SUTLEJTEXNSE10 May 2019

Sutlej Textiles and Industries Limited has submitted to the Exchange a copy of revised presentation for Q4 & FY 2019 Financial results.

Sutlej Textiles and Industries Limited

sum

textiles and industries limited

09'h May, 2019

SUTLEJ TEXTILES AND INDUSTRIES LIMITED Lotus Corporate Park, 'E' Wing, 5th/6th Floor, 185/A, Graham Firth Compound, Near Jay Coach, Goregaon (East), Mumbai - 400 063, INDIA. Phone : (022) 4219 8800/6122 8989 Fax : (022) 4219 8830 E-mail : info@sutlejtextiles.com Website : www.sutlejtextiles.com CIN No. : L17124RJ2005PLCO20927

BSE Limited Phiroze Jeejeebhoy Towers, Dalai Street, Fort, Mumbai 400 001. Scrip Code: 532782

National Stock Exchange of India Limited Exchange Plaza, 591 Floor, Plot No. C/1, G-Block, Bandra - Kurla Complex, Bandra (E), Mumbai 400 051. Scrip Code : SUTLEJTEX

Re:- Q4 and FY 2019 Results Presentation

Dear Sirs,

Please find enclosed herewith a copy of the presentation with respect to the audited results

of the Company for Q4 and FY 2019.

Thanking you

Yours faithfully For Sutlej Textiles and Industries Limited

Manoj Contractor Company Secretary and Compliance Officer

Encl: a/a

Regd. Office : Pachpahar Road, Bhawanimandi - 326 502 (Rajasthan)• Mills : Bhawanimandi (Raj.), Kathua (J&K), Baddi (H.P.), Bhilad (Guj.)

(Govt. Recognised Three Star Export House)

Sutlej Textiles and Industries Ltd. Sutlej Textiles and Industries Ltd. Sutlej Textiles and Industries Ltd. Sutlej Textiles and Industries Ltd.

Charged to Grow Higher

Q4 & FY19 Investor Presentation | May 2019 Q4 & FY19 Investor Presentation | May 2019 Q4 & FY19 Investor Presentation | May 2019 Q4 & FY19 Investor Presentation | May 2019

Harbor Safe Harbor Safe Harbor Harbor Safe Safe

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sutlej Textiles and Industries Limited (the “Company”), 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. Unless otherwise stated in this document, the information contained herein is based on management

information and estimates. The information contained is subject to change without notice and past performance is not indicative of future results 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 worldwide, 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 cash flows, the

Company’s market preferences and its exposure to market risks, as well as other risks. You acknowledge that you will be solely responsible for your own assessment of the

market and the market position of the Company and that you will conduct your own analysis and be solely and completely responsible for forming your own view of the

potential future growth and performance of the Company. The Company will not be in any way responsible for any action taken based on such statements and undertakes

no obligation to publicly update, amend, modify or revise these forward looking statements to reflect subsequent events or developments. 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 statement/s and projection/s made by third parties included in this

Presentation are not adopted by the Company and the Company is not responsible for such third party statement/s and projection/s. The contents of this presentation have

not been reviewed by any regulatory authority in any jurisdiction where such presentation has been made or distributed.

Q4 & FY19 Results Highlights Q4 & FY19 Results Highlights Q4 & FY19 Results Highlights Q4 & FY19 Results Highlights Consolidation continues…

Profitability Highlights Profitability Highlights Profitability Highlights Profitability Highlights

Rs. in Cr

Total Income Raw Material Cost Employee Cost Other Expenses EBITDA

EBITDA Margin (%) Depreciation Finance Cost Profit Before Tax Exceptional Items Tax Net Profit After Tax

Net Profit Margin (%) Earning Per Share (Rs.)

Standalone

Consolidated

Q4 FY19 Q4 FY18 YoY % FY19

FY18

YoY % FY19

FY18

YoY %

617 354 78 128 57

9.3% 24 13 20 0 5 15

2.4% 0.9

610 354 73 131 53

1% 2589 2488 1396 1503 0% 299 319 7% 512 521 -2% 281 247 8%

4% 8% 7% 2% -12%

2642 2510 1541 1412 303 330 515 531 281 240

5% 9% 9% 3% -15%

8.6% 70 bps 9.5% 11.3% -180 bps 9.1% 11.2% -210 bps

27 15 10 - 1

101 -9% 57 -14% 100% 90 0 24 66

- 409% 49%

107 59 115 42 44 113

-6% -4% -22% -100% -45% -42%

101 57 83 0 24 58

107 59 115 42 44 113

-6% -4% -28% -100% -45% -48%

1.6% 80bps 2.5% 4.5% -200 bps 2.2% 4.5% -230 bps

0.6

52%

4.0

6.9

-42%

3.6

6.9

-48%

Quarterly performance EBITDA margins witnessed marginal improvement due to efficient use of power units and roof top solar at RTM

Q4 & FY19 Key Performance Highlights –––– Q4 & FY19 Key Performance Highlights Q4 & FY19 Q4 & FY19 Key Performance Highlights Key Performance Highlights

