Stylam Industries Limited has informed the Exchange about Investor Presentation
Ref . No. : StL/ CHD / 2022-73 / 2fiO?O22
oated: 27.70.2022
The Manager Listing Department BSE Limited (BSE) Corporate Relation Department, Phiroze Jeejeebhoy Towers,25rH Floor Dalal Street, Mumbai-400001
The Manager, Listing Department, National Stock Exchange of lndia Ltd (NSE) Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra, Mumbai -400051
BSE Scrip Code: 525951
Trading Symbol: STYLAMIND
5ub: lnvestor Presentation fo r the uarter and half vear ended September 30,2022
Dear 5ir/Madam,
Pursuant to Regulation 30 of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations, 2015, Please find enclosed the Presentation for the quarter and half year ended September 30,2022.
This is for your information and record
Thanking You,
For Stylam lndustries Limited
Sanjeev Kumar Sehgal
company Secretary & Compliance officer
Stylam lndustries Limited Regd.office:Scol4,SectorTC,MadhyaMarg,Chandigarh(lNDlA)-160019,T:+91-',I72-5021555/5021666'Ft+91'112'5021|495 Works l: Plot No' 192-193, lndustrial Area prras-e-t, pancnkula (Haryana) INDIA - 134109, T: + 91-172.2563907 /2565387 Wotks lliVillage ManakTabra towards Raipur Rani' Mattewala-Chowk' Distt Panchkula (Haryana) W: www.stylam.com, CIN: L2021l aH 1991'PLC01 1732 (Govt of lndia recognised Star Export House)
Sanjeev Kumar SehgalDigitally signed by Sanjeev Kumar Sehgal Date: 2022.10.21 13:00:52 +05'30' S T Y L A M I N D U S T R I E S L I M I T E D
I N V E S T O R P R E S E N T A T I O N
Q 2 F Y 2 3 – O c t o b e r 2 0 2 2
Table of Contents
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C O R P O R A T E O V E R V I E W
P R O D U C T P O R T F O L I O
I N F R A S T R U C T U R E & P R E S E N C E
M A R K E T I N G I N I T I A T I V E S
C E R T I F I C A T I O N S & A W A R D S
F I N A N C I A L U P D A T E S
V I S I O N 2 0 2 5
Stylam Industries Limited
2
Corporate Overview
•
Stylam Industries is the one of the fastest growing companies in the high-quality decorative laminates and allied products industry.
• We operate Asia’s largest single location laminate manufacturing plant with a diverse product portfolio, catering to a wide range of customer preferences, built with over 30 years of experience in the industry.
• We are a pioneer in India for introducing the PU+ Lacquer Coating process thereby producing high quality, high value-add laminate finishes. Apart from laminates, we have state of the art technologies and manufacturing facilities for Solid Acrylic Surfaces and Panels.
• We also diversified into a new segment and added a short cycle press capacity for lamination
of impregnated paper on Medium Density Fiber (MDF) panels.
• About two-third of our revenues are derived from exports to over 65 countries; the balance
being derived from our presence across the Indian subcontinent.
Stylam Industries Limited
3
Diversified Product Portfolio (1/3)
Stylam laminates have set benchmarks in the past because of the unique design range and consistently high quality.
FASCIA brings a unique façade system, manufactured using special quality resins, thereby providing effective weather protection.
CUBOID - modular restroom and locker cubicle systems. The range has been crafted with the finest materials and highest quality of fixtures and fittings.
Marvella Solid Surfaces; the perfect recipe for an exquisite décor. These surfaces offer unseen and spellbinding patterns along with long-lasting sturdiness.
Anti-Fingerprint Laminates are used in the most demanding interior design applications. A unique technology during manufacturing ensures that finger marks are almost never visible.
GLOSSPRO+ Laminates are crafted with State-of-the-art machines having a cutting- edge German Technology. The brilliance of gloss shall stay through years without any signs of wearing out.
Granex Solid Surfaces is an extremely versatile product - tough, durable, non-porous and repairable, that can be customized to integrate seamlessly.
ANTI-BACTERIAL & ANTI-FUNGIE LAMINATES
Anti-bacterial & Anti-fungie Laminates are intended for applications where there is a need for additional protection on the surfaces against bacteria/fungie.
Stylam Industries Limited
4
Diversified Product Portfolio (2/3)
What makes UNICORE unique is the identical colour of the decorative surface and its core layers as well.
Digital Laminates have just the features everyone has needed. A whole new world of creative and quality laminates among customized designs.
Stylam Synchro Laminates have the real feel of wood and an elegant natural look while carrying all advantages of a laminate.
Plus Guard Stylam Laminate provides a highly durable surface in lab conditions and has better abrasion and scratch resistance.
