Slide 1: Cover letter: Corporate Presentation under Regulation 30
POLYCAB INDIA LIMITED (formerly known as Polycab Wires Limited) Polycab House, 771 Mogul Lane, Mahim (W), Mumbai – 400016 CIN: L31300DL1996PLC266483 Tel : +91 22 2432 7070-74 Fax : +91 22 2432 7075 Email: info@polycab.com Web: www.polycab.com Date: 23rd October 2019 To To Department of Corporate Ser
Slide 2: Polycab India Limited Corporate Presentation
Polycab India Limited Corporate Presentation 1 Polycab India Limited
Slide 3: Agenda
Agenda 31 2 3 Company Overview Financial Performance Q2 FY20 Financial Statements 2 Polycab India Limited
Slide 4: Company Overview
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Slide 5: Polycab: A Snapshot
Polycab: A Snapshot One of India’s Leading Electricals Brand with Rs 80 bn revenues1 #1 Manufacturer of Wires • c.18% Organized • Exports to 40+ countries 1 • c.12% Total Market Share3 • Over Last 3 Years and Cables2 • c.51% Growth • Diverse Product Portfolio across 2 Fast Growing FMEG business • CA
Slide 6: Our Journey
Our Journey • Set up manufacturing facility for PVC • Promoters established the • Company incorporated on Jan 10, insulated power cables house wires, • Crossed Rs 10,000 mn in revenue business; manufacturing from 1996 telephone cables, optical fibre cables, Halol plant switch board cables and quad c
Slide 7: Key Management Initiatives in the recent year
Key Management Initiatives in the recent year Focus on Profitability and Growth Improvement in Production Processes Induction of Qualified Professionals Expansion of Manufacturing Capacity Expansion of Distribution Network Improvement in Supply Chain Enhance Brand Awareness and Customer Loyalty Inve
Slide 8: Increase in Consumer Spending, Infrastructure Growth and Industrial Investments to Drive Electricals Industry
Increase in Consumer Spending, Infrastructure Growth and Industrial Investments to Drive Electricals Industry Infrastructure Industrial Consumer Development Growth Spend • Government announced intention to spend Rs 100 • Impetus from government initiatives such as: • Increasing Propensity to Spend l
Slide 9: Market leader in wires and cables with a diverse suite of products and a healthy growth rate
Market leader in wires and cables with a diverse suite of products and a healthy growth rate Market leader in W&C… Market leader in W&C… • Largest W&C manufacturer in India, in terms of • Institutional and retail customers in different industries segment revenues, with a market share of c.18% of • M
Slide 10: Wires & Cables - Attractive market opportunity & strong leadership position
Wires & Cables - Attractive market opportunity & strong leadership position Wires & Cables Poised for Faster Growth1… Polycab is a Market Leader in Wires and Cables Segment… In FY18: Wires and Cables industry was: 40 – 45% of the electrical 8% of the manufacturing sector 1.5% of the equipment indust
Slide 11: Expanding presence in 'Electricals' ecosystem - Fast growing FMEG business
Expanding presence in ‘Electricals’ ecosystem - Fast growing FMEG business Comprehensive product portfolio with focus on the upcoming industry trends • Launched Switches business in FY14 • Diversified into the FMEG segment in FY15 • Key FMEG products include – electric fans, LED lighting and luminai
Slide 12: Expanding presence in 'Electricals' ecosystem: 1st ever Polycab Experience Centres
Expanding presence in ‘Electricals’ ecosystem: 1st ever Polycab Experience Centres • Strategic showcase enabling consumers and trade constituents to experience and choose from a wide range of quality products • Placed in iconic electrical markets hub which is also an important feeder market to weste
Slide 13: High Growth Opportunity in the Indian FMEG Industry
High Growth Opportunity in the Indian FMEG Industry Fans1 Switches2 Switchgear3 Lighting4 63 80 111 30 40 62 139 183 286 142 212 301 Domestic Industry 22 12 23 60 Opportunity 20 19 18 10 74 (Rs bn) 19 89 11 50 263 241 60 30 165 99 138 44 19 120 43 FY14 FY18 FY23E FY14 FY18 FY23E FY14 FY18 FY23E FY14
Slide 14: Strong Brand Recognition in the Electricals Industry
Strong Brand Recognition in the Electricals Industry Leveraged the “POLYCAB” brand to expand the customer base, cross-sell products & expand internationally Advertising and Sales Promotion Expenditure (Rs mn) As % of Sales 1.5% 1,159 0.4% 163 FY14 FY19 From B2B to B2C Our Brand Journey ‘Connection Z
Slide 15: Multi-location manufacturing, high degree of backward integration
