Kei Industries Limited · NSE:KEI
Kei Industries — Investor Presentation (May 2023)
41 slides from Kei Industries's investor presentation, May 2023
Slide 1: KEI Industries Limited Corporate Presentation
KEI INDUSTRIES LIMITED Corporate Presentation March,23 1
Slide 2: Agenda
Agenda Company Overview 1 Company Strengths 2 3 Growth Strategy 4 Industry Prospects 5 Strengthening Brand Recognition 6 Key Financials 7 Appendix 2
Slide 3: Overview and Key Metrics
Overview Key Metrics Leading manufacturer of cables and wires with a wide product ISO 9001:2015 1,700+ 2,000+ portfolio spread across ISO 14001:2015 Institutional ISO 45001:2018 Employees1 Customers1 o EHV, HT and LT Power Cables, House Wire, Stainless Steel Wire Forward integrated into EPC serv
Slide 4: Major Highlights
Major Highlights ET 500 2022 KEI ranking is 289. During FY 2019-20, Company has raised fund US$ 61.73 million through QIP. India Ratings and Research Private Limited, ICRA and CARE have upgraded rating to AA from AA- for Long term bank facilities and affirmed A1+ rating for Short term bank fac
Slide 5: Consistently Evolving Business Model
Consistently Evolving Business Model Focus has been on expanding product portfolio De-risking business by increasing diversification Switch Entry into PVC EHV4 Cables New project – board cables power cable up SSW1 plant at Rubber Cables commercial EHV4 400 KV HW5 Plant at HT3 Cables (33 for DOT
Slide 6: Richly Experienced Management Team
Richly Experienced Management Team Mr. Akshit Diviaj Gupta Mrs. Archana Gupta Director Director Mr. Manoj Kakkar Executive Director (Sales & Marketing) Mr. Rajeev Gupta Executive Director (Finance) & CFO Mr. Anil Gupta Chairman-cum-Managing Director Mr. Lalit Sharma Mr. Manish Mantri COO Sr. Vice Pr
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Wide product basket comprising: Extra-High Voltage Cables up to 400 KV High & Medium Voltage Cables EHV cables HT cables LT cables Control Cables Control & Instrumentation Cables Specialty Cables Submersible Cables Rubber Cables Solar Cables PVC/Poly W
Slide 8: 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 7 locations Strong R&D focus helps in new pr
Slide 9: Well Diversified across Multiple Dimensions
Well Diversified across Multiple Dimensions Wide Product Basket… …With applications across Industries Others, 0% EPC, 6% EHV, 5% SSW, 4% Real Estate HW, WW, Oil & Gas 27% LT Power, 41% Power Cement Cable & Wires HT Cable, 17% Business (90%) Railways Fertlisers FY231 …Coupled with low customer concen
Slide 10: 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 31st March, 23) Cable – 54,800 Kms Chopanki Bhiwadi 1996 House Wire/WW – 190,000 Kms Bhiwadi Stainless Steel Wire – 9,000 MT Pathredi Cable –
Slide 11: Strategically located manufacturing facilities and Strong R&D capabilities
…. 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 by KEMA (The Netherlands), TUV (Rheinland), SGS, IRS, ABS, CEIL, BRE (UK), LLOYDS REGIS
Slide 12: 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… 41% 44% # of Dealers / # of Marketing Distributors1 Offices1 33% 34% 29% North 654 9 South FY19 FY20 FY21 FY22 FY23 367 7 Retail as a % of sales 2 East 450 6 …
Slide 13: Growing Exports Presence
Growing Exports Presence Export Sales of product and services in last 5 years 18% 20% 15% Exports accounted for 10% of sales in FY23 Exports provide 111 10% 13% 15% natural hedge on forex as the company also imports raw 10% 86 75 72 10% materials 66 5% Strong order book for exports of US$ 103.46
Slide 14: Strong Financial Performance
Strong Financial Performance Robust Revenue Growth… …with stable EBITDA Margins… …and strong PAT Growth US$ (Mn) 10.5% 11.4% 10.5% 10.6% US$(Mn) 10.6% 91 853 US$(Mn) 75 707 59 63 46 603 59 55 522 516 31 33 22 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 % EBITDA Cash Fl
Slide 15: Growth Strategy
Growth Strategy Distribution Channel Overseas Retail Business Focus on increasing penetration by further expanding distribution 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
Slide 16: Industry Prospects
Industry Prospects Economic Factors : In FY 2023-24, India’s GDP is expected to rise by 6.5%. India is growing rapidly and is expected to become a US$ 5 trillion economy by 2025. In these nine years, the Indian economy has increased in size from being 10th to 5th largest in the world. Indian e
Slide 17: Industry Prospects: Power and Cable Sectors
Industry Prospects Power and cable Sectors: Expansion in industrial activity to boost cable demand for electricity. India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 411.64 GW as of January 31, 2023 As per the National Infrastructure
Slide 18: Industry Prospects: Real Estate Sectors
Industry Prospects Real State Sectors: Government of India’s Housing for All 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$1 trillion by 2030. By 2025, it will contribute 13% to the country’s GDP.
