S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q3 FY2025 Earnings Presentation
47 slides from S.p. Apparels's earnings presentation, Feb 11, 2025
Slide 1: Cover letter to stock exchanges
@ S.P.APPARELS LTD. L, Regd. Office : 39-A, Extension Street, Kaikattipudur, AVINASHI - 641 654, Tamil Nadu, India. Phone : +91-4296-714000 E-mail : spindia@s-p-apparels.com Web : www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295 11 February 2025 The Listing Department The Listing Department BSE L
Slide 2: S. P. Apparels Limited – Q3 & 9MFY25 Investor Presentation
S. P. APPARELS LIMITED Dressing the Future.... Q3 & 9MFY25 | Investor Presentation
Slide 3: Table of Content
TABLE OF CONTENT 1 Quarter Highlights: Q3 & 9MFY25 5 S. P. Apparels (UK) 2 Company Overview 6 Growth Drivers 3 Garment Division 7 Financial Highlights 4 S. P. Retail 2
Slide 4: Quarter Highlights
Quarter Highlights Q3 & 9MFY25 Dressing the Future....
Slide 5: Q3 & 9MFY25: Performance Highlights (Consolidated)
Q3 & 9MFY25: Performance Highlights Consolidated Total Revenue (Q3FY25) EBITDA (Q3FY25) PAT (Q3FY25) Consolidated YoY Growth % Consolidated YoY Growth % Consolidated YoY Growth % ₹ 3,622 Mn 40.9% ₹ 538 Mn 36.6% ₹ 248 Mn 40.6% Consolidated Total Revenue (9MFY25) EBITDA (9MFY25) PAT (9MFY25) Consolida
Slide 6: Q3 & 9MFY25: Performance Highlights (Standalone)
Q3 & 9MFY25: Performance Highlights Standalone Adj. Total Revenue (Q3FY25) Adj. EBITDA (Q3FY25) PAT (Q3FY25) Standalone YoY Growth % Standalone Margin (%) Standalone Margin (%) ₹ 2,334 Mn 3.6% ₹ 388 Mn 16.6% ₹ 180 Mn 7.7% Standalone Adj. Total Revenue (9MFY25) Adj. EBITDA (9MFY25) PAT (9MFY25) Stand
Slide 7: Segmental Highlights
Segmental Highlights Garment Exports SPUK Retail (Including Young Brand Apparel) Adj. Operational Revenue (Rs. Mn) Operational Revenue (Rs. Mn) Operational Revenue (Rs. Mn) 31.5% (2.6)% 38.4% 82.2% YoY YoY 41.8% YoY YoY 25.5% YoY 9,471.5 566.9 YoY 575.5 620.5 560.3 431.0 6,841.4 520.5 250.8 420.5 3,
Slide 8: Garment Division – Operational Update
Garment Division – Operational Update Capacity Utilization Export Volumes & Realization Export Volumes (mn pcs) & Net Sales Realisation in INR 16.0 160.00 85.0% 147.2 135.4 15.8 133.5 132.6 140.00 15.5 15.5 130.3 15.3 120.00 78.0% 15.0 100.00 14.5 80.00 14.3 14.0 60.00 13.8 13.5 40.00 13.0 20.00 12.
