`!

Hyderabad, 10th Nov., 2015

2015-16 Half-Year Results

Cotton Mills Ltd.

Suryalakshmi

a result of new information, future events or otherwise.

The Company undertakes no obligation to update or revise any forward-looking statements whether as

of raw materials, and failure to gain market acceptance.

which include, but are not limited, to inability to build production capacity to meet demand, unavailability

Also, for products that are approved, there are manufacturing and marketing risks and uncertainties,

domestic and foreign operations.

foreign apparel industry reforms; industry trends, and governmental laws and regulations affecting

claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and

competitors, challenges inherent in new product development, including completion of product trials;

`!

risks and uncertainties include, but are not limited, to technological advances and patents attained by

uncertainties particularly apply with respect to product-related forward-looking statements. Product

international economic conditions such as interest rate and currency exchange fluctuations. Risks and

Risks and uncertainties include general industry and market conditions, and general domestic &

uncertainties which could cause actual outcomes and results to differ materially from these statements.

statements are based on current expectations, forecasts and assumptions that are subject to risks and

Materials and information provided in this presentation may contain forward-looking statements. These

Safe Harbor Statement

OYZ!#0!>TH!9<!')3L!8.-!B2!9VL9X=!

T%4!O)#G4!#0!>TH!@V!')3L!8.-!B2!@[L\!X=!

QO]!#0!>TH!WLUV!-%)!3?+)%!8.-!@[L\!X=!

"#$$%&'%(!'#$$%)'*+,!-)#(.'/#&!#0!1+&'2!2+)&3!+4!#.)!&%5!6$)+7+/!-,+&4!89:;<<<!3-*&(,%3=!
>&4)#(.'%(!$#)%!4?+&!@<<!A%&*$!0+B)*'!7+)*+&43!*&!@34!?+,0!#0!1C@DE@:!5*4?!'#$B*&+/#&!#0!&%5!
`!
(2%*&F!+&(!GB%)!4%'?&#,#F*%3!
H%'%*7%(!&%5!+&(!+((*/#&+,!#)(%)3!0#)!1+B)*'!+&(!I+)$%&43!0)#$!J%7*3;!K1!"#)-L!8J%%!M!N)+&F,%)=;!
O%-%!P%+&3;!O%4%)!Q&F,+&(;!P"!O%&&2;!%4'L!+3!5%,,!#)(%)3!0)#$!I+)$%&4!3.--,*%)3!#0!$+R#)!B)+&(3!
O%)!$%4%)!-)*'%!)%+,*S+/#&!#0!A%&*$!0+B)*'!*&')%+3%(!0)#$!>TH!@U:!4#!>TH!@VV!

>&')%+3%(!4.)&#7%)!0)#$!4?%!&%5!6$)+7+/!-,+&4!+&(!0)#$!O#5%)!(*7*3*#&!
J+4%34!4%^/,%!4%'?&#,#F2!*&34+,,%(!+&(!_+R#)!"6OQ`!'#$-,%4%(!
a%+,4?2!?+)7%34!#0!'#b#&!*&!>&(*+!8V<!$&L!Y+,%3=!*&!3-*4%!#0!()#.F?4!*&!3#$%!-+)43!)%3.,/&F!*&!
+B.&(+&4!+7+*,+B*,*42!#0!B+3*'!)+5!*L%L!"#b#&!
N%+c&%33!*&!").(%!#*,!-)*'%3!)%3.,/&F!*&!,#5%)!'#343!#0!+&#4?%)!)+5!$+4%)*+,!*L%L!]2&4?%/'!2+)&3!

,1)16+(/&(2/&?&1/1.('6/@)*(-&A(56/4)-%"+(5-)*(

!"#$%#&'()*+(,-.)(,-.*#/&(0-"1+(2*-#&(

T%4!H%7%&.%!#0!>TH!U:W!')#)%3!8(#5&!B2!<L9X=!

3/%1.)(4&-&2#-"(5+67/6$-&2+(#&(8($/&)*.(/7(,#&-&2#-"(9+-6(:;<=><8(

2015-16 Half-year highlights

4%)$!+&(!5#)c*&F!'+-*4+,!,#+&3!
()+5&!0#)!6$)+7+/!.&*4!

T%4!A%B4!*&')%+3%(!#&!+''#.&4!#0!

(*7*3*#&3!,%+(*&F!4?%!"#$-+&2d3!
-)#G43!

]4)#&F!F)#54?!*&!A%&*$!+&(!O#5%)!

