FILATEX INDIA LTD - Q4 FY 20 RESULTS

FILATEX INDIA LTD

Q4 FY 20 RESULTS

MANAGEMENT :

Mr. Madhu Sudhan Bhageria, Chairman & Managing Director

Mr. Purrshottam Bhaggeria, Joint Managing Director

Mr. Madhav Bhageria, Joint Managing Director

We are one of India’s Top 5 Manufacturers of Polyester Filament yarns.

FILATX manufactures polyester and polypropylene multifilament yarn and polyester chips. We have two manufacturing facilities; one at Dadra & Nagar Haveli and second one at Dahej, equipped with state-of-the-art modern German machines

02World-Class Manufacturing Facilities

383000 Tonnes Per Annum Production Capacity (2019-2020)

05 Continents Catered

2500+TeamMember

45+Countries Global Export

EXPANSIONS :

2019 : Total Polymerization Capacity enhanced from 900 TPD to 1050 TPD through debottlenecking activity. 

Commenced production of POY expansion from 340 TPDto 510 TPD

2020 :  Commencement of DTY expansion expected in Q2FY21. 

Work towards power plant project started in Dahej.

FILATEX believes  that polyester  will  be fibre  of the future. Filatex has focused  its future  growth  plans  on polyester  filament  yarns.

95% of the growth in World Fibre Production in the last decade has come from Synthetic Fibres alone. Polyester Filaments make up 90% of Synthetic Filaments

POY means -Partially Oriented Yarns

DTY means - Draw Texturizing Yarns

FDY means - Fully Drawn Yarns

Growth Drivers

·       Hike in Import Duty

·       Import tax on more than 300 textile products doubled to 20% that will help improvement in utilization of the existing manufacturing capacity

·       This will act as a demand stimulant and encourage the domestic synthetic yarn sector by restricting the imports and providing price parity in the domestic market

·       Exports Opportunity

·       Cost competitiveness and increase in texturizing machines will open up new export opportunities for the company

·       New textile policy aims to achieve US$ 300 billion worth of textile exports by 2024-25

·       Removal of Anti-Dumping Duty on PTA

·       Removal of anti-dumping duty on raw material will allow the Indian manufacturers to compete domestically and globally in terms of price competitiveness

·       Abundant Raw Material & Skilled Manpower

·       Availability of key raw materials PTA and MEG within the country at competitive prices has improved the prospects, eliminating the uncertainties of shipments and volatility of prices as well as exchange fluctuations.

·       Availability of low cost manpower has led to India emerging as a preferred manufacturing hub

·       Scheme for Integrated Textile Parks

·       40% capital subsidy to a maximum of INR 40 crore on total project cost on projects approved by government aimed at creating world-class infrastructure for the industry

·       Recycled Yarn Industry

·       The demand for recycle polyester is increasing rapidly as leading brands in fast fashion segments are promoting sustainability in textile industry.

·       Increasing demand for recycled yarn coupled with increasing application areas of Polyester yarn is anticipated to accelerate the market growth for foreseeable years.

·       ATUFS

·       The government would provide credit linked Capital investment subsidy (CIS) under Amended Technology Upgradation Fund Scheme (ATUFS)

·       The scheme would facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in the industry

·       China Factor

·       Anti-China sentiment across the global could shift exports to India being the 2nd largest textile player

·       Rising labour costs in China

·       Product offering competitive to that of China 

·       Growth Drivers –Internal (In Crore)

·       Increase Focus on Exports :

·       With New texturizing machines coming in, exports of the company wil lincrease on account of texturized yarn, being a high-demand product both domestically as well as globally.

·       Anti-China sentiments will also help boost Indian textured yarn exports globally.

·       Value-Added Products Expansion of DTY from 200TPD to 360 TPD has been installed and will help improve overall margins of the company as it is a value-added product.

·       The company is also focused on researching and adding new filaments with niche characteristics to the product portfolio.

·       Captive Power Plant 

·       The company is setting up of 31.4 MW captive power plant (30 MW Thermal and 1.4 MW Solar). This will help reduce the power cost of the plant in Dahej and result in improving our margins by approx. 2% Capex 

·       Unfolding  

   The company has been expanding rapidly for the past 4-5 years in various streams and in FY21 it expects to capitalize on full capacity and benefit from economies of scale. Full effect of de-bottle necking

·        

·       Grand Total Production : 5,68,000 MTPA

·       Captive : 1,85,000

·       Net : 3,83,000

·        

·       QOQ

·       Revenue : Q4 FY 19 737.7 to  Q4 FY 20 667.3* (-9%)

·       * Decrease is raw material prices and production and sales loss due to COVID lockdown

·       EBIDTA (₹ in Crore) : 55.9  to 62.3  11.4% up

·       PAT : 18.6 21.0  13.2% UP

·        

·       Quarterly Production (QoQ)

·       Total Production (MTPA) : 90,102   87,432 * (-3%)

·       Total Sales (TPA) : 92,026 82,901 * (-9.9%)

·       Quarterly Results (YoY)

·       REVENUE : 705.8 667.3*   (-5.5%)

·       * Decrease is raw material prices and production and sales loss due to COVID lock down

·       EBIDTA (₹ in Crore)  :  55.1     62.3       (+12.9%)

·       PAT  :  28.1  21.0       (-33.7%)

·        

·       Annual Results 

·       REVENUE (₹ in Crore) 2874 2782 (-3.2%) *FY19 TO FY20

·       EBIDTA :  216.51 222.12 (+2.6% UP)

·       PAT : 84.9 TO 121.5 (+43.2% UP)

·       Net profit/(loss) after tax FY 20 VS FY 19 : 121.5 84.9       43.1% UP

·       Net profit/(loss) after tax Q4 FY 20 VS Q4 FY 19 :       21.0        18.6       12.9% UP

·       IMPRESSION :

·      FILATEX is making all the right moves. Its future results are likely to be much better

FILATEX INDIA LTD - ANNUAL REPORT 2017-18 - REVIEW

FILATEX INDIA LTD

ANNUAL REPORT

2017-18

·       Filatex india Limited manufactures synthetic filament yarns with wide range of products. 

