Finolex Cables Limited · NSE:FINCABLES
Finolex Cables — Q4 FY2019-20 Earnings Presentation
41 slides from Finolex Cables's earnings presentation, March 2020
Slide 1: Finolex Cables Limited Earnings Presentation
Finolex Cables Limited Earnings Presentation 1 March,2020
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Finolex Cables 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 securit
Slide 3: Impact of COVID 19
Impact of COVID 19 • With the increasing COVID cases in Pune, company decided to close its Pune operations (Urse, Pimpri Plants and Pimpri Corp. office) from March 22. With the declaration of the nationwide lockdown from March 24, all the other operations viz, Goa and Roorkee Plants, all depot/Branc
Slide 4: Table of Content
TABLE OF CONTENT Executive Summary 5 Company Overview 7 Category & Product Portfolio 10 Key Management 14 Timeline 15 Geographical Footprint 17 SWOT Analysis 18 Financial Overview 21 4
Slide 5: Executive Summary
EXECUTIVE SUMMARY
Slide 6: One of India's leading Electricals brand
One of India’s leading Electricals brand - a market leader in India’s Wires & Cables (W&C) industry and fast growing player in the FMEG category Diversified product portfolio Widespread distribution network • Wires and cables: Light duty cables, power and control • 380 distributors cables and commun
Slide 7: Company Overview
gets people together COMPANY OVERVIEW
Slide 8: Premium Player – Cables and Wires Industry
Premium Player – Cables and Wires Industry 3,000.00 Segment wise Revenue Performance Rs. In Crore 2,494.42 FY 2019-20 Electrical Cables and Wires 2,500.00 2,361.11 FY 2018-19 • Leader in the electrical housing wires segment and commands a premium over its peers 2,000.00 • Strong brand positioning an
Slide 9: Emerging Player - FMEG
Emerging Player - FMEG • Finolex entered the FMEG segment to capitalize on the strong brand recall and sales network • The company first entered the electrical switches and lighting segment, leveraging its widespread distribution network in the country. The company than introduced switchgears, fans
Slide 10: Category & Product Portfolios
Category & Product Portfolios WIRES & CABLES • Jelly Filled Telephone Cables (JFTC) • LAN cables FANS Light Duty Cables • Telephone cables • Ceiling fans • FR PVC insulated industrial cables • Optic Fibre cables • Table fans • Wall fans • Flexible cables • Pedestal fans • Solar cables LIGHTING • Exh
Slide 11: Electrical Cables
• Electrical Cables • 1100 V PVC Insulated Cables Electrification of industrial establishments, used by construction industry, electrical panel wiring and consumer electrical goods • Motor winding PVC insulated Submersible pumps and electrical motors • Automotive/battery cables Wiring harness for au
Slide 12: Copper Rods, Switches, Lamps, Fans, Water Heaters
• Copper Rods Electrical • CCC rods of 8 mm diameter Raw material for manufacturing copper- based Cables Switches Lamps • Premium and classic switches, For power supply to equipment in domestic, sockets, regulators, etc commercial and industrial environment • Retrofit/non-retrofit CFL lamps Lighting
Slide 13: Communication Cables
• Communication Cables • Jelly filled telephone cables Telephone line connections to exchanges and users (JFTCs) Indoor and outdoor networking, voice and data • Local area network (LAN) transmission, broadband usage cables Telephone instrument connections to EPABX • PE insulated telephone cables Cab
Slide 14: Key Management Team
Key Management Team Mr. Deepak Chhabria He joined Finolex Cables Ltd as Deputy Production Manager in 1986. Deepak was actively involved in setting up 9 different manufacturing Plant across 4 locations in India. Under his able guidance, the Company now produces a variety of electrical and communicati
