Kei Industries Limited · NSE:KEI
Kei Industries — Investor Presentation (May 2024)
43 slides from Kei Industries's investor presentation, May 2024
Slide 1: KEI Industries Limited Corporate Presentation
KEI INDUSTRIES LIMITED CORPORATE PRESENTATION MARCH, 24 1
Slide 2: Agenda
Agenda Company Overview 1 Company Strengths 2 3 Growth Strategy 4 Industry Prospects 5 Strengthening Brand Recognition 6 Key Financials 7 Appendix 2
Slide 3: Company Overview
Company Overview Overview Key Metrics Leading manufacturer of cables and wires with a wide product portfolio spread across • EHV, HT and LT Power Cables, House Wire, Stainless Steel Wire ISO 9001:2015 ISO 14001:2015 1,850+ 2,000+ Employees1 Institutional Forward integrated into EPC services for
Slide 4: Major Highlights
Major Highlights • ET 500 2023 KEI ranking is 283. • During FY 2019-20, Company had raised fund Rs. 500 Crore through QIP. • India Ratings and Research Private Limited has affirmed its long term ratings as AA (with positive outlook). ICRA and CARE long term rating is AA (Stable). Short term rating f
Slide 5: Consistently Evolving Business Model
Consistently Evolving Business Model Focus has been on expanding product portfolio De-risking business by increasing diversification Switch Entry into PVC EHV4 Cables New project – board cables power cable up SSW1 plant at Rubber Cables commercial EHV4 400 KV HW5 Plant at HT3 Cables (33 for DOT
Slide 6: Richly Experienced Management Team
Richly Experienced Management Team Mrs. Archana Gupta Mr. Akshit Diviaj Gupta Director Director Mr. Rajeev Gupta Mr. Manoj Kakkar Executive Director Executive Director (Finance) & CFO (Sales & Marketing) Mr. Anil Gupta Chairman-cum-Managing Director Mr. Lalit Sharma COO Mr. Adarsh Kumar Jain Vice Pr
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Wide product basket comprising: Extra-High Voltage Cables up to 400 KV High & Medium Voltage Cables Control & Instrumentation Cables Specialty Cables Submersible Cables Rubber Cables Solar Cables ESP Cables PVC/Poly Wrapped Winding Wires Flexible &
Slide 8: Company Strengths
Company Strengths Well diversified across multiple dimensions 1 Wide basket of products used across multiple industries Low customer concentration 2 Strategically located manufacturing facilities and Strong R&D capabilities Manufacturing facilities across 7 locations Strong R&D focus helps in new pr
Slide 9: Well Diversified Across Multiple Dimensions
Well Diversified Across Multiple Dimensions Wide Product Basket… …With applications across Industries Others, -1% EPC, 7% SSW, 3% EHV, 8% LT Power, 38% Real Estate Oil & Gas HW, WW, 29% Power Cement HT Cable, 16% Cable & Wires Railways Fertlisers Business (91%) FY241 Automobiles …Coupled with low cu
Slide 10: Strategically located manufacturing facilities & Strong R&D capabilities
Strategically located manufacturing facilities & Strong R&D capabilities Plant Locations and Key Capacities Plant Location Start Date Capacity (As of 31st March, 24) Cable – 54,800 Kms Chopanki Bhiwadi 1996 House Wire/WW – 190,000 Kms Bhiwadi Stainless Steel Wire – 9,000 MT Pathredi Cable –
Slide 11: Strategically located manufacturing facilities and Strong R&D capabilities
…. Strategically located manufacturing facilities and Strong R&D capabilities Pathredi Plant Bhiwadi Plant Chopanki Plant Adherence to the most stringent quality standards laid down by KEI Our products are tested by KEMA (The Netherlands), TUV (Rheinland), SGS, IRS, ABS, CEIL, BRE (UK), LLOYDS REGIS
Slide 12: Strong presence in retail segment with a well entrenched distribution network
Strong presence in retail segment with a well entrenched distribution network Increasing focus on retail… …With strong distribution network… 46% 47% 41% # of Dealers / # of Marketing Distributors1 Offices1 34% 29% North 726 9 South 378 7 FY20 FY21 FY22 FY23 FY24 Retail as a % of sales 2 East 454 6 …
Slide 13: Growing Exports Presence
Growing Exports Presence Export Sales of product and services in last 5 years 18% 13% 20% 15% Exports accounted for 13% of sales in FY24 Exports provide 1097 15% natural hedge on forex as the company also imports raw 899 10% 10% 693 10% materials 608 585 5% Strong order book for exports of Rs. 7
Slide 14: Strong Financial Performance
