Sanathan Textiles Limited has informed the Exchange about Investor Presentation
Date: March 18, 2025
To, National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai-400051.
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001
Scrip Code: 544314
Trading Symbol: SANATHAN
Ref. No: - 2024-2025/Feb25/027
Dear Sirs/Madam,
Sub: Investor Presentation
We hereby enclosed, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Investor Presentation that will be discussed during the meet.
During the meet, no Unpublished Price Sensitive Information (UPSI) in intended to be discussed.
The Investor Presentation has also been hosted on the website of the Company viz. www.sanathan.com
We request you to take the same on your record.
Thanking You,
Yours faithfully, For Sanathan Textiles Limited
Jude Patrick Dsouza Company Secretary and Compliance Officer
Investor Presentation
Disclaimer
This presentation has been prepared by Sanathan Textiles Limited, solely to provide information about the Company to its stakeholders. 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.
T Management N Comment E M E G A N A M
T N E M M O C
December 2024 marks a significant milestone for Sanathan Textiles with the successful completion of our IPO. I extend my heartfelt gratitude to all stakeholders, including our new shareholders, whose trust empowers us to set and achieve new benchmarks.
On the business front, industry consumption patterns are normalizing, supported by strong demand drivers and favorable government policies. We anticipate sustained growth in the near future, backed by these positive tailwinds.
Aligned with our expectations, all three yarn segments have delivered improved performance over the previous financial year. EBITDA has grown year-over-year by approximately 30% (9MFY24: ₹147 Cr; 9MFY25: ₹195 Cr), driven by stabilized pricing, enhanced margins, and improved operational efficiencies.
Looking ahead, our expansion plans focus on strategically increasing capacities across all three yarn segments. Our upcoming Punjab plant, expected to commence operations in Q1FY26, will scale our polyester filament capacity from 550 tonnes per day to 1,500 tonnes per day, bringing our total installed capacity to 5.50 lakh MTPA by FY28 in a phased manner. Additionally, we plan to enhance our cotton yarn production by 11,490 MTPA and expand our technical textiles yarn capacity by 9,000 MTPA.
“
Paresh Vrajlal Dattani Chairman & Managing Director
BUSINESS
Overview
Key Milestones
Sanathan Textiles was incorporated
Commenced cotton yarn manufacturing with capacity of 1,500 MTPA
Setup a fully integrated plant & tripled capacity of polyester yarn from the year 2008 to 46,500 MTPA
Expansion of value- added product basket and installation of upgraded machinery
Polyester yarn capacity expanded to 200,750 MTPA and cotton yarn manufacturing capacity doubled to 14,000 MTPA
Production commencement of Double Twisted Cotton Yarn with production capacity of 540 MTPA
2005
2006
2007
2011
2013
2014-15
2017
2018
2019-20
2021
2024
Took over the business of manufacturing polyester yarn from Sanathan Texturisers with capacity of 4,500 MTPA
Undertook doubling of manufacturing capacities of cotton yarn to 3,500 MTPA
Expansion of capacity of polyester yarn and cotton yarn to 92,950 MTPA and 6,200 MTPA respectively
Setup manufacturing of yarns for industrial and technical textile with capacity of 5,475 MTPA
Granted authorization to use the STANDARD 100 by OEKO – TEX® mark
4,500 MTPA
2006
2,23,750 MTPA
2024
Among India’s Leading Yarn Manufacturers – catering to a wide spectrum of applications
Among few India yarn manufacturers specializing in three yarn verticals
Polyester Filament Yarns Cotton Yarns Yarns for Technical Textiles
Promoters have 48+ Years experience in Yarn industry
In-house Product Innovation and development team providing reliable yarn solutions, offering diverse & Value - Added Products catering to wide array of industries
223,750 MTPA Installed Capacity: (Silvassa)
