BSL Ltd. — Investor Presentation 2022

Nov 10, 2022

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BSL Ltd.

REGO. OFFICE : 26,lndustrial Area, Gandhi Nagar, BHILWARA-311 001 (Rajasthan) INDIA Tel.: (91 1482) 249101-102, 245000 www.bslltd.com E-mail : accounts@bslsuitings.com, Website : www.bslltd.com C.I.N.: L24302RJl970PLC002266

REF: BSL/CS/2022-23/ Dated: I 0 th November, 2022

National Stock Exchange of India Ltd	BSE Ltd
Listing Department	Der,artment of Corporate Services
Exchange Plaza	2511 Floor, Phiroze Jeejeebhoy Towers
Bandra Kurla Complex	Dalal Street
Bandra (E)	Kala Ghoda, Fort,
Mumbai-400 051	Mumbai, Maharashtra 400 00 I
NSE Symbol: BSL	BSE Scrip Code: 514045

Subject: Investors' Presentation on the Financial Results for the Quarter and Half vear ended 30 th September, 2022 in pursuant to Regulation 30 of the SEBI {Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Ma'am,

Pursuant to the prov1s1ons of Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find attached copy of Investors' Presentation on the Financial Results for the quarter and half year ended 30th September, 2022. The same is also available on the Website of the Company ww\.bslltd.com.

This is for your information and records please.

Thanking you, Yours Faithfully For BSL LTD. i Company Secretary M. No.: ACS-43134 Enc: a/a Aanchal Patni Aanchal Patni Digitally signed by Aanchal Patni Date: 2022.11.10 18:50:37 +05'30'

BSL 514045

This presentation has been prepared by BSL Limited ("Company") solely for information purposes without any regard to any specific objectives, financial situation, or informational need of any particular person. This presentation may not be copied, distributed, or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicable laws in certain jurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein and to maintain absolute confidentiality, regarding the information disclosed in these materials.

This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment, therefore.

This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief, or current expectations of the Company or its directors and officers concerning the results of operations and the company's financial condition. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions that the Company believes to be reasonable in light of its operating experience in recent years. 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, and competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forwardlooking statement that may be made from time to time by or on behalf of the Company to reflect actual results, assumptions, or changes in factors affecting these statements. Given these risks, uncertainties, and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. This presentation may contain certain currency exchange rates and the same has been provided only for the convenience of readers.

Q2 & H1FY23 FINANCIAL PERFORMANCE

CHAIRMAN MESSAGE

Commenting on the results, Mr. Arun Churiwal, Chairman of BSL Limited said,

"Given the macro environment that continues to be challenging, I am happy to share that BSL Limited delivers a strong, resilient performance in a seasonally weak quarter for the Indian textile industry. The company's current operating and financial performance demonstrates the trust it enjoys among its domestic and global customers. The results stand as testimony to our growth trajectory. In the first half of FY23, BSL delivered a robust 21% growth on the back of strong demand in the furnishing segment and quantum growth and profitability in all segments.

Looking ahead, anticipating changes, and planning for eventualities, we at BSL are now ready to leap to transform our business to the next level. We are strengthening management capabilities and technology which will lead to sustainability, leadership, and focus on the quality of our offerings"

MANAGING DIRECTOR MESSAGE

Commenting on the results, Mr. Nivedan Churiwal, Managing Director of BSL Limited said,

"It is my pleasure to connect with all our shareholders for the first time we have taken these steps to strengthen our relationship.

Coming to BSL over the last year, we have built tremendous traction in all our segments and now we are seeing a surge on the back of strong customer relationships which is build over the years. The company has delivered robust operational and financial performance during the quarter. Our revenue for Q2FY23 grew 15% YoY with PAT growth of 31% during the same period.

Our capacity addition of ₹194 Cr. for the installation of 29,184 spindles and the modernization of equipment is happening at a good pace. We anticipate commencing commercial operations soon, while we are committed to ensuring that our quality remains at its best. We are working on further augmenting our capacity to support our future growth. We reaffirm our relentless focus on quality, and production efficiency, and our performance gives us confidence that we are on track and will continue our unrelenting focus on delivering superior shareholder value."