Strong Financial Performance Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR (Cr) 10.5% 11.4% 10.5% 10.6% 10.9% INR (Cr) 581 8,104 887 INR (Cr) 477 6,908 734 376 5,727 604 255 270 513 4,884 476 4,181 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 15: Growth Strategy
Growth Strategy Distribution Channel Overseas Retail Business Focus on increasing penetration by further expanding distribution Market Continued focus to increase network Further increase presence in share of retail business in overall sales mix overseas market Capacity Expansion FMEG Market Increas
Slide 16: Industry Prospects
Industry Prospects Economic Factors : In FY 2024-25, India’s GDP is expected to rise by 6.6%. Moody's Ratings has forecasted Indian economy to grow by 6.6% in the fiscal year 2025 and 6.2% in the subsequent year. India is growing rapidly and is expected to become a US$ 5 trillion economy by 2025
Slide 17: Industry Prospects
Industry Prospects Power and cable Sectors: Expansion in industrial activity to boost cable demand for electricity. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. India is the third-largest producer and co
Slide 18: Industry Prospects
Industry Prospects Real State Sectors: Government of India’s Housing for All initiative is expected to bring US$ 1.3 trillion investment in the housing sector by 2025. Real estate sector in India is expected to reach US$1 trillion by 2030. By 2025, it will contribute 13% to the country’s GDP.
Slide 19: Industry Prospects
Industry Prospects Infrastructure Sectors: India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion Budget 2023-24, the government has given a massive push to the infrastructure sector by allocating Rs.10 lakh crore (US$ 122.08 billion ) to enhance the i
Slide 20: Industry Prospects
Industry Prospects Manufacturing, Engineering and Capital Goods Sectors: Capacity creation in sectors such as infrastructure, power, mining, oil and gas, refinery, steel, cement automotive and consumer durables is driving demand in the engineering sector. Increase Investment in Indian Manufactur
Slide 21: Strengthening Brand Recognition
Strengthening Brand Recognition Partner 2013-2015 2009-2012 Wires & Cables Specialist Jode Dilon Ke Taar 2016-2017 2019-2020 Har Tension Sahe Chalti Rahe IPL Sponsorship from FY 17 to FY 24 21
Slide 22: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of Branding Activities Ghat Branding Dhaba Branding Char Dham Yatra Branding Meet & Greet RCB Outlet Visibility 22
Slide 23: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of Branding Activities Bus Branding Metro Branding Shikara Auto Branding Bus Stand Branding Branding 23
Slide 24: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of Sports Sponsorship Activities Title Sponsorship of Real Tamil Thalaivas- Pro Patna Pirates- Pro Kabaddi League Kabaddi League Kabaddi League On ground Activations Jersey Sponsorships Jersey Sponsorship 24
Slide 25: Strengthening Brand Recognition
…Strengthening Brand Recognition Highlights of IPL Sponsorship Activities 25
Slide 26: Strengthening Brand Recognition
…Strengthening Brand Recognition Entering into New Digital Marketing Era Launched Brand Film on Digital platforms KEI’s contribution in India’s growth story- 'Desh Ko Aage le Jane wala Raaz' • Collaboration with OTT platforms Sony Liv, Zee5, Hotstar, MX Player Presence over the shows like: Kapil Sha
Slide 27: Strengthening Brand Recognition
…Strengthening Brand Recognition BTL Activations to Augment Credibility • Inside Metro Station Branding with DMRC. • Extensive participation in events & exhibitions (Domestic & International). • Marked presence through outdoor campaigns. • Extensive Retail Branding around major festivals. • Inside T
Slide 28: Strengthening Brand Recognition
…Strengthening Brand Recognition Collaborated with NIC & National/Regional Police Personnel To deliver the message of safety to children, with utmost conviction, we invited Senior Personnel from NIC & Police Department to share their valuable tips and knowledge about Online & Offline Safety & to cre
Slide 29: Strengthening it further using multi pronged approach
..and Strengthening it further using multi pronged approach Advertisement & Publicity expenses ( in Crore) 41 22 Association with Rajasthan royals in past and amplification Via digital presence. Meeting with Channel Partners. New IT App for connecting Dealers, Distributors, Retailers and Elect