$+)F*&3!#&!+''#.&4!#0!,#5%)!'#343!
#0!H+5!$+4%)*+,!+&(!(%')%+3%!*&!
*&4%)%34!'#343!

>&')%+3%!*&!QY>AZ6;!OYZ!+&(!O6Z!

>&(*+&!+&(!0#)%*F&!$+)c%43!

a%+,4?2!G&+&'*+,!-%)0#)$+&'%!*&!

` 16 crs

PBT margin
up by 106 bps

5.5%

Profit Before Tax

up 24.1 %

Net increase in Term Interest costs

Loan for Amravati
decreased by 9.2%
plant

` 78 crs

EBITDA margin
up by 54 bps

`!

14.1%

EBITDA
up 4.2 %

Debt Equity Ratio

1.56

Net Profit margin

up by 57 bps

3.8%

Profit After Tax

up 17.9%

` 51.7 crs ` 20.1 crs ` 13.9 crs

H1 2015-16 financial performance summary

H1 2014-15

204

DENIM

H1 2015-16

217

+6.4%

Denim Division

H1 2014-15

444

139

SPINING

H1 2015-16

888

120

-13.9%

Spinning Division

`!

Segment-wise Sales H1 FY 16

24

POWER

H1 2014-15

23

+4.6%

H1 2015-16

479

Power

35

H1 2014-15

30

G A R M EN TS

H1 2015-16

473
47
3

+19.3%

Garments

Figs. in INR Crs.

H1 2014-15

24

DENIM

H1 2015-16

27

+11%

Denim Division

H1 2014-15

444

(B((

SPINING

H1 2015-16

-14%

888

Spinning Division

`!

Segment-wise EBIT H1 FY 16

H1 2014-15

0.7

479

POWER

H1 2015-16

+338%

Power

H1 2014-15

3
G A R M EN TS

H1 2015-16

-39%

Garments

Figs. in INR Crs.

15
20

Depreciation

Profit before TAX

5.5%
5.5%

PAT margin %

14.1%

14

PBT margin %

EBIDTA margin %

Profit after Tax

16

Interest

Tax

52

368

4.4%

4.4%

13.5%

12

16

16

18

50

367

1.1%

1.1%

0.5%

17.9%

41.2%

24.2%

`!

-7.7%

-9.2%

4.1%

0.2%

H1
H1
Change
FY2016 FY2015
%

EBIDTA

Net Income

Particulars

5.3%

5.3%

13.9%

10

25

180

Q2
FY16

5.7%

5.7%

14.2%

11

27

187

Q1
FY16

4.3%

4.3%

13.4%

25

185

Q2
FY15

0.9%

0.9%

0.6%

19.1%

16.1%

18.3%

-5.8%

-7.2%

1.5%

-2.6%

Change
% Y-o-Y

Figs. in INR Crs.

Financials Snapshot Income Statement H1 FY16

3
(a)
(b)
(c)
(d)

2
(a)
(b)
(c)

A
1
(a)
(b)

Equity & Liabilities

Sahreholders' Fund Share Capital
Reserves and Surplus
Sub-total - Shareholders' Fund
Non-Current Liabilities Long-term Borrowings
Deferred tax Liabilities (net)
Long-term Provisions
Sub-total - Non-Current Liabilities
Current Liabilities Short-term Borrowings
Trade Payables
Other Current Liabilities
Short-term Provisions
Sub-total - Current Liabilities
Total - Equity and Liabilities

Particulars

151.49
68.54
70.27
8.60
298.90
862.17

193.73
34.44
5.13
233.31

25.45
304.52
329.97

As at
Current Half
year-end
30/09/15
Un-Audited
B
1
25.45 (a)
296.34 (b)
321.78 (c)
`!(d)
124.42
32.53 2
4.47 (a)
161.42 (b)
(c)
114.50 (d)
60.65 (e)
75.05 (f)
10.55
260.75
743.96

As at
Previous
year-end
31/03/15
Audited

428.97
3.96
0.61
433.55
0.10
137.91
103.38
9.80
31.62
27.60
310.41
743.96

0.10
140.63
130.52
6.72
30.69
38.14
346.80
862.17
Sub-total - Current Assets
Total Assets

As at
Previous
year-end
31/03/15
Audited

508.87
4.63
1.88
515.38

As at
Current Half
year-end
30/09/15
Un-Audited

Figs. in INR Crs.

