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MALLCOM (INDIA) LTD. — Investor Presentation 2022
Nov 10, 2022
61210_rns_2022-11-10_d0ade419-652a-4c9b-8932-365625bc8b3d.pdf
Investor Presentation
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Ref: MIL/BSE/NSE/22
Date: November 10, 2022
| Ref: MIL/BSE/NSE/22 Date:November 10, 2022 |
|
|---|---|
| The Manager Corporate Relationship Department BSE Limited 1st Floor, New Trading Wing, Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai - 400001 |
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 |
| BSE Security Code: 539400 | NSE Symbol: MALLCOM |
Dear Sir/Madam,
Sub: Investor Presentation
We are forwarding herewith Investors Presentation of Mallcom (India) Limited taking into account Relevant information for the Quarter and half year ended 30[th] September, 2022.
This is for your kind information and record.
Thanking you
Yours faithfully For Mallcom (India) Ltd.
ANUSHRE Digitally signed by ANUSHREE BISWAS E BISWAS Date: 2022.11.10 18:56:33 +05'30'
ANUSHREE BISWAS
Company Secretary & Compliance Officer
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Mallcom (India) Limited E a r n i n g s P r e s e n t a t i o n – Q 2 / H 1 - F Y 2 3
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SNAP SHOT
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Experienced Management Largest integrated Indian with over 38 years of Personal Protective Industry experience Equipment (PPE) manufacturer
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One of the widest protective Employing 3000+ skilled gear product range catering and semi-skilled workers to diversified industries of which 36% are women
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13 manufacturing units Manufacturing Plants (DTA, across India, equipped EOU & SEZ units) located in with best in-class West Bengal, Uttarakhand & machinery Gujarat with easy access to local markets, sea & airports
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Dedicated R&D centers and teams for product innovation and improvements
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New range of product launches every season
Mallcom (India) Ltd
2
COMPANY OVERVIEW
Mallcom India Ltd was founded in 1983 by Mr. Ajay Mall as a small leather gloves manufacturer headquartered out of Kolkata, India.
Today it has grown to become one of the largest manufacturers and distributors of Personal Protective Equipment (PPE) products in India, with over 90% of orders coming from repeat customers.
An ISO certified and government-registered trading house, Mallcom provides a onestop solution for manufacturing one of the widest range of head-to-toe PPE products from helmets, eyewear, ear protection, face masks, safety garments, gloves, to shoes, and many more.
The company is also one of the largest exporters of PPE products from India exporting to 55+ countries across 6 continents.
It has an expansive manufacturing footprint with 13 production facilities spread across India and captive test labs that ensure quality standards.
Over the year the company has focused on backward integration wherever possible resulting into significant cost savings and gradual margin expansions.
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Operational Revenue (INR Mn) and EBITDA Margins (%)
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4 0 , 0 3,572 2 5.0 0%
3 ,50 0 2,877 3,169 2 . 0 0%
3 0 , 0 1,980
2 ,50 0 1 5.0 0%
2 0 , 0
1 ,50 0 13.13% 13.91% 13.84% 1 . 0 0%
1 0 , 0
10.95% 5 . 0 %
5 0
- 0 . 0 %
FY20 FY21 FY22 H1-FY23
Operational Revenue (INR Mn) EBITDA Margin (%)
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H1-FY23 Geographical Revenue Mix (%)
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North America 3%
Australia 1%
South America
13%
Europe
42%
Asia
41%
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Mallcom (India) Ltd
3
BUSINESS OVERVIEW
-
Mallcom is a one-stop solution for all types of personal protective equipment providing the entire gamut of protection from Head to Toe.
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Mallcom is one of the few companies to have an indigenous expertise with various raw materials such as textile, leather, rubber, and plastic.
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Over three decades, the firm has gained immense knowledge and skillset to deal in an array of products such as safety helmets, face masks, leather gloves, textile gloves, nitrile gloves, safety apparels, rainwear, and safety shoes.
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The company also offers eyewear, ear protection equipment, latex gloves, neoprene gloves, and harnesses in its brand.