Yarn Sales (in MT) Up by 2% in FY19

Average Yarn Realization (Rs/kg) Up by 2% in FY19

Export Revenue Up by 19% in FY19

1,06,159 1,08,136

26,546 25,498

221

222

217

213

Q4 FY18

Q4 FY19

FY18

FY19

Q4 FY18

Q4 FY19

FY18

FY19

• Yarn continues to contribute over 95% of the revenues • Sales for the year led by exports which grew by 19%. • Exports contributed 36% in FY19 as against 32% in FY18 • FY19 margins impacted due higher raw material prices, sluggish demand and subdued performance of the Home Textiles division

782

930

1695

1684

FY18 FY19

211

203

393

405

Q4 FY18

Q4 FY19

Domestic

Export

Note: Q4 FY18 &Q4FY19 standalone while FY18 and FY19 are consolidated

Balance sheet Balance sheet Balance sheet Balance sheet

Rs. in Cr

FY19

FY18

Rs. in Cr

FY19

FY18

Non-current assets

Fixed assets

Investments

Other Non Current assets

1128

1082

1184

1126

Shareholder’s Fund Share capital

Reserves & Surplus

Non-current liabilities Long term borrowings Deferred tax liabilities

Current assets

Inventories

Trade receivables

Cash and bank balances

Other current assets

1005

Other non-current liabilities

565

305

124

514

335

141

Current liabilities

Short term borrowings

Trade Payables

Other current liabilities

942 16

925

496 437 29

695

381

121

194

907 16

891

555 509 22

727

438

101

187

Total Assets

2133

2188

Total Liabilities

2133

2188

Executive Chairman’s comments Executive Chairman’s comments Executive Chairman’s comments Executive Chairman’s comments

Commenting on the results, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Limited said:

“The challenging business environment for the Textile Industry continued during the year due to subdued demand. The situation was further aggravated by unprecedented fluctuations in raw material prices and exchange rates that created even more uncertainty and further dampened market sentiments. This resulted in intense competition, subdued product prices and lower margins. We could counter these challenges to a large extent because of our varied product mix and value added yarns. Sutlej will continue to focus on consolidating its operations and improving efficiencies all around during this phase of a prolonged recession.”

Executive Chairman - Mr. C. S. Nopany

Sutlej Sutlej Sutlej Sutlej

Creation of a Strong Foundation over the years

Overview Sutlej Textiles ---- Overview Sutlej Textiles Overview Overview Sutlej Textiles Sutlej Textiles

Largest

India’s largest spun dyed Yarn Manufacturer

One of the leading manufacturer of Melange Yarn

Niche Presence

Patronage of Renowned K.K.Birla group

Part of a reputed group with excellent corporate governance

High value added dyed yarn and presence across all types of

Exports to + 65 countries

spun yarn

Exports across Europe, North America, South-East Asia, USA, etc

Presence in niche curtains and upholstery in Home Textile segment

Substantial Capacities

4,20,840 spindles capacity of Yarn

9.6 Million Meters Per Annum capacity of Home Textiles

Reputed Cliental

Marquee Clients like Page Industries, Siyaram’s, Donear, Arrow, etc

Key Milestones Key Milestones Key Milestones Key Milestones

Commenced commercial production of 31,104 Spindles at Chenab Textile Mills, J&K to manufacture Cotton Mélange and Cotton Blended Dyed Yarn

Installed 12 MW Thermal Power Plant at Bhanwanimandi unit

Entered into Home Textiles

Bhawanimandi Expansion

Expansion of Kathua and Bhawanimandi units by 35,400 spindles and 2,112 spindles to manufacture PV Dyed Yarn completed

Completed Expansion of 7,488 spindles for PV Dyed Yarn

12,672 Spindles added for manufacturing Cotton Yarn

2009-10

2006-07

2008-09

31,104 spindles added at Chenab Textile Mills - J&K for value added cotton mélange and cotton blended dyed yarn

2014

Acquisition of Birla Textile Mills

35,280 spindles – commenced commercial production for Cotton blended dyed and Mélange Yarn at Rajasthan

9.6 MMPA - commenced production of Home Textile facilities at Gujarat

Acquired Design, Sales, and Distribution (DS&D) business along with brand of American Silk Mills LLC (ASM)

Invested USD 4.5 Million Owned Wholly in Subsidiary in USA

Backward into green fibre yarn

integration

2015-17

2017-19

Business Verticals Business Verticals Business Verticals Business Verticals

Value Added Yarns

Dyed Yarns

Melange Yarns

Curtains

Home Textiles

Upholstery

Made Ups

Charged to grow higher Sutlej –––– Charged to grow higher Sutlej Charged to grow higher Charged to grow higher Sutlej Sutlej

