Polycab India Ltd. · NSE:POLYCAB
Polycab India — Investor Presentation (October 2022)
48 slides from Polycab India's investor presentation, Oct 18, 2022
Slide 1: Covering letter under Regulation 30
POLYCAB INDIA LIMITED Polycab House, 771 Mogul Lane, Mahim (W), Mumbai – 400016 CIN: L31300GJ1996PLC114183 Tel : +91 22 2432 7070-74 Fax : +91 22 2432 7075 Email: shares@polycab.com Website: www.polycab.com Date: 18th October 2022 To To Department of Corporate Services Listing Department BSE Limited
Slide 2: Corporate Presentation October 2022
Evolving through excellence Corporate Presentation October 2022 Transforming with focus Polycab India Limited | Corporate Presentation
Slide 3: Content
Content 01 Company Overview 02 Leadership in Wires & Cables 03 Fast growing FMEG Business 04 Strengthening Brand Recognition 05 Strong Manufacturing and R&D capabilities 06 ESG 07 Robust Financials 2
Slide 4: Company Overview
co) Resid Company Overview
Slide 5: Polycab: A Snapshot
Polycab: A Snapshot #1 Manufacturer in India PAN India Network Fast Growing FMEG Brand 4,600+ Dealers & Market leader in Wires and Distributors 5-year CAGR at ~30% Cables1 2,05,000+ Retail Outlets 22 - 24% Share of Organized Market2 Manufacturing Footprint Strong Management Bandwidth Proven Track Re
Slide 6: Our Journey
Our Journey IPO: Listing on BSE and Set up a facility for PVC Manufacturing of NSE on 16 April 2019. Launched Polycab Expert Promoters insulated power cables ceiling fans at Roorkee, 52x over subscribed Program established the house wires, telephone Uttarakhand Investment from IFC Forayed into the C
Slide 7: Our Segments: An Overview
Our Segments: An Overview % of External Sales 87% Wires & Cables 10% FY 22 Total Revenue Fast Moving 122,038 Mn Electrical Goods 3% Copper + Other Notes: Consolidated Revenue in INR Mn, Rounded off (incl. EPC) Polycab India Limited | Corporate Presentation 6
Slide 8: Structural Growth Drivers
Consumption 01 Growing affluence leading to premiumization • Growth of rural India • Nuclearization of families • Evolving consumer behaviour STRUCTURAL Infrastructure 02 GROWTH Power and railways spend increase • Electrification • Capex cycle uptick • Urbanization, Smart cities, Housing for all DRI
Slide 9: Key Management Initiatives to create value
Key Management Initiatives to create value Improvement in Production Process Expansion of Enhance Brand Awareness and Customer Loyalty Manufacturing Capacity Expansion of Improvement in Distribution Network Supply Chain Induction of Robust IT platform Qualified Professionals and Digitalization Focus
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
Slide 11: Our Capitals which help us create value
Our Capitals which help us create value… Processes Inputs Outputs Manufactured capital Wires & cables FMEG • 23 Manufacturing units No of SKUs 11,000+ No of SKUs 6,000+ • 28 Warehouses and depots Sales: INR 106.95 BN Sales: INR 12.54 BN Intellectual capital • R&D expenditure INR 223 Mn • 144 registe
Slide 12: Leadership in Wires and Cables
Leadership in Wires and Cables 11
Slide 13: 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) Instrument
Slide 14: Polycab's dominant position in Wires and Cables industry
Polycab’s dominant position in Wires and Cables industry to capture attractive market size Wires and Cables industry Healthy market share gains in Wires and Cables over the past few years In FY221 : Market Share in FY22(1) FY22 Wires and Cables Revenue(2) ~ 600 – 650bn 22-24% 15-16% 2x 2.3x Market S
Slide 15: Fast growing FMEG Business
Fast growing FMEG Business 14
Slide 16: FMEG: Expanding presence in 'Electricals' ecosystem
FMEG : Expanding presence in ‘Electricals’ ecosystem FMEG continues to become a sizeable part of the business - growing at 30% CAGR in past 5 years Mobile App Forayed in FY14 ... ▪ Diversified portfolio with focus on the upcoming industry trends ▪ Inhouse Manufacturing ▪ Pan India Distribution ▪ Pre
