Polycab India Ltd. · NSE:POLYCAB

Polycab India — FY2023 Earnings Presentation

56 slides from Polycab India's earnings presentation, May 12, 2023

  1. Slide 1: Filing cover letter to stock exchanges

    POLYCAB INDIA LIMITED CIN: L31300GJ1996PLC114183 #29, The Ruby, 21st Floor, Senapati Bapat Marg, Tulsi Pipe Road, Dadar (West), Mumbai -400028 Tel: +91 22 2432 7070-74 Email: shares@polycab.com Website: www.polycab.com Date: 12th May 2023 To To Department of Corporate Services Listing Department BSE

  2. Slide 2: Corporate Presentation May 2023

    Corporate Presentation May 2023 Polycab India Limited | FY23 Corporate Presentation

  3. Slide 3: Content

    Content 1. Company Overview 2. Leadership in Wires & Cables 3. Well Established FMEG Business 4. Strengthening Brand Recognition 5. Strong Manufacturing and R&D capabilities 6. ESG 7. Robust Financials 8. Project LEAP 9. Corporate Governance 10. CSR 11. Shareholding Pattern

  4. Slide 4: Company Overview

    Company Overview Polycab India Limited | FY23 Corporate Presentation

  5. Slide 5: Polycab: A Snapshot

    Polycab: A Snapshot #1 Manufacturer in India PAN India Network Well-footed FMEG player Market leader in Wires & Cables1 ~4,300+ Dealers & 7-year CAGR at ~30% ~22-24% Share of Organized Distributors Market2 Well balanced product 2,05,000+ Retail Outlets portfolio; 7,000+ SKUs Manufacturing Footprint

  6. Slide 6: Our Journey

    Our Journey Promoters IPO: Listing on BSE and Set up a facility for PVC Investment from IFC Forayed into the Manufacturing of Launched Polycab Expert established the NSE on 16 April 2019. insulated power cables of ₹ 4,018 Mn switches segment ceiling fans at Roorkee, Program business 52x over subscri

  7. Slide 7: Our Segments: An Overview

    Our Segments: An Overview % of External Sales 89% Wires & Cables 9% FY 23 Total Revenue Fast Moving 141,078 Mn Electrical Goods 2% Copper + Other Notes: Consolidated Revenue in ₹ Mn, Rounded off (incl. EPC) Polycab India Limited | FY23 Corporate Presentation 6

  8. Slide 8: Structural Growth Drivers

    Structural Growth Drivers Current opportunity landscape provides highly conducive environment for exponential business growth in the medium-to-long term Consumption Infrastructure • Urbanization • National Infrastructure Pipeline • Nuclearization of families • Capex uptick in power, railways, • Grow

  9. Slide 9: Key Management Initiatives to Create Value

    Key Management Initiatives to Create Value Enhance Brand Awareness and Customer Loyalty Improvement in Supply Chain Focus on Profitable growth Expansion of Manufacturing Capacity Governance & performance based culture Improvement in Production Process Working on Sustainable development Expansion of

  10. Slide 10: i-POWER

    i-POWER Purpose Values We innovate for a brighter living Innovative mindset Giving wings to novel ideas Caring about our people and Our innovative, safe and energy efficient products and People at the core their growth solutions delight our customers Serving to create delightful Obsession for the cu

  11. Slide 11: Leadership in Wires & Cables

    Leadership in Wires & Cables Polycab India Limited | FY23 Corporate Presentation 10

  12. Slide 12: Market Leader in Wires & Cables With a Diverse Portfolio

    Market Leader in Wires & Cables With a Diverse Portfolio Polycab is the largest Wires and Cables manufacturer in Wide Customer Base across Industries… India, with a strong suite of products… Optical Fiber Power Cable Building Wires Cable Power Oil and Gas Construction FR (Flame Retardant) IT Park In

  13. Slide 13: Dominant position in Wires and Cables Industry

    Dominant position in Wires and Cables Industry Market Size ~ 680 – 730 Bn (~40–45% of the electrical equipment industry) Healthy Market Share Gains in Wires & Cables over the past few years Market Share in FY23(1) FY23 Wires & Cables Revenue(2) 22-24% 15-16% 1.9x 2.3x Organized Market Total Market T

  14. Slide 14: Economic Moat in Wires & Cables Business

    Economic Moat in Wires & Cables Business Only Manufacturer of all types of Wires & Cables in India Polycab has the most extensive range of wires and cables in India, with 12,000+ SKUs and global certifications Strong Channel Relationships Superior Quality Products Strong relationships with channel p

