh Verma 01612845456 cs@sportking.co.in www.sportking.co.in Mr. Bhavin Soni +91 9833537225 Bhavin.soni@linkintime.co.in Mr. Rajesh Agrawal +91 9967491495 Rajesh.Agrawal@linkintime.co.in