Pearl Global Industries Limited · NSE:PGIL
Pearl Global Industries — Q4 FY15 Earnings Presentation
23 slides from Pearl Global Industries's earnings presentation, May 2015
Slide 1: Pearl Global Industries Limited Q4 FY15 & Full Year FY15 Results Update
PEARL GLOBAL INDUSTRIES LIMITED Q4 FY15 & FULL YEAR FY15 RESULTS UPDATE May 2015 Private & Confidential
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation and the following discussion may contain “forward looking statements” by Pearl Global Industries Limited (“Pearl Global” or “PGIL”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q4 & FY15 Results Highlights Business Outlook & Summary About Us Key Sustainable Advantages Future Growth Opportunity – E-Retail Initiative “SBUYS” 3
Slide 4: Dividend Payout for FY15
DIVIDEND PAYOUT FOR FY15 BOARD OF DIRECTORS HAVE RECOMMENDED A DIVIDEND OF RS. 2.25 PER EQUITY SHARE (22.5%) WHICH AMOUNTS TO A TOTAL DIVIDEND PAY OUT OF RS. 58.5 MN. DIVIDEND PAY OUT IS 23.3% OF THE REPORTED PAT 4
Slide 5: Scheme of Arrangement Post De-Merger
SCHEME OF ARRANGEMENT POST DE-MERGER Pearl Global Industries Limited operates across three business streams – • Manufacturing • Marketing & Distribution • Sourcing of garments through subsidiaries Till recently, the Company operated (through its subsidiaries) with two distinct business segments: • M
Slide 6: Q4 FY15 & Full Year FY15 Results Highlights
Q4 FY15 & FULL YEAR FY15 RESULTS HIGHLIGHTS REVENUES EBITDA & EBITDA MARGIN % PAT & PAT MARGIN % 50.5% 49.8% 47.6% 5.4% 6.1% 2.3% 2.9% 3.3% 2.4% 46.1% 45.4% 4.4% 4.8% 0.8% 3.2% 10,237 497 409 251 146 3,340 202 111 2,380 2,452 132 111 2,076 106 67 54 95 16 57 70 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 FY15 Q
Slide 7: Q4FY15 & Full Year FY15 – Consolidated Profit & Loss Statement
Q4FY15 & FULL YEAR FY15 – CONSOLIDATED PROFIT & LOSS STATEMENT The consolidated results are not comparable as the previous period numbers are not restated to reflect the demerger of company’s SDM business. Particulars in Rs Mn Q4 FY15 Q3 FY15 QOQ % FY15 Total Sales 3,339.9 2,451.9 36.2% 10,237.4 Cos
Slide 8: FY15 – Consolidated Balance Sheet Statement
FY15 – CONSOLIDATED BALANCE SHEET STATEMENT The consolidated results are not comparable as the previous period numbers are not restated to reflect the demerger of company’s SDM business. Particulars in Rs Mn FY15 Particulars in Rs Mn FY15 Non-current assets: Share Holders’ Funds: Fixed assets 2,076.
Slide 9: Business Outlook
BUSINESS OUTLOOK • Multi-product offerings, multi-location diversified & vertically integrated Preferred Vendor to Global manufacturing base, strong design capabilities and strong quality compliance Brands & Retailers systems. • High operational flexibility & scalability as the manufacturing operati
Slide 10: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW • The erstwhile business of Pearl Global consisted of manufacturing, trading, marketing & distribution and exports of readymade garments. Business • The Company decided to segregate its global marketing, sourcing & distribution business from its Overview garment manufactur
Slide 11: Pearl Global Is Favourably Established in the Global Apparel Sourcing Market
PEARL GLOBAL IS FAVOURABLY ESTABLISHED IN THE FAST EVOLVING GLOBAL APPAREL SOURCING MARKET Multi-Product Offerings Multi-Location Presence • One-stop shop offering wide variety of • Well-diversified and de-risked products across wovens & knitwears. manufacturing base located in India, • Value additi
Slide 12: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Shareholding % Mar-15 Dec-14 Sep-14 Jun-14 Mar-14 Market Data As on 22.05.15 (BSE) Promoters 66.58% 66.58% 66.58% 66.58% 66.58% Market capitalization (Rs Mn) 5,633 FII 6.73% 5.42% 4.32% 3.51% 2.78% Price (Rs.) 259.8 DII 6.48% 6.60% 6.63% 6.63% 6.63% No. of shares out
Slide 13: About Us: Board of Directors
ABOUT US: BOARD OF DIRECTORS Mr. Deepak Seth • Economics Graduate from St. Stephens College, Delhi University, MBA from Jamanalal Bajaj Institute of Management Studies, Mumbai, India. • He is an active member of the Apparel Export Promotion Council of India. Chairman • He was awarded the “Udyog Ratn
Slide 14: Key Sustainable Advantage: Multi-Country Manufacturing Presence
KEY SUSTAINABLE ADVANTAGE: MULTI-COUNTRY MANUFACTURING PRESENCE LONG TERM PREFERRED VENDOR TO LEADING GLOBAL APPAREL BRANDS Global Manufacturing Facilities & Capabilities INDIA BANGLADESH INDONESIA • Core centre for cotton fabrics. • Core centre for knitwears. • Core for cotton & synthetic fabrics.
