Revised- Sportking India Limited has informed the Exchange about Investor Presentation
Sp~)'tkJqCJINDIA LTD.
(Govt. Recognised Three Star Export House)
Regd. & Corporate Office Admn. Office E-mail Website
: Vill. Kanech, Near Sahnewal, G.T. Road, Ludhiana-141120 Ph. (0161) 2845456 to 60 Fax: 2845458 : 178, Col. Gurdial Singh Road, Civil Lines, Ludhiana-141001 Ph. (0161) 2770954 to 55 Fax: 2770953 17122PB1989PLC053162 GST No.: 03AAA(S3037Q1 lA
sportking@sportking.co.in(INNo.L www.sportking.co.in
SIL/2022-23/SE
09.11.2022
To BSE Limited Phiroze Jeeheebhoy Towers, Dalal Street, Mumbai-40000 1
Script Code: 539221
Sub: Investor's Presentation
Dear Sir,
To National Stock Exchange of India Ltd, Plaza, Exchange Complex, Bandra 400051 Symbol: SPORTKING
Kurla (East), Mumbai-
Bandra
Pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, please find attached herewith copy of Investor's Presentation with respect to Performance of the Company for the quarter and half year ended 30th September 2022.
You are requested to take the above mentioned information on your records.
Yours truly,
For SPORTKING INDIA LIMITED
LOVLESH VERMA COMPANY SECRETARY (ACS: 34171)
-
WORKS:'SPORTKING SYNTHETICS,Vill. Kanech, Near Sahnewal, G.T. Road, Ludhiana-141120 Ph. : (0161) 2845456, 57, 59, 60 Fax: 2845458
'SPORTKING PROCESSOR,Village Barmalipur, Near Doraha, G.T. Road, Ludhiana - 141416 Ph. 'SPORTKINGINDUSTRIES,Village Jeeda, NH-15, Kotkapura Road, Bathinda-151201 Ph. : (0164) 2767763,544,644,744
(01628) 244152, 244153 Fax: 2767844
:
Investor Presentation - November 2022
SAFE HARBOR
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sportking India Ltd (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 whatsoever. 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 cashflows, 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.
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
2
MANAGEMENT COMMENTARY
Mr. Munish Avasthi Managing Director
“This quarter was challenging due to higher input costs, inflationary pressures and low demand for clothing and apparel. Textile mills were
operating at less than 50 % capacity because of high cotton prices and low demand. Despite these pressures and a difficult market climate,
our balanced product mix, efforts to supply high quality products at excellent value, and customer satisfaction continue to support us in
achieving moderate growth of 5% in Q2FY23 as compared to Q2FY22, whereas we managed to grow at 19% in H1FY23 versus H1FY22.
We continue to be laser-focused on our growth trajectory while keeping a close eye on the geopolitical and inflationary challenges globally.
We anticipate that the cotton prices and macroeconomic issues will ease in the upcoming quarters, which will improve the margins.
We have successfully commissioned the 1st Phase capacity addition of 40,800 spindles for manufacturing of Polyester cotton yarn at our
Bathinda unit.
The 2nd phase capacity addition of 63,072 spindles for manufacturing of cotton compact yarn is going as per schedule and will be
commissioned by Q4 of FY23..We are confident of achieving our strategic growth objectives by maintaining prudent financial practices,
better operating leverage, revival in demand and improvement in realization going forward.”
