Page 1 of 5 Company Profile Riba Textiles Ltd was registered on pril 1, 1989. Mr. Ravinder Garg, the Chairman, is the promoter of the company. He has thorough knowledge and experience of textile industry. Mr. mit Garg is the Managing Director of the company. He is an MB from Melbourne University ustralia. The promoter group holds 59.56% of the total shareholding, while the rest of the shareholding lies with the non-institutional shareholders. Stock Price Last Close Price 21.65 (28/01/2016) Market Cap (Cr.) 25.19 (31/12/2015) Price in Rs. 52 Wk High/Low 27.40/10.50 vg. Volume 14338.21 (1 Mo) (Rescaled to 100 for ease of comparison) Riba is a towel manufacturing company. Its manufacturing unit is situated 100 kilometres from New Delhi in the State of Haryana. It is ISO 9001:2000 certified and is a Government of India approved Star Export House. The production unit covers 16 acres of land with a built up area of 20,000 square feet. During the FY 2015, the company employed 187 permanent employees. Business Overview Riba manufactures and exports towels. It offers yarn dyed, plain dyed, embroidered, printed border bath towels and bath robes and beach towels, among others. Riba is a fully integrated textile Unit. Some of its suppliers include SMIT (Shuttleless Looms), Staubli and Bonas (Electronic Dobbies and jacquards), Heinz Hergert (Shearing), Schmaledurate (Stitching), Sophis (Cad systems) and many more covering Dyeing (Yarn and Fabric), Preparatory, Weaving, Shearing, Stitching, and Packaging. Riba has under taken expansion program to double the existing 3500 metric tonnes capacity to 7000 metric tonnes. This program entails a total capital outlay of about INR 42 crores and is slated to be completed by October 2016. Financials Revenue 51.22 68.96 75.42 93.15 116.95 Gross Margin % 8.99 13.32 23.35 17.39 26.20 Operating Income 0.36 0.88 0.92 0.98 1.00 Operating Margin % 0.70 1.27 1.22 1.06 0.85 Diluted EPS 0.33 0.86 0.74 0.81 0.65 Book Value Per Share 37.27 37.27 35.54 37.44 38.81 Operating Cash Flow -1.90 6.57 6.63 4.06 8.46 Capital Expenditure -0.48-0.30-1.48-6.76-6.07 Free Cash Flow -2.37 6.27 5.16-2.70 2.39 Profitability Return on ssets % 1.00 1.00 1.00 1.00 1.00 Return on Equity % 1.00 2.00 2.00 2.00 2.00 sset Turnover 0.88 1.17 1.27 1.50 1.76 Net Margin % 1.00 1.00 1.00 1.00 1.00 Financial Leverage 1.74 1.75 1.63 1.77 1.81 Financial Health except Debt/Equity (Ratio) Long Term Debt 21.92 3.86 1.18 4.39 3.22 Total Equity 33.53 34.30 36.14 36.92 37.45 Debt/Equity - - - - - Working Capital 27.31 10.21 10.36 9.04 5.06 Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 2 of 5 Income Statement Total Revenue 51.22 68.96 75.42 93.15 116.95 Cost of Revenue 46.61 59.77 57.81 76.96 86.31 Gross Profit 4.61 9.19 17.61 16.20 30.64 Operating Expense 7.08 8.69 16.89 15.31 31.63 Operating Income 0.36 0.88 0.92 0.98 1.00 Pre-tax Income 0.36 0.88 0.92 0.98 1.00 Tax Provision 0.06 0.10 0.20 0.20 0.37 Minority Interests - - - - - Balance Sheet Stock Holders Equity 33.53 34.30 36.14 36.92 37.45 Long Term Debt 21.92 3.86 1.18 4.39 3.22 Total Non-Current Liabilities 21.92 3.86 1.18 4.39 3.22 Payables 2.32 3.36 4.63 2.00 10.25 Total Liabilities 24.88 25.60 22.82 28.43 30.35 Net PPE 28.11 26.25 25.89 30.72 33.63 Goodwill and other Intangible ssets - - - - - Total Investments 0.03 0.71 0.03 0.03 0.03 Total Non-current ssets 28.13 27.95 26.96 32.27 35.62 Trading and Other Receivables 9.73 11.01 12.17 16.40 23.23 Inventory 20.19 20.25 17.50 16.27 8.52 Cash and Cash Equivalents 0.35 0.69 2.33 0.41 0.44 Total ssets 58.41 59.91 58.96 65.36 67.81 Cash Flows Depreciation and mortization 2.69 2.15 1.71 1.83 2.87 Change in Working Capital -4.39 5.25 1.49-0.61 4.02 Operating Cash Flow -1.90 6.57 6.63 4.06 8.46 Capital Expenditure -0.48-0.30-1.48-6.76-6.07 Investing Cash Flow 3.20-0.65-0.50-7.04-4.33 Net Common Stock Issuance - - 0.66 - - Net Issuance Payments of Debt 0.82-2.56-2.68 3.21-1.16 Cash Dividends Paid - - - - - Financing Cash Flow -1.51-5.58-4.49 1.06-4.10 Changes in Cash -0.21 0.34 1.64-1.93 0.03 Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 