Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q3 FY2018 Earnings Presentation
26 slides from Banswara Syntex's earnings presentation, February 2018
Slide 1: Banswara Syntex Limited Presentation – February 2018
BANSWARA SYNTEX LIMITED Presentation – February 2018 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Banswara Syntex Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Q3FY18: Gradual Recovery in Business
Q3FY18: Gradual Recovery in Business Net Revenue (Rs crs) EBITDA (Rs crs) 8.3% 10.4% 8.4% 342 33 306 318 29 25 Q1FY18 Q2FY18 Q3FY18 Q1FY18 Q2FY18 Q3FY18 PAT (Rs crs) 3 2 1 Q1FY18 Q2FY18 Q3FY18 Confident of further improving our profitability in coming quarters * As per IND AS 3
Slide 4: Banswara Syntex a Global Player…
Banswara Syntex a Global Player… Incorporated in the year 1976 Vertically integrated textile solutions Experienced Design Teams in Long Term Relationship with Leading Global and Domestic India and Paris players In House R&D & state of the art Exports to over 60 countries facilities Global Customer J
Slide 5: Evolution into an Integrated Business
Evolution into an Integrated Business Vertical expansion of business to higher value products with larger market reach 2016 & Beyond 2008 - 2012 Setting the stage for the Future 2004 - 2007 • Started production • Focusing on growth of made-ups through strategic JVs Worsted spinning, 1993 • Started p
Slide 6: Presence across the Value Chain
Presence across the Value Chain Garments Fabric Yarn 6
Slide 7: Manufacturing Capabilities
Manufacturing Capabilities Spinning Unit Weaving Unit Dyeing Unit Garmenting Unit Invested over Rs. 494 crores towards expansion and modernisation between FY 2010 – December 2016 • Spinning Rs.235 Crs • Garmenting Rs.38 Crs • Fabric Rs.171 Crs • Power Unit Rs.50 Crs 7
Slide 8: Value Addition in the Yarn Business
Value Addition in the Yarn Business Current Scenario Going Forward ▪ We produce blends of viscose staple ▪ Focus on higher contributions from fibre, polyester staple fibre, acrylic value added yarns to the product mix staple fibre, lycra, cotton, linen, etc. o Increase in production of PV Lycra Yarn
Slide 9: Focusing on High-Quality & Performance Fabrics
Focusing on High-Quality & Performance Fabrics Expansion in Current Leveraging our Value Added Our Goals Presence Advantages Fabrics • Worsted • Stretch based • In-House Design • Newer Markets and • Wool Specialties Fabrics for suiting Studio for Fabric Geographies like Japan • Viscose and pants Des
Slide 10: Fabrics Division Growth Strategy
Fabrics Division Growth Strategy To enhance our profitability by improving product mix towards value added products and improving Improve utilizations along with new USA: Deepen penetrations product development with within brands with Margins performance attributes. special emphasis on women’s wear
Slide 11: Garmenting business – A customized offering
Garmenting business – A customized offering Focus on Moving up the value chain visible in the sales mix The influx of international garment brands into India 18.5% 19.4% 18.0% 19.9% has led to Indian brands adopting a more global approach and we at Garments Banswara are in a position to leverage our
Slide 12: Expansion within the Garments Space
Expansion within the Garments Space • Leveraging our existing manufacturing Potential partnerships targeting capabilities at Daman & Surat SEZ • Trousers & Suiting's– 3,45,000 (pcs/ month) • Leading fast fashion brands • Jackets & Waist Coats - 37,500 (pcs/ month) • Expertise in women’s-wear • Lever
Slide 13: Our Strategic Partnerships
Our Strategic Partnerships Partnership with European Partnership with Japanese Company Company • Marketing agreement with a 90 year old • Marketing agreement with a Japanese company European company, who, has been a major for value added product sales of Fabrics and supplier to the global Fast Fashi
Slide 14: Riding the Fast Fashion Wave
Riding the Fast Fashion Wave Requirements of Fast Our Capabilities Our Focus Areas Fashion It is fuelled by advances in Design houses in Paris as well as Maintain a high grade of quality technology, automation India to accurately forecast even at shortened lead times trends in the West and Asia. It
Slide 15: Synergies from Vertical Integration
Synergies from Vertical Integration Spinning Weaving & Processing Garmenting Polyviscose, Worsted Fabric, Garments / Made-Ups Cotton Fabric & Technical (Trousers, Jackets & Fabric Waist Coats) Polyviscose & Processing & Worsted Finishing into Spinning Fabric Spun Yarn for Fabric for Internal Use Int
Slide 16: Domestic Clientele
Domestic Clientele E-Commerce Clients: 16
Slide 17: International Clientele
International Clientele Working with some of the world’s biggest names 17
Slide 18: Why Banswara Syntex Limited?
