Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — Q3 FY2019 Earnings Presentation
25 slides from Banswara Syntex's earnings presentation, Feb 13, 2019
Slide 1: Banswara Syntex Limited Presentation – February 2019
BANSWARA SYNTEX LIMITED Presentation – February 2019 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: 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 4: 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 1993 Worsted spinning, • Started p
Slide 5: Presence across the Value Chain
Presence across the Value Chain Garments Fabric Yarn 5
Slide 6: Manufacturing Capabilities
Manufacturing Capabilities Spinning Unit Weaving Unit Dyeing Unit Garmenting Unit Invested over Rs. 549 crores towards expansion and modernisation between FY 2010 – March 2018 • Spinning Rs.263 Crs • Garmenting Rs.51 Crs • Fabric Rs.185 Crs • Power Unit Rs.50 Crs 6
Slide 7: 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 8: 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 9: 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 10: 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 19.4% 20.2% 19.9% 20.1% has led to Indian brands adopting a more global approach and we at Garments Banswara are in a position to leverage our
Slide 11: 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 – 3,28,125 (pcs/ month) • Leading fast fashion brands • Jackets & Waist Coats - 81,250 (pcs/ month) • Expertise in women’s-wear • Leve
Slide 12: Our Strategic Partnerships
Our Strategic Partnerships Partnership with Japanese Company • Marketing agreement with a Japanese company for value added product sales of Fabrics and Garments in Far east market including Japan • Enable us to leverage on design and technical know how’s of the Japanese company to develop products f
Slide 13: 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 14: 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 15: Domestic Clientele
Domestic Clientele E-Commerce Clients: 15
Slide 16: International Clientele
International Clientele Working with some of the world’s biggest names 16
Slide 17: 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 17
Slide 18: 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 ▪ Held the positions of Chairman of RTM
Slide 19: 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 20: Standalone Profit and Loss Highlights
Standalone Profit and Loss Highlights Rs. in Crs. Q3 FY19 Q3 FY18 9M FY19 9M FY18 FY18 Net Operating Income 344.3 341.7 1,022.6 965.3 1,293.0 Raw materials 179.7 165.5 518.8 443.8 622.6 Employee Expense 61.8 60.8 178.1 179.3 235.8 Manufacturing Expenses 30.8 30.2 86.7 90.7 111.8 Power & Fuel 33.8 32
Slide 21: Business Highlights
Business Highlights: • For the 9MFY19, the yarn and garment production has marginally increased whereas fabric production has decline by 20% on YoY basis due to paucity of orders. Muted sales in fabric has impacted Q3 profitability • Q3FY19 Raw material prices are higher on YoY basis mainly due to i
Slide 22: Standalone Balance Sheet
Standalone Balance Sheet Asset (Rs. in Crores) Sept-18 Mar-18 Equity & Liabilities (Rs. in Crores) Sept-18 Mar-18 Non-current assets 459.5 483.5 Equity 280.02 270.1 Property, Plant & Equipment 435.2 455.0 Equity share capital 17.1 17.1 Capital Work in progress 1.1 5.4 other equity 262.9 253.0 Intang
Slide 23: Revenue Performance
Revenue Performance* Segment Gross Revenue (Rs Crs) Geographic Gross Revenue (Rs Crs) 1,271 1,295 1,271 1,295 1,231 1,236 1,254 1,231 1,236 1,254 1,130 1,130 422 1,023 1,023 473 520 484 514 51% 54% 55% 56% 470 47% 57% 409 57% 584 532 513 498 470 488 382 53% 49% 46% 45% 44% 43% 43% 189 212 200 240 25
Slide 24: Improving Balance Sheet
Improving Balance Sheet Net Debt *(Rs. Crs) Net Debt:Equity -47 664 -64 3.1 617 -16 -21 -51 2.8 553 537 516 465 2.2 2.1 1.9 1.7 FY14 FY15 FY16 FY17^ FY18^ 9MFY19^ FY14 FY15 FY16 FY17^ FY18^ 9MFY19^ *Net Debt includes Current Maturity of Debt ^ As per IND AS rest as per Indian GAAP 24
Slide 25: 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 – Joint President & CFO Mr. Rahul Agarwal / Mr. Shrikant Sangani jkjain@banswarasyntex.com rahu