Paramount Communications Limited · NSE:PARACABLES
Paramount Communications — Investor Presentation (May 2024)
28 slides from Paramount Communications's investor presentation, May 29, 2024
Slide 1: Paramount Communications Limited Investor Presentation
PARAMOUNT COMMUNICATIONS LIMITED INVESTOR PRESENTATION May 29, 2024 Wiring The World With The Best
Slide 2: Safe Harbor
SAFE HARBOR Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 3: Paramount at a Glance
PARAMOUNT AT A GLANCE Paramount, a global company with over six decades of expertise in the wires and cables industry, serves prestigious public and private sector clients. The Company’s brand “Paramount Cables” is highly regarded for its quality and reliability. Wires & Cables • 600+ Institutional
Slide 4: Glimpse of Our Product Portfolio
GLIMPSE OF OUR PRODUCT PORTFOLIO Power Cables Telecom Cables LT Aerial HT Power Jelly Filled FTTH Bunch Cables HT Aerial LT Power Bunch Cables Optic Fibre Jumpers Sector Sector Power Telecom Special Cables Others Solar Cables Railway Cables Laying & Repairing Underwater submarine cable Thermocouple
Slide 5: Key Factors Driving Growth in the Cables & Wires Segment
KEY FACTORS DRIVING GROWTH IN THE CABLES & WIRES SEGMENT Segments Factors driving growth in the cables segment Power Cables Investments in power transmission and distribution Capacity addition in solar and wind energy Smart cities mission Building Wires Affordable housing scheme A spike in
Slide 6: Our Team
OUR TEAM Sanjay Aggarwal Sandeep Aggarwal (Chairman & CEO) (Managing Director) Sanjay is Chairman & CEO of the Company. He joined the Company straight after Sandeep is the Managing Director and Promoter of Paramount. He studied BA completing his B.Com (Hons) from Sri Ram College of Commerce in 1983.
Slide 7: Evolving Business Model
EVOLVING BUSINESS MODEL With the introduction of Solar Cables, 2013 Started manufacturing PTFE Cables 2016 Paramount takes a big leap towards facilitating clean energy in India Diversification over the Started manufacturing Fire Survival Introduced EPC services as end-to-end 2012 cables. Most techno
Slide 8: Our Value Chain
OUR VALUE CHAIN Ability to scale quickly on back of manufacturing capability and capacity to deliver high quality products. Input PROCESSES Output Copper / Aluminum Wire Bunching / Stranding Sourcing raw material: PVC PVC Colour Serving Customers like Copper and Aluminum Compound Master Batches from
Slide 9: Strong Presence
STRONG PRESENCE Exports (Rs. in Mn.) 2,761 3000 2500 2000 1500 1000 260 500 0 FY20 FY24 Number of Dealers in USA 8 2 DELHI (INDIA) USA: Growth Manufacturing Plant: FY20 FY24 Head Office Largest Export Market Opportunities Khushkhera, (Rajasthan) & Dharuhera, (Haryana) Supplying its products to Focus
Slide 10: Manufacturing Facility
MANUFACTURING FACILITY Khushkhera Plant — Rajastan (India) = p PARAMOUNT
Slide 11: Marquee Clients
MARQUEE CLIENTS And many more… AWARDS & RECOGNITION 11
Slide 12: Turnaround Story
TURNAROUND STORY Start of Turnaround Promoters Have Infused ~128 Crs The bankers exited from the CDR and the Company debt was ARC Debt: Between 2010-23 Rs. 190 cr repayable taken over by Invent Asset Over 8 years. Securitization & Reconstruction Pvt. Ltd.(ARC) In July 2010 Paramount was forced to Pr
Slide 13: Growth Strategy
GROWTH STRATEGY Capacity Utilization Leveraging unused resources to increase productivity and output for higher margins. B2B Business growth Distribution Channel Developing and expanding Exploring, enhancing and relationships with other utilizing new sales channels to businesses to increase B2B reac
Slide 14: Industry Overview
INDUSTRY OVERVIEW Growth Drivers Industry Growth Organ ized M ar ket Share In In d ian C&W I nd u st r y Branded Unbranded 20% 30% 80% 70% FY22 FY27 EXPECTED Growth is led by initiatives such as rural electrification, smart cities, awareness for safety standards, digitalization, distribution reach,
Slide 15: Market Size of Different Segments of the Indian Electrical Industry
CONTINUED….. Market Size Of Different Segments Of The Indian Electrical Industry Rise In Exports Of Cables & Wires Higher Than The Imports 25 18 6 Cables & Wires 2000 60 54.9 Acs 1800 55 50 50 65 Refrigerators 47.4 68 1600 40 Lighting 120 700 Switchgear 1400 30 26.8 Kitchen Appliances 1200 130 20 Fa