SYNCHRO LAMINATES
CHEMICAL RESISTANT LAMINATES
POST FORMING LAMINATES
MAGNETIC LAMINATES
MIRROR SHIELD LAMINATE
CHALK BOARDS & MARKER BOARDS
Post Forming Laminates enhance the decorative property of the edges of any regular laminate by ensuring no seams around the corners and a smooth, evenly laminated surface.
Magnetic Laminates have a strong magnetic effect and can be written on with chalks or special board markers. They are ideal for a wide variety of applications.
Mirror laminates are considered ideal for adding flair to light duty, horizontal or vertical applications. They can be used on walls, furniture, retail fixtures, signages, exhibits and display areas.
Chalkboard Laminate is the perfect solution for any space or application that demands a durable and affordable writing surface.
Stylam Industries Limited
5
Diversified Product Portfolio - Multiple Applications (3/3)
Stylam Industries Limited
6
Manufacturing Infrastructure: One of the largest in Asia (1/2)
Stylam Industries Limited
7
Manufacturing Infrastructure: State of the Art Facilities (2/2)
• Stylam operates one of the largest single location laminate manufacturing plants in Asia,
spread across 44 acres having an annual capacity of 14.3 mn sheets.
• We are a Global Pioneer for the ‘Hot Coating Process’ of PU+ Lacquer coating on thin laminates. This one-of-a-kind Hot Coating Process machine is made with a patented technology by KLEIBERIT and BARBERAN.
• We are also a Pioneer in India for Solid Acrylic Surfaces, setting up the first production line to
manufacture these products in India.
• We recently received a Certification from NSF International, USA for our Solid Acrylic Surface
products.
• Over 1,200 employees devote themselves to Stylam and its vision with a smile daily.
Stylam Industries Limited
8
Strong Global & Domestic Presence
Well penetrated globally as well as a wide domestic presence
Global presence in over 65 countries across Europe, Middle & Far East, the Americas (North and South), Asia, Africa and other geographies;
Increasing domestic presence across the country.
Stylam Industries Limited
9
Marketing Initiatives
Stylam Industries Limited
1 0
Recent Certifications
• Stylam’s status has been upgraded to “Three Star Export House” from the earlier
“Two Star Export House” as per the Foreign Trade Policy provisions.
• NSF International, USA recognized and certified Stylam authorizing the
Company to bear the NSF mark.
• Our Company is certified under the AEO programme (Authorized Economic
Operator) by the Indian Customs.
Stylam Industries Limited
1 1
Awards & Recognitions
“Over the last three decades we have strived to achieve our dream which has been a constant endeavor. We aim to improve each day and these recognitions motivate us to aim higher and perform better.”
The ISO 9001:2015 certification is a hallmark of integrity, quality and reliability. The design and efficiency of the laminates have earned us the CE Marking Award.
Stylam takes pride in being recognized as:
Export House by the Government of India, meeting all the quality, safety and green standard requirements while operating as a responsible corporate citizen.
Recognised by Financial Times and Statista as one of the FT 1,000 High-
Growth Companies Asia-Pacific 2018.
Honored with the Power Brands Rising Star Award 2016.
Honoured by the Renewable Energy Department for commendable work in
adopting energy conservation measures under the L.T. Industry Category.
Stylam Industries Limited
1 2
Summary Financial Performance (Consolidated)
(₹ crore)
Net Revenue
EBITDA
PAT
(₹ crore)
Net Revenue
EBITDA
PAT
Stylam Industries Limited
Q1FY23
Q2FY23
Q3FY23
Q4FY23
YTD FY23
235
35
21
246
40
24
-
-
-
-
-
-
481
75
45
Q1FY22
Q2FY22
Q3FY22
Q4FY22
FY22
131
26
14
172
24
15
177
33
16
180
20
17
659
104
61
1 3
Quarterly Sales Performance
172
104
68
177
114
63
180
111
69
131
92
39
235
169
66
246
164
82
Q1FY22
Q2FY22
Q3FY22
Domestic
Q4FY22
Q1FY23
Q2FY23
Exports
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 4
Profit and Loss (Consolidated)
(₹ crore)
Net Revenue
Material Consumption
Contribution
Contribution Margin (%)
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation and Amortization
Less: Exceptional Items
PBT
PBT Margin (%)
Tax Expense
PAT
PAT Margin (%)
Sheets Sold (# mn)
Stylam Industries Limited
Q2FY23
Q1FY23
Q2FY22
H1 FY23
246
137
109
44.4
17
53
40
16.1
0
1
6
-
33
13.2
8
24
9.8
3.2
235
134
101
43.1
15
51
35
15.0
0
2
6
-
28
11.7
7
21
8.9
2.7
172
101
71
41.5
14
33
24
14.2
4
2
6
-
21
12.1
6
15
8.5
2.7
481
271
211
43.8
32
103
75
15.6
1
4
12
-
60
12.5
15
45
9.4
5.9
FY22
659
376
284
43.0
55
125
104
15.7
8
8
23
-
81
12.2
20
61
9.2
9.1
1 5
Balance Sheet (Consolidated)
ASSETS (₹ crore)
