Finolex Cables Limited · NSE:FINCABLES
Finolex Cables — Q2 FY2020 Earnings Presentation
31 slides from Finolex Cables's earnings presentation, Nov 19, 2019
Slide 1: Finolex Cables conference call intimation letter
Finolex SELECTED INDIA 2009-10 Cables Limited CONSUMER VALIDATED AN IS/ISO 9001 COMPANY FCL:SEC:SE:19:234 19th November, 2019 BSE Limited National Stock Exchange of India Ltd Luxembourg Stock Exchange Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Ref: Regulations, 20
Slide 2: Finolex Cables Limited Earnings Presentation November 2019
Finolex Cables Limited Earnings Presentation November 2019
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Finolex Cables 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 4: Table of Content
TABLE OF CONTENT Executive Summary 4 Company Overview 6 Category & Product Portfolio 9 Key Management 13 Timeline 14 Geographical Footprint 16 SWOT Analysis 17 Financial Overview 20 Capital Market Data 31
Slide 5: Executive Summary
EXECUTIVE SUMMARY
Slide 6: One of India's leading Electricals brands
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 Diversified product portfolio Widespread distribution network • Wires and cables: Light duty cables, power and control • 800 distributers cables and commun
Slide 7: Company Overview
COMPANY OVERVIEW
Slide 8: Premium Player – Cables and Wires Industry
Premium Player – Cables and Wires Industry Electrical Cables and Wires • Leader in the electrical housing wires segment and Communication Cables commands a premium over its peers • Revenues growth was led by ramp up of its communication cables business. • Strong brand positioning and superior produc
Slide 9: Emerging Player - FMEG
Emerging Player ‐ FMEG • Finolex entered the FMEG segment to capitalize on the strong brand recall and sales network • The company first entered the electrical switches and lighting segment, leveraging its widespread distribution network in the country. The company than introduced switchgears, fans
Slide 10: Category & Product Portfolios
Category & Product Portfolios WIRES & CABLES • Jelly Filled Telephone Cables (JFTC) • LAN cables FANS Light Duty Cables • Telephone cables • Ceiling fans • FR PVC insulated industrial cables • Optic Fibre cables • Table fans • Wall fans • Flexible cables • Pedestal fans • Solar cables LIGHTING • Exh
Slide 11: Electrical Cables and applications
• Electrical Cables • 1100 V PVC Insulated Cables Electrification of industrial establishments, used by construction industry, electrical panel wiring and consumer electrical goods • Motor winding PVC insulated Submersible pumps and electrical motors • Automotive/battery cables Wiring harness for au
Slide 12: Copper rods, switches, lamps, fans and applications
• Copper Rods Electrical • CCC rods of 8 mm diameter Raw material for manufacturing copper‐ Switches Lamps based Cables • Premium and classic switches, For power supply to equipment in domestic, sockets, regulators, etc commercial and industrial environment • Retrofit/non‐retrofit CFL lamps Lighting
Slide 13: Communication cables and applications
• Communication Cables • Jelly filled telephone cables Telephone line connections to exchanges and users (JFTCs) Indoor and outdoor networking, voice and data • Local area network (LAN) transmission, broadband usage cables Telephone instrument connections to EPABX • PE insulated telephone cables Cab
Slide 14: Key Management Team
Key Management Team Mr. Deepak Chhabria He joined Finolex Cables Ltd as Deputy Production Manager in 1986. Deepak was actively involved in setting up 9 different manufacturing Plant across 4 locations in India. Under his able guidance, the Company now produces a variety of electrical and communicati
Slide 15: Timeline
Timeline Indian Cable Industries acquired Alpha Rubber AT&T Finolex JV, Co. and thereafter Technical Low Voltage Power Collaboration with Optical Fibre Cables The business was company name changes Plant, Urse, Cable Plant, Pimpri, NSW, Germany started as a to Finolex Cables Ltd. Maharashtra Maharash
Slide 16: Timeline
