SHIVATEXNSE14 August 2019

Shiva Texyarn Limited has informed the Exchange regarding Investor Presentation for the quarter ended 30.06.2019

Shiva Texyarn Limited

SHIVA TEXYARN LIMITED

Regd. Office : 252, Mettupalayam Road, Coimbatore -641 043, Tamilnadu INDIA Telephone : 0422 -2435555 E-mail : shares@shivatex.co.in

Website : www.shivatex.co.in CIN : L65921TZ1980PLC000945 GSTRN : 33AABCA6617MIZO

STYL/SEC/152/2018-19

14.08.2019

Dear Sir,

SUB:-lNVESTOR PRESENTATION -REG.

We are attaching herewith the lnvestors' Presentation to be made to the lnvestors

for the Quarter ended 30.06.2019 as per Regulation 30(6) of SEBl (Listing Obligations

and Disclosure Requirements), Regulation 2015 read with Part A of Schedule 111 of the

Listing Regulations.

Pursuant to Regulation 46(2)(o) of the Listing Regulations, the aforesaid information

is also available on the website of the Company

www.shivatex.in.

Thanking you

Yours faithfully

For Shiva Texyarn Limitec(

M-

R . S R I N I VA S ^ N

L`ompanySec

M.N

Shiva Texyarn Limited Result Update Presentation Q1 FY20

Focus on Technologically Advanced, Innovative & Eco-friendly products

Disclaimer

This presentation has been prepared by Shiva Texyarn Limited (the “Company”) solely for information purposes and does 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 what so ever. 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 cash flows, 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.

Table of Contents

Managing Director’s Message

Financial Highlights

Company Overview

Business Overview

Way Ahead

Managing Director’s Message

“For the quarter ended 30th June 2019, our financial performance in revenue and operating profit remained more or less flat as compared to the corresponding previous period, despite rising cotton prices and a continued slowdown in yarn selling price.

I am happy to share that our contribution from the non spinning business has increased, in line with our conscious & strategic shift from spinning to higher margin technical textile products that are based on unique technology and innovation; and we expect to see the positive effect of this shift for the full year.

We continue to expand our technical textiles product portfolio. ‘Paw Paw’ – our reusable fabric diaper which we launched at the beginning of the year is witnessing good traction in Tamil Nadu and other regions across India. This product is not only environment friendly and sustainable but is also competitively priced, enabling us to reach out across all sections of our society. Our target is to have a pan India presence through a wide network of distributors and retailers, for our key products in the Lamination division. Our non flex banners business in the coating division has been showing good growth in volume and demand, especially on the back of the recent ban on usage of flex banners in political campaigns in certain states of India.

We stand to benefit from strong opportunities in our value added functional products, as we continue to focus on product diversification. Shiva Texyarn aims to strengthen its focus on technology-driven products to support strong, sustainable growth, while offering environment-friendly products.

I would like to thank the entire team of ‘SHIVA’ for their untiring efforts, hard work, sincerity and dedication. Also, I would like to thank our valued Shareholders, whose support and faith in our Company has given us the determination and ambition to set and achieve higher benchmarks.”

Commenting on the results, Mr. S K Sundararaman, Managing Director, Shiva Texyarn Ltd. said :

Financial Highlights

Quarterly Financial Highlights – Q1 FY20 (YoY)

Rs Cr

Q1 FY20

Q1 FY19

Total Income from operations Raw Material Expenses Employee Expenses Other Expenses Total Expenditure EBITDA (excluding other income) EBITDA Margin Other Income Depreciation Interest / Finance Cost Exceptional Item (Gain) / Loss PBT Tax PAT Other Comprehensive Income Net Profit Net Profit Margin Basic EPS in Rs.

84.57 49.54 10.38 15.14 75.06 9.51 11.25% 0.18 3.58 5.51 0.00 0.61 (0.11) 0.72 0.00 0.71 0.84% 0.55

85.93 49.73 10.83 15.51 76.07 9.86 11.48% 0.19 3.41 5.27 0.00 1.37 0.31 1.06 0.04 1.02 1.19% 0.82

Y-o-Y %

(1.58%)

(3.52%) (23 bps)

(30.13%) (35 bps) (32.93%)

Q4 FY19

95.04 61.49 9.55 14.57 85.61 9.43 9.92% 0.49 2.96 5.88 0.00 1.08 (0.24) 1.31 (0.30) 1.01 1.06% 1.01

▪ Marginal dip in revenue – on account of lower contribution from spinning business – a conscious and planned strategic focus on increasing share of value-added

technical textiles textiles (non spinning business)

▪ EBITDA margins at 11.25% - despite headwinds from rising cotton prices and drop in selling price of yarn ▪ Company adopted Ind AS 116 "Leases with the date of initial application being April I, 2019” – in Q1FY20, Company has recognised interest expense on leases

amounting to Rs. 4.63 lakhs and depreciation on right-of-use assets amounting to Rs. 26.78 lakhs

