Sheela Foam Limited has informed the Exchange about updated Investor Presentation
To The Secretary (Listing Department) The BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001
Date: December 01, 2022
The Manager, The National Stock Exchange India Limited Exchange Plaza, Bandra Kurla Complex Bandra(E), Mumbai-400051
BSE Scrip Code: 540203
NSE Symbol: SFL
Subject: Investor presentation
Dear Sir/ Madam,
Furtherance to our earlier communication and results for the quarter and half year ended 30th September, 2022. Please find attached updated investor presentation on results.
Thanking you. Yours faithfully,
For Sheela Foam Limited
(Md. Iquebal Ahmad) Company Secretary and Compliance Officer
SHEELA FOAM LTD.
#14, Sleepwell Tower , Sector 135, Noida- 201301 Ph: Int-91(0)-120-4162200 • Fax: Int-91-(0)-120-4162282, 4162283 • Email: contactus@sheelafoam.com
Regd. Office: 604 Ashadeep, 9 Hailey Road, New Delhi-110001, India • Ph: Int-91(0)-11-22026875-76 Toll Free: 1800 103 6664 • www.sleepwellproducts.com • www.sheelafoam.com CIN-L74899DL1971PLC005679
Sheela Foam Ltd.
Investor Presentation – November
Company Snapshot
Experienced Management
‘Sleepwell’ mattresses a household Brand and one of the most trusted brands in India
Backward Integrated Player with a wide product basket
Largest manufacturers of PU Foam in India
20-25% Market Share in the Mattresses segment
40% market share in Australia
Presence across multiple geographies
Low Gearing ratio
Consistent Positive cash flow generation
Strategic move to focus on high margin products
Marquee Investors
Proven track record in Acquisitions and Integration
Company Overview
Company Overview
•
•
•
•
•
•
Incorporated in 1971, Sheela Foam is the market leader and the largest manufacturer of Polyurethane Foam (PU) in India.
The Company manufactures various foam-based home comfort products like mattresses, furniture cushions, as well as technical grades of polyurethane foams for end-use in a range of industries like automobile, acoustics, etc.
The flagship household brands include: ‘Sleepwell’ for mattresses and home comfort, ‘Feather Foam’ a pure PU Foam and ‘Lamiflex’ a polyester foam for lamination.
The company has a global manufacturing footprint with 11 nationwide manufacturing plants in India, 5 in Australia, and 1 in Spain.
It has a strong presence and market share in Australia through its wholly-owned subsidiary, Joyce Foam Pty Ltd. and also in Spain through its subsidiary, Interplasp S.L.
The company has an integrated manufacturing facility 123,000 MTPA with a robust distribution network of 100+ exclusive distributors, 5,400+ exclusive retail dealers, and 7,850+ multi-brand outlets.
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
India Operations
Global Operations
11 Manufacturing Plants
123,000 MTPA of Total Capacity
20 – 25% Market share in India
Investor Presentation | Sheela Foam Ltd.
5 Manufacturing plants in Australia with a capacity of 11,000 MTPA
40% Market share in Australia
1
Manufacturing plant in Spain with a capacity of 22,000 MTPA to cater to European and US markets
Revenue , EBITDA (INR Mn), EBITDA Margin (%)
29,818
24,372
14.94%
14,512
10.56%
10.00%
21,414
21,736
13.82%
9.85%
2,109
3,004
3,642
3,149
1,442
FY19
FY20
FY21
FY22
H1-FY23
Q2-FY23 Revenue Breakup
Geographical Distribution
Business Segment Distribution
21.00%
14.00%
7.00%
0.00%
12%
15%
19%
73%
81%
India
Australia
Europe
Home Comfort
Technical Foam
4
Board of Directors
Rahul Gautam Chairman & Managing Director
He has been associated with the Company since 1971 and been our Managing Director since 1 April, 1996. He holds a Bachelor’s degree in Technology - Chemical Engineering from the Indian Institute of Technology, Kanpur, and a Master’s degree in Science - Chemical Engineering from the Polytechnic Institute of New York. He has over 44 years of experience in the home comfort products and PU foam industry and is the Chairman Emeritus of the Indian Polyurethane Association. Namita Gautam Whole-Time Director She has been associated with the group for the past 32 years and been a Whole-Time Director of our Company since 14 November, 2003. During her tenure, she has headed the Human Resource, Marketing and Projects departments of the Company. She currently heads our CSR initiative through the Sleepwell Foundation and heads Special Projects. She holds a Bachelor’s degree in Law and a Master’s degree in Economics from Kanpur University.
