Sangam (india) Limited · NSE:SANGAMIND
Sangam (india) — Q1 FY25 Earnings Presentation
43 slides from Sangam (india)'s earnings presentation, Aug 12, 2024
Slide 1: Intimation to Stock Exchange - Investor Presentation
SANGAM (INDIA) LIMITED CIN : L17118RJ 1984PLC 003173 E - mail : secretarial@sangamgroup.com Website : www.sangamgroup.com I Ph : +91-1482-245400-06 Ref: SIL/SEC/2024-25 Date: 12th August, 2024 The Manager, The Manager, Department of Corporate Services Department of Corporate Services, The National S
Slide 2: Sangam (India) Limited Earnings Presentation Q1 FY25
Sangam (India) Limited Earnings Presentation Q1 FY25
Slide 3: Safe Harbor
Safe Harbor The presentation has been prepared by Sangam (India) Limited (the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basi
Slide 4: Table of Contents
Table of Contents 1 About the Company 04 2 Financial Performance 07-09 3 Key USPs 10 4 Strategic Priorities 17-24 5 Industry Outlook 23-25 6 Annexures 26-42 3
Slide 5: Sangam: Weaving The Future
Sangam: Weaving The Future India’s largest, fastest growing and most trusted brand in Textile Sector o One of the largest manufacturer of PV dyed Yarn and Denim Fabric. Performance Metrics o Strong Expertise: 4 decades of Industry experience. Rs. 693 Cr 25% o Skilled Employee Base: Workforce of 12,0
Slide 6: Diversified And De-Risk Business Model
Diversified And De-Risk Business Model Product Wise Sales Contribution Geographical Presence 20% 3% Rest of 26% World 37% Q1 FY 25 29% India 22% 63% PV Yarn Cotton Yarn Denim Fabric Woven Fabic with processing Garment India Rest of World 3% Rest of 22% World 29% 33% FY 24 28% India 67% 18% PV Yarn C
Slide 7: Vision 2026: Moving up the Value Chain – Fabric & Garments
Vision 2026: Moving up the Value Chain – Fabric & Garments Garment Garment 3% 6% Yarn Topline Segment wise Segment wise 33% Yarn Estimated for FY 26 Sales 47% Sales 4,000 Cr. Contribution Contribution FY24 FY26 Fabric 50% Fabric 61% EBITDA Margin Spinning Fabric Garment Approx 12.50% • High ROE • Fo
Slide 8: Financial Performance
FINANCIAL PERFORMANCE
Slide 9: Key Highlights
Key Highlights Quarter Performance Revenue Rs. 693 Cr. EBITDA Rs. 67 Cr. PAT Rs. 14 Cr. Ratio & Margins Gross Profit Margin 43 % EBITDA Margin 10 % PAT Margin 2 % 8
Slide 10: Q1 FY25 Performance
Q1FY 25 Performance Particulars (Rs in Cr) Q1 FY25 Q4 FY 24 QoQ Q1 FY 24 YoY Revenue from Operations 693 701 -1% 677 2% Gross Profit 298 294 1% 273 9% EBITDA 67 67 1% 54 25% EBITDA Margin (%) 10% 10% 20 bps 8% 176 bps Depreciation 28 26 7% 22 29% Profit Before Interest & Tax 39 41 -3% 32 22% Interes
Slide 11: Key USPs
KEY USPs
Slide 12: Yarn- Improving The Mix
Yarn- Improving The Mix • Leader in PV dyed Export yarn to 34+ Yarn Produced: Cotton & PV Dyed. In 1995 initiated backward integration into Key Highlights yarn in India. countries. Established Manufacturer of 100% cotton Yarn: Core spinning • Price Maker. Distribution Network. Spun Yarn, Eli Twist Y
Slide 13: Garment – Revenue increased 5x in 7 years
Garment – Revenue increased 5x in 7 years • India’s largest • Athleisure wear, • 2000+ touchpoints. Key Highlights manufacturers of Intimate wear and • FY 24: Garment Seamless Garments- C9 Casual Wear Domestic: 96% Export: 4% (as a % of Revenue) • Cutting edge machinery sourced from Santoni, Italy.
Slide 14: Denim Fabric – Revenue increased 2.5x in 7 years
Denim Fabric – Revenue increased 2.5x in 7 years • One of the largest exporter with exports to 25+ countries and market leader of Denim Fabric in country. Denim Fabric Key Highlights • Producers of wide range of denim fabric ranging from 4Ozs to 15Ozs. (as a % of Revenue) • Working with value added
Slide 15: Synthetic Fabric – Significant Market Share
Synthetic Fabric – Significant Market Share • One of the largest exporter and market leader of PV fabric in • Strong Distribution country Network: 10,000+ Key Highlights • Significant market share in processing PV, PV Lycra, PVW, Dealers Polyester woolen & 100% wool. • Export to 45 + Synthetic Fabri
Slide 16: Leadership In India: PV Dyed Yarn
Leadership In India: PV Dyed Yarn • Grasim Industries Limited has 80-85% market share globally. • Sangam (India) Limited is the largest buyer of Viscose from Grasim. • Using this Viscose and taking benefit of in-house dying polyester it manufactures PV dyed yarn. 15
Slide 17: Diverse Offerings
Diverse Offerings As an integrated Integration facilitates player company can seamless coordination manage, multi counts between different and multi blends like production stages, polyester, wool, hemi, resulting in enhanced linen, cotton, man efficiency and reduced made blends, natural lead times.
