SPORTKINGNSE4 May 2023

Sportking India Limited has informed the Exchange about Investor Presentation

Sportking India Limited

Sp~rt~iqg INDIA LTD.

(Govt. Recognised Three Star Export House)

Regd.&CorporateOffice: 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

sportking@sportking.co.inCINNo.L17122PB1989PLC053162

: www.sportking.co.

GST No.: 03MACS3037Q1 ZA

SIL/2023-24/SE

Date: 04.05.2023

To BSE Limited Phiroze Jeeheebhoy Towers, Dalal Street, Mumbai-40000 1 Script Code: 539221

To National Stock Exchange of India Ltd, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 Symbol: SPORTKING

Subject: Disclosure Requirements)

Investor's

Presentation

under Regulation 2015.

Regulations,

30 of SEBI (Listing Obligations

and

Dear Sir,

Pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015, please fmd attached herewith copy of Investor's Presentation with respect to Performance of the Company for the quarter and year ended 315t March, 2023.

You are requested to take the above mentioned information on your records.

Yours truly,

For SPORTKING INDIA LIMITED

LOVLESH VERMA COMPANYSECRETARY (ACS: 34171)

WORKS:*SPORTKINGSYNTHETICS,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 - May 2023

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.

Financial Performance

DELIVERED STRONG GROWTH WITH SUSTAINED MARGINS

Revenue

+2%

Rs. 2205 crores

Operating EBITDA

Rs. 279 crores

Revenue from Export Businesses

1,220

1,002

FY22

FY23

Margin at 13%

FY23 Revenue Contribution

Operating PBT

Rs. 208 crores

Margin at 9%

Exports

Domestic

45%

Contribution from Export Business

# Operating EBITDA = PAT + Tax expenses + Finance Cost + Depreciation & Amortization- Other Income+ Exceptional Item

# Operating PBT = PAT + Tax expenses – Other Income+ Exceptional Item

Q4FY23 PERFORMANCE (YoY & QoQ)

Revenue from Operations (Rs. in Crs)

EBIDTA (Rs. in Crs)

PBT (Rs. in Crs)

593

+4%

513

534

154

140

+39%

+70%

Q4FY22

Q3FY23

Q4FY23

Q4FY22

Q3FY23

Q4FY23

Q4FY22

Q3FY23

Q4FY23

PAT (Rs. in Crs)

EBITDA %

PAT %

104

+71%

Q4FY22

Q3FY23

Q4FY23

Q4FY22

Q3FY23

Q4FY23

Q4FY22

Q3FY23

Q4FY23

FY23 PERFORMANCE (YOY)

Revenue from Operations (Rs. in Crs)

EBIDTA (Rs. in Crs)

PBT (Rs. in Crs)

2,154

2,205

596

547

279

219

FY22

FY23

FY22

FY23

FY22

FY23

PAT (Rs. in Crs)

EBITDA %

PAT %

409

132

FY22

FY23

FY22

FY23

FY22

FY23

Q4 & FY23 PROFIT & LOSS

Profit & Loss statement (Rs. in Crs)

Q4FY23

Q4FY22

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.)

534

380

122

23% 31

10%

593

337

-4

231

39% 27

154

26%

140

24%

104

18%

Y-o-Y

-10%

-47%

-64%

-70%

Q-o-Q

14%

39%

70%

71%

Q3FY23

513

376

107

21% 32

FY23

2,205

1,558

-15

119

542

25% 116

147

279

13%

219

10%

132

FY22

2,154

1,181

-14

120

867

40% 105

166

596

28%

547

25%

138

409

19%

308

Y-o-Y

-37%

-53%

-60%

-68%

BALANCE SHEET STATEMENT

Equity & Liabilities (₹ in Cr)

Mar’23 Mar’22

Assets (₹ in Cr)

Mar’23 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

(v) Other Current Liabilities

(vi) Current Tax Liabilities

(Vii)Provisions

Total Current Liabilities

Total Equity & Liabilities

13 887

900

343 1 12 21 -

377

131 0 103 43 11 9 1

298

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

(vi) Other Current Assets

Total Current Assets

1575

1554

Total Assets

756

790

372

234

110

785

1575

381

496

522

411

1058

1554

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

Mar-23

Mar-22

189

287

300

587

-67

520

-392

-117

547

616

-383

233

-137

-103

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

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 state-of-the-art plant for manufacturing of cotton compact yarn achieving a total overall spinning capacity 274K+ spindles.