Rakesh Chahar Whole-Time Director He has been associated with the Company since 1 November, 1990 and has been a Whole-Time Director since 14 November 2003. He has more than 29 years of experience in the business of selling and marketing bedding products and polyurethane foam. He heads the Sales and Marketing function.
Tushaar Gautam Whole-Time Director He has been associated with the Company since 7 January, 2002 and been a Whole- Time Director since 1 April, 2007. He holds a Bachelor’s degree from Purdue University, USA, where his courses of study included Financial, Marketing and Operations Management. He is taking over the role of the CEO for SFL- India operation. He carries more than 18 years of experience in heading Production, Research and Development.
Anil Tandon Indepedent Director He has been associated with the company since 7 June, 2016. He is holding a Bachelor’s degree of Technology in Electrical Engineering from Indian Institute of Technology, Kanpur and a Post-graduate Diploma in Management from the Indian Institute of Management, Ahmedabad. Since 1995, he has been the Managing Director of Tex Corp Limited, a leading organization in the field of fastening products. He has several years of national and international experience in the zip fastening products sector.
Som Mittal Independent Director
He has been associated with the Company since 7 June, 2016. He holds a Bachelor’s degree in Metallurgical Engineering from the Indian Institute of Technology, Kanpur, and a post graduate diploma in Business Administration from the Indian Institute of Management, Ahmedabad. He has several years of experience in manufacturing and information technology sectors.
Ravindra Dhariwal Independent Director
He has been associated with the Company since 7 June, 2016. He holds a Bachelor’s degree in Chemical Engineering from the Indian Institute of Technology, Kanpur, and a post graduate diploma in Management from the Indian Institute of Management, Calcutta. He was the Group CEO of Bennett & Coleman, India’s largest media company. He has vast experience in the fields of Sales and Marketing Management.
Lt Gen (Dr.) Vijay Kumar Ahluwalia Independent Director
He has been associated with the company since 5 March, 2018. He is holding a Master’s degree in Defence Studies and Management from Madras University, M. Phil in Defence Studies from Indore University and PhD in Management - Internal Security and Conflict Resolution from Amity University, Noida. He has several years of experience in Defence Services. He also served as a Judge of Armed Force Tribunal and as Director General of Raffles Group of Institutions, Raffles University, Neemrana, Rajasthan.
Meena Jagtiani Independent Director
She is an MBA from the Symbiosis Institute of Business Management and has done an Executive Development Programme from Wharton Business School, University of Pennsylvania. At present, she is working as an independent HR advisor. She has three decades of rich industry experience in the field of HR. She served in various corporate houses such as the Aditya Birla Group, Daksh e-Services Private Limited, and Korn/Ferry International - world’s leading search firm before taking her role as an Independent Advisor.
Investor Presentation | Sheela Foam Ltd.
5
Key Management Personnel
Nikhil Datye Group Chief Financial Officer
He has been associated with our Company for one year. He is a qualified Chartered Accountant and did his Chartered Accountancy in the year 2000. He comes with more than two decades of management experience in Finance, Supply Chain and Business Partnering across diversified industries. Prior to joining us, his immediate assignment was with Nayara Energy as CFO & VP Finance, Legal & IT. He has also worked with various brand leaders 'Ortho Clinical Diagnostics', 'Johnson & Johnson', 'Coca – Cola', 'ABB', 'Marico Industries' under various capacities.
Md. Iquebal Ahmad Company Secretary and Compliance Officer
He has been associated with our Company since November 17, 2008. He is a member of the Institute of Company Secretaries of India. He holds a Bachelor’s degree in law and a Diploma in Corporate Law and Management. He has in the past been associated with Golden Overseas Limited (Dhanuka Group Company) as its Company Secretary and with AVA Associates, PCS firm, as an Associate. He is responsible for the secretarial and legal matters of our Company. He has been associated with the Company for about 14 years and has experience in secretarial and legal compliance.
Investor Presentation | Sheela Foam Ltd.
6
Timeline
Sheela Foam’s Limited journey begins from Sahibabad, Uttar Pradesh, founded by the chairperson emeritus Mrs. Sheela Gautam
The Company introduced rubberized coir products under the brand name Starlite and successfully tied-ups with Serta, USA, and Dunlopillo, UK, to manufacture mattresses.
Major acquisition to expand operations globally, the Company acquired the polyurethane and polystyrene business of Joyce, Australia.
Received the Computer World Premier Award. Company got listed on NSE and BSE
Many awards won including the Star SME of the Year by Business Standard; Silver medal in the India Green Manufacturing Challenge 2017, by International Research Institute for Manufacturing, India; 5 Awards for Excellence in IT.
Set up a new Subsidiary called as International Comfort Technologies to focus on key growing businesses like Exports, E-commerce and Low value Economy mattresses to cater to the 65% of the rural population
1971
1998 1999
2005
2016
2018
2021
1994
2001 2003
2008 2010
2017
2019
Flagship brand named ‘Sleepwell’ launched. Over the time it turned out to be one of the most popular choices of urban India households
India’s largest PU (polyurethane) foam producing plant started operations in Greater Noida. Expanded operations in Rajpura, Punjab and Sikkim in order to develop a closer proximity to their target markets
Awarded the Nasscom CNBC-TV18 IT user award, Silver Edge’ Award; CIO Green Edge Special Award; CIO Asia Award; and the CIO 100 Award for the 2nd time. The Company also launched revolutionary technologies with products like Impressions, Latex Plus, Resitec Air, Duet Luxury, Durafirm, Serenity and Amity.
Awarded by PU Tech for Innovative Technology for Vertical Variable Pressure Foaming..
Footprint in Europe, the Company acquired Interplasp S.L. in Spain
Investor Presentation | Sheela Foam Ltd.
7
Geographical Presence
INDIA
Jabalpur (upcoming Mfg. plant)
Nandigram
SPAIN
Yecla
Perth
AUSTRALIA
Adelaide
Sydney
Canberra
Melbourne
8
• Currently operating 11
manufacturing facilities in India. Upcoming 12th manufacturing plant in Jabalpur for Foaming and Foam processing
• Dispersed manufacturing plants to cater to strategic geographical touch points
• The plants
are
situated in close proximity to markets and ports which enables fast and better serviceability to customers and cost-effective import of raw materials as well as export of technical foam
Leading manufacturer of Mattresses and PU Foam
Geographically Dispersed
Investor Presentation | Sheela Foam Ltd.
Manufacturing Facilities
11 Manufacturing Units in India
Pioneers in Vertical Variable Pressure Foaming (VPF) – World’s most environmentally responsible foam manufacturing and is equipped with state of the art HENNECKE Foaming machines
Largest Integrated Manufacturer of PU Foam and Mattresses
MTPA 123,000
5 Manufacturing Units in Australia
Sustainable Stable business with ~40% Market Share
MTPA 11,000
Spain Unit
‘Bed in a Box’ concept opens opportunities to target US markets.
MTPA 22,000
Investor Presentation | Sheela Foam Ltd.
9
Prominent Dealer-Distribution Network
Most distributors have been associated with the company for more than 20+ years
Well-integrated with the Company’s IT platforms, tracking secondary sales made by distributors and dealers in real time
enables
that
Exclusive distributors are in strategic proximity to the manufacturing facilities, hence it helps reduce carriage fees and minimizes product damage
sales
150+ engaged with key distributors
personnel
are
actively
100+
Exclusive Dealers
5,400+ Exclusive Brand Outlets
7,850+ Multi Brand Outlets
Sleepwell World Average Size 1,000 Sq. Ft/ 321 Outlets
Sleepwell Galleries Average Size 600 Sq. Ft/ 535 Outlets
Sleepwell Shoppes
Average Size 200 Sq. Ft/1159 Outlets
Investor Presentation | Sheela Foam Ltd.
10
Social Media and BTL Marketing efforts
• Consistently expanding BTL Marketing efforts for its legacy brands like Sleepwell,
FeatherFoam, etc.
• Revitalizing E-commerce marketing by using content marketing in order to cater to
the urban population.
• Sleep X, the e-commerce brand from Sheela Foam, has launched a wide collection of durable, high-quality mattresses for enhanced back support and comfort, keeping the changing buying habits/lifestyles of the youth in mind.
Content Marketing
• Sleepedia:
is one of the initiatives undertaken to raise awareness about the significance of sleep, sleep disorders and how to combat them, and methods to inculcate and promote healthy sleeping habits.
• Sleep Talk: Information and suggestions for a healthy sleep routine.
• Your Sleep Story: Community engagement initiative for sharing sleep stories and
experiences.
• Sleep Expert: Sleep advice from experts with answers to Frequently Asked Questions
Investor Presentation | Sheela Foam Ltd.
Advertisement Expenses (INR Mn) and Ad Expense / Revenue (%)
885
760
756
4.90%
4.30%
4.10%
1000
900
800
700
600
500
400
300
200
100
0
694
704
522
392
3.20%
2.14%
2.36%
2.70%
FY17
FY18
FY19
FY20
FY21
FY22
H1-FY23
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
11
Branded Portfolio
Australian subsidiary Joyce Inc
Spanish subsidiary Interplasp Inc
Investor Presentation | Sheela Foam Ltd.
12
Marquee Clients
Mattress Industry
Furniture Industry
Automotive Lamination Industry
Peeling Industry
Acoustic Industry
Investor Presentation | Sheela Foam Ltd.
13
Awards and Accolades
Investor Presentation | Sheela Foam Ltd.
14
Business Overview
Product Mix
Mattresses segmentation
My Mattress, Spring Range, Technology Range, Custom Cell Range, Back Support Range, Flexi PUF Range, Showroom Range, Economy Range, SleepX Online Brand
Comfort Foam and Home Care Products
Foam Sheets, Foam Blocks, Comfort range accessories, Foam Cores, Furniture Cushions, Pillows, Bedsheets, Comforters/Blankets, Mattress Protectors, Sofa-cum-Beds
41%
21%
PRODUCT PORTFOLIO
Technical Foam
Automotive Foams, Reticulated Foams, Ultra- Violet Stable Foams, Silentech Foams
26%
12%
Furniture Foam
Sleepwell Resitec, Sleepwell Cool Gel, Primo
Investor Presentation | Sheela Foam Ltd.
16
Revenue breakup as on FY22
Mattresses
• Household Brand ‘Sleepwell’ was established in 1994 and over time has become one of the most
popular mattresses brands in India.
• The company continuously invests in Research and Innovation and has taken consistent efforts
to improve its product portfolio.
• These products have a price range from INR 8,000/- to INR 1 lakh+.
20-25% Market share in India
Revenues (INR Mn)
7,786
7,451
8,724
Volumes (Mn)
2.0
2.1
2.1
1.0
4,270
3.0
2.5
2.0
1.5
1.0
0.5
0.0
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
H1-FY23
Private Label Offerings – Customized product Products for the custom and value-orientated consumer
Sleepwell – No. 1 bedding brand in the India. Combines innovation, engineering and industry-leading testing to ensure quality and durability
Starlite
Investor Presentation | Sheela Foam Ltd.
17
Comfort Foam and Home Care Products
• Comfort Foam products are Industrial grade products that find their applications in
mattress manufacturing, sofa manufacturing, and others.
• The company forayed into the Home accessories segment with an aim to expand
their strategic offerings.
• Comfort Accessories Product Portfolio: Pillows, Mattress Protector, Bolsters, Back
Cushion.
Revenues (INR Mn)
5,150
3,830
3,849
Volumes (MT)
22,826
19,567
19,047
2,233
10,017
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
H1-FY23
* Volumes (MT) only includes Comfort Foam, the company does not maintain volumes data for home comfort products
Investor Presentation | Sheela Foam Ltd.
18
Technical Foam
Technical products offered by Sheela Foam find diverse applications in home furnishings, car seats, clothes and accessories, auditoriums, hospital beds, and various other industries, enhancing comfort and convenience in our surroundings.
Product
Product Lines
End User Industries
Automotive Foam
Poly-ester Foam, Poly-ether Foam
Seat cover, Sound absorption systems, Sun visors, Headliners, Door trims, Lamination systems
Reticulated foam
Ester-based foam, Ether- based foam
Ultra Violet Stable foam
-
Slientech foam
Ester-based PU Foam
Filtration systems, Ceramic foam filters, Outdoor furniture, Microphones and headphones, Safety fuel tanks, Ink cartridges
Sportswear, Innerwear and lingerie, Clothing, Swimwear, Comfort accessories for shoes
Automotive, Diesel generator canopies, Theatres, auditoriums, indoor stadiums, Broadcasting rooms and recording studios, Industrial silencers, Aco
Revenues (INR Mn) 4,540
3,222
3,233
2,688
FY20
FY21
FY22
H1-FY23
11,500
Volumes (MT)
13,422
10,178
7,326
FY20
FY21
FY22
H1-FY23
Sound Absorption Foam
Automotive Foams
Reticulated Foams
UV Stable Foams
Silentech Foams
Investor Presentation | Sheela Foam Ltd.
19
Furniture Foam
• Being one of the largest producers of PU Foam in India, Sheela Foam has expanded into allied
segments to create more value for its product portfolio.
•
Furniture cushioning is one of the most important part of furniture like Sofa Sets, Chairs, Custom Sofas, Sofa cum bed, etc.
Furniture Cushioning Range:
• Primo - Incorporates unique composition and extra thickness for enhanced comfort and support.
• Resitec - Using advanced High Resilience (HR) Cushioning Technology that provides personalized
comfort, for the ultimate cushioning experience.
• Cool Gel-S - Cool Gel-S particles are a scientific breakthrough in Furniture Cushioning that dissipate
heat easily, offering a cool feeling.
Revenues (INR Mn)
Volumes (MT)
2,717
2,770
2,362
1,267
7,939
6,139
5,724
2,652
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
H1-FY23
Investor Presentation | Sheela Foam Ltd.
20
Australia
•
Sheela Foam has a strong presence in Australia through its wholly owned subsidiary, Joyce Foam Pty Ltd (“Joyce Foam”)
• The company acquired the business of manufacturing of PU Foam and polystyrene products of three Australian companies, namely, Joyce Corporation Limited, Joyce Indpac Limited and Marfoam Pty Limited through Joyce Foam in 2005.
•
It has 4 state-of-the-art production centers at Adelaide, Canberra, Melbourne, Perth and Sydney
Joyce foam produces raw materials for branded mattresses makers and has products catering to the following industries:
1.
Furniture
2. Medical
3.
Industrial
4. Moulded
5. Polystyrene
11,000 MTPA
~40% Market Share in Australia
Revenues (INR Mn)
4,130
4,295
3,157
2,153
FY20
FY21
FY22
H1-FY23
Certifications
Investor Presentation | Sheela Foam Ltd.
21
Spain •
Sheela Foam has a strong presence in Europe through its wholly-owned subsidiary ‘Interplasp’.
•
•
•
Interplasp is one of the best European flexible polyurethane foam manufacturers characterized by a strong technological base and innovation.
It has a modernized manufacturing facility at Yecla in Spain, one of the most cost-effective manufacturing locations in Europe, enabling the company to enjoy a competitive edge and develop strong footprints in the region.
Interplasp is well placed to focus on expanding operations to meet the demand from Europe and US
• The company has started exporting to US with the ‘Bed-in-a-box’ mattresses strategy from its Spain plant, this is a new opportunity in the US as the country imposes trade restrictions on other countries.
•
Interplasp is a EUROPUR (European association of flexible polyurethane foam blocks manufacturers) member and has the Innovative Company and the Quality OEKO-TEX Standard 100 stamps.
The constant development has allowed them to have five ranges of flexible polyurethane foams:
• CONTACT PLUS – Conventional foams
• CONTACT BIO – Soy foams
• CONTACT HR – High -end foams, high resilience
• CONTACT BS – Fire retardant foams
• CONTACT DREAM – Viscoelastic foams
22,000 MTPA
Caters to 1% of Europe’s market
Investor Presentation | Sheela Foam Ltd.
Revenues (INR Mn)
4,300
3,360
1,032
1,927
FY20
FY21
FY22
H1-FY23
22
INDUSTRY & STRATEGIC OVERVIEW
Industry Fundamentals • The Indian mattress market is expected to grow at a CAGR of 10% and is en route to attaining an INR 18,000 Cr mark by the year 2022. • Indian market is fragmented with a large number of branded and non-branded players present in the market selling variety of mattresses with local distribution channels. The branded market is just 40% of the total Indian mattress market. There are 25 players in the branded market with Sleepwell and Kurlon occupying a dominant share.
• In budget 2022-23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban and INR 48,000 Cr is
allocated for this purpose.
• India Railways has been boosting its efforts to improve the infrastructure of coaches and finding new space for import substitution such as the supply of foams to the Railways which were earlier imported. 400 new energy-efficient Vande Bharat trains will be introduced by 2025, is about INR 40,000 Cr of business coupled with jobs and other spin-off benefits
• Real estate sector in India is expected to reach US$ 1 Tn in market size by 2030, up from US$ 200 Bn in 2021 and contribute 13% to the country’s GDP by
2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
• The Indian foam industry’s future seems promising with increasing opportunities in various applications, such as building and construction, bedding and
furniture, transportation, electrical and electronics, footwear and others.
Indian Mattress Market (INR Bn)
Indian Mattress Market Break-up
INDIAN ORGANIZED MATTRESS MARKET BY TYPE OF MATTRESS
180
Organized
Unorganized
95
65
FY12
FY16
FY22
Investor Presentation | Sheela Foam Ltd.
67%
65%
33%
FY12
35%
FY16
60%
40%
FY21
Spring 22%
Rubberized Coir 28%
PU Foam 50%
24
Growth Drivers
Rising share of the organized sector
With the growth of international players and branded companies, consumers are shifting from traditional, to branded mattresses. The shift in demand for better quality and customized products has been resulting in a significant rise of organized players.
low-quality
products
High Margin Products
Portfolio expansion in new and adjacent categories in addition to higher engagement through digital also been instrumental in deeper market penetration and growth.
channel has
Growing Consumption
The total market for mattresses in India was around 18.6 million units, with an estimated new demand for mattresses being ~7 million units per year. the average replacement cycle for mattresses was ~12 years, and the replacement demand for mattresses was 11.6 million units.
In addition,
WFH Culture
Changes in the way people work has brought in the need to 'allocate' a space for 'office work'. trend has played out across homes, This irrespective of their sizes. 'Office furniture' has entered our homes. This is a big opportunity for businesses involved with the segment.
End-User Industries
initiatives like Smart City, The government Housing for All combined with favorable measures and policies would increase the number of residential units and favor the real lead to higher estate segment, which will mattress consumption, thereby fueling the growth of the mattress industry.
Investor Presentation | Sheela Foam Ltd.
25
Capacity Expansion Plans
India- Domestics Operations
• 65% - 70% of the Population sleeps on Dari, Chaitai and this represents the opportunity in the Low– Value Economy mattress segment
• Capex on India operations would be focused on setting up a new plant in Madhya Pradesh and Gujarat with leveraged technology from Australia and Spain
• New Distribution channel would be set up to
create touch points in rural India
ICT – International Comfort Technologies
• Expansion of manufacturing base with the opening of a new 100% Export Oriented Greenfield Unit in Nandi Gaon, Gujarat and in Mandala near Jabalpur, Madhya Pradesh.
• These two units will be focused towards the new businesses; Exports, E-commerce and Low Value Economy the rural population.
segment products
for
Capex Distribution
Australia - Joyce 15%
India Operations 70%
INR
350 +Cr
Spain - Interplasp 15%
India Operations
Australia - Joyce
Spain - Interplasp
• Mattress production in expected to grow from 1,000 Mattresses/Day to 3,000 Mattresses/Day
Expected Asset Turnover of 3x - 4x
Australia Operations
• The company is setting up a new
plant in Adelaide
• Focus of
this plant would be to expand the current market share of the company in Australia
Spain Operations
• The company is doubling our capacity from 17,000 MTPA to ~22,500 MTPA
• Primarily, the focus would be on ‘Bed in a Box’ strategy for US exports and expanding the market share from the current 1% in Europe.
Investor Presentation | Sheela Foam Ltd.
26
Raw Material Prices and Gross Margins
TDI & Polyol Price Trend (INR/kg)
SFL Consolidated Gross Margins (%)
212
203
200
173
267
227
178
174
248
131
39.9%
39.1%
37.4%
39.8%
44.6%
Q2-FY22
Q3-FY22
Q4-FY22
Q1-FY23
Q2-FY23
Q2-FY22
Q3-FY22
Q4-FY22
Q1-FY23
Q2-FY23
TDI
POLYOL
SFL India
Gross Margins (%)
Australia - Joyce
41.1%
39.7%
40.3%
37.0%
44.3%
50.6%
50.1%
52.1%
51.3%
48.1%
Spain - Interplasp
23.5%
24.0%
20.1%
31.0%
26.0%
Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23
Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23
Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23
Investor Presentation | Sheela Foam Ltd.
27
Historical Financial Overview
PARTICULARS (INR Mn)
Operational Revenue
Operating Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Exceptional Items
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR)
Investor Presentation | Sheela Foam Ltd.
Historical Standalone Income Statement
FY19
18,138
16,302
1,835
10.12%
305
311
73
1,756
-
519
1,237
6.82%
(9)
1,228
25.35
FY20
17,548
15,278
2,270
12.94%
413
331
81
2,271
120
496
1,655
9.43%
(43)
1,612
33.93
FY21
16,939
14,566
2,373
14.01%
474
325
87
2,435
-
623
1,812
10.70%
21
1,833
37.13
FY22
21,244
18,906
2,338
11.01%
702
324
71
2,645
-
672
1,973
9.29%
(12)
1,961
40.45
H1-FY23
10,478
9,399
1,079
10.30%
360
151
47
1,241
-
338
903
8.62%
(26)
877
18.51
29
PARTICULARS (INR Mn)
FY21
FY22
H1-FY23
PARTICULARS (INR Mn)
FY21
FY22
H1-FY23
Historical Standalone Balance Sheet
ASSETS Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Investment In Subsidiaries Financial Assets (a) Investments (b) Loans (c) Other Financial Assets (d) Investment in Preference Shares Non-current Assets (Net) Other Non Current Assets Current Assets Inventories Financial Assets (a) Investments (b) Trade Receivable (c) Cash And Cash Equivalent (d) Other Bank Balances (e) Loans (f) Other Current Fin Assets Other Current Assets GRAND TOTAL – ASSETS
8,497 2,536 12 201 38 2,137
3,036 486 21 - 3 26 5,713 2,283
1,060 1,630 350 5 56 87 241 14,210
11,159 2,350 6 184 36 1,967
5,288 778 180 299 45 26 5,079 2,035
840 1,516 143 3 56 293 194 16,238
10,020 2,354 15 178 35 1,967
3,955 949 184 299 45 40 6,659 2,185
2,141 1,551 204 3 54 221 300 16,679
EQUITY & LIABILITIES
Equity (A) Share Capital
(B) Other Equity
Non-current Liabilities
Financial Liabilities
(A) Borrowings
(B) Lease Liabilities
(C) Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non Current Liabilities Current Liabilities
Financial Liabilities
(A) Borrowings
(B) Lease Liabilities
(C) Trade Payables
(D) Other Current Fin Liabilities
Provisions
Other Current Liabilities
10,134 244
9,890
653
-
19
502
46
83
3 3,423
-
1
12,095 244
11,851
877
12,972 244
12,728
805
-
183
503
141
48
-
176
417
139
70
2 3,266
2 2,902
-
11
-
12
2,333
2,095
1,905
381
44
664
413
25
722
436
29
520
GRAND TOTAL - EQUITIES & LIABILITES
14,210
16,238
16,679
Investor Presentation | Sheela Foam Ltd.
30
PARTICULARS (INR Mn)
Operational Revenue
Operating Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Exceptional Items
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR)
Investor Presentation | Sheela Foam Ltd.
Historical Consolidated Income Statement
FY19
21,414
19,305
2,109
9.85%
276
395
96
1,894
-
557
1,337
6.24%
(9)
1,328
27.41
FY20
21,736
18,732
3,004
13.82%
400
590
130
2,684
120
621
1,943
8.94%
(31)
1,912
39.83
FY21
24,372
20,730
3,642
14.94%
502
729
177
3,238
-
836
2,402
9.86%
188
2,590
49.23
FY22
29,818
26,669
3,149
10.56%
792
808
169
2,964
-
777
2,187
7.33%
(18)
2,169
44.84
H1-FY23
14,513
13,071
1,442
9.94%
409
411
103
1,337
-
376
961
6.62%
30
991
19.70
31
PARTICULARS (INR Mn)
FY21
FY22
H1-FY23
PARTICULARS (INR Mn)
FY21
FY22
H1-FY23
Historical Consolidated Balance Sheet
ASSETS Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Intangible Assets Financial Assets (a) Investments (b) Loans (c) Other Non Current Fin Assets Deferred Tax Assets Non-current Assets (Net) Other Non Current Assets Current Assets Inventories Financial Assets (a) Investments (b) Trade Receivable (c) Cash And Cash Equivalent (d) Other Bank Balances (e) Loans (f) Other Current Fin Assets Other Current Assets GRAND TOTAL – ASSETS
12,381 4,300 326 1,418 590 2,631
3,036 2 52 - - 26 8,313 3,153
1,070 3,021 574 7 56 69 363 20,694
15,589 4,355 1,199 1,394 562 2,520
5,288 1 45 78 67 80 8,214 3,145
894 2,850 408 3 56 264 594 23,803
14,794 5,568 599 1,249 548 2,516
3,955 8 37 114 98 102 9,690 3,322
2,197 2,686 509 3 54 203 716 24,484
EQUITY & LIABILITIES
Equity
(A) Share Capital (B) Other Equity Non Controlling Interest Non-current Liabilities Financial Liabilities (A) Borrowings (B) Lease Liabilities (C) Other Non Current Financial Liabilities Provisions Other Non current Liabilities Deferred Tax Liabilities (Net) Current Liabilities Financial Liabilities
(A) Borrowings
(B) Lease Liabilities (C) Trade Payables (D) Other Current Fin Liabilities Provisions Current Tax Liabilities (Net) Other Current Liabilities GRAND TOTAL - EQUITIES & LIABILITES
11,932
14,002
244 11,599 89 3,068
244 13,682 76 4,215
1,326 1,086 502 62 3 89 5,694
730
201 3,301 531 147 45 739 20,694
2,282 1,057 503 274 2 97 5,586
1,096
230 3,013 454 25 - 768 23,803
14,995
244 14,672 78 4,235
2,612 901 417 172 2 131 5,255
1,206
201 2,373 736 128 12 599 24,484
Investor Presentation | Sheela Foam Ltd.
32
Consolidated Financial Performance
Revenues (INR Mn)
EBITDA (INR Mn) and EBITDA Margins (%)
PAT (INR Mn) and PAT Margins (%)
29,818
21,414
21,736
24,372
14,513
FY19
FY20
FY21
FY22
H1-FY23
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
2,109
9.85%
FY19
3,642
3,004
3,149
13.82%
14.94%
1,442
10.56%
9.94%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
3,000
2,500
2,000
1,500
1,000
500
-
2,402
2,187
1,943
1,337
6.24%
8.94%
9.86%
961
7.33%
6.62%
FY20 EBITDA
FY21
FY22
H1-FY23
EBITDA Margins
FY19
FY20
PAT
FY21
FY22 PAT Margins
H1-FY23
Net Debt to Equity Ratio (x)
Networth (INR Mn)
ROE and ROCE (%)
0.21
0.22
14,002
14,995
11,932
0.16
0.12
9,264
7,301
0.01
FY19
FY20
FY21
FY22
H1-FY23
FY19
FY20
FY21
FY22
H1-FY23
Investor Presentation | Sheela Foam Ltd.
20.9%
21.0%
20.1%
18.3%
19.2%
19.4%
15.6%
12.9%
FY19
FY20
FY21
FY22
ROE
ROCE
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
33
Capital Market Information
1- year Stock Performance (Up to 30th September 2022)
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Sheela Foam
Midcap Index
Sensex
Shareholding Pattern as on 30th September 2022
Price Data as on 30th September, 2022
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
No. of Share outstanding (Mn)
1 Year Avg. Trading Volume (000)
INR
5.00
2,872.4
4,054 / 2,314
140,118
48.8
30.8
Promoters 72.95%
Public 1.15%
Foreign Portfolio Investors 3.16%
AIF 0.21%
Mutual Funds 22.51%
Investor Presentation | Sheela Foam Ltd.
34
Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Sheela Foam Limited (“Company” or “Sheela Foam Ltd.”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: sheela@valoremadvisors.com
Investor Presentation | Sheela Foam Ltd.
35
THANK YOU