Rr Kabel Ltd. · NSE:RRKABEL
Rr Kabel — Q4 FY24 Earnings Presentation
47 slides from Rr Kabel's earnings presentation, May 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by RR Kabel Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Q4 & FY24 – Results
Q4 & FY24 – Results 3
Slide 4: FY24: Ever Highest Revenue of more than INR 6.5 Bn
FY24 : Ever Highest Revenue of more than INR 6.5 Bn Revenue from Operations Operating EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) INR in Crs 6.7% 6.9% 6.6% 5.8% 7.0% 4.3% 4.3% 4.5% 3.4% 4.5% +17.8% +43.2% +57.0% 6,595 463 298 5,599 323 +14.3% +20.6% +15.7% 190 +10.9% +7.4% +2.6% 1,634 1,754 113
Slide 5: Operational Highlights
Operational Highlights Q4 FY24 Revenue-Mix FY24 Revenue-Mix Working Capital Management (in Days) (Domestic Vs Exports) (Domestic Vs Exports) Net 88 75 64 Working Capital (in Days) 76% 77% 74% 83% 63 63 60 17% 24% 23% 26% Q4FY23 Q4FY24 FY23 FY24 Domestic Export 39 36 Q4 FY24 Revenue-Mix FY24 Revenue-
Slide 6: Consolidated Profit & Loss Statement – Q4 & FY24
Consolidated Profit & Loss Statement – Q4 & FY24 Profit & Loss Statement (INR. Crs) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 1,754.1 1,516.5 15.7% 1,633.5 7.4% 6,594.6 5,599.2 17.8% Cost of Materials Consumed 1,340.1 1,252.3 1,148.1 4,942.6 4,369.8 Purchase of stoc
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (INR. Crs) Mar-24 Mar-23 ASSETS (Rs. Crs) Mar-24 Mar-23 Equity Share Capital 56.4 47.8 Property, Plant and Equipment 466.1 448.8 Instrument entirely equity in nature 0.0 415.2 Capital work‐in‐progress 163.6 43.6 Other Equity 1,772.1 956.7 Right -of- us
Slide 8: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Mar-24 Mar-23 Profit before Tax 406.1 256.0 Adjustment for Non-Operating Items 93.5 102.6 Operating Profit before Working Capital Changes 499.6 358.6 Changes in Working Capital -64.1 153.4 Cash Generated from Operations 435.5 512.0 Less: Direc
Slide 9: Company Overview
Company Overview 9
Slide 10: Overview
At Glance Founded in 1999. 4th largest player in the Indian Wires and Cables(W&C) industry by value in FY24 Overview Electrical conglomerate present in 85+ countries worldwide. Our products have 38 international certifications, distinguishing us in the Indian consumer industry Integrated In-house ma
Slide 11: Our Growth Journey
Our Growth Journey RR Kabel has operating history of 20+ years Business of Wires & Cables Diversifying into FMEG Trading -> Manufacturing Expanding Global Footprint o Commencement of o Established o Commencement of exports to the US o Commencement of o Got listed on NSE & BSE Operations; First manuf
Slide 12: Diverse Suite of Products
Diverse Suite of Products B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity Wire & Cables (Revenue - 88%) FMEG (Revenue - 12%) FY24- Revenue contribution 12
Slide 13: Our Strength to Drive Success
Our Strength to Drive Success Consumer Focused Brands Large Consumer Electrical Industry Diverse Suite of consumer electricals products Well Recognized Consumer Brands underpinned by focused R&D efforts with global certifications Large Scale Manufacturing Scaled B2C Business Technologically Advanced
Slide 14: Integrated Manufacturing Facilities
Integrated Manufacturing Facilities W&C: 100% In-House Manufacturing Pan-India Facilities Quality & Reliability 5 Facilities: 2 for W&C + 3 for FMEG In-house manufacturing Shorter time to market & cost competitiveness Backward integration Automation in Manufacturing(1) Waghodia Silvassa Capacity Cap
Slide 15: Wires & Cables (W&C)
Business Segments Wires & Cables (W&C) 15
Slide 16: Wires & Cables
Wires & Cables Wires & Cables Revenue 88* % Contribution Facility Waghodia & Silvassa Annual Capacity 4.2Mn ckm House wires, Industrial Product Category wires, Power cables & Special cables *FY24 16
Slide 17: Vast Product Basket of W&C
Vast Product Basket of W&C Wires Cables House Wires Power Cables LT Power Cable Medium & High Voltage Heat Resistant Wires Fire Resistant Wires Low Smoke Zero Halogen Power Cables Wires Applications Applications o Residential Buildings o Power Transmission o Commerical o Power Distribution o Public
Slide 18: Long-Term Industry Growth Drivers
Long-Term Industry Growth Drivers Indian Wires & W&C share of Indian FY24 to FY27 INR845bn Cables Market (FY24) 40% electrical industry (FY24) 13% CAGR Indian Wires and Cables Market Poised for Strong Growth.. ..Across all sub-sectors and a shift to branded players W&C Market Size (INR Bn) W&C Marke