·       The company was  promoted by Late Shri Ram Avtar Bhageria, Shri Madhu Sudhan Bhageria, Purrshottam Bhaggeria and Madhav Bhageria.

·       Filatex India has  2 production facilities in Dadra & nagar havelli (UT) and Dahej (Gujarat).

·       Polyester will be the fiber of the future. So, Filatex has focused its future growth plans on Polyester Filament Yarns.

·       Recent Mile Stones

·       2018

·       Commissioned bright Polymerization of 300 TPD for spinning 190 TPD of FDY, 25 TPD of POY and 85 TPD of Bright chips at Dahej, Gujarat.

Products (MTPA)                           Production

Polyester Chips – Semi dull       64,600

Polyester Chips – Bright-          31,000

Polyester POY -           Semi dull       123,700

Polyester POY –          Bright -         9,000

Polyester DTY -           Semi dull –    75,900

Polypropylene DTY-     Semi dull-     4,800

Polyester FDY -           Semi dull -    50,300

Polyester FDY –           Bright  -        81,200

Narrow Woven Fabrics -                  2,500

Grand total -                                   443,000

CAPTIVE :                                       114,700

NET  :                                             328,300

%AGE   :                                          100.0%

·       EXPORTING TO 34 COUNTRIES ACROSS GLOBE

·       OVER 50% OF DTY PRODUCTION IS EXPORTED

·       EXPORTS ARE >20% OF REVENUES IN FY 18

·       CAPACITY INCREASED OVER THE YEARS FROM 500 MTPA TO 328300 MTPA

·       FINANCIAL PERFORMANCE IN 2018

·       REVENUE :1928 CR up 24% YoY

·       EBITDA   : 157 CR ; Up 18% YoY

·       PBT        : 93 Cr

·       PAT : 60 Cr – up 47% YoY

·       IN 2018 – EXPORTS AMOUNTED TO 379 CR

·       achieved major certifications like ISO  9001 : 2015, ISO 14001 : 2004, BS OHSAS 18001 : 2007 and OEKO  TEX – Standard  100.

·       IN Q1 FY 19, NET SALES WERE RS.704 CR AGAINST 430 CR IN Q1 FY 18 UP64%YOY AND 22% QOQ

·       IN Q1, NET PROFIT WAS 20 CR AGAINST 14 CR IN Q1 FY 18 A GROWTH OF 41% YOY AND 15% QOQ

·       EPS IS 0.91

·       MP :47

·       52 W L IS RS.30 HIGH WAS 59

·       VOLUME 140000

·       FV RS.2

·       YB MP :39 ; +21%

Annual Report for  FY  2017-18. 

Over the years, Dadra has grown to a capacity 130 tonnes per day, producing a wide range of products like Partially oriented Yarn (PoY),draw Texturized Yarn (dTY), and coloured yarns.

The new plant located at Dahej, Gujarat, is a CP unit of 600 TPD  and POY  of 260 TPD.  

At present the capacity has increased to 328300 TPA . Company has created its footprints in uncharted path  in 34 countries for  exporting its products.

Future Prospects

Company has spotted some debottlenecking opportunities in the plant which will help it increase polymerization capacity from 900 TPD  to 1050 TPD . More polymer availability would also create an opportunity to dovetail more of value added products.  

Taking necessary steps to augment the debottlenecked capacity by this year end and it plans to add more POY  and DTY  capacity, which will be commissioned in FY20.

It has dependable suppliers, supportive bankers and reliable customers. 

Basically, Filatex now has become one  STOP shop, catering to wide range of domestic and international customers.

The  product  basket  at  Dahej  facility,  at  present,  offers  Partially  Oriented  Yarn  (POY),  Fully  Drawn  Yarn  (FDY),  Drawn  Textured  Yarn  (DTY)  &  Chips  in  Semi  Dull  range.  

·       RISKS :

·       Exposed to the risk of price fluctuation of raw and hedging activities materials as well as finished goods. The Company proactively manages

·       these risks through forward booking Inventory management and proactive vendor development practices. 

·       Company’s reputation for quality, products differentiation coupled with existence of powerful brand image with robust marketing network mitigates the impact of price risk on finished goods.

·       Company takes forward cover in respect of its major foreign currency exposure such as for imports, repayment of borrowings & interest thereon Denominated in foreign currency and export receivables

·       At global level, of 100 million tons, manmade fibers had a share of 68% and all natural fibers including cotton have the balance of 32%. There is no second thought that polyester has gradually become the common man’s fiber.

·       The operations of company’s Noida (UP) plant were closed w.e.f. 17th November, 2017 .

·       GROWTH PLAN

·       Company’s recent expansion of adding a stream of Bright polymer is completed. Commercial production of Bright POY/ FDY & Chips was started from 7th March, 2018.The facilities at Dadra plant are being utilized to produce all types of colour yarns, customized to its customer needs.

·         CHALLENGES AND THREATS

·       i) Adverse volatility in raw material prices can affect the performance.

·       ii) Uncertain availability of PTA from domestic suppliers on account of their unforeseen breakdowns can reduce capacity utilization at times.

·       iii) Low bargaining power against large suppliers of key raw materials.

·       iv) High price of PTA in domestic market on account of anti dumping duty.

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