Cg Power & Industrial Solutions Ltd · NSE:CGPOWER
Cg Power & Industrial Solutions — Investor Presentation (January 2023)
33 slides from Cg Power & Industrial Solutions's investor presentation, Jan 25, 2023
Slide 1: Intimation under Regulation 30 - Investor Presentation
Our Ref: COSEC/170/2022-23 25th January, 2023 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: Investor/Analyst Presentation 25 January 2023
Investor/ Analyst Presentation 25 January 2023
Slide 3: Contents
Contents S. no. Particulars Page no. 1 Company Background 3-5 2 CGPISL – Standalone Performance 6-10 3 Industrial Systems – Motors & Drives 11-17 4 Industrial Systems - Railways 18-23 5 Power Systems 24-30 2
Slide 4: Company Background
Company Background • CG Power and Industrial Solutions Ltd (“CGPISL”) is a 80+ years old Company with 16 manufacturing facilities in India and 3 operating subsidiaries (including 2 outside India). • Consumer products business (B2C business) in the erstwhile Crompton Greaves Ltd. was demerged in FY 1
Slide 5: Tube Investments of India is the new Promoter effective Nov 2020
Tube Investments of India is the new Promoter effective Nov 2020 CG Power and Industrial solutions Ltd (CGPISL), due to several reasons including diversion of funds, suffered losses during the years 2017-2019 and became a non-performing asset. The Lenders initiated steps to revive the company by bri
Slide 6: Leadership Team
Leadership Team Mr. Natarajan Srinivasan Managing Director • BE (Electrical) from University of • Member of ICAI and Commerce Allahabad graduate • 37+ yrs of work experience (31+ yrs in • 20+ yrs of work experience (17+ yrs in CGPISL). CGPISL). Mr. Ramesh Kumar N Mr. Susheel Todi President - Industr
Slide 7: CGPISL Standalone Performance
CGPISL Standalone Performance
Slide 8: CGPISL (Standalone) Performance Highlights
CGPISL (Standalone) Performance Highlights Rs. In crores FY 18-19 FY 19-20 FY 20-21 FY 21-22 Column1 9M FY 22-23 9M FY 21-22 Sales 5,356 3,169 2,526 5,159 4,792 3,752 % YoY growth 5% (41%) (20%) 104% 28% EBITDA 447 160 157 642 744 477 EBITDA % 8.3% 5.0% 6.2% 12.4% 15.5% 12.7% PBT (before EI) 41 (179
Slide 9: CGPISL (Standalone) Revenue and PBIT Mix
CGPISL (Standalone) Revenue and PBIT Mix Sales (Rs. crs) - FY22 Sales (Rs. crs) - 9M FY23 1,516 1,430 29% 30% 3,362 3,644 70% 71% 71% Industrial Systems Power Systems Industrial Systems Power Systems PBIT (Rs. crs) - FY22 PBIT (Rs. crs) - 9M FY23 145 152 21% 24% 464 560 76% 79% Industrial Systems Po
Slide 10: CGPISL (Standalone) Balance Sheets and Key ratios
CGPISL (Standalone) Balance Sheets and Key ratios Rs. in crores 31-Dec-22 31-Mar-22 31-Mar-21 Fixed Assets 777 784 803 Net Working Capital 31-Dec-22 31-Mar-22 31-Mar-21 Investments 303 302 304 Inventory days 46 44 47 Non-current assets 12 11 8 Trade Receivable days 63 68 60 Deferred tax assets 445 6
Slide 11: CGPISL Core Strengths
CGPISL Core Strengths ✓ Market leader and Volume player in Motors business. ✓ Excellent reach with loyal Channel Partners ✓ Proposed expansion in Motors (announced in Q2 FY23) and Transformers (announced in Q3 FY23) to give economics of scale ✓ Diversified product portfolio with complete range for P
Slide 12: Industrial Systems
BUSINESS PRESENTATIONS Industrial Systems (A) Motors, Drives and Consumer products (B) Railways
Slide 13: Plant Locations and Product Portfolio
Motors, Drives & Consumer Products Plant Locations and Product Portfolio Plant Locations Locations No. of plants Ahmednagar 3 9 Manufacturing Goa 4 plants Bhopal 2 Product Portfolio Motors Drives Consumer products Low Tension Large Industrial Fractional Horse Stampings Drives & Commercial Motors Mot
Slide 14: Customers We Serve
Motors & Drives Customers We Serve Large Drives LT Motors FHP Motors Industrial Machines & Automation Leader Power Water & WW Oil & Gas Material Handling 13
Slide 15: Approvals & Certifications
Motors & Drives Approvals & Certifications Large Drives LT Motors FHP Motors Industrial Machines & Automation 14
Slide 16: Industrial Systems (Motors + Railways) Performance Highlights
Industrial Systems (Motors + Railways) Performance Highlights Rs. In crores FY 18-19 FY 19-20 FY 20-21 FY 21-22 Column1 9M FY 22-23 9M FY 21-22 Sales 3,081 2,052 1,794 3,644 3,362 2,685 % YoY growth 32% (33%) (13%) 103% 25% EBITDA 404 274 233 493 584 351 EBITDA % 13.1% 13.4% 13.0% 13.5% 17.4% 13.1%
Slide 17: Motors Expansion Project
Motors Expansion Project ❖ Key Expansion Highlights: ✓ Total Capex approved for Expansion project is Rs. 230 crs ✓ Time Frame: Completion of Project progressively by FY 2024-25 ✓ Expansion will be implemented in the existing plants taking advantage of the existing infrastructure and Testing facility
Slide 18: Motors & Drives Growth Drivers
