Rswm Ltd · NSE:RSWM
Rswm — FY2017 Earnings Presentation
42 slides from Rswm's earnings presentation, Mar 31, 2017
Slide 1: An LNJ Bhilwara Group Company
An LNJ Bhilwara Group Company
Slide 2: 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
Slide 3: LNJ Bhilwara Group - Diversified Presence
LNJ Bhilwara Group - Diversified Presence ➢ 6 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 4: 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 5: RSWM – Overview
RSWM – Overview Installed Capacity ➢ 18000 MTs p.a. Green Polyester Fiber manufacturing capacity ➢ 494072 Spindles and 4080 Rotors Spinning ➢ 154 Looms for PV Fabric, 21.6 million meter p.a. Fabric Processing ➢ 20 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Facility (Spinning+We
Slide 6: 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 7: 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 8: 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 9: 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 10: 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 11: Kharigram Unit
Kharigram Unit Installed Capacity : 167792 Spindles Product : Blended synthetic grey/dyed yarns (p/v yarn, 100% viscose, 100% polyester, acrylic), Slub Yarn, Core-spun, Compact yarn Production : 52000 MTs p.a.
Slide 12: Banswara Unit
Banswara Unit Installed Capacity : 95376 Spindles and 3120 Rotors Product : Blended synthetic & cotton grey yarns (p/v yarn, p/c yarn, 100% viscose, 100% polyester) Slub, Compact, Core-spun yarn Production : 36500 MTs p.a.
Slide 13: Rishabhdev Unit
Rishabhdev Unit Installed Capacity : 52848 Spindles Product : Blended synthetic grey yarns (p/v yarn, 100% viscose, 100% polyester) Production : 18500 MTs p.a.
Slide 14: Reengus Unit
Reengus Unit Installed Capacity : 27840 Spindles Product : Blended synthetic grey/dyed yarns (p/v yarn, 100% viscose, 100% polyester, acrylic), Slub Yarn, Core-spun, Compact yarn Production : 10000 MTs p.a.
Slide 15: Green Fibre Unit
Green Fibre Unit Installed Capacity : 18500 MTs p.a. Product : Recycled Polyester Fibre Production : 18100 MTs p.a.
Slide 16: Mandpam Unit
Mandpam Unit Installed Capacity : 49152 Spindles Product : Cotton Melange Yarn Production : 10000 MTs p.a.
Slide 17: Kanyakhery Unit
Kanyakhery Unit Installed Capacity : 25920 Spindles Product : Cotton Melange Yarn Production : 4500 MTs p.a.
Slide 18: Bagalur Unit
Bagalur Unit Installed Capacity : 64512 Spindles Product : Cotton Yarns Production : 8500 MTs p.a.
Slide 19: Fabric Unit
Fabric Unit Installed Capacity : 104 Looms Product : Fabrics (PV fabric, PC fabric, Flame Retardant and other value added fabrics) Production : 88 Lac Mtr.
Slide 20: Denim Unit
Denim Unit Installed Capacity : 136 Looms with matching spinning, dyeing and processing capacity Product : Denim Fabrics (3000+ denim variants) Production : 196 Lac Mtrs.
