Sangam (india) Limited · NSE:SANGAMIND
Sangam (india) — Q2 FY25 Earnings Presentation
35 slides from Sangam (india)'s earnings presentation, Oct 26, 2024
Slide 1: Intimation to Stock Exchange cover letter
SANGAM (INDIA) LIMITED CIN : L17118RJ 1984PLC 003173 E - mail : secretarial@sangamgroup.com Website : www.sangamgroup.com I Ph : +91-1482-245400-06 Ref: SIL/SEC/2024-25 Date: 26th October, 2024 The Manager, The Manager, Department of Corporate Services Department of Corporate Services, The National
Slide 2: Sangam (India) Limited Earnings Presentation Q2 FY25
Sangam (India) Limited Earnings Presentation Q2 FY25
Slide 3: Safe Harbor
Safe Harbor The presentation has been prepared by Sangam (India) Limited (the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basi
Slide 4: Index
INDEX Q2 & H1 FY25 Performance 4 Company Overview 13 Historic Financial Performance 24 Awards & Certifications 29
Slide 5: Sangam: Weaving The Future
Sangam: Weaving The Future India’s largest, fastest growing and most trusted brand in Textile Sector Performance Metrics o One of the largest manufacturer of PV dyed Yarn and Denim Fabric. Rs. 1,369 Cr 25% o Strong Expertise: 4 decades of Industry experience. Revenue Revenue CAGR o Skilled Employee
Slide 6: Key Highlights: Q2 & H1 FY25
Key Highlights: Q2 & H1 FY25 o 5% revenue growth YoY in H1 FY25, driven Rs. 676 Cr Rs. 293 Cr Rs. 56 Cr Q2 FY25 by increased volumes. up 7% YoY 43.4% Margin 8.2% Margin o Gross margins maintained at over 40%. Revenue Gross Profit EBITDA o EBITDA margins improved to 9% in H1 FY25, up by 130 bps YoY.
Slide 7: Diversified and De-Risk Business Model
Diversified and De-Risk Business Model Product Wise Sales Contribution Geographical Presence 3% 21% Rest of 22% World 34% Q2 FY25 28% India 26% 66% PV Yarn Cotton Yarn India Rest of World Denim Fabric Woven Fabic with processing Garment 20% 3% Rest of 24% World 36% H1 FY25 29% India 24% 64% PV Yarn
Slide 8: Value Addition Driving Margin Expansion
Value Addition Driving Margin Expansion Value Added Products and Gross Margin % 1% 1% 1% 3% 40% 43% 45% 45% 50% 53% 52% 45% Increased the revenue 45% mix of value-added 44% 45% 43% 43% products, i.e. Fabric and Garment to 53% 41% 42% 42% (during FY24) of total revenue, effectively mitigating market
Slide 9: Vision 2026: Moving up the Value Chain – Fabric & Garments
Vision 2026: Moving up the Value Chain – Fabric & Garments Revenue growth to be led by better Product Mix Vision for FY 2026 Topline Segment Wise Sales Rs. 4,000 Cr Contribution 61% FY24 Yarn FY26 47% Revenue 50% Fabric Revenue Rs. 2,628 Cr Rs. 4,000 Cr 1.5x of FY24 Revenue Garment 33% EBITDA Margin
Slide 10: Capacity Expansion to Drive Future Growth
Capacity Expansion to Drive Future Growth Project Particulars Completion Capital Machines Capacity Timelines Outlay (in Nos.) Current Post Expansion Current Post Expansion Weaving-48 Weaving-65 Synthetic Fabric Q4 FY25 Rs. 160 Cr MMPA MMPA Weaving Machines 260 340 Yarn Q1 FY26 Rs. 344 Cr 1,03,140 MT
Slide 11: Comfortable Debt Repayments
Comfortable Debt Repayments Interest Coverage Ratio (x) o Debt repayment through internal accruals. 5.0 4.1 o Capex plans to expand capacity and boost revenue growth. 1.7 1.4 1.2 1.2 0.8 0.8 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Net Debt/ Equity (x) Debt Repayment Schedule (in Rs. Cr) 1.2 120 1
Slide 12: Q2 & H1 FY25 Performance
