Nandan Denim Limited · NSE:NDL
Nandan Denim — H1 FY2015 Earnings Presentation
25 slides from Nandan Denim's earnings presentation, November 2014
Slide 1: Nandan Denim Limited Q2 & H1 FY15 Results Update
NANDAN DENIM LIMITED Q2 & H1 FY15 RESULTS UPDATE NOVEMBER 2014 India is favourably positioned to become a global denim fabric and apparel production hub driven by – - Abundant availability of cotton, low cost of production and competitive currency. - Favourable central and state government textile p
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation and the following discussion may contain “forward looking statements” by Nandan Denim Limited (Nandan Denim) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial c
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q2 & H1 FY15 Results Highlights 04 – 06 Q2 & H1 FY15 Financials & Summary Outlook 07 – 09 About Us 10 – 20 Appendix 23 – 26 3 Nandan Denim Limited
Slide 4: Q2 FY15 Results – YoY Analysis
Q2 FY15 RESULTS – YoY Analysis REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 15.6% 15.9% 4.3% 2,769 3.6% 2,290 440 120 357 20.9% 83 23.2% 44.8% Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 REVENUES MIX REVENUE MIX VOLUMES & REALISATIONS % Growth 267 % Growth 201 9.6% 123.1 126.9 11.6% 291 245
Slide 5: H1 FY15 Results – YoY Analysis
H1 FY15 RESULTS – YoY Analysis REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 15.9% 15.6% 4.1% 4.3% 5,406 4,341 843 234 692 178 24.5% 21.7% 31.9% H1 FY14 H1 FY15 H1 FY14 H1 FY15 H1 FY14 H1 FY15 REVENUES MIX REVENUE MIX VOLUMES & REALISATIONS % Growth % Growth 124.0 125.4 501 9.3% 104.7 15.1% 6.4%
Slide 6: Q2 & H1 FY15 Results Highlights
Q2 & H1 FY15 RESULTS HIGHLIGHTS Q2 FY15 revenues grew by 20.9% YoY and H1 revenues grew by 24.5% YoY driven by – Higher penetration in export markets as well as improved domestic operations. Higher denim volumes driven by expanded denim capacity and improved denim realisations. Incremental c
Slide 7: Q2 & H1 FY15 P&L Statement
Q2 & H1 FY15 P&L STATEMENT Particulars in Rs Mn Q2 FY15 Q2 FY14 YoY % Q1 FY15 QoQ % H1 FY15 H1 FY14 YoY % FY14 Sales from Operations 2,769 2,290 20.9% 2,637 5.0% 5,406 4,341 24.5% 8,703 Other Operating Income - - - - - - - - 234 Total Sales 2,769 2,290 20.9% 2,637 5.0% 5,406 4,341 24.5% 8,938 Cost o
Slide 8: Sep-14 Balance Sheet
SEP-14 BALANCE SHEET Particulars in Rs Mn FY14 Sep-14 Shareholders Funds 2,165 2,399 Long Term Debt (incl. CPLTD) 3,229 3,226 Short Term Debt 1,078 1,128 Total Debt 4,307 4,354 Other Long Term Liabilities 216 245 Sources of Funds 6,688 6,998 Fixed Assets 4,523 4,326 Other Non-Current Assets 165 143
Slide 9: Summary Outlook
SUMMARY OUTLOOK STRONG DOMESTIC AND GLOBAL DEMAND FOR DENIM APPARELS IMPROVING CAPACITY UTILISATION OF THE EXPANDED DENIM CAPACITY 10% - 15% GROWTH IN REVENUES EBITDA MARGIN IMPROVEMENT FROM 15% TO 19% DUE TO SPINNING CAPACITY EXPANSION HIGHER ROCE NET INTEREST COST OF 1% (SPINNING CAPACITY) AND 2%-
Slide 10: Chiripal Group – Emerging Conglomerate
ABOUT US: CHIRIPAL GROUP – EMERGING CONGLOMERATE Group Turnover Group EBITDA Group PAT Employee Strength Rs 28,955 mn Rs 3,207 mn Rs 825 mn 5,000 BUSINESS DIVISION GROUP COMPANIES DETAILS Nandan Denim Ltd. Chiripal Industries Ltd. Fully integrated facilities for manufacturing range of products viz
Slide 11: Company Overview
ABOUT US: COMPANY OVERVIEW Nandan Denim Limited is a part of a leading conglomerate, Chiripal Group, which was established in 1972 and is currently diversified across several businesses like Textiles, Petrochemicals, Chemicals, Packaging, Infrastructure and Education. STRONG PEDIGREE Nandan Deni
Slide 12: Integrated Denim Fabric Facility
ABOUT US: INTEGRATED DENIM FABRIC FACILITY FIBRE YARN FABRIC Ginned Cotton Spinning Weaving & Processing 70% of cotton requirement Ring Spinning – 44 TPD Denim – 110 * MMPA is met from Gujarat Open End Spinning – 20 TPD Shirting – 10 MMPA KEY HIGHLIGHTS One of the largest denim fabric facility in
