Slide 1: Polycab India Limited FY19 Earnings Presentation
Polycab India Limited FY19 Earnings Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Polycab India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
Slide 3: Company Overview
Company Overview
Slide 4: Polycab: A Snapshot
Polycab: A Snapshot One of India’s Leading Electricals Brand with INR 80bn revenues(1) #1 Manufacturer of c.18% Organized and c.12% Exports to 40+ countries 1 Total Market Share(3) Wires and Cables(2) c.44% Growth Diverse Product Portfolio 2 Fast Growing FMEG business CAGR over across Segments FY16
Slide 5: Our Journey
Our Journey Promoters established the Incorporated on Jan 10, 1996 Set up manufacturing facility for PVC Crossed INR 10,000mn in revenue business; manufacturing from Halol insulated power cables house plant wires, telephone cables, optical fibre cables, switch board cables and quad cables at
Slide 6: Key Management Initiatives
Key Management Initiatives Focus on Profitability and Growth Induction of Qualified Professionals Expansion of Distribution Network Enhance Brand Awareness and Customer Loyalty Improvement in Production Processes Expansion of Manufacturing Capacity Improvement in Supply Chain Invest in CRM Programme
Slide 7: One of India's leading Electricals brand - a market leader in Wires & Cables
One of India’s leading Electricals brand - a market leader in India’s Wires & Cables (W&C) industry and fast growing player in the FMEG category Diverse suite of electrical products W&C market leader (1) FY19 Financials (INR mn) • Wires & Cables - Power cables, control c.18% market share of the Reve
Slide 8: Infrastructure Development
Strong political mandate to give impetus to Infrastructure and Industrial Growth DDUGJY(1): 5,934 Rural Electrification projects National Solar Mission : 40-41 GW capacity addition Infrastructure Development Housing for All by 2022 targeting 20mn households Smart Cities Mission: Core infrast
Slide 9: Market leader in wires and cables with a diverse suite of products
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 • Institutional and retail customers in different industries terms of segment revenues, with a market • Made-to-stock: base
Slide 10: Wires & Cables - Attractive market opportunity & strong leadership position
Wires& Cables - Attractive market opportunity & strong leadership position Awaiting data Wires & Cables Poised for Faster Growth(1)… Polycab is a Market Leader in Wires and Cables Segment… In FY18: Wires and Cables industry was: FY18 Wires and Cables Revenue Polycab’s Market Share in FY18 (INR bn) 1
Slide 11: Expanding presence in 'Electricals' ecosystem - Fast growing FMEG business
Expanding presence in ‘Electricals’ ecosystem - Fast growing FMEG business Comprehensive product portfolio w ith 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 lumina
Slide 12: High Growth Opportunity in the Indian FMEG Industry
High Growth Opportunity in the Indian FMEG Industry Fans(1) Switches(2) Switchgear(3) Lighting(4) Water Heater(5) 63 80 111 30 40 62 139 183 286 142 212 301 12 18 32 Domestic 22 12 23 60 10 Industry 20 10 18 74 11 50 19 263 241 7 Opportunity 19 99 5 22 89 30 120 165 138 11 60 19 43 7 (INR bn) 44 FY1
Slide 13: 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 Increased (INR mn) 0.4% 1.4% Multi-Pronged Actively Loyalty Points Advertising As % of Sales Approa
Slide 14: Multi-location manufacturing, high degree of backward integration
Multi-location manufacturing, high degree of backward integration Multi-location manufacturing… Product (1) Location Capacity Wires & Cables (in kms) Halol/ Daman 3,294,463 • 24 m anufacturing f ac ilit ies, a c ross the s t ates of G ujarat , Mahar asht ra and Ut tarakhand an d t he union Lighting
Slide 15: Supported by strong R&D, innovation and quality initiatives
…supported by strong R&D, innovation and quality initiatives … have led to innovations in our product Investments in in-house R&D capabilities… range • NABL I SO 17025 c er tif ied R&D c ent er; ~90 engineers and tec hnicians work ing on R&D proj ects • F lam e r etar dant elas tomeric c om pounds,
Slide 16: Pan India distribution network supporting our diverse customer base
Pan India distribution network supporting our diverse customer base and product categories Our distribution reach Pan India distribution across product categories • 3, 00 0 + a ut ho r i ze d d e a le r s a n d d i s t ri b u t o rs Common West East for W&C • 10 0 , 0 0 0 re t a i l o u t l e t s 21
Slide 17: Proven track record of financial performance (1/2)
Proven track record of financial performance (1/2) Revenue (Rs. mn) EBITDA (Rs. mn) PAT (Rs. mn) 79,560 67,703 10,142 52,075 54,940 7,934 5,003 47,081 5,622 3,586 4,512 4,978 2,406 1,603 1,880 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Delivered growth and continuous
Slide 18: 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) 27.9% 0.44x 0.43x 2,994 2,793 21.0% 0.36x 0.34x 2,360 2,208 16.3% 15.2% 1,817 15.0% 17.5% 15.2% 10.5% 12.0% 0.10x 9.9% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