Slide 19: Domestic Distribution Network
Domestic Distribution Network (As on Mar’24) …With a B2C Focused Portfolio Stronger Fundamental Drivers % B2C Revenue in W&C segment (FY24) 454k+ 26% Electricians Well-Recognized Brand Highest Share of B2C Revenue in Indian W&C industry 3.9k+ 74% Comprehensive product portfolio W&C Distributors B2C
Slide 20: Global Distribution Footprint
Global Distribution Footprint Product quality and global accreditations enabling growth ~26.0% Europe North Exports % of Revenue from Operations- FY24 America Middle East Asia ~10% Exports W&C to Pacific 67 Countries Market Share of W&C Exports from India ✓ RR Kabel is one of India’s largest exporte
Slide 21: Wires & Cables – Performance
Wires & Cables – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) 19.3% 8.3% 8.0% 8.7% 7.1% 8.6% +17.6% +43.4% 19.6% 5,830 504 +15.2% 4,959 +19.6% 352 6.5% +6.3% +15.1% 1,322 1,433 1,523 110 115 132 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23
Slide 22: Fast Moving Electrical Goods (FMEG)
Business Segment Fast Moving Electrical Goods (FMEG) 22
Slide 23: Fast Moving Electrical Goods (FMEG)
Fast Moving Electrical Goods (FMEG) Fastest growing FMEG player in listed category and with best improvement in gross margin Revenue 12* % Contribution Facility Roorkee, Bengaluru & Gagret ś Annual Capacity Fan- 3.3 Mn units Lights- 1.9mn units Fans, Lighting, Switches, Product Category Switchgears
Slide 24: Through a Wide FMEG Product Portfolio
…through a Wide FMEG Product Portfolio… Fans Lighting Ceiling Table Pedestal & Panel Lights Bulbs Down Lights Streetlights Exhaust Fans Fans Wall Fans Switches Appliances Modular Switches Water Heater Room Heater Irons Coolers MCB DB Premium Products 24
Slide 25: FMEG Industry Opportunity
FMEG Industry Opportunity INR1,026bn Indian FMEG Market (FY24) 8% FY24 CAGR to FY28E 77% Coverage of FMEG industry INR1,026bn FMEG Market Opportunity with Growth across all Sub-categories… Fans Lighting Switch & Switchgear Home & Kitchen Appliances Market Size (FY24) INR 150bn INR 240 bn INR 315bn I
Slide 26: Well-Poised for Growth in the FMEG Segment
Well-Poised for Growth in the FMEG Segment RR Kabel has built a wide FMEG portfolio and has a 3-Phased Journey to Capture Value Building Foundation Acquire and Consolidate Accelerate FMEG Revenue (INR Crs) CAGR +66.9% 765 641 275 194 204 Accelerate growth of FMEG business: FY20 FY21 FY22 FY23 FY24 •
Slide 27: FMEG – Performance
FMEG – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) +19.4% 765 +31.4% 641 -15 -12 -19 +15.2% 200 231 176 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 -70 -69 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Revenue Growth Pillars • Added 300+ Distributors & 10,000 retail touch points
Slide 28: New Launches have fueled growth
New Launches have fueled growth (18% of sale contribution) BLDC Effaire Liteair Bonsai 10W panel Spot Colorful Panel Decorative Amour NY Broadway Ovalo Rimless Surface Panel Ropelight Flood Lights 100W 150W Aether Flow Farris Ardor 10L/15L/25L Ardent 10L/15L/25L Halogen Heater Size & Color Droot 900
Slide 29: Strategy to Expand FMEG segment
Strategy to Expand FMEG segment Clear strategy in place to expand FMEG revenues Manufacture Value Added Products Presence Across Price Points Exclusive FMEG brand • Premium Decorative Fans, Downlight • Strengthen presence across economy, • Building ‘RR Signature’ brand for Panels, Switchgears premiu
Slide 30: Board of Directors
Board of Directors- Renowned promoter group, and independent director oversight Tribhuvanprasad Shreegopal Rameshwarlal Mahendrakumar Rameshwarlal Kabra Kabra Rameshwarlal Kabra Executive Chairman Managing Director & CEO Joint Managing Director • Promoter of the company • Promoter of the company • P
Slide 31: Professional Management Team- Extensive Experience
Professional Management Team- Extensive Experience Rajesh Babu Jain Sanjay Narnarayan Taparia Vivek Abrol CFO CEO, International Business CEO, FMEG 28 years 32 years 22 years Shishir Sharma Satishkumar Anandilal Agarwal Himanshu Navinchandra Parmar Vinod Parur Chief Sales Officer, Wires & Cables Chi
Slide 32: Testimony to Our Performance
Testimony to Our Performance Padma Shri Awardee The Best Practices RR Kabel Wins The ‘Best Padma Shri Awardee Trailblazer HR Great Place To Work- RR Kabel Wins The Shree Rameshwarlal Award In The Industry Construction & Shree Rameshwarlal Initiative Award Of The 2023 ‘Best Brand In Building Kabra Fe
