SYNTEX LTD

Investor Presentation February 2016

This presentation contains certain forward looking statements concerning the Companys future business prospects and
business profitability, which are subject to a number of risks and uncertainties and the actual results could materially
differ from those in such forward looking statements. The risks and uncertainties relating to these statements include,
but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth,
competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly
skilled professionals, time and cost over runs on contracts, our ability to manage our international operations,
government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The
company does not undertake to make any announcement in case any of these forward looking statements become
materially incorrect in future or update any forward looking statements made from time to time by or on behalf of 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.

This presentation and the accompanying slides (the Presentation), which have been prepared by Banswara Syntex
Limited (the Company), have been prepared 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. No offering of securities of the Company will be made
except by means of a statutory offering document containing detailed information about the Company.

Safe Harbour

} Q3 FY16 Result Highlight

Q3FY15

3.0

Q3FY15

309.8

Q4FY15

-2.4

Q1FY16

Q1FY16

3.3

+366%

PBT Rs crs

Q4FY15

290.5

Q2FY16

8.7

Q2FY16

326.5

Q3FY16

14.2

Q3FY16

317.0

Q3FY15

1.8

Q3FY15

35.9

Q4FY15

-1.5

Q1FY16

Q1FY16

1.7

+379%

PAT Rs crs

Q4FY15

28.0

34.8

39.9

Q2FY16

5.4

Q2FY16

+9%

+2%

293.8

EBIDTA Rs crs

Production Valu Rs crs

Strong Sequential Recovery Underway - Consolidated

Q3FY16

8.5

Q3FY16

39.2

Focus on high margin Garmenting and Fabric business

Entry into new geography of Japan, USA & Europe witnessing good traction

The Rebate pertaining to the Interest Equalisation Scheme amounted to Rs 1.3 crs per quarter totally
to Rs 3.9 crores for 9M FY19 fully charged in Q3 FY16

Received additional 3% interest rebate under New Interest Equalisation Scheme effective from 1st
April 2015

PAT grew by 379% to Rs. 8.5 crores

Regular debt repayment as per schedule

Finance expense lower by 32.7% to Rs. 13.8 crores

EBITDA margin expanded by 110 bps to 3.15%

EBITDA grew by 9.35% to Rs. 39.2 crores

Pass on of lower commodity prices leding to lower realisation & revenue growth

Improvements in Gross Margins is due to higher weightage of Garmenting & Fabric in the
product mix

