0
PERFORMANCE REPORT
QUARTER ENDED
30 SEPTEMBER 2014
Peninsula Business Park, Tower ‘B’ 3rd floor, G. K. Marg, Lower Parel,
Mumbai 400 013 Tel: 91-22-6178 7000 Fax: 91-22-6178 7118
E-mail: [email protected] Website: http://www.alokind.com
1
PERFORMANCE HIGHLIGHTS
FOR THE QUARTER ENDED 30 SEP 2014
Net Sales of Rs.3,757.05 crore An increase of 0.44% over quarter ended 30 Sept 2013
Domestic Sales of Rs.3,109.55 crore Growth of 16.96% over quarter ended 30 Sept 2013 (Rs.2,658.74 crore)
Operating EBIDTA of Rs. 872.96 crore Increased by 3.19% over previous quarter ended 30 June 2014 (Rs.845.98 crore) Decreased by (-4.37%) compared to quarter ended 30 Sept 2013 (Rs.912.80
crore)
PBT at Rs.68.72 crore Growth of 3.12% over previous quarter ended 30 June 2014 (Rs.66.64 crore) Decreased by 51.71% compared to corresponding quarter ended 30 Sept 2013
(Rs.142.30 crore)
PAT of Rs.45.36 crore
Increased by 4.3% compared to previous quarter ended 30 June 2014 (Rs.43.48 crore)
Decreased by 53.24% compared to corresponding quarter of 2012-13 (Rs.96.98 crore)
FOR THE TWELVE MONTHS ENDED 30 SEP 2014
Net Sales of Rs.15,081.97 crore Increased by 6.43% compared to twelve months of Oct 2012 – Sept 2013
(Rs.14,170.23 crore)
Operating EBIDTA of Rs.3,428.44 crore
Decreased by 13.21% from Rs.3,950.32 crore during October 2012 – Sept 2013
PBT at Rs.481.12 crore Down by (-47.01%) compared to corresponding period last year (Rs.907.95 crore)
PAT of Rs.317.78 crore
2
KEY DEVELOPMENTS IN THE QUARTER
Long Term Advance Against Future Exports
Reserve Bank of India (RBI) vide their Notification RBI/2013-14/597 A.P. (DIR Series) Circular No. 132 dated May 21, 2014 has allowed Authorised Dealer Category - I (AD Category I) banks to allow exporters to receive long term export advance up to a maximum tenure of 10 years backed by an Export Performance Bank Guarantee (EPBG) from Indian Banks.
In line with the above, State Bank of India has assessed Long term Export Advance requirement at USD 1.63 bn (Rs. 9800 crores) for the Company and they have sanctioned an EPBG of USD 207.41 (Rs.1244.61 crores).
Other banks are in the process of sanctioning their respective share of EPBG.
Benefits to the Company
This would enable the Company to bring down its interest cost in line with international rates and make it competitive in global markets
The Company is required to meet its obligation over a period of 10 years and hence, gets the opportunity to align the repayment with its cash flows.
There is a natural hedge as the company’s exports are presently at about USD 650 million and expected to increase.
