Rswm Ltd · NSE:RSWM
Rswm — Q2 FY2017-18 Earnings Presentation
46 slides from Rswm's earnings presentation, Nov 8, 2017
Slide 1: Cover letter to BSE
HOW Limited 0; an LNJ Bhilwara Group Company ; PROUD TO BE JNDIAN PRIVILEGED TO BE GLOBAL RSWM/ November 8, 2017 BSE Limited Corporate Relationship Department, Ist Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, MUMBAI - 400 001. Security Code: 500350 Security ID: RSWM Sub: Inv
Slide 2: Cover letter to NSE
HoVVIVi Limited an LNJ Bhilwara Group Company PROUD TO BE JNDIAN PRIVILEGED TO BE GLOBAL RSWM/ November 8, 2017 National Stock Exchange of India Limited Listing Department, Exchange Plaza, C-1, Block - G, Bandra-Kurla Complex, Bandra (East), MUMBAI - 400 051. Symbol: RSWM Sub: Investors presentation
Slide 3: Investors' Presentation Q2 FY 17-18
BOARD METING INVESTORS’ PRESENTATION Q2 FY 17-18
Slide 4: Business outlook
Business outlook
Slide 5: Current market scenario: domestic yarns
Current market scenario: domestic yarns Overall position of domestic market is sluggish since the last 4-5 months. GST implemented is still not completely absorbed by market specially by decentralized sectors. Liquidity crunch is faced by industry due to GST implication, as last chain of fabric supp
Slide 6: Outlook: domestic yarns
Outlook: domestic yarns With reduction in GST, some positive sentiments may build up & demand may improve in near future. However, since as on today almost all mills are carrying huge stock, thus there is price war expected among all spinner & will remain so till demand-supply equilibrium gets balan
Slide 7: Current market scenario: denim
Current market scenario: denim Due to implementation of GST, the traders are unable to cope up with the challenges and thus domestic distribution market has slowed down. After implementation of GST, exporting of fabric is not economical due to reduction of duty draw back from 5.5% to 1.7%. Parallel
Slide 8: Outlook Denim
Outlook Denim Denim market is under penetrated and per capita consumption of jeans is much lower, but the aspiration of non-metro population is increasing and expected to increase the consumption rapidly. It is expected that the duplicate brands, which were earlier abundantly available in Northern I
Slide 9: Current market scenario: MAYUR
Current market scenario: MAYUR In the previous quarter, we introduced a new premium sub brand `VERONA by MAYUR' to cater A-class retailers and has created a new benchmark in our supply basket for the over-the-counter business. In the Verona basket collections are TR, Poly-wool, Cationic amongst many
Slide 10: Key parameter indicators
Key parameter indicators
Slide 11: Labour shortage loss
Labour shortage loss, ₹ lacs 1H1617 1H1718 700 600 500 400 673 300 447 200 282 100 203 147 101 32 43 0 melange Bagalur yarn fabric/denim
Slide 12: Financials
Financials
Slide 13: Profitability
Profitability, ₹ cr 2q1718 2q1617 FY1617 2q1718 2q1617 FY1617 net revenue 686 746 2996 100% 100% 100% export 238 215 919 35% 29% 31% domestic 448 531 2077 65% 71% 69% production value 749 786 3084 % of production value less raw material 433 444 1750 less packing and selling 39 36 139 value addition
Slide 14: Balance sheet
Balance sheet, ₹ cr as of as of as of as of as of as of Sept17 Sept16 Mar17 Sept17 Sept16 Mar17 non-current assets 1344 1305 1319 non-current liabilities 626 570 600 net fixed assets* 1147 1138 1190 borrowings 526 456 497 investment 180 131 110 other financial liabilities 4 4 4 loans 1 2 2 deferred
Slide 15: Key ratios
Key ratios 1h1718 1h1617 FY16-17 balance sheet ratios asset cover ratio (fixed assets) excl CPTL 2.18 2.49 2.40 asset cover ratio (fa+inv) excl CPTL 2.52 2.78 2.62 LT debt eq ratio excl CPTL 0.80 0.75 0.78 LT debt eq ratio incl CPTL 1.07 1.18 1.17 DE ratio excl CPTL 1.95 1.73 1.73 DE ratio incl CPTL
Slide 16: Working capital
Working capital, ₹ cr as of as of as of as of as of as of Sept17 Sept16 Mar17 Sept17 Sept16 Mar17 i) inventory 518 400 541 total current liabilities 1107 1006 1157 raw material 124 116 266 sundry creditors 65 30 80 cotton 36 39 150 other liabilities and provisions 295 386 353 other than cotton 88 77
Slide 17: RSWM Limited
BOARD METING RSWM Limited An LNJ Bhilwara Group Company
Slide 18: Steps taken/planned
Steps taken/planned Changing product-mix by discarding less contributing products. Looking to the poor salability and lower contribution from commodity yarns, specially grey yarns, Company has decided to convert 43000 spindles of Kharigram unit and 53000 spindles of Rishabhdev unit from grey to
Slide 19: LNJ Bhilwara Group – At a glance
LNJ Bhilwara Group – At a glance
Slide 20: LNJ Bhilwara Group - Diversified presence across sectors
LNJ Bhilwara Group - Diversified presence across sectors Set up in 1961 by Mr. L.N.Jhunjhunwala, today LNJ Bhilwara Group has grown into a conglomerate with a strong global presence and turnover of over Rs.6000 Crore. Textiles Power RSWM Ltd. Bhilwara Energy Limited Maral Overseas Malana Power C
Slide 21: LNJ Bhilwara Group - Diversified Presence
LNJ Bhilwara Group - Diversified Presence 5 Group companies listed on the Stock Exchanges. Over 1,000,000 stake holders in the Group. Production units & Corporate office spread across the country at 38 locations All key companies ISO certified Over 28,000 strong workforce.
