Rr Kabel Ltd. · NSE:RRKABEL
Rr Kabel — Investor Presentation (November 2023)
48 slides from Rr Kabel's investor presentation, Nov 6, 2023
Slide 1: Corporate Presentation filing cover letter to stock exchanges
6th November 2023 Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C-1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Script Code: 543981 Symbol: RRKABEL Sub: C
Slide 2: Investor Presentation November 2023
Investor Presentation November 2023
Slide 3: 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 4: Successful IPO Listing
Successful IPO Listing Shareholding Pattern RR Kabel got Listed at a Valuation of ~ ₹ 13,682 Crs on 20th September, 2023 (As on 30th September 2023) 23.6% September 2023 5.0% 62.7% 8.7% ▪ Listing done on BSE & NSE ▪ IPO Price : Rs. 1035 per share ▪ Listing Price: NSE ₹ 1,180 per share & Promoters DI
Slide 5: Company Overview
Company Overview 4
Slide 6: Overview At Glance
At Glance Founded in 1999. 5th largest player in the Indian Wires and Cables(W&C) industry by value in FY23 Overview Electrical conglomerate present in 65 countries worldwide. Our products have 35 international certifications, distinguishing us in the Indian consumer industry Integrated In-house man
Slide 7: 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 8: Diverse Suite of Products
Diverse Suite of Products B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity Wire & Cables (Revenue - 90%) FMEG (Revenue - 10%) H1FY24- Revenue contribution 7
Slide 9: 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 10: 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 11: Wires & Cables (W&C)
Business Segments Wires & Cables (W&C) 10
Slide 12: Wires & Cables
Wires & Cables Wires & Cables Revenue 90* % Contribution Facility Waghodia & Silvassa Annual Capacity 4.2Mn ckm House wires, Industrial Product Category wires, Power cables & Special cables * H1FY24 11
Slide 13: Vast Product Basket of W&C
Vast Product Basket of W&C Wires Cables House Wires Power Cables LT Power Ca ble Medi um & Hi gh Voltage Hea t Resistant Wi res Fi re Resistant Wires Low Smoke Zero Halogen Power Ca bles Wi res Applications Applications o Residential Buildings o Power Transmission o Commerical o Power Distribution o
Slide 14: Long-Term Industry Growth Drivers
Long-Term Industry Growth Drivers Indian Wires & W&C share of Indian FY23 to FY27 INR748bn Cables Market (FY23) 40% electrical industry (FY23) 13% CAGR Indian Wires and Cables Market Poised for Strong Growth.. ..Across all sub-sectors and a shift to branded players W&C Market Segmentation (FY23) Bra
Slide 15: Scaled B2C W&C Business
Scaled B2C W&C Business… Stronger Fundamental Drivers RR Kabel is Well-Positioned in the Wires and Cables Segment… Well-Recognized Brand Domestic Exports Fastest Growing Amongst Key Peers One of India’s Leading W&C Exporters… 43% vs. 27% INR 12,702Mn RR Kabel vs. peers (FY21-23 CAGR) FY23 Export Rev
Slide 16: Domestic Distribution Network
Domestic Distribution Network (As on Sep’23) …With Headroom for Growth… Pan India Presence Reta ilers Network 3,26,214 124k+ 225k Peer Electricians …and Multi-Year Initiatives in place 3,598 Distributors 1 Project KaRRma W&C Phase I Double market share and retail outreach in domestic house wires 3,7
Slide 17: Global Distribution Footprint
Global Distribution Footprint Product quality and global accreditations enabling growth ~ 29% Europe North Exports % of Revenue from Operations-Q2FY24 America Middle East Exports W&C to Asia ~ 9% Pacific 65 Countries Market Share of W&C Exports from India ✓ RR Kabel is one of India’s largest exporte
Slide 18: Wires & Cables – Performance
Wires & Cables – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) 22.9% 19.6% 28.0% 9.0% 7.9% 7.1% 5.4% 9.0% +96.8% +55.0% 4,959 352 323 +104.8% 4,111 +23.6% 258 227 2,873 2,520 2,324 126 FY21 FY22 FY23 H1FY23 H1FY24 FY21 FY22 FY23 H1FY23 H1FY24 % Ma rgin
Slide 19: Fast Moving Electrical Goods (FMEG)
Business Segment Fast Moving Electrical Goods (FMEG) 18
Slide 20: Fast Moving Electrical Goods (FMEG)
Fast Moving Electrical Goods (FMEG) FMEG Revenue 10* % Contribution Facility Roorkee, Bengaluru & Gagret ś Annual Capacity Fan- 3.2 Mn units Lights- 1.9mn units Fans, Lighting, Switches, Product Category Switchgears & Appliances * H1FY24 19
Slide 21: 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 20
Slide 22: FMEG Industry Opportunity
FMEG Industry Opportunity INR1,064bn Indian FMEG Market (FY23) 8% FY23 CAGR to FY27E 77% Coverage of FMEG industry INR1,064bn FMEG Market Opportunity with Growth across all Sub-categories… Fans Lighting Switch & Switchgear Home & Kitchen Appliances Market Size (FY23) INR 139bn INR 336bn INR 292bn IN