  15. Slide 15: International Business Opportunities in Focus

    Opportunities in Focus Supply Chain Diversification Certifications & Approvals Setting up Distribution Network International India gaining from global search Actively working on certifications Looking to replicate distribution Business for China’s supply chain alternative. Polycab being largest and

  16. Slide 16: Well Established FMEG Business

    Well Established FMEG Business Polycab India Limited | FY23 Corporate Presentation 15

  17. Slide 17: FMEG: Expanding presence in 'Electricals' ecosystem

    FMEG: Expanding presence in ‘Electricals’ ecosystem FMEG is now a sizeable part of the business - growing at 30% CAGR in past 7 years Mobile App Forayed in FY14 ... ▪ Diversified portfolio with focus on the upcoming industry trends ▪ Inhouse Manufacturing ▪ Strong Backward Integration ▪ Pan India Di

  18. Slide 18: High Growth Opportunity in the Indian FMEG Industry

    High Growth Opportunity in the Indian FMEG Industry Macro drivers include evolving consumer aspirations, increasing awareness, rising income, rural electrification, urbanisation, digital connectivity, smart home solutions Fans & Appliances Switches LV Switchgear Lighting 144 Bn 83 Bn 22 Bn 204 Bn ▪

  19. Slide 19: Growth Engine

    Growth Engine Distribution Expansion Premiumization Rejig of distribution channel to the super- Leveraging product innovation and brand distributor model for faster scale-up of building activities to drive sales of premium business. Adopting alternate sales platforms products, which are margin accre

  20. Slide 20: Multi Format Retail Approach: Polycab Galleria, Arena & Shoppee

    Multi Format Retail Approach: Polycab Galleria, Arena & Shoppee ❑ Strategic showcase enabling consumers and trade constituents to experience and choose from a wide range of quality products ❑ At iconic electric markets hub which is also an important feeder market to western and southern India ❑ Equi

  21. Slide 21: Strengthening Brand Recognition

    Strengthening Brand Recognition Polycab India Limited | FY23 Corporate Presentation 20

  22. Slide 22: Strong Brand Recognition in the Electricals Industry

    Strong Brand Recognition in the Electricals Industry.. Our Brand Journey from B2B to B2C ‘Connection Zindagi Ka’ was a hit with customers- the impactful narrative with their minds and hearts Corporate Commercial, Official Sponsor Ayushmann Khurana Elevated our brand (Actor) amongst Top 3 in house wi

  23. Slide 23: Strengthening Brand Using Multi-Pronged Approach

    … and Strengthening it Further Using Multi-Pronged Approach Advertising and Sales Promotion Expenditure ( ₹ Mn) 1,244 163 FY14 FY23 Multi-pronged approach Actively engage Dealers Loyalty Points via Experts Increased Advertising on to increase brand and Distributors Program Social Media and Sales awa

  24. Slide 24: Pan-India Distribution Network

    Pan-India Distribution Network to Support Diverse Customer Base and Product Categories By Product By Geography 25% 28% West Wire & Cables South ~4,300 authorized dealers & distributers FMEG 46% North 28% Common 22% 29% East ~3,000 FMEG dealers and distributors pan-India 22% 205,000+ retail outlets S

  25. Slide 25: Catering to Marquee Customers

    Catering to Marquee Customers Total Revenue Contribution in FY23 Oil & Gas Top Customer 5% Top 5 Customers 14% Metal Export Top 10 Customers 22% Rest of the 78% Infrastructure Customers Paints Revenue from International Business (% of total revenue) Chemicals Auto 12.4% 9.8% Cement Telecom 8.5% 7.6%

  26. Slide 26: Strong Manufacturing and R&D Capabilities

    Strong Manufacturing and R&D Capabilities Polycab India Limited | FY23 Corporate Presentation 25

  27. Slide 27: Inhouse Manufacturing with High Backward Integration and Automation

    Inhouse Manufacturing with a High Degree of Backward Integration and Automation… Multi-location manufacturing (Products1; Annual capacity) Roorkee Fans 4.2mn Halol Fan Manufacturing Unit Halol & Daman Wires & Cables 5.4mn kms Fans 6mn Nashik Switches 12mn Switchgears 12.0mn Pipes & Conduits: 24,960

  28. Slide 28: Strong R&D & Innovation Capabilities with Quality Assurance

    …Strong R&D & Innovation Capabilities with Quality Assurance Investments in in-house R&D capabilities with strong Green Wire focus on backward integration Our ecological initiative Launched Green Wire - an energy efficient and environment-friendly • NABL ISO 17025 certified R&D centre to support own