Slide 21: Financials
Financials (Rs. in Crore) Description 2012-13 2013-14 2014-15 2015-16 2016-17 Turnover 2,471 2,884 3,014 2,945 2,996 EBIDTA 331 389 377 423 358 EBDT 210 267 252 297 248 EAT 68 99 85 107 101 Fixed Assets ( Net ) 977 947 1,161 1,143 1,190 Net Worth 329 395 445 552 579 Long Term Loans 711 606 669 564 4
Slide 22: Performance 2016-17
Performance 2016-17 (Rs. in Crore) FY17 Q1 Q2 Q3 Q4 Total Turnover 726.12 745.22 699.90 824.96 2996.20 EBIDTA 106.41 99.05 69.86 82.57 357.87 Finance Cost 27.76 27.97 27.11 27.53 110.36 EBDT 78.65 71.08 42.75 55.04 247.51 Depreciation 34.41 35.08 30.88 31.80 132.17 EBT 44.24 36.00 11.87 23.24 115.34
Slide 23: Segment-wise Turnover
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 Amount Qty Amount Qty Amount Qty Amount Qty Amount Yarn 1145 2051 1264 2422 1345 2564 1392 2497 1420 2513 Denim 146 238 143 250 157 286 163 297 191 324 Fabric 128 18
Slide 24: Turnover
Turnover Rs. in Crore 3500 3014.31 2944.79 2996.20 2884.32 3000 2471.04 21.25% 2500 2000 1500 1000 500 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 25: EBIDTA
EBIDTA Rs. in Crore 450 420.18 388.78 377.45 400 26.88% 357.87 331.17 8.06% 350 300 250 200 150 100 50 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 26: PAT
PAT Rs. in Crore 120 106.95 98.80 100.97 100 84.91 48.77% 80 67.87 60 40 20 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 27: EPS
EPS Rs. 50 46.20 42.68 43.33 45 40 36.68 47.78% 35 29.32 30 25 20 15 10 5 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 28: Dividend Payout
Dividend Payout Rs. in Crore 28.94 28.94 29.44 30 125% 125% 125% 25 23.15 23.15 100% 100% 20 15 10 5 0 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 29: Gross Block
Gross Block Rs. in Cr. 3000 2618 2370 2482 2500 43.85% 1820 1894 2000 1500 1000 500 0 31/03/13 31/03/14 31/03/15 31/03/16 31-03-17
Slide 30: Networth
Networth Rs. in Cr. 579 600 552 76% 500 445 395 400 329 300 200 100 0 31/03/13 31/03/14 31/03/15 31/03/16 31/03/17
Slide 31: Debt Equity Ratio
Debt Equity Ratio 4.00 3.59 3.50 3.00 2.69 2.51 2.50 2.15 2.11 2.00 1.50 1.00 0.50 0.00 31/03/13 31/03/14 31/03/15 31/03/16 31-03-17
Slide 32: Interest Coverage
Interest Coverage 3.36 3.24 3.50 3.19 3.01 3.00 2.73 2.50 2.00 1.50 1.00 0.50 0.00 31/03/13 31/03/14 31/03/15 31/03/16 31-03-17
Slide 33: Textile Industry - Overview
Textile Industry - Overview 2nd Largest Employer in India. Employs around 40 Mn workforce directly and 40 14% Contribution to Industrial Production of Mn. Indirectly country. 4% Contribution to India’s GDP 16% Contribution to Exports Earnings 22% of World Highest # looms World’s # 1 World’s # 2 Worl
Slide 34: Raw Material Price Trend (Rs./Kg)
Raw Material Price Trend (Rs./Kg) 180 Period Cotton Polyster Viscose Mar.14 122 94 136 160 154 154 154 144 141 141 141 141 Jun.14 123 100 136 140 136 136 137 137 137 134 125 Sep.14 115 98 137 122 123 115 117 120 113 Dec.14 97 83 137 100 99 97 95 Mar.15 90 80 137 100 90 92 100 98 94 Jun.15 100 82 141
Slide 35: 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 education industry will continue to dr
Slide 36: 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 • Free trade agreements betwe
Slide 37: 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, 16.7 million meter p.a. capacity Denim unit, 46MW CPP, Yarn/Fibre Dyeing and Green Fibre Manufacturing unit ➢ Also added various value additio
Slide 38: RSWM – Going Ahead
RSWM – Going Ahead ➢ Modernisation of Ringas Plant ➢ Expansion of RCF Facility ➢ Addition of 10 MW of Green Energy (Roof Top Solar Units) ➢ Restructuring/Consolidation of Yarn Business ➢ New Product/Business Line ➢ Refinancing of old loans taken under TUF ➢ Plan in place for all time high performanc
Slide 39: RSWM – Strengths
RSWM – Strengths • Integrated operations. Fibre Mfg. -> Dyeing-->Spinning-->Yarn Dyeing-->Weaving—>Processing & Finishing-->Fabric Dyeing • Economy of Scale 18000 MT p.a. PSF manufacturing, 27500 MT p.a. fibre/yarn dyeing, 494072 spindles, 4080 Rotors, 154 Looms fabric, 216 lac meter fabric processi
Slide 40: 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 is the key to doing b
Slide 41: Corporate Information
Corporate Information Corporate Office, Noida Key Managerial Persons 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 (Yarn & TPP) Mr. S.C.Garg
Slide 42: 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