Polycab India Ltd. · NSE:POLYCAB
Polycab India — Q4 FY2023 Earnings Presentation
34 slides from Polycab India's earnings presentation, May 12, 2023
Slide 1: Earnings Call Presentation filing letter to stock exchanges
POLYCAB INDIA LIMITED CIN: L31300GJ1996PLC114183 #29, The Ruby, 21st Floor, Senapati Bapat Marg, Tulsi Pipe Road, Dadar (West), Mumbai -400028 Tel: +91 22 2432 7070-74 Email: shares@polycab.com Website: www.polycab.com Date: 12th May 2023 To To Department of Corporate Services Listing Department BSE
Slide 2: Q4 FY2023 Presentation
Q4 FY2023 Presentation 12 May 2023 Polycab India Limited | Q4 FY23 Earnings Presentation 1
Slide 3: Q4 & FY23 Financial Performance
Q4 & FY23 Financial Performance Polycab India Limited | Q4 FY23 Earnings Presentation 2
Slide 4: Key Highlights
Key Highlights Top-line (Revenue) Operating (EBITDA) Operating (EBITDA) Profitability (PAT) Profitability (PAT) Q4 FY23: 43,237 Mn Q4 FY23: 6,032 Mn Q4 FY23: 4,284 Mn 9% YoY 27% YoY 32% YoY 16% QoQ 20% QoQ 19% QoQ FY23: 1,41,078 Mn FY23: 18,429 Mn FY23: 12,823 Mn 16% YoY 46% YoY 52% YoY Mobile App P
Slide 5: FY23: Surpassed ₹140 Bn in Revenues; Highest Ever PAT
FY23: Surpassed ₹ 140 Bn in Revenues; Highest Ever PAT Revenue (₹ Mn) EBITDA (₹ Mn) PAT (₹ Mn) 14.0% 13.5% 13.1% 9.7% 9.9% 9.1% 1,41,078 8.2% 6.9% 1,22,038 12.0% 18,429 12,823 10.3% 12,626 8,452 39,700 43,237 6,032 4,284 37,152 5,030 3,253 3,608 4,760 9% YoY 16% QoQ 16% YoY 27% YoY 20% QoQ 46% YoY 3
Slide 6: Key Highlights for FY23
Key Highlights for FY23 FY22 FY23 EBITDA Margin 10.3% 270 Bps 13.1% Margin improved in-spite of high volatility in commodity prices Working Capital Days 61 days 11 days 50 days Marked improvement in working capital days via reduction in receivable days through better channel finance penetration Net
Slide 7: Business Mix
Business Mix Product Mix Mode of Sales 2% 9% 10% Wires & Cables Domestic Business FMEG International Business Others 89% 90% Polycab India Limited | Q4 FY23 Earnings Presentation 6
Slide 8: Growth Story Since Listing
Growth Story Since Listing Revenue EBITDA Margin Net Cash ₹ 141 Bn ₹ 18.9 Bn 13.1% 11.9% ₹ 80 Bn CAGR: 15% ~120 bps ₹ 0.45 Bn 42x FY19 FY23 FY19 FY23 FY19 FY23 International Market Share Dividend Business (Domestic Organized W&C) ₹ 13.8 Bn 22%-24% ₹ 20 18% ₹ 2.5 Bn ₹3 6x 4% - 6% CAGR: 61% FY19 FY23
Slide 9: Structural Growth Drivers
Structural Growth Drivers Current opportunity landscape provides highly conducive environment for exponential business growth in the medium-to-long term Consumption Infrastructure • Urbanization • National Infrastructure Pipeline • Nuclearization of families • Capex uptick in power, railways, • Grow
Slide 10: Wires & Cables
Wires & Cables Polycab India Limited | Q4 FY23 Earnings Presentation 9
Slide 11: Pedal Firmly on Growth
Pedal Firmly on Growth Revenue (₹ Mn) EBIT (₹ Mn) Margin 1,25,369 14.6% 13.8% 13.1% 1,06,953 11.6% 18, 000 9.7% 16,447 25. 0% 23. 0% 16, 000 21. 0% 14, 000 19. 0% 12, 000 10,405 17. 0% 15. 0% 10, 000 13. 0% 35,110 39,347 5,728 11. 0% 32,878 8, 000 4,528 9. 0% 6, 000 4,064 7. 0% 5. 0% 4, 000 3. 0% 12
Slide 12: Domestic Business: Distribution-led Efficient Business
Domestic Business: Distribution-led Efficient Business Zone-Wise Distributors Split Channel Financing & Advances 83% 22% 18% 75% West 72% South North 64% 64% East 30% 30% FY19 FY20 FY21 FY22 FY23 Polycab India Limited | Q4 FY23 Earnings Presentation 11
Slide 13: International Business: Expanding Global Footprint with Granular Order Book
International Business: Expanding Global Footprint with Granular Order Book International Business Sales International Business Spread ₹ 13.8 Bn 70 63 ₹ 11.0 Bn 58 53 ₹ 9.2 Bn 48 ₹ 7.4 Bn ₹ 2.5 Bn FY19 FY20* FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 *Includes one-off large Institutional order Polycab
Slide 14: FMEG
FMEG Polycab India Limited | Q4 FY23 Earnings Presentation 13
Slide 15: Base Set for Better than Industry Growth from FY24 Onwards
Base Set for Better than Industry Growth from FY24 Onwards Revenue (₹ Mn) EBIT (₹ Mn) Margin 12,544 12,512 2.8% 1.6% -0.7% -2.3% -0.5% 196 105 3,792 3,399 -25 3,029 -71 -62 -20% YoY -11% QoQ -0.3% YoY Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 ▪ FMEG business had a soft year
Slide 16: FMEG: Growth Engine
FMEG: Growth Engine Distribution Expansion Premiumization Rejig of distribution channel to the super- Leveraging product innovation and brand distributor model for faster scale-up of building activities to drive sales of premium business. Adopting alternate sales platforms products, which are margin
Slide 17: Others
Others Polycab India Limited | Q4 FY23 Earnings Presentation 16
