Sarla Performance Fibers Limited · NSE:SARLAPOLY
Sarla Performance Fibers — Q4 FY2013 Earnings Presentation
24 slides from Sarla Performance Fibers's earnings presentation, 2013
Slide 1: Results Presentation Q4 & FY2013
Results Presentation Q4 & FY2013
Slide 2: Financials & Key Ratios
Financials & Key Ratios 2
Slide 3: Q4 & FY2013 Financials (Consolidated)
Q4 & FY2013 Financials (Consolidated) Note: The Board has recommended a dividend of Rs. 6 per equity share which translates to a dividend payout of 14.90% 3
Slide 4: Balance sheet as on 31st Mar 2013
As on As on Rs. (Crore) 31st Mar 2013 31st Mar 2012 EQUITY AND LIABILITIES: Shareholders' Funds 146.48 124.41 Non-Current Liabilities 52.34 18.91 Current Liabilities 109.54 97.03 TOTAL 308.36 240.35 ASSETS: Non-Current Assets 141.07 91.97 Current Assets 167.29 148.38 TOTAL 308.36 240.35
Slide 5: FY2013 (Balance Sheet Data)
FY2013 (Balance Sheet Data) Gross debt as on 31st March, 2013 stood at Rs. 111.74 crore out of which Rs. 41.63 crore is long term debt with the remaining constituting working capital The Net Worth of the Company as on 31st March, 2013 was Rs. 146.48 crore Cash & Bank Balances held by the compa
Slide 6: FY2013 Key Ratios
FY2013 / As on March 31, 2013 EV/EBITDA 2.12 Dividend Payout 14.90% Long term D/E 0.28 P/B 0.69 P/E 3.60 Dividend Yield 4.13% Inventory Days 98 Debtor Days 80
Slide 7: Company Performance & Outlook
Company Performance & Outlook • Continued growth trajectory with strong Revenue, EBITDA & PAT for the FY2013 • Revenue – Rs. 258.69 crore (up 16.19%). Revenue growth has been driven primarily by improved realizations and volumes • EBITDA – Rs. 47.61 crore (up 37.96%). Margins improved by 290 bps com
Slide 8: Managing Director's Comment
Managing Director’s Comment 8
Slide 9: Managing Director's Comment on Performance
Commenting on the performance, Mr. Krishna Jhunjhunwala, Managing Director of the Company said, “We are glad to report a healthy growth in our financials this fiscal. Our operating performance continues to remain robust with significant margin expansion as we are now procuring a greater proportion o
Slide 10: Revenue Breakup and Gross Margin (Delta) on Polyester and Nylon Yarns
Revenue Breakup and Gross Margin (Delta) on Polyester and Nylon Yarns 10
Slide 11: Segment Breakup
Qeasa 18967) Segment Breakup Q4 FY13 Q4 FY12 Commodities ; Cor tities 14% " Innerwear, Narrow Industrial Farics, Industrial Yarns Hosiery and Yarns 20% Sportwear 13% 37%
Slide 12: Geographical Breakup
Qeasa 18969) Geographical Breakup Q4 FY13 Q4 FY12 Asia Pacific 31%
Slide 13: Gross Margin (Delta) on Polyester and Nylon Yarns
Gross Margin (Delta) on Polyester and Nylon Yarns Gross Margin/kg (Rs.) Nylon Polyester 2012 66 38 2013 84 55 13
Slide 14: Company Profile
Company Profile 14
Slide 15: Manufacturer of specialized polyester and nylon yarns and threads
• Manufacturer of specialized polyester & nylon yarns and threads • Listed on the BSE in 1995 and subsequently NSE in 1997 • Has an established manufacturing unit in Silvassa for polyester textured/twisted yarn • Capacity of 11,900 tons per annum • In-house dyeing plant in Vapi broadening the produc
Slide 16: Progression from commodity yarns to specialized yarns
• The Company in its early stages began operations as a manufacturer of commodity yarns and has now successfully progressed to specialized and higher value added yarns • Caters to a niche clientele of marquee customers • Amongst the largest manufacturers for air covered and conventional covered yarn
Slide 17: Manufacturing facility in the US for POY and sewing thread
Manufacturing facility in the US will cater to POY used in specialized textured polyester yarn as well as sewing thread •Total size of opportunity in the US for sewing thread is $ 100 mn Benefits arising out of the US facility •Duty free benefits on goods manufactured inside the US as per NAFTA & CA
Slide 18: Financial Discipline and Wind power
• Prudent deployment of funds • Extremely low leverage Financial • Cash surplus being deployed to grow stable wind power Discipline business • No further equity infusion or other debt funds required at this point • Deployment of strong cash flows to expand into the wind power business Wind power • S
Slide 19: Industry Perspective
Industry Perspective
Slide 20: U.S. Synthetic Apparel Sourcing Trends
U.S. Synthetic Apparel Sourcing Trends US apparel makers lost 38% share in the past 12 years; Market share now stabilizing US Markets share stabilizing, set to return to erstwhile levels Source: Industry data • New Policies in the US favors local manufacturing (Rule of origin; Yarn Forward etc.) • L
Slide 21: US vs Asia/Far East yarn prices
75/70 den textured 150 den textured 350 319 319 319 328 378 372 372 372 376 306 306 400 361 300 300 250 225 215 215 215 195 185 185 185 190 210 200 200 175 200 150 c/kg c/kg 100 100 50 0 0 Asia/Far East USA Asia/Far East USA Source: Industry data US Prices are 55 -70% higher than Asia/Far East
Slide 22: U.S. Market Segmentation – FY 2012
U.S. Market Segmentation – FY 2012 Source: Industry data Policies make increase in Opportunity across all segments ‘compliant’ sales inevitable
Slide 23: Regional Competitive Advantages
Regional Competitive Advantages Competitive cost $5.76 • Duty-free benefits of up to 32% on synthetic garments $5.44 • Greater labor productivity than most other yarn suppliers • Higher inflation in China/Asia Faster supply and flexibility • Shorter lead times of 6 to 7 weeks from ‚order‛ to ‚U.S. d
Slide 24: Sarla Performance Fibers Limited CDR India
For further information contact Sarla Performance Fibers CDR India Limited Mahendra Sheth (CFO & Company Secretary) Gavin Desa msheth@sarlafibers.com gavin@cdr-india.com Tel.: +91 22 2283 4116 / 6632 4038 Rishab Barar rishab@cdr-india.com Tel.: +91 22 6645 1237 / 1238 Safe Harbour: Certain statement
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