Why Banswara Syntex Limited? Vertically integrated business Focus on Transition Export and Investment to Value Domestic Rationale Added Markets Products Consistently Lowering Debt 18
Slide 19: Leadership Team
Leadership Team 2 3 4 1 1 Mr. R L Toshniwal – Chairman 2 Mr Rakesh Mehra – Vice Chairman ▪ Masters degree in Textiles from Leeds University, UK ▪ Chartered Accountant from ICAI ▪ 54 years experience in Textile Industry ▪ 31 years experience in Textile Industry ▪ On the board of four other companies
Slide 20: Board of Directors
Board of Directors Mr. R. L Toshniwal Mr. Rakesh Mehra Mr. Ravindra Kumar Toshniwal Chairman Vice-Chairman Managing Director Mr. Shaleen Toshniwal Mr. Parduman Kumar Mr. J. M. Mehta Joint Managing Director Independent Director Independent Director Mr. D P Garg Mr. Kamal Kishore Kacholia Dr. S B Agar
Slide 21: Profit and Loss Highlights
Profit and Loss Highlights Rs. in Crs. Q3 FY18 Q3 FY17 YoY Q2 FY17 YoY 9M FY18 9M FY17 YoY Total Operating Income 341.7 304.4 12.3% 317.8 7.5% 965.3 926.0 4.2% Raw materials 165.5 137.1 138.1 443.8 434.9 Employee Expense 60.8 56.6 62.8 179.3 163.4 Manufacturing Expenses 30.2 26.0 30.3 90.7 80.2 Powe
Slide 22: Business Highlights
Business Highlights: • Export sales has reduced because of upward revision in sales prices after GST implementation and strengthening of Rupee against the USD • Profitability is better on QoQ basis due to increase in share of fabric & garment sales • On QoQ basis, Cost of Raw material has increase d
Slide 23: Balance Sheet
Balance Sheet* EQUITY AND LIABILITIES (Rs. In Crs) Sep-17 ASSETS (Rs. In Crs) Sep-17 Equity 263.1 Non-current assets 501.3 Equity share capital 17.1 Property, Plant & Equipment 468.7 other equity 246.0 Capital Work in progress 6.7 Non-current liabilities 237.3 Intangible assets 3.5 Financial Liabili
Slide 24: Revenue Performance
Revenue Performance* Segment Gross Revenue (Rs crs) Geographic Gross Revenue (Rs crs) 1,271 1,254 1,271 1,254 1,231 1,236 1,231 1,236 1,130 1,130 473 520 484 967 967 514 470 51% 54% 55% 47% 57% 326 57% 532 513 498 470 488 427 53% 49% 46% 45% 43% 43% 189 212 200 240 136 188 36 37 40 38 32 26 FY13 FY1
Slide 25: Improving Balance Sheet
Improving Balance Sheet Net Debt *(Rs. Crs) Net Debt:Equity -47 664 -76 3.1 617 -17 -16 2.8 541 524 508 2.2 2.0 1.9 Mar-14 Mar-15 Mar-16 Mar-17 H1FY18^ Mar-14 Mar-15 Mar-16 Mar-17 H1FY18^ *Net Debt includes Current Maturity of Debt ^ As per IND AS rest Indian GAAP 25
Slide 26: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Banswara Syntex Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Mr. J.K.Jain - CFO Mr. Rahul Agarwal / Mr. Shrikant Sangani jkjain@banswarasyntex.com rahul.agarwal@sgapl.ne