Production valuegrowth of 2% to Rs. 317 crores

Q3 FY16 Results Highlights

52.3

75.2
39.2

Employee Exp

Other Expenses

EBIDTA

13.8
14.2
5.7
8.5

Finance Cost

PBT

Tax

PAT

2.81%

14.5

Depreciation

PAT Margin

3.3

Other Income

13.05%

133.8

Raw materials

Margin %

300.5

Q3 FY16

Total Operating Income

Rs Crs

0.59%

1.8

1.3

3.0

20.5

15.1

2.8

11.95%

35.9

76.6

44.8

142.8

300.0

Q3 FY15

Consolidated Q3 & 9M FY16 P&L Highlights

379.11%

366.45%

9.35%

0.18%

Y-o-Y

1.70%

15.6

10.5

26.1

53.3

43.0

8.5

12.44%

114.0

223.4

147.4

431.5

916.3

9M FY16

1.05%

9.7

7.3

17.0

60.9

44.2

11.6

12.00%

110.5

220.9

133.9

455.4

920.7

9M FY15

60.97%

53.61%

3.18%

-0.48%

Y-o-Y

} About Banswara Syntex Ltd

Tie-up
with
International
designers

Design Studio
in Paris

Rs. 426 Crore

CAPEX in the
last 5 years

Revenue Growth
10% CAGR over
last 5 years

Business Snapshot

Featured Products
Automotive,
Technical & Fireretardant Fabric

In-House R&D

Exports to more
than 60 countries

Production
Facilities at
Daman,
Surat &
Banswara

Experienced
and
Professional
Management

J.V. with Treves

SA of France for
Automotive textile

Vertically
Integrated Textile
Solutions Company

Quality
Assurance

Reputed
Domestic and
International
Clients

Fabric

Complete
Vertically Integrated Producer
from
Garments
rments
Fibre to Garment

Retail Brand

Yarn

Vertically Integrated Textile Solutions Company

2 Thermal Power Plants with capacity of 33 MW

Power Generation

Manufacturing Capacity pcs/ month

o Trousers & Suiting's 3,45,000
o Jackets & Waist Coats - 38,000

Specialise in Trousers , Jackets & Waist Coat

production

Garmenting Units: Daman & SEZ Surat

Garments

Manufactures 3 mn mts p.m. of suiting fabric for

Domestic & Exports Markets

Produce Hi-Quality Hi- Performance Textile wear

finished fabric

Fabrics

o 2,160 tons - wool mix yarn

o 33,300 tons - polyester blended dyed yarns

Production Capacity 35,460 tons pa

Produces blends of viscose staple fibre, polyester

staple fibre, acrylic staple fibre, lycra, cotton,
linen and wool

Yarn

1976

1993

2005

2007

Class Laboratory

Started a World

Weaving

Worsted Spinning
Started Jacquard

Automotive
Textiles

Treves SA for

with French
Company

Joint Venture

Entered into

2012

10

2015

2011

2008

Bought the
complete stake
in Carreman JV
after increasing
its skate to
80% in 2012

2nd unit of 15 MW
thermal power plant
Started wool & wool
mixed fabrics brand
"SaintX - for
formal wear

Started production of
Made-up's and

Started first unit

of 18 MW captive
thermal power
plant
Take over of
manpower from
Banswara Fabric
Ltd

Amalgamation of
Banswara Textile Mills
Ltd. (BTM), an
associate firm engaged
in fabric finishing
activity
Entered into a 50:50
JV with Carreman,
France

2004

Readymade
Garments

Started
production of

Started cloth
Weaving under
brand BANTEX

Incorporated as
a Joint Sector
Co. with RIICO
Ltd.
Started Yarn
production with
12,500 spindles

Evolution Complete Textile Vertical

Responsible for Readymade Garment business of the Company

25 years of experience in Textile Industry

Responsible for the overall activities of the company with an

emphasis on export of fabrics

Over 11 Years of experience in Textile Industry

Undertaken OPM Course of Harvard University, USA

Mr. Shaleen Toshniwal Joint Managing Director

Business Management from Bentley College, USA

B.Tech (Chem.) from IIT, Mumbai

Mr. Ravindra Kumar Toshniwal Managing Director

Ex-President of Indian Spinners Association

Holds the position of Chairman of SRTEPC

Responsible for the entire commercial and financial activities

with an emphasis on yarn Export and Automotive Fabric Business

On the board of four other companies

Held the positions of Chairman of RTMA and SRTEPC

29 years experience in Textile Industry

Mr Rakesh Mehra Vice Chairman

52 years experience in Textile Industry

1
Chartered Accountant from ICAI

Masters degree in Textiles from Leeds University, UK

Mr. R L Toshniwal Chairman

Leadership Team

11

Dr. Vaijayanti Pandit

Independent Director

Mr. Kamal Kishore Kacholia

Independent Director

Mr. Vijay Kumar Agarwal

Independent Director

Mr. A N Jariwala
Independent Director

Mr. D P Garg
Independent Director

Mr. Arun Agarwal

Additional Director

Mr. Vijay Mehta

Independent Director

Dr. S B Agarwal
Independent Director

Mr. Shaleen Toshniwal

Joint Managing Director

Mr. Ravindra Kumar Toshniwal

Managing Director

Mr. Parduman Kumar

Independent Director

Mr. Rakesh Mehra

Vice-Chairman

Mr. R. L Toshniwal
Chairman

Board of Directors

12

} Business Overview

13

External Sales

Polyviscose &
Worsted
Spinning

Spinning

Spun Yarn for

Internal Use

Garmenting

Garments / Made-Ups
(Trousers, Jackets &
Waist Coats)

External Sales

Fabric for Internal Use

External Sales

Processing &
Finishing into
Fabric

Polyviscose, Worsted Fabric,

Cotton Fabric & Technical
Fabric

Weaving & Processing

External
Purchase of
Cotton Yarn

Business Model (Process)

14

Poly Viscose Yarn

Capacity 35,460 tons yarn p.a.