Slide 30: Connecting App
… Connecting App Our online platforms ‘KEI Supply Beam’ and ‘KEI Connect’ (an end-to-end channel management software that enables better decisions, speed and efficiency) keep us connected with ‘Kutumb’. KEI Supply Beam for dealers/distributors. KEI Connect for retailers/electricians 30
Slide 31: Summary Financials (Standalone)
Summary Financials (Standalone) Summary of Financials in Crore Particulars FY 19 FY 20 FY 21 FY 22* FY23 FY24 Net Sales 4,227 4,884 4,181 5,727 6,908 8,104 EBITDA 449 513 476 604 734 887 PBT 279 327 360 508 642 781 PAT 182 255 270 376 477 581 Net Fixed Assets 520 565 544 547 582 891 Net Worth 779 1,
Slide 32: Summary Financials (Standalone)
Summary Financials (Standalone) Quarterly Summary of Profit & Loss in Crore Particulars FY 23-Q1 FY 23-Q2 FY 23-Q3 FY 23-Q4 FY 24-Q1 FY 24-Q2 FY 24-Q3 FY 24-Q4 Net Revenue 1564 1607 1784 1953 1781 1945 2059 2319 PBDIT 163 166 196 209 187 211 229 260 PBT 140 144 174 184 163 188 202 228 PAT 104 107 12
Slide 33: Summary Financials (Product and Segment wise)
Summary Financials (Product and Segment wise) in Crore Particulars FY23-Q3 FY23-Q4 FY24-Q1 FY24-Q2 FY24-Q3 FY24-Q4 Domestic 834 949 642 785 844 1,026 Dealer 816 845 842 923 949 1,056 Export 143 164 307 249 284 257 Net of Ind AS & other -9 -5 -10 -12 -18 -20 Total 1,784 1,953 1,781 1,945 2,059 2,319
Slide 34: Financial Performance Q-4 FY24 Highlights
Financial Performance Q-4 FY 24 Highlights % % R E V E N UE ( I N CR O R E ) EBITDA ( I N CR O R E ) PAT ( I N CR O R E ) 7.28 7.32 11.20 11.11 7.07 10.70 2319 169 2059 260 151 1953 229 138 209 24.34% 13.55% 18.76% 12.62% 22.21% 12.03% YoY QoQ YoY QoQ YoY QoQ Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24
Slide 35: Financial Performance FY24 Highlights
Financial Performance FY 24 Highlights REVENUE ( in Crore ) EBITDA in Crore PAT in Crore 10.94% 7.17% 10.62% 8104 887 6.91% 581 6908 734 477 17.31% 20.81% 21.72% YoY YoY YoY FY23 FY24 FY23 FY24 FY23 FY24 • Revenue improved by 17.31% YoY in FY 24. • EBITDA margin in FY 24 has improved to 10.94% as ag
Slide 36: Balance Sheet (Standalone)
Balance Sheet (Standalone) in Crore ASSETS FY 24 FY 23 FY 22* EQUITY AND LIABILITIES FY 24 FY 23 FY 22* Non-Current Assets Equity Fixed Assets 891.23 581.88 547.41 Equity Share Capital 18.05 18.04 18.02 other Non Current Assets 67.77 26.94 18.58 Other Equity 3,130.21 2,570.97 2,117.30 Total Non Curr
Slide 37: Shareholding
Shareholding Shareholding Pattern Key Institutional Investors (as of 31st March, 2024) (as of 31st March, 2024) Public and Name of Shareholder % Holding other 15.61% Small cap World Fund, INC 3.67% Promoter, Promoter 37.08% HSBC Multi Asset Allocation Fund 2.44% DII, 16.30% FII Canara Robecco Mutual
Slide 38: Our Social Responsibility – Partnering for Community Resilience
Our Social Responsibility – Partnering for Community Resilience 38
Slide 39: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience Our CSR initiatives span across several critical areas of human progress, including healthcare, hunger and poverty eradication, education, environmental sustainability and sports promotion. KEI Wires and Cables organized Swasthya Utsav
Slide 40: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience This year, we integrated all the elements from our past activities of the Jyoti Series and added new ones to give our activity a 360 degree approach. The target group was directly reached through the Swasthya Utsav events organized by
Slide 41: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience Swasthya Utsav - A Skill Development Program to nurture the head, heart and skills of the Kids of Electricians. Amount spent on CSR in Crore Particulars FY 22 FY23 FY24 Promoting education 1.77 5.61 3.06 Promoting Healthcare Including
Slide 42: Environmental, Social and Governance
Environmental, Social and Governance Committed to provide environmentally safe and socially responsible workplace Environmental Stewardship Social Commitment Governance Practices Initiatives Health and safety prioritised for Renewable Energy Utilisation to lower both employees and product Manu
Slide 43: Thank You
Thank You Contact us For Investor relations: cs@kei-ind.com 43