SFLNSE3 August 2023

Sheela Foam Limited has informed the Exchange about Investor Presentation

Sheela Foam Limited

03rd August, 2023

The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra(E), Mumbai-400051 Scrip Code: 540203 NSE Symbol: SFL

Subject: Investor Presentation

Dear Sir/Madam,

Furtherance to our intimation for investor call dated 27th July, 2023. Please find attached Earning Presentation.

Thanking you,

Yours truly, For Sheela Foam Limited

Md. Iquebal Ahmad Company Secretary & 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.

Earnings Presentation Q1-FY24

•

35,000

30,000

25,000

20,000

15,000

10,000

5,000

Company Overview

Incorporated in 1971, Sheela Foam is one of 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+.

India Operations

11 Manufacturing Plants

123,000+ MTPA of Total Capacity

Revenue, EBITDA (INR Mn) and EBITDA Margins (%)

28,656

28,733

Q1-FY24 Revenue Breakup Geographical Distribution

23,550

15.46%

20,532

14.63%

10.99%

10.35%

3,004

3,642

3,149

2,973

FY20

FY21

FY22

FY23

Revenues

EBITDA

EBITDA Margins

14%

16%

70%

India Europe

Australia

Global Operations

5 Manufacturing plants in Australia

Manufacturing plant in Spain to cater to European and US markets

Earnings Presentation Q1-FY24

Q1-FY24 Performance Highlights

Earnings Presentation Q1-FY24

Q1-FY24 Financial Highlights

INR 777 Mn

EBITDA

INR 433 Mn

Net Profit

INR 6,451 Mn

Revenue from Operations

12.04%

EBITDA Margin

6.71%

PAT Margin

EBITDA

INR 2,973 Mn

Net Profit

INR 2,031 Mn

INR 4.41

Basic/ Diluted EPS

INR 44.83

Basic/ Diluted EPS INR 20.81

Basic/ Diluted EPS

Earnings Presentation Q1-FY24

Quarterly Geographical Revenues

SFL India (INR Mn)

Australia - Joyce (INR Mn)

Spain - Interplasp (INR Mn)

Consolidated (INR Mn)

7,000

6,000

5,000

4,000

3,000

2,000

1,000

4,878

4,478

9.20%

383

13.82%

464

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

1,370

1,170

970

770

570

370

170

-30

1,084

1,002

Q1-FY23

Q1-FY24

Q1-FY23

8.77%

6.00%

Q1-FY24

-24

0.00%

-5

9,000

8,000

7,000

25.00%

6,000

20.00%

5,000

15.00%

10.00%

5.00%

4,000

3,000

2,000

1,000

0.00%

7,007

6,451

9.39%

12.04%

425

433

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

1,046

8.88%

877

9.81%

Q1-FY23

Q1-FY24

Q1-FY23

Q1-FY24

1,995

40.00%

35.00%

1,495

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

995

495

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Earnings Presentation Q1-FY24

Quarterly Business Segment Revenues

Mattresses (INR Mn)

Furniture Foam (INR Mn)

Technical Foam (INR Mn) Technical Foam

Comfort Foam and HC Line (INR Mn)

2,088

1,759

596

576

1,176

1,180

1,007

946

Q1-FY23

Q1-FY24

Q1-FY23

Q1-FY24

Q1-FY23

Q1-FY24

Q1-FY23

Q1-FY24

Earnings Presentation Q1-FY24

Gross Margins (%)

SFL India

39.1%

39.5%

38.6%

33.9%

35.4%

Gross Margins (%)

Australia - Joyce

Spain - Interplasp

51.3%

49.8%

49.1%

48.1%

46.8%

31.0%

28.8%

25.7%

27.2%

22.7%

Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 Q1-FY24

Earnings Presentation Q1-FY24

Particulars (INR Mn)

Revenue from Operations

Operating Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Exceptional Item

Tax

PAT

Quarterly Standalone Financial Performance

Q1-FY24

Q1-FY23

4,478

3,859

619

13.82%

234

742

110

168

464

4,878

4,429

449

9.20%

158

516

133

383

Y-O-Y

(8.2)%

(12.9)%

37.9%

462 bps

48.1%

24.7%

11.1%

43.80%

26.3%

21.1%

Q4-FY23

5,209

4,588

621

11.92%

195

102

696

177

519

PAT Margin (%)

10.36%

7.85%

251 bps

9.96%

Other Comprehensive Income

Total Comprehensive Income

Basic/Diluted EPS (INR)

Earnings Presentation Q1-FY24

467

4.75

(35)

348

3.93

34.2%

20.9%

552

5.32

Q-O-Q

(14.0)%

(15.9)%

(0.3%)