Slide 15: Key Sustainable Advantage: Vertically Integrated Manufacturing
KEY SUSTAINABLE ADVANTAGE: VERTICALLY INTEGRATED MANUFACTURING VERTICALLY INTEGRATED MANUFACTURING CAPACITY Total Capacity EFFECTIVE SUPPLY CHAIN MANAGEMENT Location Products Factories Machines Mn Pieces / Month • Strategic tie-ups with dyeing mills in Bangladesh. North India Woven Soft Sep 2 1,800
Slide 16: Key Sustainable Advantage: Multi-Product Offerings
KEY SUSTAINABLE ADVANTAGE: MULTI-PRODUCT OFFERINGS MULTI-LOCATION PRESENCE PROVIDES AN COMPETITIVE EDGE TO MEET THE COMPLEX & DIVERSE PRODUCT DESIGN REQUIREMENTS OF THE LEADING GLOBAL RETAILERS Pearl Global’s Diverse Presence and Product Specialisations Region Product Offering Specialization Garment
Slide 17: Key Sustainable Advantage: Approved Vendor to Global Brands
KEY SUSTAINABLE ADVANTAGE: APPROVED VENDOR TO GLOBAL BRANDS Target Australia 17
Slide 18: Key Sustainable Advantage: Strong Design Capabilities
KEY SUSTAINABLE ADVANTAGE: STRONG DESIGN CAPABILITIES STRONG EMPHASIS ON IN-HOUSE DESIGN & PRODUCT DEVELOPMENT • Dedicated in-house design team of 75 designers located in Hong Kong, India and Indonesia. • The design teams continually shop markets all over the world and visit all the globally renowne
Slide 19: Key Sustainable Advantage: Strong Quality Check & Systems
KEY SUSTAINABLE ADVANTAGE: STRONG QUALITY CHECK & SYSTEMS COMMITMENT TO LEAN PROCESSES, HIGH PRODUCTIVITY AND QUALITY COMPLIANCE • All manufacturing units are using SAP, an integrated ERP software system, to run day to day operations and monitor key performance indicators. • System integration has c
Slide 20: Future Growth Opportunity – E-Retail Initiative “SBUYS”
FUTURE GROWTH OPPORTUNITY – E-RETAIL INITIATIVE “SBUYS” Pearl Global has forward integrated into online fashion apparel retailing under the brand “SBUYS” 20
Slide 21: Pearl Global – E-Retail Strategy
PEARL GLOBAL – E-RETAIL STRATEGY • Forward integration into online fashion apparel retailing under the brand Business Growth “SBUYS”. Opportunity • Online retailing is a high-growth space and offers strong potential to build a business model with healthy margin profile. • Leverage its strong knowled
Slide 22: SBUYS – Brand Visibility
SBUYS – BRAND VISIBILITY • Strategic Tie-Ups: Myntra, Snapdeal, Fashion and You and Hopscotch • Strategic Tie-Ups under process: Flipkart, Jabong, Amazon. 22
Slide 23: Thank You
FOR ANY FURTHER QUERIES PLEASE CONTACT - THANK YOU Mr. Raj Chawla Mr. Ammeet Sabarwal / Mr. Nilesh Dalvi Chief Finance Officer IR Consultant Pearl Global Industries Email – [email protected] Email – [email protected] [email protected] Contact No – +91 844759422
Pearl Global Industries — Q4 FY15 Earnings Presentation on 6ix