}
Polyester Yarn

90% of production consists of fibre-dyed yarns

Woollen Yarn

Acrylic Yarn

Specialty Yarn - Grindle and Slub in Dyed form

P/V Dyed Yarn - Rigid and Lycra, 100% Acrylic Yarn, Worsted Yarn with blends like P/W and P/W/Lycra

Specialties include :

One of the largest single-mill setups producing spun fibre-dyed yarns in Asia

Yarn

15

Presence Across: Worsted, Wool Specialties, Viscose, Poly

Viscose, Poly Viscose Lycra, Cotton Suiting and Shirting

PU coating on Fabric for Water Repellent and Stain Release

Breathable Water Proof membrane coating on Fabric

Expertise in Three-Layer Fabric for Defence

Laminated Fabric for Interior of Automobiles

In-House Design Studio for Fabric Design and

Development in India and Paris

Fabric Cut Panels used for Automobile

50:50 J.V. with Treves S.A. of France for Automotive

textile

Flame Retardant Fabric

Shiny & Waxy Coating

Technical Textile - Coatings & Lamination on fabrics

Our Speciality Textiles include:

Leadership in Poly Viscose and Poly Viscose Lycra for

Suiting

Hi-Quality Hi-Performance Textile wear finished fabric

for both Domestic and Exports

Fabric

Automotive

Cotton Fabric

Poly Viscose
Fabric

Technical Fabric

Fire Retardant

Worsted Fabric

16

Formal Trousers Water Repellent and Stain Release

Suits In depth know-how in Lined and Unlined 3-Piece Suiting
Casuals - Enzyme Washed/Bleached Casual Bottoms & Jackets

Installed capacity for 3.45 lakh Trousers & Suitings and 37,500
Jackets & Waist Coats p.m

A completely vertically integrated Mill with Specialized line

dedicated to Trouser and Jacket Production
Own Formal & Casual merchandise under Integration and
SaintX brands
Operates 4 factory outlet stores in India

Retail Focus:

Garmenting units Daman and Surat SEZ

Specialties:

Readymade Garments

17

E-Commerce Clients:

Domestic Clientele

18

Increasing presence in Garmenting Space

International Clientele

19

Mexico

USA &
Canada

Global Presence

UAE

India

Russia

Exports to more than 60 countries

Greece

France &
UK

America
30%
Europe
49%

Geographical Export
break up FY15
Others
8%
Gulf
14%

20

} Manufacturing Capability

21

Banswara Facility

Daman Facility

Invested over Rs. 14 crores towards expansion and modernization of Surat SEZ over 5 years

Thermal Power Plant

Surat SEZ Unit

Manufacturing Facilities

22

Garmenting Unit

Dyeing Unit

Invested over Rs. 425.7 crores towards expansion and modernisation during the last 5 years

Weaving Unit

Spinning Unit

Manufacturing Capabilities

23

FY13

FY14

840

FY13

840

FY12

FY11

FY14

840

Fiber & Wool Dyeing

FY12

840

FY11

127,012

129,016

FY15

1,050

FY15

130,552 130,552 130,552

Synthetic Blended Yarn

Spinning and Yarn

(MT/month)

Spinning
(Spindles)

