Slide 1: Polycab India Limited Corporate Presentation
Polycab India Limited Corporate Presentation June, 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Polycab India 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 securit
Slide 3: Agenda
AGENDA ➢Company Overview ➢Financial Performance ➢Promoters and Management Team ➢Financial Statement
Slide 4: Polycab: A Snapshot
Polycab: A Snapshot One of India’s Leading Electricals Brand with INR 80bn revenues(1) c.18% Organized and c.12% #1 Manufacturer of Exports to 40+ countries 1 Total Market Share(3) Over Last 3 Years Wires and Cables(2) c.51% Growth Diverse Product Portfolio 2 Fast Growing FMEG business CAGR over acr
Slide 5: Our Journey
Our Journey • Promoters established the • Company incorporated on Jan 10, • Set up manufacturing facility for PVC • Crossed INR 10,000mn in revenue business; manufacturing from Halol 1996 insulated power cables house wires, plant telephone cables, optical fibre cables, switch board cables and quad c
Slide 6: Key Management Initiatives
Key Management Initiatives Focus on Profitability and Growth Induction of Qualified Professionals Expansion of Distribution Network Enhance Brand Awareness and Customer Loyalty Improvement in Production Processes Expansion of Manufacturing Capacity Improvement in Supply Chain Invest in CRM Programme
Slide 7: One of India's leading Electricals brand - a market leader in India's Wires & Cables
One of India’s leading Electricals brand - a market leader in India’s Wires & Cables (W&C) industry and fast growing player in the FMEG category Diverse suite of electrical products W&C market leader (1) FY19 Financials (INR mn) • Wires & Cables - Power cables, control cables, c.18% market share of
Slide 8: Infrastructure Development
Strong political mandate to give impetus to Infrastructure and Industrial Growth ✓ DDUGJY(1): 5,934 Rural Electrification projects ✓ National Solar Mission : 40-41 GW capacity addition Infrastructure Development ✓ Housing for All by 2022 targeting 20mn households ✓ Smart Cities Mission: Core infrast
Slide 9: Market leader in wires and cables with a diverse suite of products
Market leader in wires and cables with a diverse suite of products and a healthy growth rate Market leader in W&C… Market leader in W&C… • Largest W&C manufacturer in India, in • Institutional and retail customers in different industries terms of segment revenues, with a market • Made-to-stock: base
Slide 10: Wires & Cables - Attractive market opportunity & strong leadership position
Wires& Cables - Attractive market opportunity & strong leadership position Wires & Cables Poised for Faster Growth(1)… Polycab is a Market Leader in Wires and Cables Segment… In FY18: Wires and Cables industry was: FY19 Wires and Cables Revenue Polycab’s Market Share in FY18 (INR bn) 40 – 45% of the
Slide 11: Expanding presence in 'Electricals' ecosystem - Fast growing FMEG business
Expanding presence in ‘Electricals’ ecosystem - Fast growing FMEG business Comprehensive product portfolio w ith focus on the upcoming industry trends • Launched Switches business in FY14 • Diversified into the FMEG segment in FY15 • Key FMEG products include – electric fans, LED lighting and lumina
Slide 12: High Growth Opportunity in the Indian FMEG Industry
High Growth Opportunity in the Indian FMEG Industry Fans(1) Switches(2) Switchgear(3) Lighting(4) Water Heater(5) 63 80 111 30 40 62 139 183 286 142 212 301 12 18 32 Domestic 22 12 23 60 10 Industry 20 19 10 18 74 Opportunity 89 11 50 19 263 99 241 5 7 22 44 60 30 120 165 138 (INR bn) 19 43 7 11 FY1
Slide 13: Strong Brand Recognition in the Electricals Industry
Strong Brand Recognition in the Electricals Industry Leveraged the “POLYCAB” brand to expand the customer base, cross-sell products & expand internationally Advertising and Sales Promotion Expenditure Increased (INR mn) 0.4% 1.5% Multi-Pronged As % of Sales Actively Loyalty Points Advertising 1159 A