3
Financial Performance
DELIVERED STRONG GROWTH WITH SUSTAINED MARGINS
Revenue
+18.9%
Growth in Export Businesses
Rs. 1,158 crores
548
589
Operating EBITDA
Rs. 183 crores
H1FY22
H1FY23
Margin at 15.8%
H1FY23 Revenue Contribution
+7%
Operating PBT
Rs. 119 crores
Margin at 10.3%
Exports
Domestic
52%
Contribution from Export Business
# Operating EBITDA = PAT + Tax expenses + Finance Cost + Depreciation & Amortization- Other Income
# Operating PBT = PAT + Tax expenses – Other Income
5
Q2FY23 PERFORMANCE (YOY/QOQ)
Revenue from Operations (Rs. in Crs)
EBIDTA (Rs. in Crs)
PBT (Rs. in Crs)
524
552
606
552
155
134
147
116
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
48
48
36
36
PAT (Rs. in Crs)
EBITDA %
PAT %
110
30.0
21.0
83
22.1
13.7
0
0
0.0
0.0
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
9.0
9.0
6
H1FY23 PERFORMANCE (YOY/QOQ)
Revenue from Operations (Rs. in Crs)
EBIDTA (Rs. in Crs)
PBT (Rs. in Crs)
1,158
280
253
974
183
153
H1FY22
H1FY23
H1FY22
H1FY23
H1FY22
H1FY23
PAT (Rs. in Crs)
EBITDA %
PAT %
189
29
19
83
16
7
H1FY22
H1FY23
H1FY22
H1FY23
H1FY22
H1FY23
7
Q2 & H1 FY23 PROFIT & LOSS
Profit & Loss statement (Rs. in Crs)
Q2FY23
Q2FY22
Revenue from Operation
Raw Material Cost
Purchase of Finished goods
(Increase) / Decrease In Stocks
Power Cost
Gross Margin
Gross Margin %
Employee Cost
Other Expenses
EBITDA
EBITDA %
Other Income
Depreciation
Finance cost
PBT
PBT Margin %
Exceptional Items
Tax
PAT
PAT Margin %
Earnings per share (EPS) (Rs.)
552
411
1
3
27
110
20%
28
34
48
9%
3
10
5
36
7%
30
6
0
0%
0.00
524
276
0
-7
31
224
43%
26
43
155
30%
10
11
7
147
28%
0
37
110
21%
82.9
Y-o-Y
5.3%
-50.8%
-69.0%
-75.5%
-100%
Q-o-Q
-9.0%
-45.9%
-63.9%
-68.7%
-99.4%
Q1FY23
606
390
0
-18
30
204
34%
26
44
134
22%
1
10
9
116
19%
0
33
83
13.7%
63
H1 FY23
H1 FY22
1158
801
0
-15
57
315
27%
54
78
183
16%
4
20
14
153
13%
30
40
83
7%
62
974
532
0
-23
61
404
41%
49
75
280
29%
13
24
16
253
26%
63
189
19%
142
Y-o-Y
18.9%
-22.0%
-34.6%
-39.5%
-56.1%
8
Business Overview
OVERVIEW
Established in 1989
Presence in 30+ countries
Owns 3 State of the art manufacturing facilities
Diversified Product Range
Manufacturing facilities with Modern Technology
Committed to create High Quality end products
Compliance with International Quality recognition standards
Focus on High Manufacturing efficiencies
10
JOURNEY SO FAR
installed 6K+ Spindles for manufacturing of Acrylic Yarn at Ludhiana in 1993
Setting up of a Dye House for dyeing/ processing of textile yarn fibers
Successful expansion at Bathinda Unit adding 68K+ spindles with for manufacturing of cotton compact yarn.
Spinning Capacity increased by greenfield expansion with installation of 12K+ spindles at Ludhiana (2nd unit) for manufacture of synthetic yarn. Capacity expanded from time to time for manufacturing of Synthetic/ Polyester Cotton Blended. Present installed capacity- 65K+ spindles
2018-19
Spinning Capacity increased further by Greenfield expansion with installation of 57K+ Spindles at Bathinda for manufacturing of Cotton Compact Yarn. Capacity expanded from time to time for manufacturing of Polyester Cotton Blended/ Cotton Compact yarn and capacity increase to 140K+ Spindles upto November 2013 .
Successful commissioning of 10.2 MW Rooftop Solar Power Project for in house consumption along with 1st Phase capacity addition of 40K+ Spindles for manufacturing of Polyester Cotton yarn achieving a total overall spinning capacity 315K+ spindles
11
PRESENCE ACROSS THE GLOBE
Canada
USA
Mexico
Germany
Belgium
Italy
Portugal
Spain
Morocco
Tunisia
Egypt
Panama
Columbia
Brazil
South Korea
China
Bangladesh
Hong Kong
Macao Vietnam
Sri Lanka
Thailand
Malaysia
Singapore
Ethiopia
Kenya
Tanzania
Mauritius
South Africa
Geography Wise Revenue Break-up H1 FY23
49.2%
50.8%
Rs. 1,158 crores
Domestic
International
We are representing India on a world stage with exports worth more than US $ 175 million.
