S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q4 FY2019 Earnings Presentation
34 slides from S.p. Apparels's earnings presentation, May 25, 2019
Slide 1: Cover letter to stock exchanges: Financial Presentation
- 25th May, 2019 The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, 'Exchange Plaza', Dalal Street, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 540048 Symbol: SPAL Dear Sirs, Sub: Fina
Slide 2: S.P. Apparels Limited Investor Presentation Q4 & FY19 Results Update
s I S.P.APPAREL.S L.TD. S.P.APPARELS LIMITED INVESTOR PRESENTATION Q4 & FY19 Results Update May 2019
Slide 3: Disclaimer
DISCLAIMER s I S.P.APPARELS LTD. This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of op
Slide 4: FY19 – Key Highlights
FY19 – KEY HIGHLIGHTS Revenues1 PAT Adj. EBITDA2 Rs 8,104.6 Mn Rs 733.7 Mn Rs 1,238.3 Mn +20% YoY +53% YoY Garment Exports Division Core NWC Days declined to Retail Division Contribution Volume 59.9 Mn 118 days in FY19 compared 10.1% of Revenues +22% YoY to 139 days in FY18 Net Debt Rs 1,477.1 Mn Ca
Slide 5: Q4 & FY19 Results Update agenda
? s1a11ttddttc1·s ·aJ.1 Q4 & FY19 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 6: FY19 – Key Highlights
FY19 – KEY HIGHLIGHTS s I S.P.APPARELS LTD. In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 9.1% 8,104.6 18.4% 13.5% 7.1% 15.3% 6,733.6 10.6% 1,238.1 1,238.3 1,094.5 733.7 710.7 478.1 20 % 54 % 53 % FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 1. Total revenues inc
Slide 7: Q4 FY19 – Key Highlights
Q4 FY19 – KEY HIGHLIGHTS s I S.P.APPARELS LTD. In Rs Mn REVENUES 1 Adj. EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN 3 PAT & PAT MARGIN 3 20.8% 2,146.3 13.9% 8.9% 1,840.5 13.0% 7.2% 383.3 10.3% 298.8 278.4 190.9 188.8 132.3 17 % 27 % 58 % 44 % Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4
Slide 8: FY19 – Division Wise Analysis
FY19 – DIVISION WISE ANALYSIS s I S.P.APPARELS LTD. In Rs Mn FY19 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE FY18 FY19 Garment Exports 85.2% 84.0% 8,104.6 817.8 SPUK 5.3% 5.9% 6,733.6 481.8 646.3 Retail 9.6% 10.1% 353.6 27 % 36 % 6,805.0 Adj. EBITDA MARGIN % 2 FY18 FY19 5,733.7 G
Slide 9: Q4 FY19 – Division Wise Analysis
Q4 FY19 – DIVISION WISE ANALYSIS s I S.P.APPARELS LTD. In Rs Mn Q4 FY19 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1 DIVISION REVENUES SHARE Q4 FY18 Q4 FY19 Garment Exports 88.8% 86.2% 2,146.3 207.3 SPUK 5.6% 4.2% 1,840.5 89.4 103.5 102.4 Retail 5.6% 9.7% 100 % 13 % 1,849.6 Adj. EBITDA MARGIN % 2 Q4 FY18
Slide 10: Q4 FY19 – Key Analysis
Q4 FY19 – KEY ANALYSIS s I S.P.APPARELS LTD. • Q4 FY19 total revenues1 increased by 17% YoY to Rs 2,146. mn. • Revenues increased by 13% in Garment Exports and 100% in Retail, partially offset by 13% decline in SPUK. • Garment Exports division witnessed 22% volume growth on the back of orders from n
Slide 11: Q4 & FY19 – Consolidated Profit & Loss Statement
Q4 & FY19 – CONSOLIDATED PROFIT & LOSS STATEMENT s I S.P.APPARELS LTD. Particulars (In Rs Mn) Q4 FY19 Q4 FY18 YoY % FY19 FY18 YoY % Revenue from Operations 2,222.2 1,827.3 21.6% 8,263.8 6,624.2 24.8% Realised Gain / (loss) on account of Foreign Currency Fluctuations -75.9 13.2 - -159.2 109.4 - Total
Slide 12: Q4 & FY19 – Consolidated Balance Sheet
Q4 & FY19 – CONSOLIDATED BALANCE SHEET Particulars (Rs Million) Mar-19 Mar-18 Particulars (Rs Million) Mar-19 Mar-18 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 256.9 251.7 a. Property, Plant and Equipment 3,107.3 3,007.7 Other Equity 4,581.7 3,720.3 b. Capital
Slide 13: Company Overview
S.P.APPARELS LTD. Q4 & FY19 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 14: Brief Profile
BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪ SPAL is also the
Slide 15: Our Evolution
OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase efficiencies and
Slide 16: Leading Exporter of Infant & Children Wear in India
LEADING EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decades • Labour intensive operations.
