Sutlej Textiles & Industries Ltd. · NSE:SUTLEJTEX
Sutlej Textiles & Industries — Q4 FY2015 Earnings Presentation
33 slides from Sutlej Textiles & Industries's earnings presentation, May 7, 2015
Slide 1: Sutlej Textiles and Industries Ltd Q4 & FY2015 Results Presentation
SUTLEJ TEXTILES AND INDUSTRIES LTD Q4 & FY2015 Results Presentation - 7th May 2015
Slide 2: Disclaimer
2 Disclaimer 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 develop
Slide 3: Index
3 Index FY15 – Key Highlights 04 Q4 & FY15 – Performance Update 09 Company Overview 16 Business Outlook 29 About Us 33
Slide 4: FY15 – Key Highlights
« SUE) FY15 — KEY HIGHLIGHTS
Slide 5: Key Highlights - FY15
5 Key Highlights - FY15 New capacities of Brownfield project – 31,104 spindles Addition of 31,104 Sutlej Textiles producing Value Scaling up Home spindles producing Textiles Division acquires Birla Added Cotton Value Added Cotton Textile Mills Mélange and Cotton Mélange and Cotton Blended Dyed Yarn
Slide 6: Key Highlights – FY15: Acquisition of Birla Textile Mills
6 Key Highlights – FY15 Ω Board of Directors approved the purchase of Birla Textile Mills (BTM) as a going concern on a slump sale basis Ω BTM, a unit of Chambal Fertilisers and Chemicals Ltd, is located at Baddi, Himachal Pradesh Ω The consideration for purchase of BTM works out to Rs 232.63 crore
Slide 7: Key Highlights – FY15: Capacity Expansion
7 Key Highlights – FY15 Ω The Company’s Board of Director has approved brownfield capacity expansion of 31,104 spindles at its Bhawani Mandi, Rajasthan facility Brownfield project - capacity expansion of Ω Incremental capacity would be dedicated towards producing Value Added Cotton Mélange and Cotto
Slide 8: Key Highlights – FY15
8 Key Highlights – FY15 Ω Invested around Rs. 58 crore during FY15, towards technology up-gradation and Modernization Update debottlenecking, etc. this will result in further improvement of efficiencies and plant utilization. It intends to make further investment of Rs. 53 crore towards the same Ω T
Slide 9: Q4 & FY15 – Performance Update
9 Q4 & FY15 – PERFORMANCE UPDATE
Slide 10: Results Snapshot – Q4 & FY15
10 Results Snapshot – Q4 & FY15 % Change % Change INR crore Q4 FY15 Q4 FY14 FY15 FY14 w.r.t Q4 FY14 w.r.t FY14 Revenue 468 482 (2.9) 1,878 1,881 (0.2) EBITDA 68 70 (2.9) 272 306 (11.1) EBITDA Margin (%) 14.5 14.5 - 14.5 16.3 (180 bps) EBIT 47 46 2.2 202 230 (12.2) EBIT Margin(%) 10.0 9.5 +50 bps 10.
Slide 11: Financial Performance – FY15
11 Financial Performance – FY15 Revenue EBITDA PAT 1,881 1,878 131 Figs in crore Figs in crore Figs in crore 306 115 272 FY14 FY15 FY14 FY15 FY14 FY15 Ω Stable revenue for the year despite higher production, as presence of headwinds such as sharp decline in raw material prices especially cotton & po
Slide 12: Financial Performance – Q4 FY15
12 Financial Performance – Q4 FY15 Revenue EBITDA PAT 27 Figs in crore Figs in crore Figs in crore 482 468 70 68 21 Q4 FY14 Q4 FY15 Q4 FY14 Q4 FY15 Q4 FY14 Q4 FY15 Ω Revenue performance remained mixed during the quarter, with benefits from commissioning higher proportion of Cotton Mélange getting ne
Slide 13: Segment-wise Performance – Q4 & FY15
13 Segment-wise Performance – Q4 & FY15 Yarns Ω Q4 FY15 PBIT stood at Rs. 48 crore as against Rs. 49 crore in Q4 FY14 and 1,789 1,784 Rs. 193 crore during FY15 as against Rs. 217 crore in FY14. Ω During FY15, the Company produced 74,983 MT as against 71,542 MT during last year. 459 449 217 193 49 48
Slide 14: Chairman's Comments
14 CHAIRMAN’S COMMENTS Commenting on the results, Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd said, “The Financial Year 2015 has been a challenging year for the textile industry across the globe. Margins were under pressure due to lackluster demand and the sharp fall in the prices
Slide 15: Capital Expenditure & Capacities
15 Capital Expenditure & Capacities FY14 Capex Acquisition Total Capex By end FY17 Cotton Mélange ~Rs. 151 crore (65,000) (31,104) 96,104 Chenab (No. of Spindles) Textile Mills Man-made Fibre (107,200) 107,200 Yarn Rajasthan Cotton and ~Rs. 235 crore Textile Man-made Fibre 90,432 (31,104) 121,536 Mi
Slide 16: Company Overview
« SUULE) COMPANY OVERVIEW
Slide 17: At a Glance
17 At a Glance Spun Dyed Yarn Manufacturer Total Capacity Cotton Mélange Yarn Total Capacity (Spindles) (Spindles) (Looms) Credit Rating (CARE / India Ratings, A Fitch Group Co.) Last 5 years Last 5 Years Last 5 Years Last 5 Years Revenue Growth EBITDA Growth PAT Growth EPS Growth “Delivering robust
Slide 18: Company Overview
