S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — FY2017 Earnings Presentation
32 slides from S.p. Apparels's earnings presentation, May 2017
Slide 1: Q4 & FY17 Results Update
Q4 & FY17 RESULTS UPDATE May 2017
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by S.P. Apparels Limited (“SPAL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial co
Slide 3: Key Highlights - FY17 Results
KEY HIGHLIGHTS - FY17 RESULTS 22% YoY Growth in Total Revenues 44% YoY Growth in Adj. EBITDA Adj. EBITDA margin % increased by 298 bps from 15.7% to 18.7% 78% YoY Growth in Adj. PAT Adj. PAT margin increased by 303 bps from 6.5% to 9.5% 1. Total revenues include realised gain on account of
Slide 4: Q4 & FY17 Results Update agenda
Q4 & FY17 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 5: Q4 & FY17 Results Key Highlights
Q4 & FY17 RESULTS KEY HIGHLIGHTS FY17 YoY ANALYSIS In Rs Mn REVENUES Adj. EBITDA & EBITDA MARGIN PBT & PBT MARGIN 3 PAT & PAT MARGIN 4 18.7% 14.4% 9.5% 6,523 15.8% 6.5% 5,371 8.4% 1,219 941 619 847 347 449 22 % 44 % 110 % 78 % FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 EBITDA EBITDA Margin % PBT PBT Ma
Slide 6: Leverage Analysis & Return Ratios
Q4 & FY17 RESULTS LEVERAGE ANALYSIS & RETURN RATIOS In Rs Mn RETURN METRICS 35.4% 25.6% 24.0% 17.9% 12.7% 13.5% 9.4% 9.9% 12.1% 4.0% FY13 FY14 FY15 FY16 FY17 ROE % Cash Adjusted ROCE% ROE = PAT / Avg. Equity (Excl. preference shares), Cash Adj. ROCE = EBIT / Avg. Capital Employed excl. C&CE LEVERAGE
Slide 7: Division Wise Analysis
Q4 & FY17 RESULTS DIVISION WISE ANALYSIS In Rs Mn Q4 FY17 YoY ANALYSIS – TOTAL REVENUE BREAKUP FY17 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1,624 6,523 1,521 5,371 102 154 568 52 % 346 64 % 1,419 1,470 5,955 4% 5,025 19 % Q4 FY16 Q4 FY17 FY16 FY17 Garments Retail Garments Retail DIVISION REVENUES SHARE
Slide 8: Result Analysis
FY17 RESULTS RESULT ANALYSIS FINANCIAL UPDATE: • FY17 total revenues saw growth of 22% YoY to Rs 6,523 mn. • Revenue growth of 19% in garments division and 64% in retail division. • Growth in garments division driven by increase in existing customer orders supported by increase in capacity. • FY17 A
Slide 9: Consolidated Profit & Loss Statement
Q4 & FY17 RESULTS CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY17 Q4 FY16 YoY % FY17 FY16 YoY % Revenue from Operations 1,581.0 1,496.5 5.6% 6,356.5 5,328.3 19.3% Gain on account of Foreign Currency Fluctuations 42.6 24.2 - 166.7 42.5 - Total Revenues 1,623.6 1,520.8 6.8% 6,523.2
Slide 10: Consolidated Balance Sheet
Q4 & FY17 RESULTS CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn FY17 FY16 Particulars in Rs. Mn FY17 FY16 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Equity and share Capital 451.7 371.5 Fixed assets Reserves & surplus 3,450.9 955.7 Tangible assets 2,907.0 2,701.1 Intangi
Slide 11: Company Overview
Q4 & FY17 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 12: Brief Profile
COMPANY OVERVIEW BRIEF PROFILE ▪ SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India. ▪ Provides end-to-end garment manufacturing from greige fabric to finished products including body suits, sleep suits, tops and bottoms. BUSINESS OVERVIEW ▪
Slide 13: Our Evolution
COMPANY OVERVIEW OUR EVOLUTION 2007-08 Amalgamation with Sri Balaji 2016 2003 Bakkiam Spinning Mills ▪ Listed on BSE / NSE Set-up first in-house embroidery facility at Thekkalur 2008-13 ▪ Repayment of Loans to Streamlining of operations to integrate the reduce leverage 1989 2004 factories, increase
Slide 14: Leading Manufacturer & Exporter of Infant & Children Wear in India
COMPANY OVERVIEW LEADING MANUFACTURER & EXPORTER OF INFANT & CHILDREN WEAR IN INDIA SPAL IS A SPECIALIZED PLAYER IN THE HIGHLY CHALLENGING INFANT & CHILDREN WEAR KNITTED GARMENT INDUSTRY INDUSTRY’S UNIQUE CHALLENGES SPAL’S CORE COMPETENCIES 1 Demonstrated manufacturing excellence for over two decade
Slide 15: Preferred Vendor to Reputed International Brands
COMPANY OVERVIEW PREFERRED VENDOR TO REPUTED INTERNATIONAL BRANDS SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL BRANDS AND RETAILERS WHY SPAL? • Expertise to concurrently manage multiple large orders with a diversified product range including bod
Slide 16: Strategically Located & Integrated Manufacturing Facilities
COMPANY OVERVIEW STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES INTEGRATED BUSINESS LOCATION ADVANTAGE: MODEL • All 21 manufacturing facilities are located within a radius of ~125 km of our Registered Office near Product Development Tirupur (leading hub in India for knitted garments for
