Rswm Ltd · NSE:RSWM
Rswm — Q1 FY20 Earnings Presentation
49 slides from Rswm's earnings presentation, Aug 14, 2019
Slide 1: RSWM Limited - Investors Presentation Q1 FY20
Limited an LNJ Bhilwara Group Company PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL RSWM/ August 14, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Listing Department, 1st Floor, New Trading Ring, Exchange Plaza, C-1, Block - G, Rotunda Building, P.J. Tower
Slide 2: An LNJ Bhilwara Group Company
An LNJ Bhilwara Group Company
Slide 3: Q1 FY20 Performance
ae Q1 FY20 Performance
Slide 4: Q1 FY20 Financial Highlights
Q1 FY20 Financial Highlights ` in Cr. Total Income EBIDTA 716 759 800 96 700 600 100 63 80 500 60 400 40 20 Series1 300 0 200 Q1 FY19 Q1 FY20 100 Q1 FY19 Q1 FY20 PBT PAT 27.58 30 33.61 40 20 30 20 3.12 10 2.37 10 0 0 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 3
Slide 5: Profitability Highlights
Profitability Highlights ` in Cr. Q1 FY20 Q1 FY19 FY19 FY18 Total Income (Incl. other income) 759.40 716.21 2991.78 2979.28 Raw Material Cost 428.57 414.11 1712.67 1736.44 Employee Cost 90.58 89.95 352.18 364.52 Other Expenses 165.11 167.82 663.85 652.95 Inc./Dec. in Inventory -20.68 -18.47 53.07 -3
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights ` in Cr. 30.06.19 31.03.19 ` in Cr. 30.06.19 31.03.19 Assets Liabilities Non-current Assets 1319 1433 Shareholders' Fund 752 783 Fixed Assets 1118 1144 Share Capital 24 24 Investments 181 270 Reserve & Surplus 728 759 Other Non-current Assets 20 19 Non-current Liabilities 61
Slide 7: Key ratios
Key ratios Q1 FY20 Q1 FY19 FY19 FY18 Balance sheet ratios DE ratio excl CPTL 1.33 1.35 1.43 1.41 DE ratio incl CPTL 1.58 1.51 1.69 1.56 debt service coverage ratio (DSCR) 1.15 1.01 0.79 0.66 interest coverage ratio (ISCR) 3.24 2.12 1.76 2.24 current ratio 1.28 1.17 1.24 1.13 current ratio incl CPTL
Slide 8: Current Market Scenario and outlook (Yarn)
Current Market Scenario and outlook (Yarn) Fiscal 2019 started on a healthy note with a considerable surge in exports of cotton yarn to China which more than made up for subdued cotton yarn offtake in the domestic market. An uptick in Chinese exports was primarily owing to US-China trade disruptio
Slide 9: Current Market Scenario and outlook (Denim)
Current Market Scenario and outlook (Denim) There is a tremendous oversupply situation in the Indian denim industry. This is sharply affecting demand patterns. Denim fabric manufacturing is growing in the unorganised segment. Number of denim units have moved to 46, from 30 in 2012.Capacity has inc
Slide 10: Opportunities (Denim)
Opportunities (Denim) The large format retailers in India – Reliance, Future Lifestyles, Madura Lifestyle Fashions, Myntra are yet churning our large volumes for their quickly increasing shelf space. Though the price points remain challenging, this arena is now major focus for growth. Our focuse
Slide 11: LNJ Bhilwara Group – At a glance
LNJ Bhilwara Group – At a glance 10
Slide 12: 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.8000 Crore. Textiles Power RSWM Ltd. Bhilwara Energy Limited Maral Overseas Malana Power
Slide 13: 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. 12
Slide 14: RSWM Ltd. – At a glance