Export Awards
The Company has won the maximum number of Export Awards for 2013-14 from TEXPROCIL as under:
1. Gold Trophy for the Highest Exports of Bed Linen/Bed Sheets/Quilts in Madeups
2. Gold Trophy for the Highest Exports of Other Fabrics including Embroidered Fabrics, Laces
3. Gold Trophy for the Highest Exports of Terry Towels in Madeups
4. Silver Trophy for the Second Highest Exports of Bleached/Dyed/Yarn Dyed/Printed Fabrics
5. Silver Trophy for the Second Highest Global Exports (Overall)
3
FINANCIAL RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED 30 SEP 2014 PART I
Rs Crore PARTICULARS QUARTER ENDED PERIOD ENDED PERIOD ENDED
30.09.2014 30.06.2014 30.09.2013 30.09.2014 30.09.2013
(See note 4 & 5
below) (See note
below)
[3 Months] [3 Months] [3 Months] [12 Months] [18 Months]
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 Income from Operations
a) Net Sales 3,744.84 3,725.26 3,728.66 15,034.11 19,853.76
(Net of excise duty)
b) Other Operating Income 12.21 9.64 12.01 47.86 63.99
Total Income from Operations (net)
3,757.05 3,734.90 3,740.67 15,081.97 19,917.75
2 Expenses
a)
Cost of material consumed
2,855.29 2,238.14 3,416.61 10,389.43 13,908.87
b)
Changes in inventories of finished goods, work-in-progress
(322.28) 325.95 (1,167.79) (349.98) (2,509.15)
c)
Employees benefit expenses
68.96 72.71 70.23 293.61 434.68
d)
Depreciation and Amortisation expense
245.07 244.29 244.91 973.65 1,360.77
e)
Other expenditure 315.55 277.18 557.15 1,495.25 2,658.44
Total Expenses 3,162.59 3,158.27 3,121.11 12,801.96 15,853.61
3 Profit from operations before other income, finance costs and exceptional items
594.46 576.63 619.56 2,280.01 4,064.14
4 Other Income 33.43 25.06 48.33 174.78 341.96
5 Profit from ordinary activities before finance costs and exceptional items
627.89 601.69 667.89 2,454.79 4,406.10
6 Finance Costs 559.17 535.05 451.02 2,065.97 2,542.46
7 Profit from ordinary activities after finance costs but before exceptional items
68.72 66.64 216.87 388.82 1,863.64
8 Exceptional Items (Refer note no. 2 )
0.00 - 74.57 (92.30) 463.74
4
PARTICULARS QUARTER ENDED PERIOD ENDED PERIOD ENDED
30.09.2014 30.06.2014 30.09.2013 30.09.2014 30.09.2013
(See note 4 & 5
below) (See note
below)
[3 Months] [3 Months] [3 Months] [12 Months] [18 Months]
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
9 Profit from ordinary activities before tax
68.72 66.64 142.30 481.12 1,399.90
10 Tax expenses 23.36 23.16 45.32 163.34 479.74
11 Net Profit 45.36 43.48 96.98 317.78 920.16
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
13 Reserves excluding
revaluation reserves (as per Balance sheet of previous accounting year)
3,710.99
14 Earnings per share (of Rs. 10 each) :
Basic 0.33 * 0.32 * 0.70 * 2.31 * 9.43*
Diluted 0.33 * 0.32 * 0.70 * 2.31 * 9.43*
* - Not annualised
See accompanying notes PART II
PARTICULARS QUARTER ENDED PERIOD ENDED PERIOD ENDED
30.09.2014 30.06.2014 30.09.2013
30.09.2014
30.09.2013
(See note 4 & 5 below)
(See note below)
[3 Months] [3 Months] [3 Months]
[12 Months]
[18 Months]
(Unaudited) (Unaudited) (Unaudited
) (Unaudited) (Audited)
A PARTICULARS OF SHAREHOLDING
1 Public Shareholding
- Number of shares 83,54,57,064
83,74,57,064
85,08,41,97
0
83,54,57,064 85,08,41,970
-Percentage of shareholding
60.67% 60.81% 61.78% 60.67% 61.78%
5
PARTICULARS QUARTER ENDED PERIOD ENDED PERIOD ENDED
30.09.2014 30.06.2014 30.09.2013
30.09.2014
30.09.2013
(See note 4 & 5 below)
(See note below)
[3 Months] [3 Months] [3 Months]
[12 Months]
[18 Months]
(Unaudited) (Unaudited) (Unaudited
) (Unaudited) (Audited)
2 Promoters and Promoter Group Share Holding
a) Pledged/Encumbered
- Number of Shares 53,69,63,797 53,82,01,893 51,96,62,724
53,69,63,797 51,96,62,724
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
99.13% 99.73% 98.74% 99.13% 98.74%
-Percentage of Shares (as a % of the total share capital of the Company)
38.99% 39.08% 37.74% 38.99% 37.74%
b) Non- encumbered
- Number of Shares 46,94,734 14,56,638 66,10,901 46,94,734 66,10,901
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group
0.87% 0.27% 1.26% 0.87% 1.26%
-Percentage of Shares (as a % of the total share capital of the Company)
0.34% 0.11% 0.48% 0.34% 0.48%
B INVESTOR COMPLAINTS
Pending at the beginning of the quarter
7
Received during the quarter
37
Disposed off during the quarter
38
Remaining unresolved at the end of the quarter
6
6
STATEMENT OF ASSETS AND LIABILITIES AS AT
30.09.2014 30.09.2013
I EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital 1,377.13 1,377.13
Reserves and Surplus 4,033.32 3,710.99
Sub Total - Share holders' Funds 5,410.45 5,088.12
Non-current Liabilities
Long-term Borrowings 8,331.42 9,085.47
Deferred Tax liabilities (net) 740.25 664.14
Long-term provisions 75.52 194.35
Sub Total - non current liabilities 9,147.19 9,943.96
# Current Liabilities
Short-term Borrowings 5,884.97 4,640.71
Trade payables 2,168.64 957.38
Other current liabilities 4,077.32 3,851.25
Short-term provisions 312.89 250.27
Sub Total - current liabilities 12,443.83 9,699.61
TOTAL - EQUITY AND LIABILITIES 27,001.47 24,731.69
II ASSETS
Non-current Assets
Fixed assets
Tangible assets 8,682.01 9,156.90
Intangible assets 18.68 26.53
Capital work-in-progress 133.02 555.13
Non-current Investments 129.15 129.15
Long-term Loans & Advances 1,697.68 1,637.35
Other non-current assets - -
Sub Total - Non current assets 10,660.54 11,505.06
Current Assets
Current Investments 2.76 2.73
Inventories 5,931.85 5,726.47
Trade receivables 8,426.81 5,025.96
Cash & Bank Balances 234.07 882.65
Short-term Loans & Advances 1,664.90 1,503.74
Other current assets 80.53 85.08
Sub Total - Current assets 16,340.92 13,226.63
TOTAL - ASSETS 27,001.46 24,731.69
7
NOTES:
1. The above financial results of the Company for the quarter and twelve months ended 30 September 2014, reviewed and recommended by the Audit Committee, were approved by the Board of Directors of the Company at its meeting held on 13 November 2014 and have been reviewed by the Statutory Auditors.
2. Exceptional items comprises of :
QUARTER ENDED PERIOD ENDED PERIOD ENDED
30.09.2014 30.06.2014
30.09.2013 30.09.2014 30.09.2013
(See note 4 & 5
below) (See note
below)
[3 Months] [3 Months]
[3 Months] [12 Months] [18 Months]
((Unaudited) (Unaudited
) (Unaudited) (Unaudited) (Audited)
Exchange fluctuation (see a below)
- - 73.48
(92.30) 317.39
Provision for diminution / impairment (see b below)
- - 1.09
- 146.35
Total - -
74.57
(92.30) 463.74
a. Unrealised exchange fluctuation 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 financial reporting, the Company has identified 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 ENDED PERIOD ENDED
30.09.2014 30.06.2014 30.09.2013
30.09.2014
30.09.2013
(See note 4 & 5 below)
(See note below)
[3 Months] [3 Months] [3 Months]
[12 Months]
[18 Months]
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Segment Revenue
Domestic 3,109.55 3,111.75 2,658.73 12,082.01 14,808.84
International 647.50 623.15 1,081.94 2,999.96 5,108.91
3,757.05 3,734.90 3,740.67 15,081.97 19,917.75
Sundry Debtors
Domestic 8,219.64 7,115.17 4,739.09 8,219.64 4,739.09
International 207.17 228.45 286.87 207.17 286.87
8,426.81 7,343.62 5,025.96 8,426.81 5,025.96
8
4. The Board of Directors have decided to extend the accounting year end of the Company from September 30, 2014 to March 31, 2015 to align with the requirements of having March 31 as the year end, as required under the Companies Act 2013. The Company has informed the stock exchanges and is in the process of obtaining approvals as necessary.
5. The Year to Date (YTD) for the previous accounting year and the previous financial year of the Company was for a period of 18 months from April 1, 2012 to September 30, 2013. Hence, such figures are not comparable with the YTD figures of the current period which are for a period of 12 months from October 1, 2013 to September 30, 2014.
6. The figures of previous periods have been reclassified / regrouped wherever necessary, to correspond
with those of the current periods.
By order of the Board For ALOK INDUSTRIES LIMITED
Sd/-
DILIP B. JIWRAJKA Managing Director
Place: Mumbai Date: 13 November 2014
9
FINANCIALS AT A GLANCE
PROFIT AND LOSS: FOURTH QUARTER Rs. Crore
PROFIT & LOSS ACCOUNT Q/ENDED
30 SEPT 2014 Q/ENDED
30 SEPT 2013 % Change
% to Sales % to Sales
Domestic Sales 3,109.55 2,658.73 16.96%
Export Sales 647.50 1,081.94 (40.15%)
Net Sales 3,757.05 3,740.67 0.44%
Other Income 33.43 48.33 (30.84%)
TOTAL INCOME 3,790.48 3,789.00 0.04%
Material Costs 2,533.02 67.42% 2,248.82 60.12% 12.64%
People Costs 68.96 1.84% 70.23 1.88% (1.81%)
Other Expenses 315.55 8.40% 557.15 14.89% (43.36%)
OPERATING EBIDTA 872.96 23.24% 912.80 24.40% (4.37%)
Depreciation 245.07 6.52% 244.91 6.55% 0.06%
OPERATING EBIT 627.89 16.71% 667.89 17.85% (5.99%)
Interest & Finance Costs 559.17 14.88% 451.02 12.06% 23.98%
OPERATING PBT 68.72 1.83% 216.87 5.80% (68.32%)
Exceptional Items 0.00 74.57 1.99% (100.00%)
PROFIT BEFORE TAX 68.72 1.83% 142.30 (51.71%)
Less: Provision for Taxes 23.36 0.62% 45.32 1.21% (48.45%)
PROFIT AFTER TAX 45.36 1.21% 96.98 2.59% (53.22%)
FINANCIALS AT A GLANCE
91
2..8
0
87
2..9
6
0
200
400
600
800
1,000
30 SEPT 2013 30 SEPT 2014
Rs.
Cro
re
Operating EBIDTA: Q4
96
.98
45
.36
0
20
40
60
80
100
120
30 SEPT 2013 30 SEPT 2014
Rs.
Cro
re
PAT: Q4
10
PROFIT AND LOSS: TWELVE MONTHS YEAR TO DATE Rs. Crore
PROFIT & LOSS ACCOUNT 12 M/ENDED 30 SEPT 2014
12 M/ENDED 30 SEPT 2013
% Change
% to Sales % to Sales
Domestic Sales 12,082.01 10,730.93 12.59%
Export Sales 2,999.96 3,439.30 (12.77%)
Net Sales 15,081.97 14,170.23 6.43%
Other Income 174.78 158.99 9.93%
TOTAL INCOME 15,256.75 14,329.22 6.47%
Material Costs 10,039.45 66.57% 8,455.23 59.67% 18.74%
People Costs 293.61 1.95% 288.63 2.04% 1.72%
Other Expenses 1,495.25 9.91% 1,635.04 11.54% (8.55%)
OPERATING EBIDTA 3,428.44 22.73% 3,950.32 27.88% (13.21%)
Depreciation 973.65 6.46% 929.08 6.56% 4.80%
OPERATING EBIT 2,454.79 16.28% 3,021.24 21.32% (18.75%)
Interest & Finance Costs 2,065.97 13.70% 1,722.60 12.16% 19.93%
OPERATING PBT 388.82 2.58% 1,298.64 9.16% (70.06%)
Exceptional Items (92.30) (0.61) 390.69 2.76% (123.62%)
PROFIT BEFORE TAX 481.12 3.19% 907.95 6.41% (47.01%)
Less: Provision for Taxes 163.34 1.08% 307.48 2.17% (46.88%)
PROFIT AFTER TAX 317.78 2.11% 600.47 4.24% (47.08%)
FINANCIAL POSITION
34
39
.3
2,9
99
.96
0
1,000
2,000
3,000
4,000
5,000
6,000
30 SEPT 2013 30 SEPT 2014
Rs.
Cro
re
Export Sales: YTD Q4
60
0.4
7
31
7.7
8
0
100
200
300
400
500
600
700
30 SEPT 2013 30 SEPT 2014
Rs.
Cro
re
Operating PAT: YTD Q4
11
SUMMARY BALANCE SHEET Rs. Crore
BALANCE SHEET AS ON 30 SEPT
2014 AS ON 30 JUN
2014 AS ON 30 SEP
2013
Tangible Net Worth 5,410.45 5,360.54 5,088.12
Total Non-Current Liabilities 9,147.19 9,213.82 9,943.96
Total Current Liabilities 12,443.82 11,572.27 9,699.61
TOTAL 27,001.46 26,146.63 24,731.69
Net Fixed Assets 8,833.71 9,070.64 9,738.56
Non-Current Assets 1,826.83 1,742.14 1,766.50
Current Assets 16,340.92 15,333.85 13,226.63
TOTAL 27,001.46 26,146.63 24,731.69
SUMMARY CASH FLOW
Rs. Crore
PARTICULARS 12M 18M
30 SEPT 2014 30 SEPT 2013
NET CASH GENERATED FROM OPERATING ACTIVITIES 231.09 (351.85)
NET CASH GENERATED FROM / (USED IN) INVESTING ACTIVITIES 47.50 (725.18)
NET CASH (USED IN) / GENERATED FROM FINANCING ACTIVITIES (973.05) 1,264.46
NET FLOW (694.46) 187.43
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD 729.14 541.71
AT THE END OF THE PERIOD 34.68 729.14
NET INCREASE IN CASH AND CASH EQUIVALENTS (694.46) 187.43
12
FINANCIAL POSITION KEY RATIOS
Particulars 30-Sept-14 (12 Months) (Reviewed)
30-Jun-14 (9 Months) (Reviewed)
30-Sept-13 (18 Months)
(Audited)
Profitability Ratios
EBITDA (%) 22.73% 21.78% 28.95%
Profit Before Tax Margin (%) 2.58% 2.83% 9.36%
Profit After Tax Margin (%) 2.11% 2.41% 4.62%
Balance Sheet Ratios
Net Total Debt - Equity 3.03 3.00 2.99
Net Total Debt / EBITDA 4.79 4.89 3.96
Current Ratio 1.44 1.45 1.50
Coverage Ratios
PBDIT/Interest 1.66 1.74 2.27
Working Capital Turnover Days
Debtors Turnover - Days 204 177 138
Inventory Turnover - Days 144 137 158
Gross Working Capital Turnover Days 348 314 296
Less: Creditors Turnover – Days 52 43 26
Net Working Capital Turnover Days 296 271 276
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 fibre / Cationic Yarn Tons (1,10,000)
13
CAPITAL INFORMATION
SHARE PRICE AND VOLUMES
Month
BSE (In Rs. per share) NSE (In Rs. Per share)
High Low Volume High Low Volume
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
Jul-14 15.10 11.79 8,83,82,305 15.15 11.75 387519163
Aug-14 13.49 9.96 7,91,79,464 13.50 9.90 316475346
Sep-14 14.08 10.35 8,28,05,482 14.10 10.30 376875203
SHARE PERFORMANCE VIS-A-VIS STOCK MARKET INDICES
Note: Share prices and indices indexed to 100 as on 1 October 2013
EQUITY INFORMATION
Particulars BSE NSE Equity as on 30 September 2014 1377115595 1377115595 Closing Price as on 30 September 2014 11.82 11.80
12-Month High Rs. 16.32 Rs. 16.30
12-Month Low Rs.5.80 Rs.5.75
Market Capitalisation as on 30 September 2014 (Rs. In Crores) 1627.75 1624.99
14
CAPITAL INFORMATION
SHAREHOLDING PATTERN
SHAREHOLDER ENTITIES CURRENT QUARTER PREVIOUS QUARTER
Promoters 39.33% 39.19%
Banks, Mutual Funds And FIs 9.07% 9.00%
FIIs, NRIs And OCB 5.66% 5.11%
Other Corporate Bodies and Public 45.94% 46.70%
Total 100.00% 100.00%
99.13% of the promoters’ holding have been pledged with FIIs, MFs and other lenders as part of loan conditions. This represents a sum total of 536963797 Shares (38.99% of the total equity of the Company)
TOP PUBLIC SHARE HOLDERS AS AT 30 SEP 2014
Sr. No. Name of the Share Holders Shares %
1 Promoters 541658531 39.33
2 Arum Investments Private Limited 40317541 2.93
3 Axis Bank Limited 35734290 2.59
4 Life Insurance Corporation of India 35164136 2.55
5 IFCI Limited 18760723 1.36
6 IDBI Bank Limited 17888161 1.30
7 MV SCIF Mauritius 12592488 0.91
8 Dimensional Emerging Markets Value Fund 10204534 0.74
9 IL&FS Trust Company Limited A/c IL&FS Private Equity Trust -Leverage India Fund 9955642 0.72
10 United India Insurance Company Limited 7610690 0.55
11 India Max Investment Fund Limited 5638000 0.41
Sub-Total 735524736 53.41
Other Shareholders 641590859 46.59
Total 1377115595 100.00
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
15
THE TEXTILE INDUSTRY Global Apparel Market Size EU, US, China and Japan are the 4 biggest apparel consumption markets in the world with market size of USD 355 bn, 230 bn, 165 bn, and 110 bn respectively in the year 2013. Indian apparel market size in 2013 is much smaller as compared to these nations at USD 46 bn.
Source: UN Comtrade and CII Texcon Whitepaper report
Global Textile and Apparel Trade Global 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$1180 bn by 2020. Apparel continues to be the largest traded category even though there has been high trade growth in fibre and yarn in recent times. Source: UN Comtrade & Wisedge Analysis
16
US Import Scenario US apparel imports increased by 23% in Q2 (July to Sep14) compared to Q1 (April to June 14) and this growth momentum is expected to grow even higher. The major contributing items belong to the apparel segment. Maximum Imports have grown from China, Vietnam and India
Source: UN Comtrade & Wisedge Analysis Following table illustrates that even though China is the largest import partner for US, Vietnam and India are growing much faster. US buyers are looking to diversify from China due to increasing costs. They are also looking to diversify from Bangladesh in recent times due to social compliance issues. Hence, going forward the opportunity for India, Vietnam and Indonesia will further increase.
Countries US apparel imports (US$ bn) YE_Sep,2014 Growth over previous year
World 106.92 3.24
Vietnam 9.75 15.21
India 6.62 8.16
Bangladesh 5.03 1.37
China 41.77 1.04 Source: OTEXA,UN Comtrade & Wisedge Analysis
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 exported to US textile and apparel worth US$ 6.63 bn as of YE September 2014 growing at 8% from YE September 2013. India’s apparel exports have also grown at 12.29 as of YE September 2014.
