Cmi Limited · NSE:CMICABLES
Cmi — Investor Presentation (February 2018)
37 slides from Cmi's investor presentation, February 2018
Slide 1: Investor Presentation
Investor Presentation C A B L E S T H AT E M P O W E R February 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by CMI Limited (the “Company”), is solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the
Slide 3: The Company
The Company
Slide 4: CMI Limited is one of the leading wire and cable manufacturers in India
CMI Limited is one of the leading wire and cable manufacturers in India, with two manufacturing plants catering to a diversified customer base Total Revenue (Gross Sales) One of the leading and fastest growing cable manufacturer in India 3,600 An ISO 9001, ISO 14001 and OHSAS 18001 accredited compan
Slide 5: A long history of operations has proven our credibility
A long history of over 50 years of operations has proven our credibility in the growing and specialized wire and cable industry in India Started manufacturing Jelly filled Incorporated as Chaudhari Metal Started manufacturing of variety telecom cables, became Industries with business of metal Name o
Slide 6: Our manufacturing plants at Faridabad and Baddi manufacture a broad range of cables
Our manufacturing plants at Faridabad and Baddi manufacture a broad range of cables catering to varied end-user industries Types of Cables Application Types of Cables Application Quad Cables Specialised safety cables used by Railways for counting Flexible and Building Wires Building Wire cables - fo
Slide 7: Our comprehensive product portfolio (1/4)
Our comprehensive product portfolio ensures that we address the needs of varied customer base spread across sectors (1/4) Bare Overhead Conductor Extra High Voltage Power Medium & High Voltage Power Aerial Bunched Cables Thermocouple Cables Fire Alarm Cables Power Generation, Distribution Cables Cab
Slide 8: Our comprehensive product portfolio (2/4)
Our comprehensive product portfolio ensures that we address the needs of varied customer base spread across sectors (2/4) Railway Signalling & Balise Cables Axle Counter Quad Cables Hard Drawn Copper Incorporate Indoor & Axle Counter Cables Power Cables Railways and Metros Railways and Metros Contac
Slide 9: Our comprehensive product portfolio (3/4)
Our comprehensive product portfolio ensures that we address the needs of varied customer base spread across sectors (3/4) Telephone Cables Braided Cables Air Field Lighting Cables Solar DC Cables Cables for Wind Turbines Submersible Cables Telecom Specialty Specialty Specialty Specialty Specialty Mi
Slide 10: Our comprehensive product portfolio (4/4)
Our comprehensive product portfolio ensures that we address the needs of varied customer base spread across sectors (4/4) Naval Ship Cables Incorporate House / Fire Resistant Wires & Specialty Building/ Industrial Wires & Flexibles Cables Building Construction & Building Construction & Infrastructur
Slide 11: Well-diversified revenue stream with strong focus on government sector
We have a well-diversified revenue stream with strong focus on government sector, thus mitigating the overall business risks Revenue Break-up - Product-wise (FY2017) 0.4% 4.6% 0.03% 8.9% 24.4% 10.6% 13.3% 19.5% 18.3% Signalling Instrumentation Quard Others Power HT Cables Control Telephone Rubber 11
Slide 12: We are one of the few approved vendors across industries and key client segments
We are one of the few approved vendors across industries and key client segments Client Segments Railways Signaling cables Railway Power cables PIJF Quad cables PIJF Telecom cables for Railways Indoor Signaling cables PIJF cables as per TEC specification - Group 1 cables PIJF cables as per TEC speci
Slide 13: Globally accredited product range makes us the favored vendor for blue-chip companies
Our globally accredited product range makes us the favored vendor for blue-chip companies spread across sectors KOCHI REFINERIES BPCL 13 | Private and Confidential
