Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q3 FY16 Earnings Presentation
35 slides from Sutlej Textiles & Industries's earnings presentation, 2016
Slide 1: Results Presentation Q3 FY16
Results Presentation Q3 FY16
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements which are based on some assumptions and expectations of future events. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, domestic or international economic developm
Slide 3: Agenda
Agenda 1 Q3 & 9M FY16 – Key Business Update 2 Q3 & 9M FY16 – Financial Highlights 3 Corporate Overview 4 Competitive Advantages 5 Annual Financial Highlights 6 Business Outlook 3
Slide 4: Q3 & 9M FY16 – Key Business Update
Q3 & 9M FY16 – Key Business Update 4
Slide 5: Key Business Update
Key Business Update Enhanced Spinning Capacity through Acquisition of Birla Textile Mills Acquisition of Birla Textile Mills (BTM) has been concluded on September 30, 2015 on receiving statutory approvals and payment of Rs. 213.54 crore i.e. Rs. 232.63 crore less term loans of Rs. 19.09 crore from
Slide 6: Key Business Update
Key Business Update Home Textiles Division Expansion on track Placed order for 20 Nos. single width looms and 20 Nos. Jaquard attachment; also placed orders for 4 No. Electronic Chenille machines, 1 No. Multi chamber stenter forming part of the expansion project – deliveries expected in May-June 2
Slide 7: Key Business Update
Key Business Update Credit Rating upgrades during the Year CARE upgrades STIL rating to CARE AA- from CARE A+ signifying high degree of safety and CARE A1+ (A One Plus) for short term bank facilities India Ratings and Research Private Limited (FITCH Group) upgrades STIL to “IND AA-”; Outlook Sta
Slide 8: Q3 & 9M FY16 - Financial highlights
Q3 & 9M FY16 - Financial highlights 8
Slide 9: Delivering Consistent Profitability
Delivering Consistent Profitability Rs. In Cr Q3 FY16 * Q3 FY15 YoY % 9M FY16* 9M FY15 YoY % Total income 559 468 19.3% 1,744 1,440 21.1% Raw Material including increase/ 320 274 1,017 863 decrease in stocks & goods purchased Employee Cost 60 44 175 129 Other Expenses 103 83 318 244 EBITDA 76 67 13.
Slide 10: Registering strong growth in Yarn Business
Registering strong growth in Yarn Business Sales (MT) Revenue (Rs. Cr.) 1,652 79,329 1,335 58,605 25,880 19,557 527 436 Q3 FY15 Q3 FY16 9M FY15 9M FY16 Q3 FY15 Q3 FY16 9M FY15 9M FY16 EBIT (Rs. Cr.) Revenue at Rs. 527 crore for Q3FY16 improved as against Rs. 436 crore for the corresponding quarter
Slide 11: Chairman’s Comments
Chairman’s Comments Mr. C. S. Nopany, Chairman The global economic environment has been challenging with falling commodity prices and slowdown in world economy. Furthermore, a sluggish domestic rural economy has further aggravated the situation resulting in poor overall demand. Despite these challen
Slide 12: Corporate overview
Corporate overview 12
Slide 13: Company Overview
Company Overview India’s largest Spun-dyed Yarn manufacturer and leading textile player with presence across value chain – from Yarn to Home Textile o Increasing capacity of high margin Value-Added Products - Cotton Mélange Yarn & Cotton Blended Dyed Yarn State-of-the-art manufacturing facilitie
Slide 14: Journey from Spun-dyed yarn manufacturer to …
Journey from Spun-dyed yarn manufacturer to … Incorporated as a result of Corporate Restructuring in Expansion at Bhawanimandi which Textile Division of unit by 7,488 spindles to 31,104 spindles added at Sutlej Industries Limited manufacture PV Dyed Yarn Chenab Textile Mills - J&K and Damanganga Pro
Slide 15: Corporate Governance at the Helm
Corporate Governance at the Helm Board of Directors Mr. C.S. Nopany Executive Chairman Mr. U.K. Khaitan Independent Non Exec Director Mr. Amit Dalal Independent Non Exec Director Mr. Rajan Dalal Independent Non Exec Director Ms. Sonu Bhasin Independent Non Exec Director Mr. Rajiv K. Podar Independen
Slide 16: Competitive Advantages
Competitive Advantages 16
Slide 17: Competitive Advantages
Competitive Advantages Yarn – Consistent capacity addition over years 1 2 Home Textile… doubling capacity by FY17 3 State of the art manufacturing facilities 4 Wide Distribution Network and Marquee Clientele 5 Diverse and Wide Product Portfolio 17
Slide 18: Yarn - Consistent capacity addition over the years
Yarn - Consistent capacity addition over the years No. of Spindles 412,392 Invested in modernization 377,112 - 56% of spindle age are less than a decade old 293,736 Increasing share of Value- 261,736 253,000 added product portfolio 208,104 o Cotton Mélange Yarn 155,456 o Dyed Synthetic Yarn La