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 with 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 1,38,720 Spindles upto November 2013.

Successful commissioning of 10MW Rooftop Solar Power Project for in house consumption. 1st Phase & 2nd Phase capacity addition 0f 40,800 & 63,072 Spindles respectively completed for manufacturing of Polyester Cotton yarn and cotton yarn (compact)

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 FY23

45.0%

55.0%

Rs. 2,205 crores

International

Domestic

We are representing India on a world stage with average exports worth more than US $ 150-175 million.

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

3,12,672 Spindles

Capacity utilisation of all units more than 90%

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

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

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

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

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.

MARQUEE CUSTOMERS

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

Harpreet Kaur Kang Non Executive Independent Director

Anjali Avasthi Non Executive Non 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

• Ms. 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 has a Bachelor’s degree in Arts

• She has experience of managing Garments Business for many years

MANAGEMENT TEAM

Sandeep Sachdeva Chief Financial Officer

• Sandeep Sachdeva is a Qualified Chartered Accountant & Company Secretary with experience of more than 22 years in accounting & finance, trading, banking industries covering, handling of Direct and Indirect taxation and various other matters

• He looks after overall works related to Finance, Finalization of company’s Balance sheet, Direct/Indirect taxation etc.

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

CERTIFICATES & COMPLIANCES

Global Organic textile Standard

Organic Content Standard

Oeko-Tex

Fairtrade

ISO 9001 2015

Global Recycle Standard

Way Forward

GOVERNMENT SUPPORT TO TEXTILE SECTOR

Textile Cluster Development Scheme (TCDS) The Indian Textile Ministry is implementing the Textile Cluster Development Scheme (TCDS) from 2021-22 to 2025-26 with a view to create an integrated workspace and linkages-based ecosystem for existing and potential textile units

PLI Schemes Government is set to come out with second PLI scheme in consultation with industry to focus on segments which are not covered in the earlier scheme like home textile,etc.

0505

0404

0303

Remission of duties & taxes on Exports Government has approved continuation of RoSCTL with the same rates till 31st March 2024

0101

Free Trade Agreements o Recent FTAs signed between India and UAE, ECTA signed between India and Australia

o India is currently in process of negotiating FTAs with EU, UK, Canada, Israel and other GCC countries/regions

Mega textile parks o Approval seven mega textiles and apparel parks under “PM-Mitra” with capital support of Rs 44.4bn over five years from the central and state governments

o Development Capital Support (DCS) of up to Rs 5bn will be given to all greenfield parks and the central government has also announced competitiveness incentive support of Rs 3bn for the early establishment of textiles manufacturing units.

INDIAN TEXTILE SECTOR- READY FOR A TRANSFORMATION

India’s textiles sector is at an inflection point The sector can act fast and grab the huge opportunity opening up due to a change in global textile trade patterns. While the opportunity is huge, the government and the industry need to act in coordination, and fast, as the world will not wait.

Working population Large working population is an asset for this industry India has a large working population

Strong belief in India’s capability to increase market share in global textiles The structural story for the sector intact, and the government and industry will be able to address short-term concerns together 4-5 years will be required to see the real benefits of China +1 strategy

Low-cost countries are a natural choice for textiles

Textiles manufacturing is labour and capital intensive, which is why its manufacturing base has shifted organically to developing and low-cost countries.

Developed countries such as the USA, Europe, Australia, and Japan are major importers of textiles, as they find this cheaper than producing them locally.