ae RSWM Ltd. — At a glance 13
Slide 15: RSWM – Overview
RSWM – Overview Flagship company of LNJ Bhilwara Group Incorporated in 1960 One of the largest textile manufacturers of Synthetic, Blended, Mélange, Cotton, Speciality and Value added yarns. Also manufacturing Fabrics, Denim and Green Polyester Fiber. Exports to over 78 countries ‘Golden T
Slide 16: RSWM – Overview: Installed Capacity
RSWM – Overview Installed Capacity 43000 MTs p.a. Green Polyester Fiber manufacturing capacity 445192 Spindles and 4800 Rotors Spinning 12 million meter p.a. PV Fabric (117 Looms) 24 million meter p.a. Fabric Processing 25 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Fa
Slide 17: RSWM – Journey
RSWM – Journey 1960 – Company incorporated and in 1961 established 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 - Est
Slide 18: 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 19: Certifications
Certifications ISO 9001:2015 : Quality System Certification ISO EMS - 14001:2015 : Environment Management Certification OHSAS - 18001: 2007 : Health and Safety Certification SA- 8000:2015 (certified by BSI) : Social Accountability ISO EnMS – 5001 : 2012: Energy Management Systems Oeko-Te
Slide 20: 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 21: Branding
Branding cannello Melange verona Fabrics Yarns Edge Ultima Denim Ultra LNJ Denim 20
Slide 22: 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 23: 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. 22
Slide 24: Banswara Unit
Banswara Unit Installed Capacity : 95376 Spindles and 3120 Rotors Product : Blended synthetic & cotton grey yarns (p/v yarn, p/c yarn, 00% viscose, 100% polyester) Slub, Compact, Core-spun yarn Production : 36500 MTs p.a. 23
Slide 25: 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. 24
Slide 26: Reengus Unit
Reengus Unit Installed Capacity : 32840 Spindles Product : Blended synthetic grey/dyed yarns (p/v yarn, 100% Viscose, 100% polyester, acrylic), Slub Yarn, Core- Spun, Compact yarn Production : 12000 MTs p.a. 25
Slide 27: Green Fibre Unit
Green Fibre Unit Installed Capacity : 44000 MTs p.a. Product : Recycled Polyester Fibre Production : 43000 MTs p.a. 26
Slide 28: Mandpam Unit
Mandpam Unit Installed Capacity : 49152 Spindles Product : Cotton Melange Yarn Production : 10000 MTs p.a. 27
Slide 29: Kanyakheri Unit
Kanyakheri Unit Installed Capacity : 25920 Spindles Product : Cotton Melange Yarn Production : 4500 MTs p.a. 28
Slide 30: Fabric Unit
Fabric Unit Installed Capacity : 117 Looms Product : Fabrics (PV fabric, PC fabric, Flame Retardant and other value added fabrics) Production : 12 Million Mtr. p.a. 29
Slide 31: Denim Unit
Denim Unit Installed Capacity : 136 Looms with matching spinning, dyeing and processing capacity Product : Denim Fabrics (3000+ denim variants) Production : 25 Million Mtrs. p.a. 30
Slide 32: RSWM Ltd. – Performance
ae RSWM Ltd. — Performance 31
Slide 33: Financials
Financials (` in Crore) Description 2014-15 2015-16 2016-17 2017-18 2018-19 Turnover 3,014 2,945 2,996 2,943 2,961 EBIDTA 377 423 358 263 210 EBDT 252 297 248 146 90 EAT 85 107 101 15 (24) Fixed Assets ( Net ) 1,161 1,143 1,190 1,138 1,144 Net Worth 445 552 633 901 783 Long Term Loans 669 564 497 57
