FILATEX INDIA LIMITED

Transcription

1 FILATEX INDIA LIMITED CIN No.L17119DN1990PLC FIL/S E/ /16 5th June, 2018 National Stock Exchange of India Limited Listing Department 5th Floor, Exchange Plaza, C -l, Block-G, Bandra-Kurla Complex, Bandra (E) Mumbai Security Symbol: FILATEX The Bombay Stock Exchange Limited Listing Department 25th Floor, Pheroze Jeejeebhoy Towers Dalai Street, Mumbai Security Code Sub: Investor Presentation - Mav 20i8 Dear Sirs/ Madam, Pursuant to Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with Para A of Part A of Schedule III, please find enclosed herewith the updated Investor Presentation - May 2018 which we propose to share with Analysts & Investors. This is for your information and records please. Thanking You, Yours faithfully, For FILATEX INDIA LIMITED COMPANY SECRETARY CORPORATE OFFICE REGD. OFFICE & WORKS SURAT OFFICE MUMBAI OFFICE Bhageria House 43 Community Centre New Friends Colony New Delhi , India S. No. 274 Demni Road Dadra U.T. of'dadra & Nagar Haveli India P , /44 P /8610 F F Bhageria House Ring Road Surat India P F , Maker Chamber - V Nariman Point Mumbai India P /06 F E fildelhi@filatex.com E fildadra@filatex.com E filsurat@filatex.com E filmumbai@filatex.com Website: w w w.filatex.com

2 Filatex India Limited Investor Presentation May 2018

3 Disclaimer This presentation and the accompanying slides (the Presentation ), which have been prepared by Filatex India 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 securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2

4 Content Company Overview 04 Textile Market 15 Growth Drivers 18 Results Summary 21 Financial Overview 26 Shareholder Information 34 FIL Investor Presentation

5 Company Overview

6 About Us About Us FILATEX INDIA LIMITED is in the business of manufacturing of synthetic filament yarns having a wide range of products. It has been an interesting journey as the promoters made a successful transition from trading of different varieties of synthetic yarns to manufacturing. After two decades of trading activities of yarns, Filatex India was incorporated on 8 August 1990 to enter into manufacturing and now successfully running 2 production facilities in Dadra & Nagar Havelli (UT) and Dahej (Gujarat). Our mission To attain highest level of good quality, integrity and honesty To encourage people's ownership, empowerment and working under team structure To manufacture at an effective cost that provides our customers a competitive advantage Strive to maintain an edge over its competitors due to consistent product quality and low operating cost Our values Our vision To be one of the leading polyester yarns manufacturing by producing products comparable to international standards, to be customer-focused through better quality, latest technology and continuous innovation. Integrity and Honesty in Business Customer Satisfaction & Delight Encourage Creativity & Innovation to drive people, product & processes To promote safe work practices To protect the environment & community 5

7 Key Facts And Figures ( in Crore) REVENUE (Net O f E x c i s e D u t y ) 2 34 ~2000 1,573 1, EBIDTA Manufacturing units Countries global export Employees ,000 MT 328,300 TPA PAT 60 Production Capacity (FY ) Production Capacity (FY )

8 History/ Milestone Incorporated in August Diversified into Speciality Polyester Filaments Yarn at Dadra ( U.T Dadra and Nagar Haveli). Commenced Production of POY and Textured Yarns Commenced production of Fully Drawn Yarns FDY in Dadra using latest machine from BARMAG, GERMANY 2016 Commenced production of 115 TPD of Fully Drawn Yarns -FDY at Dahej in March 2016 and added capacity of Drawn Textured Yarns -DTY. Commenced production of 200 TPD in Sep 2016 Commenced Production of Mono Filament Yarns at Noida Added manufacturing of Poly polypropylene yarns at Dadra Plant 1998 Set-up of Poly-Condensation plant of 600 TPD capacity along with 250 TPD Spinning of POY and 350 TPD of Chips at Dahej, Gujrat Commissioned successfully bright Polymerization capacity of 300 TPD to manufacture 190 TPD of FDY, 25 TPD of POY, 85 TPD of Bright Chips at Dahej, Gujrat