Slide 15: Timeline
Timeline Indian Cable Industries acquired Alpha Rubber AT&T Finolex JV, Co. and thereafter Technical Low Voltage Power Collaboration with Optical Fibre Cables The business was company name changes Plant, Urse, Cable Plant, Pimpri, NSW, Germany started as a to Finolex Cables Ltd. Maharashtra Maharash
Slide 16: Timeline
Timeline Jelly Filled Telephone Cables Optical Fibre Cable Super brand Lighting Products Plant, Electrical Switch Plant, 5.5 MW Solar plant, Urse Plant, Verna, Goa Plant, Verna, Goa Recognition Urse, Maharashtra Uttarakhand Launched Fans & Water 2010 2007 2005 2014 2000 2003 Heaters Switchgear Plant
Slide 17: Geographical Footprint
GEOGRAPHICAL FOOTPRINT UTTARAKHAND 6 28 Manufacturing Plants Depots 4000+ 40000+ Channel Partners Dealers SHIRWAL URSE, MAHARASHTRA PUNE VERNA, GOA 17
Slide 18: Geographical Footprint
Geographical Footprint LOCATION PRODUCT Uttarakhand Electric wire for construction; wires for automobile; switches; switchgear and Agricultural applications Shirwal, Maharashtra Extra High Voltage (EHV) cables (JV with Sumitomo, Japan) Urse, Maharashtra All electrical cables, optic fibre cables and
Slide 19: Financial Overview
FINANCIAL OVERVIEW 19
Slide 20: FY 2019-20 – Segment Revenue Breakup
FY 2019-20 – Segment Revenue Breakup Copper Rods, 19.10 Others, 88.15 • Margins - Electrical Cable EBIT margin improved from 15% to 16% due Communication to better product mix Cables, 408.94 - Communication Cable EBIT margin decreased from 14% to 6% due to reduction in supply order from telecommunic
Slide 21: Quarterly Segment Revenue
Quarterly Segment Revenue Electrical cables Communication cables 800.00 140.00 126.48 128.82 129.75 666.28 688.12 700.00 637.99 588.22 605.69 120.00 110.58 584.05 562.62 102.72 105.70 103.79 600.00 522.56 100.00 89.94 500.00 80.00 400.00 60.00 300.00 200.00 40.00 100.00 20.00 - - Q4 -19-20 Q3 -19-20
Slide 22: Quarter 4 Under Review
QUARTER 4 FY19 -20 UNDER UNDER REVIEW REVIEW 22
Slide 23: Q4-FY20 Key Financial Highlights
Q4-FY20 KEY FINANCIAL HIGHLIGHTS (Standalone Q4 Vs Q3 FY 2019-20 Performance) (INR Cr) • INR 710.13 Cr Total Income* • Growth of (2.6) % Q-o-Q • INR 145.80 Cr EBITDA • Growth of 22.62% Q-o-Q • 20.53% EBITDA Margins • Growth of (422)Bps • INR 117.16 Cr PAT • Growth of 45.31 % Q-o-Q • 16.50% PAT Margi
Slide 24: Standalone Financial Highlights Q4-FY20
STANDALONE FINANCIAL HIGHLIGHTS Q4-FY20 ( IND-AS) INCOME STATEMENT (INR Cr) Q4-FY20 Q3-FY20 Q-o-Q Q4-FY19 Y-o-Y Total Income* 710.13 728.88 (2.6)% 847.05 (16.2)% Total Expenses 564.33 609.97 (7.5)% 696.79 (19.0)% EBITDA 145.80 118.91 22.6% 150.26 (3.0)% EBITDA Margins (%) 20.53% 16.31% 422Bps 17.47%
Slide 25: Consolidated Financial Highlights Q4-FY20
CONSOLIDATED FINANCIAL HIGHLIGHTS MARCH 20 ( IND-AS) INCOME STATEMENT (INR Cr) Q4-FY20 Q3-FY20 Q-o-Q Q4-FY19 Y-o-Y Total Income* 669.93 728.88 (8.1)% 847.05 (20.9)% Total Expenses 570.91 602.47 (5.2)% 678.62 (15.9)% EBITDA 99.02 126.41 (21.7)% 168.44 (41.2)% EBITDA Margins(%) 14.78% 17.34% (256)Bps
Slide 26: FY19-20 Under Review
nolex people together im FY19 -20 UNDER REVIEW 26
Slide 27: FY2019-20 Key Financial Highlights
FY2019-20 KEY FINANCIAL HIGHLIGHTS (Standalone Year Performance) (INR Cr) • INR3,049.19 Cr Total Income* • Growth of (4.7)% Y-o-Y • INR 541.79 Cr EBITDA • Growth of (5.5)% Y-o-Y • 17.77% EBITDA Margins • Growth of (105)Bps • INR 402.48 Cr PAT • Growth of 17% Y-o-Y • 13.20% PAT Margins • Growth of 11
Slide 28: Standalone Financial Highlights March 20