Annual Financial Highlights – FY19 (YoY)

Rs Cr

FY19

353.53 211.69 41.82 58.13 311.64 41.89 11.85% 1.13 13.36 21.65 0.00 8.00 1.30 6.70 (0.31) 6.39 1.81% 5.17

FY18

358.80 208.98 41.20 63.82 314.00 44.80 12.48% 1.21 13.44 19.28 1.36 14.65 3.32 11.32 0.10 11.42 3.18% 8.74

Y-o-Y %

(1.47%)

(6.49%) (63 bps)

(44.03%) (137 bps) (40.85%)

▪ Slight decline in Revenue mainly on account of only one rucksack order from defence vis-à-vis larger order for NBC suits in previous year ▪ Total revenue – 70% from Spinning, 30% from Non-Spinning ▪ QuickDry products, newly launched Paw Paw (reusable fabric diaper) and non-flex banners continue to gain traction ▪ Board Recommends Final Dividend at Rs. 1.10 per Equity Share (face value of Rs. 10), subject to approval of shareholders

31st Mar 19

31st Mar 18

Rs. Cr

31st Mar 19

31st Mar 18

Balance Sheet as on 31st March 2019

Rs. Cr

Equity

Equity Share Capital

Other Equity

Non Current Liabilities

Financial Liabilities

Borrowings

Deferred Tax Liabilities (Net)

Provisions

Current Liabilities

Financial Liabilities

Borrowings

Trade Payables: Total o/s dues of micro & small enterprises Trade Payables: Total o/s dues of creditors other than above Other Financial Liabilities

Other Current Liabilities

Provisions

112.00

12.96

99.03

117.29

77.56

39.13

0.59

154.20

97.46

0.37

28.38

26.18

1.81

0.00

108.10

12.96

95.14

111.77

72.21

39.46

0.09

140.84

81.62

0.0

27.21

29.54

1.80

0.67

Total Equities & Liabilities

383.48

360.72

Non-current Assets

Property, Plant & Equipment Intangible Assets Capital work-in-progress

Intangible asset under development

Investment Property Financial Assets Investments Loans Other Non-Current Assets

Current Assets Inventories Financial Assets

Trade Receivables Cash & Cash Equivalent Loans Other financial assets

Other Current Assets Total Assets

230.29

200.54 0.68 0.00

3.36

0.03

0.66 0.00 25.03

153.19 80.43

49.94 11.78 1.10 1.60 8.35 383.48

235.31

208.67 0.36 0.00

1.27

0.03

0.69 0.00 24.29

125.41 66.75

40.84 8.86 1.02 1.93 6.00 360.72

Company Overview

Among leading multifaceted Textile companies - strong focus on Technical Textiles

▪ First Company to introduce Reactive

Polyurethane lamination technology in India (2005)

▪ Vertically & backward integrated operations ▪ Strong & Dedicated workforce

Diversified Product Portfolio

▪ Segments - Textiles, Quick Dry, Quick Fit, Q- Club, Paw-Paw Diaper, Defence, Tactical gear, Eco-friendly Flex replacement, Art, etc.

Certifications & Awards

▪ Oeko-Tex 100 Certification ▪ Five S(Workspace Management System) ▪ ISO 9001:2008 ▪ WRAP Certification ▪ Affiliation Certifications ▪ GOTS – Global Organic Textile Standards ▪ Gold Award by Quality Circle Forum of

India(QCFI)

Start of Art manufacturing facilities with advanced Technology in Tamil Nadu ▪ Spinning Division – 52,000 Spindles

Spinning Capacity

▪ Lamination Division – 2 lines, 6,00,000

meters per month capacity

▪ Coating Division – 3 coating lines and 1

million meters per month capacity

▪ 58 windmills – 18.15 MW scattered all over

Tamil Nadu

Integrated Business Operations

▪ Spinning Division ▪ Lamination Division ▪ Coating Division ▪ Processing Division – For Speciality Fabrics ▪ Military & tactical Gear ▪ Garment & Home Textile Division ▪ Bags Division – Backpacks & Rucksacks ▪ Windmill based power generation

Focus on Technologically Advanced, Innovative & Eco-friendly products

Journey So Far

1985-1989

2009-2012

2016-2019

1985 - Went Public 1989 – Spinning Mill unit I at Dindigul started

2009 – Knitting, Garment & Spinning mills II division started at Karanampettai 2012 – Started Processing division at Sipcot, Perundurai 2012 – Started Technical Textile division at Ganeshpuram

2017 - Scheme of arrangement (Demerger) between Shiva Texyarn Limited & Shiva Mills Limited (Formerly know as STYL Textile Ventures Limited) 2017 – Started supplying specialized Military products to Indian Defence 2019 - Launched Reusable Fabric Diaper – “Paw Paw” – based on patent pending unique Rapisoak Technology