Slide 9: P&L Statement Highlights (Consolidated)
P&L Statement Highlights (Consolidated) Particulars (In Rs Mn) Q3 FY25 Q3 FY24 YoY% Q2 FY25 QoQ% 9MFY25 9MFY24 YoY% Revenue from Operations 3,593.2 2,521.4 42.5% 3,913.0 -8.2% 9,959.3 7,922.2 25.7% Other Income 28.7 48.8 23.9 79.7 146.8 Total Revenue 3,621.8 2,570.1 40.9% 3,936.8 -8.0% 10,038.9 8,06
Slide 10: P&L Statement Highlights (Standalone)
P&L Statement Highlights (Standalone) Particulars (In Rs Mn) Q3 FY25 Q3 FY24 YoY% Q2 FY25 QoQ% 9MFY25 9MFY24 YoY% Revenue from Operations 2,335.6 2,238.1 4.4% 2,560.4 -8.8% 7,036.5 6,932.0 1.5% Gain on account of Foreign Currency Fluctuations -1.3 14.6 14.7 11.6 -90.5 Adj. Total Revenues 2,334.3 2,2
Slide 11: P&L Statement Highlights - Young Brand Apparel
P&L Statement Highlights - Young Brand Apparel Particulars (In Rs Mn) Q3 FY25 Q2 FY25 Q1 FY25 Revenue from Operations 840.6 942.3 595.8 Gain on account of Foreign Currency Fluctuations 19.6 14.0 11.3 Adj. Total Revenues 860.2 956.2 607.1 COGS 443.3 531.4 293.7 Gross Profit 416.9 424.8 313.4 Gross Ma
Slide 12: Company Overview
Company Overview S. P. Apparels Limited (SPAL) founded in 1989, is India's biggest manufacturer and exporter of knitted clothes for infants and children. These are produced in integrated facilities that enable end- to-end garment manufacturing services. SPAL offers complete garment production servic
Slide 13: About us – S. P. Apparels (SPAL)
About us – S. P. Apparels (SPAL) SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India Strong promoter pedigree with more than 40 years of experience in the textile and apparel industry Provides end-to-end garment manufacturing from Yarn to fini
Slide 14: Journey So Far
Journey So Far 1989-2003 1989 2006-2008 2016 Started export operations as 2006 2016 a partnership firm Investment by NYLIM Listed on BSE / NSE 1998 2024 Investment in JV for manufacturing & Repayment of Loans to Set-up manufacturing facility at Neelambur marketing of the “Crocodile” Brand reduce lev
Slide 15: Effective Management Structure
Effective Management Structure Board of Directors Mr A.S. Anandkumar Mrs H .Lakshmi Priya Mr C. R. Rajagopal Mr V. Sakthivel Independent Director Independent Director Independent Director Independent Director Mr P. Sundararajan Chairman and Managing Director Garment Export Division • Founder directo
Slide 16: Integrated Facilities – Right from Yarn to Garment
Integrated Facilities – Right from Yarn to Garment SPINNING KNITTING DYEING CUTTING PRINTING AUTOMATED SEWING AUTOMATED SEWING SEMI-AUTOMATED EMBROIDERY ASSEMBLY LINE INVENTORY MANAGEMENT 15
Slide 17: Garment Division
Garment Division Established Global Player
Slide 18: Garment Division at Glance
Garment Division at Glance Well Established Garment Export Business (Kids & Infants) Leading exporter Leading Kids and Infants Exporter Globally +70% Growth +70% Growth in Garment Exports Revenue from FY16 to FY24 15-20% Margins Consistently Delivered EBITDA Margins between 18%-20% Global Catering t
Slide 19: Infants and Kids Segment a Critical Sector to Cater
Infants and Kids Segment a Critical Sector to Cater Skilled labour • Labour intensive operations • Employee training & skill development • Employee occupational health & welfare Products • Cater to infants and children • Manufacture high-fashion garments Health & safety regulations Key Entry • Strin
Slide 20: Preferred Vendor To Reputed International Brands
Preferred Vendor To Reputed International Brands Strong Pedigree Brand Signatures Integrated Manufacturing Location Advantage Leading children wear We are the preferred vendor of 100% Backward integrated right Located near Tirupur – the hub for manufacturer under the choice with a strong relationshi
Slide 21: Complete Integration enables Quality Consistency and Timely Delivery