Slide 18: Strategic Priorities
STRATEGIC PRIORITIES
Slide 19: Value Addition Driving Margin Expansion
Value Addition Driving Margin Expansion Value Added Products and Gross Margin % 1% 1% 1% 3% • Increased the revenue mix of 40% 43% 45% 45% 45% 50% 53% value-added products, i.e. Fabric and Garment to 53% 45% 45% of total revenue, effectively 44% 43% mitigating market 42% 42% 40% fluctuations and ens
Slide 20: On The Path To Recovery
On The Path To Recovery Product wise price realisation Spreads between Cotton Yarn Prices and Cotton Prices Yarn (INR/kg) PV Fabric (INR/Meter) 229 117 225 122 110 111 217 95 99 87 90-92 78 79 78 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Rs./kg Denim Fabric (INR/Meter) Garment (INR/pc) 184 213 181 2
Slide 21: Capacity Expansion to Drive Future Growth
Capacity Expansion to Drive Future Growth Capital Outlay Machines Capacity Timeline Current Post Expansion Current Post Expansion Current Status Expected Yarn 344 Cr 1,03,140 MTPA 1,12,440 MTPA Ongoing Q1 FY 26 Spindles 2,97,744 3,06,864 Rotors 2,664 5,064 Knitting Machines 26 32 Synthetic Fabric 16
Slide 22: Cost Competitiveness
Cost Competitiveness Fully integrated model- From Yarn to Fabric operations, Sangam can offer unlimited product combination in unlimited shades in cost effective manner. Upgradation of facilities and expansion to provide benefits of economies of scale. Existing diverse offerings to meet new demands
Slide 23: Significant Focus on Sustainability And CSR
Significant Focus on Sustainability And CSR Recycle • 30,000MT p.a. of recycled fiber comes through recycling of 38,400MT plastic waste. • Consuming 12,500MT p.a. cotton & other waste minimizing environmental footprint. Empowering community • Established Institutes and University. • Established NABH
Slide 24: Industry Outlook
INDUSTRY OUTLOOK
Slide 25: Government Initiatives
Government Initiatives Budget Allocation Increase of ~1,000 Cr. for Ministry of Textiles with the focus to grow and enhance textile sector. Increased funding for specialized programs is designed to enhance skills and innovation, driving Quality and Skills the creation of high-value textile products.
Slide 26: Strong Presence in a Growing Sector
Strong Presence in a Growing Sector Forecast Global Textile Market Size INR190bn INR44bn 5.67% CAGR 755.58 PLI scheme Outlay through PM MITRA 717.66 scheme 681.83 to Textile Industry 646.73 611.11 573.45 7,50,000 2.3% Employment Contribution of textiles opportunities in Textile industry to India’s G
Slide 27: Annexure
ANNEXURE
Slide 28: Leadership
Leadership Mr. Ram Pal Soni Dr. S.N. Modani Mr. Vinod Kumar Sodani Mr. Anurag Soni FOUNDER & CHAIRMAN VICE CHAIRMAN ED & CEO (FABRIC & MANAGING DIRECTOR GARMENT BUSINESS) • 40 years of rich experience in the • Holds a Ph.D. in strategic • Managing PV Suiting and • Leads Sangam India Ltd., textiles i
Slide 29: Leadership
Leadership Mr. Pranal Modani Mr. S. R. Dakhera Mr. Sudhir Maheshwari Dr. T.K. Mukhopadhyay CEO (YARN & DENIM CFO INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR BUSINESS) • Led successful launch of C9 • He is graduated with B.Sc • With a 34-year long career • Served 30 years, Chief General Airwear, the gr
Slide 30: Leadership
Leadership Mr. Upendra Singh Ms. Irina Garg Mr. D C Patwari Mr. A. Karati Mrs Aparna Sahay ADDITIONAL ADDITIONAL ADDITIONAL INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR • More than 37years of • After serving as IRS • Served for 36 years in • Worked in diverse roles at • An MA
Slide 31: Consolidated Balance Sheet Highlights
