Rr Kabel Ltd. · NSE:RRKABEL
Rr Kabel — Q1 FY25 Earnings Presentation
47 slides from Rr Kabel's earnings presentation, Jul 30, 2024
Slide 1: Exchange filing cover letter for corporate presentation
30 July 2024 Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C-1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Script Code: 543981 Symbol: RRKABEL Sub: Corpor
Slide 2: Investor Presentation July 2024
Investor Presentation July 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by RR Kabel 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 securities,
Slide 4: Q1 FY25 – Results
Q1 FY25 – Results 3
Slide 5: Q1 FY25: Highest Quarterly Revenue ever recorded
Q1 FY25 : Highest Quarterly Revenue ever recorded Revenue from Operations Operating EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) INR in Crs 7.1% 6.6% 5.3% 4.7% 4.5% 3.6% +13.2% -16.0% -13.4% 1,808 114 116 79 1,754 74 1,597 95 64 Series 1 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1F
Slide 6: Wires & Cables – Performance
Wires & Cables – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) 13.2% 8.8% 8.7% 7.2% +10.9% -9.3% 1,523 1,578 132 1,423 125 113 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 % Volume Growth (y-o-y) % Margin Revenue :- ✓ Increase in revenue driven by volume g
Slide 7: FMEG – Performance
FMEG – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) +32.0% -9.7% -8.4% -9.0% 231 230 174 -17 -19 -21 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 % Margin Revenue:- ✓ Increase in revenue driven by volume growth mainly in Fans, Appliances & Switches Segment profit
Slide 8: Operational Highlights
Operational Highlights Revenue-Mix Working Capital Management (Net Working Capital in Days) (Domestic Vs Exports) 88 75 64 67 73% 76% 76% 63 63 62 60 27% 24% 24% Q1FY24 Q4FY24 Q1FY25 Domestic Export 39 36 Revenue-Mix 34 33 (Business Segment) 30 28 24 87% 87% 14 89% 11% 13% 13% Mar-22 Mar-23 Mar-24 J
Slide 9: Consolidated Profit & Loss Statement – Q1 FY25
Consolidated Profit & Loss Statement – Q1 FY25 Profit & Loss Statement (INR. Crs) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q Revenue from Operations 1,808.1 1,597.3 13.2% 1,754.1 3.1% Cost of Materials Consumed 1,545.7 1,197.1 1,340.1 Purchase of stock-in-trade 112.0 92.3 97.5 Changes in Inventories of Fin
Slide 10: Company Overview
Company Overview 9
Slide 11: Overview
At Glance Founded in 1999. 4th largest player in the Indian Wires and Cables(W&C) industry by value in FY24 Overview Electrical conglomerate present in 85+ countries worldwide. Our products have 37 international certifications, distinguishing us in the Indian consumer industry Integrated In-house ma
Slide 12: Our Growth Journey
Our Growth Journey RR Kabel has operating history of 20+ years Business of Wires & Cables Diversifying into FMEG Trading -> Manufacturing Expanding Global Footprint o Commencement of o Established o Commencement of exports to the US o Commencement of o Got listed on NSE & BSE Operations; First manuf
Slide 13: Diverse Suite of Products
Diverse Suite of Products B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity Wire & Cables (Revenue - 87%*) FMEG (Revenue - 13%*) *Q1FY25- Revenue contribution 12
Slide 14: Our Strength to Drive Success
Our Strength to Drive Success Strategic Financial Stewardship Robust B2C Operations Maintains a structured financial approach to support its business goals and maximize financial performance, The B2C business is significantly scaled within the large and ensuring long-term stability and growth growin
Slide 15: Integrated Manufacturing Facilities
Integrated Manufacturing Facilities W&C: 100% In-House Manufacturing Pan-India Facilities Quality & Reliability 5 Facilities: 2 for W&C + 3 for FMEG In-house manufacturing Shorter time to market & cost competitiveness Backward integration Automation in Manufacturing(1) Waghodia Silvassa Capacity Cap
Slide 16: Wires & Cables (W&C)
Business Segments Wires & Cables (W&C) 15
Slide 17: Wires & Cables
Wires & Cables Wires & Cables Revenue 87%* Contribution Facility Waghodia & Silvassa Annual Capacity 4.2Mn ckm House wires, Industrial Product Category wires, Power cables & Special cables *Q1FY25 16
Slide 18: Vast Product Basket of W&C
