20
PERFORMANCE REPORT Quarter Ended 30 June 2014 INNOVATIVE TEXTILE SOLUTIONS
PERFORMANCE REPORT
Quarter Ended
30 June 2014
Peninsula Business Park,Tower B , 2nd & 3rd Floor ,G.K.Marg,
Lower Parel, Mumbai - 400 013Tel No. +91 61787000 Fax: +91-22 61787118
Email - [email protected] us at: www.alokind.com
INNOVATIVE TEXTILE SOLUTIONS
OUR VISION
To be the world’s best integrated textile enterprise, driven by research &
innovation, with a leadership position across products & markets, while
exceeding customer & stakeholder expectations
The barometer of our success would be the ROCE
OUR MISSION
We will:
• Be a knowledge leader & an innovator in our businesses
• Maximise people development initiatives
• Optimise use of all resources
• Become a process driven organisation
• Exceed compliance and global quality standards
• Actively explore potential market & products
• Offer innovative, customised and value-added services to our customers
• Be an ethical, transparent and responsible global organisation
OUR VALUES• Customer Satisfaction
• Passionate About Excellence
• Develop Human Capital
• Fair To All
• Concern For The
Environment And
• The Community
• Safety And Health
• Responsible Corporate Citizen
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
1Innovative Textile Solutions
PERFORMANCE HIGHLIGHTS
BUSINESS HIGHLIGHTS: FOR THE QUARTER ENDED 30 JUNE 2014
� Net Income from Operations of Rs.3,734.90 crore
� An increase of 24.7% over corresponding quarter of 2012-13
� Domestic Sales of Rs.3,111.75 crore
� Operating EBIDTA of Rs. 828.19 crore
� Increased by 0.45% over previous quarter ended 31 March 2014 (Rs.824.41 crore)
� Decreased by (-15.87%) compared to quarter ended 30 June 2013 (Rs.984.35 crore)
� PBT at Rs.66.64 crore
� Increased by 33.65% compared to quarter ended 30 June 2013 (Rs.49.86 crore)
� PAT of Rs.43.48 crore
� Increased by 32.12% compared to corresponding quarter of 2012-13 (Rs.32.91 crore)
BUSINESS HIGHLIGHTS: FOR NINE MONTHS ENDED 30 JUNE 2014
� Net Income from Operations of Rs.11,324.92 crore
� Increased by 8.58% compared to nine months of October 2012 – June 2013 (Rs.10.429.56 crore)
� Operating EBIDTA of Rs.2,466.34 crore
� Decreased by (-16.6%) from Rs.2,957.26 crore during October 2012 – June 2013
� PBT at Rs.412.40 crore
� Down by (-46.13%) compared to corresponding period last year (Rs.765.65 crore)
� PAT of Rs.272.42 crore
2 Performance Report March 31, 2014
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2014
PART ISTATEMENT OF STANDALONE RESULTS FOR THE QUARTER AND NINE MONTH ENDED 30 JUNE 2014
(` Crore)
PARTICULARS
Quarter Ended Period Ended
30.06.2014[3 Months]
(unaudited)
31.03.2014[3 Months]
(unaudited)
30.06.2013[3 Months]
(unaudited)
30.06.2014[9 Months]
(unaudited)*
30.06.2013[15 Months](unaudited)*
30.09.2013[18 Months](Audited)*
1 Income from Operations *see note 4 below a) Net Sales / Income from
operations (Net of excise duty)
3,725.26 3,877.81 2,980.35 11,289.27 16,125.10 19,853.76
b) Other Operating Income 9.64 11.97 14.83 35.65 51.98 63.99
Total Income from Operations (net)
3,734.90 3,889.78 2,995.18 11,324.92 16,177.08 19,917.75
2 Expenses
a) Cost of material consumed 2,238.14 2,190.83 1,976.90 7,534.14 10,492.26 13,908.87
b) Changes in inventories of �inished goods, work-in-progress
325.95 440.81 (341.09) (27.70) (1,341.36) (2,509.15)
c) Employees bene�it expenses 72.71 77.46 76.41 224.65 366.72 434.68
d) Depreciation and Amortisation expense
244.29 235.08 236.05 728.58 1,115.86 1,360.77
e) Other expenditure 277.18 382.27 308.55 1,179.70 2,101.29 2,658.44
Total Expenses 3,158.27 3,326.45 2,256.82 9,639.37 12,734.77 15,853.61
3 Pro�it from operations before other income, �inance costs and exceptional items
576.63 563.33 738.36 1,685.55 3,442.31 4,064.14
4 Other Income 7.27 26.00 9.94 52.21 47.14 60.16
5 Pro�it from ordinary activitiesbefore �inance costs and exceptional items
583.90 589.33 748.30 1,737.76 3,489.45 4,124.30
6 Finance Costs 517.26 458.17 415.33 1,417.66 1,842.68 2,260.66
7 Pro�it from ordinary activities after �inance costs but before exceptional items
66.64 131.16 332.97 320.10 1,646.77 1,863.64
8 Exceptional Items (refer note no. 2)
- (65.69) 283.11 (92.30) 389.17 463.74
9 Pro�it from ordinary activitiesbefore tax
66.64 196.85 49.86 412.40 1,257.60 1,399.90
10 Tax expenses 23.16 66.20 16.95 139.98 434.42 479.74
11 Net Pro�it 43.48 130.65 32.91 272.42 823.18 920.16
12 Paid up Equity Share Capital (Face Value Rs.10/- per equity share)
1,377.13 1,377.13 1,377.13 1,377.13 1,377.13 1,377.13
13 Reserves excluding revaluation reserves (As per Balance sheet of previous accounting year)
3,710.99