Strong customer relationships with 7,000 customers pan India & across 27 international locations with a Geographical Mix: Domestic 95% Exports 5%
50,000 SKU’s. 3,200 Yarn products
Human Capital: Offering employment to 4,400+
ESG: Installed Solar Power and ensuring Zero Liquid Discharge
92% Customer Retention Rate
Professional Management Team
Paresh Vrajlal Dattani
Ajay Vallabhdas Dattani
Chairman & Managing Director
Joint Managing Director
Anilkumar Vrajdas Dattani
Executive Director
Dinesh Vrajdas Dattani Executive Director
Sammir Dattani
Director – Raw Material & Fully Drawn Yarns
Mikesh Dattani
Director – Production Planning
Varun Dattani
Director – Export & Yarns for Technical Textiles
Sanjay Shah
Chief Financial Officer
Raj Kapadia
President – Domestic Sales
Jude Patrick Dsouza
Company Secretary and Compliance Officer
Nachimuthu Senthilvel
Chief Operating Officer
Beena Dattani
Director – Social Welfare
Business Verticals
Polyester yarn
Cotton yarn
Fully Integrated manufacturing setup with forward and backward process integration & wide variety of products including
State of the art – Silvassa facility with 1.32 Lakh spindles. Focused Product offering of Fine Count Combed Compact yarns:
Overview
• Partially oriented yarn • Draw textured yarn • Air-textured yarn • Fully drawn yarn
• Twisted yarn • Recycled yarn • Blended yarn
• Cotton carded yarn • Cotton combed compact yarn • Others
Yarns for technical textiles
Yarns for Technical Textiles
Low Shrinkage Yarns (HTLS)
• • High Tenacity Yarns (GHT) • •
Super Low Shrinkage (HTSLS) Low Elongation (HTLE)
Very durable, offer dimensional stability, and have high tenacity
Primary Raw Material
• PTA (Purified Terephthalic Acid) • MEG (Mono Ethylene Glycol)
• Raw cotton
•
IDY chips
Capacity & Revenue
End Use
• 200,750 MTPA capacity • Greenfield facility to increase yarn capacity by 255,500 MTPA by FY 26
• Revenue Contribution: 77%
• 14,000 MTPA capacity • Capacity expansion by 11,490 MTPA (expected commissioning by FY 26)
• Revenue Contribution: 18%
• 9,000 MTPA capacity • Add facility to make specialized high intrinsic
viscosity raw material • Revenue Contribution: 5%
• Apparel •
Sports and athleisure
•
Travel & Leisure
Logistics & mobility
• • Medical purposes • Home Textiles • Automobile
• Denim • Weaving • Knitting • Flat knits
• Bullet proof jackets • Fire proof jackets • High altitude combat gear • Applications across – agriculture, roads, railway tracks, sportswear and health
Diversified product portfolio enables to scale new markets and offer more to current customers
One Yarn Many Things
Applications Across Sectors
Travel & Leisure
Active & Inner Wear
Apparel
Logistics & Mobility
Sports & Athleisure
Home Textiles
Technical Textiles
Our Value Added Yarn Offerings
Cationic Dyeable
Born Dyed
Stretch
Specialty Yarn
Cotton Yarn
Recycled Yarn
Cationic Dyeable Polyester (CDP) specialized a polyester yarn that can be colored with cationic dyes
is
Born Yarns Dyed significantly reduce water pollution. Eliminates the conventional process of dying. It can directly go for knitting & weaving of fabrics.
is groundbreaking S-flex self-stretch polyester filament yarn offering four- capabilities way without spandex.
stretch
dyed
The products under this category are made by using dope technology. Utilized in the making of outer-wear, shirts, suiting, rainwear, belts, bags, etc.
school
Puro Cotton Yarns range is used for apparel, suiting, shirting, bedsheets, home textiles, and more
Manufacture products from recycled materials
Strong Marquee Relationships
Low Customer Concentration
Geographical Mix
% of Fiscal 2024 revenue from operations
23.20%
14.20%
Top 5 customers
Top 10 customers
Argentina
Japan
Morocco
South Korea
US
Others
0.24%
1.03%
0.68%
0.23%
0.74%
0.51%
Over 10 years of association with our top 10 customers
14,000 Customers
2,292 New Customers
Our Manufacturing Facilities - Silvassa
50 Acres of free hold land. Fully integrated yarn manufacturing set up at the strategic location of Silvassa, with all three segments at one location
Technologically advanced process configurations.