17
Source: OTEXA
Price Trends in Cotton Raw cotton prices have reduced across various cotton producing countries due to high production of cotton this year. Cotton yarn prices in India have also declined since January 2014 due to low raw cotton prices.
Cotton Prices in India and Major Cotton producing Countries 2014
Month International Cotlook A Index (US Cents/Pound)
United States - USDA's all 7 regions average (Quality 1) Spot Prices - (US Cents/Pound)
Brazil CEPEA 8 days R$/Pound
India CAI Shanker- 6 (INR/Candy)
China CCI 328 (RMB/Ton)
Pakistan KCA (PKR/37.32 Kgs)
Jan 90.96 81.43 222.48 41973 19448 7012
Feb 94.05 85.33 227.24 42564 19455 6957
Mar 96.95 86.70 220.49 41941 19440 6717
Apr 94.20 85.48 208.79 42037 18437 6469
May 92.71 83.20 195.04 42066 17434 6767
Jun 90.90 78.54 191.62 42044 17371 6778
Jul 83.84 69.63 182.17 41557 17241 6065
Aug 74.00 64.99 168.67 39833 17076 5405
Sep 73.38 64.83 168.93 38360 16591 5465
Oct 70.34 63.51 165.71 33456 14848 5144
USDA - United States Department of Agriculture, Quality 1 - Color 41, Leaf 4, Staple 34, Mike 35-36 and 43-49, Strength 27.0-28.9 grams per tax and uniformity 81.0 to 81.9 CEAPA - Center for Advanced Studies on Applied Economics, CAI - Cotton Association of India, KCA - Karachi Cotton Association, CCI - China Cotton Index Source: ICAC
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PRESS RELEASE
Editors Synopsis For the Quarter ended September 30, 2014:
Net Total Sales stood at Rs. 3757.05 crore
Exports stood at Rs. 647.50 crore
Operating EBIDTA stood at Rs. 872.96 crore
PAT stood at Rs. 45.36 crore For the Twelve Month period ended September 30, 2014:
Net Total sales stood at Rs. 15081.97 crore
Export sales stood at Rs. 2999.96 crore
Operating EBIDTA stood at Rs. 3428.44 crore
PAT stood at Rs. 317.78 crore
Mumbai, 13 November 2014: Alok Industries Limited, one of the leading integrated textile companies in India, reported total net sales of Rs. 3,757.05 crore (exports of Rs. 647.50 crore) for the quarter ended September 30, 2014, registering a moderate growth of 0.44%. The operating EBIDTA for the quarter was at Rs. 872.96 crores. The net profit after tax stood at Rs. 45.36 crore. Total Net Sales for the Twelve months ended 30 September, 2014 was at Rs. 15,081.97 crore with exports of Rs. 2,999.96 crores. Operating EBITDA was Rs. 3,428.44 crores. Operating PBT stood Rs. 481.128 crores and the net profit after tax stood at Rs. 317.78 crore.
Management Comment Commenting on the results, Mr Surendra Jiwrajka, Jt. Managing Director said, “Looking to the current environment, our performance for this quarter may be considered as satisfactory. Our lead bank, State Bank of India has assessed our requirement for Export Performance Bank Guarantee (EPBG) at USD 1.63 bn (Rs. 9800 crores) to raise long term export advance and use the proceeds to repay the existing rupee debt. SBI has sanctioned their share of EPBG of USD 207.41 mn (Rs. 1244.61 crore) and we expect to receive the sanction for the balance amount from other banks in next 2-3 months. Post implementation of EPBG scheme, we would be able to save interest cost and improve cash flows. We look forward to the future with optimism.” 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 diversified 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.
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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 fibre / 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. Khandelwal Executive Director & CFO Alok Industries Ltd Tel: 022-6178 7000
Email: [email protected]
Mr. Parin Narichania / Mr. Siddharth Kumar Adfactors PR, Mumbai Cell : 9820092291 / 9833933447 [email protected]
