Slide 1: Exchange filing cover letter
February 14, 2023 The Listing Department, National Stock Exchange of India Limited, ‘Exchange Plaza’, C 1, Block G, Bandra – Kurla Complex, Bandra (E), Mumbai 400 051 Symbol: Precot Dear Sir/Madam, Sub: Investors Presentation ‐ reg Pursuant to Regulation 30(6) and Regulation 46(2)(o) of SEBI (Listin
Slide 2: Precot Investor Presentation February 2023
Precol Reliable, Agile and Innovative Investor Presentation Febn.1ary 2023
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Precot 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 securities, and shall not
Slide 4: Yarn & Technical Textile company overview
Yarn & Threads Technical Textile Private Label Specialist in Incorporated in 1962 cotton-based products in hygiene and cosmetics 5 state of art facilities with Wide range of cotton- based presence in products with End-to-End 4 states of South India capability Yarn & Technical Threads Textile 1.65 la
Slide 5: Company milestones since 1962
1962 1983 1992 1995 First Manufacturing Unit in Unit 2 with Unit 3 with 25,000 Unit 4 with 35,000 spindles Kerala with 12,000 29,000 spindles in spindles in Kerala in Tamil Nadu spindles Andra Prdaesh 2010 2002 1995 Dyeing Unit with annual Commissioning of Doubling & Gassing Units, capacity of 1800T
Slide 6: Key strengths and focus areas
Geographical Presence Quality Captures the benefit of growing Delivering sustainable products with unmatched market opportunity in international quality and consistency. as well as domestic markets 03 04 Product Diversification Technical Advancements Introduction of new & value-added Automation for
Slide 7: Diversified range of cotton yarns and threads
Diversified range of cotton yarns and threads 165,000 spindles Organic, BCI & normal Newer and quality cotton and polyester products to create product differentiation Production of specialty Value addition and blended yarn Efforts to improve Products Integration operational with supply chains effici
Slide 8: Huge Export Opportunity Market
Enabling Factors for Growth Target Nations USA Private Label Sales in exports market Constant R&D for Rapid increase in demand for hygiene developing value-added products providing platform for Improve Product Mix and products to create value Indian players geographical presence for both global & do
Slide 9: Absorbent Cotton
Products End User Absorbent Cotton Our purifiedcotton Our purified cotton is OEKO contains zeroTex and residual REACH compliant chemicals, zero toxinsand andTotally Chlorine is Totally Chlorine Free (TCF). Free (TCF). Cotton buds Cotton Pads Sanitary Pads Tampons and Spunlace Wipes manufacturers Our
Slide 10: Exfoliating Pads and Cotton Balls
Products End User Our range of cotton balls are made Cotton Balls from 100% pure absorbent cotton. Cosmetic and Nail Paint medical purposes remover Patented woven textured 100% Cotton, Exfoliating Pads 100% Biodegradable exfoliating pads Nail Paint Gentle skin remover exfoliation 9
Slide 11: Cotton Spunlace Rolls
Products End User Highly absorbent wool rolls. Cotton Wool Rolls Pleats specially designed for easy tear- off & use General hygiene Baby cleaning Cotton Spunlace Rolls Our cotton spunlace is 4 layered, highly absorbent and has good strength for further processability Panty Liners Sanitary Pads 10
Slide 12: Yarn & Threads
Products End User Leading manufacturers of yarns & Yarn & Threads threads for textile production, knitting and sewing Weaving Knitting Sewing Textile Production 11
Slide 13: Key Highlights of the Manufacturing Processes
Key Highlights of the Manufacturing Processes ✓ Vertically integrated manufacturing capabilities with in- house design and development ✓ Increased automation and process improvements are being implemented in order to maintain quality and profitability. ✓ Compliance and Quality Standards: ISO 9001 &
Slide 14: Accessibility, Manpower, Infrastructure and Scalability
Accessibility Our Facilities are located close to the source of Raw material required for production enabling continuous supply and better ability to manage demand cycles Manpower Availability of both skilled and unskilled manpower helps in manpower planning Karnataka - Gowribidnur, Kolar Karnataka
Slide 15: Key Takeaways
Key Takeaways Key Takeaways Container availability and State of art Facilities located reduced freight cost providing in India export relief Canada UK Europe Middle East Bangladesh India USA Egypt Company has moved towards Vietnam Presence in over 25 countries solar and wind energy for its Sri lanka
Slide 16: Geography and segment wise revenue
Geography wise (Rs. Crs) Segment wise (Rs. Crs) 955 955 757 157 696 697 757 679 501 679 697 92 642 73 119 473 139 386 426 424 798 606 665 453 577 504 293 284 270 272 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Domestic Export Technical Textile Yarn Geography wise (%) Segment wise (%) 10.7% 12.