Q2 & H1 FY25 Performance Particulars (Rs in Cr) Q2 FY25 Q1 FY25 Q2 FY24 YoY H1 FY25 H1 FY24 YoY Revenue from Operations 676 693 629 7% 1,369 1,306 5% Gross Profit 293 298 259 13% 591 532 11% Gross Margin (%) 43.4% 42.9% 41.1% 228 bps 43.2% 40.8% 243 bps EBITDA 56 67 47 20% 123 100 23% EBITDA Margin
Slide 13: Secured PLI
Secured PLI PLI Eligible Company: Amongst the select textile companies to be eligible for the PLI scheme. Status: Approval obtained; the company is currently completing the remaining formalities. Sangam Ventures Limited (Subsidiary of Sangam (India) Scheme Duration: From December 24, 2021, to March
Slide 14: Company Overview
Company Overview
Slide 15: Sangam (India) Limited: Fully Integrated Textile Operations
Sangam (India) Limited: Fully Integrated Textile Operations Strong Presence in Rajasthan- 5 State of the art manufacturing facilities Fully integrated model- From Yarn to Fabric operations, Sangam can offer unlimited product combination in unlimited shades in cost effective manner. Existing diverse
Slide 16: Significant Focus on Sustainability And CSR
Significant Focus on Sustainability And CSR Recycle Empowering community Renewable Energy Water Consumption o 30,000MT p.a. of recycled o Established Institutes and o 3 solar power plants, o 3 effluent treatment fiber comes through University. generating 16 MW of plants. recycling of 38,400MT o Esta
Slide 17: Diverse Offerings
Diverse Offerings Weaving a Better Tom orrow As an integrated Integration facilitates Sangam has produced Integrated production player company can seamless coordination more than 20,000+ facility- Control over manage, multi counts between different colors of PV Dyed Yarn every stage of and multi ble
Slide 18: Yarn- Improving The Mix
Yarn- Improving The Mix • Leader in PV dyed Export yarn to 34+ Yarn Produced: Cotton & PV Dyed. In 1995 initiated backward integration into Key Highlights yarn in India. countries. Established Manufacturer of 100% cotton Yarn: Core spinning • Price Maker. Distribution Network. Spun Yarn, Eli Twist Y
Slide 19: Garment – Revenue increased 5x in 7 years
Garment – Revenue increased 5x in 7 years • India’s largest • Athleisure wear, • 2,000+ touchpoints. Key Highlights manufacturers of Intimate wear and • FY 24: Garment Seamless Garments- C9 Casual Wear Domestic: 96% Export: 4% (as a % of Revenue) • Cutting edge machinery sourced from Santoni, Italy.
Slide 20: Denim Fabric – Revenue increased 2.5x in 7 years
Denim Fabric – Revenue increased 2.5x in 7 years • One of the largest exporter with exports to 25+ countries and market leader of Denim Fabric in country. Denim Fabric Key Highlights • Producers of wide range of denim fabric ranging from 4Ozs to 15Ozs. (as a % of Revenue) • Working with value added
Slide 21: Synthetic Fabric – Significant Market Share
Synthetic Fabric – Significant Market Share • One of the largest exporter and market leader of PV fabric in • Export to 45 + country countries. Key Highlights • Significant market share in processing PV, PV Lycra, PVW, Polyester woolen & 100% wool. Synthetic Fabric with Processing (% of Revenue) • F
Slide 22: Leadership In India: PV Dyed Yarn
Leadership In India: PV Dyed Yarn • Grasim Industries Limited has 80-85% market share globally. • Sangam (India) Limited is the largest buyer of Viscose from Grasim. • Using this Viscose and taking benefit of in-house dying polyester it manufactures PV dyed yarn. 21
Slide 23: Our Strong Leadership
