Cg Power & Industrial Solutions Ltd · NSE:CGPOWER
Cg Power & Industrial Solutions — Investor Presentation (August 2023)
37 slides from Cg Power & Industrial Solutions's investor presentation, Aug 9, 2023
Slide 1: Intimation of Schedule of Meeting with Analysts/Institutional Investors
Our Ref: COSEC/087/2023-24 9th August, 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
Investor/ Analyst Presentation
Slide 3: Contents
Contents S. no. Particulars Page no. 1 Company Background 3-6 2 CGPISL – Standalone Performance 7-11 3 Industrial Systems – Motors & Drives 12-18 4 Industrial Systems - Railways 19-23 5 Power Systems 24-29 6 Key Updates – Q1 FY24 30 7 Operational Excellence at CG 31 Appointment of Senior people and
Slide 4: Company Background
Company Background • CG Power and Industrial Solutions Ltd (“CGPISL”) is a 85+ years old Company with 16 manufacturing facilities in India and 2 operating subsidiaries (including one outside India). • Consumer products business (B2C business) in the erstwhile Crompton Greaves Ltd. was demerged in FY
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 Mr. Ramesh Kumar N Mr. Mukul Srivastava Mr. Ajay Jain * Mr. Ranjan Singh President - Industrial Division President – Switchgears Division Vice President – Transformers Executive Vice President – Division Railway Division Mr. Susheel Todi Mr.
Slide 7: Two years snapshot
Two years snapshot Operations Financial Legacy issues Customers and Suppliers Revenue significantly Old dues to Financial and confidence have been improved from Rs. 2,526 Operational creditors and restored and relationship crs in FY 2020-21 to Rs. Employees settled in full. has been strengthen
Slide 8: CG Power and Industrial Solutions Limited Standalone Performance
CG Power and Industrial Solutions Limited Standalone Performance
Slide 9: CGPISL (Standalone) Performance Highlights
CGPISL (Standalone) Performance Highlights Q1 FY 23- Q1 FY 22- Q4 FY 22- Rs. In crores FY 20-21 FY 21-22 FY 22-23 Column12 24 23 23 Sales 2,526 5,159 6,580 1,766 1,559 1,788 % YoY growth (20%) 104% 28% 13% EBITDA 157 642 1,016 277 189 273 EBITDA % 6.2% 12.4% 15.4% 15.7% 12.1% 15.3% PBT (before EI) (
Slide 10: CGPISL (Standalone) Revenue and PBIT Mix
CGPISL (Standalone) Revenue and PBIT Mix Sales (Rs. crs) - Q1 FY24 Sales (Rs. crs) - FY23 512 2,023 29% 29% 30% 31% 1,255 4,558 70% 71% 71% 69% 71% Industrial Systems Power Systems Industrial Systems Power Systems PBIT (Rs. crs) - Q1 FY24 PBIT (Rs. crs) - FY23 63 227 24% 24% 23% 197 748 76% 76% 79%
Slide 11: CGPISL (Standalone) Balance Sheets and Key ratios
CGPISL (Standalone) Balance Sheets and Key ratios Rs. in crores 30-Jun-23 31-Mar-23 31-Mar-22 31-Mar-21 Net Working Capital 30-Jun-23 31-Mar-23 31-Mar-22 31-Mar-21 Fixed Assets 797 786 784 803 Inventory days 47 38 44 80 Investments 303 303 302 304 Trade Receivable days 67 68 68 98 Non-current assets
Slide 12: 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 further economies of scale. Diversified product portfolio with complete ra
Slide 13: Industrial Systems
BUSINESS PRESENTATIONS Industrial Systems (A) Motors, Drives and Consumer products (B) Railways
Slide 14: 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 15: Motors & Drives Industry Size and CG Market Share
Motors & Drives Industry Size and CG Market Share CG Market share Growth in FY23 (in volume terms) Industry Size Product name (Rs. In crs) FY22 FY23 Market CG Low Tension AC Motors 6,500 32% 35% 1% 11% DC motors 250 36% 29% -10% -27% Alternators 750 8% Large Industrial Motors 1,640 16% 16% 39% 43% F
Slide 16: 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 15
Slide 17: Industrial Systems (Motors + Railways) Performance Highlights
Industrial Systems (Motors + Railways) Performance Highlights Q1 FY 23- Q1 FY 22- Q4 FY 22- Rs. In crores FY 20-21 FY 21-22 FY 22-23 Column12 24 23 23 Sales 1,794 3,644 4,558 1,255 1,106 1,196 % YoY growth (13%) 103% 25% 13% EBITDA 233 493 780 206 160 197 EBITDA % 13.0% 13.5% 17.1% 16.4% 14.5% 16.5%
Slide 18: Motors & Drives Growth Drivers