Slide 17: Preferred Vendor to Reputed International Brands
PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including body suits, sleep su
Slide 18: Strategically Located Manufacturing Facilities
STRATEGICALLY LOCATED MANUFACTURING FACILITIES LOCATION ADVANTAGE: • All 26 manufacturing facilities are located within Tamil Nadu leading to significant economies of scale. • Convenient access to skilled labour and raw materials and also to machinery supplies and replacement parts. • Significant sa
Slide 19: Strategically Located Manufacturing Facilities
STRATEGICALLY LOCATED MANUFACTURING FACILITIES Spinning Knitting Dyeing 18
Slide 20: Strategically Located Manufacturing Facilities
STRATEGICALLY LOCATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 19
Slide 21: Strong In-House Design Expertise
STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office in India and des
Slide 22: Stringent Quality Controls & Compliance
STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each piece of garment f
Slide 23: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 22
Slide 24: Building Retail Presence in India
BUILDING RETAIL PRESENCE IN INDIA SPAL IS STRENGTHENING ITS RETAIL PRESENCE BY EXPANDING THE REACH OF CROCODILE BRAND OUR RETAIL STORE PRESENCE • SPAL undertakes manufacturing and retailing activities in India under the ‘Crocodile’ brand. • SPAL sells wide range of adult menswear products like shirt
Slide 25: Qualified Management with Deep Understanding of Apparel Sector
QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Founder director of SPAL with • Founder director of SPA with • Five years of experience in the 33 years of experienc
Slide 26: Board of Directors – Wide Spectrum of Experience
BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr A.S. Anandkumar Mr P. Yesuthasen Independent Director Independent Director • 45 years of experience in banking • 42 years of experience in banking • Masters of Science from the University of • MS in Business Administration, Cass Business Madras Sch
Slide 27: Business Strategy & Outlook
? I S.P.APPAAELS LTD. Q4 & FY19 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 28: Capacity Expansion & Backward Integration
CAPACITY EXPANSION & BACKWARD INTEGRATION Existing Business Model SPAL proposes to utilize Rs 750.7 mn from the Net IPO Proceeds towards: 1. Enhancing spinning capacity – Capex of Rs 472.4 mn Product Development • Spinning capacity from 16,896 to 22,272 spindles • Blow room capacity from 3,200 kg/da
Slide 29: Expand Retail Presence Across India
EXPAND RETAIL PRESENCE ACROSS INDIA PROPOSED EXPANSION OF RETAIL PRESENCE OVER THREE YEARS • Growing aspiration levels of people in Tier II, III and IV cities in India along with rising brand awareness and higher disposable income makes these smaller urban areas as focal points for expansion. • SPAL
Slide 30: Financial Overview & Shareholding Structure
? I S.P.APPAAELS LTD. Q4 & FY19 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 31: Financial Overview
FINANCIAL OVERVIEW FY15-16 Figures are as per the I-GAAP standards, FY17-19 Figures are as per IND-AS standards In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT Before MI & PAT MARGIN CAGR: 15 % CAGR: 18 % CAGR: 75 % 8.5% 8.9% 16.0% 16.4% 16.0% 16.2% 6.4% 7.2% 8,264 14.6% 6,330 6,624 1.7% 4,726 5,3
Slide 32: IPO Proceeds Utilisation
IPO PROCEEDS UTILISATION s I S.P.APPARELS LTD. Utilization of Net proceeds as on 31st March 2019 Particulars (Rs million) Utilization Planned Amount Utilized Amount Pending Utilization Expansion and modernization of manufacturing facility 701.6 668.0 33.6 Repayment or prepayment of debt 630.0 630.0
Slide 33: Shareholding Structure
SHAREHOLDING STRUCTURE s I S.P.APPARELS LTD. SHAREHOLDING PATTERN – 31st March 2019 KEY SHAREHOLDERS – 31st March 2019 Goldman Sachs India Ltd 5.21% Non-Institutions 18.3% UTI Mutual Fund 5.18% Promoters DSP Small Cap Fund 4.81% 61.6% Aditya Birla Sun Life Insurance Company Limited 2.84% Institution
Slide 34: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Chief Financial Officer Email: balaji.V@s-p-apparels.com Mr. Nilesh Dalvi IR Consultant Email: nilesh.dalvi@dickensonir.com Contact no: +91 9819289131