China’s natural advantages are eroding slowly While China’s market share is large, its increasing per capita income and labour costs have resulted in its market share steadily declining in global trade since 2015

BUSINESS STRENGTHS

Product Range

Well diversified range of products suitable for use in manufacture of woven and knitted fabrics for summer and winter wear

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

04 Competitive Prices

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

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

CAPACITY BUILTUP OVER THE YEARS

Continuous capacity addition to support robust growth in our business

3,78,576

63,072

40,800

34,464

-6,520

68,256

Closure of a unit(Small capacity)

24,480

52,800

12,096

23,232

28,800

17,856

12,720

1996

1998

2006

2007

2011

2012

2013

2014

2019

2022

2023

6,520

1994

Total Existing Capacity

BUSINESS UPDATES DURING FY23

Rooftop Solar Power Projects at Bathinda Unit

Completion of Phase 1 & 2 capacity expansion Projects at Bathinda Unit

Completion of 10MW Rooftop Solar Power Project at for in house consumption

Completion Month- June 2022 Objective to reduce greenhouse gas emissions and power cost

New 15MW Rooftop Solar Power Project for in house consumption

Board approval received for new 15 MW Solar Power Project for captive consumption Expected to be commissioned by September 2023

 



Completion of phase 1 & phase 2 expansion project

 1st Phase capacity addition – 40,800 Spindles for manufacturing of Polyester

Cotton yarn – Completed

 2nd Phase capacity addition – 63,072 spindles for manufacturing of cotton

compact yarn – Completed in Q4 FY23 as planned

HISTORICAL FINANCIAL CHARTS

Revenue from Operations (Rs. in Crs)

EBITDA (Rs. in Crs)

PBT (Rs. in Crs)

+15.9%

2,154

2,205

+22.5%

596

+50.0%

547

1,055

1,160

1,355

1,306

101

129

136

211

279

219

140

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

PAT (Rs. in Crs)

EBITDA %

PAT %

+47.1%

409

28%

19%

132

10%

11%

10%

16%

13%

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

IMPROVING DEBT PROFILE & FINANCIAL RATIOS

Short term

TOL/ TNW

Current Ratio

395.0

130.0

1.03

0.75

2.28

1.70

Mar-22

Mar-23

Mar-22

Mar-23

Mar-22

Sep-22

Substantial reduction in availment of short term bank borrowing by Rs. 265 crores as on 31st March 2023 resulting in improvement of Financial Ratio(s).

KEY FINANCIAL RATIOS

ROCE #

ROE *

76%

73%

15%

20%

16%

32%

22%

10%

11%

28%

16%

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

Interest Coverage ratio

Long term Debt/Equity Ratio

3.5

3.3

2.4

5.8

20.8

12.1

0.99

0.80

0.61

0.54

0.38

0.18

FY18

FY19

FY20

FY21

FY22

FY23

FY18

FY19

FY20

FY21

FY22

FY23

# ROCE = EBIT/ Average Capital Employed

* ROE = PAT/ Average Net Worth

* Interest Coverage Ratio = EBITDA/ Finance Cost

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’23 2,205 1,558 1 -15 119

542 25% 116 147

279 13% 48 23 12

219 10% 30 58

132 6% 99

Mar'22 2,154 1,181 0 -14 120

867 40% 105 166

596 28% 44 29 24

547 25% - 138

409 19% 308

Mar'21 1,306 785 0 10 112 399 31% 87 103 209 16% 52 36 19 140 11% 22 33 85 7% 63

Mar'20 1,355 901 1 7 113 334 25% 97 100 136 10% 63 58 3 18 1% - 6 12 1%

Mar'19 1,161 756 1 -2 96 309 27% 83 97 129 11% 54 39 2 38 3% - 14 24 2%

Mar'18 1,055 682 1 13 95 175 25% 74 89 101 10% 56 29 13 29 3% - 10 19 2%

THANK YOU

Sportking India Limited CIN: L17122PB1989PLC053162

Mr. Lovlesh Verma 01612845456 cs@sportking.co.in www.sportking.co.in

Mr. Devansh Dedhia +91 9930147479 Bhavin.soni@linkintime.co.in

Mr. Rajesh Agrawal +91 9967491495 Rajesh.Agrawal@linkintime.co.in

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