Slide 34: Segment-wise Turnover
Segment-wiseTurnover Qty – Yarn: Lac Kg. Fabric/Denim Lac Mtr. Amt. - ` in Crore 2014-15 2015-16 2016-17 2017-18 2018-19 Segment Qty Amt Qty Amt Qty Amt Qty Amt Qty Amt Yarn 1345 2564 1392 2497 1420 2513 1349 2472 1297 2504 Denim 157 286 163 297 191 324 203 325 202 320 Fabric 152 165 138 151 127 160
Slide 35: Turnover
Turnover Rs. in Crore 3100 3014.31 2996.20 3000 2944.79 2960.58 2943.09 2900 2800 2700 2600 2500 2014-15 2015-16 2016-17 2017-18 2018-19 34
Slide 36: EBIDTA
EBIDTA ` in Crore 450 422.7 400 377.45 357.87 350 300 263.08 250 210.01 200 150 100 50 0 2014-15 2015-16 2016-17 2017-18 2018-19 35
Slide 37: PAT
PAT ` in Crore 120 106.95 100.97 100 84.91 80 60 40 14.50 20 0 2014-15 2015-16 2016-17 2017-18 2018-19 -20 -24.27 -40 36
Slide 38: EPS and Dividend Payout
EPS ` Dividend Payout Rs. in Crore 50 46.20 28.94 28.94 29.44 43.33 30 45 42.68 1 1 1 40 36.68 25 23.15 35 100% 125% 100% 125% 20 1 1 30 25 15 20 15 10 10 4.71 6.16 5 20% 5 0 0 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18 37
Slide 39: Net Worth
Net Worth Rs. in Crore 1000 901.00 900 783.00 800 700 633.00 552.00 600 500 445.00 400 300 200 100 0 31/03/16 31/03/15 31/03/17 31/03/18 31/03/19 38
Slide 40: Textile Industry – Overview
Textile Industry – Overview 39
Slide 41: 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 42: Raw Material Price Trend
Raw Material Price Trend (`/Kg) Month COTTO POLYSTER VISCOSE 180 170 170 N 164 164 166 166 167 167 159 159 159 161 161 161 161 Mar.17 125 85 159 160 Jun.17 124 78 159 137 140 137 140 133 129 Jul.17 123 80 159 125 124 123 126 120 120 119 122 Sep.17 120 84 161 120 112 112 116 116 Oct.17 112 87 161 100
Slide 43: RSWM Ltd. – Standing with its Strengths
RSWM Ltd. – Standing with its Strengths 42
Slide 44: RSWM – Strengths
RSWM – Strengths • Integrated operations. Fibre Mfg. -> Dyeing-->Spinning-->Yarn Dyeing-->Weaving—>Processing & Finishing-->Fabric Dyeing • Economy of Scale 43000 MT p.a. PSF manufacturing, 35000 MT p.a. fibre/yarn dyeing, 445192 spindles, 4800 Rotors, 12 million meter (117 Looms) fabric, 24 milion
Slide 45: RSWM – Mitigating Challenges
RSWM – Mitigating Challenges Invested around Rs.1500 Cr under TUFS and Rs.550 Cr Non-TUFS in last 11 years Added 2.25 lac Spindles, 4800 Rotors, 64 Looms, 25 million meter p.a. capacity Denim unit, 46MW CPP, 22MW Solar, Yarn/Fibre Dyeing and 43000 MT Green Fibre Manufacturing unit Also added v
Slide 46: 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 47: Corporate Information
Corporate Information Key Managerial Persons Corporate Office, Noida Mr. Riju Jhunjhunwala- Managing Director & CEO Mr. B. M. Sharma - Jt. Managing Director & CFO Mr. Surender Gupta- Company Secretary Business Heads and Key Executives Mr. S.C.Garg- Chief Executive (Melange Yarn) Mr. Suketu Shah- Chi
Slide 48: Corporate Information
Corporate Information For further information, please contact: Shri J. K. Manghani Shri Surender Gupta Dy. CFO Company Secretary Tel: 01483 222515 Tel: 0120 4390058 Cell: 9414018382 Cell: 9818646484 Email: jk.manghani@lnjbhilwara.com Email: skg@lnjbhilwara.com Shri Rakesh Jain DGM – Corporate Financ
Slide 49: 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