Complete Integration enables Quality Consistency and Timely Delivery Quality checks at every stage Product Order Spinning Knitting Dyeing Garmenting Export Development Packing of Purchase of Design Creation Sewing orders as per dyed yarn instructions Customer Yarn converted Fabric dyed and Final AQL
Slide 22: Developed Capabilities Over the Years
Developed Capabilities Over the Years Demonstrated manufacturing excellence for over 3 decades Clear understanding of buyer preferences and specifications of knitted garments and embellished garments in infants and children category Ability to consistently deliver high quality products on timely bas
Slide 23: Proficient In-House Design Team
Proficient In-House Design Team SPAL’s core competency Dedicated in-house Use of latest technology Design development, lies in understanding the design and for developing products sampling, and fitment latest fashion and trends merchandising team of and styles which are form an integral part of to s
Slide 24: Quality is a key essence of our success
Quality is a key essence of our success Stringent quality control checks Rigorous inspections eliminate at every stage, from fabric to defects, ensuring exceptional garment, ensure top-notch quality, with an internal rejection product quality, free from any rate below international metal bits, needl
Slide 25: Improving Operating leverage to thrust growth
Improving Operating leverage to thrust growth Capacity Utilization Trend EBITDA Margin (%) 81.0% 22% 76.0% 72.0% 20% 18% 18% 60.0% 17% 58.0% FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9MFY25 Potential to raise existing utilisation levels by EBITDA Margin (%) to remain sustainable 10% to 20%**, w
Slide 26: Young Brand Apparel – Entry into Intimate Wear Exports
Young Brand Apparel – Entry into Intimate Wear Exports The company offers innerwear and Core export customers are Marks & Intimate Marquee outerwear for men, women and kids. Spencer, PINK (Victoria’s Secret), Wear It specializes in intimate wear Customers Jockey, American Eagle Owns a 2,80,000 sq. f
Slide 27: S.P. Retail
S.P. Retail Building a Brand for Future
Slide 28: Evolution of Retail Division
Evolution of Retail Division 2006 2008 - 2012 2013 - 2019 2020 - 2022 Acquisition of CPPL Revolutionizing Retail: Store Expansion and Acquired licensee of & exclusive Crocodile's Flagship Phase of Consolidation Angel & Rocket Crocodile license Stores Unveiled • SPAL acquires major stake 2008 • The p
Slide 29: Retail Division - A High Value Brand Play
Retail Division - A High Value Brand Play Fuelled by a robust distribution network, Crocodile is an Established and a SPAL an in-house design team, and a Crocodile profitable brand with Pan India Retail sustainable growth strategy, Retail is Presence and Good Brand Recall One of the fast-growing div
Slide 30: S. P. Retail – The Brand Portfolio
S. P. Retail – The Brand Portfolio Leading Apparel brand with a presence 49 Strategic acquisition of a premium kids wear 46 across India brand, to establish our very own kids and Standalone infants' brand in India In large stores format stores Crocodile is one of the largest fashion This move strate
Slide 31: S.P. Apparels (UK) (P) Ltd
S.P. Apparels (UK) (P) Ltd Tapping the Global Market
Slide 32: S.P. Apparels (UK) (P) Limited (SPUK)
S.P. Apparels (UK) (P) Limited (SPUK) SPUK – Need of an hour to Caters to Large cater to European Clients European Brands Incorporated in 2014 to Strong consumer ties to well- explore possible marketing known businesses like Joules opportunities and engage in and Dunnes Stores trading activities wit
Slide 33: Growth Drivers
Growth Drivers
Slide 34: Growth Drivers
Growth Drivers Sivakasi Expansion Expansion in Sri Lanka Enhanced Product Mix Strategic Acquisition • Initial phase involves • Planned to set up machines • Plans to expand into men, • Young Brand acquisition installing 400 machines in Sri Lanka for SPUK women, intimate wear and strengthens SP Appare
Slide 35: Macro Tailwinds – To boost Indian Garment Exports