Slide 22: RSWM – At a glance
RSWM – At a glance
Slide 23: RSWM – Overview
RSWM – Overview Flagship company of LNJ Bhilwara Group Established in 1961 One of the largest textile manufacturers of Synthetic, Blended, Mélange, Cotton, Specialty and Value added yarns. Also manufacturing Fabrics, Denim and Green Polyester Fiber. Exports to over 70 countries ‘Golden Tra
Slide 24: Installed Capacity
RSWM – Overview Installed Capacity 18000 MTs p.a. Green Polyester Fiber manufacturing capacity 504704 Spindles and 4800 Rotors Spinning 116 Looms for PV Fabric, 21.6 million meter p.a. Fabric Processing 24 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Facility (Spinning+We
Slide 25: RSWM - Journey
RSWM - Journey 1961 - Established with a spinning unit at Bhilwara. 1973 - Second plant commissioned at Gulabpura. Later, Bhilwara plant was spun off as independent Company (Bhilwara Spinners Ltd.) 1989 - Established grey yarn spinning unit at Banswara. 1994 - Established Melange Yarn manufa
Slide 26: RSWM - Journey
RSWM - Journey 2011 – 2012 Executed another expansion plan with capital outlay of Rs. 400 Crore. Expanded capacity at Kharigram (SJ-11), Banswara (Rotors), Denim (Spinning), Mordi (50 Looms). 2014 - Established a Green Fiber manufacturing unit at Reengus with capacity of 18000 MTs p.a. 2014 -
Slide 27: Certifications
Certifications ISO 9001:2008 : Quality System Certification ISO EMS - 14001:2004 : Environment Management Certification OHSAS - 18001: 2007, SA- 8000:2008 (certified by BSI) : Social Accountability Oeko-Tex-100 (certified by Hoihenstein) : Human Ecological Certification GOTS : Global Org
Slide 28: Product Portfolio
Product Portfolio Synthetic Yarns – Grey/Dyed PV Blended, Poly 100%, Visc. 100%, Poly/Visc/Cotton Blended Specialty Yarns from unorthodox fibres like Bamboo, Bamboo-charcoal, Flex, Lycra, Tencel, Trevira CS, Birla Modal, Protex, X-static, Beltron, Huvis FR polyester etc. Melange Yarns - High value c
Slide 29: Manufacturing Units
Manufacturing Units 1. Spinning Unit - Kharigram, P.O. Gulabpura, Dist. Bhilwara, Rajasthan 2. Spinning Unit - Village Lodha, Banswara, Rajasthan 3. Spinning Unit - Rishabhdev, Dist. Udaipur, Rajasthan 4. Spinning Unit - Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan 5. Green Fibre
Slide 30: Segment-wise Turnover
Segment-wiseTurnover Segment-wiseTurnover Qty – Yarn: Lac Kg. Fabric/Denim Lac Mtr. Amt. - Rs. in Crore 2012-13 2013-14 2014-15 2015-16 2016-17 Segment Qty Amt Qty Amt Qty Amt Qty Amt Qty Amt Yarn 1145 2051 1264 2422 1345 2564 1392 2497 1420 2513 Denim 146 238 143 250 157 286 163 297 191 324 Fabric
Slide 31: Sustainable growth: Turnover
Sustainable growth Sustainable growth Rs. in Crore Turnover 3500 2884 3014 2945 2996 3000 2471 21.25% 2500 2000 1500 1000 500 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 32: Sustainable growth: EBIDTA
Sustainable growth… Sustainable growth …… EBIDTA Rs. in Crore 389 26.88% 420 450 377 358 400 331 8.06% 350 300 250 200 150 100 50 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 33: Sustainable growth: PAT
Sustainable growth…. Sustainable growth …. PAT Rs. in Crore 120 99 107 101 100 85 48.77% 80 68 60 40 20 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 34: Enhancing value for stakeholders
Enhancing value for stakeholders Enhancing value for stakeholders EPS Rs. Dividend Payout Rs. in Crore 46 43 29 29 29 50 43 37 30 40 23 1 23 1 1 29 25 30 20 100% 125% 1 1100% 125% 125% 20 15 47.78% 10 10 0 5 0