Slide 19: Promoters and Management team
Promoters and Management team Board of Directors Key Management Inder T. Jaisinghani Ajay T. Jaisinghani Chairman and R. Ramakrishnan Bharat A. Jaisinghani Nikhil R. Jaisinghani Anil Hariani Anil Shipley Manoj Verma Whole-Time Director Managing Director Chief Executive Director – FMEG Business Direc
Slide 20: Shareholding pattern
Shareholding pattern Others 16% FPI 2% MF 3% IFC Promoter 10% 69% Note: As on April 15th 2019 20 Polycab India Limited - FY19 Earnings Presentation
Slide 21: Building Blocks to Implement Future Strategy
Building Blocks to Implement Future Strategy Focus Areas Strategy • Expand into new customer segments, geographies, products Enhance Leadership • Increase focus on international markets such as Africa, UAE etc. position in Wires 1 and Cables • Target growth sectors like mining, infra, renewables, te
Slide 22: Building Blocks to Implement Future Strategy (Cont'd)
Building Blocks to Implement Future Strategy (Cont’d) Focus Areas Strategy • R&D: Optimizing and automating production processes like ASRS(1) implementation and auto replenishment of inventories Continue to Invest in • Invest in CRM systems to enhance customer relationships and services 4 Technology
Slide 23: Polycab's Competitive Strengths will Continue to Drive Success
Polycab’s Competitive Strengths will Continue to Drive Success Operates in one of the Fast Growing Economies with Core Drivers for Electricals Sector Market leader in Wires and Cables in India Pan – India & Global Distribution Network and Exports to 40+ countries Multi – Location Manufacturing Capab
Slide 24: FY2019 Financial Performance
FY2019 Financial Performance
Slide 25: FY2019 highlights – Record annual performance
FY2019 highlights – Record annual performance 18% Revenue 28% EBITDA 40% PAT 11.7% 12.7% 5.3% 6.3% 79,560 67,703 10,142 5,003 7,934 3,586 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 Revenue EBITDA EBITDA Margin PAT PAT Margin Revenue growth of 18% primarily driven by growth in wires & cables and FME
Slide 26: FY2019 segmental performance
FY2019 segmental performance 11% Wires & Cables 33% FMEG FMEG 86% EPC Others Total Income 69,295 6,433 4,637 62,423 4,853 2,491 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 EBIT 8,351 88 198 6,407 75 81 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 All Figures in Rs. mn unless specified Notes: (1) Numbers
Slide 27: Quarterly trends
Quarterly trends Revenue & EBITDA margins FY18 FY19 Q4 FY2019 EBITDA margin at 11.0% Revenue : Rs. 67,587 mn Revenue : Rs. 79,046 mn EBITDA Margin : 11.7% EBITDA Margin : 12.8% − Movement in EBIDTA margins driven by sales and product mix 8.9% 9.8% 9.0% 17.2% 11.6% 11.7% 17.2% 11.0% − On an annual
Slide 28: Q4 FY2019 highlights
Q4 FY2019 highlights Revenue EBITDA PAT 17.2% 17.1% 10.8% 8.9% 9.7% 5.6% 24,448 3,634 1,887 1,965 3,476 21,102 20,280 2,630 1,373 Q4 FY2018 Q3 FY2019 Q4 FY2019 Q4 FY2018 Q3 FY2019 Q4 FY2019 Q4 FY2018 Q3 FY2019 Q4 FY2019 EBITDA EBITDA Margin PAT PAT Margin Revenue growth of 16% in Q4FY19 vs Q4FY18 dr
Slide 29: Q4 FY2019 segmental performance
Q4 FY2019 segmental performance Wires and Cables Wires & Cables FMEG FMEG EPC Others Total Income 1,877 1,909 2,184 18,515 20,632 17,956 1,662 905 892 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 46 EBIT 3,181 3,040 11 131 2,095 83 -46 29 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3
Slide 30: Robust balance sheet enhancing shareholder value
Robust balance sheet enhancing shareholder value ROE ROCE Capex 17.5% 27.90% Rs.279.3 2,793cr.mn Up 227 bps y-o-y Up 695 bps y-o-y Up 55% y-o-y Net Cash Debt/Equity Dividend 452 mn. 452 0.10x Rs. 3/share Up from Rs. (7,897) mn Down from 0.34x in FY2018 Payout of c.10% Notes: (1) ROCE (Return on Capi
Slide 31: Financial statements
Financial statements
Slide 32: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement (Rs. mn) Q4FY19 % Q3FY19 % Q4FY18 % FY2019 % FY2018 % Revenue from Operation 24,448 20,280 21,102 79,560 69,150 Less Excise Duty - - - - 1,446 Net Revenue 24,448 100.0% 20,280 100.0% 21,102 100.0% 79,560 100.0% 67,703 100.0% RM Consumed 19,017 77.8% 14,432 71.2
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet (Rs. mn) FY2019 FY2018 Assets Non-current Assets Fixed Assets 14,686 13,331 Financial / Non-current Assets 2,346 1,891 Total Non-current Assets 17,032 15,222 Current Assets Inventories 19,958 13,657 Trade Receivables 13,343 12,908 Cash and Bank Balances 3,176 106 Others -
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (Rs. mn) FY2019 FY2018 Profit before tax 7,561 5,668 Operating profit before working capital changes 3,499 2,774 (Increase) / Decrease in working capital 3,052 (3,418) Cash generated from operations 14,113 5,024 Net Income Tax Paid (1,814) (1,399) Net Cash Flow from
Slide 35: Polycab India Limited
Polycab India Limited CIN: U31300DL1996PLC266483 Email - investor.relations@polycab.com www.polycab.com