Kei Industries Limited · NSE:KEI
Kei Industries — Investor Presentation (June 2024)
47 slides from Kei Industries's investor presentation, June 2024
Slide 1: KEI Industries Limited Corporate Presentation June 2024
KEI INDUSTRIES LIMITED CORPORATE PRESENTATION JUNE, 2024 1
Slide 2: Content
Content ❑ Company Overview ❑ Company Strengths ❑ Growth Strategy ❑ Industry Prospects ❑ Brand Recognition ❑ Key Financials ❑ Shareholding Pattern ❑ CSR ❑ ESG 2
Slide 3: Company Overview
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Slide 4: Overview
Overview Leading manufacturer of cables and wires with a wide product portfolio spread across EHV, HT and LT Power Cables, House Wire, Stainless Steel Wire Forward integrated into EPC services for Power, Distribution, Transmission and sub-station projects 6 plants located at Bhiwadi, Chopanki,
Slide 5: KEI: A Snapshot
KEI: A Snapshot A trusted 8 2000+ Company for 3500+ Manufacturing Institutional over five Cr Order Book2 Plant Customers1 decades Proven Track 1850+ 2000+ Record Experienced Employees1 Dealer CAGR 10 year Management Distributors2 Team Revenue- 17% PAT- 48% Note: 1 – As of 31st March,2024 2 - As on J
Slide 6: Revenue Overview
Revenue Overview Product and Revenue Split1 (FY24) -1% 7% 8% 13% 3% 47% 29% 38% 40% 16% EHV LT Power HT Cable HW,WW Export Institutional Retail SSW EPC Other Note: 1 – As of 31st March,2024 6
Slide 7: Major Highlights
Major Highlights • ET 500 2023 KEI ranking is 283. • During FY 2019-20, Company had raised fund Rs. 500 Crore through QIP. • India Ratings and Research Private Limited has affirmed its long term ratings as AA (with positive outlook). ICRA and CARE long term rating is AA (Stable). Short term rating f
Slide 8: Consistently Evolving Business Model
Consistently Evolving Business Model Focus has been on expanding product portfolio De-risking business by increasing diversification Switch Entry into PVC EHV4 Cables New project – board cables power cable up SSW1 plant at Rubber Cables commercial EHV4 400 KV HW5 Plant at HT3 Cables (33 for DOT
Slide 9: Experienced Management Team
Experienced Management Team Mrs. Archana Gupta Mr. Akshit Diviaj Gupta Director Director Mr. Rajeev Gupta Mr. Manoj Kakkar Executive Director Executive Director (Finance) & CFO (Sales & Marketing) Mr. Anil Gupta Chairman-cum-Managing Director Mr. Lalit Sharma COO Mr. Adarsh Kumar Jain Vice President
Slide 10: Comprehensive Product Portfolio
Comprehensive Product Portfolio Wide product basket comprising: Extra-High Voltage Cables up to 400 KV High & Medium Voltage Cables Control & Instrumentation Cables Specialty Cables Submersible Cables Rubber Cables Solar Cables ESP Cables PVC/Poly Wrapped Winding Wires Flexible &
Slide 11: Company Strengths
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Slide 12: Company Strengths
Company Strengths Well diversified across multiple dimensions 1 Wide basket of products used across multiple industries Low customer concentration 2 Strategically located manufacturing facilities and Strong R&D capabilities Manufacturing facilities across 8 locations Strong R&D focus helps in new pr
Slide 13: Well Diversified Across Multiple Dimensions
Well Diversified Across Multiple Dimensions Wide Product Basket… …With applications across Industries Others, -1% EPC, 7% SSW, 3% EHV, 8% LT Power, 38% Real Estate Oil & Gas HW, WW, 29% Power Cement HT Cable, 16% Cable & Wires Railways Fertilizers Business (91%) FY241 Automobiles …Coupled with low c
Slide 14: Strategically located manufacturing facilities & Strong R&D capabilities
Strategically located manufacturing facilities & Strong R&D capabilities Plant Locations and Key Capacities Plant Location Start Date Capacity (As of 30th June, 24) Cable – 64,200 Kms Chopanki Bhiwadi 1996 House Wire/WW – 190,000 Kms Bhiwadi Stainless Steel Wire – 9,000 MT Pathredi Cable – 3
Slide 15: Strategically located manufacturing facilities and Strong R&D capabilities
…. Strategically located manufacturing facilities and Strong R&D capabilities Pathredi Plant Bhiwadi Plant Chopanki Plant Adherence to the most stringent quality standards laid down by KEI Our products are tested by KEMA (The Netherlands), TUV (Rheinland), SGS, IRS, ABS, CEIL, BRE (UK), LLOYDS REGIS
Slide 16: Strong presence in retail segment with well entrenched distribution network
