investor presentation - chittorgarh · 2018-07-28 · uster certificate we are one of the few...
TRANSCRIPT
Investor Presentation
JULY 2018“Creating Possibilities, Creating Value.”
This investor presentation does not constitute a prospectus or an offer to acquire securities. This document is for information purposes
only and not intended to be taken alone for the basis for an investment decision. The information contained in this presentation is only
current as of its date. Our presentation/ proposal may include predictions, estimates, management opinions or other information that
might be considered forward-looking. These forward-looking statements represent our current judgment on the future; they are
subject to risks and uncertainties that could cause actual results to differ materially. Such forward-looking statements are subject to
risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause
actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company can change any
of the information provided in this presentation without obligation to notify any person. No person is authorized to give any
information or to make any representation not contained in this presentation and, if given, such information or representation must
not relied upon. This presentation is strictly confidential.
The Company or its Lead Managers will not be in any way responsible for any action taken based on such statements and undertakes
no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Disclaimer
“Creating Possibilities, Creating Value.”
Company Highlights1. Lagnam Spintex was originally incorporated on June 11, 2010 as a Private Limited and started commercial
operation from April 2012
2. Lagnam Spintex has strong track record of performance with growing Turnover, Export, PBT, PAT, RoNW every
year.
3. Lagnam Spintex is an ISO 9001:2015 certified Company engaged in the business of manufacturing of high quality
open end cotton yarn for domestic and export market ranging from count Ne 4 to Ne 20 which is used in Denim,Terry Towels, Bottom Wears, Home Textiles and Industrial Fabrics etc.
4. With the proposed expansion, the manufacturing capacity will more than double from 16.5 MT per day to 35.1MT per day and will significantly diversify the end use for our product offering.
5. Lagnam Spintex has been recognized as “One Star Export House” by the Director General of Foreign Trade. Alsoreceived OEKO-Tex certification
6. Lagnam Spintex has been recognized as Investment Grade company by ICRA (BBB-)
7. Highly experienced board, with 4 out of 6 directors being Chartered Accountants, having vast industry
experience
“Creating Possibilities, Creating Value.”
Milestone of Our Company
201720162015
201420132012
2010
Incorporation of the Company Started ExportsCompleted Second
Expansion Awarded Star Export House Certificate
Awarded ISO 9001:2015 certificate in Manufacture & Export of Cotton Yarn
Started Commercial Production
Completed First Expansion
Oeko-tex Certificate
GOTS Certificate
Received
Uster Certificate
“Creating Possibilities, Creating Value.”
Robust growth in Performance
REVENUE (IN CRORES)
PAT (IN CRORES)
EBIDTA (IN CRORES)
RETURN ON NET WORTH
“Creating Possibilities, Creating Value.”
Promoters
ANAND MANGAL (35 Years)Managing Director
•He has completed his B.Sc.(Honors) in Business & Management Studies from University of Bradford, UK•He has experience of 7 years in the field of business administration & Sales & Marketing•He is a proven influencer & negotiator and has pragmatic approach of getting the required results.•Anand leads the customer relationship & international business vertical which has led to rapid growth in
exports.
D.P. MANGAL (69 Years)Chairman and Whole-Time Director•He is a Chartered Accountant with more than 38 years experience in the Textile Industry•He retired as Executive Director of RSWM Ltd after working for 17 years and was over viewing overall
operations & profitability of their various units and undertaken many expansion projects•He served on the Board of Bhilwara Technical Textile Ltd, Cheslind Textile Ltd and RSWM-Sisa SA, Spain•He also worked as CEO of JCT Ltd, one of the largest integrated textile mills of India producing more
than 60 Lakhs meters fabrics a month and Executive Director of Aditya Mills Ltd for a period of 6 years•He plays the key role in formulation and implementation of business strategy for growth and expansion
“Creating Possibilities, Creating Value.”