1994 – Started Windmill division at Munduvelampatti 2002- Finance and Spinning business merged 2006 – Started Lamination division at Karanampettai

2013 – Coating division started at Ganeshpuram 2014 – Started bag division at Karanampettai 2015 – Garment Division II (NBC) & III started at Karanampettai

1994-2006

2013-2015

Strong & Experienced Management Team

Mr. S V Alagappan – Chairman

▪ Law graduate and has rich experience in fields of textiles and automobiles for more than three decades

Mr. Manesh Kumar – Chief Operating Officer

▪ Textile Engineer from PSG Tech Coimbatore and MBA from Anna University, Chennai ▪ Over 12 years of experience in Technical

Textiles

▪ Associated with Company for over 8 years

Mr. S K Sundararaman – Managing Director

▪ MBA from Cambridge Judge Business

School, UK

▪ Chairman of Indian Technical Textiles

Association (ITTA)

▪ Wide experience in field of textile industry

especially technical textiles

Mr. C Krishnakumar– Chief Financial Officer

▪ Master of Commerce Graduate ▪ More than 15 years experience in Accounts, Finance & Taxation

▪ Member of ICAI and ICSI

Brig. Naveen Sodhi – Sr. Vice President

Mr. P. Baskar – Vice President

▪ Science & Economics Graduate ▪ Over 36 years of experience in planning and

directing activities

▪ In-depth knowledge of emerging

technologies and commercial applications ▪ Wide exposure in dealing with government

ministries and officials

▪ Diploma in Technical Textile ▪ Over 25 years experience in field of

Modernized Spinning Mills

▪ Vast experience in Construction of Factories

and building premises

▪ Expertise skill in Administration

Business Overview

Business Segments

Spinning

Technical Textiles - Value added Products

Business Divisions…(1)

Spinning Division

▪ More than 25 years of experience in Spinning

Industry

▪ 52,000 Spindles capacity

▪ Raw material comes from selected ginners of India and International sources in West Africa, Australia and US

▪ Manufacture Combed, Carded and Compact

Yarns, Sub Yarns and Fancy Yarns

▪ Maintain & manage captive use windmill based augmentation infrastructure to tap 18.15 MW power from 58 owned and operated wind turbine installations

Makes some of finest cotton yarns

Business Divisions…(2)

Lamination Division

▪ One of most innovative technologies used in Textile

products

▪ Only Indian Company with more than decade of

experience

▪ Two lines can produce approx. 6,00,000 meters per

month

▪ Applications

▪ Breathable, Waterproof membrane Lamination,

Fleece to Fleece, Paper to Fabric, Flat Fabric to Raised Fabric Knit to Woven

▪ Uses

▪ Outdoor Clothing fabric, Mattress Protectors, Medical Textiles, Industrial Application, Military Application

▪ Laminated Products –Applications ▪ Quick Dry – Original Dry Sheet ▪ Quick Fit – Mattress Protectors ▪ Q Club – Active player in Baby Products

First Company to introduce Reactive Polyurethane Lamination technology in India in 2005

Lamination Division… Strong Retail Brand in India

▪ Market leadership

o Market leader – combined with “Inventor & Innovator” of Dry Sheets in India

o Manufactures more than 100,000 mts/ month; millions in a year

▪ Wide Retail Distribution Network in

India

o Pan India presence – connecting to 10,000+ Retailers through 200+ Distributors and over 90 on-ground sales force

o Strong Retail Brand created across

India

▪ Exports to Middle East & South-East

Asia

Lamination Division…First of its kind Reusable Fabric Diaper

Features

✓ Super Comfort - Feathery touch

fabric

✓ Highly Absorbent

▪ ▪

Side Tank System Fully Laminated Layer

✓ Ergonomically designed - Unique T- Shaped pattern which fits perfectly around baby’s body

✓ Super Stretch Fit – Fully Elasticated

✓ Completely safe and won’t harm

baby’s skin

✓ Awaiting patent

UNIQUE RAPISOAK TECHNOLOGY

Benefits

✓ Quickest drying time- Baby feels dry

fastest

✓ Maximum fluid holding ✓ Easy clean ✓ Hygienic ✓ Available in 3 Different Sizes ▪ Small- 3-8 kg ▪ Medium- 7-12 kg ▪ Large- 9-14 kg

✓ Eco-friendly and can be reused for

many times

✓ “Pocket-friendly” - Affordable across

all sections of society

Already launched in Tamil Nadu – target to create Pan India Presence

Business Divisions…(3)

Military & Tactical Gear

▪ Military and Tactical Gear : Makes most advanced

military gear like Nuclear Biological Chemical Suits (NBC)