  29. Slide 29: ESG

    ESG Polycab India Limited | FY23 Corporate Presentation 28

  30. Slide 30: Polycab's ESG Strategy

    Polycab’s ESG Strategy Polycab’s Purpose - "We innovate for a brighter living“. • Our innovative, safe and energy efficient products and solutions delight our customers • Our vibrant and inclusive culture leads to deep connections, value creation and growth for our People, Partners and Stakeholders

  31. Slide 31: Polycab's ESG Approach

    Polycab’s ESG Approach Verification Understanding Communicating ESG Developing Refining Measuring through internal stakeholder needs Establishing ESG Performance through ESG roadmap and operations & impact and audits and and material ESG Governance risks ownership processes improving external Report

  32. Slide 32: Robust Financials

    Robust Financials Polycab India Limited | FY23 Corporate Presentation 31

  33. Slide 33: Proven Track Record of Financial Performance

    Proven Track Record of Financial Performance PAT Margin % Revenue (₹ Mn) EBITDA (₹ Mn) EBITDA Margin % PAT (₹ Mn) 13.1% 8.7% 9.1% 12.8% 12.6% 8.4% 11.9% 6.9% 6.3% 10.3% 1,41,078 18,429 12,823 1,22,038 12,626 8,452 88,300 87,922 11,276 11,117 7,656 7,415 79,856 9,504 5,003 FY19 FY20 FY21 FY22 FY23 FY

  34. Slide 34: Proven Track Record of Financial Performance

    Proven Track Record of Financial Performance ROCE/ROE (%) Debt/Equity ratio (times) Improving returns and surplus ROCE ROE ROCE Post Tax cash to fuel future growth 27.9% 0.10x 26.4% 25.9% 20.7% 20.4% 19.4% 20.0% 17.5% 0.05x 15.4% 15.2% 0.04x 18.5% 19.9% 19.2% 15.4% 0.02x 15.5% 0.01x Growth Funded by

  35. Slide 35: Consolidated Profit and Loss Statement

    Consolidated Profit and Loss Statement Particulars ( ₹ Mn) FY 2023 % FY 2022 % FY 2021 % Revenue from Operation 1,41,078 100.0% 1,22,038 100.0% 87,922 100.0% Cost of Goods sold 1,05,109 74.5% 94,657 77.6% 65,171 74.1% 34 Contribution (A) 35,969 25.5% 27,381 22.4% 22,751 25.9% Employee cost 4,568 3.2

  36. Slide 36: Consolidated Balance Sheet

    Consolidated Balance Sheet Particulars ( ₹ Mn) FY 2023 FY 2022 FY 2021 Particulars ( ₹ Mn) FY 2023 FY 2022 FY 2021 Assets Equity & Liabilities Shareholder's Funds Non-Current Assets 35 Share Capital 1,498 1,495 1,491 Fixed Assets 23,177 20,598 19,805 Reserves and Surplus 64,814 53,943 46,048 Non-cur

  37. Slide 37: Consolidated Annual Cash Flow Statement

    Consolidated Annual Cash Flow Statement Particulars ( ₹ Mn) FY 2023 FY 2022 FY 2021 FY 2020 Net Cash Flow from Operating Activities 14,275 5,116 12,524 2,446 Net cash flow from/(used in) investing activities -12,026 -4,270 -10,121 -2,622 Net cash flow from/(used in) financing activities -2,271 -2,00

  38. Slide 38: Key Highlights

    Key Highlights Top-line (Revenue) Operating (EBITDA) Operating (EBITDA) Profitability (PAT) Profitability (PAT) Q4 FY23: 43,237 Mn Q4 FY23: 6,032 Mn Q4 FY23: 4,284 Mn 9% YoY 27% YoY 32% YoY 16% QoQ 20% QoQ 19% QoQ FY23: 1,41,078 Mn FY23: 18,429 Mn FY23: 12,823 Mn 16% YoY 46% YoY 52% YoY Mobile App P

  39. Slide 39: Consolidated Profit and Loss Statement

    Consolidated Profit and Loss Statement Quarter Year To Date Particulars (₹ Mn) Q4 FY23 % Q3 FY23 % Q4 FY22 % FY23 % FY22 % Revenue from Operations 43,237 100.0% 37,152 100.0% 39,700 100.0% 1,41,078 100.0% 1,22,038 100.0% Cost of Goods sold 32,357 74.8% 27,603 74.3% 30,892 77.8% 1,05,109 74.5% 94,657

  40. Slide 40: Consolidated Balance Sheet

    Consolidated Balance Sheet Particulars (₹ Mn) Mar-23 Dec-22 Mar-22 Particulars (₹ Mn) Mar-23 Dec-22 Mar-22 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 23,177 21,951 20,506 Share Capital 1,498 1,497 1,494 Non-current Deposits 6 7 126 Reserves and Surplus 64,814 6