Board of Directors
J.C. LADDHA (69 Years)Independent Director
•He is a qualified Chartered Accountant and had been associated with RSWM Ltd. for around 43 years, whichis engaged in business of textile and is one of the largest textile companies in India with a turnover of aroundINR 3,000 crores as on 31st March 2017•During his tenure with RSWM Ltd. From 1973 to 2016, he has worked at various management positions and
was involved in various expansion projects of the company•Currently, he is the Chairman of M/s Sudiva Spinners Pvt. Ltd. which is engaged in manufacturing of cotton
yarn having 28,560 spindles and 2,208 rotors with a Turnover of INR 286.57cr. as on 31st March 2018•He is also Vice Chairman of Rajasthan Textile Mill Association and continue to serve onboard of RSWM Ltd.
VIJAY BAPNA (69 Years)Non-executive Director•He has completed his M. Com and is a Chartered Accountant, having a rich experience of 46 years
•He was responsible for overall management and operations and was on the board of Ispat Industries Ltd,Indorama Petrochem Ltd. Bangkok, Welspun Maxsteel Ltd., Welspun Steel Ltd., Remi Metal Gujarat Ltd.,
Welspun Resource Australia, Essar Steel Algoma, Canada and Essar Steel Minnesota USA.
•He has received many awards and recognition like Udyog Ratna Award, Best Professional Manager Award,International Management Excellence Award
•Advisor of MOORE STEPHENS Singhi International, UK a top 10 branded global accounting and advisory
network.•On Social front, he is International President of Mahavir International, a social organization.
“Creating Possibilities, Creating Value.”
Board of Directors
DIPALI MATHUR (36 Years)Independent Director
•Dipali is an MBA with very strong understanding of Indian consumer and strong foundation in Finance andWealth Management• She has worked with Citibank, HSBC Bank and Standard Chartered Bank in Retail and Wealth Management for
10 years.• She is founder of Magnifique, a chain of luxury salons and Bonjuz a chain of freshly squeezed Healthy
beverages & made to order healthy food options• She is an entrepreneur with multiple business ventures
ANIL SHAH (64 Years)Independent Director
•He is a CA in practice for the last 40 years, presently he is a senior partner of M/s. Anil Shah & Associates•He was associated with ICAI as Member, Secretary & Chairman of Chapter of Udaipur Branch•He is involved as Advisors to various Industrial Groups, presented papers and penal speaker in various
seminars, conferences conducted by various Professional Institutions•Acting as Treasurer of Bharatiya Lok Kala Mandal for the last 25 Years and also the Treasurer of Vidhya Bhawan
Society for 5 years• Founder Secretary of “Advent Age Education Foundation” where running G.D. Goenka International School
“Creating Possibilities, Creating Value.”
Technology
At Lagnam, Yarn is manufactured using the most Automated, State of the Art and
Innovative Technology.
Blow Room
Modern Blow Room Line from Truetzschler with Fully automatic Bale Opener, Seed
Trap, Pre-Cleaner, Multi Mixture, Cleanomat Cleaner CL - C3 / 1600 equipped with
Dustex and SPFPU to control Colour and White Polypropylene contamination.
Card and Drawing
Truetzschler latest card TC 5-3 with quality monitoring and Draw Frame TD - 07 with
micro computer control system and Auto can changer.
Truetzschler Draw Frames TD-08 with Autoleveller, up to 8 fold doubling, computer
control system with comprehensive quality monitoring and auto can changer.
Open-End Spinning machines from SCHLAFHORST, Germany, the leading textile
machine manufacturer in the world.
“Creating Possibilities, Creating Value.”
TechnologyUSTER CertificateWe are one of the few textiles companies in the world which has been authorized to use USTERIZED™ Trademark. Thequality can be matched to Customers' requirements with the most Advanced Technology and has Uster Equipmentslike AFIS PRO 2, UT5, UTR 4 & Classimat 5
“Creating Possibilities, Creating Value.”