Slide 19: Home Textile… Doubling capacity by FY17
Home Textile… Doubling capacity by FY17 Million meters per annum (mmpa) 9.6 Entered the Home Textiles segment in 2006-07 Capacity to expand by 4.6 mmpa to 9.6 mmpa by FY17 Product range includes 5.0 o Furnishing Fabrics o Curtain Fabrics 2.5 2.0 o Upholstery Fabrics o Bedcovers and Bedspreads
Slide 20: State-of-the-art Manufacturing facilities…
State-of-the-art Manufacturing facilities… Chenab Rajasthan Birla Damanganga Textile Mills Textile Mills Textile Mills Home Textile Kathua, Bhawanimandi, Baddi, Daheli, Location Jammu & Kashmir Rajasthan Himachal Pradesh Gujarat Cotton Mélange Yarns Cotton Yarns Cotton Yarns Home textiles Pr
Slide 21: Wide distribution network and marquee clientele
Wide distribution network and marquee clientele Presence and strong brand image across globe in over Evolved as vendor to… 60 countries… Expanded global foot print to 10 new location in FY15… …partner to a comprehensive …De-risk over dependence on few geography textile solution provider 21
Slide 22: Diverse and Wide Product Portfolio
Diverse and Wide Product Portfolio Cotton blended mélange yarn One stop shop for all kinds of spun dyed yarns Focus on value added yarns that fetched superior realisations like Cotton Mélange Yarn, Dyed Synthetic Yarn Diversified offerings with presence across value chain with – Yarns & Home T
Slide 23: Annual Financial Highlights
Annual Financial Highlights 23
Slide 24: Stable Revenue Growth…
Stable Revenue Growth… Total Revenue... Segment break-up Rs. Cr. 1,920 1,918 1,718 1,569 Yarn 95% Home Textile 5% FY12 FY13 FY14 FY15 24
Slide 25: … with consistent track record of profitability…
… with consistent track record of profitability… EBITDA & EBITDA margin (%) Net Profit & Net margin (%) 11% 14% 16% 14% 2% 4% 7% 6% Rs. Cr. Rs. Cr. 131 306 272 115 234 77 178 32 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Increasing share of Value Added Products in Portfolio likely to help margin improv
Slide 26: … healthier return ratios in the industry
… healthier return ratios in the industry Return on Equity (RoE) Return on Capital Employed (RoCE) 28% 28% 23% 23% 22% 21% 18% 12% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 RoE = Profit After Tax/Networth RoCE = EBITDA/Capital Employed (Networth + Debt) Consistently generating over 20% Return 26
Slide 27: Yarn – Operational Performance
Yarn – Operational Performance Sales (MT) Revenue (Rs. Cr.) 80,040 1,768 1,754 79,666 1,581 1,447 76,334 72,346 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Average Sales Realisation (Rs./ Kg) 222 219 207 200 FY12 FY13 FY14 FY15 27
Slide 28: Key Ratios
Key Ratios EPS* (Rs) Total Debt/Equity Ratio (x) 80 2.56 70 1.82 47 1.31 1.07 19 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 * Adjusted figures post incorporating bonus effects (Company allotted Bonus shares in the ratio of 1:2 during June 2013) Gross Block (Rs. Cr.) Avg. Interest Rate of Term Loans (%)
Slide 29: Key Financial highlights
Key Financial highlights Rs. Crs. USD mn Particulars FY13 FY14 FY15 FY13 FY14 FY15 Total Revenues 1,718 1,920 1,918 324 337 315 EBITDA 234 306 272 44 54 45 EBITDA Margin % 14% 16% 14% 14% 16% 14% PAT 77 131 115 15 23 19 PAT Margin % 4% 7% 6% 4% 7% 6% Total Assets 1,149 1,273 1,341 217 223 220 Net Wo
Slide 30: Business Outlook
Business Outlook 30
Slide 31: Business Outlook
Business Outlook Niche Value Added Products 01 Consistent production of high margin value added products to result in greater proportion of Cotton Mélange and Cotton Blended Dyed Yarn in the overall mix Growing Core Business 02 Acquisition of BTM & enhancing spindles capacities towards manufacturing
Slide 32: Indian Textile Sector - Present
Indian Textile Sector - Present $108 Indian Textile sector current size Billion 2nd Largest employment generator, Employs 45 mn people directly 49 Million spindles capacity across ~1,300 mills 13% Share in country’s export earnings 14% Contribution to India’s industrial production 4% Contribution to
Slide 33: Indian Textile Sector - Potential
Indian Textile Sector - Potential Domestic textile & apparel industry Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) ($ bn) 141 82 9.886 58 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Robust Demand Mkt Value
Slide 34: About Us
About Us Sutlej Textiles and Industries Ltd (STIL) (part of S&P BSE SMALL CAP Index), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. C S Nopany, Chairman of STIL, a Chartered Accountant and Master of Science in Industrial Admini
Slide 35: Thank You
Ae SUC) THANK YOU
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