Vast Product Basket of W&C Wires Cables House Wires Power Cables LT Power Cable Medium & High Voltage Heat Resistant Wires Fire Resistant Wires Low Smoke Zero Halogen Power Cables Wires Applications Applications o Residential Buildings o Power Transmission o Commerical o Power Distribution o Public
Slide 19: Long-Term Industry Growth Drivers
Long-Term Industry Growth Drivers Indian Wires & W&C share of Indian FY24 to FY27 INR845bn Cables Market (FY24) 40% electrical industry (FY24) 13% CAGR Indian Wires and Cables Market Poised for Strong Growth.. ..Across all sub-sectors and a shift to branded players W&C Market Size (INR Bn) W&C Marke
Slide 20: Domestic Distribution Network
Domestic Distribution Network (As on Mar’24) …With a B2C Focused Portfolio Stronger Fundamental Drivers % B2C Revenue in W&C segment (FY24) 454k+ 26% Electricians Well-Recognized Brand Highest Share of B2C Revenue in Indian W&C industry 3.9k+ 74% Comprehensive product portfolio W&C Distributors B2C
Slide 21: Global Distribution Footprint
Global Distribution Footprint Product quality and global accreditations enabling growth ~24.0% Europe North Exports % of Revenue from Operations- Q1 FY25 America Middle East Asia ~10% Exports W&C to Pacific 67 Countries Market Share of W&C Exports from India ✓ RR Kabel is one of India’s largest expo
Slide 22: Fast Moving Electrical Goods (FMEG)
Business Segment Fast Moving Electrical Goods (FMEG) 21
Slide 23: Fast Moving Electrical Goods (FMEG)
Fast Moving Electrical Goods (FMEG) Fastest growing FMEG player in listed category and with best improvement in gross margin Revenue 13%* Contribution Facility Roorkee, Bengaluru & Gagret ś Annual Capacity Fan- 3.3 Mn units Lights- 1.9mn units Fans, Lighting, Switches, Product Category Switchgears &
Slide 24: Wide FMEG Product Portfolio
…through a Wide FMEG Product Portfolio… Fans Lighting Ceiling Table Pedestal & Panel Lights Bulbs Down Lights Streetlights Exhaust Fans Fans Wall Fans Switches Appliances Modular Switches Water Heater Room Heater Irons Coolers MCB DB Premium Products 23
Slide 25: FMEG Industry Opportunity
FMEG Industry Opportunity INR1,026bn Indian FMEG Market (FY24) 8% FY24 CAGR to FY28E 77% Coverage of FMEG industry INR1,026bn FMEG Market Opportunity with Growth across all Sub-categories… Fans Lighting Switch & Switchgear Home & Kitchen Appliances Market Size (FY24) INR 150bn INR 240 bn INR 315bn I
Slide 26: Well-Poised for Growth in the FMEG Segment
Well-Poised for Growth in the FMEG Segment RR Kabel has built a wide FMEG portfolio and has a 3-Phased Journey to Capture Value Building Foundation Acquire and Consolidate Accelerate FMEG Revenue (INR Crs) CAGR +66.9% 765 641 275 194 204 Accelerate growth of FMEG business: FY20 FY21 FY22 FY23 FY24 •
Slide 27: New Launches
New Launches BLDC Effaire Liteair Bonsai 10W panel Spot Colorful Panel Decorative Amour NY Broadway Ovalo Rimless Surface Panel Ropelight Flood Lights 100W 150W Aether Flow Farris Ardor 10L/15L/25L Ardent 10L/15L/25L Halogen Heater Size & Color Droot 900 mm Flomax Plus 900 mm Whiz 600 mm Tiger 600 m
Slide 28: Strategy to Expand FMEG segment
Strategy to Expand FMEG segment Clear strategy in place to expand FMEG revenues Manufacture Value Added Products Presence Across Price Points Exclusive FMEG brand • Premium Decorative Fans, Downlight • Strengthen presence across economy, • Building RR Signature brand for Panels, Switchgears premium,
Slide 29: Board of Directors
Board of Directors- Renowned promoter group, and independent director oversight Tribhuvanprasad Shreegopal Rameshwarlal Mahendrakumar Rameshwarlal Kabra Kabra Rameshwarlal Kabra Executive Chairman Managing Director Joint Managing Director • Promoter of the company • Promoter of the company • Promote
Slide 30: Professional Management Team
Professional Management Team- Extensive Experience Rajesh Babu Jain Sanjay Narnarayan Taparia Vivek Abrol CFO CEO, International Business CEO, FMEG 29 years 33 years 23 years Shishir Sharma Satishkumar Anandilal Agarwal Himanshu Navinchandra Parmar Vinod Parur Chief Sales Officer, Wires & Cables Chi
Slide 31: Testimony to Our Performance
Testimony to Our Performance The ‘Best Construction & Best Practices Award in the Mr. Shreegopal Kabra, Infrastructure Brand in the Industry Mentor Support felicitated with the Global Electrical Solutions Sector’ at Category by the Jaipuria Institute Entrepreneur of the Year the ET Infra Focus Summi
Slide 32: R&D Certification & Innovation