Slide 14: Pan-India presence through sales representatives provides access to key markets
Our pan-India presence through sales representatives provides us with an easy access to key markets Our state-of-the-art production facility is located at Baddi (Himachal Pradesh), complemented by a manufacturing plant at Faridabad (Haryana). Apart from strong domestic presence, we have also catered
Slide 15: Extensive international footprints further fuelling our growth
Our quality of products has helped us in establishing extensive international footprints further fuelling our growth United Kingdom Germany Sharjah Nepal Bhutan Egypt Qatar Switzerland Bangladesh Dubai Kuwait Singapore Uganda Sri Lanka Senegal Mauritius Myanmar Malawi Rwanda Malaysia Zambia 15 | Pri
Slide 16: Focus on innovation and R&D has helped deliver differentiated product offerings
Focus on innovation and R&D has helped us to deliver differentiated product offerings such as Fire Survival and Fire Retardant Low Smoke cables which meet stringent international specifications Our in-house research & development (R&D) facilities are located at Faridabad unit We have developed speci
Slide 17: Addition of Baddi plant has allowed us to pitch for new clients and product segments
With Faridabad unit having long history of operations, the addition of Baddi plant has allowed us to pitch for new clients and product segments and extend our product line to existing clients Key Characteristics of Plants Baddi, Himachal Pradesh Faridabad, Haryana Modern and state-of-the-art facil
Slide 18: Baddi plant has demonstrated substantial revenue growth and improved capacity utilization
Baddi plant has demonstrated substantial revenue growth and continuous improvement in capacity utilization levels since coming on-stream Significant Improvement in Capacity Utilization at Baddi Plant Capacity Utilization (%) 21.3% 9.1% 4.6% Energy efficiency of 20%-30% 9MFY17 9MFY18 FY2017 compared
Slide 19: We expect capital expenditure of Rs. 200 million in Baddi plant
We expect capital expenditure to the tune of Rs. 200 million in Baddi plant to make the plant more versatile Potential Benefits The installation of balancing equipment at Baddi plant will allow us to sell more from this plant to our existing clients through Faridabad unit Capacity Utilization (%) Me
Slide 20: Our experienced and capable management team (1/2)
Our experienced and capable management team to steer the company in the right direction (1/2) Mr. Amit Jain Mr. Rattan Lal Aggarwal Mr. Vijay Kumar Gupta Chairman - cum - Managing Director CFO Whole - time Director Mr. Amit Jain is an industrialist with an experience of Mr. Rattan Lal Aggarwal is a
Slide 21: Our experienced and capable management team (2/2)
Our experienced and capable management team to steer the company in the right direction (1/2) Mr. Munishvar Gaur Mr. V. K. Maheswari Mr. Santosh Kadam Group President President - Works (Faridabad) AVP - Works (Baddi) Mr. Gaur has an experience of more than three Mr. V. K. Maheswari (Dip in Engg.) ha
Slide 22: Industry
Industry
Slide 23: Multiple industry growth drivers are in place
Multiple industry growth drivers are in place to drive the overall company performance going forward Indian Railways Renewables Energy Investments to the tune of Rs. 8.56 lakh crores Immense potential exists for renewable energy planned in next five years for decongestion, safety, sources in India;
Slide 24: Our presence in the wire and cable industry augurs well for the emerging opportunity
Our enviable presence in the wire and cable industry augurs well to capitalize on the emerging multi-billion opportunity Indian Wire and Cable Market 120,000 15% Organized 102,643 Unorganized 90,000 85,536 Rs. Crores 85% 71,280 59,400 60,000 49,500 39,200 41,250 32,667 28,655 30,000 0 FY13-14 FY14-1
Slide 25: Strong relationship with Indian Railways and significant planned investments
