Rr Kabel Ltd. · NSE:RRKABEL
Rr Kabel — Investor Presentation (October 2024)
50 slides from Rr Kabel's investor presentation, Oct 24, 2024
Slide 1: Exchange cover letter for corporate presentation
24 October 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: Cor
Slide 2: Investor Presentation October 2024
Investor Presentation October 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: Q2 FY25 – Results
Q2 FY25 – Results 3
Slide 5: Q2 FY25: Highest Quarterly & Half Yearly Revenue ever recorded
Q2 FY25 : Highest Quarterly & Half Yearly Revenue ever recorded Revenue from Operations Operating EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) INR in Crs 7.5% 5.2% 4.7% 7.3% 5.0% 4.6% 3.5% 2.7% 4.6% 3.1% +12.8% 3,618.2 234.7 148.4 3,207.0 181.0 113.9 +12.5% 1,808.1 1,810.1 121.1 74.1 1,609.7 64.4
Slide 6: Wires & Cables – Performance
Wires & Cables – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) 3.8% 9.2% 7.2% 5.1% 9.0% 6.1% +11.0% 3,190.0 257.6 2,873.5 194.9 +11.1% 1,578.2 1,611.8 132.9 1,450.4 113.0 81.8 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 % Volum
Slide 7: FMEG – Performance
FMEG – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) +28.4% -12.4% -9.0% -5.9% -11.0% -7.6% 428.2 333.5 +24.5% (11.7) 229.9 198.3 (19.8) (20.7) 159.3 (32.4) (36.8) Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 % Margin Revenue:- ✓ Increas
Slide 8: Operational Highlights
Operational Highlights Q2 FY25 Revenue-Mix H1 FY25 Revenue-Mix Working Capital Management (in Days) (Domestic Vs Exports) (Domestic Vs Exports) Net 88 75 64 63 Working Capital (in Days) 71% 76% 73% 72% 74% 63 63 60 58 29% 24% 27% 28% 26% Q2FY24 Q1FY25 Q2FY25 H1FY24 H1FY25 Domestic Export 39 36 34 34
Slide 9: Consolidated Profit & Loss Statement – Q2 FY25
Consolidated Profit & Loss Statement – Q2 FY25 Profit & Loss Statement (INR. Crs) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Revenue from Operations 1,810.1 1,609.7 12.5% 1,808.1 0.1% 3,618.2 3,207.0 12.8% Cost of Materials Consumed 1,357.8 1,257.3 1,545.7 2,903.5 2,454.4 Purchase of
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (INR. Crs) Sep-24 Mar-24 ASSETS (Rs. Crs) Sep-24 Mar-24 Equity Share Capital 56.5 56.4 Property, Plant and Equipment 575.1 466.1 Other Equity 1,952.4 1,772.1 Capital work‐in‐progress 130.4 163.6 Total Equity 2,008.9 1,828.5 Right -of- use Assets 60.2 6
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Sep-24 Mar-24 Profit before Tax 145.8 406.1 Adjustment for Non-Operating Items 57.6 93.5 Operating Profit before Working Capital Changes 203.4 499.6 Changes in Working Capital (130.0) (64.1) Cash Generated from Operations 73.4 435.5 Less: Dire
Slide 12: Company Overview
Company Overview 11
Slide 13: 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 14: 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 15: Diverse Suite of Products
Diverse Suite of Products B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity Wire & Cables (Revenue - 89%) FMEG (Revenue - 11%) Q2 FY25- Revenue contribution 14
Slide 16: 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 17: 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 18: Wires & Cables (W&C)
Business Segments Wires & Cables (W&C) 17
Slide 19: Wires & Cables
Wires & Cables Wires & Cables Revenue 89* % Contribution Facility Waghodia & Silvassa Annual Capacity 4.2Mn ckm House wires, Industrial Product Category wires, Power cables & Special cables *Q2FY25 18
Slide 20: 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 21: 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 22: 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 23: Global Distribution Footprint
Global Distribution Footprint Product quality and global accreditations enabling growth ~27.0% Europe North Exports % of Revenue from Operations- Q2 FY25 America Middle East Asia ~10% Exports W&C to Pacific 72 Countries Market Share of W&C Exports from India ✓ RR Kabel is one of India’s largest expo
Slide 24: Fast Moving Electrical Goods (FMEG)
Business Segment Fast Moving Electrical Goods (FMEG) 23
Slide 25: 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 11* % Contribution Facility Roorkee, Bengaluru & Gagret ś Annual Capacity Fan- 3.3 Mn units Fans, Lighting, Switches, Product Category Switchgears & Appliances *Q2FY25
Slide 26: 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 25
Slide 27: 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 28: 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 29: New Launches have fueled growth
New Launches have fueled growth 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
Slide 30: 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 31: 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 32: Professional Management Team- Extensive Experience
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 33: Testimony to Our Performance
Testimony to Our Performance The ‘Best Construction & Best Practices Award in the Infrastructure Brand in the Electrical Mr. Shreegopal Kabra, felicitated Industry Mentor Support Solutions Sector’ at the ET Infra with the Global Entrepreneur of the Category by the Jaipuria Institute Focus Summit & A
Slide 34: 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 Canada Europe Europe Great Britain Europe Innovation Leader 1st to introduce Low Smoke Zero Halogen Insulation Technology (“L
Slide 35: 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 36: 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 37: 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 38: 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 39: Advertisement – Wires & Cables
Advertisement – Wires & Cables BRAND HOARDINGS EXHIBITION OUR BRAND AMBASSADOR GATE BRANDING KABEL MELA 38
Slide 40: Advertisement – Wires & Cables
Advertisement – Wires & Cables FIRE STATION POLICE STATION TV CAMPAIGN TOLL GATE UMBRELLA DISTRIBUTION POLICE BARICADES 39
Slide 41: Advertisement – FMEG
Advertisement – FMEG TVC – Designer BLDC TVC – Kone Kone Mein Hawa TVC – Low Voltage Batten Stands (HEB & CPD) Appliances Catalogue - HEB Fans, Lighting, Appliances Catalogues (CPD) 40
Slide 42: Advertisement – FMEG
Advertisement – FMEG Appliances – Dealer Meets Appliances - Foam Banners Flange (CPD) Appliances - Posters Geyser Display - HEB 41
Slide 43: Advertisement – FMEG
Advertisement – FMEG Whats app Communications META Posts 42
Slide 44: 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 45: Annexure
Annexure 44 www.rrkabel.com
Slide 46: 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 47: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (INR. Crs) FY24 FY23 FY22 FY21 Revenue from Operations 6,594.6 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 an
Slide 48: 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 49: 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 (64.1) 153.4 (175.
Slide 50: 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