14 Earnings per share (Rs.) : of Rs. 10 each
Basic 0.32* 0.95* 0.28* 1.98* 9.21* 9.43*
Diluted 0.32* 0.95* 0.28* 1.98* 9.21* 9.43*
* - Not annualised
See accompanying notes to the �inancial results
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
3Innovative Textile Solutions
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2014
PART IISELECT INFORMATION FOR THE QUARTER AND NINE MONTHS ENDED 30 JUNE 2014
(` Crore)
PARTICULARS
Quarter Ended Period Ended
30.06.2014[3 Months]
31.03.2014[3 Months]
30.06.2013[3 Months]
30.06.2014[9 Months]
30.06.2013[15 Months]
30.09.2013(18 Months]
A PARTICULARS OF SHAREHOLDING
1 Public Shareholding
- Number of shares 83,74,57,064 84,31,22,015 87,52,64,777 83,74,57,064 87,52,64,777 85,08,41,970
-Percentage of shareholding 60.81% 61.22% 63.56% 60.81% 63.56% 61.78%
2 Promoters and Promoter Group Share Holding
a) Pledged/Encumbered
- Number of Shares 53,82,01,893 53,11,05,441 44,52,27,999 53,82,01,893 44,52,27,999 51,96,62,724
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
99.73% 99.46% 88.72% 99.73% 88.72% 98.74%
-Percentage of Shares (as a % of the total share capital of the Company)
39.08% 38.57% 32.33% 39.08% 32.33% 37.74%
b) Non- encumbered
- Number of Shares 14,56,638 28,88,139 5,66,22,819 14,56,638 5,66,22,819 66,10,901
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group
0.27% 0.54% 11.28% 0.27% 11.28% 1.26%
-Percentage of Shares (as a % of the total share capital of the Company)
0.11% 0.21% 4.11% 0.11% 4.11% 0.48%
B INVESTOR COMPLAINTS
Pending at the beginning of the quarter
5
Received during the quarter65
Disposed off during the quarter63
Remaining unresolved at the end of the quarter
7
4 Performance Report March 31, 2014
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2014
NOTES:
1 The above �inancial results of the Company for the quarter and nine months ended 30 June 2014, reviewed and recommended by the Audit Committee, were approved by the Board of Directors of the Company at its meeting held on 14 August 2014 and have been reviewed by the Statutory Auditors
2 Exceptional items comprises of :
(` Crore)
QUARTER ENDED PERIOD ENDED30.06.2014[3 Months](Reviewed)
31.03.2014[3 Months](Reviewed)
30.06.2013[3 Months](Reviewed)
30.06.2014[9 Months](Reviewed)
30.06.2013[15 Months](Reviewed)
30.09.2013[18 Months]
(Audited)Exchange �luctuation (see a below)
- (65.69) 280.99 (92.30) 243.91 317.39
Provision for diminution / impairment (see b below)
- - 2.12 - 145.26 146.35
Total - (65.69) 283.11 (92.30) 389.17 463.74 a Unrealised exchange �luctuation on foreign currency assets/liability & derivative considering the volatility of Indian rupees
against US dollar.
b Provision for diminution in value of investment in / loans to subsidiaries in the retail business and loss on transfer of such investments.
3 Considering the high level of international operations and present internal �inancial reporting, the Company has identi�ied geographical segment as its primary segment and business segment as its secondary segment. The company is operating in a single business segment i.e. Textile and as such all business activities revolve around the segment. The geographical segment consists of domestic sales and export sales. Revenue directly attributable to segments is accordingly reported. Since the resources/services/assets are used interchangeably within these segments, it is not practical to allocate segment expenses, assets (except debtors) or liabilities contracted, to these segments. Accordingly, no disclosure relating to the same is made.
PARTICULARS
QUARTER ENDED PERIOD ENDED30.06.2014[3 Months](Reviewed)
31.03.2014[3 Months](Reviewed)
30.06.2013[3 Months](Reviewed)
30.06.2014[9 Months](Reviewed)
30.06.2013[15 Months](Reviewed)
30.09.2013[18 Months]
(Audited)SEGMENT REVENUE Domestic 3,111.75 3,146.64 2,269.60 8,972.46 12,150.11 14,808.84
International 623.15 743.14 725.58 2,352.46 4,026.97 5,108.91
3,734.90 3,889.78 2,995.18 11,324.92 16,177.08 19,917.75 SUNDRY DEBTORSDomestic 7,115.17 6,194.73 6,215.79 7,115.17 6,215.79 4,739.09
International 228.45 216.36 248.73 228.44 248.73 286.87
7,343.62 6,411.09 6,464.52 7,343.62 6,464.52 5,025.96 4 The previous �inancial year of the Company was for a period of 18 months from 1 April 2012 to 30 September 2013. Figures
for the period ended 30 June 2013 have been given to comply with the clause 41 requirement to provide “Year to Date (YTD) �igures for the previous year” and are for a period of 15 months from 1 April 2012 to 30 June 2013. Hence, such �igures are not comparable with the �igures for the quarter and YTD upto June 2014, which are for a period of 9 months from 1 October 2013 to 30 June 2014.
5 The �igures of previous periods/ year have been reclassi�ied / regrouped wherever necessary to correspond with those of the current period.
By order of the BoardFor ALOK INDUSTRIES LIMITED
Sd/-
DILIP B. JIWRAJKAManaging Director
Place: Mumbai Date: 14 Aug 2014
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
5Innovative Textile Solutions
CAPACITIES Divisions Units Capacities p.a.
SPINNING Tons 80,000
HOME TEXTILES
Sheeting Fabric mn mtrs 150
Terry Towels Tons 13,400
APPAREL FABRIC
Woven Fabric mn mtrs 186
Knits Tons 25,000
GARMENTS mn pcs 22
POLYESTER
Continuous Polymerisation Tons 5,20,000
POY/Chips Tons 1,00,000
DTY Tons 2,40,000
FDY Tons 70,000
Polyester staple �ibre / Cationic Yarn Tons 1,10,000
BOARD OF DIRECTORS
Sr. No. Name Designation
1 Mr. Ashok B. Jiwrajka Executive Chairman
2 Mr. Dilip B. Jiwrajka Managing Director
3 Mr. Surendra B. Jiwrajka Jt. Managing Director
4 Mr. Ashok G. Rajani Independent Director
5 Mrs. Lalita Sharma Director – IDBI Nominee
6 Mrs. Thankom T. Mathew Director – LIC Nominee
7 Mr. Samuel Joseph Director- Exim Bank Nominee
8 Mr. Timothy Ingram Independent Director
9 Mr. Sudhir Garg Director – IFCI Nominee
10 Mr. K.H. Gopal Executive Director & Secretary
11 Mr. Sunil O. Khandelwal Executive Director & CFO
CAPACITIES & BOARD OF DIRECTORS
6 Performance Report March 31, 2014
Total Sales Q3
30 June 2013
2,995.184,5004,0003,5003,0002,5002,0001,5001,000
3,734.90
30 June 2014
Export Sales Q3
30 June 2013
725.58623.15
30 June 2014
800700600500400300200100
Operating EBIDTA Q3
30 June 2013
984.35828.19
30 June 2014
1,200
1,000
800
600
400
200
0
PAT Q3
30 June 2013
43.48
30 June 2014
50
40
30
20
10
32.91
STANDALONE PROFIT AND LOSS: THIRD QUARTER(` Crore)
PROFIT & LOSS ACCOUNT
QUARTER / ENDED30 JUNE 2014
QUARTER / ENDED30 JUNE 2013
% Change
% to Sales % to Sales
Domestic Sales 3,111.75
2,269.60
37.11%
Export Sales 623.15 725.58 (14.12%)
Net Sales 3,734.90 2,995.18 24.70%
Other Income 7.27 9.94 (26.86%)
TOTAL INCOME 3,742.17 3,005.12 24.53%
Material Costs 2,564.09 68.65% 1,635.81 54.61% 56.75%
People Costs 72.71 1.95% 76.41 2.55% (4.84%)
Other Expenses 277.18 7.42% 308.55 10.30% (10.17%)
OPERATING EBIDTA 828.19 22.17% 984.35 32.86% (15.87%)
Depreciation 244.29 6.54% 236.05 7.88% 3.49%
OPERATING EBIT 583.90 15.63% 748.30 24.98% (21.97%)
Interest & Finance Costs 517.26 13.85% 415.33 13.87% 24.54%
OPERATING PBT 66.64 1.78% 332.97 11.12% (79.99%)
Exceptional Items - 283.11 -
PROFIT BEFORE TAX 66.64 1.78% 49.86 1.66% 33.65%
Less: Provision for Taxes 23.16 0.62% 16.95 0.57% 36.64%
PROFIT AFTER TAX 43.48 1.16% 32.91 1.10% 32.12%
FINANCIALS AT A GLANCE
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
7Innovative Textile Solutions
FINANCIALS AT A GLANCE
Total Sales YTD Q3
30 June 2013(15 months)
16,177.0820,000
15,000
10,000
5,000
0
11,324.92
30 June 2014(9 month)
Export Sales YTD Q3
30 June 2013
4,026.97
2,352.46
30 June 2014
5,000
4,000
3,000
2,000
1,000
0
(15 months) (9 month)
Operating EBIDTA YTD Q3
30 June 2013
4,605.31
2,466.34
30 June 2014
5,000
4,000
3,000
2,000
1,000
0
(15 months) (9 month)
Operating PAT YTD Q3
30 June 2013
823.18
272.42
30 June 2014
1,000
800
600
400
200
0
(15 months) (9 month)
STANDALONE PROFIT AND LOSS: NINE MONTHS(` Crore)
PROFIT & LOSS ACCOUNT
9 Month/ENDED30 JUNE 2014
15 Month/ENDED30 JUNE 2013
% to Sales % to Sales
Domestic Sales 8,972.46
12,150.11
Export Sales 2,352.46 4,026.97
Net Sales 11,324.92 16,177.08
Other Income 52.21 47.14
TOTAL INCOME 11,377.13 16,224.22
Material Costs 7,506.44 66.28% 9,150.90 56.57%
People Costs 224.65 1.98% 366.72 2.27%
Other Expenses 1,179.70 10.42% 2,101.29 12.99%
OPERATING EBIDTA 2,466.34 21.78% 4,605.31 28.47%
Depreciation 728.58 6.43% 1,115.86 6.90%
OPERATING EBIT 1,737.76 15.34% 3,489.45 21.57%
Interest & Finance Costs 1,417.66 12.52% 1,842.68 11.39%
OPERATING PBT 320.10 2.83% 1,646.77 10.18%
Exceptional Items (92.30) 389.17
PROFIT BEFORE TAX 412.40 1,257.60
Less: Provision for Taxes 139.98 1.24% 434.42 2.69%
PROFIT AFTER TAX 272.42 2.41% 823.18 5.09%
8 Performance Report March 31, 2014
SUMMARY BALANCE SHEET(` Crore)
BALANCE SHEETAS ON
30 JUNE 2014AS ON
30 SEP 2013
TANGIBLE NET WORTH 5,360.54 5,088.12
TOTAL LONG TERM BORROWINGS 8337.19 9,085.47
Deferred Tax Liability 764.31 664.14
LONG�TERM PROVISIONS 112.32 194.35
TOTAL SHORT TERM BORROWINGS 5375.27 4,640.71
CURRENT LIABILITIES 6,197.00 5,058.90
TOTAL 26,146.63 24,731.69NET FIXED ASSETS 9,070.64 9,738.56
NON-CURRENT INVESTMENTS 129.15 129.15
Long-term Loans & Advances 1,612.99 1,637.35
CURRENT ASSETS 15,333.86 13,226.63
TOTAL 26,146.63 24,731.69
SUMMARY CASH FLOW(` Crore)
PARTICULARS9M 18M
30 June 2014 30 SEPT 2013NET CASH GENERATED FROM OPERATING ACTIVITIES 184.45 (351.85)
NET CASH USED IN INVESTING ACTIVITIES (79.08) (725.18)
NET CASH GENERATED FROM FINANCING ACTIVITIES (802.89) 1,264.46
NET FLOW (697.52) 187.43 CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD 729.14 541.71
AT THE END OF THE PERIOD 31.62 729.14
NET INCREASE IN CASH AND CASH EQUIVALENTS (697.52) 187.43
KEY RATIOS
Particulars 30-Jun-14(9 Months) (Reviewed)
31-Mar-14(6 Months) (Reviewed)
31- Dec-2013(3 Months)
(Audited)
Pro�itability Ratios
EBITDA (%) 21.78% 21.58% 21.99%
Pro�it Before Tax Margin (%) 2.83% 3.34% 3.31%
Pro�it After Tax Margin (%) 2.41% 3.02% 2.66%
Balance Sheet Ratios
Net Total Debt - Equity 3.00 2.98 3.07
Net Total Debt / EBITDA 4.89 4.83 4.90
Current Ratio 1.45 1.47 1.93
Coverage Ratios
PBDIT/Interest 1.74 1.82 1.84
Working Capital Days
Debtors Turnover Days 177 154 122
Inventory Turnover Days 137 144 163
Gross Working Capital Days 314 298 285
Less: Creditors Turnover Days 43 27 31
Net working capital Days 271 271 254
FINANCIAL POSITION
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
9Innovative Textile Solutions
EQUITY INFORMATION
Particulars BSE NSEEquity as on 31 March 2014 1377115595 1377115595
Closing Price as on 3o June 2014 14.24 14.25
12-Month High Rs. 14.24 Rs. 14.25
12-Month Low Rs.5.80 Rs.5.75
Market Capitalisation as on 31 March 2014 (Rs. In Crores) 1961.10 1962.39
SHAREHOLDING PATTERNSHAREHOLDER ENTITIES CURRENT QUARTER PREVIOUS QUARTERPromoters 39.19% 38.78%Banks, Mutual Funds And FIs 9.00% 9.27%FIIs, NRIs And OCB 5.11% 5.42%Other Corporate Bodies and Public 46.70% 46.53%
Total 100.00% 100.00%99.73% of the promoters’ holding have been pledged with FIIs, MFs and other lenders as part of loan conditions. This represents a sum total of 538201893 Shares (39.08% of the total equity of the Company)
TOP PUBLIC SHARE HOLDERS AS AT 30 JUNE 2014 Sr. No Name of the Shareholders Shares Percentage %
1 Promoters 539658531 39.192 Arum Investments Private Limited 40757118 2.963 Axis Bank Limited 35467092 2.584 Life Insurance Corporation of India 35164136 2.555 IFCI Limited 18760723 1.366 IDBI Bank Limited 17888161 1.307 MV SCIF Mauritius 14548576 1.068 Dimensional Emerging Markets Value Fund 10204534 0.749 IL&FS Trust Company Limited A/c IL&FS Private Equity Trust -Leverage India Fund 9955642 0.72
10 Alok Tandon 6306772 0.46
11Emerging Markets Core Equity Portfolio (The Portfolio) of DFA Investment Dimension Group Inc (DFAIDG)
5583532 0.41
Sub-total 734294817 53.33Other Shareholders 642820778 46.67Total 1377115595 100.00
SHARE PRICE AND VOLUMES
MonthBSE (In Rs. per share) NSE (In Rs. Per share)
High Low Volume High Low VolumeJun-13 8.25 6.65 5,73,26,120 8.20 6.70 167134247
Jul-13 7.31 6.05 4,22,13,976 7.35 6.00 158844618
Aug-13 7.34 5.87 2,57,07,605 7.35 5.85 99881012
Sep-13 8.25 6.17 1,92,47,855 8.25 6.15 52813494
Oct-13 8.50 7.81 1,39,04,421 8.50 7.50 50545435
Nov-13 8.45 7.45 1,96,11,086 8.45 7.45 60660242
Dec-13 9.39 7.26 1,74,63,011 9.15 7.25 68756813
Jan-14 8.90 6.70 1,32,94,730 8.90 6.65 53715173
Feb-14 7.10 6.35 66,30,899 7.10 6.35 34853139
Mar-14 7.29 5.80 3,34,64,507 7.30 5.75 68269722
Apr-14 8.36 6.48 2,31,08,768 8.30 6.50 84175639
May-14 11.50 6.80 9,82,46,872 11.55 6.75 334395227
Jun-14 16.32 9.82 23,06,16,681 16.30 9.75 989188600
SHARE PERFORMANCE VIS-A-VIS STOCK MARKET INDICES
Note: Share prices and indices indexed to 100 as on 1 October 2013
CAPITAL INFORMATION
10 Performance Report March 31, 2014
(` Crore)PARTICULARS 30-Jun-14
(9 Months) (Reviewed
30-Sep-13(18 Months)
(Audited )
31-Mar-12 (12 Months)
(Audited )
31-Mar-11 (12 Months)
(Audited)Operating Pro�its Net Sales 11324.92 19917.75 8,900.86 6,388.43
(Export Sales) 2352.45 5108.91 (3,029.55) (2,217.43)
EBITDA 2466.33 5485.07 2,624.75 1,879.70
Depreciation & Misc. Exp. W/off 728.58 1360.77 713.43 518.79
PBIT 1737.76 4124.30 1,911.32 1,360.91
Interest 1417.66 2260.66 1,149.55 736.27
PBT (operating) 320.09 1863.64 761.77 624.64
Exceptional Items (92.30) 463.74 121.27 41.45
PAT 272.41 920.16 380.53 404.36
Cash Pro�it 1072.62 2896.88 1,334.19 1,083.98
Dividend - 48.34 28.81 22.97
Net Cash Accruals 1072.62 2848.54 1,305.38 1,061.01
Financial Position Gross Fixed Assets 13526.18 13469.91 11,840.67 9,920.88
Net Fixed Assets 9070.64 9738.56 9,466.25 8,333.76
Current Assets 16946.85 14863.98 8,596.31 5,793.77
Foreign Currency Translation A/c - - - -
Investments 129.15 129.15 175.79 139.93
Total Assets 26146.63 24731.69 18,238.36 14,267.46Equity Share Capital 1377.13 1377.13 826.28 787.79
Reserves & Surplus 3983.41 3710.99 2,829.22 2,309.81
Share Application Money & Share Warrants - - - -
Tangible Net worth 5360.54 5088.12 3,655.50 3,097.60Deferred tax liability 764.31 664.14 626.77 507.66
Total Long Term Borrowings 8337.19 9085.47 7,013.06 6,051.40
Total Short Term Borrowings 7966.82 7024.84 5,759.16 3,767.80
Total Current Liabilities 3717.77 2869.12 1,183.87 843.00
Total Liabilities 26146.63 24731.69 18,238.36 14,267.46 EPS (* Not Annualised) 1.98 9.43* 4.69 5.13
Book Value 38.93 36.95 44.24 39.32
KEY RATIOSPARTICULARS 30-Jun-14
(9 Months) (Reviewed
30-Sep-13(18 Months)
(Audited)
2011-12 (12 Months)
(Audited)
2010-11 (12 Months)
(Audited)Pro�itability RatiosEBITDA (%) 21.78 27.54% 29.49% 29.42%
Pro�it Before Tax Margin (%) 2.83 9.36% 8.56% 9.78%
Pro�it After Tax Margin (%) 2.41 4.62% 4.28% 6.33%
Return on Capital Employed (%) 10.80 13.53% 12.63% 11.72%
Return on Net worth (%) 6.78 12.06% 13.88% 13.05%
Balance Sheet RatiosNet Total Debt - Equity 3.00 2.99 3.14 2.75
Net Total Debt / EBITDA 4.89 4.16 4.37 4.53
Current Ratio 1.45 1.50 1.24 1.26
Coverage RatiosPBDIT/Interest 1.74 2.43 2.28 2.55
Net Fixed Assets/Secured Loans (1st Charge holders) *1.64 1.43 2.31 2.58
Net Working Capital Turnover daysDebtors Turnover - Days 177 138 88 99
Inventory Turnover - Days 137 158 139 114
Gross Working Capital Turnover - Days 314 296 227 213
Less : Creditors Turnover - Days 43 26 21 36
Net Working Capital Turnover - Days 280 270 206 177
* Based on market value of Assets
FINANCIAL HIGHLIGHTS FOR LAST 10 YEARS
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
11Innovative Textile Solutions
FINANCIAL HIGHLIGHTS FOR LAST 10 YEARS
(` Crore)31-Mar-10
(12 Months) (Audited)
31-Mar-09 (12 Months)
(Audited)
31-Mar-08 (12 Months)
(Audited)
31-Mar-07 (12 Months)
(Audited)
31-Mar-06 (12 Months)
(Audited)
31-Mar-05 (12 Months)
(Audited)
31-Mar-04 (12 Months)
(Audited)
4,311.17 2,976.93 2,170.41 1,824.68 1,420.70 1,224.50 1,068.85
(1,558.99) (1,054.50) (1,036.89) (641.71) (394.55) (306.53) (111.48)
1,272.48 822.61 547.75 410.96 301.26 244.53 198.40
362.61 233.50 161.96 123.04 80.48 57.56 38.28
909.87 589.11 385.79 287.92 220.78 186.97 158.97
535.08 304.12 131.83 89.04 66.78 63.68 66.40
374.80 284.99 253.96 198.88 154.00 123.29 92.57
- - - - - - -
247.34 188.37 167.73 135.18 109.21 89.25 71.08
711.89 513.98 393.14 302.50 189.69 146.81 110.51
22.97 17.28 26.28 28.75 30.20 27.92 11.65
688.93 496.70 366.86 273.75 159.49 118.89 98.86
8,215.61 6,692.71 4,368.05 2,954.20 2,121.89 1,047.57 690.84
7,145.11 5,983.86 3,891.30 2,583.80 1,874.24 879.27 579.53
4,801.88 2,685.93 3,377.53 1,992.66 1,403.87 1,359.21 846.68
0.17 11.20 - - - - -
229.69 478.58 618.96 219.49 39.70 7.85 4.07
12,176.85 9,159.57 7,887.79 4,795.95 3,317.81 2,246.33 1,430.28 787.79 196.97 187.17 170.37 157.47 134.02 88.23
1,928.40 1,410.39 1,134.01 854.07 650.06 460.73 218.00
- 147.70 - - - 3.32 21.42
2,716.19 1,755.06 1,431.34 1,024.44 807.53 598.07 327.65406.98 307.97 210.48 141.82 100.10 75.10 50.52
6,436.71 5,120.53 3,904.81 2,258.48 1,742.08 925.85 475.12
2,072.97 1,475.82 1,862.50 1,078.28 470.42 477.39 426.97
544.00 500.19 478.66 292.93 197.68 169.92 150.02
12,176.85 9,159.58 7,887.79 4,795.95 3,317.81 2,246.33 1,430.28 4.57 9.64 11.40 9.70 6.68 7.25 7.90
34.48 89.10 76.47 60.13 51.28 44.63 37.14
2009-10 (12 Months)
(Audited)
2008-09 (12 Months)
(Audited)
2007-08 (12 Months)
(Audited)
2006-07 (12 Months)
(Audited)
2005-06 (12 Months)
(Audited)
2004-05 (12 Months)
(Audited)
2003-04 (12 Months)
(Audited)
29.52% 27.63% 25.24% 22.52% 21.21% 19.97% 18.56%
8.69% 9.57% 11.70% 10.90% 13.19% 12.80% 11.79%
5.74% 6.33% 7.73% 7.41% 9.78% 9.71% 9.43%
9.25% 7.36% 6.98% 8.05% 10.22% 14.65% 17.94%
9.11% 10.73% 11.72% 13.11% 16.13% 18.28% 30.22%
2.62 3.56 2.86 2.49 2.08 1.52 2.27
5.59 7.60 7.47 6.21 5.57 3.71 3.75
1.53 1.22 1.33 1.32 1.82 1.92 1.34
2.38 2.70 4.15 4.62 4.51 3.84 2.99
2.27 1.89 1.73 1.46 1.56 1.44 1.56
93 108 102 109 91 120 149
125 116 116 93 92 108 70
218 224 218 202 183 228 219
32 45 67 46 40 41 43
186 179 151 156 143 187 176
12 Performance Report March 31, 2014
ECONOMIC OVERVIEW
THE GLOBAL ECONOMY
The global growth projection for 2014 has been marked down by 0.3 percent to 3.4 percent, re�lecting both the legacy of the weak �irst quarter, particularly in the United States, and a less optimistic outlook for several emerging markets. With somewhat stronger growth expected in some advanced economies next year, the global growth projection for 2015 remains at 4 percent. Global growth is expected to rebound from the second quarter of 2014, as some of the drivers underlying �irst quarter weakness, such as the inventory correction in the United States, should have only temporary effects, and others should be offset by policies, including in China. But the �irst-quarter setback will only be partially offset. Downside risks remain a concern. Increased geopolitical risks could lead to sharply higher oil prices. Financial market risks include higher-than-expected U.S. long-term rates and a reversal of recent risk spread and volatility compression. Global growth could be weaker for longer, given the lack of robust momentum in advanced economies despite very low interest rates and the easing of other brakes to the recovery. In some major emerging market economies, the negative growth effects of supply-side constraints and the tightening of �inancial conditions over the past year could be more protracted. In many advanced and emerging market economies, structural reforms are urgently needed to close infrastructure gaps, strengthen productivity, and lift potential growth.
Sources: IMF, WEO Projections
INDIA
The Reserve Bank of India (RBI) presented its bi-monthly policy review on 5 August 2014. The salient points were:
• Estimates GDP growth at 5.5% for current �iscal
• Targets 8% CPI in�lation by January 2015, 6% by Jan 2016
• Govt policies to improve domestic demand, supply conditions
• Higher oil prices, pass-through of administered price increases pose upside risks to in�lation
• Monsoons still a concern, posing risks to in�lation
• Govt. action on food management and fast-tracking project completion to improve supply
• Banking sector reforms will continue
• Short-term lending (repo) rate unchanged at 8%; Cash reserve ratio (CRR) unchanged at 4%; SLR cut by 0.50% to 22% to unlock banking funds; Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%
Industrial production (IIP) in India reduced to just 3.4% in June due to a massive contraction in consumer goods, while the May factory data has been revised higher to 5 percent from 4.7 percent earlier. Capital goods posted a growth of 23% while electricity posted a growth of 15.7% against 6.3% (month on month). Manufacturing grew 1.8 percent while consumer durables contracted 23.4% against 3.2% (MoM). Consumer goods overall have seen a contraction of 10%on a year on year basis.
Sources: MOSPI (Govt of India) and RBI
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
13Innovative Textile Solutions
INDUSTRY OVERVIEW
THE TEXTILE INDUSTRY
Global Textile MarketGlobal textile and apparel trade recovered in 2013 and is expected to continue growth momentum in 2014. Trade is expected to further grow @ 6% for next 7 years and reach approximately US$1180 bn by 2020. Apparel continues to be the largest traded category even though there has been high trade growth in �ibre and yarn in recent times.
Source: UN Comtrade & Wisedge Analysis
US Import ScenarioUS apparel imports increased by 4% in 2013 compared to 2012 and this growth momentum has been sustained in 2014 as well. As of May 2014 the YE (year ending may 2014) growth of US imports from the world was 3%. Maximum Imports have grown from Vietnam at 16% growth followed by India at 8% growth and Bangladesh at 6% growth.
Following table illustrates that even though China is the largest import partner for US, Vietnam and India are growing much faster. US buyers are looking to diversify from China due to increasing costs. They are also looking to diversify from Bangladesh in recent times due to social compliance issues. Hence, going forward the opportunity for India and Vietnam will further increase.
Countries US apparel imports (US$ bn) YE May 2014 Growth over previous year
World 80 3%
Vietnam 8.6 16%
India 3.3 8%
Bangladesh 4.9 5%
China 29.7 1%
14 Performance Report March 31, 2014
INDUSTRY OVERVIEW
India Textile and Apparel Exports
India’s textile and apparel exports grew by a large 21% in 2013 compared to 2012. Going forward, India’s textile & apparel exports are expected to grow @ 9.3% CAGR for next 7 years and almost double by 2020. India has also emerged as the second largest exporter of textile & apparel in the world in 2013, with 5% share of global textile and apparel trade.
India Exports to US
India’s overall textile and apparel exports to US have grown in 2013 at the rate 7% compared to 2012. India exported toUS textile and apparel worth US$ 6.5bn as of YE May 2014 growing at 8% from YE May2013. India’s apparel exports have also grown at 8% as of YE May 2014.
Price Trends
Raw material prices have shown mixed trend in the last one year YE June 2014. While raw cotton and PC yarn prices have increased by 6% and 3% respectively, cotton yarn, PV yarn and PSF prices have decreased by 3%, 5% and 2% respectively. Going forward raw material prices are expected to settle down.
