Cg Power & Industrial Solutions Ltd · NSE:CGPOWER
Cg Power & Industrial Solutions — Non-Deal Roadshow (December 2024)
34 slides from Cg Power & Industrial Solutions's roadshow presentation, Dec 2, 2024
Slide 1: Exchange cover letter for presentation at investor meetings
Our Ref: COSEC/206/2024-25 2nd December, 2024 By portal The Corporate Relationship The Assistant Manager – Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Bandra-Kurla 1st Floor, New Trading Ring Complex, Rotunda Building, Bandra (East), Phiroze Jeejeebhoy Towers
Slide 2: CG Power and Industrial Solutions Ltd. Corporate Presentation – December 2024
CG Power and Industrial Solutions Ltd. (CGPISL) Corporate Presentation – December 2024 RESTRICTED
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (“Presentation”) does not constitute a prospectus, disclosure document, placement document, offering memorandum or an offer, or a solicitation of any offer, and should not be construed as, any present or future invitation, recommendation or of
Slide 4: Table of contents
Table of contents 1. Company overview 2. The road ahead 3. Our financial performance 4. Creating sustainable value for our stakeholders 2 RESTRICTED
Slide 5: Company overview
™ CG Power and= @ industrial Soluti
Slide 6: CG – snapshot of who we are today
CG – snapshot of who we are today CG in numbers One of the leading players in capital goods industry catering to 3 critical levers of nation's growth engine - Power, Railways and Manufacturing AA+/Stable 86 INR 1.15 L cr India Ratings & One of the market leading Year-old legacy Market cap 1 Research
Slide 7: Strong backing from the renowned Murugappa Group since Nov 2020
Strong backing from the renowned Murugappa Group since Nov 2020 CGPISL shareholding1 124+ 83,500+ employees years legacy Promoter & Promoter Group Public 44.97% 0.07% 58.00% 41.93% INR778 9 bn listed Group companies turnover2 Select group companies Notes: 1. Shareholding as on September 30, 2024 bas
Slide 8: Our purpose and corporate mission
Our purpose and corporate mission Purpose Corporate Mission Transforming your needs To create value by providing into smart solutions for an integrated solutions and enhanced quality of life. superior knowledge-based products and services in the domain of generation, transmission, distribution and u
Slide 9: Our journey so far – rich heritage with a renewed vigour in recent years
Our journey so far – rich heritage with a renewed vigour in recent years One of the largest Established as indoor laboratories Re-entered Consumer Became debt-free after The Crompton in India Electricals business turnaround of business Parkinson Works Pvt. Set up 1600kV Ultra post expiry of non- ope
Slide 10: Diversified product offerings with market leadership in most of the segments…
Diversified product offerings with market leadership in most of the segments… 67%1 32%1 Industrial systems Power systems Revenue INR 5,429cr PBIT (margin) INR 790cr (14.5%) Revenue INR 2,598cr PBIT (margin) INR 410cr (15.8%) Order intake INR 6,166cr Order backlog2 INR 2,830cr Order intake INR 4,315c
Slide 11: … serving an even diversified end-markets including sunrise sectors
… serving an even diversified end-markets including sunrise sectors Cement Metal & Mining Power Renewables Nuclear Oil & Gas Water & Waste Chemical & Railways / Metro Pulp & Paper Sugar & Ethanol Agriculture water management Fertilizers Telecom Material Handling Pharmaceutical Automotive / EVs 5G Io
Slide 12: Rooted in India and branching out for the world
Rooted in India and branching out for the world 7% 18 9 Manufacturing Plants Regional Offices Sweden FY24 Revenue1 Germany Netherlands 450+ 500+ 93% Channel partner network Authorised Service centres Domestic Overseas Dubai 1,600+ 3,300+ Dealers / Distributors Permanent Employees Noida Gwalior 1600k
Slide 13: Strong board providing strategic steering
Strong board providing strategic steering Vellayan Subbiah Amar Kaul Chairman & Non-Executive Non-Independent Director Managing Director & CEO ▪ Experience in varied fields like consulting, technology, projects and ▪ Work experience in strategy, global operations, product management financial servic
Slide 14: Professional and highly experienced management team
Professional and highly experienced management team Amar Kaul Managing Director & CEO Mukul Srivastava Ajay Jain Chidambaram Indraneel Marais Nel Sriram Rangarajan President - Switchgear Vice President- Dhaneshwar Executive Vice President Executive Vice President Balakrishnan Business Transformers V
Slide 15: Industry certifications & awards recognizing our achievements in recent years
Industry certifications & awards recognizing our achievements in recent years CG’s Distribution Transformers team Received certification from the American Recent successful Short Circuit Tests at secured 2nd position in a competition Association of Railroads (AAR), 2024 CPRI1 organised by CII, 2024
Slide 16: The road ahead
02. The road ahead
Slide 17: India opportunity - Strategically poised for growth
India opportunity - Strategically poised for growth Robust economic outlook Strong policy support Other favourable trends World’s 5th largest economy, with a ‘Atmanirbhar Bharat’ By 2030, India to have the and world’s most abundant labour GDP of USD 3.7tn ‘Make in India’ force with working age popul
Slide 18: Resulting in tailwinds for key sectors that CG operates in…