Timeline Jelly Filled Telephone Cables Optical Fibre Cable Super brand Lighting Products Plant, Electrical Switch Plant, 5.5 MW Solar plant, Urse Plant, Verna, Goa Plant, Verna, Goa Recognition Urse, Maharashtra Uttarakhand Launched Fans & Water 2010 2007 2005 2014 2000 2003 Heaters Switchgear Plant
Slide 17: Geographical Footprint
GEOGRAPHICAL FOOTPRINT UTTARAKHAND 6 28 Manufacturing Plants Depots 4000+ 30000+ Channel Partners Dealers SHIRWAL URSE, MAHARASHTRA PUNE VERNA, GOA
Slide 18: Geographical Footprint
Geographical Footprint LOCATION PRODUCT Uttarakhand Electric wire for construction; wires for automobile; switches; switchgear and Agricultural applications Shirwal, Maharashtra Extra High Voltage (EHV) cables Urse, Maharashtra All electrical cables, optic fibre cables and all communication cables P
Slide 19: Financial Overview
FINANCIAL OVERVIEW
Slide 20: Q2FY20 – Operational Highlights
Q2FY20 – Operational Highlights Q2FY20‐ Segmental Revenue Break‐up Segment Revenue (Rs in Crore) • Margins C. Copper D. Others rods INR 16.18 ‐ Electrical Cable EBIT margin decline from 17% to 14% is due to INR 75.06 change in sales mix and commodity ‐ Communication Cable EBIT margin decline from 13
Slide 21: Q1FY20 – Financial Snapshot
Q1FY20 – Financial Snapshot PBT(Rs in Crore) 150 139.84 139.94 139.08 140 132.91 130 119.17 117.85 120 Revenue (Rs in Crore) 110 823.08 100 820 90 807.74 80 791.18 790 70 60 50 760 749.56 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1FY 20 Q2FY 20 730 713.97 715.76 700 PAT (Rs in Crore) 130 123.12 670 120 1
Slide 22: Quarter Under Review
QUARTER FY19 UNDER UNDER REVIEW REVIEW
Slide 23: Q2-FY20 Key Financial Highlights
Q2‐FY20 KEY FINANCIAL HIGHLIGHTS (Standalone Quarter Performance) (INR Cr) • INR 780.47 Total Income* • Growth of 1.0 % Y‐o‐Y • INR 149.11 EBITDA • Growth of 3.4% Y‐o‐Y • 19.11% EBITDA Margins • Growth of 43Bps • INR 123.12 PAT • Growth of 32.5 % Y‐o‐Y • 15.78% PAT Margins • Growth of 375Bps Y‐o‐Y •
Slide 24: Standalone Financial Highlights Q2-FY20
STANDALONE FINANCIAL HIGHLIGHTS Q2‐FY19 ( IND‐AS) INCOME STATEMENT (INR Cr) Q2‐FY20 Q1‐FY20 Q‐o‐Q Q2‐FY19 Y‐o‐Y Total Income* 780.47 829.71 (5.9)% 772.39 1.0% Total Expenses 631.36 701.74 (10.0)% 628.13 0.5% EBITDA 149.11 127.97 16.5% 144.26 3.4% EBITDA Margins (%) 19.11% 15.42% 369Bps 18.68% 43Bps
Slide 25: Consolidated Financial Highlights Q2-FY20
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2‐FY20 ( IND‐AS) INCOME STATEMENT (INR Cr) Q2‐FY20 Q1‐FY20 Q‐o‐Q Q2‐FY19 Y‐o‐Y Total Income* 740.28 829.71 (10.8)% 732.2 1.1% Total Expenses 618.76 701.74 (11.8)% 628.13 (1.5)% EBITDA 121.52 127.97 (5.0)% 104.07 16.8% EBITDA Margins(%) 16.42% 15.42% 100Bps 14.21% 2
Slide 26: H1FY20 Key Financial Highlights
H1FY19 KEY FINANCIAL HIGHLIGHTS (Standalone Quarter Performance) (INR Cr) • INR 1,610.18 Total Income* • Growth of 1.7% Y‐o‐Y • INR 277.08 EBITDA • Growth of (5.8)% Y‐o‐Y • 17.21% EBITDA Margins • Growth of (136)Bps • INR 204.69 PAT • Growth of 11.7% Y‐o‐Y • 12.71% PAT Margins • Growth of 114Bps Y‐o
Slide 27: Standalone Financial Highlights H1FY20
STANDALONE FINANCIAL HIGHLIGHTS H1FY20 ( IND‐AS) INCOME STATEMENT (INR Cr) H1FY20 H1‐FY19 Y‐o‐Y Total Income* 1,610.18 1,583.67 1.7% Total Expenses 1.333.1 1,289.53 3.4% EBITDA 277.08 294.14 (5.8)% EBITDA Margins (%) 17.21% 18.57% (136) Bps Depreciation 19.7 20.77 (5.2)% EBIT 257.38 273.37 (5.8)% EB
Slide 28: Consolidated Financial Highlights H1-FY20
CONSOLIDATED FINANCIAL HIGHLIGHTS Q2‐FY20 ( IND‐AS) INCOME STATEMENT (INR Cr) H1‐FY20 H1‐FY19 Y‐o‐Y Total Income* 1,569.99 1,543.48 1.7% Total Expenses 1,320.5 1,290.53 2.3% EBITDA 249.49 252.95 (1.4)% EBITDA Margins(%) 15.89% 16.39% (50) Bps Depreciation 19.7 20.77 (5.2)% EBIT 229.79 232.18 (1.0)%
Slide 29: Quarter Under Review
QUARTER FY19 UNDER UNDER REVIEW REVIEW
Slide 30: Standalone Financial Highlights FY19
STANDALONE FINANCIAL HIGHLIGHTS FY19 (IND‐AS) INCOME STATEMENT (INR Cr) FY19 FY18 Y‐o‐Y Total Income* 3,199.62 3,011.63 6.2% Total Expenses 2626.29 2,461.91 6.7% EBITDA 573.33 549.72 4.3% EBITDA Margins (%) 17.92% 18.25% (33Bps) Depreciation 40.55 43.8 (7.4)% EBIT 532.78 505.92 5.3% EBIT Margins (%)
Slide 31: Thank You
THANK YOU