FY11

150

FY11

14,400

FY12

150

FY12

FY13

FY14

21,120

FY13

150

FY14

150

Yarn Dyeing

14,400

21,120

Worsted Yarn

FY15

150

FY15

21,120

24

FY12

312

FY13

FY14

360

FY15

360

Fabric Processing Capacity

of 600 Lac Mtrs/Year

FY11

288

336

Fabric Weaving

Capacity in Lac Mtrs/Year

FY11

133

FY11

151

FY13

FY14

163

FY12

160

FY13

157

FY14

155

Value Added Fabric

FY12

95

167

Commodity Fabric

Sales in Lac Mtrs/Year

Fabric Weaving and Processing

FY15

164

FY15

154

FY11

354

FY12

403

FY13

488

+7% CAGR

FY14

532

Fabric Weaving

470

25

FY15

Revenue in Rs Crores

285

FY12

FY11

270

FY11

FY11

FY12

23

FY12

270

15

285

FY13

30

Jackets

FY13

345

Suiting

FY13

345

Trousers

FY14

30

FY14

345

FY14

345

FY15

38

FY15

345

FY15

345

Capacity in 000 pcs/month

Garmenting

FY11

80

FY12

114

FY13

136

+28% CAGR

FY14

189

Garmenting Sales (Rs Crores)

FY15

212

26

}
}

World class fabric testing laboratory as per ISO, AATCC, ASTM, LS & Co., M & S etc.
testing protocol
Achieved accreditation of Levis & Co., Marks & Spencer and undergoing ISO 17025
NABL accreditation
Computer software for developing new designs for manufacturing of Jacquard fabric
In House Design Studio in India and France

In-House Research & Development

27

First laboratory in the country to be approved by Marks &

Spencer, UK and Levis Strauss & co., USA

Golden trophy for BEST EXPORTER of "Synthetic and Rayon

Spun Fabric Silver Trophy for SECOND BEST Exporter
Accredited partner for Semi-Luxury bag brand Coach for
three years in a row from India

2008-09: Best Overall Export Performance SRTEPC Special Award

2008-09: Best Export Performance in Man-Made Fibre Blended Yarn

2008-09: Best Export Performance in Acrylic Yarn

2009-10: Best Export Performance in Man-Made Fibre Blended Fabrics

2010-11: Best Export Performance in Synthetic & Rayon Spun Fabrics

2011-12 / 2012-13 / 2013-14: Best Export Performance in Synthetic & Rayon Spun Fabrics

Highest Export performance awards from The Synthetic & Rayon Textile Export
Promotion Council in the Following Categories

Awards and Achievements

28

} Business Strategy

29

Last 3
Years

Discontinued
logo business
for Coach
impacting
sales

Bought over
the entire
Joint Venture
with
Carreman

Impacting Profitability

Increasing
Employee
Costs

Time taken
to increase
share of
Suites and
Jackets

Production of
worsted
fabric below
optimum
levels

Business Initiatives

Entered 50:50 JV with for

Automotive Textiles

Utilisation of increased
capacities in Jackets & Suites

Value added Technical Textile

Established worsted & Cotton

fabric Marketing

Consolidating Product Portfolio

in Fabrics

Established Own Design Studio

and Marketing Network in Europe

Major Capex Completed

30

Investments in
place for new
digital
initiatives

Increasing
utilization of
fabric and
stabilizing
garmenting unit

Amalgamation of Banswara
Global Ltd(100% Subsidiary)
and Banswara Fabric Ltd
(Associate) with the company