Slide 14: Multi-location manufacturing, high degree of backward integration
Multi-location manufacturing, high degree of backward integration Multi-location manufacturing… Product (1) Location Annual Capacity Wires & Cables (in kms) Halol/ Daman 3.5 million • 24 manuf acturing f acilities, across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of
Slide 15: Supported by strong R&D, innovation and quality initiatives
…supported by strong R&D, innovation and quality initiatives … have led to innovations in our product Investments in in-house R&D capabilities… range • NABL ISO 17025 certif ied R&D center; ~90 engineers and technicians working on R&D projects • Flame retardant elastomeric compounds, f lame retardan
Slide 16: Pan India distribution network supporting our diverse customer base
Pan India distribution network supporting our diverse customer base and product categories Our distribution reach Pan India distribution across product categories • 3,100+ authorized dealers and distributors Common for West East • 100,000 retail outlets W&C and FMEG 21% 22% Wires and 16% • Sales and
Slide 17: Proven track record of financial performance (1/2)
Proven track record of financial performance (1/2) Revenue (Rs. mn) EBITDA (Rs. mn) PAT (Rs. mn) 10.6% 5.7% 23.2% 17.5% 9.6% 9.6% 10.5% 11.7% 12.7% 3.4% 3.6% 4.4% 5.3% 6.3% 79,560 10,142 67,703 7,934 5,003 52,075 55,040 47,081 5,796 3,586 4,512 4.979 2,406 1,603 1,880 FY15 FY16 FY17 FY18 FY19 FY15 F
Slide 18: Proven track record of financial performance (2/2)
Proven track record of financial performance (2/2) ROCE/ROE Debt/Equity ratio Capital Expenditure (Rs. mn) 27.9% 0.44x 0.43x 2,994 2,793 21.0% 0.36x 0.34x 2,360 2,208 16.3% 15.2% 1,817 15.0% 17.5% 15.2% 10.5% 12.0% 0.10x 9.9% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Slide 19: Robust balance sheet as at March 2019
Robust balance sheet as at 31 March 2019 Enhancing shareholder value ROE ROCE Capex 17.5% 27.90% Rs. 2,793 mn Up 227 bps y-o-y Up 695 bps y-o-y Up 55% y-o-y Net Cash Debt/Equity Dividend Rs. 452 mn 0.10x Rs. 3/share Up from Rs. (7,897) mn Down from 0.34x in FY2018 Payout of c.10% Notes: (1) ROCE (Re
Slide 20: Promoters and Management team
Promoters and Management team Board of Directors Key Management Inder T. Jaisinghani Ajay T. Jaisinghani Manoj Verma Chairman and Whole-Time Director R. Ramakrishnan Bharat A. Jaisinghani Nikhil R. Jaisinghani Anil Hariani Anil Shipley Managing Director Chief Executive Director – FMEG Business Direc
Slide 21: Building Blocks to Implement Future Strategy
Building Blocks to Implement Future Strategy Focus Areas Strategy • Expand into new customer segments, geographies, products Enhance Leadership • Increase focus on international markets such as Africa, UAE etc. position in Wires 1 and Cables • Target growth sectors like mining, infra, renewables, te
Slide 22: Building Blocks to Implement Future Strategy (Cont'd)
Building Blocks to Implement Future Strategy (Cont’d) Focus Areas Strategy • R&D: Optimizing and automating production processes like ASRS(1) implementation and auto replenishment of inventories Continue to Invest in • Invest in CRM systems to enhance customer relationships and services 4 Technology
Slide 23: Polycab's Competitive Strengths will Continue to Drive Success
Polycab’s Competitive Strengths will Continue to Drive Success Operates in one of the Fast Growing Economies with Core Drivers for Electricals Sector Market leader in Wires and Cables in India Pan – India & Global Distribution Network and Exports to 40+ countries Multi – Location Manufacturing Capab
Slide 24: FY2019 Financial Performance
FY2019 Financial Performance