Slide 17: Strategically Located & Integrated Manufacturing Facilities
COMPANY OVERVIEW STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 17
Slide 18: Strategically Located & Integrated Manufacturing Facilities
COMPANY OVERVIEW STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 18
Slide 19: Strong In-House Design Expertise
COMPANY OVERVIEW STRONG IN-HOUSE DESIGN EXPERTISE STRONG DESIGN IS SPAL’S CORE COMPETENCY • SPAL’s core competency lies in understanding latest fashion and trends to suit the customers buying preferences. • Dedicated in-house design and merchandising team of designers located at our Corporate Office
Slide 20: Stringent Quality Controls & Compliance
COMPANY OVERVIEW STRINGENT QUALITY CONTROLS & COMPLIANCE • Strong adherence to the highest standards of quality, assurance and compliance. • Stringent quality control checks consisting of inspection and testing of fabric, greige and processed yarn, trims, accessories, packing materials and of each p
Slide 21: Building Retail Presence in India
COMPANY OVERVIEW BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 21
Slide 22: Building Retail Presence in India
COMPANY OVERVIEW BUILDING RETAIL PRESENCE IN INDIA SPAL IS STRENGTHENING ITS RETAIL PRESENCE BY EXPANDING THE REACH OF CROCODILE BRAND OUR RETAIL STORE PRESENCE • SPAL undertakes manufacturing and retailing activities in India under the ‘Crocodile’ brand. • SPAL sells wide range of adult menswear pr
Slide 23: Qualified Management with Deep Understanding of Apparel Sector
COMPANY OVERVIEW QUALIFIED MANAGEMENT WITH DEEP UNDERSTANDING OF APPAREL SECTOR Mr P. Sundararajan ` Ms S. Latha Mr S. Chenduran Chairman and Managing Director Executive Director Director Operations • Four years of experience in the • Founder director of SPAL with 32 Founder director of SPA with 25
Slide 24: Board of Directors – Wide Spectrum of Experience
COMPANY OVERVIEW BOARD OF DIRECTORS – WIDE SPECTRUM OF EXPERIENCE Mr Srinivas Chidambaram Mr A.S. Anandkumar Mr P. Yesuthasen Non Whole-time Director Independent Director Independent Director • 27 years of experience • 44 years of experience in • 41 years of experience in mainly in financial service
Slide 25: Business Strategy & Outlook
Q4 & FY17 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 26: Capacity Expansion & Backward Integration
BUSINESS STRATEGY & OUTLOOK CAPACITY EXPANSION & BACKWARD INTEGRATION Existing Business Model SPAL proposes to utilize Rs 750.7 mn from the Net IPO Proceeds towards: 1. Enhancing spinning capacity – Capex of Rs 472.4 mn Product Development • Spinning capacity from 16,896 to 22,272 spindles • Blow ro
Slide 27: Expand Retail Presence Across India
BUSINESS STRATEGY & OUTLOOK EXPAND RETAIL PRESENCE ACROSS INDIA PROPOSED EXPANSION OF RETAIL PRESENCE OVER THREE YEARS • Growing aspiration levels of people in Tier II, III and IV cities in India along with rising brand awareness and higher disposable income makes these smaller urban areas as focal
Slide 28: Financial Overview & Shareholding Structure
Q4 & FY17 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 29: Financial Overview
FINANCIAL OVERVIEW REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN CAGR: 10 % CAGR: 18 % CAGR: 126 % 9.5% 14.6% 16.0% 16.9% 6.5% 6,357 14.2% 5,328 12.8% 1.5% 2.1% 619 4,285 4,509 4,726 0.6% 853 1,073 639 689 347 550 67 100 24 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 * F
Slide 30: IPO Proceeds Utilisation
IPO PROCEEDS UTILISATION Utilization of Net proceeds as on 31st March 2017 Utilization Amount Amount Pending Particulars (Rs million) Planned Utilized Utilization Expansion and modernization of manufacturing facility 701.6 77.9 623.7 Repayment or prepayment of debt 630.0 630.0 0.0 Opening of new sto
Slide 31: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 31st March 2017 KEY SHAREHOLDERS – 31st March 2017 Goldman Sachs India Limited 5.32% Non- Institutions Ashish Kacholia 4.47% 28.0% Promoters DSP Blackrock Micro Cap Fund 3.97% 60.1% Birla Sun Life Insurance Company Ltd. 3.40% Euro Asia Agencies ltd. Hong
Slide 32: For Further Queries
FOR FURTHER QUERIES: Mr. V. Balaji Mr. Nilesh Dalvi / Mr. Yashesh Parekh Chief Financial Officer IR Consultant Email: [email protected] Email: [email protected] Contact no: 04296 714010 [email protected] Contact no: +91 9819289131 / 8108321555