Strong presence in retail segment with a well entrenched distribution network Increasing focus on retail… …With strong distribution network… 46% 47% 41% # of Dealers / # of Marketing 34% Distributors1 Offices1 29% North 726 9 South 378 7 FY20 FY21 FY22 FY23 FY24 Retail as a % of sales of FY 24 2 Lea
Slide 17: Growing Exports Presence
Growing Exports Presence Export Sales of product and services in last 5 years 18% 13% 20% 15% Exports accounted for 13% of sales in FY24 Exports provide 1097 15% natural hedge on forex as the company also imports raw 899 10% 10% 693 10% materials 608 585 5% Strong order book for exports of Rs. 7
Slide 18: Strong Financial Performance
Strong Financial Performance Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR (Cr) 10.5% 11.4% 10.5% 10.6% 10.9% INR (Cr) 581 8,104 887 INR (Cr) 477 6,908 734 376 5,727 604 255 270 513 4,884 476 4,181 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23
Slide 19: Growth Strategy
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Slide 20: Growth Strategy
Growth Strategy Distribution Channel Overseas Retail Business Focus on increasing penetration by further expanding distribution Market Continued focus to increase network Further increase presence in share of retail business in overall sales mix overseas market Capacity Expansion EHV Market Increase
Slide 21: Industry Prospects
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Slide 22: Industry Prospects: Economic Factors
Industry Prospects Economic Factors : In FY 2024-25, India’s GDP is expected to rise by 7.2%. Moody's Ratings has forecasted Indian economy to grow by 6.6% in the fiscal year 2025 and 6.2% in the subsequent year. India is growing rapidly and is expected to become a US$ 5 trillion economy by 2025
Slide 23: Industry Prospects: Power and Cable Sectors
Industry Prospects Power and cable Sectors: Expansion in industrial activity to boost cable demand for electricity. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. India is the third-largest producer and co
Slide 24: Industry Prospects: Real Estate Sectors
Industry Prospects Real State Sectors: Government of India’s Housing for All initiative is expected to bring US$ 1.3 trillion investment in the housing sector by 2025. Real estate sector in India is expected to reach US$1 trillion by 2030. By 2025, it will contribute 13% to the country’s GDP.
Slide 25: Industry Prospects: Infrastructure Sectors
Industry Prospects Infrastructure Sectors: India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion As per union Budget 2024-25, The government has allocated Rs. 11.11 Lakh crore (US$ 133.02 billion) for capital expenditure, which is 3.4% of the country’
Slide 26: Industry Prospects: Manufacturing, Engineering and Capital Goods
Industry Prospects Manufacturing, Engineering and Capital Goods Sectors: Capacity creation in sectors such as infrastructure, power, mining, oil and gas, refinery, steel, cement automotive and consumer durables is driving demand in the engineering sector. Increase Investment in Indian Manufactur
Slide 27: Brand Recognition
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Slide 28: Strengthening Brand Recognition
Strengthening Brand Recognition Partner 2013-2015 2009-2012 Wires & Cables Specialist Jode Dilon Ke Taar 2016-2017 2019-2020 Har Tension Sahe Chalti Rahe IPL Sponsorship from FY 17 to FY 24 28
Slide 29: Strengthening Brand Recognition: Sports Sponsorship
…Strengthening Brand Recognition Highlights of Sports Sponsorship Activities Title Sponsorship of Real Tamil Thalaivas- Pro Patna Pirates- Pro Kabaddi League Kabaddi League Kabaddi League On ground Activations Jersey Sponsorships Jersey Sponsorship Highlights of IPL Sponsorship Activities 29
Slide 30: Strengthening it further using multi pronged approach
..and Strengthening it further using multi pronged approach Advertisement & Publicity expenses ( in Crore) 41 22 Association with Rajasthan royals in past and amplification Via digital presence. Meeting with Channel Partners. New IT App for connecting Dealers, Distributors, Retailers and Elect
Slide 31: Key Financials
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Slide 32: Summary Financials (Standalone)