Slide 17: Growth strategy
Enhance existing & expand product portfolio • Focus on branding and promotion Increasing presence in overseas markets • Manufacturing and developing Value added • Plans to export to new geographies such as product portfolio 01 03 MENA & South East Asia in the next 5-10 years through increase reach a
Slide 18: Historical, existing and target mix
Historical mix Existing mix Target mix 11% 16% 35% FY18 FY22 FY25 65% 89% 84% Yarn Technical Textile Aiming to Increase our revenue share Higher share of value-added products Value added products to be targeted in technical textiles segment from 11% to aid in margin expansion and better in current a
Slide 19: Key retail customers
Walmart Inc. CVS Pharmacy Walgreens ` ` ` Dollar General Dove The Kroger Co. ` ` ` Meijer Inc. K Mart ` ` Coles Supermarkets Aldi ` ` 18
Slide 20: Board of Directors
Mr. Ashwin Chandran Mr. Prashant Chandran Mr. T Kumar Designation - Chairman & MD Designation - Vice Chairman & MD Designation - Executive Director Age - 46 Years Age - 41 Years Age - 53 Years Experience - More than 22 years of experience Experience - More than 15 years of experience Experience - Mo
Slide 21: Certifications
Certifications Precot AC EC — Uf OEKO-TEX® ir. STANDARD 100 $i s 4 /) MAD 300 3 i 3 - Water wees pentiromm: A k o al — ‘sos =
Slide 22: Investments in Green Energy and sustainability
Investments in Green Energy - 5 MW Recycled Water Management with the Wind and 10 MW Solar generations and help of effluent treatment plants Gas based power plants Promoting Organic & Recycled Products in Active CSR with special focus on education both Spinning and Technical Textile and healthcare f
Slide 23: Financial Highlights
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Slide 24: Q3 FY23 revenue, gross profit, EBITDA, PAT
Revenue (₹ crore) Gross Profit (₹ crore) Highlights Margin% 49.9 21.7 52.6 35.9 716 372 ➢ Q3FY23 Revenue stood 708 at Rs 227 crore vs. Rs 257 282 crore in Q3FY22, decline due to reduced 282 141 yarn prices 227 ➢ Drop in yarn prices 49 significantly from average price of Rs.408 Q3FY22 Q3FY23 9MFY22 9
Slide 25: Profit and Loss Q3 FY23
Profit and Loss (in Rs. Crs) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 227.0 281.8 -19.5% 235.4 -3.6% 715.8 708.2 1.1% Cost of Goods Sold 177.7 140.9 147.4 459.0 335.8 Gross Profit 49.3 140.9 -65.0% 88.0 -43.9% 256.8 372.5 -31.1% Gross Profit Margin 21.7% 50.0% 37.4% 35.
Slide 26: Annual revenue, gross profit, EBITDA, PAT
Revenue (₹ crore) Gross Profit (₹ crore) Margin% 37.1 40.2 40.8 46.1 50.8 993 505 790 709 726 665 318 296 307 263 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (₹ crore) PAT (₹ crore) Margin% 2.9 7.3 6.6 14.0 19.0 Margin% -0.8 -1.0 -2.3 5.0 10.6 189 105 93 33 57 48 21 -6 -8 -17 FY18 FY19
Slide 27: Annual Profit and Loss
Profit and Loss (in Rs. Crs) FY22 FY21 FY20 FY19 FY18 Revenue from Operations 993.3 665.1 726.1 790.1 709.2 Cost of Goods Sold 488.6 358.6 430.1 472.5 446.1 Gross Profit 504.7 306.6 296.0 317.7 263.0 Gross Profit Margin 50.8% 46.1% 40.8% 40.2% 37.1% Employee Cost 93.6 73.6 71.7 76.9 72.3 Other Expen
Slide 28: Assets and Equity & Liabilities
Assets (in Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (in Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non - Current Assets 495.1 471.6 491.9 547.6 567.5 Total Equity 444.1 341.6 310.2 335.7 343.5 Property Plant & Equipment 428.0 437.4 462.5 511.5 532.7 Share Capital 12.0 12.0 1
Slide 29: Cash flow statement
Particulars (in Rs. Crs) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 133.8 33.0 25.5 -7.8 -5.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 58.9 64.2 12.8 75.6 41.8 Operating profit before working capital changes 192.7 97.1 38.3 67.8 36.5 Changes in working capital -117.
Slide 30: For further information, please contact
For further information, please contact: Company: Investor Relations Advisors: Precot Limited Strategic Growth Advisors Pvt. Limited CIN: L17111TZ1962PLC001183 CIN: U74140MH2010PTC204285 Mrs S. Kavitha Mr Pratik Suresh Shah/ Ms Prachi Chhugani kavitha@precot.com p.s.shah@sgapl.net / prachi.c@sgapl.n