12
MANUFACTURING FACILITIES & CAPACITIES
Units
Manufacturing
Installed Capacities
Unit I - Spinning Unit
Unit II - Dye House
Unit III - Spinning Unit
Acrylic/Blended Acrylic Polyester Yarn/ Polyester Blended Cotton yarn
Support to Unit No. I & for their synthetic III fibre/ dyeing processing
yarn
compact/contaminatio n / free Polyester cotton blended yarn
cotton
65,904 Spindles
15-20 MTPD
2,49,600 Spindles
Capacity utilisation of all units more than 90%
13
TECHNOLOGICAL EDGE
Technologically advanced machineries to support our
manufacturing infrastructure
Robust control practices in place to ensure consistent
quality of our products
Use of modern testing instruments such as:
₋ HVI
₋ AFIS
₋ Uster Classimat
₋ Uster Tensest
₋ Uster Hairiness tester
14
STRATEGIC ADVANTAGES
Rail & Roads : Helps in better connectivity with other parts of India.
ICD at Inland Container Depot(ICD): Bathinda/Ludhiana import/export clearances & regular road transport/train service availability between company’s unit/ICD and different seaports.
for
Add Text Here
Add Text Here
The variable price of electricity will be Rs. 5.00 per Unit for the industry as announced by the Punjab Govt. w.e.f. 1st January 2018.
and
Duty
Infrastructure Electricity Development Fund of 13.33%. of the cost the existing unit at of power the Bathinda) has been waived by Government of Punjab
(for
15
PRODUCT RANGE
100% Cotton Yarns 100% Cotton Yarns
100% cotton combed compact yarns in normal and sublime quality for knitting
and weaving
100% cotton combed compact slub 100% cotton combed Eli twist
Polyester/Cotton Blended Yarns Polyester/Cotton Blended Yarns
Polyester/cotton combed yarns Polyester/ cotton Melange yarns
Fancy Yarns Fancy Yarns
Jaspe yarns, Jaspe slub yarns, injection slub yarns and snow yarns.
Dyed Yarns Dyed Yarns
100 % cotton and PC blended dyed yarns
Acrylic & Acrylic/Polyester Blended Yarns Acrylic & Acrylic/Polyester Blended Yarns
100% Acrylic high bulk yarns 100% Acrylic Non bulk yarns Acrylic/ polyester blended high bulk yarns
16
SALES & MARKETING
Focus on excellence Focus on delivering best & premium quality products to most quality conscious brands and customers.
Customer Driven Innovation As a result of changing trends in both domestic & international markets accompanied with customer centric approach, our innovation initiatives are customer driven.
Domestic & international markets We have established ourselves as a prime producer of premium quality yarns and also as one of the largest exporters of cotton yarns to the most quality conscious garment brands across the globe
Sale of products through dedicated dealer/agents & directly A strong team of dedicated dealers/agents in domestic as well as international markets
Dedicated marketing team Located at corporate office ensuring quick responses to customer queries amidst continuously evolving market trends.
17
MARQUEE CUSTOMERS
18
BOARD OF DIRECTORS
Munish Avasthi Managing Director
Naresh Jain Executive/Whole Time Director
Prashant Kochhar Non-Executive Independent Director
Sandeep kapur Non-Executive Independent Director
Hapreet Kaur Kang Non Executive Independent Director
• Naresh Jain has
enormous experience and exposure in managing textile and garment business. • He is working as an
executive/Whole time director of the company since 2009
• Munish Avasthi aged 48 years is having rich experience in Spinning/Textile Industry from last 28 years.
• The day-to-day
operations of the company are looked after by him. He has been also awarded First Generation Entrepreneur Award for Textile Mills by Cotton Association of India in April 2018.
• Prashant Kochhar is a renowned Fellow Chartered Accountant and Senior Partner in Khattak Kochhar & Co • He manages the client base comprising of corporate clients & specializes in the areas of International Consulting and Taxation (Oil & Gas), Service Tax and Corporate Finance
• Dr. Sandeep Kapur is professor of business management at Punjab Agricultural University, Ludhiana, India (PAU). • He established
Technology Marketing and IPR cell at PAU and designed various IPR related training courses. He has about 35 research papers to his credit in journals of national and international repute
• Mrs. Harpreet Kaur Kang has done Graduation in Advance Business Program in International Business and International Marketing from Harvard University, USA
• From the last 20 years she is working as a faculty member for MBA and BBA students teaching various subjects including International Business, Consumer Behaviour, etc.