Slide 17: 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 Fans & Appliances Switches LV Switchgear Lighting 125Bn 72Bn 20Bn 187Bn ▪ Preference for energy ▪ Cu
Slide 18: Multi format retail approach: Galleria, Arena and Shoppee
Multi format retail approach: Polycab Galleria, Arena and 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 ❑ Eq
Slide 19: Strengthening Brand Recognition
Strengthening Brand Recognition 18
Slide 20: 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 Ayushmann Khurana Corporate Commercial, (Actor) Elevated our brand amongst Top 3 in house wires Associate On
Slide 21: Strengthening brand using multi pronged approach
… and strengthening it further using multi pronged approach Advertising and Sales Promotion Expenditure (INR mn) 823 163 FY14 FY22 Multi pronged approach Actively engage Dealers Loyalty Points via Experts Increased Advertising on to increase brand and Distributors Program Social Media and Sales awar
Slide 22: Pan India distribution network
Pan India distribution network to support diverse customer base and product categories Sales & marketing ~3600 FMEG 4,600+ authorized through corporate Our distribution dealers and 205,000+ office, 4 regional dealers & distributors pan- retail outlets reach distributers India offices & 11 local offi
Slide 23: Catering to marquee customers
Catering to marquee customers Total Revenue Contribution in FY22 Oil & Gas Top Customer 5% Top 5 Customers 12% Metal Export Top 10 Customers 20% Rest of the 80% Infrastructure Customers Paints Revenue from outside India (% of total revenue) Chemicals Auto 12.4% Cement Telecom 8.5% 7.6% 5.1% 3.1% Pow
Slide 24: Strong Manufacturing & R&D capabilities
Strong Manufacturing & R&D capabilities 23
Slide 25: Inhouse Manufacturing with 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 5.2mn kms Nashik Switchgears 10.9mn Nashik Cable CCV Line 1. Figures are absolute nu
Slide 26: Strong R&D and innovation capabilities
…Strong R&D and 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 o
Slide 27: ESG
co) Rcd ESG
Slide 28: ESG framework development project
Initiated ESG framework development project to be concluded in FY23 Gap Analysis & Materiality Development of ESG framework, targets & programs •Introspect and compare with peers to .. made healthy progress over understand ESG gaps •Identify targets for first 12 months and subsequent years the last
Slide 29: Robust Financials
co) Resid Robust Financials
Slide 30: Proven track record of financial performance
Proven track record of financial performance PAT Margin % Revenue (INR mn) EBITDA (INR mn) EBITDA Margin % Adj. PAT (INR mn) 8.7% 8.4% 11.9% 12.8% 12.6% 10.9% 10.3% 6.3% 6.9% 5.3% 1,22,038 88,300 87,922 12,626 7,415 8,452 79,856 11,276 11,117 7,656 67,831 9,504 7,418 5,003 3,586 FY18 FY19 FY20 FY21
Slide 31: Proven track record of financial performance
Proven track record of financial performance ROCE/ROE (%) Debt/Equity ratio Capital Expenditure (INR mn) ROCE ROE ROCE Post Tax 27.9% 26.4% 0.34x 5,200 21.0% 20.0% 20.7% 20.4% 18.5% 15.2% 15.5% 15.4% 19.9% 17.5% 2,814 2,814 15.4% 15.2% 13.3% 0.10x 1,832 1,911 0.04x 0.05x 0.01x FY18 FY19 FY20 FY21 FY
Slide 32: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Particulars (INR mn) FY 2022 % FY 2021 % FY 2020 % Revenue from Operation 1,22,038 100.0% 87,922 100.0% 88,300 100.0% Cost of Goods sold 94,657 77.6% 65,171 74.1% 63,686 72.1% 31 Contribution (A) 27,381 22.4% 22,751 25.9% 24,613 27.9% Employee cost 4,066 3.3% 3
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR mn) FY 2022 FY 2021 FY 2020 Particulars (INR mn) FY 2022 FY 2021 FY 2020 Assets Equity & Liabilities 32 Non-Current Assets Shareholder's Funds Fixed Assets 20,598 19,805 16,632 Share Capital 1,495 1,491 1,489 Non-current Deposits 126 580 14 Reserves and Su
Slide 34: Consolidated Annual Cash Flow Statement; Credit ratings
Consolidated Annual Cash Flow Statement Particulars (INR mn) FY 2022 FY 2021 FY 2020 Net Cash Flow from Operating Activities 5,116 12,524 2,446 Net cash flow from/(used in) investing activities -4,270 -10,121 -2,622 Net cash flow from/(used in) financing activities -2,007 -1,748 107 Net Increase / (