Slide 23: 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) 648 +135.7% 275 194 204 Accelerate growth of FMEG business: FY20 FY21 FY22 FY23 • Leverage Wel
Slide 24: FMEG – Performance
FMEG – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) +135.5% 648 +19.6% +34.9% -30 -30 334 -37 -39 275 279 204 -70 FY21 FY22 FY23 H1FY23 H1FY24 FY21 FY22 FY23 H1FY23 H1FY24 Luminous HEB acquisition impact ✓ Revenue from FMEG segment registered a growth
Slide 25: 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 26: Board of Directors
Board of Directors- Renowned promoter group, investor and independent director oversight Tribhuvanprasad Shreegopal Rameshwarlal Mahendrakumar Mitesh Daga Rameshwarlal Kabra Kabra Rameshwarlal Kabra Executive Chairman Managing Director Joint Managing Director Non- Executive Nominee Director • Promot
Slide 27: Professional Management Team
Professional Management Team- Extensive Experience Dinesh Aggarwal Rajesh Babu Jain Sanjay Narnarayan Taparia Vivek Abrol CEO CFO CEO, International Business CEO, FMEG 35 years 28 years 32 years 22 years Shishir Sharma Satishkumar Anandilal Agarwal Himanshu Navinchandra Parmar Vinod Parur Chief Sale
Slide 28: 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 29: R&D Certification & Innovation
R&D Certification & Innovation Innovative and quality products with multiple industry-first launches Innovation Team 35 International Product Certifications 60 Focused on R&D 22 focused on R&D for FMEG Innovation Leader Europe Canada Europe Europe G reat Britain 1st to introduce Low Smoke Zero Halog
Slide 30: 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 31: Q2 & H1 FY24 – Financial Results
Q2 & H1 FY24 – Financial Results 30
Slide 32: Q2FY24 Key Performance Metrics
Q2FY24 Key Performance Metrics Revenue from Operations EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) INR in Crs 4.6% 7.1% 7.5% 2.6% 4.7% 4.6% +17.7% +92.7% +111.7% 1,597.3 1,609.7 121.1 74.3 74.1 Q2FY24 113.6 1,367.2 62.8 35.0 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Revenue
Slide 33: Operational Highlights
Operational Highlights Q2 FY24 Revenue-Mix H1 FY24 Revenue-Mix Working Capital Management (in Days) (Domestic Vs Exports) (Domestic Vs Exports) Net Working 88 75 65 Capital (in Days) 74% 71% 73% 72% 63 63 63 26% 29% 27% 28% Q2FY23 Q2FY24 H1FY23 H1FY24 Domestic Export 39 36 35 H1 FY24 Revenue-Mix 33
Slide 34: Consolidated Profit & Loss Statement – Q2 & H1 FY24
Consolidated Profit & Loss Statement – Q2 & H1 FY24 Profit & Loss Statement (INR. Crs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 1,609.7 1,367.2 17.7% 1,597.3 0.8% 3,207.0 2,603.1 23.2% Cost of Materials Consumed 1,257.3 968.1 1,197.1 2,454.4 2,008.2 Purchase
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (INR. Crs) Sep-23 Mar-23 ASSETS (Rs. Crs) Sep-23 Mar-23 Equity Share Capital 56.4 47.8 Property, Plant and Equipment 463.2 448.8 Instrument entirely equity in nature - 415.2 Right -of- use Assets 66.8 61.8 Other Equity 1661.1 956.7 Intangible Assets Un
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Sep-23 Sep-22 Profit before Tax 204.4 72.4 Adjustment for Non-Operating Items 45.0 59.4 Operating Profit before Working Capital Changes 249.4 131.8 Changes in Working Capital -178.6 151.6 Cash Generated from Operations 70.9 283.4 Less: Direct
Slide 37: 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 38: 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. Training and development program for teachers/Anganwadi & Key Activities: 2022-23 Vivek
Slide 39: 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 40: 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 41: Advertisement
Advertisement Brand Hoardings Exhibition Our Brand Ambassador Gate Branding Kabel Mela 40
Slide 42: 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 43: Annexure
Annexure 42 www.rrkabel.com
Slide 44: Performance in Charts
Performance in Charts Revenues EBITDA & EBITDA % PAT & PAT % INR in Crs 5.8% 8.5% 7.0% 5.0% 4.9% 3.4% +18% +18% +43% 5,599.2 323.3 213.9 307.4 189.9 4,385.9 231.2 135.4 2,723.9 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 RoCE (%) RoE (%) Debt to Equity (x) 17.4% 18.6% 0.48 15.6% 0.42 13.5% 13.9% 14
Slide 45: 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 46: 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 Right -of- use Assets 61.8 11.1 8.1 Other Eq
Slide 47: 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 48: Thank You
Thank You R R Kabel Limited Mr. Irfan Raeen CIN: U28997MH1995PLC085294 +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