190 bps

20.0%

(10.8)%

11.1%

6.61%

(5.1)%

(10.6)%

40 bps

(90.9)%

(15.4)%

(10.7)%

Quarterly Consolidated Financial Performance

Particulars (INR Mn)

Revenue from Operations

Operating Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Exceptional Item

Tax

PAT

Q1-FY24

Q1-FY23

6,451

5,674

777

12.04%

242

227

713

110

170

433

7,007

6,349

658

9.39%

180

206

584

159

425

PAT Margin (%)

6.71%

6.07%

Other Comprehensive Income

Total Comprehensive Income

Basic/Diluted EPS (INR)

Earnings Presentation Q1-FY24

(29)

404

4.41

(66)

359

4.36

Y-O-Y

(7.9)%

(10.6)%

18.1%

265 bps

34.4%

10.2%

64.6%

22.09%

6.9%

1.9%

64 bps

(56.1)%

12.5%

1.1%

Q4-FY23

7,290

6,516

774

10.62%

185

261

628

170

458

6.28%

154

612

4.69

Q-O-Q

(11.5)%

(12.9)%

0.4%

142 bps

30.8%

(13.0)%

12.9%

13.54%

0.0%

(5.5)%

43 bps

(118.8)%

(34.0)%

(6.0)%

Historical Financial Overview

Earnings Presentation Q1-FY24

Historical Standalone Income Statement

FY20

16,344

14,074

2,270

13.89%

413

331

2,271

120

496

1,655

10.13%

(43)

1,612

16.97

FY21

16,117

13,744

2,373

14.72%

474

325

2,435

623

1,812

11.24%

1,833

18.57

FY22

20,082

17,744

2,338

11.64%

702

324

2,645

672

1,973

9.82%

(12)

1,961

20.22

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)

Earnings Presentation Q1-FY24

FY23

20,198

17,975

2,223

11.01%

786

338

2,607

658

1,949

9.65%

(39)

1,910

19.97

Historical Standalone Balance Sheet

PARTICULARS (INR Mn)

FY21

FY22

FY23

ASSETS

Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Investment In Subsidiaries Financial Assets (a) Other Investments (b) Loans (c) Other Financial Assets (d) Investment in Preference Shares Non-current Tax 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 27 5,713 2,283

1,060 1,630 350 5 56 87 242 14,210

11,171 2,350 6 184 36 1,967

5,288 778 191 299 46 26 4,911 2,035

840 1,360 143 3 56 282 192 16,082

6,909 2,371 19 163 34 1,967

564 1,223 170 299 67 32 11,142 1,889

7,065 1,640 104 3 6 64 371 18,051

PARTICULARS (INR Mn)

EQUITY & LIABILITIES

Equity (a) Share Capital

(b) Other Equity

Non-current Liabilities

Financial Liabilities

(a) Borrowings

(b) Lease Liabilities

Provisions

Deferred Tax Liabilities (Net)

Other Non Current Liabilities Current Liabilities

Financial Liabilities

(a) Borrowings

(b) Lease Liabilities

(d) Other Current Fin Liabilities

Provisions

Current Tax Liabilities (net)

Other Current Liabilities

FY21

FY22

FY23

10,134 244

9,890

653

12,095 244

11,851

796

13,958 488

13,470

515

502

3 3,423

2,333

381

664

183

503

149

255

2 3,191

2 3,578

1,941

1,827

413

105

721

863

109

754

GRAND TOTAL - EQUITY & LIABILITES

14,210

16,082

18,051

Earnings Presentation Q1-FY24

Historical Consolidated Income Statement

FY20

20,532

17,528

3,004

14.63%

400

590

130

2,684

120

621

1,943

9.46%

(31)

1,912

19.92

FY21

23,550

19,908

3,642

15.46%

502

729

177

3,238

836

2,402

10.20%

188

2,590

24.62

FY22

28,656

25,507

3,149

10.99%

792

808

169

2,964

777

2,187

7.63%

(18)

2,169

22.42

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)

Earnings Presentation Q1-FY24

FY23

28,733

25,760

2,973

10.35%

865

896

211

2,731

700

2,031

7.07%

125

2,156

20.81

Historical Consolidated Balance Sheet

PARTICULARS (INR Mn)

FY21

FY22

FY23

ASSETS

Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Intangible Assets Financial Assets (a) Other Investments (b) Loans (c) Other Non Current Fin Assets Deferred Tax Assets Non-current Assets (Net) Other Non Current Tax 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

15,767 4,355 1,199 1,394 562 2,520

5,288 1 45 78 69 256 7,865 3,145

894 2,694 408 3 56 263 402 23,632

12,775 4,290 2,875 1,086 534 2,740

564 19 52 137 124 354 14,333 3,313

7,120 2,820 423 3 6 10 638 27,108

PARTICULARS (INR Mn)