A strong relationship with Indian Railways and significant planned investments in Railways present enormous opportunities for CMI Ltd. Capex in Key Segments FY15-19 - Total = Rs. 8,56,020 crores Prioritization of Railway Lines Network Decongestion (including DFC + electrification Doubling + FY2012-1
Slide 26: Upcoming metro projects provide another opportunity
Upcoming metro projects provide another opportunity, with CMI Ltd. been already accepted as a vendor by Delhi Metro Rail Corporation Metro Rail Growth General Metro Rail Capex Breakdown 280 10% 10% Distance (In Kms) 210 140 55% 25% 70 0 2002 2004 2006 2008 2010 2012 2014 2016 Civil Works Rolling Sto
Slide 27: Increased investments in Transmission & Distribution sector
Increased investments in Transmission & Distribution sector are likely to translate into higher revenue and earnings for our company Growth in Transmission Sector 500,000 375,000 in circuit (ckt) km 250,000 125,000 0 6th Plan 7th Plan 8th Plan 9th Plan 10th Plan 11th Plan 12th Plan 13th Plan (e) (e)
Slide 28: Huge investments in the Indian Oil & Gas sector provide revenue visibility
Huge investments in the Indian Oil & Gas sector going forward provides revenue visibility to CMI Ltd. Oil & Gas, Petrochemicals & Fertilizers segment is the third largest industry, after railways and power sector, contributing to the overall revenue of CMI Ltd. For the fiscal year 2018-19, state oil
Slide 29: Increased demand for telecom cables supported by rapid growth in telecom sector
Increased demand for telecom cables supported by rapid growth in the telecom sector provides an opportunity for CMI Ltd. Gross Block (Fixed Assets) of Major Telecom Service Providers 180,000 135,000 According to estimates from IBEF Rs. Crores 90,000 telecommunication report, the Indian 45,000 teleco
Slide 30: Well poised to benefit from opportunities in the Renewable Energy market
With strong product portfolio, we are well poised to benefit from the opportunities opening up in the Renewable Energy market, led by solar and wind energy Immense Growth in Renewables Capacity Led by Solar Investment Required to Achieve 175GW Renewable Energy Target by FY2022 300 30 275 India will
Slide 31: Smart Cities Mission and 'Make In India' initiatives to provide next leg of growth
Smart Cities Mission And ‘Make In India’ initiatives are expected to provide the next leg of growth for the Wire & Cable industry Key Sectors for Investment Under Smart Cities Mission Smart Environment Transport, Others, 9% Smart People 23% Water, 8% Smart Economy Smart Living Smart Mobility Waste M
Slide 32: Financials
Financials
Slide 33: Successive years of impressive topline growth
We have posted successive years of impressive topline growth through organic and inorganic routes of expansion Total Revenue (Net Sales) and Growth Total Revenue (Net Sales - Quarterly) - (Baddi Plant) 4,000 100% 1,000 3,000 75% 750 Rs. Million Rs. Million 2,000 50% 500 1,000 25% 250 0 0% 0 FY13 FY1
Slide 34: Strong revenue growth and cost management translated into consistent growth in net profit
Strong revenue growth coupled with prudent cost management translated into consistent growth in net profit Operating Profit and Operating Margin Net Profit and Net Margin 400 16% 320 9% 300 12% 240 Rs. Million 6% Rs. Million 200 8% 160 3% 100 4% 80 0 0% 0 0% FY13 FY14 FY15 FY16 FY17* FY13 FY14 FY15
Slide 35: Strong balance sheet with minimal debt levels
We have strong balance sheet with minimal debt levels Total Networth Total Debt to Equity Ratio 2,400 3.0 1,800 2.3 Rs. Million 1,200 1.5 600 0.8 0 0.0 FY13 FY14 FY15 FY16* FY17* FY13 FY14 FY15 FY16* FY17* Total Networth Total Debt to Equity Ratio Source: Company, *On a Consolidated Basis, # Networt
Slide 36: Recent financial performance overview
Recent financial performance overview Consolidated Income Statement - 9M (Rs. Million) 9MFY2016 9MFY2017 Sales/income from operations 2,717.3 4,141.8 Excise duty on sale of goods 281.0 138.5 Net Sales 2,436.3 4,003.3 Cost of material consumed 1,908.3 3,071.6 Gross Profit 528.0 931.8 % Margin 21.7% 2
Slide 37: Thank You
Thank You