Kei Industries Limited · NSE:KEI

Kei Industries — Investor Presentation (December 2020)

32 slides from Kei Industries's investor presentation, December 2020

  1. Slide 1: KEI Industries Limited Corporate Presentation

    KEI INDUSTRIES LIMITED Corporate Presentation Dec, 2020 www.kei-ind.com 1

  2. Slide 2: Agenda

    Agenda Company Overview Company Strengths Growth Strategy Industry Prospects Strengthening Brand Recognition Key Financials Appendix 2

  3. Slide 3: Company Overview

    Company Overview Overview Key Metrics  Leading manufacturer of cables and wires with a wide product portfolio spread across o EHV, HT and LT Power Cables, House Wire, Stainless Steel Wire 5 2,300+ 1,500+ Manufacturing Employees1 Institutional  Forward integrated into EPC services for Power, Plants

  4. Slide 4: Major Highlights

    Major Highlights  ET 500 2019 KEI ranking improve to 317 against 338 previous ranking.  During FY 2019-20, Company has raised fund Rs. 500 Crore through QIP  ICRA Ltd & CARE has upgraded long term rating A + from A recently in Sep,20 and short term rating A1 from A2+ .  Insurance of Receivables

  5. Slide 5: Consistently Evolving Business Model

    Consistently Evolving Business Model EPC contract for EHV4 Cables EHV 400 KV 220 KV sub- commercial commissioned station production (66 Ventured into to 220 kV)  Focus has been on expanding product portfolio EPC business New project – HT3 Cables (33  De-risking business by increasing diversificati

  6. Slide 6: Richly Experienced Management Team

    Richly Experienced Management Team Chairman-cum- Mr. Manoj Executive Director Mr. Anil Gupta Managing Director Kakkar (Sales & Marketing) Ms. Archana Director Mr. Lalit Sharma COO Gupta Mr. Akshit Diviaj Sr. Vice President Director Mr. K.C. Sharma Gupta (operation-Bhiwadi) Mr. Rajeev Executive Direc

  7. Slide 7: Comprehensive Product Portfolio

    Comprehensive Product Portfolio Wide product basket comprising:  Extra-High Voltage Cables up to 400 KV  High & Medium Voltage EHV cables LT cables HT cables Cables  Control & Instrumentation Cables  Specialty Cables  Submersible Cables Control cables Instrumentation Offshore cables  Rubber Ca

  8. Slide 8: Company Strengths

    Company Strengths 1 • Well diversified across multiple dimensions o Wide basket of products used across multiple industries o Low customer concentration 2 • Strategically located manufacturing facilities and Strong R&D capabilities o Manufacturing facilities across 5 locations o Strong R&D focus hel

  9. Slide 9: Well Diversified across Multiple Dimensions

    1 Well Diversified across Multiple Dimensions Wide Product Basket… …With applications across Industries EHV, 9% EPC, 16% SSW, 3% Power Oil & Gas Real Estate Cement HW, WW, 17% LT Power, 41% Cable & Wires HT Cable, 14% Business (81%) FY201 Railways Automobiles Steel Fertlisers …Coupled with low custo

  10. Slide 10: Strategically located manufacturing facilities and Strong R&D capabilities

    2 Strategically located manufacturing facilities and Strong R&D capabilities Plant Locations and Key Capacities Plant Location Start Date Capacity (As of 31st March’20)  Cable – 57,400 Kms  House Wire – 190,000 Kms Bhiwadi 1996 Chopanki  Stainless Steel Wire – 6,600 Bhiwadi Kms  Cable – 30,000 K

  11. Slide 11: Strategically located manufacturing facilities and Strong R&D capabilities (cont.)

    …. 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 as per international standards by: KEMA (The Netherlands), FGH (Germany), TUV (Rheinlan

  12. Slide 12: Strong presence in retail segment with a well entrenched distribution network

    3 Strong presence in retail segment with a well entrenched distribution network Increasing focus on retail… …With strong distribution network… # of Dealers / # of Marketing 33% Distributors1 Offices1 28% 29% 26% 26% North 561 8 South 351 7 East 398 5 FY16 FY17 FY18 FY19 FY20 Retail as a % of sales 2

  13. Slide 13: Growing Exports Presence

    4 Growing Exports Presence Exports sales have increased over last 5 years 18% 20%  Exports accounted for 18% of sales in FY20 Exports 14% 899 13% 13% 15% provide natural hedge on forex as the company also 8% 10% imports raw materials 532 454 379 5%  Strong order book for exports of Rs. 445 Cr as o

  14. Slide 14: Strong Financial Performance

    5 Strong Financial Performance Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR (Cr) 4,884 INR (Cr) 10.7% 10.5% 10.1% 10.6% 10.5% 255 4,227 513 INR (Cr) 449 182 3,446 145 348 2,666 2,325 94 279 248 62 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19

  15. Slide 15: Growth Strategy

    Growth Strategy Distribution Channel Retail Business Focus on increasing penetration by further expanding distribution Overseas Market Continued focus to increase network Further increase presence in share of retail business in overall sales mix overseas market Capacity Expansion FMEG Market Increas

  16. Slide 16: Industry Prospects

    Industry Prospects Economic Factors :  India’s real GDP growth rate was 4.2 per cent in 2019-20 against estimated by NSO 6.1% .  In May 2020, Government, adding to its past measures and that of RBI (Reserve Bank of India), announced a consolidated stimulus package of Rs 20 lakh crore (US$ 283.73 b

