Rswm Ltd · NSE:RSWM
Rswm — FY2016 Earnings Presentation
21 slides from Rswm's earnings presentation, 2016
Slide 1: Investors' Meeting
an UN Brieara Group Company Investors’ Meeting
Slide 2: Macroeconomic conditions
Macroeconomic conditions • Textile exports during the year 2015-16 are estimated to be $40bn vs $41bn, despite country's exports down 15%. This is despite falling average selling rates. • India's export of man-made fiber spun yarn to Turkey (our key market) continues to suffer because of anti-dumpin
Slide 3: Raw material and yarn price trends
Raw material and yarn price trends Polyester staple fibre prices fell 6% over FY15-16, whilst cotton prices firmed up by 8% Yarn prices in both cotton and polyester reached multi- year lows during the year, only recently moving higher in the last few months. 3
Slide 4: Cotton Production and Balance Sheet
Cotton Production and Balance Sheet COTTON CROP 2014-15 & 2015-16 AS PER CAB AREA(In lac Hec) PRODUCTION(In lac bales of 170 kg) YIELD(Kg per Hec) STATE 2014‐15 2015‐16* 2014‐15 2015‐16* 2015‐16** 2014‐15 2015‐16* Punjab 4.2 4.5 12 11 9 485.71 415.56 Haryana 6.47 5.86 20.5 19 17 538.64 550.91 Rajast
Slide 5: Contribution in PV and cotton yarns
Contribution in PV and cotton yarns Contribution in both PV and cotton yarn fell significantly over the course of FY15-16 5
Slide 6: RSWM's financial performance
RSWM’s financial performance Revenue fell in the FY15-16 due to lower average selling price…. …however, the operating margins improved. 6
Slide 7: Capital employed and return on capital employed
Capital employed and return on capital employed RSWM’s return on capital employed improved in the last financial year ending March 2016. 7
Slide 8: EPS and debt-equity ratio
EPS and debt-equity ratio Earnings per share (EPS) increased to INR 45 per share in FY15-16 D/E ratio has continued its downtrend and has reached 1x in the FY15-16. We plan to reduce it further in the next fiscal year. 8
Slide 9: RSWM's key operational achievements
RSWM’s key operational achievements…. 1. Reduction in labour losses across all business, with the most substantial reduction in the yarn business. This was driven by the improvement in labour losses in Kharigram. 9
Slide 10: RSWM's operational achievements in FY15-16
RSWM’s operational achievements in FY15-16…. 2. Increased focus on turnaround time as a must for all business – 3 x 7 x 25 3 days for lab dipping 7 days for sampling 25 days for bulk deliveries 10
Slide 11: Yarn business – highlight of the year
Yarn business – highlight of the year Launch of RSWM EDGE – a premium range of innovative yarns catering to a variety of applications like active wear, protective wear, knitwear etc. Long gestation period from sampling to final commercialisation of products. Niche target market like brands (GAP,
Slide 12: Fabric business – highlights of the year
Fabric business – highlights of the year To promote more value added fabric, our focus is for making and marketing value added products through Domestic Dealers and also through Indian popular Brands (Mufti, Killer, Spykar,Pepe, Oxford, 7th Sin, Siyaram, Arvind Brands, VF Brands India etc.) Targ
Slide 13: RSWM's ABP for FY16-17 - yarn
RSWM’s ABP for FY16-17 - yarn 1. Most operational parameters and norms of production for ABP FY16- 17 is set to Jan, Feb, March of FY 15-16. We have taken the basis of January, February, March as these months have performed better through various initiatives taken as part of NFABP during April to De
Slide 14: RSWM's ABP for FY16-17 - fabric
RSWM’s ABP for FY16-17 - fabric 1. That norms of production, RPM , Machine Speed etc. i.e. all related to plant operation will remain same as of ABP FY 15-16. 2. Operational Team will support with quality in consistency and New Product continuously. 4. Operational Gain to improve through CIP/Kaizen
Slide 15: Financial Highlights
Financial Highlights 2015-16 15
Slide 16: Profit & Loss – Q4 FY
Profit & Loss – Q4 FY ` in Cr. 4th 3rd Particulars QTR QTR Full Year 15-16 14-15 15-16 15-16 14-15 Export Value 258 268 251 908 1032 Domestic Value 519 498 503 2059 1982 Total Turnover 777 766 755 2966 3014 Less Excise Duty 2 3 3 12 11 Net Turnover 775 764 752 2955 3003 Inc./Dec. in stock -33 -52 -2
Slide 17: Profit & Loss – % of Total Income
Profit & Loss – Q4 FY % of Total Income 4th 3rd Particulars QTR QTR Full Year 15-16 14-15 15-16 15-16 14-15 Export Value 33.2 35.0 33.3 30.6 34.2 Domestic Value 66.8 65.0 66.7 69.4 65.8 Total Turnover 100.0 100.0 100.0 100.0 100.0 Raw-Material 52.88 54.45 54.95 54.51 58.86 Packing Expenses 1.47 1.50
Slide 18: Balance Sheet
Balance Sheet ` in Cr. FY Description 15-16 14-15 Share Capital- Equity 23 23 Preference Share/ PS Suspense 10 10 Capital Subsidy 4 2 Free Reserves 480 409 Net Worth 517 445 Non Current Liabilities Long Term Borrowings 554 669 Other Long Term Liabilities 7 7 Long Term Provisions 6 4 Deferred Tax Lia
Slide 19: Key Financial Ratios
Key Financial Ratios FY Description 15-16 14-15 Return on Cap Employed % 13.18 11.88 Return on Net Worth % 20.52 19.08 Return on Sales % 3.59 2.83 O. P. M. % 14.22 12.57 Asset Cover Ratio (FA) -Without CPTL 2.06 1.73 Asset Cover Ratio (FA+Inv.) -Without CPTL 2.22 1.87 Long Term Debt Equity Ratio -Wi
Slide 20: Current Assets & Liabilities
Current Assets & Liabilities ` in Cr. Current Assets Current Liabilities Particulars Mar-16 Dec-15 Mar-15 Particulars Mar-16 Dec-15 Mar-15 Inventories Sundry Creditors 49 49 87 Raw Material Other Liabilities & Provisions 308 305 296 Cotton 117 65 100 Working Capital Loans From Banks 484 459 447 Othe
Slide 21: Thanks
ASW Limited an UN Brieara Group Company PROUD TO BE INDIAN >RIVILEGED TO BE GLOBAL! Thanks