Kei Industries Limited · NSE:KEI
Kei Industries — Investor Presentation (November 2024)
47 slides from Kei Industries's investor presentation, November 2024
Slide 1: KEI Industries Limited Corporate Presentation
KEI INDUSTRIES LIMITED CORPORATE PRESENTATION NOV, 2024
Slide 2: Contents
Contents • Company Overview • Company Strengths • Growth Strategy • Industry Prospects • Brand Recognition • Key Financials • ESG • CSR • Shareholding Pattern 1
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 • FY24 Revenue: INR 8,104 Cr., EBITDA: I
Slide 5: Revenue Overview FY24 H1 FY25
Revenue Overview Revenue Split by Product and Customer / Channel 7% -1% 8% 3% 13% 47% 29% FY24 38% 40% 16% EHV LT Power HT Cable HW, WW SSW EPC Other 1 Export Institutional Retail 5% -1% 3% 4% 11% 54% H1 FY25 32% 40% 35% 17% EHV LT Power HT Cable HW, WW SSW EPC Other 1 Export Institutional Retail No
Slide 6: Order Book Summary
Order Book Summary Healthy and growing order book of INR 3,933 Cr. (as of 30th Sep, 2024) Order Book (INR Cr.) 8% 3,933 15% 3,598 3,412 62% 2,469 15% Mar'22 Mar'23 Mar'24 Sep'24 Cable-Domestic Cable-Export EPC EHV 5 Note: EHV: Extra High Voltage
Slide 7: Consistently Evolving Business Model
Consistently Evolving Business Model ✓ Focus on expanding product portfolio ✓ De-risking business by increasing diversification EHV Cables Switch Entry into PVC New project – SSW plant at Rubber Cables commercial EHV 400 KV HW Plant at board cables power cable up HT Cables Bhiwadi upto 11 kV product
Slide 8: Company Strengths
RINCI NER Company Strengths
Slide 9: 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 10: Comprehensive Product Portfolio
Comprehensive Product Portfolio… Wide product basket comprising: EHV Cables High Tension Low Tension Control (Up to 400kV) Cables Cables Cables • Extra-High Voltage Cables up to 400 KV • High & Medium Voltage Cables • Control & Instrumentation Cables • Specialty Cables Instrumentation Marine & Offsh
Slide 11: Well Diversified Across Multiple Dimensions
…Well Diversified Across Multiple Dimensions Wide Product Basket… …With applications across Industries 1 EPC Others EHV -1% SSW 7% 8% 3% LT Power Power Oil & Gas Real Estate Cement Railways, Metro 38% Rail & Rapid Rail HW, WW 29% Cable & Wires HT Cable Business (91%) 16% Automobiles Steel Fertilizer
Slide 12: 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 Sep, 24) • Cable – 64,200 Kms Bhiwadi 1996 • House Wire/WW – 190,000 Kms Chopanki • Stainless Steel Wire – 9,000 MT Bhiwadi • Cable – 34,800 Kms
Slide 13: Manufacturing Facilities & R&D Capabilities (Quality Standards)
…Strategically Located Manufacturing Facilities & Strong R&D Capabilities Pathredi Plant Bhiwadi Plant Chopanki Plant Adherence to the most stringent quality standards Our products are tested by KEMA (The Netherlands), TUV (Rheinland), SGS, IRS, ABS, CEIL, BRE (UK), LLOYDS REGISTER, BVQI, DNV, CPRI,
Slide 14: Strong Presence in Retail Segment with Distribution Network
Strong Presence in Retail Segment with a Well Entrenched Distribution Network Increasing focus on retail… …With strong distribution network… 54% # of Dealers / # of Marketing Distributors2 Offices2 47% 46% North 740 9 41% South 390 7 FY22 FY23 FY24 H1 FY25 Retail as a % of sales1 East 483 6 …Leading
Slide 15: Growing Exports Presence
Growing Exports Presence Export Sales in the last 3 years 13% • Exports accounted for 13% of sales in FY24 10% 10% • Exports provide natural hedge on forex as the 1,097 company also imports raw materials 693 585 • Strong order book for exports of INR 731 Cr. (including EPC) as of 30th Sep, 2024 FY22
Slide 16: Strong Financial Performance
Strong Financial Performance % margin Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR Cr. 10.5% 10.6% 10.9% 6.6% 6.9% 7.2% 8,104 INR Cr. 887 INR Cr. 581 6,908 734 477 376 5,727 604 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Cash Flow1 Robust Return Ratios2 Comfortabl
Slide 17: Experienced Management Team
Experienced Management Team Mrs. Archana Gupta Mr. Akshit Diviaj Gupta Director Director Mr. Manoj Kakkar Executive Director (Sales & Marketing) Mr. Rajeev Gupta Executive Director (Finance) & CFO Mr. Kishore Kunal Vice President (Corporate Finance) & Company Secretary Mr. Anil Gupta Chairman & MD M
Slide 18: Growth Strategy
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Slide 19: Growth Strategy
Growth Strategy Expand Distribution Network Increase penetration by Grow Retail expanding distribution network Business Scale up Exports Continued focus to increase Further increase presence in share of retail business overseas market Capacity Gain Share in Expansion EHV Market Increase capacity Foc
Slide 20: Industry Prospects
Saf — ih Wires & Cables RINCIPAL PA ie RTNER Industry prospects
Slide 21: Industry Prospects: Economic Factors
Industry Prospects Economic Factors: • In FY 2024-25, ndia’s G P is expected to rise by 7.2%. Moody's Ratings has forecasted ndian 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. In
Slide 22: Industry Prospects: Power and Cable Sector
…Industry Prospects Power and Cable Sector: • 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 con
Slide 23: Industry Prospects: Real Estate Sector
…Industry Prospects Real Estate Sector: • Government of ndia’s Housing for ll 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$1 trillion by 2030. By 2025, it will contribute 13% to the country’s G P • Pri