9 Production Process Flowchart RAW MATERIALS TO FINISHED PRODUCTS AT DAHEJ PLANT MEG PTA POY DTY FDY PARTIALLY ORIENTED YARN DRAW TEXTURIZING YARNS FULLY DRAWN YARN Catalyst PTA PASTE TANK 900 TPD ESTERIFICATION REACTOR TPD 300 TPD TiO2 ESTERIFICATION REACTOR-2 BaSo4 ESTERIFICATION REACTOR-2 SEMI DULL STREAM PRE POLY REACTOR PRE POLY REACTOR BRIGHT STREAM FINISHER REACTOR FINISHER CHIPS POY FDY CHIPS POY FDY 180 TPD 280 TPD 140 TPD 85 TPD 25 TPD 190 TPD DTY 200 TPD 8

10 Board Of Directors Mr. Madhu Sudhan Bhageria Chairman & Managing Director Mr. Purrshottam Bhaggeria Joint Managing Director Mr. Madhav Bhageria Joint Managing Director Mr. Ashok Chauhan Wholetime Director Mr. S. P. Setia Independent Director Mr. S. C. Parija Independent Director Ms. Pallavi Joshi Bakhru Independent Director Mr. B. B. Tandon Independent Director 9

11 Geographical Presence Exporting to 34 countries across the Globe Over 50% of DTY production are exported Exports contributed ~20% to overall Revenues as on FY18 Manufacturing Facilities : 2 Dadar & Nagar Havelli (UT) Dahej (Gujarat) Marketing Office : 3 New Delhi Canada USA Mexico Ecuador Chile Peru Domican Republic Colombia Argentina Brazil Portugal Morocco UK Germany Algeria Egypt Latvia Poland Italy Slovenia Spain S. Africa Turkey Kenya Iran Dubai New Delhi Uzbekistan South Korea Nepal Bangladesh Thailand Vietnam Indonesia Capacity increased From 500 MTPA To 328,300 MTPA Surat Mumbai Corporate Office New Delhi Surat Mumbai Dahej Dadra 10

12 Diversified Product Portfolio We have Semi dull and Bright which are diversified in following products. Polyester Chips 1 Industrial intermediate product used to manufacture Polyester yarns. Polyester Partially Oriented Yarns (POY) 2 Intermediate product, post Texturizing used for producing different kinds of Fabrics. Drawn Textured Yarn (DTY) 3 Produced by processing POY through a texturing process used for manufacturing Fabrics. Fully Drawn Yarns (FDY) 4 Type of Fully drawn polyester filament yarn which is directly used for producing all kinds of Fabrics specially for children and ladies. Polypropylene Multifilament Crimp Yarns 5 Different shades and deniers, the range being used for Socks, Under Garments and Sports Wear. Narrow Woven Fabric 6 Used in manufacture of Carpets, Rugs, Tapes, Ribbons and Zippers 11

13 Catering To Diverse End Users In these garments, seam softness is critical. The Textured Micro Denier have met the expected requirements and are being used in Lingerie, Performance garments - Active wear, Yoga wear, low shrinkage to ensure no seam distortion after washing & soft feel make these yarns ideal choice. The preferred material for sportswear is Polyester Yarn. Sports leisure clothings require a fabric that s not only strong & durable but also abrasion resistant. Ease of washing & corrosion resistance make them easy to maintain with longer usage life. Apparel Home Textiles & Furnishings Women Wear & Under Garments Sportswear Polyester Filament Yarns are extensively used in apparels Trousers, Shirts, Suitings & Sarees. PFY is a strong filament that can withstand strong & repetitive movements. Colour Fastness of Polyester Fiber is excellent. Its wear resistant, water resistant, wrinkle resistant and hydrophobic properties make it ideal for all kinds of apparels. Fully Drawn Yarn of Polyester are being used for Home Furnishings, Fashion Fabrics, Terry Towels, Bed Sheets, Curtains & Carpets. Other growing applications are Upholstery Fabrics. Stain resistance makes it ideal for carpets. 12