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H1-FY23 Product Revenue Matrix
Others
3%
Hand Safety Shoes
Protection 33%
36%
Garments
28%
Production 1.2M 3.6M 150M 14M
& Servicing Helmets Apparel Masks NBR Gloves
Annual
12M 2.8M 3M
Capacity
Leather Gloves Knitted Gloves Shoes
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FOOT BODY HAND HEAD PROTECTION PROTECTION PROTECTION PROTECTION Mallcom produces Mallcom’s exclusive Mallcom has Mallcom works sturdy shoes that workwear ranges gained expertise in in close can tackle from light-weight to production of hand coordination challenges in heavy-duty industrial gear suiting the with the construction, work wear. It also application designers and mining, makes winter requirement. the users to metallurgical and protection, provide dynamic From driving to other manufacturing uniforms, and head protection welding to cut industries. corporate casual gear. resistant, it is able wear. With an annual to meet crucial The company production capacity These provide high industrial manufactures of more than three protection and are applications. helmets, face million pairs, utilized in several masks, eyewear, A wide range of Mallcom is the sectors such as ear protection hand protection leading safety shoe hospitality, healthetc. gears lie in the manufacturer and care and for general repertoire of distributor from industrial purposes. Mallcom, including India. Special fabrics leather gloves, protects the wearer string knit gloves in environments and nitrile gloves. such as heat, fire, and extremely cold temperatures.
Mallcom (India) Ltd
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FINANCIAL OVERVIEW Q2/H1–FY23
CONSOLIDATED FINANCIAL HIGHLIGHTS
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Q2-FY23 Financial Performance:
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Operational Operational
Income EBITDA EBITDA Margin Income EBITDA EBITDA Margin
INR 154 Mn 13.91% INR 274 Mn
INR 1,107 Mn INR 1,980 Mn 13.84%
Net Profit
PAT Margin
Net Profit PAT Margin
INR 95
8.58%
INR 164 8.28%
Diluted EPS Diluted EPS
INR 15.19 INR 26.31
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Mallcom (India) Ltd
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Q2/H1-FY23 OPERATIONAL HIGHLIGHTS
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The company achieved its highest ever Quarterly Consolidated Turnover & Profit Before Tax in Q2-FY23.
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The growth in topline in Q2-FY23 was driven by equal growth contribution from all product segments led by Body Protection range achieving a growth of 37.8% QOQ.
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The improvement in EBITDA margin versus the previous quarter was mainly on account of Raw Material and administrative costs going down.
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Turnover ratio between Branded Sales Vs. Private Label Sales improved YOY from 34:66 to 37:63 in H1-FY23, with Branded Sales registering a growth of 34.65% YOY vis-a-vis 19.23% YOY growth for Private Label Sales in H1-FY23, signifying better brand recall and acceptance of the company’s products in local markets.
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Relatively lower Consolidated EBITDA margin of 13.80% in H1-FY23 has been also due to higher operational costs for the subsidiaries namely "Mallcom Safety Private Limited" & "Best Safety Private Limited" both SEZ units, where we expect to ramp up the productivity and operations further in H2-FY23.
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During the Quarter, the Ghatakpur (Kolkata) Unit, Phase - 1 for Safety Garments was made operational and with the manufacturing facility further being ramped up we expect additional contributions from the unit in H2-FY23.