Slide 19: Industry Prospects: Infrastructure Sectors
Industry Prospects Infrastructure Sectors: India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion Budget 2023-24, the government has given a massive push to the infrastructure sector by allocating Rs.10 lakh crore (US$ 122.08 billion ) to enhance the i
Slide 20: Industry Prospects: Manufacturing 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 21: Strengthening Brand Recognition
Strengthening Brand Recognition Partner 2013-2015 2009-2012 Wires & Cables Specialist Jode Dilon Ke Taar 2016-2017 2019-2020 Har Tension Sahe Chalti Rahe IPL Sponsorship from FY 17 to FY 23 21
Slide 22: Highlights of Branding Activities
…Strengthening Brand Recognition Highlights of Branding Activities Bus Branding Hoarding Katra Railway Station Meet & Greet RCB Delhi 22
Slide 23: Highlights of Sports Sponsorship Activities
…Strengthening Brand Recognition Highlights of Sports Sponsorship Activities Title Sponsorship of Real Tamil Thalaivas- Pro India Vs Bangladesh Kabaddi League Kabaddi League Series On ground Activations Jersey Sponsorships Digital Amplifications 23
Slide 24: Highlights of IPL Sponsorship Activities
…Strengthening Brand Recognition Highlights of IPL Sponsorship Activities 24
Slide 25: Entering into New Digital Marketing Era
…Strengthening Strengthening Brand Recognition Entering into New Digital Marketing Era Launched Brand Film on Digital platforms KEI’s contribution in India’s growth story- 'Desh Ko Aage le Jane wala Raaz' • Collaboration with OTT platforms Sony Liv, Zee5, Hotstar, MX Player Presence over the shows l
Slide 26: BTL Activations to Augment Credibility
…Strengthening Strengthening Brand Recognition BTL Activations to Augment Credibility • Inside Metro Station Branding with DMRC. • Extensive Participation in Events & Exhibitions (Domestic & International). • Marked presence through outdoor campaigns. • Participation in events and exhibitions Extens
Slide 27: Collaboration with NIC and Police Personnel
…Strengthening Strengthening Brand Recognition Collaborated with NIC & National/Regional Police Personnel To deliver the message of safety to children, with utmost conviction, we invited Senior Personnel from NIC & Police Department to share their valuable tips and knowledge about Online & Offline S
Slide 28: Strengthening brand using multi pronged approach
..and strengthening it further using multi pronged approach Advertisement and Publicity Expenses (US$ in Mn) Advertisement 3.46 2.72 Association with Rajasthan royals in past and amplification Via digital presence Meeting with Channel Partners KEI marked presence though outdoor campaigns Par
Slide 29: New Connecting App
… New Connecting App Our online platforms ‘KEI Supply Beam’ and ‘KEI Connect’ (an end-to-end channel management software that enables better decisions, speed and efficiency) keep us connected with ‘Kutumb’. KEI Supply Beam for dealers/distributors. KEI Connect for retailers/electricians 29
Slide 30: Summary Financials (Standalone)
Summary Financials (Standalone) in Million Particulars FY 18 FY 19 FY 20 FY 21 FY 22* FY23 Net Sales 425 522 603 516 707 853 EBITDA 43 55 63 59 75 91 PBT 25 34 40 44 63 79 PAT 18 22 31 33 46 59 Net Fixed Assets 53 64 70 67 68 72 Net Worth 75 96 186 219 264 320 Total Debt(Inc. Buyers Credit and 104 7
Slide 31: Summary Financials (Standalone) Quarterly
Summary Financials (Standalone) in Million Particulars FY 22-Q1* FY 22-Q2* FY 22-Q3* FY 22-Q4* FY 23-Q1 FY 23-Q2 FY 23-Q3 FY 23-Q4 Net Revenue 126 167 193 221 193 199 220 241 PBDIT 14 19 20 22 20 21 24 26 PBT 11 16 17 19 17 18 21 23 PAT 8 11 13 14 13 13 16 17 EPS ( ) 0.09 0.13 0.14 0.16 0.14 0.15 0.