14 Certifications ISO ISO OHSAS Standard 100 by Oeko-Tex ISO ISO

15 Production Capacities PRODUCTION CAPACITIES - FY Net Capacity (Post Expansion Net of Captive) Products (MTPA) Production Captive Net %age Polyester Chips - Semi Dull 64,600 22,900 41, % 1% 13% Polyester Chips - Bright 31,000 13,300 17, % 24% 5% Polyester POY - Semi Dull 123,700 76,000 47, % Polyester POY - Bright 9,000-9, % Polyester DTY - Semi Dull 75,900 1,100 74, % 3,28,300 TPA 15% Polyprobplyne DTY- Semi Dull 4,800-4, % 15% 3% Polyester FDY - Semi Dull 50,300-50, % Polyester FDY - Bright 81,200 1,400 79, % 1% 23% Narrow Woven Fabrics 2,500-2, % Grand Total 443, , , % Polyester Chips - Semi Dull Polyester Chips - Bright Polyester POY - Semi Dull Polyester POY - Bright Polyester DTY - Semi Dull Polyprobplyne DTY- Semi Dull Polyester FDY - Semi Dull Polyester FDY - Bright Narrow Woven Fabrics 14

16 Textile Market

17 Textile Industry Global Textile industry is projected to reach US$ 1600 billion by 2025 from US$ 745 billion in The Textile industry in India is projected to reach US$ 250 billion by 2019 from US$ 150 billion in Indian Textile Industry Contribution Market share of major exporting nations GDP 4% Favorable India Industrial Production 14% IIP 14% Country s total exports 15% 2nd largest manufacturing capacity in the world (Data as on 2017) 34% 39% India and China have complete value chain of textile business i.e. from fibre to finished products. Bangladesh and Vietnam have strong garment manufacturing capacity but very limited backward linkages to support the competitiveness. India is one of the most cost competitive textile manufacturing base for entire value chain of Textiles & Apparels. Labour cost in India is lower than most of the competing countries except Bangladesh, Ethiopia and Kenya. Although power cost is on the higher side but still cheaper than China and Cambodia. Importers look at India as an alternative of China due to quality, its cost competitiveness, better adherence to compliance and political stability. This can be seen as structural changes are in favour of India Source - IBEF, Textilemates.com, Grand View Research, Inc. 3% 3% 3% 4% 4% 5% 5% China India Italy Germany Turkey USA Bangladesh Vietnam Others 16

18 Global Apparel Industry Global Apparel Market Size (in US$ billion) o The current Global apparel market is estimated at approximately US$ 1.15 trillion which forms nearly 1.8% of the world GDP CAGR: ~5% o Almost 75% of this market is concentrated in EU-27, USA, China and Japan. o The next largest markets are Brazil, India, Russia, Canada, and Australia, in descending order with a share of approximately 18%. EU-27 USA China Japan Brazil India Russia Canada Australia Rest of the world Global Apparel Market is expected to grow at 5% where as Indian Apparel Market is expected to grow at 12%. Per Capita Spend on Apparel (in US$) ,131 o The lowest per capita spending is on apparel among these markets is of India (US$ 37). o Australian per capita spending on apparel is highest one with US$1131.If we compare, then Indian people spend only 4% compared with Australian per capita spend on apparel. I N D I A C H I N A G L O B A L B R A Z I L R U S S I A EU- 27 U S A J A P A N C A N A D A A U S T R A L I A Source - IBEF, Textilemates.com, Grand View Research, Inc. 17

19 Growth Drivers

20 Growth drivers (1/2) Increasing Per Capita Income Rapid Urbanization Government Policies o India s per capita disposable income increased from 73,476 in fiscal 2012 to 107,817 in Fiscal 2016 (base year Fiscal 2012, at current prices, inclusive of other current transfers (net) from rest of the world). o Increased disposable income simulated the demand for value-added products. The demand for premium apparel is likely to increase adding to the feel good factor, catalyzing polyester demand. o According to projections, an estimated 140 million Indians could move to cities by 2020 and 700 million by o Besides, the number of cities with population above one million could nearly double with increase in the number of mega-cities (above five million) to 10 by 2021 and 36 by o Urbanization is expected to result in a growing demand for fashionable products, durable garments and fabric that meet aesthetic requirements. o The new indirect tax regime is expected to enhance compliance, uniform tax rates and structure with the removal of cascading taxes resulting in lower transaction costs. o The polyester yarn industry is likely to benefit. Major yarn producers are likely to cater the fabric and garment sector after rationalization of GST. o Now, Fabric and Garment sector will see a good investment from organized sector. 19