Automation in doffing, transport, packaging, and warehouse management reduces labor dependency, boosting efficiency and profitability. Data-driven decisions ensure timely production management for higher gains
Designed to handle 50,000 SKU’s. 3,200 Yarn products.
Facility is ISO 9001:2015, ISO 14001 and ISO 45001 certified and is also Standard 100 certified by OEKO-TEX
Production Efficiency at 96%
Human Capital: Offering employment to 4,400 people
ESG: Installed Solar Power and ensuring Zero Liquid Discharge
Our Manufacturing Facilities - Punjab
• 80 acres of land in Wazirabad, Punjab
• Fully integrated polyester filament yarn facility • Located close to key domestic markets in North
India
• 1 Mn MTPA pre-existing polyester yarn
market
• Decade long relationships with customers in Northern market
•
Increase manufacturing capacity from 550 TPD to 1,500 TPD
• Reduction in transportation and allied costs
• Low Power Cost / Unit.
•
Increased speed of delivery
• Positive impact on customer satisfaction
• Automated / Higher efficiency – lower cost
• Generate more employment – 2500+
• Usage of Rice Husk – for Heating
More than doubling Polyester capacity
Enhance value addition in existing products and development of new products
1st of its kind fully continuous integrated polyester filament yarn facility in northern India
Key Markets
Manufacturing Facilities
Details of Punjab Manufacturing facility
Expected Commissioning
Fiscal 2026
Fiscal 2027
Total
Phase
Phase 1
Phase 2
Product
Polyester Yarn
Polyester Yarn
Capacity per day (in tonnes)
Capacity per annum (MTPA)
700.00
250.00
950.00
255,500
91,250
346,750
FINANCIAL
Highlights
Historical Performance
Average Revenue (INR Cr)
3,157
2,529
2,701
7 Years
5 Years
3 Years
EBITDA (INR Cr)
287
313
341
11.5%
11.9%
10.8%
390
340
290
240
190
140
90
40
-10
7 Years
5 Years
3 Years
EBITDA
EBITDA margin
Consolidated Numbers
PAT (INR Cr)
175
6.4%
141
5.4%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
250
200
150
100
50
0
214
6.8%
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
7 Years
5 Years
3 Years
PAT
PAT margin
Annual Financial Performance (1/2)
Production & Sales (MTPA)
2,33,436
2,32,825
2,28,471
2,24,636
Revenue (INR Cr)
3,329
2,958
1,72,111
1,71,803
2,266
FY23
FY24
9M FY25
FY23
FY24
9M FY25
Production
Sales
EBITDA (INR Cr)
260
227
7.8%
7.7%
195
8.6%
FY23
FY24
9M FY25
EBITDA
EBITDA margin
290
240
190
140
90
40
-10
Consolidated Numbers
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
190
170
150
130
110
90
70
50
30
10
-10
PAT (INR Cr)
153
4.6%
FY23
134
4.5%
FY24
PAT
PAT margin
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
117
5.2%
9M FY25
from Operations Revenue stood at INR 2,266 crore in 9M FY25 as against INR 2,201 in 9M FY24, led by higher sales volume
EBITDA for the 9M FY25 stood at INR 195 crore as against INR 147 crores in 9M FY24, on account of higher volumes and better margins
9M FY25 PAT stood at INR 117 crores against PAT of INR 82 crores in 9M FY24.
Annual Financial Performance (2/2)
Net debt (INR Cr)
Net debt / EBITDA (x)
863
3.2x
175
278
1.2x
0.7x
FY23
FY24
H1 FY25
FY23
FY24
H1 FY25
Return On Equity (%)
Return On Capital Employed (%)
13.4%
10.5%
12.2%
12.5%
10.7%
16.4%
FY23
FY24
H1 FY25
FY23
FY24
H1 FY25
The increase in debt is primarily attributable to the funds raised for the expansion in Punjab facility.