Slide 18: Other Segments
Other Segments Revenue (₹ Mn) EBIT (₹ Mn) Margin 14.9% 3,584 14.7% 13.1% 12.1% 2,943 5.5% 438 432 994 1,013 827 122 131 56 22% YoY 2% QoQ 22% YoY -54% YoY -57% QoQ -1% YoY Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 ▪ Other segment largely comprises of our EPC business ▪ Tota
Slide 19: Project LEAP
Project LEAP Polycab India Limited | Q4 FY23 Earnings Presentation 18
Slide 20: Project LEAP: Progressing Well Towards Achieving FY26 Goals
Project LEAP: Progressing Well Towards Achieving FY26 Goals ➢ Direct quotes from Polycab more than doubled in FY23, indicating a strong shift towards control over pricing, market Customer dynamics and direct dealing with customers ➢ Merger of HDC and LDC verticals made meaningful progress in unlocki
Slide 21: Project Leap: Key Themes & Priorities for the Coming Year
Project Leap: Key Themes & Priorities for the Coming Year B2B Business Focus on reach expansion, demand generation, CRM digitalization & and increased use of analytics Strengthen Core Power Business (Wires) Organization Structure & Hiring Distribution expansion, new product launches, Strengthening t
Slide 22: Awards & Recognition
Awards & Recognition Inex Excellence Awards CSR Works ASSOCHAM CII ELECRAMA 2023 Electric Solutions Television Campaign Popular Brand Asia’s Best Community Impact Best CFO of the Year Leading CFO of the year Best Stall Award Reporting, Silver ET Best Brands 2022 Manufacturing Excellence Award by Kai
Slide 23: ESG
ESG Polycab India Limited | Q4 FY23 Earnings Presentation 22
Slide 24: Polycab's ESG Strategy
Polycab’s ESG Strategy Polycab’s Purpose - "We innovate for a brighter living“. • Our innovative, safe and energy efficient products and solutions delight our customers • Our vibrant and inclusive culture leads to deep connections, value creation and growth for our People, Partners and Stakeholders
Slide 25: Polycab's ESG Approach
Polycab’s ESG Approach Verification Understanding Communicating ESG Developing Refining Measuring through internal stakeholder needs Establishing ESG Performance through ESG roadmap and operations & impact and audits and and material ESG Governance risks ownership processes improving external Report
Slide 26: Shareholding Pattern
Shareholding Pattern Polycab India Limited | Q4 FY23 Earnings Presentation 25
Slide 27: Shareholding Pattern
Shareholding Pattern 14.7% 15.3% Promoters DII 2.8% 66.5% FII 66.2% QIB + AIF 8.1% Others 7.3% Note: As on 31st March 2023. DII (Domestic Institutional Investors) includes “Mutual Funds”. FII (Foreign Institutional Investors) includes "Foreign Portfolio - Corp" and "Foreign Corporate Bodies". QIB/ A
Slide 28: Financial Statements
Financial Statements Polycab India Limited | Q4 FY23 Earnings Presentation 27
Slide 29: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Quarter Year To Date Particulars (₹ Mn) Q4 FY23 % Q3 FY23 % Q4 FY22 % FY23 % FY22 % Revenue from Operations 43,237 100.0% 37,152 100.0% 39,700 100.0% 1,41,078 100.0% 1,22,038 100.0% Cost of Goods sold 32,357 74.8% 27,603 74.3% 30,892 77.8% 1,05,109 74.5% 94,657
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (₹ Mn) Mar-23 Dec-22 Mar-22 Particulars (₹ Mn) Mar-23 Dec-22 Mar-22 Assets Equity and Liabilities Non-current Assets Shareholder’s Funds Fixed Assets 23,177 21,951 20,506 Share Capital 1,498 1,497 1,494 Non-current Deposits 6 7 126 Reserves and Surplus 64,814 6
Slide 31: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Quarter Year To Date Particulars (₹ Mn) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Net Cash Flow from Operating Activities 1,199 3,500 7,027 14,275 5,116 Net cash flow from/(used in) investing activities -946 -3,357 -6,440 -12,026 -4,270 Net cash flow from/(used in) financing
Slide 32: Other Financial Metrics
Other Financial Metrics Average Closing Working Capital Days FY23 FY22 FY21 FY23 FY22 FY21 Receivable Days 33 41 59 32 39 59 Inventory Days 89 81 108 102 85 110 Payable Days 71 67 102 85 63 102 Net Working Capital 51 54 65 50 61 67 Other Income (₹ Mn) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Interest incom
Slide 33: Safe Harbour Notes and general definitions
Safe Harbour Notes and general definitions This Release/ Communication, except for the historical information, may contain 1. Numbers on consolidated basis in ₹ million statements, including the words or phrases such as ‘expects, anticipates, intends, will, 2. Revenue: Revenue from operations would,
Slide 34: Thank You
Polycab India Limited Contact us THANK YOU For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com Polycab India Limited | Q4 FY23 Earnings Presentation 33