Polycab India Ltd. · NSE:POLYCAB
Polycab India — Investor Presentation (January 2024)
57 slides from Polycab India's investor presentation, Jan 18, 2024
Slide 1: Exchange filing cover letter under Regulation 30
Date: 18th January 2024 To To Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street C-1, G-Block, Bandra-Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 542652 Scrip Symbol: Polycab ISI
Slide 2: Corporate Presentation January 2024
Corporate Presentation January 2024 Polycab India Limited | Corporate Presentation
Slide 3: Content
Content ❑ Company Overview ❑ Leadership in Wires & Cables ❑ Well Established FMEG Business ❑ Strengthening Brand Recognition ❑ Strong Manufacturing and R&D capabilities ❑ ESG ❑ Robust Financials ❑ Project LEAP ❑ Corporate Governance ❑ CSR ❑ Shareholding Pattern Polycab India Limited | Corporate Pres
Slide 4: Company Overview
Company Overview Polycab India Limited | Corporate Presentation 3
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
Slide 6: Our Journey
Our Journey Promoters IPO: Listing on BSE & Set up a facility Investment from Forayed into the Manufacturing of Launched established NSE on 16 April 2019. for PVC insulated IFC of ₹ 4,018 Mn switches segment ceiling fans at Polycab Refreshed the the business 52x over subscribed power cables house Ro
Slide 7: Our Segments: An Overview
Our Segments: An Overview % of External Sales 89% Wires & Cables FY 23 Total 9% Revenue Fast Moving Electrical ₹ 141,078 Mn Goods 2% Copper + Other (incl. EPC) Polycab India Limited | Corporate Presentation 6
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
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
Slide 10: i-POWER
i-POWER Purpose Values We innovate for a brighter living Innovative mindset Giving wings to novel ideas Our innovative, safe and energy efficient products and Caring about our people and People at the core solutions delight our customers their growth Serving to create delightful Our vibrant and incl
Slide 11: Leadership in Wires & Cables
Leadership in Wires & Cables Polycab India Limited | Corporate Presentation 10
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 India, Wide Customer Base across Industries… with a strong suite of products… Optical Fiber Power Cable Building Wires Cable Power Oil and Gas Construction FR (Flame Retardant) IT Park In
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
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
Slide 15: Opportunities in Focus
Opportunities in Focus Supply Chain Diversification Certifications & Approvals Setting up Distribution Network India gaining from global Actively working on Looking to replicate distribution International Business search for China’s supply certifications and product approvals for new countries. netw
Slide 16: Well Established FMEG Business
Well Established FMEG Business Polycab India Limited | Corporate Presentation 15
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
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 ₹ 2
Slide 19: Growth Engine
Growth Engine Distribution Expansion Premiumization Rejig of distribution channel to the super- Leveraging product innovation and distributor model for faster scale-up of brand building activities to drive sales business. Adopting alternate sales of premium products, which are platforms like e-comme
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
Slide 21: Strengthening Brand Recognition
Strengthening Brand Recognition Polycab India Limited | Corporate Presentation 20
Slide 22: Strong Brand Recognition in the Electricals Industry
Strong Brand Recognition in the Electricals Industry.. Our Brand Journey from B2B to B2C Corporate Ayushmann Official Partner Commercial, Khurana (Actor) Elevated our brand amongst Top 3 in house wires Associate On Air sponsors T20 Premier League 2013 2014 2016- 2017 2018 2019 2020 2021 2022 2023 Po
Slide 23: Brand Refresh
Brand Refresh Our brand refresh underscores our commitment to innovation, technology, safety, and sustainability, symbolizing in a brand line shift from 'Connection Zindagi Ka' to 'Ideas. Connected.' Old Logo New Logo INOVO symbol Idea behind the Polycab INOVO Symbol TV Commercial Red - Leadership i
Slide 24: Strengthening Brand Recognition 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 Actively engage Loyalty Points via Increased Advertising approach to increase Dealers and Experts Program on Social Media and brand awareness Distributors
Slide 25: Pan-India Distribution Network to Support Diverse Customer Base
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
Slide 26: 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% Infrastructur Customers e Paints Revenue from International Business (% of total revenue) Chemicals Auto 12.4% 9.8% Cement Telecom 8.5% 7.6
Slide 27: Strong Manufacturing and R&D Capabilities
Strong Manufacturing and R&D Capabilities Polycab India Limited | Corporate Presentation 26
Slide 28: 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 Switches 12mn Nashik Pipes & Conduits: 24,960 MT Switchgears 12.0
Slide 29: 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
Slide 30: ESG