Consolidated Balance Sheet Highlights Net Debt to EBITDA (x) Net Debt to Equity (x) Total Asset to Equity (x) 2.77 2.55 2.55 2.45 4.74 4.81 1.05 1.05 0.82 0.90 2.64 1.90 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 30
Slide 32: Historical Income Statement
Historical Income Statement Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Revenue from Operations 1,873.53 1,790.11 1,358.97 2,437.76 2,712.30 2,628.06 Total Expenditure 1,714.3 1,628.58 1,236.83 2,130.38 2,410.73 2,412.58 EBITDA 159.23 161.53 122.14 307.38 301.57 215.48 EBITDA Margin %
Slide 33: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 Particulars (Rs in Cr) FY 19 FY 20 FY 21 FY 22 FY 23 FY24 (a) Equity Share Capital 39 39 43 43 45 50 Non-Current Assets (b) Share Warrant - - - 26 23 - Property, Plant and Equipment 648 615 586 595 720 1,004 (c) Other
Slide 34: Comfortable Debt Repayments
Comfortable Debt Repayments Debt Repayment Schedule (in INR Cr.) Interest Coverage ratio 120 122 4.96 110 4.12 93 57 1.66 1.18 1.17 0.76 0.84 FY 25 FY 26 FY 27 FY 28 FY 29 FY18 FY19 FY20 FY21 FY22 FY23 FY24 • Debt repayment through internal accruals. • Capex plans to expand capacity and boost revenu
Slide 35: Production Quantity & Capacity Utilization %
Production Quantity & Capacity Utilization % Yarn PV Fabric Denim Fabric Garment (MT) (Lakh Meter) (Lakh Meter) ( Lakh pcs) Q1FY25 82.21% Q1FY25 85.49% 93.99% 49.74% 95 Q1FY25 122 Q1FY25 12 21,776 Q4FY24 86.75% Q4FY24 86.80% 99.00% 59.60% 22,719 96 Q4FY24 119 Q4FY24 14 Q3FY24 79.70% Q3FY24 87.40% 91
Slide 36: Product wise price realization
Q4FY22 177 Q4FY22 264 Q1FY23 Q1FY23 198 Q2FY23 Q2FY23 201 289 273 Q3FY23 Q3FY23 191 Q4FY23 Q4FY23 189 Q1FY24 245 230 229 Q1FY24 184 Yarn (INR/kg) Q2FY24 Q2FY24 177 Q3FY24 Q3FY24 172 Denim Fabric (INR/Meter) Q4FY24 Q4FY24 176 Q1FY25 220 208 217 225 Q1FY25 181 Product wise price realization Q4FY22 116
Slide 37: Secured PLI
Secured PLI One of the company amongst textile sector to be PLI Eligible Company eligible for PLI. The company is in the process to Approval Obtained complete the formalities. Sangam Ventures Limited (Subsidiary of Sangam (India) Limited) has been selected in Duration of Scheme 24 Dec 2021 to 31 Mar
Slide 38: Strong Presence in Rajasthan
Strong Presence in Rajasthan Location Facilities Atun, Bhilwara Weaving, Processing & Garment Plant Biliya Kalan, Bhilwara Denim Weaving & Processing Plant Biliya Kalan, Bhilwara Spinning Plant Unit-I Sareri, Bhilwara Spinning Plant Unit-II Soniyana, Chittorgarh Spinning Plant Unit-III 37
Slide 39: Recognised Four Star Export House
Recognised Four Star Export House Sangam (India) Limited has been recognized as a four-star export house. Exports (in Rs. Crore) 921 867 757 470 423 FY 20 FY 21 FY 22 FY 23 FY 24 38
Slide 40: Certifications
Certifications QUALITY MANAGEMENT SYSTEMS CERTIFICATIONS OKEO-TEX STANDARD 100 SOCIAL ACCOUNTABILITY STANDARDS GLOBAL RECYCLED STANDARD ORGANIC CONTENT STANDARD GLOBAL ORGANIC TEXTILE STANDARD 39
Slide 41: Our Customers
Our Customers _® NEXT] RETAIL PANN JOHN Players WHAAAP | PRI MARK} FASHION
Slide 42: Awards And Recognitions
Awards And Recognitions TEXPROCIL Export TEXPROCIL Export “Rajasthan Energy Rajasthan State Award 2022-23 Award 2016-17 Conservation Award” Award 2008 for Export Gold Trophy for the Gold Plaque for the 2009-10 by Hon’ble Ex- Excellence in textile Highest Exports of Highest Exports of CM of Rajasthan
Slide 43: Thank You
Sangam (India) Ltd Name: Mr Arjun Agal Tel: +91 9252145210 Email: arjunagal@sangamgroup.com THANK YOU Investor Relations: Go India Advisors Name: Ms. Vandini Tated Name: Ms. Sheetal Kandhuja Tel: +91-9024433893 Tel: +91-9930577801 Email: vandini@goindiaadvisors.com Email: sheetal@goindiaadvisors.com