21 Growth drivers (2/2) Anti-dumping Increasing Exports Home Textile Industry o Exports to China were only USD 9 billion in FY , but imports totaled USD 61.7 billion. o India is probing an inspection and likely to impose an anti-dumping policy that could drive the domestic synthetic yarn sector. o Anti-dumping duties provide a level playing field to the local industry against cheap imports. o Capacity built over years has led to low cost of production per unit in India s textile industry; this has lent a strong competitive advantage to the country s textile exporters relative to key global peers. o The sector has also witnessed increasing outsourcing over the years as Indian players moved up the value chain from being mere converters to vendor partners of global retail giants. o Textile exports witnessed a growth (CAGR) of 6.89 per cent over the period of FY06 to FY17. In the coming decades, Africa and Latin America could very well turn out to be key markets for Indian textiles. o India s home textile industry is expected to expand at a CAGR of 8.3 per cent during to US$ 8.2 billion in 2021 from US$ 4.7 billion in o India accounts for 7 per cent of global home textiles trade. Superior quality makes companies in India a leader in the US and the UK, contributing two-third to their exports. o The growth in the home textiles would be supported by growing household income, increasing population and growth of end use sectors like housing, hospitality, healthcare, etc. 20

22 Results Summary

23 Result Summary Q4FY18 On standalone basis ( in Crore) REVENUE (Net Of Excise Duty) EBIDTA PAT Q 4 F Y 1 7 Q 4 F Y 1 8 Q 4 F Y 1 7 Q 4 F Y 1 8 Q 4 F Y 1 7 Q 4 F Y 1 8 EXPORTS YARN (MTPA) CHIPS (MTPA) ,215 54,517 10,287 9,093 Q 4 F Y 1 7 Q 4 F Y 1 8 Q 4 F Y 1 7 Q 4 F Y 1 8 Q 4 F Y 1 7 Q 4 F Y

24 Result Summary FY18 On consolidated basis ( in Crore) REVENUE (Net Of Excise Duty) EBIDTA PAT 1, , EXPORTS YARN (MTPA) CHIPS (MTPA) ,863 33, ,344 29,

25 Production Split by Volume FY17 FY18 0% 13% 1% 8% 1% 15% 2% 35% 18% 1% 25% 1,89,945 MT 1% 1% 2,21,422 MT 23% 24% 32% 0% Polyester POY Fully Drawn Yarn Drawn Textured Yarn Polypropylene Yarn Polyester Chips Other Polyester Chips - Semi Dull Polyester Chips - Bright Polyester POY - Semi Dull Polyester POY - Bright Polyester DTY - Semi Dull Polypropylene POY- Semi Dull Polypropylene DTY Polyester FDY - Semi Dull Polyester FDY - Bright Narrow Woven Fabrics Monofilament Yarns 24

26 Profit & Loss Q4FY18 & FY18 On standalone basis ( in Crore) Particulars Q4FY18 Aaudited Q4FY17 Audited Y-o-Y (%) FY18 Audited FY17 Audited Y-o-Y (%) Net Income from Operations % % Expenses % % Profit from Operations before Other Income, Finance Costs and Exceptional Item % % Other Income % % Profit from ordinary activities before Finance Costs, Depreciation and Exceptional Item % % Depreciation % % Finance costs % % Profit from ordinary activities before exceptional item and tax % % Exceptional item Profit from ordinary activities before tax % % Tax % % Net Profit for the period % % Other Comprehensive Income/(Loss) Items not to be reclassified to profit or loss Income tax relating to items not to be reclassified to profit or loss Total Comprehensive Income for the Period (Comprising Profit/(Loss) and other comprehensive Income for the period % % 25