EQUITY & LIABILITIES

Equity

(a) Share Capital

(b) Other Equity Non Controlling Interest Non-current Liabilities

Financial Liabilities

(a) Borrowings

(b) Lease Liabilities

Provisions

Other Non current Liabilities

Deferred Tax Liabilities (Net)

Current Liabilities

Financial Liabilities

(a) Borrowings

(b) Lease Liabilities

(d) Other Current Fin Liabilities

Provisions

Current Tax Liabilities (Net)

Other Current Liabilities GRAND TOTAL - EQUITY & LIABILITES

FY21

FY22

FY23

11,932

14,002

16,087

244

11,599 89 3,068

1,326

1,086

502

244

13,682 76 4,134

2,282

1,057

503

193

488

15,516 83 4,187

2,838

875

259

130

5,694

5,496

6,834

730

201

3,301

531

147

739 20,694

1,096

230

2,854

440

106

770 23,632

1,838

160

2,594

917

205

1,108 27,108

Earnings Presentation Q1-FY24

Consolidated Financial Performance

Revenues (INR Mn)

EBITDA (INR Mn) and EBITDA Margins (%)

PAT (INR Mn) and PAT Margins (%)

28,656

28,733

23,550

20,532

3,642

3,004

3,149

2,973

14.63%

15.46%

10.99%

10.35%

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

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

1,943

2,187

2,031

9.46%

10.20%

7.63%

7.07%

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Net Debt to Equity Ratio (x)

Networth (INR Mn)

0.26

0.21

16,087

14,002

11,932

0.16

0.12

9,264

Earnings Presentation Q1-FY24

Note : Net D/E = (Total Debt – Cash & Bank) / Net worth

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

Capital Market Data 1 year stock performance (As on 30th June, 2023)

40%

30%

20%

10%

-10%

-20%

-30%

-40%

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Sheela

Sensex

Midcap

Shareholding Pattern as on 30th June, 2023

Price Data (As on 30th June, 2023)

Face Value

CMP

52 Week H/L

Market Cap (INR Mn)

No. of Share outstanding (Mn)

1 Year Avg. Trading Volume (000)

INR

5.0

1,206.3

1,710.0 / 905.5

1,17,693.4

97.6

34.8

Promoters 72.95%

Mutual Funds 21.90%

Public 1.89%

Foreign Portfolio Investors 3.21%

AIF 0.05%

Earnings Presentation Q1-FY24

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.

The information set out herein is provided only as at the date of this Presentation (unless stated otherwise), its accuracy is not guaranteed, and it may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially. This Presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. This presentation does not comply with the disclosure requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges. It should be understood that subsequent developments may affect the information contained in this Presentation, which neither the Company nor its advisors or representatives are under an obligation to update, revise or affirm. This document is a summary only and it is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading position or prospects of the Company. This Presentation has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any stock exchange in India or any other jurisdiction. You should conduct such independent investigations and analysis of the Company as you deem necessary or appropriate in order to make an independent determination of the suitability, merits and consequences of investments in the Company.

The information contained in this Presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any forward-looking statements, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. You will be solely responsible for your own assessment of the market and the market position of the Company and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. It should be understood that subsequent developments may affect information contained in this Presentation, which neither the Company, nor its affiliates, advisors or representatives are under an obligation to confirm.

Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

This Presentation is based on information regarding the Company and the economic, regulatory, market and other conditions as in effect on the date hereof. Subsequent developments may affect the information contained in this Presentation, which neither the Company nor any of their Representatives are under an obligation to update, revise or affirm. This Presentation and its contents are confidential and may not be taken away, copied, published, disseminated, or reproduced or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. This document is a Presentation and is not and should not be construed as an offer letter, offering circular, offering document, draft red herring prospectus, red herring prospectus, invitation, advertisement or prospectus as defined under the Indian Companies Act, 2013 as amended and the SEBI ICDR Regulations, as amended or any other applicable law in India.

This Presentation includes certain external industry data and projections that have been obtained from industry publications, surveys and forecasts. Accordingly, the Company and its respective affiliates, advisers and representatives make no representation as to the accuracy or completeness of that data, and none of them shall have any liability (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. This data involves risks and uncertainties and is subject to change based on various factors. No representation or claim is made that the results contained in this Presentation will actually be achieved. All industry data contained in this Presentation is based on data obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct.

Earnings Presentation Q1-FY24

Disclaimer

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

Earnings Presentation Q1-FY24

THANK YOU

Earnings Presentation Q1-FY24

← All Transcripts SFL Stock Page →

Sheela Foam Limited has informed the Exchange about Investor Presentation

Market Movers