ESG Polycab India Limited | Corporate Presentation 29
Slide 31: 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
Slide 32: Polycab's ESG Approach
Polycab’s ESG Approach Understanding Verification stakeholder Establishing Developing Refining Measuring through Communicating ESG needs and ESG roadmap and operations & impact and internal audits Performance through material ESG Governance ownership processes improving and external ESG Report risks
Slide 33: Robust Financials
Robust Financials Polycab India Limited | Corporate Presentation 32
Slide 34: Proven Track Record of Financial Performance
Proven Track Record of Financial Performance Revenue (₹ Mn) EBITDA (₹ Mn) EBITDA Margin % PAT (₹ Mn) PAT Margin % 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
Slide 35: 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
Slide 36: 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% 35 Contribution (A) 35,969 25.5% 27,381 22.4% 22,751 25.9% Employee cost 4,568 3.2
Slide 37: 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 Non-Current Assets Shareholder's Funds 36 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
Slide 38: 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
Slide 39: Key Highlights
Key Highlights Top-line Operating Profitability Top-line (Revenue) Operating (EBITDA) Profitability Profitability (PAT) (Revenue) (EBITDA) (PAT) (PAT) Q3 FY24: 43,405 Mn Q3 FY24: 5,695 Mn Q3 FY24: 4,165 Mn 17% YoY 13% YoY 15% YoY 3% QoQ -6% QoQ -3% QoQ 9M FY24: 1,24,475 Mn 9M FY24: 17,303 Mn 9M FY24
Slide 40: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Quarter Year To Date Particulars (₹ Mn) Q3 FY24 % Q2 FY24 % Q3 FY23 % 9M FY24 % 9M FY23 % Revenue from Operations 43,405 100.0% 42,177 100.0% 37,152 100.0% 1,24,475 100.0% 97,841 100.0% Cost of Goods sold 31,692 73.0% 30,739 72.9% 27,603 74.3% 91,011 73.1% 72,7
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Mn) Dec-23 Sep-23 Dec-22 Particulars (₹ Mn) Dec-23 Sep-23 Dec-22 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 26,656 24,730 21,951 Share Capital 1,502 1,500 1,497 Non-current Deposits 91 31 7 Reserves and Surplus 74,720 7
Slide 42: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Quarter Year To Date Particulars (₹ Mn) Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 Net Cash Flow from Operating Activities 4,948 7,010 3,500 7,877 13,076 Net cash flow from/ (used in) investing activities -4,593 -5,200 -3,357 -2,970 -11,081 Net cash flow from/ (used in)
Slide 43: Other Financial Metrics
Other Financial Metrics Average Closing Working Capital Days Q3 FY24 Q2 FY24 Q1 FY24 FY23 FY22 Q3 FY24 Q2 FY24 Q1 FY24 FY23 FY22 Receivable Days 27 26 26 33 41 33 30 31 32 39 Inventory Days 94 89 98 89 81 112 105 113 102 85 Payable Days* 70 65 55 71 67 85 70 70 85 63 Net Working Capital 51 50 69 51
Slide 44: Project LEAP
Project LEAP Polycab India Limited | Corporate Presentation 43
Slide 45: Project Leap: A multi year transformation journey
Project Leap A multi year transformation journey Energize B2B I Strengthen B2 Breakout growth in B2C I Position to leadership O LIO C win F PO ▪ Recalibrate business model T ▪ Create a winning variant ladder R ▪ Redefine brand architecture ▪ Refine value proposition R PO ▪ Micro market analytics ▪ “
Slide 46: 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 dynamics and direct dealing with customers Customer Centricity ➢ Merger of HDC and LDC verticals made meaningful progress
Slide 47: 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 Strengthening the plannin
Slide 48: Corporate Governance
Corporate Governance Polycab India Limited | Corporate Presentation 47
Slide 49: 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 TP Ostwal RS Sharma Sutapa Banerjee Manju Agarwal Bhask
Slide 50: Leadership Team - Management
Leadership Team - Management ▪ Blend of Entrepreneurial and Professional Management ▪ Professionals with Prior Experience in Bajaj, CEAT, Havells, Tata Group, Vedanta etc. ▪ Vision to Execute Strategies in a Dynamic Environment ▪ Extensive Relationships and Deep Business Understanding Anil Hariani A
Slide 51: CSR
CSR Polycab India Limited | Corporate Presentation 50
Slide 52: 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
Slide 53: Shareholding Pattern
Shareholding Pattern Polycab India Limited | Corporate Presentation 52
Slide 54: Shareholding Pattern
Shareholding Pattern 13.2% 15.3% Promoters FII 2.8% DII 66.5% 65.8% QIB + AIF 8.1% Others 7.3% Note: As on 31st December 2023. DII (Domestic Institutional Investors) includes “Mutual Funds”. FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB
Slide 55: 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 Mar'20 Apr'20 Market Cap May'20 Jun'20 Jul'20 Polycab India Limited | Corporate Presentation POLYCAB Aug'20 Sep'20 (as of 31st December 2023) Market Cap in USD calculated using USD ₹ spot rate of 83 Oct'20 ₹ 825 Bn (USD 9.9
Slide 56: 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 57: Thank You
THANK YOU Polycab India Limited Contact us For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Polycab India Limited | Corporate Presentation Website: www.polycab.com 56