Balance Sheet
In INR Lakhs FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
Net Fixed Assets 5,210.10 4,846.48 5,075.85 3,461.29 2,529.38
Capital work in Progress 79.99 23.55 0.00 216.30 230.89
Other non-current assets 78.82 88.73 89.90 177.02 99.61
Inventories 1,330.42 748.51 528.53 560.71 417.10
Trade receivables 874.55 899.34 922.91 674.03 587.48
Cash and bank balances 8.99 2.42 8.42 28.38 133.71
Other current assets 788.24 578.49 427.48 281.12 142.81
Total Assets 8,371.11 7,187.52 7,053.10 5,398.85 4,140.96
Share Capital 1,166.90 226.80 226.80 226.80 206.80
Reserves & Surplus 1,477.50 1,847.91 1,480.83 1,272.32 1,034.50
Long term borrowings 2,741.15 3,256.68 3,676.14 2,885.35 1,949.99
Other Non-current liabilities 486.37 375.65 181.19 68.38 35.93
Short term borrowings 1,741.97 969.32 1,096.65 668.59 682.53
Trade payables 233.64 77.31 62.21 33.71 53.19
Other Current Liabilities 523.58 433.85 329.29 243.70 178.02
Total Liabilities 8,371.11 7,187.52 7,053.10 5,398.85 4,140.96
“Creating Possibilities, Creating Value.”
Profit & Loss
In INR Lakhs FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
Revenue from operations 8,390.61 7,503.30 5,617.34 4,946.36 4,187.90
Total Revenue 8,454.47 7,538.43 5,656.41 4,983.41 4,205.99
Cost of Material Consumed 6,161.59 5,190.53 3,736.74 3,443.15 3,080.65
Purchase of Stock in Trade 0.00 0.00 74.68 0.00 0.00
Changes in Inventories of FG & WIP -214.59 19.62 -34.63 71.93 -115.96
Employee benefit expense 151.53 117.06 121.70 94.39 75.87
Other expenses 1,237.33 1,056.91 852.63 720.52 572.20
Total Expenses 7,335.86 6,384.12 4,751.12 4,329.99 3,612.76
EBIDTA 1,118.61 1,154.31 905.29 653.42 593.22
Finance cost 284.52 342.69 395.28 330.47 279.92
Depreciation and Amortization 261.25 260.39 191.96 136.42 136.70
PBT 572.84 551.24 318.05 186.54 176.60
Tax 104.35 184.15 109.55 28.72 31.89
PAT 468.49 367.09 208.50 157.82 144.71
“Creating Possibilities, Creating Value.”
Financial Ratios
Particulars FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
EBITDA Margin 13.23% 15.31% 16.00% 13.11% 14.10%
PAT Margin 5.54% 4.87% 3.69% 3.17% 3.44%
ROCE 14.60% 15.66% 12.82% 11.61% 14.15%
RONW 17.72% 17.69% 12.21% 10.53% 11.66%
Debt-Equity Ratio 1.70 2.04 2.79 2.37 2.12
EPS 4.15 3.27 1.86 1.41 1.43
Earnings per ShareReturn on Capital Employed
“Creating Possibilities, Creating Value.”
Exports
• SOUTH AFRICA
•CHINA
•BANGLADESH
•PAKISTAN
• PORTUGAL• ITALY
•GERMANY
•COLUMBIA
• BELGIUM• SLOVENIA
EXPORTS (IN CRORES)
•BHILWARA
“Creating Possibilities, Creating Value.”
Investment Rationale• Robust Financial performance: The company revenue is growing at CGAR of 19.07% and PAT is increasing by 34.04% on year on year
basis since 2013
Snap shot of key Numbers
• Experienced Promoters: Promoters of our Company have combined experience of 45 years in textile industry. Chairman of our company
retired from RSWM Ltd as a Executive Director after serving for more than 15 years
• Optimum capacity utilization: Our company existing plants operates at 99% capacity. With the additions in capacity, revenues ofcompany shall increase many folds since there is a robust demand for our products
• Increase in manufacturing capacity: With the commissioning of new manufacturing facility, the production capacity of our company will
increase to 35.1 MT yarn per day from present 16.5 MT yarn per day
Particulars FY 2018 FY 2017 FY 2016 FY 2015 FY 2014
Sales 8,390.61 7,503.30 5,617.34 4,946.36 4,187.90
EBITDA 1,118.61 1,154.31 905.29 653.42 593.22
PAT 468.49 367.09 208.50 157.82 144.71
“Creating Possibilities, Creating Value.”
