Slide 1: Polycab India Limited – Corporate Presentation filing letter
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:shares@polycab.com Web: www.polycab.com Date: 21st January 2020 To To Department of Corporate Se
Slide 2: Corporate Presentation 21 January 2020
Corporate Presentation 21 January 2020 1
Slide 3: Content
Content 01 Company Overview 02 Leadership in Wires & Cables 03 Fast growing FMEG Business 04 Strengthening Brand Recognition 05 Supported by strong Manufacturing & R&D capabilities 06 Robust Financials 2 2
Slide 4: Company Overview
Content 01 Company Overview 3 3
Slide 5: Polycab: A Snapshot
Polycab: A Snapshot Fast Growing FMEG #1 Manufacturer in India PAN India Network Brand 3,450+ Dealers & Distributors Market leader in Wires and Cables1 1,25,000+ Retail Outlets 5-year CAGR at ~51% 12% Overall Market Share2 Manufacturing Strong Management Proven Track Footprint Bandwidth Record 25 Fa
Slide 6: Our Journey
Our Journey Promoters Set up manufacturing Investment from IFC Forayed into the Manufacturing of FY 19 – Achieved established facility for PVC of INR 4,018 mn switches segment ceiling fans at INR 79,560 mn in the business; insulated power Roorkee, Revenue , EBITDA of manufacturing cables house wires
Slide 7: Our Segments: An Overview
Our Segments: An Overview % of Total Revenue 86% Wires & Cables FY 19 Total Revenue 8% 79,856 Mn Fast Moving Electrical Goods 6% Other (incl. EPC) Notes: Consolidated Revenue in INR Mn 6
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 Development Industrial Growth Consumer Spend Government announced expenditure of ~ INR 102 Impetus from government initiatives such as: lakh crore in infrastructure sector ove
Slide 9: Key Management Initiatives in the recent past
Key Management Initiatives in the recent past Improvement in Production Process Expansion of Enhance Brand Awareness Manufacturing Capacity and Customer Loyalty Improvement in Expansion of Supply Chain Distribution Network Induction of Invest in CRM Qualified Professionals Programme Focus on Profita
Slide 10: Leadership in Wires & Cables
Agenda Content 01 Leadership in Wires & Cables 9 9
Slide 11: Market leader in Wires and Cables with a diverse suite of products
Market leader in Wires and Cables with a diverse suite of products Polycab is the largest Wires and Cables manufacturer in India, with Wide Customer Base across Industries… a strong suite of products… Power Cable Optical Fiber Cable Building Wires Power Oil and Gas Construction FR (Flame Retardant)
Slide 12: Going strong at the back of attractive market opportunities
Going strong at the back of attractive market opportunities… Wires & Cables Poised for Faster Growth1… …Polycab 5-year C&W Revenue CAGR: ~14% In FY18: Wires and Cables industry was: …With Increasing share of organized players2 (INR bn / %) 40–45% of the 8% of the Organized Unorganized electrical man
Slide 13: …with a dominant position in Wires and Cables industry
…with a dominant position in Wires and Cables industry FY19 Wires and Cables Revenue(1)(2) Polycab’s Market Share in FY18 2.2x 2.2x 12.0% 69 18.0% 32 32 Organized Total Polycab Peer 1 Peer 2 The Polycab Advantage Marquee Made to Made to Innovative Availability Distribution Supply Chain Customers Sto
Slide 14: Fast growing FMEG Business
Agenda Content 03 Fast growing FMEG Business 13 13
Slide 15: FMEG: Expanding presence in 'Electricals' ecosystem
FMEG : Expanding presence in ‘Electricals’ ecosystem FMEG contribution to top line close to double digits from 0.4% in FY14 Forayed in FY14 ... ❖ Diversified portfolio with focus on the upcoming industry trends ❖ Inhouse Manufacturing ❖ Pan India Distribution ❖ Present in Fans, Lighting Luminaires,
Slide 16: High Growth Opportunity in the Indian FMEG Industry
High Growth Opportunity in the Indian FMEG Industry Fans1 Switches2 Switchgear3 Lighting4 30% 25% 36% 14% Declining share of 20% 25% 10% 8% 70% 20% 35% Unorganized 20% Players 22 23 12 60 20 18 19 10 19 74 Domestic Industry 89 263 11 50 241 Opportunity 60 165 99 44 30 120 138 19 (INR Bn) 43 FY14 FY1
Slide 17: Polycab Experience Centres
Expanding presence in ‘Electricals’ ecosystem: Polycab Experience Centres ❖ 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 India ❖ Deepens
Slide 18: Strengthening Brand Recognition
Agenda Content 04 Strengthening Brand Recognition 17 17
Slide 19: Strong Brand Recognition in the Electricals Industry
Strong Brand Recognition in the Electricals Industry.. From B2B to B2C Our Brand Journey ‘Connection Zindagi Ka’ was a hit with customers- the impactful narrative with their minds and hearts 2013 2014 2016- 2017 2018 R Madhavan, actor 2019 A yu s h m a n n K h u r r a n a , & P a r e s h R a wa l (
Slide 20: Strengthening brand using multi pronged approach
… and strengthening it further using multi pronged approach Advertising and Sales Promotion Expenditure As % of Sales 1.5% (INR mn) 1,159 0.4% 163 FY14 FY19 Multi pronged Actively engage Loyalty Points via Increased Advertising approach to increase Dealers and Bandhan Star App on Social Media and br