3 of 5 Financial Performance In FY 2015, the total revenue of the company grew by 25.6% to INR 116.9 crores versus a year ago. Higher interest expense and higher depreciation expenses pulled the operating margin lower by 21 basis points to 0.85% versus the last year. The company registered an operating income of INR 1 crores, up 2% versus the previous year. The net profit of the company stood at INR 0.63 crores, registering a decline of 19% versus the last year. Revenue Growth Key Risks With the dismantling of quota regime, China is also entering in the terry towels segment, which would increase the competition in the International market. The risks in the business include slowdown in the global and domestic economy leading to fall in the demand coupled with increase in the competitive intensity for company s terry towel product, increase in the crude price, inadequate raw material availability, increase in domestic interest rates, increase in the price of power, appreciation in Indian Rupee versus other currencies and change in government policy and regulation. Gross Margin Competitors lok Industries Ltd and Eastern Silk Industries Ltd are two of the key competitors of the company. lok Industries Ltd is an integrated textile company with presence in the cotton and polyester segments. It offers cotton yarn, apparel fabric, home textiles, garments and polyester yarn. It has four manufacturing locations in India in Silvassa, Vapi, Navi Mumbai and Bhiwandi; and also has presence in over 90 countries across US, Europe, Latin merica, sia and frica. lok Industries revenue grew by 13% in FY 2015 to INR 24153 crores versus the last year. Eastern Silk Industries Ltd is a company with multifaceted business activities including manufacture of silk yarn, fabrics and made-ups, home furnishings, fashion fabrics, handloom fabrics, double width fabrics, scarves, laces and belts, and embroidered fabrics. It has four manufacturing units two in Bangalore, one in Karnataka and one in West Bengal. There was a decline in the total revenue of the Eastern Silk Industries by 32% to INR 71.3 crores for FY 2015 versus the last year. Operating Margin Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 4 of 5 Industry Overview Indian textile industry will continue to benefit from rising exports. India's textile industry market size stood at about USD 110 billion in FY 2015. bout USD 40 billion was derived from exports while the remaining came from domestic consumption. Out of the above USD 40 billion, USD 12 billion of exports were in the form of fibers and yarns. Fiber and yarn is the raw material for the textile and apparel market. The year 2014-15 saw a decline in demand for most man-made fibres due to decline in prices of cotton yarn. bumper cotton crop has seen its prices falling below the Minimum Support Price set by the Government due to reduction in exports and lack of domestic demand by textile mills. Export demand has also weakened through the course of the year as the world saw China unload its hoarded cotton stocks, bringing global fabric prices down. Going forward, Low per capita consumption of fiber, favourable young demographics, increasing penetration of organized retail and rising income levels would continue to act as catalyst for the growth of the industry over the next few years. Indian government has allowed 100% foreign direct investment in the sector which should lead to further investment and consolidation in the sector. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue 36.81 26.34 33.03 27.18 36.18 Expenditure -35.29-11.53-7.43-6.64-6.83 Interest -0.63-0.76-0.97-0.65-0.34 PBDT 0.89 14.05 24.63 19.89 29.00 Depreciation -0.50-0.52-0.52-0.65-0.68 PBT 0.39 13.53 24.11 19.23 28.32 Tax -0.09-0.07-0.13-0.12-0.11 Net Profit 0.31 0.27-0.14 0.48 0.51 Equity 9.65 9.65 9.65 9.65 9.65 EPS 0.03 0.03-0.02 0.05 0.05 Return on Invested Capital (ROIC) *Standalone figures Report as of 29-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
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