Summary Financials (Standalone) Summary of Financials in Crore Particulars FY 19 FY 20 FY 21 FY 22* FY23 FY24 Net Sales 4,227 4,884 4,181 5,727 6,908 8,104 EBITDA 449 513 476 604 734 887 PBT 279 327 360 508 642 781 PAT 182 255 270 376 477 581 Net Fixed Assets 520 565 544 547 582 891 Net Worth 779 1,
Slide 33: Summary Financials (Standalone) Quarterly
Summary Financials (Standalone) Quarterly Summary of Profit & Loss in Crore Particulars FY 23-Q1 FY 23-Q2 FY 23-Q3 FY 23-Q4 FY 24-Q1 FY 24-Q2 FY 24-Q3 FY 24-Q4 FY 25-Q1 Net Revenue 1564 1607 1784 1953 1781 1945 2059 2319 2060 PBDIT 163 166 196 209 187 211 229 260 232 PBT 140 144 174 184 163 188 202
Slide 34: Summary Financials (Product and Segment wise)
Summary Financials (Product and Segment wise) in Crore Particulars FY23 FY24 FY24-Q1 FY24-Q2 FY24-Q3 FY24-Q4 FY25-Q1 Domestic 3,064 3,297 642 785 844 1,026 754 Dealer 3,166 3,770 842 923 949 1,056 1,085 Export 693 1,097 307 249 284 257 233 Net of Ind AS & other -15 -60 -10 -12 -18 -20 -12 Total 6,90
Slide 35: Financial Performance Q-1 FY25 Highlights
Financial Performance Q-1 FY 25 Highlights % % R E V E N UE ( I N CR O R E ) EBITDA ( I N CR O R E ) PAT ( I N CR O R E ) 7.28 11.20 7.29 11.28 6.82 10.48 2319 169 2060 260 150 232 1781 121 187 24.55% 10.52% 15.72% 11.16% 23.77% 10.98% YoY QoQ YoY QoQ YoY QoQ Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24
Slide 36: Balance Sheet (Standalone)
Balance Sheet (Standalone) in Crore ASSETS Q-1 FY 25* FY 24 FY 23 EQUITY AND LIABILITIES Q-1 FY 25* FY 23 FY 23 Non-Current Assets Equity Fixed Assets 948.25 891.23 581.88 Equity Share Capital 18.05 18.05 18.04 other Non Current Assets 154.65 67.77 26.94 Other Equity 3,282.74 3,130.21 2,570.97 Total
Slide 37: Shareholding Pattern
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Slide 38: Shareholding
Shareholding Shareholding Pattern Key Institutional Investors (as of 30th June, 2024) (as of 30th June, 2024) Name of Shareholder % Holding Public and Small cap World Fund, INC 3.14% other 15.60% HSBC Multi Asset Allocation Fund 2.69% Promoter, Promoter 37.08% Canara Robecco Mutual Fund A/C Canara R
Slide 39: CSR
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Slide 40: Our Social Responsibility – Partnering for Community Resilience
Our Social Responsibility – Partnering for Community Resilience Swasthya Utsav focused on •This year, we integrated all the elements from our past activities of the Jyoti Series and added new ones to give our activity a 360- these three aspects degree approach. •The target group was directly reached
Slide 41: Our Social Responsibility - Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience Swasthya Utsav - A Skill Development Program to nurture the head, heart and skills of the Kids of Electricians. Amount spent on CSR in Crore Particulars FY 22 FY23 FY24 Promoting education 1.77 5.61 3.06 Promoting Healthcare Including
Slide 42: ESG
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Slide 43: ESG Journey - KEI
ESG Journey - KEI Multiple awareness sessions conducted covering factory personnel, HO Capacity Building Staff and suppliers 20 relevant ESG topics identified Materiality Assessment Survey floated across all internal & external stakeholders Southissues identified. 8 high priority material
Slide 44: ESG Journey - KEI
ESG Journey- KEI 8 High priority material issues covered in ESG 1. GHG Emissions & climate change 2. Product Stewardship 3. Natural Resource Management 4. Supply Chain Sustainability 5. Human Capital Development 6. Occupational Health & Safety 7. Governance and ethical business conduct 8. Transparen
Slide 45: Committed to provide environmentally safe and socially responsible workplace
Committed to provide environmentally safe and socially responsible workplace Social Commitment Governance Practices Environmental Stewardship Health and safety prioritised for Initiatives both employees and product Manufacturing facilities certified users. with IS 14001:2015, ISO Renewable Ener
Slide 46: ESG Performance Key Highlights
ESG- Performance Key Highlights Environment Social Governance Shareholder satisfaction survey rolled out Materiality Assessment conducted 10.5% reduction in Scope 1 & 2 for 1,25,336 shareholders emission intensity* Shareholders rated “Excellent” on Policies are aligned with NGRBC 2.4% en
Slide 47: Thank You
Thank You Contact us For Investor relations: cs@kei-ind.com 47