Government Support
Ministry of Textile has contributed signi�icantly to the growth of the textile industry through various schemes and policy initiatives over the years. One of the most successful schemes of Government in the last decade has been TUFS. The government has continued with this scheme with several modi�ications along the way. As of 31st May,2014 approx Rs 6000 cr worth loan has been sanctioned under the Restructured Revised TUFS (RR-TUFS) to the textile industry. Several incentives were also announced in the budget in 2014 with the view to develop the overall infrastructure of Indian textile industry. One of the prominent announcements include the proposal to set up six more Textile mega-clusters at Bareily, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu. The Budget has allocated an amount of Rs 200 crore to set up these clusters. This kind of continued Government support will help in the growth of the textile industry in 2014 and beyond.
Source: Wisedge Reserach
INNOVATIVE TEXTILE SOLUTIONSINNOVATIVE TEXTILE SOLUTIONS
15Innovative Textile Solutions
PRESS RELEASE
Editors Synopsis
For the Quarter ended June 30, 2014:
• Net Income from Operations stood at Rs. 3,734.90 crore• Exports stood at Rs. 623.15 crore• Operating EBIDTA stood at Rs. 828.19 crore• PAT stood at Rs. 43.48 crore
For the Nine Month period ended June 30, 2014:
• Net Income from Operations stood at 11,324.92 crores• Export sales stood at Rs. 2, 352.45 crore• Operating EBIDTA stood at Rs. 2,466.34 crore • PAT stood at Rs. 272.42 crore
Mumbai, 14 August 2014: Alok Industries Limited, one of the leading integrated textile companies in India, reported total net sales of Rs. 3,734.90 crore (exports of Rs. 623.15 crore) for the quarter ended June 30, 2014, as compared to Rs. 2,269.60 crore (exports of Rs. 725.58 crore) in the corresponding period of the last �iscal, with a growth of 24.70%. The operating EBIDTA for the quarter was at Rs. 828.19 crores. The net pro�it after tax stood at Rs. 43.48 crore.
Total Net Sales for the Nine months ended 30 June, 2014 was at Rs. 11,324.92 crore with exports of Rs. 2,352.45 crores. Operating EBITDA was Rs. 2,466.34 crores. Operating PBT stood Rs. 320.10 crores and the net pro�it after tax for the nine months period ended 30 June, 2014 stood at Rs. 272.42 crore.
Management Comment
Commenting on the results, Mr Surendra Jiwrajka, Jt. Managing Director said, “Our performance for the current quarter is satisfactory considering the current market environment. Our EBITDA margin has compressed and credit period for the domestic customers have got extended. We however, see market environment improving over the medium term and we would be focussing more towards exports. Our ongoing cost control programmes are expected to lead to improvement in earnings in the coming months, especially on the power and fuel front due to change in fuel and on interest cost front due to our strategy of dollarising long term rupee debt. Our Board have chosen to extend the �inancial year end to 31 March 2015 i.e. for 18 month period to align the �inancial year end to March, subject to necessary approvals."
About Alok Industries Limited:
(BSE Code: 521070) (NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO) (Bloomberg Code: ALOK@IN)
Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textiles solutions provider in India. A diversi�ied manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns, Alok has capacities of 80,000 tons of cotton spinning, 150 mn meters of sheeting fabric and 13,400 tons of terry towels for its home textiles business, 186.00 mn meters of apparel width woven fabrics, 25000 tons per annum of knitted fabrics and 22 million pieces per annum of garments. The company also has a strong presence in the polyester segment with a capacity of 2,40,000 tons per annum of polyester textured yarn (DTY), FDY of 70,000 tons per annum, polyester �ibre / cationic yarn of 1,10,000 tons per annum supplemented by 1,00,000 tons per annum of POY and Chips. The company has a blue chip international customer base comprising of world renowned retailers, importers and brands.
For More Information Please Contact:
Mr. Sunil O. KhandelwalExecutive Director & CFOAlok Industries LtdTel: 022-6178 7000Email: [email protected]
Mr. Siddharth Kumar/Mr. Ankur ParikhAdfactors PR, MumbaiCell : 9833933447/[email protected]@adfactorspr.com
16 Performance Report March 31, 2014
Notes
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OUR VISION
To be the world’s best integrated textile enterprise, driven by research &
innovation, with a leadership position across products & markets, while
exceeding customer & stakeholder expectations
The barometer of our success would be the ROCE
OUR MISSION
We will:
• Be a knowledge leader & an innovator in our businesses
• Maximise people development initiatives
• Optimise use of all resources
• Become a process driven organisation
• Exceed compliance and global quality standards
• Actively explore potential market & products
• Offer innovative, customised and value-added services to our customers
• Be an ethical, transparent and responsible global organisation
OUR VALUES• Customer Satisfaction
• Passionate About Excellence
• Develop Human Capital
• Fair To All
• Concern For The
Environment And
• The Community
• Safety And Health
• Responsible Corporate Citizen
PERFORMANCE REPORT
Quarter Ended
30 June 2014
Peninsula Business Park,Tower B , 2nd & 3rd Floor ,G.K.Marg,
Lower Parel, Mumbai - 400 013Tel No. +91 61787000 Fax: +91-22 61787118
Email - [email protected] us at: www.alokind.com
INNOVATIVE TEXTILE SOLUTIONS