Resulting in tailwinds for key sectors that CG operates in… Power Railways National Rail Plan Energy needs will increase 2-2.5 times by 2047 to meet the growing Increase modal share of the Railways in freight to 45% economy Identify new Dedicated Freight & High-Speed Rail Corridors 40,900 km and inv
Slide 19: Resulting in tailwinds for key sectors that CG operates in… (cont’d)
Resulting in tailwinds for key sectors that CG operates in… (cont’d) Manufacturing Others Government aims to increase manufacturing’s GDP share to 25% from Data Centre capacity in India projected to reach c.3.3 GW 17% currently by 2028 Expected total crude steel capacity of PM KUSUM targeted to achi
Slide 20: … and tailwinds in the export market
… and tailwinds in the export market Global GDP expected to grow at c.3% World trade volume expected to grow in line with GDP GDP growth (%) Merchandise trade volume (Annual % change) 5 3.3 3.0 2.6 4 3 2 1 0 2022 2023 2024P 2025P 2026P 2027P 2028P 2029P (1.2) Advanced Economies Emerging Market and D
Slide 21: Leverage on our core strengths to future-proof the business…
Leverage on our core strengths to future-proof the business… The road ahead Geographical diversification Increased focus on exports to expand footprint & strengthen Leading market share in key products in India position on international stage Increasing service/spares business mix State-of-the-art m
Slide 22: … by investing to capture the future growth
… by investing to capture the future growth Select new product development INR 1 out of 4 approved for 319cr supplying Expanded range of energy-efficient motors to Acquired 55% include IE5 Ultra-premium Efficiency Synchronous KAVACH stake Reluctance Motors system Committed capex of INR 688cr for bus
Slide 23: Multi-decadal opportunity for semiconductors
Multi-decadal opportunity for semiconductors Global semiconductor market value by vertical (USDbn) Growth contribution per Government initiatives vertical, 2021-29 (USDbn) CAGR, 2021-29, % % Growth ✓ PLI scheme - outlay of USD10bn ~550 9 1,118 contribution ✓ Central government - 50% capital support
Slide 24: Entry into semiconductor ‘R&D & Design’
Translating the vision of ‘Atmanirbhar Bharat’ into reality via entry into semiconductor ‘R&D & Design’ and… play 1 Front end Semiconductor R&D and Design fabrication assembly & test Design and architecture Manufacturing of silicon Encapsulation and of ICs for end use wafer of varying testing of ind
Slide 25: … ‘Semiconductor Assembly & Test’ through the OSAT facility
… ‘Semiconductor Assembly & Test’ through the OSAT facility play 1 play 2 Front end Semiconductor R&D and Design fabrication assembly & test Design and architecture Manufacturing of silicon Encapsulation and of ICs for end use wafer of varying testing of individual ICs applications thickness cut fro
Slide 26: Our financial performance
03. Our financial performance
Slide 27: Revenue grew at 21% CAGR (FY22-24) with EBITDA margin expansion
Revenue grew at 21% CAGR (FY22-24) with EBITDA margin expansion Consolidated financials Order intake & backlog (INR cr) % order intake growth YoY Strong revenue growth (INR cr) % growth YoY 19.3% 26.9% 27.2% 15.4% 8,046 10,512 6,973 8,283 7,965 5,484 6,941 6,411 6,482 4,640 3,876 4,458 3,669 FY22 FY
Slide 28: Industrial segment recorded the highest ever sales and order intake in FY24
Industrial segment recorded the highest ever sales and order intake in FY24 Industrial systems Order intake & backlog (INR cr) % order intake growth YoY Strong revenue growth (INR cr) % growth YoY 13.0% 14.4% 24.8% 10.0% 5,429 6,166 4,934 5,388 4,767 3,953 3,034 3,340 2,738 2,674 2,830 2,110 2,179 F
Slide 29: Power systems’ order intake at an all-time high with a 51% YoY growth
Power systems’ order intake at an all-time high with a 51% YoY growth in FY24 along with a healthy margin expansion Power systems Order intake & backlog (INR cr) % order intake growth YoY Strong revenue growth (INR cr) % growth YoY 33.2% 50.6% 33.5% 28.5% 5,131 2,598 4,315 3,731 2,023 3,119 2,865 1,
Slide 30: Creating sustainable value for our stakeholders
04. Creating sustainable value for our stakeholders
Slide 31: Significant value creation post acquisition by the Murugappa Group…
Significant value creation post acquisition by the Murugappa Group… Dividend paid 229 (75%) 199 (65%) (INR cr, % face value) 1,15,172 46x Since acquisition 82,468 45,822 Murugappa Group 27,287 completes acquisition of CG Power 8,945 1 2,482 26-Nov-20 31-Mar-21 31-Mar-22 31-Mar-23 28-Mar-24 28-Nov-24
Slide 32: …keeping ESG principles at the core of CG’s business practices
…keeping ESG principles at the core of CG’s business practices Environment Social Governance Key focus areas Key focus areas Key focus areas Climate action Human capital development Corporate governance Responsible supply chain Human rights Innovation management Product stewardship Customer relation
Slide 33: Summary
Summary Diversifying business into high One of the leading capital goods players growth sectors like semiconductors in India backed by strong promoter Expand asset base to Diversified product offerings capture future growth with market leadership India growth opportunity Rooted in India with and sec
Slide 34: CG Power and Industrial Solutions Ltd.
G CG Power and | Industrial Solutions Ltd.
CG Power and Industrial Solutions — Non-Deal Roadshow (December 2024) on 6ix