Anjali Avasthi Non Executive Non Independent Director
• Mrs. Anjali Avasthi has a Bachelor’s degree in Arts
• She has experience of managing Garments Business for many years
19
MANAGEMENT TEAM
Shiv K. Sharma President- Production
• Shiv K. Sharma is a B.Tech with an experience of over 37 years • He look after the overall Project Implementation, Production, Development, and Maintenance of the company’s
Bathinda spinning unit
D. S. Yadav President – Pers. & Admin.
• D. S. Yadav has a Master Degree with specialization in Labour Welfare & Personnel Management & Industrial Relation
with an experience of over 33 years
• He is responsible for overall handling & controlling of Personnel, Industrial Relations, HRD, Labour Welfare & General
Administration of the company Ludhiana Units
Rashim Jindal President – Raw Material & Marketing
• • •
Rashim Jindal is an MBA (Marketing) with over 28 years of experience He looks after overall Marketing with respect to both – Domestic & International markets Raw materials is also under his purview
Ravi Parkash Gupta EA to MD
• Mr. RP Gupta is a M.Tech (Textile) with over 35 years of experience • He looks after the overall Commercial Operations of the company
20
CERTIFICATES & COMPLIANCES
Global Organic textile Standard
Organic Content Standard
Oeko-Tex
Fairtrade
ISO 9001 2015
Global Recycle Standard
21
Way Forward
BUSINESS STRENGTHS
Product Range
04 Competitive Prices
Well diversified range of products suitable for use in manufacture of for knitted woven summer and winter wear
fabrics
and
price
enjoys
Sportking leadership status in all of the market segments due to its ability to supply high quality products regularly and consistently at the most competitive prices
Focus on Quality
Ensuring supply of high- quality yarns consistently
03 Customer centric Approach
Ensuring full customer satisfaction in terms of quality , prices, timely execution of orders and prompt after sales services
Our Strengths
05 Customer Queries resolution
Quick responses to customer queries and willingness to develop new products to meet customer requirement
06 Brand Launching Crystal - cotton yarn made with imported cotton
Sublime - High end quality yarn made with Indian selected cotton to achieve excellence in yarn parameters
23
CAPACITY BUILTUP OVER THE YEARS
Continuous capacity addition to support robust growth in our business
3,15,504
40,800
68,256
34,464
-6,520
24,480
52,800
Closure of a unit(Small capacity)
28,800
12,096
23,232
12,720
17,856
1996
1998
2006
2007
2011
2012
2013
2014
2014
2019
2022
6,520
1994
Total Existing Capacity
24
HALF YEARLY BUSINESS UPDATES
Successful commissioning of 10 MW Rooftop Solar Power Project at Bathinda Unit
Status of ongoing expansion Project Phase 1 & 2 at Bathinda Unit
Successful commissioning of 10MW Rooftop Solar Power Project at for in house consumption Completion Month- June 2022 Objective to reduce greenhouse gas emissions and power cost
Completion of phase 1 expansion project 1st Phase capacity addition – 40,800 Spindles for manufacturing of Polyester Cotton yarn – Completed
Phase 2 expansion project 2nd Phase capacity addition – 63,072 spindles for manufacturing of cotton compact yarn - Project implementation is going as per schedule and same will be commissioned in the Q4 of FY 2022-23.
25
HISTORICAL FINANCIAL CHARTS
Revenue from Operations (Rs. in Crs)
EBITDA (Rs. in Crs)
PBT (Rs. in Crs)
+19.5%
2,154
1,055
1,160
1,355
1,306
596
+55.7%
547
+108.7%
101
129
136
211
29
38
18
140
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
PAT (Rs. in Crs)
EBITDA %
PAT %
409
+115.0%
+30.3%
27.7%
19.0%
+79.8%
19
24
12
85
9.6% 11.1% 10.1%
16.2%
6.5%
1.8%
2.1%
0.9%
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
26
KEY FINANCIAL RATIOS
ROCE #
ROE *
+5,080 bps
76.4%
+6,430 bps
72.8%
14.8%
19.5%
16.0%
31.7%
FY18
FY19
FY20
FY21
FY22
10.0%
10.9%
FY18
FY19
5.0%
FY20
27.8%
FY21
FY22
Interest Coverage ratio
Long term Debt/Equity Ratio
3.5
3.3
2.4
5.8
20.8
0.99
0.80
0.61
0.54
0.18
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
# ROCE = EBIT/ Average Capital Employed
* ROE = PAT/ Average Net Worth
27
PROFIT & LOSS STATEMENT
Profit & Loss statement (Rs. in Crs) Revenue from Operation Raw Material Cost Purchase of Finished goods (Increase) / Decrease In Stocks Power Cost Gross Margin Gross Margin % Employee Cost Other Expenses EBITDA EBITDA %
Depreciation and Amortisation Expense Finance Costs Other Income PBT PBT Margin % Exceptional Items Tax PAT PAT Margin % Earnings per share (EPS) (Rs.)