Key Financial Highlights – 9M FY25
Particulars (INR Cr)
9M FY25
9M FY24
Revenue ₹ 2,266.43
EBITDA ₹ 195.17
PAT ₹ 116.80
Click Here for Results
All Consolidated Numbers are in ₹ Crores
Revenue from Operations
Total Expense
EBITDA (excluding Other Income)
EBITDA Margins (%)
Other Income
Depreciation
Finance cost
PBT
Tax
PAT
PAT Margins (%)
Basic EPS (INR)
2,266.43
2,071.26
2,201.37
2,053.89
Y-o-Y
2.96%
195.17
147.48
32.34%
8.61%
13.76
34.30
15.49
159.14
42.34
116.80
5.15%
16.15
6.70%
191 bps
12.80
33.35
17.87
109.06
45.92%
27.47
81.59
3.71%
11.34
43.15%
144 bps
Balance Sheet
Equity & Liabilities (INR Cr)
30.09.2024
31.03.2024
Assets (INR Cr)
30.09.2024
31.03.2024
Share Capital
Other Equity
Shareholders Funds
Long Term Borrowings
Deferred Tax Liability
Non Current Liabilities
Short term Borrowings
Trade Payable
Other Financial Liabilities
Other Current Liabilities
Current Liabilities
71.94
71.94
Property, plant & Equipment
1,285.52
1,203.03
Capital WIP
1,357.46
1,274.97
Other financial Assets
909.39
337.20
Other non-current Assets
917.25
772.11
15.58
276.37
926.47
140.51
15.53
207.46
79.30
77.53
Non Current Assets
1,985.20
1,294.35
1,001.32
423.36
Inventories
43.41
42.68
FA - Trade Receivables
411.58
436.94
FA - Cash & cash equivalents
11.34
18.45
7.34
14.98
FA - Bank balances
Other Current Assets
493.54
505.35
Current Assets
391.73
153.52
32.52
57.20
164.53
867.12
405.49
125.68
29.93
71.47
168.20
909.33
Total Equity & Liabilities
2,852.32
2,203.68
Total Assets
2,852.32
2,203.68
Click Here for Results
Way
Ahead
Industry Overview
Global Textile Industry to grow at 2.5%–3.5% by CY27
Fibre-wise segmentation of global textiles
1,486
1,600
1,780-1,830
1,430 5% 7% 13%
36%
39%
CY 18
1,600 6% 7% 13%
35%
39%
CY 23 E
1,780 -1,830 4-6% 6-8%
12-14%
34-36%
38-40%
CY 27 P
CY 2019
CY 2023E
CY 2027P
Cotton
Man-made
Wool
Silk
Others
Global Trend in textile Industry
Key Government Initiatives – Would Further Provide Impetus to Growth
Global Growth
FDI & National Technical Textiles Mission
Budget 2025
• Global Textile industry is expected to grow at a CAGR of 2.5 - 3.5% between CY2023 to CY2027
to reach ~USD 1,780-1,830 billion in CY2027
• Volume wise, the industry is expected to grow from 193 billion tons in CY2023 to 210-220 billion
tons in CY2027, registering a CAGR of 2.0 - 3.0%.
•
Cotton and Man-Made textiles are expected to increase by a CAGR of 2.7-3.2% between CY2023- CY2027P, led by growing population and increasing demand of apparels in various textures and designs; supported by exceptional qualities like strength, absorbency, and colour retention
•
100% FDI allowed in textile sector under the automatic route
• Attracted FDI of INR ~272 bn in between April 2000 and September 2023 (~ 1.7% of overall FDI inflow in the country)
•
Creation of the National Technical Textiles Mission (NTTM) in FY21-24 with an outlay of ~INR 15bn
• Allocation for textiles increased by 57.7%
•
•
•
Finance Minister boost domestic technical textiles in Budget 2025-26. Revision of basic custom duty rate on Knitted fabrics.
Proposed the inclusion of two additional types of shuttle-less looms in the list of fully exempted textile machinery.
Focused on improving export competitiveness in MMF & technical textile segments
Thank you
For further information, please contact
Sanathan Textiles Ltd. Mr. Jude D’souza
Investor@sanathan.com
www.sanathan.com
Adfactorspr Pvt. Ltd. Mr. Chaitya Doshi chaitya.doshi@adfactorspr.com
Mr. Bhavya Aggarwal bhavya.aggarwal@adfactorspr.com