H1FY23
Fixed assets
Capital work in progress
Investment in property
Other non-current assets
Total non-current assets
Inventory
Trade receivables
Cash and bank
Other current assets
Total current assets
Total assets
177
8
-
5
190
163
153
3
45
364
554
FY22
179
-
-
4
183
133
119
9
46
306
489
LIABILITIES (₹ crore)
H1FY23
FY22
Equity share capital
Other equity
Net Worth
Long term borrowings*
Short term borrowings
Total Debt
Trade payables
Other current liabilities
Other non - current liabilities
Total liabilities
Total equity and liabilities
8
353
361
13
74
88
66
23
16
105
554
8
308
316
21
59
80
58
21
14
93
489
Note - *Long Term Borrowings include current maturities
Stylam Industries Limited
1 6
Historical Sales Performance
338
230
108
FY18
460
302
158
FY19
462
308
154
FY20
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
Exports
Domestic
480
332
148
FY21
659
421
238
FY22
1 7
Margin Profile
80
17.3%
80
17.2%
15.5%
46
49
14.5%
99
20.6%
104
15.7%
FY17
FY18
FY19
EBITDA
FY20
FY21
FY22
EBITDA Margin
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 8
Balance Sheet Transformation
183
77
146
126
186
187
204
112
FY17
FY18
FY19
Net Worth
FY20
Net Debt
260
44
FY21
316
71
FY22
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 9
Improving Return Profile
21.3%
19.7%
19.3%
17.4%
17.3%
12.7%
FY20
FY21
FY22
RoE
RoCE (post-tax)
Note – RoE and RoCE for FY20 has been computed without considering exceptional item for better comparison;
Stylam Industries Limited
2 0
Review of Financial Performance (Q2FY23)
•
•
•
•
Stylam continued its strong performance in the second quarter with sales of INR 246 crore, implying 43.3% YoY growth and 4.8% QoQ growth.
Sales growth during the quarter was backed primarily by domestic market, which was INR 82 crore and saw 21% YoY growth and 24% QoQ growth. Further, export sales also witnessed significant uptick on YoY basis, clocking sales of INR 164 crore (58% YoY growth and 3% QoQ degrowth).
The Company recorded an increase in sale of laminate sheets in the second quarter of FY23 selling 3.2 million laminate sheets (vs. 2.7 million in Q1FY23). Per sheet average realizations vary based on the product mix during the period.
Stylam witnessed improvement in contribution margin, which stood at 44.4% in Q2FY23 (vs. 43.1% in Q1FY23 and 41.5% in Q2FY22). Further, EBITDA also improved to INR 40 crore, implying margins of 16.1% (vs. 15.0% in Q1FY23 and 14.2% in Q2FY22).
• Working capital cycle stands at 82 days for the second quarter (vs. 75 days for Q1FY23), due to slight increase in
receivables and inventory holding days.
• Net debt stood at INR 84 crore as on 30th September 2022. Net worth stands at INR 361 crore.
Stylam Industries Limited
2 1
Vision 2022-2025
•
The company has reached about 80% capacity utilization level in the laminates division. We have now started modular expansion at the existing facilities that will increase our capacity by up to 40%. This will entail a total Investment of INR 40 Cr.
• Board also reviewed the progress made on plywood project and decided to put the same on hold
and prioritize the laminates capacity expansion.
•
Improve and enhance share of value-add products in the product mix as well as expanding the product range.
• Strengthen domestic presence with a deeper reach and penetration and creation of a strong brand.
• Expand coverage across newer exports regions along with increasing business with existing partners.
•
To be a net debt free Company.
Stylam Industries Limited
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Safe Harbor Statement
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Stylam Industries Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. 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, reliability or fairness 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. In particular, but without prejudice to the generality of the foregoing, no representation or warranty whatsoever is given in relation to the reasonableness or achievability of the projections contained in the Presentation or in relation to the bases and assumptions underlying such projections and you must satisfy yourself in relation to the reasonableness, achievability and accuracy thereof.
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 wind power industry in India and world-wide, 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.
No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.
Stylam Industries Limited
2 3
T H A N K Y O U
REGISTERED OFFICE: SCO 14, Sector-7C, Chandigarh Plant 1: Plot No. 191, Industrial Area-1, Panchkula, Haryana Plant 2: Village Manak Tabra, Ramgarh-Raipur Rani Road, Distt. Panchkula, Haryana Website: www.stylam.com