Mar'22 2154 1181 0 -14 120
867 40% 105 166
596 28% 44 29 24
547 25% - 138
409 19% 308
Mar'21 1306 785 0 10 112 399 31% 87 103 209 16% 52 36 19 140 11% 22 33 85 7% 63
Mar'20 1355 901 1 7 113 334 25% 97 100 136 10% 63 58 3 18 1% - 6 12 1%
9
Mar'19 1161 756 1 -2 96 309 27% 83 97 129 11% 54 39 2 38 3% - 14 24 2%
17
Mar'18 1055 682 1 13 95 175 25% 74 89 101 10% 56 29 13 29 3% - 10 19 2%
4
28
IMPROVING DEBT PROFILE & FINANCIAL RATIOS
Debt
Financial ratios
Short term
Long term
449.0
176.0
173.0
142.0
217.0
35.0
Mar-22
Jun-22
Sep-22
Mar-22
Jun-22
Sep-22
Substantial reduction in availment of short term bank borrowing by Rs. 414 crores as on 30th September 2022 due to plough back of surplus cash profits in business
Long term Debt to Equity
Debt to Equity
0.21
0.20
0.77
0.18
0.46
0.21
Mar-22
Jun-22
Sep-22
Mar-22
Jun-22
Sep-22
TOL/ TNW
Current Ratio
1.03
3.09
0.73
0.47
2.19
1.73
Mar-22
Jun-22
Sep-22
Mar-22
Jun-22
Sep-22
29
BALANCE SHEET STATEMENT
Equity & Liabilities (₹ in Cr)
Sept’22 Mar’22
Assets (₹ in Cr)
Sept’22 Mar’22
Equity Share Capital
Other Equity
Total Equity
Financial liabilities
1. Borrowing
2. Lease Liabilities
Provisions
Deferred tax Liabilities (Net)
Other Non-Current Liabilities
Total Non-Current Liabilities
Financial Liabilities
(ii) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) Other Financial Liabilities
Other Current Liabilities
Current Tax Liabilities
Provisions
Total Current Liabilities
Total Equity & Liabilities
13 837
850
173 1 11 20 -
205
34 0 31 113 4 21 1
204
13 754
767
141 1 11 13 -
166
396 0 124 64 9 27 1
621
Property, plant and equipment
Capital Work-in-Progress
Right of Use Asset
Other Intangible Assets
Income Tax Assets (Net)
Other Financial Assets
Other Non Current Assets
Total Non-Current Assets
Financial Assets
(i) Inventories
(ii) Trade Receivable
(iii) Cash and Cash Equivalents
(iv) Bank balances other than above
(v) Other Financial Assets
Other Current Assets
Total Current Assets
1259
1554
Total Assets
533
52
1
0
2
17
22
627
126
322
99
0
1
381
73
1
0
2
17
22
496
522
411
1
24
1
84
632
1259
100
1058
1554
30
CASH FLOW STATEMENT
Cash Flow Statement (Rs. Crs.)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Sep-22
Mar-22
Sept-21
123.0
64.4
187.4
420.1
607.5
-42.5
565.0
-95.6
-371.6
97.8
0.5
98.3
547.4
68.5
616
-382.9
233
-137.4
95.6
-102.8
6.9
-0.3
0.8
0.5
252.6
31.0
283.6
109.5
174.1
-54.5
119.6
-15.8
-103.1
0.8
0.8
1.6
31
THANK YOU
Sportking India Limited CIN: L17122PB1989PLC053162
Mr. Lovlesh Verma 01612845456 cs@sportking.co.in www.sportking.co.in
Mr. Bhavin Soni +91 9833537225 Bhavin.soni@linkintime.co.in
Mr. Rajesh Agrawal +91 9967491495 Rajesh.Agrawal@linkintime.co.in