Motors & Drives Growth Drivers Acceleration in Revival of Capex (PLI, Railways, etc.), Urbanization and growing penetration Industrialisation and of Mechanization is expected to drive the Industrial Motor demand in Urbanization Domestic market by ~8% per annum for next 3-5 years. (Source: IEEMA) Gov
Slide 19: Railways Business
Railways Business
Slide 20: Railways Business Plant Locations and Product Portfolio
Railways Business Plant Locations and Product Portfolio Plant Locations Locations No. of plants 3 Bhopal 2 Manufacturing plants Pithampur 1 Product Portfolio Rolling Stock Products Signalling products Traction Machines Railway Transportation Railway Signaling and Traction Electronics 19
Slide 21: Railways Division Performance Highlights
Railways Division Performance Highlights Sales (Rs. Crs) Unexecuted Order Book (Rs. Crs) 1039 907 892 942 831 730 910 925 838 692 481 355 FY18-19 FY19-20 FY20-21 FY21-22 9M FY22-23 9M FY21-22 31 Mar 19 31 Mar 20 31 Mar 21 31 Mar 22 31 Dec 22 31 Dec 21 • FY 21-22 was the first full year of operation
Slide 22: Railways Division – Business opportunities
Railways Division – Business opportunities Indian Railways (IR) plans to complete 100% Railway route Electrification by 2024-25. 100% Railway route Over 75% of 68,000 route kms. Electrification More than 5 times electrification was achieved during (2014-21) last seven years as compared to during 200
Slide 23: Railways Division – Business opportunities
Railways Division – Business opportunities Private Trains under Ministry of Railways received bids from the private and public sectors to operate 29 pairs of trains with about 40 modern rakes, entailing an investment of ~Rs. 7,200 crores PPP Railway station Re-development of railway stations across
Slide 24: Opportunities for CGPISL
Opportunities for CGPISL (over and above the current Business lines) • Rolling Stock /Propulsion ▪ Consortium/JV/partner route is being actively pursued with the trend of completely/built Loco/Trains with corresponding qualification/products it can offer ▪ Contract manufacturing for Indian/global pr
Slide 25: Power Systems
Power Systems A. Transformers B. Switchgears - Power Transformers - Air Insulated Switchgears / Gas - Distribution Transformers Insulated Switchgears - Vacuum Interrupters - Circuit Breakers - Instrument Transformers - Surge Arrestors - Numerical Relays
Slide 26: Power Systems Plant Locations and Product Portfolio
Power Systems Plant Locations and Product Portfolio Plant Locations Locations No. of plants Products Range 4 Nashik 1 Distribution 315 kVA to 2.5 MVA Manufacturing Aurangabad 1 Transformer (3.3kV to 33kV Class) plants Power 3.0 MVA to 500 MVA Bhopal 1 Transformer (66 kV to 765 kV) Gwalior 1 Locomoti
Slide 27: Power Systems Performance Highlights
Power Systems Performance Highlights Rs. In crores FY 18-19 FY 19-20 FY 20-21 FY 21-22 Column1 9M FY 22-23 9M FY 21-22 Sales 2,277 1,117 733 1,516 1,430 1,068 % YoY growth (18%) (51%) (34%) 107% 34% EBITDA 124 (12) (55) 181 178 145 EBITDA % 5.5% (1.1%) (7.5%) 11.9% 12.5% 13.6% PBIT 76 (58) (96) 145
Slide 28: Industry Growth – Growth Indices for Electrical Industry
Power Systems Industry Growth – Growth Indices for Electrical Industry Cumulative Growth Apr - Sep 22 Compared to Apr-Sep 21 25.0 19.2 20.0 16.4 16.6 14.8 15.0 10.0 8.9 GROWTH % 5.0 0.0 -5.0 Gas Circuit Breaker MV Switchgear Power Transformer Distribution Instrument Lightining Arresters Electrical I
Slide 29: Power Systems Demand Drivers
Power Systems Demand Drivers Renewable Energy METRO Projects GIS Substations in Urban Demand for Power Revamped Distribution • Planned Establishment of • Projects planned in Area Transformers Sector Scheme (RDSS) 523GW by 2030 >40 Cities • GIS projects up by 30% • As on Nov. 2022, total • Business P
Slide 30: Power Systems Capacity and Capacity Utilisation
Power Systems Capacity and Capacity Utilisation Installed Production Capacity – Annual Sale Value (Rs. crs) 1000 900 900 800 700 600 460 500 400 400 400 300 225 200 100 100 0 Instrument MV Switchgear Gas Circuit Breaker Lightning Arrestor Distribution Power Transformer Transformer Transformer Capaci
Slide 31: Power Systems Expansion and Cost of Expansion
Power Systems Expansion and Cost of Expansion Rs Crs. Sr. Approximate Capacity Addition/ Options Product Range Remarks No Capex Incremental Revenue Capacity Expansion Capacity Addition for 220 8000 MVA = Rs. 500 crs of 1 86 Crs Timeline – 15 months at T3 Bhopal kV, 160 MVA Range Additional Sales per
Slide 32: Safe Harbour
Safe Harbour This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expression
Slide 33: Thank You
a ‘Smart solutions. Strong relationships. Thank. Yow!
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