Slide 13: Strategic Location of Manufacturing Facilities
ABOUT US: STRATEGIC LOCATION OF MANUFACTURING FACILTIES THE GUJARAT ADVANTAGE GUJARAT TEXTILE HUB OF INDIA SUPERIOR CONNECTIVITY Largest producer of denim fabric (65- Located in Ahmedabad, the financial 70%) in India and third largest in the capital of Gujarat. world. Superior infrastructure c
Slide 14: Leveraging the Chiripal Group Eco-System
ABOUT US: LEVERAGING THE CHIRIPAL GROUP ECO-SYSTEM LEVERAGE CHIRIPAL GROUP ECO-SYSTEM Chiripal Industries (Processing) Chiripal Industries Chiripal Polyfilms Vishal Fabrics Nandan Denim wovens, knitted, polar fleece, (Petrochemical) Thermal Films, Shirting, Synthetic, Botton Denim fabric, flock, hos
Slide 15: Superior Marketing & Distribution
ABOUT US: SUPERIOR MARKETING & DISTRIBUTION MARKETING & DISTRIBUTION – DOMESTIC MARKETS MARKETING & DISTRIBUTION – EXPORTS MARKETS Leveraging the strong agent-based domestic network Leveraging the strong agent-based global network of of the Chiripal group. the Chiripal group. Strong pan-India
Slide 16: Building Global Presence
ABOUT US: BUILDING GLOBAL PRESENCE TURKEY DUBAI INDIA GREECE CHINA PORTUGAL BANGLADESH USA MOROCCO THAILAND COSTA RICA EGYPT PHILIPPINES GAUTEMALA INDONESIA PANAMA SRILANKA AUSTRALIA LESOTHO PERU MADAGASCAR SOUTH AFRICA VENEZUELA Nandan Denim exports its denim fabric to over 22 countries across the
Slide 17: Global Acceptance from Leading Brands
ABOUT US: GLOBAL ACCEPTANCE FROM LEADING BRANDS DOMESTIC BRANDS GLOBAL DENIM FABRIC SUPPLIER TO MAJOR BRANDS AROUND THE WORLD GLOBAL BRANDS 17 Nandan Denim Limited
Slide 18: Capacity Expansion Plan
ABOUT US: CAPACITY EXPANSION PLAN FY13 FY14 – Phase I FY15-16 – Phase II Capacity Year End Additions Year End Additions Year End Spinning (TPD) Open End Spinning 38 6 44 40 84 Ring Spinning 16 4 20 20 40 Fabric (MMPA) Denim 71 39 110 * - 110 * Shirting - 10 10 - 10 CAPACITY EXPANSION: Capacity exp
Slide 19: Rationale for Capacity Expansion and Integration
RATIONALE FOR CAPACITY EXPANSION AND INTEGRATION Strong domestic demand backed by majority young population (78% < 45 years), rising disposable incomes and fashion consciousness and increasing organised retail industry STRONG penetration in Tier II and III cities. DOMESTIC Strong global demand a
Slide 20: Rationale for Capacity Expansion and Integration
RATIONALE FOR CAPACITY EXPANSION AND INTEGRATION Integrated facility will improve the overall operational flexibility, helping the company to absorb the increasing market demand. IMPROVED Faster delivery and timely execution due to limited dependency on external factors along the OPERATIONAL FLE
Slide 21: Annexure
ANNEXURE SSC HIRIPAL
Slide 22: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUES (RS MN) EBITDA (RS MN) PAT (RS MN) CAGR – 24.2% 8,938 CAGR – 23.2% 1,327 CAGR – 35.7% 7,031 1,069 393 5,738 826 5,074 311 679 3,758 576 173 188 116 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 MARGIN ANALYSIS (%) LEVERAGE ANALYSIS (R
Slide 23: Operational Summary
ABOUT US: OPERATIONAL SUMMARY DENIM FABRIC CAPACITY (MMPA) SPINNING CAPACITY (TPD) 83.8% 92.5% 92.5% 92.5% 94.4% 93.8% 79.8% 77.9% 78.1% 71.9% 110 64 54 71 40 40 40 50 57 42 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 Capacity Capacity Utilisation Capacity Capacity Utilisation DENIM REALISATIO
Slide 24: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars in Rs Mn FY10 FY11 FY12 FY13 FY14 Sales from Operations 3,699 4,941 5,622 6,819 8,703 Export Incentive 48 43 40 59 63 Other Operating Income 11 90 76 153 171 Total Sales 3,758 5,074 5,738 7,031 8,938 Growth (%) 18.2% 35.0% 13.1% 22.5% 27.1% Cost of Go
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars in Rs Mn FY10 FY11 FY12 FY13 FY14 Shareholders Funds 1,281 1,454 1,589 1,836 2,165 Long Term Debt (incl. CPLTD) 1,885 1,820 2,192 3,012 3,229 Short Term Debt 833 784 673 1,004 1,078 Total Debt 2,718 2,604 2,864 4,015 4,307 Other Long Term Liabilities 159 189 20