  41. Slide 41: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement Quarter Year To Date Particulars (₹ Mn) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Net Cash Flow from Operating Activities 1,199 3,500 7,027 14,275 5,116 Net cash flow from/(used in) investing activities -946 -3,357 -6,440 -12,026 -4,270 Net cash flow from/(used in) financing

  42. Slide 42: Other Financial Metrics

    Other Financial Metrics Average Closing Working Capital Days FY23 FY22 FY21 FY23 FY22 FY21 Receivable Days 33 41 59 32 39 59 Inventory Days 89 81 108 102 85 110 Payable Days 71 67 102 85 63 102 Net Working Capital 51 54 65 50 61 67 Other Income (₹ Mn) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Interest incom

  43. Slide 43: Project LEAP

    Project LEAP Polycab India Limited | FY23 Corporate Presentation

  44. Slide 44: Project Leap

    Project Leap A multi year transformation journey Energize B2B I Strengthen leadership Breakout growth in B2C I Position to win ▪ Recalibrate business model ▪ Create a winning variant ladder ▪ Refine value proposition ▪ Redefine brand architecture ▪ Micro market analytics ▪ “Digital-first” led execut

  45. Slide 45: Project LEAP: Progressing Well Towards Achieving FY26 Goals

    Project LEAP: Progressing Well Towards Achieving FY26 Goals ➢ Direct quotes from Polycab more than doubled in FY23, indicating a strong shift towards control over pricing, market Customer dynamics and direct dealing with customers ➢ Merger of HDC and LDC verticals made meaningful progress in unlocki

  46. Slide 46: Project Leap: Key Themes & Priorities for the Coming Year

    Project Leap: Key Themes & Priorities for the Coming Year B2B Business Focus on reach expansion, demand generation, CRM digitalization & and increased use of analytics Strengthen Core Power Business (Wires) Organization Structure & Hiring Distribution expansion, new product launches, Strengthening t

  47. Slide 47: Corporate Governance

    Corporate Governance Polycab India Limited | FY23 Corporate Presentation 46

  48. Slide 48: Leadership Team - Board of Directors

    Leadership Team - Board of Directors Inder T Jaisinghani Bharat A Jaisinghani Nikhil R Jaisinghani Rakeshkumar Talati Gandharv Tongia Chairman and Managing Director Whole-Time Director Whole-Time Director Whole-Time Director Whole-Time Director RS Sharma TP Ostwal Pradeep Poddar Sutapa Banerjee Manj

  49. Slide 49: Leadership Team - Management

    Leadership Team - Management ▪ Blend of Entrepreneurial and Professional Management ▪ Professionals with Prior Experience in Bajaj, CEAT, Crompton, Havells, Orient, Panasonic, SRBC & Co, Tata Group, Unilever, Vedanta etc. ▪ Vision to Execute Strategies in a Dynamic Environment ▪ Extensive Relationsh

  50. Slide 50: CSR

    CSR Polycab India Limited | FY23 Corporate Presentation 49

  51. Slide 51: Our Social Responsibility – A Philosophy of Empathetic Care

    Our Social Responsibility – A Philosophy of Empathetic Care Health Education Rural development Roughly 120-130 patients per day were Renovated 4 schools in rural areas to Constructed new check dams to raise benefited by Mobile Medical Unit provide better infrastructure for the ground water table , e

  52. Slide 52: Shareholding Pattern

    Shareholding Pattern Polycab India Limited | FY23 Corporate Presentation 51

  53. Slide 53: Shareholding Pattern

    Shareholding Pattern 14.7% Promoters DII FII 66.2% QIB + AIF Others Note: As on 31st March 2023. DII (Domestic Institutional Investors) includes “Mutual Funds”. FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB/ AIF stands for "Qualified In

  54. Slide 54: Enhancing Shareholder Value

    Apr'19 May'19 Jun'19 Jul'19 Aug'19 Sep'19 Oct'19 Nov'19 Dec'19 Jan'20 Feb'20 Market Cap Mar'20 Apr'20 (as of 31st March 2023) Market Cap in USD calculated using USD ₹ spot rate of 82 May'20 Polycab India Limited | FY23 Corporate Presentation Jun'20 POLYCAB Jul'20 ₹ 431 Bn (USD 5.3 Bn) Aug'20 Enhanci

  55. Slide 55: Safe Harbour

    Safe Harbour This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expression

  56. Slide 56: Thank You

    Polycab India Limited Contact us THANK YOU For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com

Polycab India — FY2023 Earnings Presentation on 6ix