▪ Extreme cold weather clothing – Protection from 5

degree to minus 20 degree centigrade

▪ Super high altitude Mountaineering clothing

▪ Among very few companies making specialised three

layered suits

▪ Protection in minus 50 degree centigrade

▪ Specialised Bag packs for mountaineering

Business Divisions…(4)

Processing Division

Coating Division

Bag Division

▪

▪ Unit started in year of 2012 at SIPOT, Perundurai, Erode Famous for Specialised, performance fabric processing, including high fastness, moisture wicking properties and for delicate fabrics

▪

9 lakh meters material handling capacity per month

▪ Wide range of applications

▪

Acrylic coated products, PU Coating, Art Canvas & Digital Canvas Products

▪ Offers various range of finishes

▪

Fire retardant, water repellent, Soil & stain resistant, Anti-microbial, Anti- static, Rubber Finish, Oil resistant

▪

Bag ranging from School bags, exclusive girls range & professional range for camping & photography

100% Polyester and Nylon fabric, stitched with nylon bonded thread

Photography range : Camera bags, Utility bags, Long Lens bags, Tripod bags, Storage Accessories, Messenger bags

Key Strengths

Continual focus on Innovation & New product development

▪

Strong capabilities backed by in – house manufacturing and R&D that enables developing innovative, new & better quality products

Integrated business operations & unique business model ▪ Multifaceted Company with strong focus on value added

▪ ▪

products Vertically & Backward Integrated operations First Company to introduce Reactive Polyurethane lamination technology to India in 2005

▪ Well diversified across segments and products

Multi product range with wide range of applications Yarn, Combed, Carded and compact yarns/ Sub / Fancy yarns Laminated Fabric - Quick dry/Quick fit Special garments – Military and Tactical gear & Extreme cold weather clothing Coated Fabric - Canvas Rolls/ Canvas Boards/Stretched Canvas Garments - Home textile / Knitwear/outer wear Bags- Travel bags / Camera bags/ utility bags

▪

▪ ▪

▪

▪ ▪

State of art infrastructure facilities ▪

Advanced Technology with State-of-the-art plant and machinery Substantial self-sufficiency in power needs through green power generation by windmill that reduces energy cost

▪

Strong Retail Brand with pan India presence – Quick Dry & Paw Paw ▪ “Inventor & Innovator” Market leader of Dry Sheets in India Launched one of its kind Reusable fabric diaper with unique Rapisoak Technology

▪

▪ Wide distribution - 10,000+ retailers

through 200+ distributors with 90 sales team on ground

Dynamic experience leadership Enterprising management team with rich experience in Textile & Technical Textiles Industries Dedicated and skilled employee base

▪

State of Art Manufacturing Facilities

Spinning Unit

Processing Unit

Lamination Unit

Bag Unit

Kodangipalayam Village Karadivavi Road, Paruvai Post Coimbatore District, Tamilnadu

Factory E-16, P-11 SIPCOT Industrial Growth Estate Perundurai, Erode 638 052 Tamilnadu

S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658

S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658

Coating Unit

S.F. No. 371/5, Karadivavi Road Paruvai Post, Karanampet Palladam - 641 658

Knitting Unit

Garment Division

Windmills – Tamil Nadu

Kodangipalayam Village Karadivavi Road, Paruvai Post Coimbatore District Tamilnadu

S.F No. 371/5, Karadivavi Road Paruvai Post, Karanampet, Palladam 641 658

▪ Munduvelampatti Village ▪ Gudimangalam

Athukinathupatti & Uthukuli Villages

▪ Vagatholubu Kongalnagaram

Certifications

Way Ahead

Quick Dry - Expand Distribution & Consolidate market leadership in Dry sheets

▪

Target - ‘Quick Dry’ to be largest baby products provider in India

Increase distribution network pan India – plans to reach 30,000+ retailers through 400+ distributors

Increase wallet share of existing customers and add new customers - enhancing product offerings through innovation and technology

Increase in Paw-Paw diaper business

▪ Optimize on existing distribution channel and increase in online-

offline network to have pan-India reach

▪

Continued focus on Innovation to make it more user-friendly and comfortable for babies

Increase in Military & Tactical Gear business ▪ Add new & innovative products and increase product offerings in Defence segment, through innovation combined with integrated facilities & strong R&D capabilities

Thank You

511108

SHIVATEX

SVTYIN

SHTE.BO

For further information, please contact:

Company :

Investor Relations Advisors :

Shiva Texyarn Ltd.

Bridge Investor Relations Pvt. Ltd.

Mr. C Krishna Kumar krishnakumar@shivatex.co.in

Ms. Savli Mangle savli@bridge-ir.com

http://www.shivatex.in

www.bridge-ir.com

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Shiva Texyarn Limited has informed the Exchange regarding Investor Presentation for the quarter ended 30.06.2019

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