S.p. Apparels Ltd. · NSE:SPAL
S.p. Apparels — Q3 FY2017 Earnings Presentation
30 slides from S.p. Apparels's earnings presentation, February 2017
Slide 1: Q3 & 9M FY17 Results Update
Q3 & 9M FY17 RESULTS UPDATE FEBRUARY 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 – 9M FY17 Results
KEY HIGHLIGHTS – 9M FY17 RESULTS 27% YoY Growth in Total Revenues 45% YoY Growth in Adj. EBITDA Adj. EBITDA margin % increased by 235 bps from 16.5% to 18.8% 91% YoY Growth in PAT PAT margin increased by 310 bps from 6.2% to 9.3% 1. Total revenues include realised gain on account of foreig
Slide 4: Q3 & 9M FY17 Results Update
Q3 & 9M FY17 RESULTS UPDATE Company Overview Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 5: Q3 & 9M FY17 Results Key Highlights
Q3 & 9M FY17 RESULTS KEY HIGHLIGHTS 9M FY17 YoY ANALYSIS In Rs Mn REVENUES Adj. EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 4,899.5 16.5% 18.8% 13.9% 9.3% 9.2% 6.2% 3,847.7 923.0 679.2 456.4 634.5 355.3 239.3 27 % 45 % 91 % 91 % 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M
Slide 6: Division Wise Analysis
Q3 & 9M FY17 RESULTS DIVISION WISE ANALYSIS In Rs Mn Q3 FY17 YoY ANALYSIS – TOTAL REVENUE BREAKUP 9M FY17 YoY ANALYSIS – TOTAL REVENUE BREAKUP 1,539.6 4,899.5 1,356.4 414.1 132.6 3,847.7 101.8 30 % 244.2 70 % 1,254.6 1,407.0 4,485.4 3,603.5 12 % 25 % Q3 FY16 Q3 FY17 9M FY16 9M FY17 Garments Retail G
Slide 7: Result Analysis
9M FY17 RESULTS RESULT ANALYSIS FINANCIAL UPDATE: • 9M FY17 total revenues saw robust growth of 27% YoY to Rs 4,899.5 mn. • Revenue growth of 25% in garments division and 70% in retail division. • Growth in garments division driven by increase in existing customer orders supported by increase in cap
Slide 8: Consolidated Profit & Loss Statement
Q3 & 9M FY17 RESULTS CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY17 Q3 FY16 YoY % 9M FY17 9M FY16 YoY % Revenue from Operations 1,329.0 1,256.1 5.8% 4,355.5 3,544.0 22.9% Other Operating Income 152.8 103.5 47.7% 420.1 287.8 46.0% Gain on account of Foreign Currency Fluctuations
Slide 9: Company Overview
Q3 & 9M FY17 Results Update COMPANY OVERVIEW Business Strategy & Outlook Financial Overview & Shareholding Structure
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: Strategically Located & Integrated Manufacturing Facilities
COMPANY OVERVIEW STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Spinning Dyeing 15
Slide 16: Strategically Located & Integrated Manufacturing Facilities
COMPANY OVERVIEW STRATEGICALLY LOCATED & INTEGRATED MANUFACTURING FACILITIES Printing Automated Embroidery Sewing Automated Sewing Assembly Line Semi-Automated Inventory Management 16
Slide 17: 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 18: 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 19: Building Retail Presence in India
COMPANY OVERVIEW BUILDING RETAIL PRESENCE IN INDIA SPAL’s PRESENCE ACROSS LARGE FORMAT STORES 19
Slide 20: 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 21: 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 • Three years of experience in the • Founder director of SPAL with 31 Founder director of SPA with 24
Slide 22: 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 • 26 years of experience • 43 years of experience in • 40 years of experience in mainly in financial service
Slide 23: Business Strategy & Outlook
Q3 & 9M FY17 Results Update Company Overview BUSINESS STRATEGY & OUTLOOK Financial Overview & Shareholding Structure
Slide 24: 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 25: 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 26: Financial Overview & Shareholding Structure
Q3 & 9M FY17 Results Update Company Overview Business Strategy & Outlook FINANCIAL OVERVIEW & SHAREHOLDING STRUCTURE
Slide 27: Financial Overview
FINANCIAL OVERVIEW REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN CAGR: 8 % CAGR: 16 % CAGR: 145 % 6.5% 5,328 14.6% 16.0% 4,726 14.2% 4,285 4,509 12.8% 1.5% 2.1% 0.6% 853 347 639 689 550 67 100 24 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 * EBITDA EBITDA Margin PAT PAT Margin * E
Slide 28: IPO Proceeds Utilisation
IPO PROCEEDS UTILISATION Utilization of Net proceeds as on 31st December 2016 Utilization Amount Amount Pending Particulars (Rs million) Planned Utilized Utilization Expansion and modernization of manufacturing facility 701.6 75.3 626.3 Repayment or prepayment of debt 630.0 630.0 0.0 Opening of new
Slide 29: Shareholding Structure
SHAREHOLDING STRUCTURE SHAREHOLDING PATTERN – 31st DECEMBER 2016 KEY SHAREHOLDERS – 31st DECEMBER 2016 Goldman Sachs India Limited 5.32% Public DSP Blackrock Micro Cap Fund 3.97% 27.9% Promoters Birla Sun Life Insurance Company Limited 3.79% 60.1% Ashish Kacholia 3.68% NYLIM 1.99% UTI- Balanced Fund
Slide 30: 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: 0429630400 [email protected] Contact no: +91 9819289131 / 8108321555