STANDALONE FINANCIAL HIGHLIGHTS MARCH 20 ( IND-AS) INCOME STATEMENT (INR Cr) MARCH 20 MARCH 19 Y-o-Y Total Income* 3049.19 3199.62 (4.7)% Total Expenses 2507.40 2626.30 (4.5)% EBITDA 541.79 573.32 (5.5)% EBITDA Margins (%) 17.77% 17.92% (15)BPS Depreciation 38.91 40.55 (4.0)% EBIT 502.88 532.77 (5.6
Slide 29: Consolidated Financial Highlights March 20
CONSOLIDATED FINANCIAL HIGHLIGHTS MARCH 20 ( IND-AS) INCOME STATEMENT (INR Cr) MARCH 20 MARCH 19 Y-o-Y Total Income* 2968.80 3159.43 (6.0)% Total Expenses 2493.88 2608.13 (4.4)% EBITDA 474.92 551.30 (13.9)% EBITDA Margins(%) 16.00% 17.45% (145)BPS Depreciation 38.91 40.55 (4.0)% EBIT 436.01 510.75 (
Slide 30: Business Performance Trend
Business Performance Trend 70000 62483 60651 59569 60000 50000 Electrical cables 40000 30000 Communication cables 20000 10000 7773 8091 8216 0 FY 2019-20 FY 2018-19 FY 17-18 Electrical cables & communication cables volume in MT 30
Slide 31: FY 2019-20 vs FY 2018-19
nolex People together an FY 2019-20 vs FY 2018-19 31
Slide 32: Quarterly Profit & Loss - Standalone
Quarterly Profit & Loss- Standalone Financial Statement Particulars (INR in Cr) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY 19-20 FY 19-20 FY 19-20 FY 19-20 FY 18-19 FY 18-19 FY 18-19 FY 18-19 Revenue from Operation 651.44 702.36 715.76 807.74 823.08 749.56 713.97 791.18 EBITDA 145.80 119.51 149.11 127.97 150.26 128
Slide 33: Quarter-wise Result Summary: Revenue, EBITDA
Quarter –wise Result Summary EBIDTA 160 Revenue 145.8 149.11 150.26 144.26 149.88 Rs.in Crore 900 140 823.08 127.97 128.93 807.74 791.18 800 118.91 749.56 120 702.36 715.76 713.97 700 651.44 EBIDTA 100 600 (Rs. In Crore) 500 80 400 60 300 EBIDTA 40 Margin 200 21 19 19 18 17 18 100 20 16 15 (%) 0 0 Q
Slide 34: Quarter-wise Result Summary: PBT, PAT
Quarter –wise Result Summary PBT Rs. In Crores PAT Rs. In Crore 160 140 139.08 139.84 139.84 123.12 140 135.5 132.91 117.16 120 117.85 119.17 120 108.9 100 92.91 90.34 100 84.9 80.63 81.57 80 75.94 80 60 60 40 40 20 20 0 0 Q4 FY 19-20 Q3 FY 19-20 Q2 FY 19-20 Q1 FY 19-20 Q4 FY 18-19 Q3 FY 18-19 Q2 FY
Slide 35: Key Indicators from FY 2012-13 to FY 2019-20
Key Indicators from FY 2012-13 to FY 2019-20 35
Slide 36: Standalone Profit & Loss Account - Key Indicators
Standalone Profit & Loss Account- Key Indicators Particulars( Rs. In Crore) 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Gross Revenue 2,447.70 2,558.30 2,633.30 2,676.50 2,770.95 3,011.63 3,199.62 3,049.19 EBIDTA 230.80 306.90 340.80 403.00 471.66 549.72 573.32 541.79 EBIDTA Marg
Slide 37: Standalone Balance Sheet – Key Indicators
Standalone Balance Sheet – Key Indicators Particulars (Rs.in Crore) 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Share Capital 30.59 30.59 30.59 30.59 30.59 30.59 30.59 30.59 Reserves 893.70 1,072.80 1,234.20 1,437.00 1,846.85 2,163.31 2,409.08 2,688.04 Net Worth 924.29 1,103.39 1
Slide 38: Union Budget 2020 Potential Business Opportunity
Union Budget 2020- Potential Business Opportunity 38
Slide 39: Union Budget direct benefits to various segments
Union Budget direct benefits to various segments of Finolex Cables Ltd Digitization Agriculture Infrastructure Real Estate Power • Government • Government • Further expenditure • Stamp duty rates • Concessional tax proposed to allocate declares 16 action for setting up of increased to 10% rate of 15
Slide 40: Building Atmanirbhar Bharat & Overcoming COVID-19
Building Atmanirbhar Bharat & Overcoming COVID -19 Business Including New Horizons of Government Agriculture Migrant Farmers MSME Growth Reforms & Enablers • Vocal for local • Rs,. 30000 crore • Liquidity support to • Incentive schemes • Launching of products and make Additional farmers & rural for
Slide 41: Thank You
THANK YOU Finolex gets people together