Slide 25: FY2019 highlights – Record Annual Performance
FY2019 highlights – Record Annual Performance 18% Revenue 28% EBITDA 40% PAT 11.7% 12.7% 5.3% 6.3% 79,560 67,703 10,142 5,003 7,934 3,586 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 Revenue EBITDA EBITDA Margin PAT PAT Margin ➢ Revenue growth of 18% primarily driven by growth in wires & cables and FME
Slide 26: FY2019 segmental performance
FY2019 segmental performance 14% Wires & Cables 33% FMEG FMEG 86% EPC Others Total Income 69,295 6,433 4,637 60,977 4,853 2,491 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 10.5% 12.1% 1.8% 1.2% 3.3% 4.3% EBIT 8,351 88 198 6,407 75 81 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 EBIT EBIT MARGIN EBIT EBIT
Slide 27: Quarterly trends
Quarterly trends Standalone Revenue & EBITDA margins FY18 FY19 ➢ Q4 FY2019 EBITDA margin at 11.0% Revenue : Rs. 67,587 mn Revenue : Rs. 79,106 mn EBITDA Margin : 11.7% EBITDA Margin : 12.8% − Movement in EBIDTA margins driven by sales and product mix 8.9% 9.8% 9.0% 17.2% 11.6% 11.7% 17.2% 11.0% − On
Slide 28: Q4 FY2019 highlights
Q4 FY2019 highlights Revenue EBITDA PAT 17.2% 17.1% 10.8% 8.9% 9.7% 5.6% 24,448 3,634 1,887 1,965 3,476 21,102 20,280 2,630 1,373 Q4 FY2018 Q3 FY2019 Q4 FY2019 Q4 FY2018 Q3 FY2019 Q4 FY2019 Q4 FY2018 Q3 FY2019 Q4 FY2019 EBITDA EBITDA Margin PAT PAT Margin Revenue growth of 16% in Q4FY19 vs Q4FY18 dr
Slide 29: Q4 FY2019 segmental performance
Q4 FY2019 segmental performance Wires and Cables Wires & Cables FMEG FMEG EPC Others Total Income 1,877 1,909 2,184 18,515 20,632 17,956 1,662 905 892 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 46 EBIT 3,181 3,040 11 131 2,095 83 -46 29 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3
Slide 30: Financial statements
Financial statements
Slide 31: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement (Rs. mn) FY2019 % FY2018 % FY2017 % FY2016 % FY2015 % Revenue from Operation 79,560 69,150 60,509 57,193 51,134 Less Excise Duty - 1,446 5,469 5,118 4,053 Net Revenue 79,560 100.0% 67,703 100.0% 55,040 100.0% 52,075 100.0% 47,081 100.0% RM Consumed 59,660 75.0%
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet (Rs. mn) FY2019 FY2018 FY2017 FY2016 FY2015 Assets Non-current Assets Fixed Assets 14,686 13,331 12,933 11,231 10,162 Financial / Non-current Assets 2,346 1,891 1,483 1,030 668 Total Non-current Assets 17,032 15,222 14,416 12,261 10,830 Current Assets Inventories 19,958 13
Slide 33: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (Rs. mn) FY2019 FY2018 FY2017 FY2016 FY2015 Profit before tax 7,561 5,668 3,686 2,707 2,452 Operating profit before working capital changes 3,499 2,774 2,231 2,474 2,406 (Increase) / Decrease in working capital 3,052 -3,418 -1,756 -2,098 -2,759 Cash generated from op
Slide 34: Consolidated Segment Wise Information
Consolidated Segment Wise Information Segment Information FY2019 FY2018 FY2017 FY2016 FY2015 Revenue Cable & Wire* 69,295 60,977 50,583 47,202 43887 FMEG 6,433 4,853 3,356 2,167 148 Others 4,637 2,491 1,720 2,825 3,046 Results Cable & Wire 8,351 6,407 4,234 3,580 3387 FMEG 75 88 28 -158 4 Others 198
Slide 35: Consolidated Profit and Loss Statement (Quarter wise)
Consolidated Profit and Loss Statement (Quarter wise) (Rs. mn) Q4FY19 % Q3FY19 % Q4FY18 % Revenue from Operation 24,448 20,280 21,102 Less Excise Duty - - - Net Revenue 24,448 100.0% 20,280 100.0% 21,102 100.0% RM Consumed 19,017 77.8% 14,432 71.2% 15,399 73.0% Contribution (A) 5,431 22.2% 5,848 28.
Slide 36: Shareholding pattern
Shareholding pattern Others 16% FPI 2% MF 3% IFC Promoter 10% 69% Note: As on April 15th 2019 36 Polycab India Limited – Corporate Presentation- June, 2019
Slide 37: Polycab India Limited
Polycab India Limited CIN: U31300DL1996PLC266483 Email - investor.relations@polycab.com www.polycab.com