Slide 24: Industry Prospects: Infrastructure Sector
…Industry Prospects Infrastructure Sector: • India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion • As per union Budget 2024-25, The government has allocated INR 11.11 Lakh Cr. (US$ 133.02 billion) for capital expenditure, which is 3.4% of the country’s
Slide 25: 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 26: Brand Recognition
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Slide 27: Strengthening Brand Recognition
Strengthening Brand Recognition Partner 2009-2012 2013-2015 Wires & Cables Specialist Har Tension Sahe Jode Dilon Ke Taar 2016-2017 2019-2020 Chalti Rahe IPL Sponsorship from FY 17 to FY 24 26
Slide 28: Strengthening Brand Recognition: Sports Sponsorship Highlights
…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 Sponsorships Highlights of IPL Sponsorship Activities 27
Slide 29: Multi-pronged Approach to Further Strengthen Brand Positioning
Multi-pronged Approach to Further Strengthen Brand Positioning Advertisement & Publicity expenses (INR Cr.) 41 28 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 ele
Slide 30: Key Financials
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Slide 31: Financial Highlights
Financial Highlights % margin Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth INR Cr. 10.5% 10.6% 10.9% 6.6% 6.9% 7.2% 8,104 INR Cr. 887 INR Cr. 581 6,908 734 477 376 5,727 604 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Cash Flow1 Robust Return Ratios2 Comfortable Debt P
Slide 32: H1 FY25 Performance
H1 FY25 Performance % margin REVENUE (INR CR.) EBITDA (INR CR.) PAT (INR CR.) 10.83% 7.03% 4,340 10.69% 470 7.02% 3,725 305 398 261 16.5% 18.0% YoY YoY 16.6% YoY H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 31
Slide 33: ESG
ESG
Slide 34: Our ESG Journey
Our ESG Journey • Multiple awareness sessions conducted covering factory personnel, Capacity Building HO Staff and suppliers • 20 relevant ESG topics identified Materiality Assessment • Survey floated across all internal & external stakeholders • 8 high priority material issues identified • Supplier
Slide 35: Our ESG Journey: High Priority Material Issues
…Our ESG Journey 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 36: Committed to Environmentally Safe and Socially Responsible Workplace
Committed to Provide Environmentally Safe and Socially Responsible Workplace Environmental Stewardship Social Commitment Governance Practices Initiatives ✓ Health and safety prioritised for ✓ Manufacturing facilities certified ✓ Renewable Energy Utilisation to lower both employees and product with IS
Slide 37: ESG Performance – Key Highlights
ESG Performance – Key Highlights Environment Social Governance ✓ 10.5% reduction in Scope ✓ Shareholder satisfaction survey rolled ✓ Materiality Assessment 1 & 2 emission intensity1 out for 1,25,336 shareholders conducted ✓ 2.4% energy intensity1 ✓ Shareholders rated “Excellent” on ✓ Policies are al
Slide 38: CSR
NCI Wires & Cables PA PARTNER
Slide 39: Our Social Responsibility – Partnering for Community Resilience
Our Social Responsibility – Partnering for Community Resilience • This year, we integrated all the elements from our past activities Swasthya Utsav focused of the Jyoti Series and added new ones to give our activity a 360- degree approach on these three aspects • The target group was directly reache
Slide 40: Our Social Responsibility: CSR Spend
…Our Social Responsibility – Partnering for Community Resilience Swasthya Utsav – A Skill Development Program to nurture the mind, heart and skills of the children of electricians Amount spent on CSR (in INR Cr.) Particulars FY 22 FY23 FY24 Promoting education 1.77 5.61 3.06 Promoting healthcare inc
Slide 41: Shareholding Pattern
Shareholding Pattern
Slide 42: Shareholding
Shareholding Shareholding Pattern Key Institutional Investors (as of 30th Sep, 2024) (as of 30th Sep, 2024) Name of Shareholder % Holding Small Cap World Fund, INC 2.61% HSBC Multi Asset Allocation Fund 2.37% Canara Robecco Mutual Fund A/C Canara Robecco Public / 2.12% Other Manufacturing Fund 15.83
Slide 43: Appendix
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Slide 44: Summary Financials
Summary Financials Summary of Financials INR Cr. Particulars FY 221 FY23 FY24 Net Sales 5,727 6,908 8,104 EBITDA 604 734 887 PBT 508 642 781 PAT 376 477 581 Net Fixed Assets 547 582 891 Net Worth 2,135 2,589 3,148 Total Debt2 331 135 134 ROCE (%) 24 26 27 ROE (%) 19 20 20 Note: Based on standalone f
Slide 45: Summary Financials (Product and Segment wise)
Summary Financials (Product and Segment wise) INR Cr. Particulars FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Domestic 3,064 3,297 642 785 844 1,026 754 782 Dealer 3,166 3,770 842 923 949 1,056 1,085 1,258 Export 693 1,097 307 249 284 257 233 241 Net of Ind AS & other (15) (60) (10) (1
Slide 46: Balance Sheet
Balance Sheet INR Cr. ASSETS H1 FY 251 FY 24 FY 23 EQUITY AND LIABILITIES H1 FY 251 FY 24 FY 23 Non-Current Assets Equity Fixed Assets 1,084 891 582 Equity Share Capital 18 18 18 Other Non Current 162 68 27 Other Equity 3,440 3,130 2,571 Assets Total Non Current Assets 1,246 959 609 Total Equity 3,4
Slide 47: Thank You
Thank You Contact us For Investor relations: cs@kei-ind.com 46
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