Mallcom (India) Ltd
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QUARTERLY CONSOLIDATED FINANCIAL PERFORMANCE
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| Income Statement (INR Mn) | Q2-FY23 | Q2-FY22 | Y-o-Y | Q1-FY23 | Q-o-Q |
|---|---|---|---|---|---|
| Operational Income | 1,107 | 976 | 13.4 % | 874 | 26.7 % |
| Total Expenses | 953 | 828 | 15.1 % | 755 | 26.2 % |
| EBITDA | 154 | 148 | 4.1 % | 119 | 29.4 % |
| EBITDA Margins (%) | 13.91 % | 15.16 % | (125) Bps | 13.62% | 29 Bps |
| Depreciation | 22 | 21 | 4.8 % | 21 | 4.8 % |
| Finance Cost | 3 | 4 | (25.0) % | 4 | (25.0) % |
| Other Income | 1 | 5 | (80.0) % | 1 | NA |
| PBT | 130 | 128 | 1.6 % | 95 | 36.8 % |
| Tax | 35 | 32 | 12.5 % | 26 | 38.5 % |
| Profit After Tax | 95 | 96 | (1.0) % | 69 | 37.7 % |
| PAT Margins (%) | 8.58 % | 9.84 % | (126) Bps | 7.89% | 69 Bps |
| Non-Controlling Interests | 1 | - | - | 5 | (80.0) % |
| Other Comprehensive Income | 2 | 1 | NA | -1 | NA |
| Total Comprehensive Income | 96 | 97 | (1.0) % | 74 | 29.7 % |
| Diluted EPS (INR) | 15.19 | 15.36 | (1.1) % | 11.12 | 36.6 % |
Mallcom (India) Ltd
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HALF YEARLY CONSOLIDATED FINANCIAL PERFORMANCE
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| Income Statement (INR Mn) | H1-FY23 | H1-FY22 | Y-o-Y |
|---|---|---|---|
| Operational Income | 1,980 | 1,591 | 24.5 % |
| Total Expenses | 1,706 | 1,363 | 25.2 % |
| EBITDA | 274 | 228 | 20.2 % |
| EBITDA Margins (%) | 13.84 % | 14.33 % | (49) Bps |
| Depreciation | 42 | 36 | 16.7 % |
| Finance Cost | 8 | 7 | 14.3 % |
| Other Income | 2 | 11 | (81.8) % |
| PBT | 226 | 196 | 15.3 % |
| Tax | 62 | 50 | 14.0 % |
| Profit After Tax | 164 | 146 | 12.3 % |
| PAT Margins (%) | 8.28 % | 9.18 % | (90) Bps |
| Non – Comprehensive Income | 5 | - | NA |
| Other Comprehensive Income | 1 | 3 | (66.7) % |
| Total Comprehensive Income | 170 | 149 | 14.1 % |
| Diluted EPS (INR) | 26.31 | 23.4 | 12.4 % |
Mallcom (India) Ltd
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CONSOLIDATED HISTORICAL INCOME STATEMENT
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| Income Statement (INR Mn) | FY20 | FY21 | FY22 | H1-FY23 |
|---|---|---|---|---|
| Operational Income | 2,877 | 3,169 | 3,572 | 1,980 |
| Total Expenses | 2,562 | 2,753 | 3,075 | 1,706 |
| EBITDA | 315 | 416 | 497 | 274 |
| EBITDA Margins (%) | 10.95% | 13.13% | 13.91% | 13.84% |
| Depreciation | 56 | 58 | 83 | 42 |
| Finance Cost | 26 | 16 | 20 | 8 |
| Other Income | 5 | 32 | 31 | 2 |
| Exceptional Item | 15 | - | - | - |
| PBT | 253 | 374 | 425 | 226 |
| Tax | 64 | 91 | 109 | 62 |
| Profit After Tax | 189 | 283 | 316 | 164 |
| PAT Margins (%) | 6.57% | 8.93% | 8.85% | 8.28% |
| Non – Controlling Interests | - | 0 | 10 | 5 |
| Other Comprehensive Income | - | - | 0 | 1 |
| Total Comprehensive Income | 189 | 283 | 326 | 170 |
| Diluted EPS (INR) | 30.26 | 45.30 | 52.28 | 26.31 |
Mallcom (India) Ltd
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CONSOLIDATED BALANCE SHEET
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| PARTICULARS (INR MN) | FY21 | FY22 | H1-FY23 | PARTICULARS (INR MN) | FY21 | FY22 | H1-FY23 | |
|---|---|---|---|---|---|---|---|---|
| Assets | Equity and Liabilities | |||||||
| 1. Non-Current Assets: | 695 | 857 | 948 | 1. Equity | 1,468 | 1,764 | 1,955 | |
| (a) Property, Plant and Equipment's | 474 | 629 | 845 | Equity Share Capital | 62 | 62 | 62 | |
| (b) Intangible Assets | 45 | 43 | 82 | Other Equity | 1,353 | 1,660 | 1,854 | |
| (c) Capital Work In Progress | 146 | 147 | 0 | |||||
| Minority Interest | 53 | 42 | 38 | |||||
| (d) Financial Assets | ||||||||
| 2. Non-Current Liabilities | 42 | 124 | 115 | |||||
| (i) Loans | 10 | 10 | 9 | |||||
| (a) Long Term Borrowings | 36 | 60 | 56 | |||||
| (e) Non - Current Tax Assets (Net) | 20 | 28 | 11 | |||||