Focussed on Value Added Dyed yarns

Leading spun dyed & Melange

Yarn Manufacturer in India

Niche Home Textile

Curtains, Upholstery and Made ups

Improving Operating Efficiencies

One of the best Capacity Utilization in Industry

Better RM & Power through Green Fibre and Solar Energy

Growth Drivers

Home Textile

New Adjacent Segments

Inorganic Growth

Experienced Team Experienced Team Experienced Team Experienced Team

Board of Directors

Mr. C.S. Nopany

Mr. U.K. Khaitan

Mr. Amit Dalal

Mr. Rajan Dalal

Ms. Sonu Bhasin

Executive Chairman

Independent

Non Exec Director

Mr. Rajiv K. Podar

Independent

Non Exec Director

Mr. Rohit Dhoot

Independent

Non Exec Director

Mr. Ashok Mittal

Independent

Non Exec Director

Key Executives

Mr. S.K. Khandelia

Mr. Updeep Singh

Mr. Bipeen Valame

Mr. Manoj Contractor

President & CEO

Deputy CEO

WTD and CFO

CS & Compliance Officer

Yarns Specialty Yarns on Value Added Specialty Focused on Value Added Focused Yarns Yarns Specialty Specialty on Value Added on Value Added Focused Focused Always opted for expansion into high value specialty yarns

1414

Yarn Capacities Yarn Capacities Yarn Capacities Yarn Capacities

Bhawanimandi, Rajasthan • 35,280 Spindles (Cotton Mélange ) • 91,584 Spindles (Man –made Fibre) • Roof top solar plant of 2.7 MW

Baddi, Himachal Pradesh (Under Implementation) • Green Fibre Plant • 120 MT per day manufacturing

Raw White & Black Recycle Fibre

• Exp. Commercial production

Q1FY20-21

• Ability to handle variety of RM with

different counts

• Work very closely with customer to

fulfil requirements

• Manufacture to Sale and not to

Stock

Nearly 32% of the spindleage and 67% of the fabric weaving machines commissioned in the last decade, assuring high technological relevance.

Kathua, J&K • 1,09,154 Spindles (Cotton Mélange) • 1,01,446 Spindles (Man-made Fibre)

Baddi, Himachal Pradesh • 83,376 Spindles (Man-made Fibre)

Yarn Business

Acquisition

Captive consumption (Under Implementation)

Backbone of our business Dyed Yarns –––– Backbone of our business Speciality Dyed Yarns Speciality Backbone of our business Backbone of our business Dyed Yarns Dyed Yarns Speciality Speciality

(cid:1) Leading Yarn manufacturer in India

(cid:2) 4,20,840 Dyed Yarn Spindles

(cid:1) ~35% dedicated to Melange Yarn

(cid:1) ~65% dedicated to various blends

(cid:1) Well Diversified Product Portfolio

Continuous Increase in Spindle Capacities

4,20,840

(cid:2) Marquee clients like Page Industries, Siyaram, Raymond, Donear, etc (cid:2) B2B business model with over 60% revenue from organized sector (cid:2) Robust Business Model with low concentration and diversified

geographical spread

(cid:2) Strong Brand Recall in Yarn Segment

2,61,736

1,55,456

(cid:1) Strong Global Footprint

(cid:2) Over 35% Revenue from Export to over 65 countries

(cid:2) Export to all major countries in the world

(cid:2) Star Export House Status holder

FY05

FY14

FY19

Niche Home Textile Presence Niche Home Textile Presence Niche Home Textile Presence Niche Home Textile Presence One of the few listed Curtains & Upholstery players

1717

Emerging Business Home Textile ---- Emerging Business Home Textile Emerging Business Emerging Business Home Textile Home Textile

Focus on Curtains, Upholstery & Made ups

(cid:2) Leading producer & exporter of Home Decor

(cid:2) Acquisition of American Silk Mills (ASM), leading Design & Distribution in USA

Continuous Increase in Spindle Capacities

(cid:1)

Latest Technology in design & manufacturing

(cid:2) State of Art manufacturing facility at Gujarat

(cid:2) Capacity 9.6 Mn. metres/pa

(cid:2) 126 dobby & jacquard looms including 36 looms with double width

(cid:1) Strengthening Product Portfolio

(cid:2) Leveraging ASM design expertise and US presence

(cid:2) Focus on higher end markets in developed counties

(cid:2) Building world class design capabilities

(cid:2) Improving product mix and broadening product portfolio

9.6

5.0

2.0

2.5

FY07

FY14

FY15

FY19

Capacity (MMT)

Strengthening Capabilities in Home Textiles Strengthening Capabilities in Home Textiles Strengthening Capabilities in Home Textiles Strengthening Capabilities in Home Textiles

Enhance Manufacturing Capabilities

Expanding Product Portfolio

Adding wider width printing machines

Digital Printing capabilities

Steaming & Washing

Fancy Yarn

Embroidery

Better Designs

Sheer Material

Made-ups

Establish Geographic Presence

Improving Designing Strength

Establishing office in Dubai to strengthen middle east operations

Hired International Designers

New designs with latest trend

Latest design S/W

Leverage ASM Brand

Branding

Over 100 years of industry experience with rich design

Contemplating to create own brand in home textiles

Sutlej Textiles and Industries Limited has submitted to the Exchange a copy of revised presentation for Q4 & FY 2019 Financial results.

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