Our Strong Leadership MR. RAM PAL SONI DR. S.N. MODANI MR. VINOD KUMAR SODANI MR. ANURAG SONI MR. PRANAL MODANI MR. S. R. DAKHERA Founder & Chairman Vice Chairman ED & CEO (Fabric & Garment Managing Director CEO (Yarn & Denim CFO Business) Business) 40 years of rich experience Holds a Ph.D. in strat
Slide 24: Well-Structured Board
Well-Structured Board MR. SUDHIR MAHESHWARI MS. IRINA GARG MR. DINESH CHANDE PATWARI MRS APARNA SAHAY MR. UPENDRA PRASAD SINGH Independent Director Independent Director Independent Director Independent Director Independent Director With a 34-year long career After serving as IRS Income Tax Served fo
Slide 25: Financial Performance
Financial Performance
Slide 26: Historical Income Statement
Historical Income Statement Particulars (in Rs. Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Revenue from Operations 1,874 1,790 1,359 2,438 2,712 2,628 Total Expenditure 1,714 1,629 1,237 2,130 2,411 2,413 EBITDA 159 162 122 307 302 215 EBITDA Margin % 8.5% 9.0% 9.0% 12.6% 11.1% 8.2% Depreciation 81 81
Slide 27: Historical Balance Sheet
Historical Balance Sheet Particulars (in Rs. Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 Particulars (in Rs. Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 (a) Equity Share Capital 39 39 43 43 45 50 Non-Current Assets (b) Share Warrant - - - 26 23 - Property, Plant and Equipment 648 615 586 595 720 1,004 (c) Oth
Slide 28: Production Quantity & Capacity Utilization %
Production Quantity & Capacity Utilization % Yarn PV Fabric Denim Fabric Garment (MT) (Lakh Meter) (Lakh Meter) (Lakh pcs) Q2FY25 79.1% Q2FY25 96.1% 89.6% 46.4% 108 Q2FY25 116 Q2FY25 11 21,513 Q1FY25 82.2% Q1FY25 85.5% 94.0% 49.7% 95 Q1FY25 122 Q1FY25 12 21,776 Q4FY24 86.8% Q4FY24 86.8% 99.0% 59.6%
Slide 29: Product wise price realization
Q3FY22 Q3FY22 Q4FY22 Q4FY22 247 264 166 177 Q1FY23 Q1FY23 Q2FY23 289 273 Q2FY23 Q3FY23 Q3FY23 Q4FY23 Q4FY23 198 201 191 189 Q1FY24 245 230 229 Q1FY24 Q2FY24 Yarn (INR/kg) Q2FY24 Q3FY24 Q3FY24 Q4FY24 Denim Fabric (INR/Meter) Q4FY24 Q1FY25 Q1FY25 Q2FY25 220 208 217 225 230 Q2FY25 184 177 172 176 181 1
Slide 30: Awards & Certifications
Awards & Certifications
Slide 31: Awards And Recognitions
Awards And Recognitions TEXPROCIL Export TEXPROCIL Export “Rajasthan Energy Rajasthan State Award 2022-23 Award 2016-17 Conservation Award” Award 2008 for Export Gold Trophy for the Gold Plaque for the 2009-10 by Hon’ble Ex- Excellence in textile Highest Exports of Highest Exports of CM of Rajasthan
Slide 32: Recognized Four Star Export House
Recognized Four Star Export House Sangam (India) Limited has been recognized as a four-star export house. Exports (in Rs. Crore) 921 867 757 470 423 FY 20 FY 21 FY 22 FY 23 FY 24 31
Slide 33: Certifications
Certifications QUALITY MANAGEMENT QUALITY MANAGEMENT SOCIAL ACCOUNTABILITY SYSTEMS CERTIFICATIONS SYSTEMS CERTIFICATIONS STANDARDS GLOBAL RECYCLED ORGANIC CONTENT GLOBAL ORGANIC TEXTILE STANDARD STANDARD STANDARD 32
Slide 34: Our Customers
Our Customers & M&S _ Bus racsss NAR TAP Le Coopoe RM LYVEGEN aesrsive NEXT Walmart>!< —_AINABILA youstae JACKSIONES 2. MANGO LCWAIKIKI PRIMARK’ PRIMABRANDS Refiince RETAIL 68, JOCKEY GA? JOHN PLAYERS fag DECATHLON 33
Slide 35: Thank You
THANK YOU Sangam (India) Ltd Name: Mr Arjun Agal Tel: +91 9252145210 Email: arjunagal@sangamgroup.com Investor Relations: Go India Advisors Name: Ms. Devyanshi Dave Tel: +91 9892330743 Email: devyanshi@goindiaadvisors.com