Slide 21: Pan India distribution network to support diverse customer base
Pan India distribution network to support diverse customer base and product categories 1,700+ dealers Our 3,450+ authorized and distributors Sales & marketing dealers & 125,000+ through corporate distribution distributers pan-India retail outlets office, 3 regional exclusively for offices & 20 local
Slide 22: Catering to marquee customers
Catering to marquee customers Total Revenue Contribution in FY19 Oil & Gas 5% Top Customer 13% Metal Export Top 5 Customers 21% Top 10 Customers 61% Infrastructure Rest of the customers Paints Auto Chemicals Revenue from outside India (% of total revenue) 9.5% Telecom Cement 5.1% Power 3.1% Governme
Slide 23: Strategic initiatives to drive sustainable growth over long term
Strategic initiatives to drive sustainable growth over long term Links internal Strategic initiative aimed at increasing systems with market share in FMEG and retail wires authorized segments; has led to increase in distributors retailers & distributors in the c.123 locations where implemented Distr
Slide 24: Supported by strong Manufacturing & R&D capabilities
Agenda Content 05 Supported by strong Manufacturing & R&D capabilities 23 23
Slide 25: 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 2.4mn Halol Fan Manufacturing Unit Waghodia Copper Rods 2.25mn MT Steel Wires 0.06mn MT Channi Lighting & Luminaires 18.2mn Halol Aluminum & copper
Slide 26: Strong R&D and innovation capabilities with quality assurance
…Strong R&D and innovation capabilities with quality assurance Investments in in-house R&D capabilities with strong focus on backward integration… Green Wire Our ecological initiative ✓ NABL ISO 17025 certified R&D centre to support own Launched Green Wire in 2017 an energy manufacturing efficient a
Slide 27: Robust Financials
Agenda Content 06 Robust Financials 26 26
Slide 28: Proven track record of financial performance (1/2)
Proven track record of financial performance (1/2) Revenue INR mn EBITDA INR mn PAT INR mn Revenue Revenue Growth % EBITDA EBITDA Margin % PAT PAT Margin % 8.2% 23.5% 21.3% 11.9% 12.4% 5.3% 6.3% 10.6% 17.7% 9.3% 9.3% 10.9% 4.4% 5.5% 8.7% 3.4% 3.6% 79,856 5,505 9,504 5,003 67,831 67,006 8,328 54,940
Slide 29: Proven track record of financial performance (2/2)
Proven track record of financial performance (2/2) ROCE/ROE % Debt/Equity ratio Capital Expenditure (INR mn) ROE ROCE ROCE post tax 27.9% 26.0% 0.44x 2,994 0.43x 2,814 21.0% 0.36x 0.34x 2,360 2,379 19.5% 2,208 16.3% 17.5% 1,817 15.0% 15.2% 15.2% 12.0% 9.9% 10.5% 0.10x 10.8% 9.9% 10.1% 13.7% 18.2% 19
Slide 30: Consolidated Annual Profit and Loss Statement
Consolidated Annual Profit and Loss Statement Particulars (INR Mn) FY 2019 % FY 2018 % FY 2017 % 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%
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Mn) FY 2019 FY 2018 FY 2017 Particulars (INR Mn) FY 2019 FY 2018 FY 2017 Assets Equity & Liabilities Non-Current Assets Shareholder's Funds Share Capital 1,412 1,412 1,412 Fixed Assets 14,686 13,331 12,933 Reserves and Surplus 27,057 22,064 18,630 Financia
Slide 32: 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 33: 9M & Q3 FY20 Key Highlights
9M & Q3 FY20 Key Highlights Q3 vs Q3 Q3 vs Q2 Revenue Growth Revenue: 21% 9M-o-9M 24% Y-o-Y 12% Q-o-Q Profitability PAT: 53% 9M-o-9M 14% Y-o-Y 14% Q-o-Q Returns 26.0% 30.6% 30.6% ROCE: 53bp 9M-o-9M -612bp Y-o-Y 431bp Q-o-Q Balance sheet as on Dec'19 Dec'18 Sep'18 Net Cash: 6.4bn -6.1bn 3.9bn Notes:
Slide 34: Shareholding Pattern
Shareholding Pattern 69% Promoter Others 14% IFC 9.5% MF 3% FPI 5% Notes: As on December 31st 2019 Notes: As on September 30th 2019 33
Slide 35: Leadership Team - Board of Directors
Leadership Team - Board of Directors Inder T Jaisinghani Ajay T Jaisinghani Ramesh T Jaisinghani SL Bajaj Chairman and Managing Director Whole-Time Director Whole-Time Director CFO & Whole-Time Director Qualified Chartered Accountant & has previously served major leadership role in Vedanta Ltd, Hind
Slide 36: Leadership Team - Key Management
Leadership Team - Key Management ❖ Blend of Entrepreneurial and Professional Management ❖ Professionals with Prior Experience in Vedanta, Tata Group, Unilever, Havells, Bajaj, SRBC & Co, Crompton, etc. ❖ Vision to Execute Strategies in a Dynamic Environment ❖ Extensive Relationships and Deep Busines
Slide 37: 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 Adolescence through services
Slide 38: Enhancing shareholder value
Enhancing shareholder value Market Cap Market Cap ~INR 147.7 Bn. ~USD 2.1 Bn. (as of 31 Dec 2019) 51.4% 5.0% 3.2% 1.1% 0.9% Apr'19 May'19 Jun'19 Jul'19 Aug'19 Sep'19 Oct'19 Nov'19 Dec'19 POLYCAB BSE SENSEX NIFTY NIFTY 500 MSCI* MSCI* - MSCI India Price Index 37 USD INR average spot rate 9M FY20
Slide 39: 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 40: Thank you
Thank you 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