Slide 35: Continuous Investments for growth
Continuous Investments for growth Continuous Investments for growth Gross Block Rs. in Cr. 3000 2482 2618 2370 2500 1820 1894 43.85% 2000 1500 1000 500 0 31/03/13 31/03/14 31/03/15 31/03/16 31-03-17
Slide 36: Increasing Worth
Increasing Worth Increasing Worth Networth Rs. in Cr. 700 633 600 552 445 92% 500 395 400 329 300 200 100 0 31/03/13 31/03/14 31/03/15 31/03/16 31/03/17
Slide 37: Comfortable Debt/Equity and Interest Coverage
Comfortable Debt/Equity and Interest Coverage Comfortable Debt/Equity and Interest Coverage Debt Equity Ratio Interest Coverage 4.00 3.59 3.50 3.19 3.01 3.36 3.24 3.50 2.69 2.51 3.00 2.73 3.00 2.15 2.50 1.93 2.50 2.00 2.00 1.50 1.00 1.50 0.50 1.00 0.00 0.50 0.00
Slide 38: Textile Industry – Overview
Textile Industry – Overview
Slide 39: Textile Industry - Overview
Textile Industry - Overview 2nd Largest Employer in India. Employs around 40 Mn workforce directly and 40 Mn. 14% Contribution to Industrial Production of country. Indirectly 4% Contribution to India’s GDP 16% Contribution to Exports Earnings 22% of World Highest # looms in World’s # 1 World’s # 2 W
Slide 40: Raw Material Price Trend (Rs./Kg)
Raw Material Price Trend (Rs./Kg) Raw Material Price Trend (Rs./Kg) Period Cotton Polyster Viscose 180 Mar.14 122 94 136 160 154 154 154 136 136 137 137 137 141 141 141 141 144 Jun.14 123 100 136 140 134 125 Sep.14 115 98 137 122 123 115 117 113 120 Dec.14 97 83 137 97 100 99 95 100 90 92 Mar.15 90
Slide 41: Textile Industry – Future Prospect
Textile Industry – Future Prospect Textile Industry – Future Prospect Huge possibilities in domestic market. Increasing disposable income and increasing e-commerce. Per capita fibre consumption in India is 8Kg as against 18 kg of China and world avg. of 12 kg. Fast growing hotel, hospital and edu
Slide 42: Textile Industry – Challenges
Textile Industry – Challenges Textile Industry – Challenges • Technology up-gradation of weaving. • Capacity building in processing sector. • Spending on R & D and product development. • Competition from China, Pakistan, Bangladesh and Srilanka. • Squeezing lead time and fast changing fashion trends
Slide 43: RSWM – Mitigating Challenges
RSWM – Mitigating Challenges RSWM – Mitigating Challenges Invested around Rs.1500 Cr under TUFS and Rs.400 Cr Non-TUFS in last 11 years Added 2.2 lac Spindles, 2400 Rotors, 64 Looms, 24 million meter p.a. capacity Denim unit, 46MW CPP, Yarn/Fibre Dyeing and Green Fibre Manufacturing unit Also
Slide 44: Corporate Governance
Corporate Governance Corporate Governance • RSWM recognises Corporate Governance not as a set of rules but as a framework supporting the core values. • Good Governance helps us to maintain trust with the shareholders, stakeholders, employees and society at large • RSWM believes that good governance
Slide 45: Corporate Information
Corporate Information Corporate Information Corporate Key Managerial Persons Office, Noida Mr. Riju Jhunjhunwala- Managing Director & CEO Mr. B. M. Sharma- Chief Financial Officer Mr. Surender Gupta- Company Secretary Business Heads and Key Executives Mr. Prakash Maheshwari- Chief Executive (Corpora
Slide 46: Disclaimer
DISCLAIMER This presentation is the property of RSWM Limited (the “Company”) and is strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that: (i) this document is not intended to be