Banswara Syntex Ltd · NSE:BANSWRAS
Banswara Syntex — H1 FY2019 Earnings Presentation
26 slides from Banswara Syntex's earnings presentation, Nov 15, 2018
Slide 1: Banswara Syntex Limited Presentation – November 2018
BANSWARA SYNTEX LIMITED Presentation – November 2018 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 19.2% 20.3% has led to Indian brands 24.8% 22.1% 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 European Partnership with Japanese Company Company • Marketing agreement with a 90 year old • Marketing agreement with a Japanese company European company, who, has been a major for value added product sales of Fabrics and supplier to the global Fast Fashi
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. Q2 FY19 Q2 FY18 YoY Q1 FY19 QoQ Net Operating Income 375.8 317.8 18.2% 302.5 24.2% • Forex Realisation for the Raw materials 199.0 136.7 140.1 quarter were Rs 68.49/USD as Employee Expense 59.8 62.8 56.5 compared to Rs 66.26/USD in Manufacturing Expe
Slide 21: Standalone Profit and Loss Highlights
Standalone Profit and Loss Highlights Rs. in Crs. H1 FY19 H1 FY18 YoY FY18 Net Operating Income 678.3 623.6 8.8% 1,293.0 Raw materials 339.2 276.9 622.6 Employee Expense 116.3 118.5 235.8 Manufacturing Expenses 55.8 62.0 111.8 Power & Fuel 66.8 62.7 125.9 Other Expenses 39.4 45.0 85.8 + Other Income
Slide 22: Business Highlights
Business Highlights: • During the Quarter, the production of yarn and readymade garments increased by 13.43% and 28.07% respectively whereas fabric production was lower by 9.93% as against Q1FY19 due to paucity of orders/lower machine utilization • During the quarter, there were repayment of term lo
Slide 23: 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 24: 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 1,130 422 473 520 484 514 51% 54% 55% 56% 470 47% 57% 678 678 584 498 277 532 470 513 57% 488 248 53% 49% 46% 45% 44% 43% 189 212 200 240 252 43% 13
Slide 25: Improving Balance Sheet
Improving Balance Sheet Net Debt *(Rs. Crs) Net Debt:Equity -47 664 -64 3.1 617 -16 -21 -38 2.8 553 537 516 478 2.2 2.1 1.9 1.7 FY14 FY15 FY16 FY17^ FY18^ H1FY19^ FY14 FY15 FY16 FY17^ FY18^ H1FY19^ *Net Debt includes Current Maturity of Debt ^ As per IND AS rest as per Indian GAAP 25
Slide 26: 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 [email protected] rahu