Penetrating retail
branded segment
increasing store count

creating Future Drivers

To increase
Cotton Fabric
production
from 0.4 mn mt
to 1 mn mt p.m

Going
Forward

Increasing
market
presence for
Worsted fabric

Leveraging
manufacturing
capacity for
Jacquard Fabric

New In- House

design studio in
Paris

Focus on distribution
channels in Domestic
Market

31

Incremental growth from

Auto segment part of
Joint Venture

Hired designers from

Europe and USA

} Detailed Financial Performance

32

5.7
8.5

Tax

PAT

2.82%

14.2

PBT

PAT Margin

13.8

13.0%

Margin %

Finance Cost

39.2

EBIDTA

14.5

75.0

Other Expenses

Depreciation

52.3

Employee Exp

3.3

133.8

Raw materials

Other Income

301.0

Q3 FY16

Total Operating Income

Rs Crs

0.59%

1.70%

15.6
372.22%

26.1

3.0

1.8

53.3

20.5

10.5

43.0

15.1

1.3

8.4

1.1

373.33%

12.4%

114.0

37.5
12.5%

223.4

74.9

4.53%

147.4

44.8

916.3
431.5

0.33%

300.0

9M FY16

142.8

Y-o-Y

Q3 FY15

Standalone Quarterly P&L Highlights

1.05%

9.7

7.3

17.0

60.9

44.2

4.7

12.7%

117.4

214.0

133.9

455.4

920.7

9M FY15

60.82%

53.53%

-2.89%

-0.48%

Y-o-Y

33

Loss of Coach Logo business to the

tune of Rs 50 crores

Dissolved Joint Venture with

Carreman

Investments in employee base in

Garmenting, Retailing and Design
Studio

Discontinuation of High margin Coach

Logo Business and Carreman JV

Lower Realization and Inventory loss

due to fall in Polyester prices

FY15 EBIDTA impacted due to

Delay in stabilization of Worsted fabric

unit

FY15 Revenue impacted due to

Standalone Operating Performance

FY11

133

FY11

809

FY12

130

FY14

1,212

FY13

147

FY14

177

EBIDTA Rs crs

FY13

+10% CAGR

FY12

924

1,096

+14% CAGR

Revenue Rs crs

FY15

138

FY15

1,226

34

FY11

80

354

370

838

Yarn

35

FY13

FY12
Fabric

136
36

488

470

114
33

403

417

967

1,130

Garment

FY14

37

189

532

473

1,231

Segment Gross Revenue Rs crs

Other

FY15

40

212

470

514

1,236

Standalone Revenue Performance

FY11

62%

38%

838

FY13

53%

47%

Domestic

FY12

55%

45%

967

1,130

Exports

FY14

49%

51%

1,231

FY15

43%

57%

1,236

Geographic Gross Revenue Rs crs

35

Mar-15

617

64

Sep-15

553

Net Debt includes Current Maturity of Debt

Mar-14

666

49

Net Debt Rs. crs

Debt Repayment on Schedule

Mar-14

3.1

Mar-15

2.8

Debt:Equity Ratio

Sep-15

2.4

36

8.0

PAT

0.65%

6.4

Tax

PAT Margin

14.4

PBT

11.45%

Margin %

81.0

140.9

EBIDTA

Finance Cost

288.9

Other Expenses

62.6

183.5

Employee Exp

Depreciation

617.2

Raw materials

17.0

1230.6

Total Operating Income

Other Income

FY15

Rs Crs

Consolidated Annual P&L Highlights

2.13%

25.8

21.2

47.0

81.5

53.7

4.2

14.65%

178.0

293.5

162.3

581.6

1215.4

FY14

-68.9%

-20.8%

1.3%

Y-o-Y

37

40
13
522
280
146
81
15

Deferred tax liabilities

Other Non-current liabilities

Total Current Liabilities

Short Term Borrowings

Trade Payables

Other Current Liabilities

Short Term Provisions

1041

235

Long-term borrowings

TOTAL EQUITY & LIABLITIES

288

Minority Interest

Total Non-current Liabilities

Money received against share

warrants

214

Reserve & Surplus

1078

13

86

139

303

542

11

42

263

315

204

142
22
24
21

Trade Receivables
Cash
Short Term Loans & Advances
Other Current Assets

1041

314

Inventories

TOTAL ASSETS

523

Other non Current Assets

Current Assets

506

518

Sep 15

Long term loans & Advances

Non current investment

Fixed Assets

17

Share Capital

16

Non-Current Assets

221

231

Rs. Cr.

Shareholders Funds

Mar 15
ASSETS

Sep 15

EQUITY AND LIABILITIES

Rs. Cr.

Consolidated Balance Sheet

1078

35

22

17

139

330

543

525

535

Mar 15

38

Investor Relations Advisors :

Strategic Growth Advisors Pvt. Ltd.
CIN: U74140MH2010PTC204285
Ms. Ruchi Rudra / Ms. Dikshita Jain
rruchi@sgapl.net / jdikshita@sgapl.net
www.sgapl.net

Company :
Banswara Syntex Ltd.
CIN: L24302RJ1976PLC001684
Mr. J.K.Jain - CFO
jkjain@banswarasyntex.com
www.banswarasyntex.com

For further information, please contact:

39