Sarla Performance Fibers Ltd

sarla performance fibers

About the Company:

Sarla Performance Fibers Limited (formerly known as Sarla Polyester Limited) is engaged in the manufacturing and export of polyester and nylon textured, twisted and dyed yarns, covered yarns, high tenacity yarns and sewing thread.

Started as a manufacturer of commodity yarns, the company has successfully shifted its focus and established itself as a manufacturer of specialized and higher value added yarns.

Company is a leading exporter of Regular as well as High Tenacity Polyester and Nylon Yarns.

It has an installed capacity of 11,900 tons per annum for manufacturing yarns in Silvassa and 3200 tons per annum for a Dyeing unit at Vapi.

Its state of the art 30 tons per day POY plant in Walterboro, South Carolina in the US is operating at 30% plus capacity. The company exports to 45 countries.

With clients in all major countries across the globe & a presence in key international locations, SPFL has developed a strong customer base.

Company has also Setup wholly owned subsidiary “Sarla Flex Inc” in USA.

Company also owns Wind Power Capacity of 14.75 MW in totality,located in different stats ie. 6 MW is in the state of Maharashtra,5.75 MW in the states of Gujarat and 3 MW in the state of Madhya Pradesh.

Sarla Performance Fibers Ltd export to over 45 countries and to 105 customers.Company’s customer concentration is well distributed and no single customer exceeds more than 10% of their revenue.

Some of the Prestigious Clients include:

  • Jockey.
  • Hanes Brands.
  • Vardhaman Textiles.
  • Russell.
  • Anvil.
  • Coats.

 

Subsidiaries of the Company:

  1. Sarla Overseas Holdings Ltd (BVI)
  2. Sarlaflex Inc. (USA)

 

Company’s customer segments can be divided into four parts:

  1. Innerwear, Narrow Fabrics, Hosiery and Sportswear.
  2. Threads.
  3. Industrial Yarn.
  4. Regular Yarn.

 

Region wise Revenue Breakup :

Region (% of Total)
America 17.60
Middle East, Europe 40.25
Africa 3.82
Asia Pacific 38.33
Total 100%

 

Segment wise Revenue Breakup :

Segment (% of Total)

Innerwear, Sports wear, Narrow Fabrics,Hosiery

37.50

Threads

32.45
Industrial Yarns 12.45
Regular Yarns 17.60
Total 100%

 

Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17
Revenue  233.54  246.06 266.93  297.6  304.7
Net Profit  19.48  22.27  29.68  45.1  41.2
OPM (%) 16.64 18.49 21.15  29.57 26.46
NPM (%)  8.34 9.05 11.12 17.52 15.97

 

Also Watch (Detailed Analysis Inside this Video):

 

Positives for the Company:

  • Experienced Management Team.
  • Consistent Dividend payer.
  • Operating at High Profit Margins.
  • OPM & NPM has almost Doubled Since last 4 years.
  • Capacity Utilization Levels at USA Plant (Currently 15-20%) is expected is increase.
  • Reputed Client list across 45 countries.
  • Promoters have started to increase their Stake.(March 17-55.23%) – (Sep 17 -55.51%)
  • Currently Trading at attractive Valuations.(PE around 10)
  • Current Market Price is around Rs.54.50 and market cap is around Rs.455 Crores
  • Should Give Good returns in the long term.

 

 

 

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