Macro Tailwinds – To boost Indian Garment Exports China Plus-One and Reduction of dependency from Bangladesh by Benefit for SPAL International customers will Benefit the Indian Garment Industry Capacity Utilization to grow by 10%-20% in near future Source: Business Standard According to CII Employee
Slide 36: FTA and RoDTEP – Bringing Indian Exporters at a level playing field
FTA and RoDTEP – Bringing Indian Exporters at a level playing field FTA’s, RoSCTL and RoDTEP to Push the Indian Garment Exports Benefit for SPAL • India and UAE have recently signed a Free Trade Agreement (FTA) • India is also in the process of negotiating FTAs with the EU, Australia, UK, Canada, FT
Slide 37: Garment Industry - Opportunities Ahead
Garment Industry - Opportunities Ahead Garment Market to pick up post hit from macro-headwinds Benefit for SPAL Global Apparel Market, Forecast Men's Market Size, 2022-2027, $ Billion Wear: S. P. Apparels – One of 831 6.57% the leading Global 737 782 653 694 Exporters of Infant and 610 Kids Garments
Slide 38: ESG
ESG Mission Statement: "To achieve carbon neutrality by the year 2033" Vision Statement: “To be a sustainable practise leader by promoting the use of renewable energy and prioritising the usage of recycled materials in order to protect our world for future generations” At SPAL we are committed to bu
Slide 39: Sustainability at SPAL
Sustainability at SPAL Our approach to sustainability is guided to create long-term value in a balanced and responsible manner while making choices that positively impact environment, people, and communities. OUR PILLARS Sustainable business Responsible production Creating social impact Commitment t
Slide 40: From Awareness to Action: Making a Difference for the Environment
From Awareness to Action: Making a Difference for the Environment Our company is committed to conducting business activities in an environmentally responsible manner. We focus on reducing our environmental footprint across the value chain and returning back to nature what we consume. Environmental S
Slide 41: Building Stronger Communities through Social Responsibility
Building Stronger Communities through Social Responsibility Building a Stronger Community: Workplace Safety and Sanitation Women Empowerment Our Efforts for Betterment Measures Comprehensive support for needy, access Regular emergency evacuation drills, to education and skill development comprehensi
Slide 42: Financial Highlights
Financial Highlights
Slide 43: Financial Highlights (1/2)
Financial Highlights (1/2) Consolidated Figures (in Rs. Mn) Adj. EBITDA & EBITDA Profit after tax (PAT) & PAT Adj. Total Revenues margin Margin 10,984.0 10,774.0 9.8% 7.5% 8.3% 17.6% 6.6% 8089.7 8671.9 16.4% 15.7% 5.6% 14.4% 6523 10.8% 846.9 825.1 896.2 1,528.2 1,728.9 1,551.1 895.3 1,072.0 469.2 43
Slide 44: Financial Highlights (2/2)
Financial Highlights (2/2) Figures (in Rs. Mn) Garment Division 20.2% 20.9% 9,600.4 18.7% 9,383.717.6% 12000 10000 12.0% 8000 7,026.4 7,429.3 6000 5,368.7 1,553.2 1,791.0 1,655.5 4000 2000 842.6 1,083.3 0 FY20 FY21 FY22 FY23 FY24 Garment Revenue Garment EBITDA Margin Retail Division SPUK 768.1 805.6
Slide 45: Shareholding Structure
Shareholding Structure SHAREHOLDING PATTERN – 31st December 2024 KEY SHAREHOLDERS – 31st December 2024 DSP Mutual Fund 8.7 Quant Mutual Fund 3.4 Franklin Templeton Mutual Fund 2.4 UTI Asset Management 2.1 Mahindra Manulife Mutual Fund 1.2 LIC Mutual Fund 0.5 Promoter (61.9%) Alternate Invst Funds (1
Slide 46: Disclaimer
Disclaimer This presentation has been prepared by S. P. Apparels Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or o
Slide 47: Let's Connect!
LET’S CONNECT! Mr. V. Balaji, Chief Financial Officer Balaji.V@spapparels.com Mr. Vikash Verma Mr. Abhishek Bhatt Vikash.verma1@in.ey.com Abhishek.bhatt3@in.ey.com Shrishti Tandon Shrishti.tandon@in.ey.com Visit us at: www.s-p-apparels.com