Slide 35: Q2 FY23: Key Highlights
Q2 FY23: Key Highlights Top-line (Revenue) Operating (EBITDA) Profitability (PAT) Q2FY23: 33,324 mn Q2FY23: 4,268 mn Q2FY23: 2,705 mn 11% YoY 46% YoY 37% YoY 22% QoQ 38% QoQ 22% QoQ H1FY23: 60,689 mn H1FY23: 7,367 mn H1FY23: 4,930 mn 25% YoY 73% YoY 82% YoY Mobile App Notes: (1) Numbers on consolida
Slide 36: Q2 FY23: Consolidated Profit and Loss Statement
Q2 FY23: Consolidated Profit and Loss Statement Quarter Year To Date Particulars (INR mn) Q2FY23 % Q1FY23 % Q2FY22 % H1FY23 % H1 FY22 % Revenue from Operations 33,324 100.0% 27,366 100.0% 30,066 100.0% 60,689 100.0% 48,618 100.0% Cost of Goods sold 24,625 73.9% 20,524 75.0% 23,474 78.1% 45,148 74.4%
Slide 37: Q2 FY23: Consolidated Balance Sheet
Q2 FY23: Consolidated Balance Sheet Particulars (INR mn) Sep-22 Jun-22 Sep-21 Particulars (INR mn) Sep-22 Jun-22 Sep-21 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 21,151 20,716 20,320 Share Capital 1,497 1,496 1,493 Non-current Deposits 7 7 2,090 Reserves and S
Slide 38: Q2 FY23: Cash Flow Statement and other key data points
Q2 FY23: Consolidated Condensed Cash Flow Statement Quarter Year To Date Particulars (INR mn) Q2FY23 Q1FY23 Q2FY22 H1FY23 H1 FY22 Net Cash Flow from Operating Activities 11,628 -2,053 3,655 9,576 2,071 Net cash flow from/(used in) investing activities -11,265 3,541 -1,024 -7,723 -1,826 Net cash flow
Slide 39: Q2 FY23: Other financial metrics
Q2 FY23: Other financial metrics Average Closing Working Capital in days Q2FY23 Q1FY23 FY22 FY21 Q2FY23 Q1FY23 FY22 FY21 Receivable Days 28 25 41 59 26 25 39 59 Inventory days 82 94 81 108 86 93 85 110 Payable Days 66 56 67 102 71 45 63 102 Net Working Capital 44 63 54 65 42 73 61 67 Other Income (I
Slide 40: 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
Slide 41: Project Leap: strides towards our vision
Project Leap Made significant strides towards achieving our vision Setup of right organization enablers Customer centricity: Foundational moves ❖ Majority of talent acquisition for critical roles ❖ Redesigned operating model of B2B businesses completed across businesses and functions ❖ Heavy Duty &
Slide 42: Shareholding Pattern
Shareholding Pattern Note: As on 30th September 2022. DII (Domestic Institutional Investors) includes “Mutual Funds”. FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB/ AIF stands for "Qualified Institutional Buyer"/ "Alternative Investment
Slide 43: Leadership Team - Board of Directors
Leadership Team - Board of Directors Inder T Jaisinghani Bharat A Jaisinghani Nikhil R Jaisinghani Rakeshkumar Talati Chairman and Managing Director Whole-Time Director Whole-Time Director Whole-Time Director RS Sharma TP Ostwal Pradeep Poddar Sutapa Banerjee Independent Director Independent Directo
Slide 44: Leadership Team - Management
Leadership Team - Management ▪ Blend of Entrepreneurial and Professional Management ▪ Professionals with Prior Experience in Bajaj, Crompton, Havells, Orient, Panasonic, SRBC & Co, Tata Group, Unilever, Vedanta etc. ▪ Vision to Execute Strategies in a Dynamic Environment ▪ Extensive Relationships an
Slide 45: Our Social Responsibility – A Philosophy of Empathetic Care
Our Social Responsibility – A Philosophy of Empathetic Care Health Education Environment Rural development On an average per day, 90-100 Construction of new classes in 17% electricity generated Promoting efficient farming patients are taking advantages Narukot Javahar Ashram School, through renewabl
Slide 46: Enhancing shareholder value
Enhancing shareholder value Market Cap INR 383 Bn (USD 4.7 Bn) (as of 30th September 2022) 291% 52% 47% 46% 45% Nov'19 Nov'20 Nov'21 Jan'20 Jan'22 Jan'21 Apr'19 Apr'20 Jul'19 Jul'20 Apr'21 Jul'21 Apr'22 Jul'22 Aug'20 Aug'22 Aug'19 Aug'21 May'19 Dec'19 Dec'21 May'22 May'20 Dec'20 May'21 Sep'19 Feb'20
Slide 47: 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
Slide 48: 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 47