Motors & Drives Growth Drivers + One MNCs – Make in India Gas Filling stations Telecom Towers New Airports / Modernization Local Content Mandatory Pharma & Chemical Plants Data Centers Water and irrigation Projects New Line of EV Business Import Substitutes Ethanol Plants Ene
Slide 19: Motors Expansion Project
Motors Expansion Project Highlights: Total Capex approved for Expansion project is Rs. 327 crs (including modernization & automation) Time Frame: Completion of Project progressively by FY 2024-25 Expansion will be implemented in the existing plants taking advantage of the existing infrastruc
Slide 20: Railways Business
Railways Business
Slide 21: 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 20
Slide 22: Railways Division Performance Highlights
Railways Division Performance Highlights Sales (Rs. crs) Unexecuted Order Book (Rs. crs) 1,119 892 925 845 831 821 355 308 815 265 FY 20-21 FY 21-22 FY 22-23 Q1 FY 23- Q1 FY 22- 31-Mar-21 31-Mar-22 31-Mar-23 30-Jun-23 30-Jun-22 24 23 • Sales in Q1 FY 23-24 have grown by 16.5% YoY. • Order intake dur
Slide 23: 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 24: Opportunities for CG
Opportunities for CG (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 of Traction componen
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 Industry Size and CG Market Share
Power Systems Industry Size and CG Market Share CG Market Industry Size Product name Range share (Rs. In crs) (FY23) A) Transformers Power Transformer 3.0 to 500 MVA 6,500 6.4% Distribution Transformer 315 kVA to 2.5 MVA 6,586 5.4% B) Switchgears Circuit Breakers 3.3kV to 800kV 3,761 16% Surge Arres
Slide 28: Power Systems Performance Highlights
Power Systems Performance Highlights Q1 FY 23- Q1 FY 22- Q4 FY 22- Rs. In crores FY 20-21 FY 21-22 FY 22-23 Column12 24 23 23 Sales 733 1,516 2,023 512 453 593 % YoY growth (34%) 107% 33% 13% EBITDA (55) 181 262 72 49 83 EBITDA % (7.5%) 11.9% 12.9% 14.0% 10.8% 14.1% PBIT (96) 145 227 63 40 75 PBIT %
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 Expansion and Project Cost
Power Systems Expansion and Project Cost Rs Crs. Sr. Approximate Capacity Addition/ Expected Options Product Range No Capex (Rs.) Incremental Revenue Completion Capacity Expansion Capacity Addition for 220 8000 MVA = Rs. 500 crs of 1 86 crs Q2 2024-245 at T3 Bhopal kV, 160 MVA Range Additional Sales
Slide 31: Key Updates – Q1 FY24
Key Updates – Q1 FY24 • Concluded sale of business (excluding cash balance) in QEI LLC, USA for a total consideration of USD 10.5 million. 30
Slide 32: Operational excellence at CG
Operational excellence at CG Project Mudra • The Company engaged Tier-1 Management Consulting firm to drive the procurement efficiencies in all the business divisions of the Company with special emphasis on Material cost reduction, Indirect cost optimization and Capability building. • Key levers s
Slide 33: Appointment of Senior people and Succession Planning
Appointment of Senior people and Succession Planning Function / Total Exp Employee Name Hire Date Grade Joined From Designation (yrs) High Tech Rail Infra Progress Rail Mr. Chidambaram M Vice President- Head 19-May-23 L4 24 Innovations Pvt. Ltd, Balakrishnan Railway Business GE India Industrial Pvt.
Slide 34: Sustainability is an integral part of CG's journey
Sustainability is an integral part of CG’s journey Top 10 Material Topics for CG: In last financial year (i.e. FY23), CG identified 10 Material topics, refer adjacent table, with internal 1. Climate Action and external stakeholder engagement. Plan to 2. Corporate Governance focus on these topics t
Slide 35: Key highlights of ESG for FY23
Key highlights of ESG for FY23 Environmental Social Governance Supplier Diversification 13% reduction in Emission promoting Local Enhanced the policies w.r.t. intensity (Scope 1 and procurement Human Rights, Product Scope 2) per rupee of sales Stewardship, Customer care, in FY 23 over FY 2022
Slide 36: 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 37: Thank You
a ‘Smart solutions. Strong relationships. Thank. Yow!
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