R&D Certification & Innovation Innovative and quality products with multiple industry-first launches Innovation Team 37 International Product Certifications 86 focused on R&D Innovation Leader Canada Europe Europe Great Britain Europe 1st to introduce Low Smoke Zero Halogen Insulation Technology (“L
Slide 33: Environmental, Health, Safety and Sustainability Initiatives
Our Focus on Environmental, Health, Safety and Sustainability Initiatives Focus on sustainability & responsible growth Community Promoting Green Conserving Development Energy Water 1.45MW of solar capacity & 3.8 MW Recharging groundwater Kabel Star Scholarships of wind solar hybrid (1) through Rainw
Slide 34: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) Mission RRoshni is RR Kabel’s endeavour to achieve an empowered and educated India. We are dedicated towards making a positive and lasting change in the lives of rural India. Ekal Gramothan Foundation Key Activities: 2023-24 o Construction of Rural Employment Tr
Slide 35: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) EKAL GRAMOTHAN FOUNDATION Other Key Activites RR Gramothan Training & Research Center (GRC Jarangloi, Sundargarh, Orissa) o CTL (Computer training lab) o WEC (Women Empowerment center) o Organic Farming o Nutrition Garden o Electrical Wiring & Home Appliances Tr
Slide 36: Advertisement - Campaigned
Advertisement - Campaigned Multiple ATL and BTL initiatives to build a connect with key consumers and strengthening brand Multi-Pronged Approach to Increase Brand Awareness Outdoor Advertising Ad Campaigns with Broad Reach Strategically placed ads for Ad placement to emphasize Safety & Engaged a lea
Slide 37: Advertisement – Wires & Cables
Advertisement – Wires & Cables BRAND HOARDINGS EXHIBITION OUR BRAND AMBASSADOR GATE BRANDING KABEL MELA 36
Slide 38: Advertisement – Wires & Cables
Advertisement – Wires & Cables FIRE STATION POLICE STATION CRICKET ONGROUND BRANDING TOLL GATE UMBRELLA DISTRIBUTION POLICE BARICADES 37
Slide 39: Advertisement - FMEG
Advertisement - FMEG TV CAMPAIGN ON 55+ CHANNELS IPL ON STAR SPORTS IPL ON JIO CINEMA IPL ON JIO CONNECTED TVS DIGITAL CAMPAIGN HOARDING / BUS BRANDING 38
Slide 40: Advertisement - FMEG
Advertisement - FMEG DEALER SIGNAGES FAN WALL DISPLAYS FAN STANDS STAR DEALER BRANDING DEALER MEETS SOFT POSM POSTERS, CATALOGUE ETC. 39
Slide 41: RR Kabel's Strengths will Continue to Drive Success
RR Kabel’s Strengths will Continue to Drive Success… TAM Large Addressable Market + Strong Structural Drivers Distribution Pan-India Distribution + Global Footprint Well-Recognized Consumer Brand + Brand Operating History of 20+ years Diverse Products Wide Range of Wires & Cables + FMEG Products Exe
Slide 42: Annexure
Annexure 41 www.rrkabel.com
Slide 43: Performance in Charts
Performance in Charts Revenues EBITDA & EBITDA % PAT & PAT % INR in Crs 5.8% 7.0% 8.5% 7.0% 5.0% 4.9% 3.4% 4.5% +34% 6,594.6 +26% 462.8 +30% 298.1 5,599.2 4,385.9 307.4 323.3 213.9 189.9 231.2 135.4 2,723.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE (%) RoE (%) Debt to Equity (
Slide 44: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (INR. Crs) FY24 FY23 FY22 FY21 Revenue from Operations 6594.6 5,599.2 4,385.9 2,723.9 Cost of Materials Consumed 4,942.6 4,369.8 3,575.5 2,173.2 Purchase of stock in trade 403.6 368.9 156.6 129.9 Changes in Inventories of Finished Goods and
Slide 45: Historical Balance Sheet
Historical Balance Sheet EQUITY & LIABILITIES (INR. Crs) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (INR. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Equity Share Capital 56.4 47.8 23.9 23.9 Property, plant and equipment 466.1 448.8 383.7 386.0 Instrument entirely equity in nature 0.0 415.2 415.2 415.2 Capital work‐in
Slide 46: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Mar-24 Mar-23 Mar-22 Mar-21 Profit before Tax 406.1 256.0 284.4 181.4 Adjustment for Non-Operating Items 93.5 102.6 62.5 73.0 Operating Profit before Working Capital Changes 499.6 358.6 346.9 254.5 Changes in Working Capital -63.5 153.4 -175.4
Slide 47: Thank You
Thank You R R Kabel Limited Mr. Irfan Raeen CIN: L28997MH1995PLC085294 +91 9773 778669 Irfan.raeen@linkintime.co.in Name – Pratik Agarwal Title – GM - Corporate Affairs & Investor Relations Mr. Ronak Jain Email – investorrelations.rrkl@rrglobal.com +91 9820 950544 Ronak.Jain@linkintime.co.in