Slide 33: R&D Certification & Innovation
R&D Certification & Innovation Innovative and quality products with multiple industry-first launches Innovation Team 38 International Product Certifications 82 focused on R&D Innovation Leader Canada Europe Europe Great Britain Europe 1st to introduce Low Smoke Zero Halogen Insulation Technology (“L
Slide 34: Industry Growth Drivers
Industry Growth Drivers Public and private investment outlay in infrastructure Policy reforms promoting production, exports and ease of Various policy interventions have been undertaken by GoI in the infrastructure doing business sector to boost India’s GDP and economic growth Various policy reforms
Slide 35: Our Focus on Environmental, Health, Safety and Sustainability Initiatives
Our Focus on Environmental, Health, Safety and Sustainability Initiatives Focus on sustainability & responsible growth Community Promoting Green Conserving Development Energy Water 1.45MW of solar capacity & 3.8 MW Recharging groundwater Kabel Star Scholarships of wind solar hybrid (1) through Rainw
Slide 36: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) Mission RRoshni is RR Kabel’s endeavour to achieve an empowered and educated India. We are dedicated towards making a positive and lasting change in the lives of rural India. Ekal Gramothan Foundation Key Activities: 2023-24 o Construction of Rural Employment Tr
Slide 37: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) EKAL GRAMOTHAN FOUNDATION Other Key Activites RR Gramothan Training & Research Center (GRC Jarangloi, Sundargarh, Orissa) o CTL (Computer training lab) o WEC (Women Empowerment center) o Organic Farming o Nutrition Garden o Electrical Wiring & Home Appliances Tr
Slide 38: Advertisement - Campaigned
Advertisement - Campaigned Multiple ATL and BTL initiatives to build a connect with key consumers and strengthening brand Multi-Pronged Approach to Increase Brand Awareness Outdoor Advertising Ad Campaigns with Broad Reach Strategically placed ads for Ad placement to emphasize Safety & Engaged a lea
Slide 39: Advertisement
Advertisement Brand Hoardings Exhibition Our Brand Ambassador Gate Branding Kabel Mela 37
Slide 40: Advertisement
Advertisement FIRE STATION POLICE STATION CRICKET ONGROUND BRANDING TOLL GATE ITI COLLEGE FILFARE AWARDS SPONSORSHIP 37
Slide 41: RR Kabel’s Strengths will Continue to Drive Success
RR Kabel’s Strengths will Continue to Drive Success… TAM Large Addressable Market + Strong Structural Drivers Distribution Pan-India Distribution + Global Footprint Well-Recognized Consumer Brand + Brand Operating History of 20+ years Diverse Products Wide Range of Wires & Cables + FMEG Products Exe
Slide 42: Annexure
Annexure 42 www.rrkabel.com
Slide 43: Performance in Charts
Performance in Charts Revenues EBITDA & EBITDA % PAT & PAT % INR in Crs 5.8% 7.0% 8.5% 7.0% 5.0% 4.9% 3.4% 4.5% +34% 6,594.6 +26% 462.8 +30% 298.1 5,599.2 4,385.9 307.4 323.3 213.9 189.9 231.2 135.4 2,723.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE (%) RoE (%) Debt to Equity (
Slide 44: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (INR. Crs) FY23 FY22 FY21 Revenue from Operations 5,599.2 4,385.9 2,723.9 Cost of Materials Consumed 4,369.8 3,575.5 2,173.2 Purchase of stock in trade 368.9 156.6 129.9 Changes in Inventories of Finished Goods and Work in Progress -162.9 -
Slide 45: Historical Balance Sheet
Historical Balance Sheet EQUITY & LIABILITIES (INR. Crs) Mar-23 Mar-22 Mar-21 ASSETS (INR. Crs) Mar-23 Mar-22 Mar-21 Equity Share Capital 47.8 23.9 23.9 Property, plant and equipment 448.8 383.7 386.0 Instrument entirely equity in nature 415.2 415.2 415.2 Capital work‐in‐progress 43.6 42.3 6.7 Other
Slide 46: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Mar-23 Mar-22 Mar-21 Profit before Tax 256.0 284.4 181.4 Adjustment for Non-Operating Items 102.6 62.5 73.0 Operating Profit before Working Capital Changes 358.6 346.9 254.5 Changes in Working Capital 153.4 -175.4 -283.7 Cash Generated from Op
Slide 47: Thank You
Thank You R R Kabel Limited Mr. Irfan Raeen CIN: L28997MH1995PLC085294 +91 9773 778669 Irfan.raeen@linkintime.co.in Name – Pratik Agarwal Title – GM - Corporate Affairs & Investor Relations Mr. Ronak Jain Email – investorrelations.rrkl@rrglobal.com +91 9820 950544 Ronak.Jain@linkintime.co.in