18 Company Overview Sutlej Textiles and Industries Ltd (STIL) is India’s largest Spun Dyed Yarn manufacturer and leading player in Value added / Specialty yarns Page Industries Marquee Clients Manufacturing Snapshot Domestic and Global Presence Product Mix Ω Manufacturing units (3) – Jammu & Ω Marqu
Slide 19: Competitive Edge Over Most Other Spinning Mills
19 Competitive Edge Over Most Other Spinning Mills Ω One stop shop for all types of spun dyed yarns – 100% or blends in Synthetic or natural / Count range: from 6 s to 60 s / Colour: grey, mélange or Dyed in all shade / Fold: simple, Double or multifold Ω Largest manufacturer of Value Added Dyed Syn
Slide 20: Competitive Edge Over Most Other Spinning Mills
20 Competitive Edge Over Most Other Spinning Mills Ω Scaling up presence in Home Textile business, by Ω Delivering consistent & robust returns – reported one of expanding capacities to 9.6 million metres p.a. the healthiest Return Ratios in the industry. ROCE and Increased presence in Home Textile s
Slide 21: Operating Levers
21 Operating Levers Multiple Raw Material inputs – efficiently manage input volatility Sourcing Innovative R&D in sourcing Raw Materials – Focused approach to increase the breadth of Raw Material raw material sources to lower dependency risk Efficiencies Procurement management – sourcing from repute
Slide 22: Key Growth Drivers
22 Key Growth Drivers Value Added Products Strong Balance-sheet Highly automated Production line Sharpened focus on Home Textile Division Higher proportion of Cotton Mélange and Strong & continuous R&D Cotton Blended Dyed Yarn Optimum & efficient resource utilization Strategically located Mfg. facil
Slide 23: Recap
23 Recap India’s largest spun dyed yarn manufacturer – “one stop shop for all types of dyed yarns” Broad & Diversified Product mix Strengthening presence in fast growing categories State of the art manufacturing facilities Strong Balance Sheet Extensive Domestic and Global Marketing & Distribution P
Slide 24: Financial Performance - Snapshot
24 Financial Performance - Snapshot Revenue EBITDA Margin 1,881 1,878 17% 1,582 1,680 400 16% 20% Figs in crore Figs in crore 1,537 14% 14% 300 12% 15% 200 10% 100 5% 275 178 234 306 272 0 0% 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 PAT Margin EPS* 150 7% 7% 8%
Slide 25: Key Financial Highlights
25 Key Financial Highlights ROE (%) ROCE (%) D/E ratio Total D/E ratio 46 3.2 26 28 2.6 28 23 23 1.9 22 21 18 1.4 12 1.1 1.9 1.5 0.6 0.6 1.0 2010-11 2011-12 2012-13 2013-14 2014-15 2014-15 2012-13 2010-11 2011-12 2012-13 2013-14 2010-11 2011-12 2013-14 2014-15 Delivering maximum returns at minimal r
Slide 26: Yarns Operational Performance
26 Operational Performance Sales (MT) 78,124 76,334 79,666 80,040 72,346 2010-11 2011-12 2012-13 2013-14 2014-15 Avg. Yarn realisation (Rs/Kg) Yarns 207 222 219 186 200 2010-11 2011-12 2012-13 2013-14 2014-15 Sales (Rs. crore) 1,581 1,768 1,754 1,455 1,447 2010-11 2011-12 2012-13 2013-14 2014-15
Slide 27: Key Financial Highlights
27 Key Financial Highlights INR Million USD Million Particulars FY13 FY14 FY15 FY13 FY14 FY15 Revenues 16,802 18,806 18,782 317 330 308 EBITDA 2,343 3,056 2,718 44 54 45 EBITDA Margin % 14% 16% 14% 14% 16% 14% PBT 928 1,717 1,482 18 30 24 PBT Margin % 6% 9% 8% 6% 9% 8% PAT 770 1,314 1,155 15 23 19 P
Slide 28: Business Outlook
» SUIC! BUSINESS OUTLOOK
Slide 29: Indian Textile Sector - Present
29 Indian Textile Sector - Present current size of Indian Textile Sector largest employment generator and employs 45 million people Million spindles capacity across ~1300 mills share of the country’s total exports basket in 2013-14 Contribution to India’s total industrial production Contribution to
Slide 30: Indian Textile Sector - Potential
30 Indian Textile Sector - Potential Domestic textile & apparel industry ($ bn) Textile & apparel exports ($ bn) Total Fibre Production (Mn Kg) 141 82 58 9.886 31 6.585 2011 2021P 2011 2021P FY13 FY17P Source: Ministry of Textiles, Planning Commission, Technopak, Aranca Research Manifold The sector
Slide 31: Business Outlook
31 Business Outlook Greater production of high margin value added products post the 1 completion of capacity expansion plan to result in greater proportion of Cotton Mélange and Cotton Blended Dyed Yarn product in the overall mix Acquisition of Birla Textile Mills to offer scale and size, besides sy
Slide 32: About Us
32 About Us Sutlej Textiles and Industries Ltd (STIL): CIN: L17124RJ2005PLC020927 Sutlej Textiles and Industries Ltd (STIL), an ISO 9001:2008 certified Company, is one of India’s largest spun dyed yarn manufacturer. Under the leadership of Mr. CS Nopany, Chairman of STIL, a Chartered Accountant and
Slide 33: Thank You
THANK YOU
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