Sportking India Limited has informed the Exchange about Investor Presentation
sp~rtk..iqCJINDIA LTD.
(Govt. Recognised Three Star Export House)
Regd.&CorporateOffice:Vill. Kanech, Near Sahnewal, G.T. Road, Ludhiana-141120 Admn. Office E-mail Website
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.L 17122PB 1989PLC053162 GST No.: 03AAACS3037Q1ZA : www.sportking.co.in
SIL/2023-24/
SE
To BSE Limited Phiroze Jeeheebhoy Towers, Dalal Street, Mumbai-400001
Date: 25.07.2023
To National Stock Exchange of India Ltd, Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai- 400051
Script Code: 539221
Symbol: SPORTKING
Sub: Investor's Presentation
Dear Sir,
Pursuant Disclosure Requirements), Regulations 2015, please Investor's Presentation with respect 30th June, 2023.
to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and herewith copy of find attached to Performance of the Company for the quarter ended
You are requested to take the above mentioned information on your records.
Yours truly,
For SPORTKING INDIA LIMITED
LOVLESHVERMA COMPANYSECRETARY (ACS: 34171)
WORKS:'SPORTKING SYNTHETICS,Vill. Kanech, Near Sahnewal, G.T. Road, Ludhiana-1411Z0 Ph. : (0161) 2845456,57,59,60
Fax: 2845458
'SPORTKING PROCESSOR, Village Barrnalipur, 'SPORTKINGINDUSTRIES,Village Jeeda, NH·15, Kotkapura Road, Bathinda·151201 Ph. : (0164) 2767763, 544, 644, 744 Fax: 2767844
Near Doraha, G.T. Road, Ludhiana . 141416 Ph.
(01628) 244152, 244153
:
Lovlesh VermaDigitally signed by Lovlesh Verma Date: 2023.07.25 17:25:01 +05'30' Investor Presentation - July 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.
2
Q1 FY24 - Financial Performance
DELIVERED STRONG GROWTH WITH SUSTAINED MARGINS
Revenue from Operations
Rs. 539 crores
Revenue from Export Businesses (Rs. in crores) 319
217
251
EBITDA
Rs. 50 crores Margin at 9%
Profit Before Tax
Rs. 24 crores Margin at 5%
Q1 FY23
Q4 FY23
Q1 FY24
Q1 FY24 Revenue Contribution
53%
47%
47%
Contribution from Export Business
Exports
Domestic
* Change in Revenue from Operations on a quarterly basis
4
Q1 FY24 PERFORMANCE (Y-o-Y & Q-o-Q)
Revenue from Operations (Rs. in Crs)
EBIDTA (Rs. in Crs)
PBT (Rs. in Crs)
606
534
539
134
116
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
56
50
42
24
PAT (Rs. in Crs)
EBITDA %
PAT %
83
22
14
31
18
10
9
6
3
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY24
5
Q1 FY24 PROFIT & LOSS
Profit & Loss statement (Rs. in Crs)
Q1FY24
Q1FY23
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 %
539
412
0
-28
37
118
22%
32
36
50
9%
5
20
10
24
5%
0
6
18
3%
606
390
0
-18
30
204
34%
26
44
134
22%
1
10
9
116
19%
0
33
83
14%
Y-o-Y
-11%
-42%
-63%
-79%
-78%
Q4FY23
534
380
0
0
32
121
23%
31
35
56
10%
2
14
2
42
8%
0
11
31
6%
Q-o-Q
1%
-2%
-11%
-42%
-41%
6
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
8
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. Capex undertaken for additional 15MW 1st Phase & 2nd Phase capacity addition 0f 40,800 & 63,072 Spindles respectively completed for manufacturing of Polyester Cotton yarn and cotton yarn (compact)
9
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 Q1 FY24
Rs. 539 crores
47.0%
53.0%
Domestic
International
We are representing India on a world stage with average exports worth more than US $ 150-175 million.
10
MANUFACTURING FACILITIES & CAPACITIES
Units
Manufacturing
Installed Capacities
Unit I - Spinning Unit
Unit II - Dye House
Unit III - Spinning Unit
Acrylic/Blended Acrylic Polyester Yarn/ Blended Polyester Cotton yarn
Support to Unit No. I & their synthetic III for dyeing yarn fibre/ processing
compact/contamination free cotton / Polyester cotton blended yarn
65,904 Spindles
15-20 MTPD
3,12,672 Spindles
Capacity utilisation of all units more than 90%
11
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
12
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
Electricity Infrastructure Development Fund of 13.33%. of the cost the existing unit at of power Bathinda) has been waived by the Government of Punjab
(for
13
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
14
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.
15
MARQUEE CUSTOMERS
16
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 49 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
• Anjali Avasthi has a Bachelor’s degree in Arts
• She has experience of managing Garments Business for many years
• 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.
17
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,
Exports & Imports, key business decisions, 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
18
CERTIFICATES & COMPLIANCES
Global Organic textile Standard
Organic Content Standard
Oeko-Tex
Fairtrade
ISO 9001 2015
Global Recycle Standard
19
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.
21
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
22
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
23
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
2014
2019
2022
2023
6,520
1994
Total Existing Capacity
24
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
Additional 10 MW of roof top solar power capacity has come online taking the aggregate capacity to 20MW The remaining 5 MW will be operationalized by September of this financial year
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
25
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
29
38
18
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%
19
24
12
85
132
10%
11%
10%
16%
13%
6%
6%
2%
2%
1%
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
FY18
FY19
FY20
FY21
FY22
FY23
26
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%
9
Mar'19 1,161 756 1 -2 96 309 27% 83 97 129 11% 54 39 2 38 3% - 14 24 2%
17
Mar'18 1,055 682 1 13 95 175 25% 74 89 101 10% 56 29 13 29 3% - 10 19 2%
4
27
THANK YOU
Sportking India Limited CIN: L17122PB1989PLC053162
Mr. Lovlesh Verma 01612845456 cs@sportking.co.in www.sportking.co.in
Mr. Devansh Dedhia +91 9930147479 Devansh.dedhia@linkintime.co.in
Mr. Irfan Raeen +91 9773778669 Irfan.Raeen@linkintime.co.in