Investment Rationale
• Low Finance Cost: The Company has low interest financial cost. The debt of INR 94 Cr carries net interest payment outgo of 3.50% to
4.15% after taking into account subsidy from Government
• Investment Grade Rating: ICRA have awarded BBB- rating to the company and SBI has granted SB 5 rating to the company
• Long standing relationship with the customers: Longstanding relationship with the customers has helped in obtaining repeat business
that gives stability to and a competitive advantage in acquiring new clients and increasing the business
• Technological advantage: Our expansion plant will be a fully automatic plant equipped with latest technology with machines imported
from internationally renowned manufacturers such as Truetzschler, Uster, Saurer, Rieter and Electro Jet
• Strong culture for research and development: In house research and development team, having access to advanced technology andequipment, tests yarns of different strengths according to client specifications and requirements. The company is authorized to use
USTERIZED Trademark, as token of highest quality
• Wide Product range and customized offering: With the commissioning of new manufacturing facility, company will offer all kinds of yarnsin the industry to its clients
• Order of major Plant & Machinery has been placed and civil construction work is being carried out for the new facility
“Creating Possibilities, Creating Value.”
S.W.O.T Analysis
• Promoter and management team
have rich industry experience
• Company has a wide and strong
customer base
• Plant is equipped with quality
equipment and technology
•Locational advantage of the
production site
• Exposed to currency fluctuation
risk for exports and import of
machinery
• Fluctuation in raw material cost
Strengths Weaknesses
ThreatOpportunities
•Severe Competition in domestic
and international markets
•Pricing Pressures on Finished
Goods due to competition
•Volatility in input cost
• Abundant Raw Material Supply
• India’s proximity to emerging
markets is a key advantage for
developing an export base
• Expansion plan of Company
“Creating Possibilities, Creating Value.”
Certifications
OEKO-TEX Certificate TRADEMARKS REG. GOTS CERTIFICATE
ISO 9001:2015USTERIZED TRADEMARKSIA CERTIFICATE
“Creating Possibilities, Creating Value.”
Our Customers
“Creating Possibilities, Creating Value.”
Objects of the Issue
• Setting up additional manufacturing facility of 25,536 spindles for production ofRing spun combed and carded yarn
• Meeting Issue Expenses
Amount in croresCost of Project 125.40
Means:Bank borrowings 94.00(Consortium of SBI & PNB)
Internal Accruals 9.40
Net proceeds from IPO 22.00Total 125.40
“Creating Possibilities, Creating Value.”
Details Particulars
Issue Size Upto 60,00,000 Equity Shares
Issue Size in amount Rs. 24.60 Crores
Face Value Rs. 10/-
Issue Price Rs. 41/-
Lot Size 3,000 Shares
Issue Opens on [●]
Issue Closes on [●]
IPO Venue NSE Emerge
ISSUE HIGHLIGHTS
Lead Managers to the Issue
Holani Consultants Private Limited
BOI Merchant Bankers Limited
Registrar to the Issue
Bigshare Services Private Limited
Issue Structure
Market Maker Portion 3,00,000 Equity Shares
Retail Portion 28,50,000 Equity Shares
Non-Retail Portion 28,50,000 Equity Shares
Shareholding Pattern PRE IPO POST IPO
Promoter & Group Holding 99.91% 65.98%
Public Holding 0.09% 34.02%
“Creating Possibilities, Creating Value.”
Contact Us
Registered Office Address : A 51- 53, RIICO Growth Centre
Hamirgarh, Bhilwara- 311001, Rajasthan, IndiaPhone:+91 1482-289210, +91 9929091010
Contact : Mr. Anand Mangal
Email: [email protected]
401-405, 416-418, 4th Floor, Soni Paris Point,
Jai Singh Highway, Bani Park, Jaipur-302016 (Raj.)
Landline : 0141-2203995 / 2201259
Mobile : 98290 10099
Contact : CA Ashok Holani
Website: www.holaniconsultants.co.in
E-mail: [email protected]
Star House-II, First Floor, Plot No. C-4, G-Block,
Bandra-Kurla Complex, Bandra (E), Mumbai –
Landline : 022-6131 2906
Mobile : 9478954140
Contact : Mr. Promod Kumar Bathal
Website: www.boimb.com
E-Mail : [email protected]
“Creating Possibilities, Creating Value.”