Assets
Non-Current Assets Fixed Assets
Non-Current Investments
Long-term Loans & Advances
Other non-Current Assets
Sub-total Non-Current Assets
Current Assets :
Current Investments
Inventories
Trade Receiveables
Cash and Cash equivalents
Short-term Loans & Advances
Other Current Assets

Particulars

Financials Snapshot Balance Sheet H1 FY16

Commercial production commenced at Amravati Plant. Production of new range of yarns viz.
Core Spun (Lycra), Compact, Double, Slub, etc. has started. Currently, 50% of Amravati units
production is being utilised in-house in the Denim fabric division.

Ramtek Denim facility has received Certification by GOTS (Global Organic Textile Standard) and
OCS (Organic Content Standard) for manufacture of Denim Fabric from organic cotton. Sample
product range has been approved and company has started receiving orders for Organic denim
fabrics

Fall / Winter 2016 collection has received an enthusiastic response and we are receiving
additional orders from our existing clients and well as from new customers

Over 100 new Denim fabric variants has been launched. These offerings are based on latest
trends with a combination of fashion, quality, price and sustainability

A new value-added variant Peach Denim (Velvet touch) is being launched by the company for
which the machinery has been imported from Italy and should be operational by November-end

SLCML manufactured garments are now available at leading fashion stores like Levis, Only,
LEE, Pepe, Lifesytle, Peter England, JC Penny, General Sportswear, etc.

`!

Achieved capacity utlisation of 95 % in H1 FY16 for all the capacities

Strategic Developments and Operating Highlights

 Falling crude prices and lower

Chinese demand has had negative
impact of spinning division

Indian Kharif crop estimates have

been stable at 40 mn. Bales,
almost same as last year

Original Denim Manufacturers to

worlds leading brands

Segment with high growth

potential due to increase in Denim
and Jeans demand

Latest technology and our

expertise in yarn requirements for
Denim fabric should drive quality
products and substantial demand
thereof

Garments

Fancy Yarns

Ventured in new markets of

France, Iran & South America
Augmented the sales force for
International sales and new
yarns from Amravati plant

Major brands picking Indian

manufacturers over Chinese and
neighboring countries.
Indian consumer demand has
improved and Branded garment
sales have risen

Participation in International
Trade fairs Kingpin Show
(New York), Denim Fair
(Bangladesh), Iran-Tex (Iran)

Tied-up with leading

designers from Europe & USA
for our new products

Margins should improve going

forward on Stable price outlook

Product
Development &
Marketing
Introduced New Denim fabrics
Suave, Maxco, Surento,
Peach, Mono-Chromatic and
Organic

Subdued margins in H1 due to

volatile crude prices.

`!

Polyester Yarns

Cotton

supported by selective value and volume growth mostly in higher margin segments

Companys key business divisions are well positioned for this challenges and its growth is

industry pose continuous challenge to company.

Slower growth in US and European markets along with new challenges in Fast fashion

Macro & Micro scenario & our Response

 in health, safety, sustainability and corporate governance

Continuous improvement

constant innovations and new product pipe-line for the fast fashion industry

Deliver new products from Denim fabric and Spinning divisions

focus on latest trends and value-added products for fashion conscious generation

`! fabrics and garments

Increase per unit realisation of Denim

achieve higher margins in Spinning, Garment and Power divisions

Operating efficiency

focused efforts to bring the new units utilisation levels at par with our existing
plants

Achieve 90% plus capacity utilisation at Amravati plant

Our priorities for H2 FY15-16

PURPLE AND RED

YELLOW
CONTAMINATION
DEEP AND DARK
INDIGO

ALLOYS DENIM
NEW APPLICATION
ON SURFACE
COMBINATION OF
TECHNOLOGIES
COMBINATION OF
COLORS
CROMATIC EFFECT

``!
GREY IS THE NEW
BLACK
WIDE SHADES OF GREY
MIXTURE OF GREY AND
BLUE-

Fall / Winter 2016

10

ACHROMATIC
BEST NONCOLOR EFFECT

COATED AND
OVERDYED

Bright Light Blue

SORRENTO
Bright Dark blue RED
INDIGO
Light Pure Indigo CAPRI
MAXCO Finishing
New Finishing SUAVE &
PLUSH

BLUE ALCHEMY

`!
All White ......ECRU
All blue ..... Indigos
All Black......
All Grey.......Smoke
Organic Cotton
Recycled Polyester

MONCROMATICE

Spring / Summer 2017

11

+91 40 2781 9856

cs@suryalakshmi.com

Mr. E.V.S.V. SARMA (Company Secretary)

For more information, please contact

`!

THANK YOU