Slide 16: Growth Drivers
GROWTH DRIVERS 5 Emerging Industries & their Ecosystems 4 being set-up supported by PLI 3 Growth in Railway, Metro and Projects to Enhance Inter-Regional Highway Networks Grid Connectivity 2 Accelerated Growth of Renewable Energy 1 Rising Power Consumption 16
Slide 17: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Revenue from Operations grew at CAGR of 19.2% between FY17 and 01 FY24, despite the lack of working Turned negative Return on capital support from banks. Capital Employed (ROCE*) 06 in FY18 to 13.66% in FY24. Turned negative EBITDA 02 margins to 4.1% in FY22 and 9.0% in FY24
Slide 18: Quarterly Financials
QUARTERLY FINANCIALS Q4 & FY24 (Consolidated)
Slide 19: Financial Metrics: Revenue Mix
FINANCIAL METRICS: REVENUE MIX Q4FY24 FY24 0% 2% 5% 4% Power Cables Power Cables 19% Railway Cables Railway Cables 26% Telecom Cables 41% Telecom Cables 45% House Wires House Wires 6% Exports Exports 5% EPC Projects EPC Projects 6% Pipe & Others 6% Pipe & Others 20% 15% 19
Slide 20: Financial Metrics - Quarterly
FINANCIAL METRICS - QUARTERLY Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) & EBITDA Margins (%) 3,500.0 350.0 9.3% 298.8 9.2% 3,000.0 300.0 256.5 9.1% 2,500.0 250.0 9.2% 9.0% 9.0% 8.9% 2,000.0 200.0 178.5 8.8% 3,233.7 8.7% 2,842.5 1,500.0 150.0 8.6% 2,020.8 100.0 8.5% 1,000.0 8.6% 8.4% 50.0 500.
Slide 21: Financial Metrics - Annual
FINANCIAL METRICS - ANNUAL Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) & EBITDA Margins (%) 12,000.0 1,200.0 9.5% 9.0% 10,000.0 1,000.0 9.0% 8.5% 8,000.0 800.0 7.9% 8.0% 600.0 6,000.0 10,706.0 972.6 7.5% 400.0 4,000.0 7,964.7 642.0 7.0% 200.0 6.5% 2,000.0 0.0 6.0% 0.0 FY23 FY24 FY23 FY24 EBITDA
Slide 22: Financial Metrics
FINANCIAL METRICS Consistently reducing debt and improving financial performance RoE Debt/Equity 17.00% 0.60 16.19% 0.54 16.00% 0.50 15.00% 0.40 14.00% 13.68% 13.00% 0.30 12.00% 0.20 11.00% 0.16 0.10 10.00% 9.00% 0.00 FY23 FY24 FY23 FY24 Temporary dilution in ROE due to recent fund infusion 22
Slide 23: Financial Statements
FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT: YoY Notes for Consolidated Income Statement: Particulars (Rs. Mn) Q4 FY24 Q4 FY23 YoY (%) Q3 FY24 FY24 FY23 (%) Revenue from Operations grew by 60.0% from Revenue from operations 3,233.7 2,020.8 60.0% 2,842.5 10,706.0 7,964.7 34.4% Rs 2,020.8 Mn
Slide 24: Financial Statements: Consolidated Balance Sheet
FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET: Particulars (Rs. Mn.) 31.03.24 31.03.23 Particulars (Rs. Mn.) 31.03.24 31.03.23 Assets Equity & Liabilities Non-Current Assets Shareholder's Funds Property, Plant & Equipment 1,402.4 976.4 Equity Share Capital 606.9 388.4 Capital Work-in-Progress 14.9
Slide 25: Cash Flow Statement
CASH FLOW STATEMENT Cash Flow Statement (Rs. Mn) FY24 FY23 A. CASH FLOWS FROM OPERATING ACTIVITIES: (1,009.3) 111.0 B. CASH FLOWS FROM INVESTING ACTIVITIES: (958.2) (163.4) C. CASH FLOWS FROM FINANCING ACTIVITIES: 1,832.7 218.4 NET CHANGE IN CASH & CASH EQUIVALENTS (134.9) 165.9 *Minor differences m
Slide 26: Chairman's Note
CHAIRMAN’S NOTE “At Paramount we are excited to announce that Paramount Communications Limited has achieved a significant milestone in fiscal year 2024 as we have clocked highest ever revenue exceeding Rs.1,000 crore for the first time. This remarkable accomplishment underscores our steadfast dedica
Slide 27: Capital Market Information
CAPITAL MARKET INFORMATION Incorporated 1955 Closing Price 120 Listed on BSE & NSE 100 80 66.98 BSE Scrip Code / NSE Symbol 530555 / PARACABLES 60 Issued Shares 30,34,34,870 40 Share Price 20 80.49 (As at 24th May, 2024) 0 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Slide 28: Investor Relations Advisor
Contact Numbers: +91-1145618800/8900 Email Address: rashi.goel@paramountcables.com INVESTOR RELATIONS ADVISOR Captive IR Strategic Advisors Pvt. Ltd. Email: krunal@cap-ir.com vinayak@cap-ir.com naman@cap-ir.com Contact: +91 9372467194
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