| (b) Other Financial Liabilities | - | 60 | 56 | |||||
| 2. Current Assets | 1,830 | 1,934 | 2,168 | |||||
| (c) Deferred Tax Liabilities | 6 | 4 | 3 | |||||
| Inventories | 572 | 715 | 861 | |||||
| 3. Current Liabilities | 1,015 | 903 | 1,047 | |||||
| Financial Assets | ||||||||
| (i) Financial Liabilities | ||||||||
| (a) Investments | 188 | - | 236 | |||||
| (a) Short-Term Borrowings | 533 | 474 | 661 | |||||
| (b) Trade Receivable | 482 | 694 | 546 | |||||
| (b) Trade Payables | 363 | 354 | 296 | |||||
| (c ) Cash and Cash Equivalents | 40 | 39 | 29 | |||||
| (d) Other Bank Balances | 267 | 247 | 162 | (c) Other Financial Liabilities | 37 | 10 | 10 | |
| (e) Loans | 1 | 1 | 1 | (ii) Other Current Liabilities | 81 | 65 | 81 | |
| Other Current Assets | 280 | 238 | 335 | (iii) Provisions | 1 | - | 0 | |
| Total Assets | 2,525 | 2,791 | 3,117 | Total Equity and Liabilities | 2,525 | 2,791 | 3,117 |
Mallcom (India) Ltd
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CONSOLIDATED FINANCIAL PERFORMANCE
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Operational Income (INR Mn)
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3,572
3,169
2,877
1,980
FY20 FY21 FY22 H1-FY23
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EBITDA (INR Mn) and EBITDA Margins PAT (INR Mn) and PAT Margins (%)
600 (%) 60. 00% 350 316
497 300 283
500 50. 00%
416
250
400 40. 00% 189
315 200 164
274
300 30. 00%
150
200 20. 00% 100
8.93% 8.85%
100 10. 00% 50 6.57% 8.28%
13.13% 13.91% 13.84%
10.95%
0
0 0. 00%
FY20 FY21 FY22 H1-FY23
FY20 FY21 FY22 H1-FY23
PAT (INR Mn) PAT Margin (%)
EBITDA (INR Mn) EBITDA Margin (%)
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PAT (INR Mn) and PAT Margins (%)
30.00% 28.00% 26.00% 24.00% 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
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Dividend (INR/share)
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3.00 3.00
2.00
FY20 FY21 FY22
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Net Worth (INR Mn)
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1,955
1,764
1,468
1,102
FY20 FY21 FY22 H1-FY23
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Net Debt to Equity (x)
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0.28
0.26
0.18
0.14
FY20 FY21 FY22 H1-FY23
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Mallcom (India) Ltd
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CAPITAL MARKET DATA
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Share Price Data as on 30th September 2022
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Mallcom Sensex
50%
40%
30%
20%
10%
0%
-10%
-20%
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Shareholding Pattern as on 30th September 2022
Price Data (As on 30th September 2022)
FPI
Face Value (INR) 10.0
0.75%
Market Price (INR) 680.8
Public
52 Week H/L (INR) 985.0/605.6
25.47%
Market Cap (INR Mn) 4,248.2
Promoter
Equity Shares Outstanding (Mn) 6.2 73.78%
1 Year Avg. Trading Volume (‘000) 3.8
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Mallcom (India) Ltd
13
DISCLAIMER
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Mallcom India Ltd.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Mallcom India Limited (“Company”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. Please note logo’s of other brands used in the presentation are not Mallcom’s and should not have an IP issue
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
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For further details please contact our Investor Relations Representatives: VALOREM ADVISORS
Mr. Anuj Sonpal Tel: +91-22-49039500 Email: [email protected]
Mallcom (India) Ltd
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THANK YOU
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