Multi-location manufacturing, high degree of backward integration Product (1) Location Annual Capacity Multi-location manufacturing… Wires & Cables (in kms) Halol/ Daman 3.5 million • 25 manufacturing facilities, across the states of Gujarat, Lighting & Luminaires Chhani 18.2 million Maharashtra and
Slide 16: …supported by strong R&D, innovation and quality initiatives
…supported by strong R&D, innovation and quality initiatives Investments in in-house R&D capabilities… … have led to innovations in our product range • Flame retardant elastomeric compounds, flame retardant • NABL ISO 17025 certified R&D center; ~90 engineers and chlorosulphonated polyethylene rubbe
Slide 17: Pan India distribution network supporting our diverse customer base and product categories
Pan India distribution network supporting our diverse customer base and product categories By Product 3,400+ authorized Common for W&C dealers & distributers; and FMEG 120,000+ 16% 1,700+ dealers and distributors pan retail outlets; -India exclusively for FMEG Wires and Sales & Cables 3,400+ 32% mar
Slide 18: Initiatives to strengthen the brand and distribution network
Initiatives to strengthen the brand and distribution network Project Josh Strategic initiative aimed at increasing market share in FMEG and retail wires segments; has led to Distributor Management System increase in retailers & distributors in the c.123 Provides visibility on secondary sales and loc
Slide 19: Proven track record of financial performance (1/2)
Proven track record of financial performance (1/2) Revenue Revenue Revenue Growth EBITDA EBITDA EBITDA Margin PAT PAT PAT Margin Rs mn Rs mn Rs mn 17.7% 9.3% 9.3% 8.7% 10.9% 11.9% 11.8% 3.4% 3.6% 4.4% 5.3% 6.3% 7.8% 10.6% 5.5% 23.5% 5,003 79,856 9,504 67,831 20.4% 7,418 3,585 52,075 54,940 3,291 47,
Slide 20: Proven track record of financial performance (2/2)
Proven track record of financial performance (2/2) ROCE/ROE Debt/Equity ratio Capital Expenditure Rs mn Rs mn Rs mn ROCE/ROE 0.44x 0.43x 2,994 27.9% 2,793 0.36x 25.0% 0.34x 2,360 2,208 21.0% 1,817 16.3% 15.4% 1,626 15.2% 17.5% 18.7% 15.2% 0.10x 12.0% 9.9% 10.5% 0.05x FY15 FY16 FY17 FY18 FY19 H1FY20
Slide 21: Leadership team
Leadership team Board of Directors Key Management Inder T. Jaisinghani Ajay T. Jaisinghani R. Ramakrishnan Bharat A. Jaisinghani Nikhil R. Jaisinghani Anil Hariani Anil Shipley Manoj Verma Chairman and Whole-Time Director Chief Executive Director – FMEG Business (Non- Director – LDC Business Directo
Slide 22: Our Social Responsibility – A Philosophy of Empathetic Care
Our Social Responsibility – A Philosophy of Empathetic Care Community Infrastructure Education Health • Promoting efficient farming • Construction of toilets and • Leadership Enrichment for • Mobile Medical Unit offering through sessions on soil testing providing clean drinking water Adolescence thr
Slide 23: Q2FY20 Key Highlights
Q2FY20 Key Highlights Healthy Revenue Growth 24% Y-o-Y 15% Q-o-Q 20% H-o-H Strong Profitability PAT : 117% Y-o-Y 43% Q-o-Q 98% H-o-H PBT: 66% Y-o-Y 11% Q-o-Q 69% H-o-H Consistent Returns ROCE: 26.3% 26.3% 25.0% 222bp Y-o-Y 154bp Q-o-Q 212bp H-o-H Notes: (1) Numbers on consolidated basis (2) Revenue:
Slide 24: Consolidated Annual Profit and Loss statement
Consolidated Annual Profit and Loss statement Particulars (INR mn) FY19 % FY18 % FY17 % Revenue from Operation 79,856 100.0% 67,831 100.0% 54,940 100.0% Cost of Goods sold 59,660 74.7% 52,053 76.7% 42,411 77.2% Contribution (A) 20,196 25.3% 15,778 23.3% 12,529 22.8% Employee cost 3,002 3.8% 2,593 3.
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR mn) FY2019 FY2018 FY2017 Particulars (INR mn) FY2019 FY2018 FY2017 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 14,686 13,331 12,933 Share Capital 1,412 1,412 1,412 Financial / Non-current Assets 2,346 1,891 1,483 Reser
Slide 26: Consolidated Annual Cash Flow Statement
Consolidated Annual Cash Flow Statement Particulars (INR mn) FY 2019 FY 2018 FY 2017 Net Cash Flow from Operating Activities 12,299 3,624 3,145 Net cash flow from/(used in) investing activities -4,077 -1,878 -2,906 Net cash flow from/(used in) financing activities -6,514 -1,898 -271 Net Increase / (
Slide 27: Shareholding Pattern
Shareholding Pattern Others 14% FPI 4% MF 4% IFC 9% 69% Promoter Notes: As on September 30th 2019 26 Polycab India Limited
Slide 28: 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 29: Contact us
Polycab India Limited CIN: L31300DL1996PLC266483 Contact us: For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com 28 Polycab India Limited