FINANCIAL PERFORMANCE: Q2FY23

EBITDA & EBITDA Margin %

PAT & PAT Margin %

FINANCIAL PERFORMANCE: H1FY23

EBITDA & EBITDA Margin %

PAT & PAT Margin %

₹ in Cr

❑ Total Income for Q2 FY23 is ₹ 132.9 crores and for H1 FY23 is ₹ 245.6 crores up 15% and 20% YoY

❑ EBITDA for Q2 FY23 at ₹ 13.2 crores with margin at 9.9% and for H1 FY23 stood at ₹ 24 crores with margin at 9.6%.

❑ PAT at ₹ 5.1 crores in Q2 FY23 & ₹ 7.8 crores in H1 FY23 up 30% and 22% YoY

❑ EPS at ₹ 4.93 in Q2 FY23 & ₹ 7.59 in H1 FY23

❑ Capex's plan of installation of 29,184 Spindles and modernization of synthetic spinning, Weaving & Processing division is going as per schedule commencing from December'22

HISTORICAL FINANCIAL PERFORMANCE

403 437 390 321 436

Revenue

EBITDA & EBITDA Margin%

Gross profit & GP Margin%

PAT & PAT Margin%

HISTORICAL FINANCIAL PERFORMANCE

DRIVERS OF GROWTH

DRIVERS OF GROWTH

1. Robust Demand	2. Support Govt. policy	3. China +1 strategy	4. Investments Plan	5. Aggressive Marketing
▪In2021,theIndiantextile&apparelindustryispeggedat$105bn,with~71%bydomesticconsumptionand29%byexports.By2026,theindustryislikelytoexpandto$250bnat17-19%CAGR.▪ThegrowthwouldbedrivenbytheswellingdomesticappetiteforgarmentsanddemandsforapparelinwesterncountriesresultinginhighersourcingfromIndiabyinternationalbrandstomeetthedemand.▪Apparel(garmenting),thefastestgrowingsegmentaccountsfor63%ofthe$892bnglobaltextileindustry.By2026,Indiahopestogarner10%oftheapparelexportmarketfrom4%currently.	▪IndiaisworkingongettingaFreeTradeAgreement(FTA)withbothUnitedKingdom&EuropeanUnion.▪PLIschemewaslaunchedbyGOIforimprovingIndia'sexportcompetitivenessinMMFandTechnicalTextilessegments.▪GOImayintroducePLI2.0withincentivesfocusedonmanufacturinggarments,hometextilesandtextileaccessorieslikelace,buttonandzippers.▪ToboostthetextileindustryGOIhasintroducedvariousschemessuchastheMegaInvestmenttextileparksscheme,RemissionofDutiesorTaxesonExportProduct(RoDTEP),andTextileTechnologyDevelopmentScheme(TTDS).	▪ChinaPlusOnesentimentglobally,India'stextileexportsareexpectedtogrowby81%to$65billionby2026fromthepre-Covidlevelofaround$36billionin2019▪Adoptionbyglobalbrands,duetoIndia'srelativelylargestrategicdepthcomparedwithVietnamorBangladesh▪Covid-19hastriggeredtheredistributionofglobaltradesharesandarecalibrationofsourcingpatterns,providingagoldenopportunityforIndiantextilestostageaturnaroundandregainaleadershippositionasatopexportingeconomy.	▪BSLisgoingtoincreaseitsperipheryandstartanewlineofBusinesswiththeCottonSpinningproject.ACapexPlanoftheCompanyfortheinstallationof29,184CottonSpindlesandModernizationofPVSpinning,WeavingandProcessingdivisionsoftheCompanywereapprovedduringtheFY22.TheapproximatecostoftheProjectwillbeINR194CrorestobefundedbyTermLoansandinternalaccruals.YarnSpinningCottonNewly plannedExistingCapexunits	▪BSLLimited'smarketingstrategyuniquelydesignedforthecompanyandhelpsgatherstrongbrandrecognitionforitsqualitydomesticandinternationalbrands.▪Focusonexportshelpingusgainmajormarketshareinbothsuiting's&furnishingwithpresenceinover60countries.▪Specific&differentstrategydifferentpricesegmentsmaximumoutreachforbothmassandpremiumbrandsinthedomesticmarket.

COMPANY PROFILE

Manufacturer of an extremely diverse range of textile products ranging from synthetic, worsted, and now cotton yarn to synthetic & worsted suiting's and a variety of furnishing fabrics. Formed in1971 and growing from strength to strength.

South Asia's leading supplier of furnishing fabrics to the global retail giant IKEA and 25 other nations. Highly awarded over 30 awards in production, performance, and export excellence.

Team of experts professional in various functional areas viz. Financial, Marketing, and Technical assist the company. The total workforce today stands at 2,500 spread across ~ 45 acres of campus

BSL Limited is engaged in the manufacturing of Synthetic blended fabric under the brand name of BSL Suitings and premium worsted fabrics under the brand name of Geoffrey Hammonds and the production of worsted yarn along with the synthetic yarn.

BSL Limited has over a half-century of experience in textile manufacturing and is currently producing over 20 million meters of fabric annually across the nation and in 60 countries of the world. The products are manufactured under IS/ISO 9001-2008.

BSL Limited is a pioneer in the textile industry and its vertically integrated unit with spinning, weaving, processing, and manufacturing capacity with state-of-the-art technologies from all over the globe.

COMPANY PROFILE

MILESTONE CAPACITY

• 1971 1976 Mid 80's Mid 2000's ▪ The company started manufacturing Grey cloth on just ▪ Converted into a Public Limited Company in the name of "Bhilwara Synthetics Limited". ▪ The Company was the first in India to venture into Suiting's Export and today is the leading exporter of suiting's fabric from India. ▪ The company took decisive step to venture into furnishing fabrics and over the last decade or more, this has been the biggest growth engine for success story for the company.

1970

▪ Year of Incorporation

8 Looms.

Particulars	ProductionCapacity
Fabrics	174Looms
Worsted Yarn	8,768Spindles
Synthetic Yarn	19,536Spindles
Vortex Yarn	400Positions
FabricProcessing	288Lac Mtrs.
Top, Fiber &Yarn Dying	2,352MT
Cotton Yarn[Commencing January'23]	29,184Spindles

16 Investor Presentation || Company Profile Q2FY23

▪ Incorporated under the name of

"Raj General Udyog Private Limited".

BSL PROVIDES FINEST PREMIUM SUITING FABRICS FOR BOTH DOMESTIC & EXPORT MARKETS

PV FABRICS PW FABRICS TR FABRICS

17 Investor Presentation || Company Profile Q2FY23

BUSINESS VERTICALS - FURNISHINGS

The New Benchmark From Soft Furnishing Fabrics To Upholstery Fabrics & Exquisite Silk Fabrics Offers A Wide Range Of Premium Furnishing

THE YARNS DEFINE FABRICS

The highest quality fabrics begin with yarn that comes from a state-of-the-art manufacturing facility. Made of different materials, color patterns, gauges, and weights, our yarns are a testament to world-class quality and craftsmanship.

TEXTILES

• BSL Limited
• Maral Overseas Limited
• RSWM Limited
• Bhilwara Technical Textiles Limited
• BMD Private Limited

ESG INITIATIVES

ENVIRONMENT

M.E.E. – Multiple Effect Evaporator and R.O. Plant

Agro-Fuel – From July'22 onwards, in line with Global Sustainability Initiatives, the fuel system for both Boiler & Thermopack is being changed to Agro-Fuel instead of Fossil Fuels.

Z.L.D. – Zero Liquid Discharge and E.T.P. – Effluent Treatment Plant

Recycled Raw Materials - As a part of Global sustainability movement, in FY22, the Company's 60% of Fiber consumption was of Recycled Fibers.

Vegan Certificate - One of the few Textile Companies in the World which is having Vegan Certificate from Switzerland.

Solar Power – Company has installed a capacity of 4.51 MW of Roof Top Solar Plant.

OEKO-TEX - The Company has received OEKO-TEX certifications which ensures that our products have been tested against a list of up to 350 toxic chemicals.

Corporate social responsibility is also called corporate conscience, corporate citizenship, social performance, or sustainable business. It is a form of corporate self regulation integrated into a business model.

CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

• The company has viewed CSR activities as an integral part of its corporate objectives, fully aligned with the overall business goals.
• The company has been associated with active participation in creating value to its different stakeholders through various social, cultural and economic developments projects in the region.

• BSL plans to maintain and consolidate its position in society with an increased emphasis on socially and environmentally responsible practices both internally and in the communities in which it operate.
• CSR activity boosts the brand image of the Company and helps to build trust and relationships with different stakeholders. It contributes to improving financial performance and increasing the business growth of the Company.