27 Financial Overview

28 Strong Financial Performance Revenue (Net of excise duty) EBIDTA & EBIDTA Margin (%) ( in Crore) 1, , , , EBIDTA ( in Crore) CAGR = 7.02% CAGR = % EBIDTA Margin PBT ( in Crore) & PBT Margin (%) PAT ( in Crore) & PAT Margin (%) PBT ( in Crore) PBT Margin (%) PAT ( in Crore) PAT Margin (%) CAGR = % CAGR = 84 % 27

29 Strong Financial Performance Net Working Capital Net Worth ( in Crore) (Note: Current liabilities excluding current maturity of long term loans & capital creditors and Current assets including assets held for sales) ROE (%) & ROCE (%) (Note: Including unsecured loans taken as quasi equity) Debt to Equity (X) (Note: ROE: Shareholders equity excluding reserves created for specific purpose. ROCE: Including short term borrowings) ROE (%) ROCE (%) Note: Unsecured loans from Promoter's associates are taken as quasi equity 28

30 Disciplined Capital Allocation Tangible Net-worth ( in Crore) 1.6X FY16 FY17 FY18 29

31 Operational Performance Exports ( in Crore) Chips Volume (MTPA) Yarns Volume (MTPA) , , , ,072 29,368 33, , ,

32 Balance Sheet (1/2) On consolidated basis Particulars ( in Crore) Equity & Liabilities Shareholders' Fund Share Capital Other Equity-Reserves & Surplus Money received against share warrants Total Shareholders Fund Non - Current Liabilities Long term borrowings Unsecured borrowings/ Quasi equity Deferred tax liability (Net) Other Long term liabilities Long term provisions Total Non Current Liabilities Current Liabilities Short term borrowings Trade Payables Other current liabilities Current maturity of long term loans Short term provisions Current Tax Liabilities 1.12 Total Current Liabilities Liabilities directly associated with assets classified as held for sale Total

33 Balance Sheet (2/2) On consolidated basis Particulars ( in Crore) ASSETS Non - Current Assets Fixed Assets Tangible assets Intangible assets Capital work in progress Non-current Investments Long term loans and advances Other non-current assets Total Non Current Assets Current Assets Inventories Trade receivables Cash & bank balances Short term loans & advances Other current assets Total Current Assets Asset Classiffied as held for sale Total

34 Profit & Loss On consolidated basis Particulars Revenue from operations (gross) 1, , , , Less : Excise duty Revenue from operations (net) 1, , , , Other Income Total Revenue 1, , , , Expenses Cost of material consumed 1, , , Purchases of traded goods (Increase)/decrease in Inventories of finished goods work in progress & stock in trade Employee benefits expense Finance cost Depreciation & amortization expense Other Expenses Total Expenses 1, , , , Profit/(loss) before exceptional items & tax Exceptional Items [Profit/(Loss)] Profit/(loss) before tax Tax Expense: Current tax (MAT) MAT credit entitlement Taxation for earlier years Deferred tax Total tax expense Net profit/(loss) after tax Other Comprehensive Income/(Loss) Items not to be reclassified to profit or loss Income tax relating to items not to be reclassified to profit or loss Comprehensive Profit/(Loss) for the Period Earnings Per Share (EPS) in Rupees -Basic Diluted ( in Crore) 33

35 Shareholder Information Stock Data (As on 07 th May 2018) Market Capitalization ( ) 952 Cr. Shareholding Pattern (As on 31 st march 2018) 5.17% Promoters Shares Outstanding 4.35 Cr. Free Float 1.26 Cr. Symbol (NSE/ BSE) FILATEX / Average Daily Volume (3 months) 1,96, % 57.99% Non-Institution Domestic Institutional Investors Base = 100 Source: BSE, Thomson Reuters Filatex India Limited Sensex 34

36 Filatex India Limited BHAGERIA HOUSE, 43 Community Centre, New Friends Colony, New Delhi Ph: Fax: CIN: L17119DN1990PLC Thank You Investor Relations Advisors: S-ANCIAL TECHNOLOGIES PVT. LTD Ronak Saraf 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Lower Parel (E), Mumbai , Tel: