SPALNSE18 May 2023

S. P. Apparels Limited has informed the Exchange about Investor Presentation

S. P. Apparels Limited

S.PAPPARELS LTD.

Regd. Office : 39-A, Extension Street, Kaikattipudur, AVINASH! -61 654, Tamil Nadu, India. Phone +91-4296-714000 E-mail : spindiaa s-p-apparels.com Web: www.s-p-apparels.com CIN No.: L18101TZ2005PLC012295

©) UKAS

18" May. 2023

The Listing Department National Stock Exchange of India Limited 'Exchange Plaza', Bandra-Kurla Complex, Bandra (East). Mumbai - 400 051.

Symbol: SPAL

The Listing Department BSE Limited Phiroze Jecyeebhoy Towers. Dalal Street, Mumbar - 400 4.

Scrip Code: 540048

Dear Sirs,

Sub: Revised Financial Presentation

Further to our financial presentation submitted with the exchanges on 7.05.2023. we herewith enclosed the copy of revised Financial Presentation for Q 4 FY 23 results of the Company with Disclaimer Clause.

Kindly take the same on your records

Thanking you,

For S.P.Apparels Limited,

K.Vinodhini Company Secretary and

Compliance Officer

Encl: As above

(A GOVT. OF INDIA RECOGNISED THREE STAR EXPORT HOUSE)

Dressing the Future....

TABLE OF CONTENT

Sr No.

Content

Q4FY23 & FY23 – Results Highlights

Company Overview

Financial Highlights

3 2 Y F 4 Q

3 2 Y F

Q4 & FY23: Consolidated Performance Highlights

Adj. Total Revenue (Q4FY23)

Adj. EBITDA (Q4FY23)

PAT (Q4FY23)

Consolidated

YoY Growth %

Consolidated

Margins %

Consolidated

₹2,728.9 Mn

₹404.8 Mn

14.8%

₹205.1 Mn

Margins % 7.5%

Adj. Total Revenue (FY23)

Adj. EBITDA (FY23)

PAT (FY23)

Consolidated

YoY Growth %

Consolidated

Margins %

Consolidated

₹10,984.0 Mn

27%

₹1,728.9 Mn

15.7%

₹825.1 Mn

Margins % 7.5%

EPS (Q4FY23)

EPS (FY23)

ROE % (FY23)

Cash Adj. ROCE % (FY23)

INR 8.2 per share

INR 32.4 per share

18.3%

17.6%

FY23: YoY growth FY23 vs FY22 | FY23: YoY growth Q4FY23 vs Q4FY22

Segmental Highlights (Consolidated)

Garment Exports

SPUK

Retail

Operational Revenue (Rs. Mn)

9,600.4

7,428.5

762.4

580.0

805.6

480.2

2,198.4

2,325.5

221.3

147.0

256.5

160.6

Q4FY22

Q4FY23

FY22

FY23

Q4FY22

Q4FY23

FY22

FY23

Q4FY22

Q4FY23

FY22

FY23

EBITDA (Rs. Mn) & Margin (%)

20.2%

17.8%

20.9%

18.7%

1,791.0

5.5%

NA%

3.5%

26.5

1,554.5

443.6

413.2

12.1

1.2%

7.2

2.2

-33.7

-51.5

Q4FY22

Q4FY23

FY22

FY23

Q4FY22

-1.2 Q4FY23

FY22

FY23

Q4FY22

Q4FY23

FY22

Notes: 1. 2.

Total revenues include realised gain on account of foreign exchange fluctuations (accounted in other income) In addition to (1), EBITDA calculation excludes unrealised MTM gain / loss on account of foreign exchange fluctuations (accounted in other expenses)

-75.3 FY23

P&L Statement Highlights (Consolidated)

Particulars (In Rs Mn)

Revenue from Operations

Gain on account of Foreign Currency Fluctuations

Total Revenues

COGS

Gross Profit

Gross Margin %

Employee Expenses

Other Expenses excl. MTM gain / loss on account of Foreign Currency Fluctuations

Adj. EBITDA

Adj. EBITDA Margin %

MTM (Gain) / Loss on account of Foreign Currency Fluctuations

Depreciation

Finance Cost

Other Income excl. Gain on account of Forex Fluctuations

PBT

Exceptional Items

Tax Expense

PAT

PAT Margin %

Earnings Per Share (EPS) In Rs.

Q4 FY23

Q4 FY22

2,751.6

-22.7

2,728.9

1,240.9

1,488.1

54.5%

613.3

470.1

404.8

14.8%

7.4

91.7

70.7

19.0

2,539.0

42.1

2,581.1

1,103.8

1,477.2

57.2%

530.7

489.1

457.4

17.7%

-31.2

90.4

36.5

4.2

YoY%

FY23

FY22

10,778.8

8,594.3

-12%

205.2

10,984.0

4,857.7

6,126.3

55.8%

2,386.7

2,010.7

1,728.9

15.7%

97.4

361.5

186.2

24.9

77.6

8,671.9

3,541.3

5,130.6

59.2%

1,903.0

1,699.3

1,528.3

17.6%

-67.2

346.3

118.5

17.3

YoY%

25%

27%

19%

13%

254.1

365.8

-31%

1,108.7

1,147.9

-3%

49.0

205.1

7.5%

8.18

113.3

252.5

9.8%

9.83

-19%

1.1

282.5

825.1

7.5%

32.37

0.0

301.0

846.9

9.8%

32.96

Notes: 1. 2. 3. PAT Margin = Reported PAT / Total Revenues 1

-3%

Balance Sheet Highlights (Consolidated)

ASSETS (Rs. Mn)

Non-Current Assets

a. Property, Plant and Equipment

b. Right of Use Assets

c. Capital work-in-progress

d. Intangible Assets

e. Intangible Assets under development

f. Financial Assets

- Investments

- Loans and Advances

- Other financial assets

g. Other non-current assets

Total Non-Current Assets

Current Assets

a. Inventories

b. Financial Assets

- Current Investments

- Trade Receivables

- Cash and cash equivalents

- Bank Balances other than (1.9A) above

- Other financial assets

c. Other current assets

Total Current Assets

Total Assets

Mar’23

Mar’22

EQUITY AND LIABILITIES (Rs. Mn)

Mar’23

Mar’22

4,223.7

304.4

98.7

58.8

3.4

404.2

3.1

210.8

10.1

5,317.1

4,105.1

331.9

77.5

58.9

1.8

327.9

42.0

Equity

a. Equity Share capital

b. Other Equity

Total Equity

Minority Interest

Liabilities

Non-current liabilities

a. Financial Liabilities

- Borrowings

- Lease Liabilities

- Other financial liabilities

b. Deferred tax liabilities (net)

c. Other non-current liabilities

4,945.0

Total Non-Current Liabilities

2,969.1

3,320.3

726.2

1,047.3

601.6

42.2

266.9

5,653.5

26.2

1,157.4

519.1

76.0

97.8

474.5

5,671.2

10,970.6

10,616.2

Current liabilities

a. Financial Liabilities

- Borrowings

- Lease Liabilities

- Trade payables

(A) Total outstanding dues of micro enterprises and small

enterprises

(B) Total outstanding dues of creditors other than micro

enterprises and small enterprises - Other financial liabilities

b. Other current liabilities

c. Provisions

Total Current Liabilities

Total Equity and Liabilities

250.9

6,485.2

6,736.1

-65.0

256.9

6,120.8

6,377.7

-65.3

157.9

284.6

106.1

291.4

0.2

840.2

362.7

311.2

134.8

330.8

0.2

1,139.7

2,004.1

1,637.6

0.3

1.7

130.8

860.3

299.2

92.8

71.8

239.1

891.3

235.7

72.5

86.4

3,459.2

3,164.1

10,970.6

10,616.2

Company Overview

SPAL founded in 1989, is India's biggest manufacturer and exporter of

knitted clothes for infants and children. These are produced in integrated

facilities that enable end-to-end garment manufacturing services. SPAL

offers complete garment production services, from fibre to fashion.

Dressing the Future....

S. P. Apparel (SPAL) – At Glance

•

SPAL is one of the leading manufacturers and exporters of knitted garments for infants and children in India

• Provides end-to-end garment manufacturing from Yarn to finished products including body suits, sleepsuits, tops, and bottoms

•

Strong promoter pedigree with more than 40 years of experience in the textile and apparel industry

Strong Leadership:

SPAL is a specialized player in the highly challenging infant & children wear knitted garment industry along with adult category

S H T G N E R T S Y E K

Brand of Choice

• Preferred vendor through long-standing relationships with reputed international brands etc

• Stringent quality compliance, superior in-house product development, and certified testing laboratories

Integrated Facilities

to key raw materials & skilled labour

Demonstrated ability to set up integrated facilities to scale up operations. Currently operating 18 facilities having close proximity

Technological Capabilities

Advanced manufacturing machinery with the latest technology and automation

Journey So Far

1989 Started export operations as a partnership firm

2006

1998 Set-up manufacturing facility at Neelambur

2003 Set-up first in-house embroidery facility at Thekkalur

▪ Investment by NYLIM

▪ Investment in JV for manufacturing & marketing of

the “Crocodile” Brand

2007-08

Amalgamation with Sri Balaji Bakkiam Spinning Mills

2016

▪ Listed on BSE / NSE

▪ Repayment of Loans to reduce leverage

1989- 2003

2004- 2005

2006- 2008

2008- 2015

2016

2017- 2022

2004

Set-up of flagship factory at Avinashi

2005

Streamlining of operations to integrate factories, enhance efficiencies, and backward integration

2014

Commissioned dying plant at Perundurai

Incorporation of SP Apparels UK to cater to increasing integration, get a closer-to-client presence

Integration/expansion of manufacturing facilities

to increase operational efficiency

Expansion of Crocodile brand in various states and cities in India

2008-13

2017-22

Strong Leadership to Support Effective Governance

Mr P. Sundararajan Chairman and Managing Director

Ms S. Latha Executive Director

Mr S. Chenduran Joint Managing Director

• Founder director of SPAL with 36 years of experience in the

• Founder director of SPAL with 29 years of experience in the

• Six years of experience in the textile and apparel industry

textile and apparel industry

• Bachelor of Science from the Bangalore University

• MS in Business & Management from University of Strathclyde

Ms S. Shantha Joint Managing Director

Ms P.V. Jeeva, Chief Executive Officer

Mr V. Balaji, Chief Finance Officer

• B.Tech (Textiles) & MBA from PSG Institute of Management

• immense knowledge in marketing and textiles makes her

contribution valuable to achieve the visions of the Company

• 35 years of experience in the textile and apparel industry

• Handles garments division and has been associated with SPAL

since July 1986

• 21 years of experience in the field of finance and accounts

• Qualified Chartered Accountant

• Plays a key role in managing banking relationships

Mr A.S. Anandkumar Independent Director

• 47 years of experience in banking

B o a r d o f D i r e c t o r s

Mrs H .Lakshmi Priya Independent Director

Mr C. R. Rajagopal Independent Director

• 20+ years of experience in corporate advisory, contract

• Core areas of expertise -

finance, private equity, mergers,

documentation, private equity & venture capital

• BA, LLB (Hons) from National

las School of India University,

• Masters of Science from the University of Madras

Bangalore in 1996 v

Mr V. Sakthivel Independent Director

• 44 years of experience in the fields of commerce and

accountancy

• Qualified Chartered Accountant and Certified I.S. Auditor

acquisitions and reorganisations

• Chartered Accountant having 35+ years of experience

In-House Fully Integrated Facilities

SPINNING

KNITTING

DYEING

CUTTING

PRINTING

AUTOMATED EMBROIDERY

SEWING

AUTOMATED SEWING ASSEMBLY LINE

SEMI-AUTOMATED INVENTORY MANAGEMENT

Developed Capabilities To Become a Leading Infant & Children's Wear Exporter from India

Demonstrated manufacturing excellence for over 3 decades

Meeting stringent compliance requirements of international customers

Clear understanding of buyer preferences and specifications of knitted garments and embellished garments in infants and children category

Long-standing relationships with reputed global brands

Ability to consistently deliver high quality products on timely basis

Company is working towards sustainable growth by continuously working on improving its ESG matrix

Dedicated design team in UK

Exports Trend

Capacity Utilization

Export Volumes & Realization

70%

58%

Export Volumes (mn pcs) & Net Sales Realisation in INR

95.7

49.2

103.3

59.9

98.6

57.6

107.3

42.1

115.3

50.2

140.2

59.0

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

Quality is a key essence of our success

SPAL places a strong emphasis on upholding highest standards of quality, assurance, and compliance throughout the

apparel manufacturing processes

Stringent quality control checks at every stage, from fabric to garment, ensure top-notch product quality, free

from any metal bits, needle tips, or sharp edges

SPAL Lab's NABL accreditation is a testament to their unwavering commitment to upholding the highest

standards of quality and reliability

Rigorous inspections eliminate defects, ensuring exceptional quality, with an internal rejection rate below

international standards, reflecting our commitment to quality control

SPAL has been awarded by the customer for quality for self-certification for safety, clearance, shade, and fit approvals,

demonstrating our commitment to delivering high-quality and compliant products

TESCO ‘F&F Gold Rated Supplier Award’ 2013

Marks and Spencer

award 2011

Proficient In-House Design Team

SPAL’s core competency lies in understanding the latest fashion and trends to suit the customer’s buying preferences

Dedicated in-house design and merchandising team of designers located at SPUK and at our Corporate Office in India

Use of latest technology for developing products and styles which are based on prevalent fashion trends

Design development, sampling, and fitment form an integral part of our operations and are considered an effective tool for converting customers’ needs into a finished product

Key Industry Entry Barriers

• Labour intensive operations

Skilled Labour

• Employee training & skill development

• Employee occupational health & welfare

Products

• Cater to infants and children

• Manufacture high-fashion garments

Health & Safety Regulations

• Stringent safety and quality requirements in developed markets

• Severe restrictions on the use of hazardous chemicals, dyes,

accessories, etc to prevent harming infants and children

Manufacturing Capacbilities

• Demands large variety and small batch size orders

• Highly complex manufacturing

Ethics

• Ethical factories with best-in-class standards

• Employee welfare initiatives that align with industry-

leading standards

Preferred Vendor To Reputed International Brands

Strong Pedigree

Leading children wear manufacturer under the leadership of Mr. Sundararajan, CMD with more than

40 years of experience in apparel industry

Brand Signatures

We are the preferred vendor of choice with a strong relationship with customers of over 2 decades.

We are approved suppliers to almost all major children wear brands

WHY SPAL?

SPAL IS THE PREFERRED VENDOR FOR KNITTED GARMENTS

FOR INFANTS AND CHILDREN TO REPUTED INTERNATIONAL

BRANDS AND RETAILERS

Integrated Manufacturing

• Expertise in concurrently managing multiple large orders with a diversified product range including body suits, sleepsuits, tops, and bottoms

• Ethically, Environmentally,

and Socially

compliant

organization

100% Backward integrated right from product development to garmenting helps us to give the best

• No bulk returns from customers since the inception

superior quality products to customers

Location Advantage

Located near Tirupur – the hub for knitted children’s garments, convenient access to skilled labour,

raw material, and proximity to the international port

• Ability to offer end-to-end garments manufacturing services from the design to the manufacture of the garments

• Product Safety is the key focus of the company

• Exclusive Design support from dedicated in-house design

team

ESG

Mission Statement:

"To achieve carbon neutrality by the year 2030"

Vision Statement:

“To be a sustainable practise leader by promoting the use

renewable energy and prioritising the usage of

recycled materials in order to protect our world for future

generations”

At SPAL we are committed to building a sustainable future for all by incorporating

sustainability into every aspect of our business. From our core strategies to our

everyday decision-making, sustainability is an integral part of everything we do. We

are dedicated to fostering innovation, optimizing our processes and platforms, and

leveraging our talented workforce to achieve sustainable growth.

Sustainability at SPAL

Our approach to sustainability is guided to create long-term value in a balanced and responsible manner while making choices that positively impact environment, people, and communities.

OUR PILLARS

Sustainable business

Responsible production

Creating social impact

Emphasis on procuring power renewable energy solutions

from

Commitment to conducting business in an activities environmentally responsible manner

Adoption of eco-friendly and best practices in manufacturing & focus on high quality products

Committed to social responsibility, including community development, education, women's empowerment, occupational health and safety.

Commitment to transparency in ESG disclosures, adherence to a business code of conduct and efficient business operations

Collaboration with stakeholders create a greener carbon economy

to future and a low

From Awareness to Action: Making a Difference for the Environment

Our company is committed to conducting business activities in an environmentally responsible manner. We focus on reducing our environmental footprint across the value chain and returning back to nature what we consume.

Environmental Sustainability Through Effective Risk Assessment

Our ERM framework includes bi-annual risk assessments to identify and mitigate environmental risks, prioritizing sustainability and managing our environmental impact towards a greener future.

Biological oxidation process.

Commitment to Sustainability through Renewable Energy

We prioritize sustainability in our operations by supporting stakeholders in areas such as renewable energy and sustainable production. We procure power from renewable energy solution companies and source our energy consumption from renewable sources, including windmills.

Share of renewable energy through wind power generation.

Tree plantation

We have implemented a tree plantation initiative to preserve the environment for a sustainable future. We have distributed over 30,000 saplings to people living near our factories and adopted a One-for-One model, planting trees in all our factories and giving saplings to all our employees.

Invested into the solar energy, committed to increase to 5MW

Eco-Friendly Production Process

We follow a chemical-free 2200 KLD biological oxidation process and have adopted best techniques like installing a water preheater, dust collector, and water treatment plant to minimize its environmental impact. We are committed to implement environmentally responsible practices and continuously improve processes to reduce the environmental footprint..

Waste recovered and reused as Process water

We operate our effluent treatment plant as Zero Liquid Discharge plant

Building Stronger Communities through Social Responsibility

Building a Stronger Community: Our Efforts for Betterment

Workplace Safety and Sanitation Measures

Women Empowerment

Comprehensive support for needy, access to education and skill development opportunities, supply of food materials, medical facilities and medicines, and other survival needs.

evacuation

emergency

safety, Electrical

Regular drills, comprehensive training for Occupational safety, safety, Environmental Fire Protection, Observance of Road safety week, National safety week, Environmental day and Fire safety day

Free Medical facilities

Gender Equality

Provision of free consultation, medical supplies, BP Centre, apparatus facilitation of Medicine room and Physiotherapy room to Government hospital with other renovations

Primary Healthcare

We follow the principle of 'Equal Pay for Equal Work’ and to empower women financially promote gender equality and conduct Awareness programmes.

number

Total of permanent women employees on as 31st March 2023

Women hold 22% of our top management and 37% of our middle management

Financial Highlights

Financial Highlights (1/2)

Consolidated Figures (in Rs. Mn)

REVENUES

Adj. EBITDA & EBITDA MARGIN

Profit After Tax (PAT) & PAT MARGIN

8263.8

8089.7

8671.9

6523

10,984.0

15.3%

10.8%

16.4%

17.6%

15.7%

1,238.3

895.3

1,072.0

1,528.2

1,728.9

9.1%

733.7

5.6%

6.6%

9.8%

7.5%

846.9

825.1

469.2

431.7

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

LEVERAGE ANALYSIS

RETURN METRICS

0.31

4,838.6

0.26

5,232.2

5,583.9

0.20

6,377.7

0.22

6,736.1

1,477.1

1,380.9

1,135.7

1,414.8

0.06

402.5

FY19

FY20

FY21

FY22

FY23

21.9%

19.9%

15.5%

10.5%

14.1%

11.2%

20.2%

17.7%

18.3%

17.6%

FY19

FY20

FY21

FY22

FY23

Equity

Net Debt

Net Debt/Equity

ROE %

Cash Adjusted ROCE%

Notes: Net Debt = Total Debt – Cash & Current Investments, For FY 20 Long term debt includes right to use property obligation close to Rs. 360 Mn

Notes: ROE = PAT before MI / Avg. Equity (Excl. preference shares) + MI (based on cash adjusted PAT) Cash Adj. ROCE = EBIT / Avg. Capital Employed (excl. cash & current investments),

Financial Highlights (2/2)

Figures (in Rs. Mn)

GARMENT DIVISION

12000

10000

8000

6000

4000

2000

21.0%

5,733.7

17.6%

6,805.0

12.0%

7,026.4

20.2%

20.9%

5,368.7

7,429.3

18.7%

9,600.4

1,202.4

1,194.4

842.6

1,083.3

1,553.2

1,791.0

FY18

FY19

FY20

FY21

FY22

FY23

Garment Revenue

Garment EBITDA

RETAIL DIVISION

3.6%

2.1%

4.4%

-13.1%

-10.7% -9.4%

817.8

776.3

646.2

395.0

480.2

23.2

17.0

33.8

-51.9

-51.5

FY18

FY19

FY20

FY21

FY22

Retail Revenue

Retail EBITDA

805.6

-75.3

FY23

900 800 700 600 500 400 300 200 100 0 -100 -200

SPUK

5.3% 768.1

762.4

3.5%

580.0

5.6%

481.8

3.7%

506.6

3.5%

353.6

12.5

18.9

40.6

26.5

1.2%

7.22

FY18

FY19

FY20

FY21

FY22

FY23

SPUK Revenue

SPUK EBITDA

EBITDA Margin (%)

Shareholding Structure

SHAREHOLDING PATTERN – 31st March 2023

Non-Institutions 19.3%

Promoters 61.9%

Institutions 18.8%

Promoters

Institutions

Non-Institutions

Source: BSE

KEY SHAREHOLDERS – 31st March 2023

DSP Small Cap Fund

ICICI Prudential Mutual Fund

UTI Mutual Fund

Franklin India Smaller Companies Fund

8.37%

3.86%

3.71%

1.09%

Disclaimer

This presentation has been prepared by S. P. Apparels Limited solely to provide information about the Company. 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 such information or opinions contained herein. None of the Company nor

any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this

presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. The

Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes.

Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", 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. Actual results may differ materially from these forward-looking statements due to number of factors, including future changes or developments in

the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India. Please note that this presentation

is based on the publicly available information including but not limited to Company’s website and Annual Reports. This communication is for general information purposes

only, without regard to specific objectives, financial situations and needs of any particular person. Please note that investments in securities are subject to risks including loss

of principal amount. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the company and neither any part of it shall form

the basis of or be relied upon in connection with any contract or commitment whatsoever.

LET'S CONNECT!

SP Apparels

EY LLP

Mr. V. Balaji, Chief Financial Officer

Mr. Vikash Verma / Mr. Abhishek Bhatt / Mr. Sumedh Desai

BalajiV@spapparels.com

Vikash.verma1@in.ey.com / Abhishek.bhatt3@in.ey.com / Sumedh.desai@in.ey.com

Visit us at: www.s-p-apparels.com

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