Slide 32: Summary Financials (Product and segment wise)
Summary Financials (Product and segment wise) in Million Particulars FY 21 FY 22 FY 23 FY22-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 FY23-Q3 FY23-Q4 Domestic 268 357 395 67 82 94 113 82 88 105 120 Dealer 174 286 374 48 72 78 89 81 94 98 101 Export 75 72 85 11 16 23 22 30 17 18 20 Net of Ind AS & -
Slide 33: Financial Performance Q4 FY23 Highlights
Financial Performance Q-4 FY 23 Highlights % % RE V E NUE ( I N MN ) EBITDA ( IN MN) PAT ( I N MN ) 7.07 7.21 10.69 6.47 10.98 10.03 16 17 241 24 26 14 221 220 22 16.23% 6.60% 9.06% 9.54% YoY 19.19% 7.38% QoQ YoY QoQ YoY QoQ Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 • R
Slide 34: Financial Performance FY23 Highlights
Financial Performance FY 23 Highlights REVENUE ( IN MN ) EBITDA ( IN MN) PAT ( MN) 10.62% 6.91% 10.54% 6.57% 853 91 707 75 59 46 20.70% 21.58% 26.89 YoY YoY YoY FY22 FY23 FY22 FY23 FY22 FY23 • Revenue improved by 20.70% YoY in FY 23 • EBITDA margin in FY 23 has improved to 10.62% as against 10.54% Y
Slide 35: Balance Sheet (Standalone)
Balance Sheet ( Standalone) in Mn ASSETS FY 23 FY 22* FY 21 EQUITY AND LIABILITIES FY 23 FY 22* FY 21 Non-Current Assets Equity Fixed Assets 71.84 67.58 67.19 Equity Share Capital 2.23 2.22 2.22 other Non Current Assets 3.32 2.30 2.95 Other Equity 317.40 261.40 216.74 Total Non Current Assets 75.16
Slide 36: Shareholding
Shareholding Shareholding Pattern Key Institutional Investors (as of 31st March, 2023) (as of 31st March, 2023) Name of Shareholder % Holding Public and other & other, Smallcap World Fund, INC 4.34% 15.88% Canara Robecco Mutual Fund A/C Canara Promoter, 2.67% 37.21% Robecco Value Fund DII, 19.55% Fr
Slide 37: 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. Tata Community Initiative Trust - The Company
Slide 38: 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 of Jyoti Series & added the new ones to give our activity a 360 degree approach. The Target Group was directly reached out through Physical Events at Government schools
Slide 39: Our Social Responsibility – Partnering for Community Resilience
…Our Social Responsibility - Partnering for Community Resilience Jeevan Jyoti - A Skill Development Program to nurture the head, heart and skills of the Kids of Electricians. Amount spent on CSR Particulars FY 22 FY23 Promoting education 0.22 0.70 Promoting Healthcare Including Preventive Healthcare
Slide 40: Environmental, Social and Governance
Environmental, Social and Governance Committed to provide environmentally safe and socially responsible workplace Environment Use of Renewable Energy to reduce carbon footprint (Reduce GHG emissions) Zero Discharge facility at all the units (Water Conservation) Rainwater Harvesting (Water Cons
Slide 41: « KET
« KET PRINCIPAL PARTNER CIN: L74899DL1992PLC051527 Contact us For investor relations: cs@kei-ind.com Website: www.kei-ind.com 0909090