Internal Control Systems

• The Company has adequate Internal Control Systems, commensurate with the size, scale and complexity of its operations.
• The Audit committee quarterly reviews the Executive summary on the internal audit findings along with the recommendations and management comments.
• The Internal Auditors also ensure proper compliance of all policies and Standard Operating Procedures (SOPs) adopted by the Company.

Vigil Mechanism/ Whistle Blower Policy

• The Company has a vigil Mechanism named Whistle Blower policy to deal with any instance of fraud and mismanagement.
• The Details of the Whistle Blower Policy is explained in the Corporate Governance Report and also posted on the Company's website at the web link as: https://www.bslltd.com/images/financials/1487923284\_Whistle-Blower-Policy.pdf

Corporate Governance

• The Company is committed to maintaining the highest standards of corporate governance and adhering to the corporate governance requirements set out by the SEBI.
• The Company recognizes Corporate Governance not as a set of rules but as a framework supporting the core values.
• Good Governance helps us to maintain trust with the shareholders, stakeholders, employees, and society at large. We believe that good governance is the key to doing business in a sustainable manner and which creates value for society.

MANAGEMENT TEAM

Shri Nivedan Churiwal Managing Director B.Com, 23 years of experience

Shri Praveen Jain Director Operations F.C.A., F.C.S., F.C.M.A., 33 years of experience

Thank You!

G E T I N T O U C H W I T H U S

BSL Limited Shri Nivedan Churiwal Managing Director E: nivedan@bslltd.com

Investor Relation: Rik Consultancy & Advisory Services LLP Mr. Ritesh S Singh, Partner M: +91 8329 385762 E: ritesh.singh@rikcapital.in

Profit & Loss Statement

₹ in Cr

Period	Q2FY23	Q2FY22	Q1FY23	FY22
Total Income(Incl. other income)	132.9	116.5	112.7	437.3
Raw Material Cost	65.0	50.2	68.8	224.5
Employee Cost	19.4	17.1	18.6	68.5
Power Cost	12.7	10.9	12.5	45.5
Other Expenses	19.9	18.0	17.1	70.2
Inc./Dec. in Inventory	2.5	9.1	(15.0)	(12.9)
EBIDTA	13.0	11.3	10.7	41.4
EBIDTA Margin (%)	9.9%	9.6%	9.1%	9.5%
Depreciation	2.7	2.9	2.9	11.5
Finance Cost	4.1	3.1	4.4	13.9
Profit Before Tax	6.6	5.9	3.4	16.0
Tax	1.5	1.4	2.7	4.5
Net Profit After Tax	5.0	3.9	2.7	11.5
Net Profit Margin (%)	3.8%	3.3%	2.4%	2.6%

₹ in Cr

Balance Sheet Highlight

Assets	30.09.22	31.03.22	Liabilities	30.09.22	31.03.22
Non-current Assets	130.0	94.6	Shareholders' Fund	95.6	89.3
Fixed Assets	77.8	74.3	Share Capital	10.3	10.3
Investments	0.0	0.0	Reserve & Surplus	85.3	79.0
Other Non-current Assets	52.2	20.3	Non-current Liabilities	76.5	51.0
Current Assets	274.1	257.5	Long Term Borrowing	70.4	45.2
Inventories	156.2	141.4	Other Non-current Liabilities	6.1	5.8
Trade Receivable	93.8	89.3	Current Liabilities	232.0	211.8
Other Current Assets	24.1	26.8	Short Term Borrowing	148.7	140.8
			Other Current Liabilities	83.3	71.0
Total Assets	404.1	352.1	Total Liabilities	404.1	352.1

Assets	30.09.22	31.03.22	Liabilities	30.09.22	31.03.22
Non-current Assets	130.0	94.6	Shareholders' Fund	95.6	89.3
Fixed Assets	77.8	74.3	Share Capital	10.3	10.3
Investments	0.0	0.0	Reserve & Surplus	85.3	79.0
Other Non-current Assets	52.2	20.3	Non-current Liabilities	76.5	51.0
Current Assets	274.1	257.5	Long Term Borrowing	70.4	45.2
	156.2	141.4	Other Non-current Liabilities	6.1	5.8
Trade Receivable	93.8	89.3	Current Liabilities	232.0	211.8
Other Current Assets	24.1	26.8	Short Term Borrowing	148.7	140.8
			Other Current Liabilities	83.3	71.0
	404.1	352.1	Total Liabilities	404.1	352.1

31 Investor Presentation || Annexure Q2FY23