  17. Slide 17: Industry Prospects: Power and Cable Sectors

    Industry Prospects Power and cable Sectors:  India’s power sector is forecasted to attract investments worth Rs 9-9.5 trillion (US$ 128.24-135.37 billion) between FY19-23.  Expansion in industrial activity to boost cable demand for electricity.  As per Economic Survey 2018-19, additional investme

  18. Slide 18: Industry Prospects: Demand Assessment

    Industry Prospects Demand Assessment for 2018-2022 - Equipment Wise ( as per IEEMA report ) Demand ( km) FY 2018-2022 CAGR Growth Cables (KV) Conservativ Realistic Optimistic Conservative Realistic Optimistic e scenario scenario scenario scenario scenario scenario PC - up to 1.1 kV 21,02,893 23,74,7

  19. Slide 19: Industry Prospects: Real Estate Sectors

    Industry Prospects Real State Sectors:  In March 2020, the Government approved proposals from TCS and DLF to set up SEZs for IT sector in Haryana and Uttar Pradesh  Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute

  20. Slide 20: Industry Prospects: Infrastructure Sectors

    Industry Prospects Infrastructure Sectors:  India has a requirement of investment worth Rs 50 trillion (US$777.73billion) in infrastructure by 2022 to have sustainable development in the country. Sectors like power transmission, roads & highways and renewable energy will drive the investments in th

  21. Slide 21: Industry Prospects: Manufacturing Sectors

    Industry Prospects Manufacturing Sectors:  Manufacturing has emerged as one of the high growth sectors in India. Prime Minister of India, Mr. Narendra Modi, launched the ‘Make in India’ program to place India on the world map as a manufacturing hub and give global recognition to the Indian economy.

  22. Slide 22: Industry Prospects: EPC Sector

    Industry Prospects EPC sector:  Govt has launched various scheme for up gradation of transmission and distribution network in rural and urban area. Funds have allocated Rs 43,033 crore (US$ 6.64 billion) towards the Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Rs 32,612 crore (US$ 5.04 billio

  23. Slide 23: Strengthening Brand Recognition

    Strengthening Brand Recognition 2009-2012 Wires & Cables Specialist Partner 2013-2015 2016-2017 Jode Dilon Ke Taar Har Tension Sahe Chalti 2019 onwards Rahe IPL Sponsorship from FY 17 to FY 21 23

  24. Slide 24: Strengthening brand recognition using multi pronged approach

    … and strengthening it further using multi pronged approach Advertisement & Publicity Expenditure (INR mn) 259.75 Points via Jode Dilo ke Taar App Various Electrician Increased 36.97 Meet to aware Advertising on Product and Brand Social Media and Sales Promotion FY 14 FY 20 Various Dealer Meet Coupo

  25. Slide 25: Summary Financials (Standalone)

    Summary Financials (Standalone) In Rs Cr FY16 FY 17 FY 18 FY 19 FY 20 Net Sales 2,325 2,666 3,446 4,227 4,884 EBITDA 248 279 348 449 513 PBT 95 126 204 279 327 PAT 62 94 145 182 255 Net Fixed Assets 357 408 430 520 565 Net Worth 366 461 605 779 1507 Total Debt(Inc. Buyers Credit 567 813 842 600 367

  26. Slide 26: Summary Financials (Standalone)

    Summary Financials (Standalone) ` in Crore Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 Net Revenue 1259 1081 1230 1314 1259 745 1037 1153 PBDIT 141 119 127 144 123 81 122 128 PBT 90 71 77 97 82 50 93 108 PAT 60 46 76 72 61 36 68 80 EPS 7.6 5.85 9.65 9.10 7.03 4.05 7.61 8.86 26

  27. Slide 27: Summary Financials (Product and segment wise)

    Summary Financials (Product and segment wise) ` in Crore Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales FY 18 FY 19 FY 20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 Domestic 2022 2338 2623 613 651 657 701 386 544 623 Dealer 978 1400 1413 366 355 371 321 186 348 410 Export 454 531 899 112 235 300 252 183 160 139 Less: Ind A

  28. Slide 28: Balance Sheet (Standalone)

    Balance Sheet ( Standalone) ` in Crore ASSETS FY 21 9M* FY 20 FY 19 EQUITY AND LIABILITIES FY 21 9M* FY 20 FY 19 Non-Current Assets Equity Fixed Assets 553.17 564.83 520.26 Equity Share Capital 17.97 17.90 15.79 other Non Current Assets 16.67 18.09 18.27 Other Equity 1,691.50 1,488.86 763.11 Total N

  29. Slide 29: Shareholding

    Shareholding Shareholding Pattern as on 31.12.2020 Shareholding Pattern (as of 31 Dec, 2020) Key Institutional Investors (as of 31 Dec, 2020) Others- 4.66% Name of Shareholder % Holding Franklin Templeton 5.31% Public- HDFC Asset Management 4.48% 15.22% DSP INDIA 4.25% Promoter- Masachusetts Institu

  30. Slide 30: Our Social Responsibility - Partnering for Community Resilience

    Our Social Responsibility - Partnering for Community Resilience Our CSR initiatives span across several critical areas of human progress, including healthcare, hunger and poverty eradication, education, environmental sustainability and sports promotion. This year, we also contributed funds to PMCARE

  31. Slide 31: Environmental, Social and Governance

    Environmental, Social and Governance KEI is committed to provide a safe and environmentally responsible workplace in the communities where we operate.  Our all manufacturing facilities conform with the ISO 14001:2015 certification for environment management system, the OHSAS 18001: 2007 certificati

  32. Slide 32: Thank You

    www.kei-ind.com Thank You

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