Cords Cable Industries Limited · NSE:CORDSCABLE
Cords Cable Industries — Q2 FY2020 Earnings Presentation
31 slides from Cords Cable Industries's earnings presentation, November 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Cords Cable Industries Limite (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 3: Strong Overall Performance in H1FY20
Strong Overall Performance in H1FY20 Revenues EBITDA ₹210 Crores 10% YoY ₹21.1 Crores 15% YoY EBITDA Margin PAT 10% 40 bps ₹3.8 Crores 22% YoY PAT Margin Order Book 1.8% 20 bps ~₹148 Crores 3
Slide 4: Q2FY20 Financial Performance
Q2FY20 Financial Performance Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 1% 16% 99.2 100.4 11.3 9.8 Q2FY19 Q2FY20 Q2FY19 Q2FY20 EBITDA Margin % PAT (Rs. Crs.) +150 bps 27% 2.2 11.3% 1.8 9.8% 4 Q2FY19 Q2FY20 Q2FY19 Q2FY20
Slide 5: H1FY20 Financial Performance
H1FY20 Financial Performance Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 10% 15% 210.3 21.1 190.8 18.3 H1FY19 H1FY20 H1FY19 H1FY20 EBITDA Margin % PAT (Rs. Crs.) +40 bps 22% 3.8 9.6% 10.0% 3.1 5 H1FY19 H1FY20 H1FY19 H1FY20
Slide 6: Q2FY20 Profit & Loss Statement
Q2FY20 Profit & Loss Statement Particulars (Rs. Crs.) Q2 FY20 Q2 FY19 YoY H1 FY20 H1 FY19 YoY Revenue 100.4 99.2 1.2% 210.3 190.8 10.2% Direct Expenses 77.5 79.5 165.8 152.7 Employee Expenses 5.5 4.3 10.8 8.5 Other Expenses 6.0 5.5 12.7 11.3 EBITDA 11.3 9.8 16.1% 21.1 18.3 15.0% EBITDA Margin 11.3%
Slide 7: Balance Sheet
Balance Sheet Particulars (Rs. Crs.) Sep-19 Mar-19 Particulars (Rs. Crs.) Sep-19 Mar-19 ASSETS EQUITY & LIABILITIES Equity 138.4 134.6 Non-current assets 99.1 97.9 Equity Share capital 12.9 12.9 Property, plant and equipment 97.4 96.4 Other equity 125.5 121.7 Security Deposit 1.6 1.5 Non-current lia
Slide 8: Cash Flow Statement
Cash Flow Statement Cash Flow Statement (Rs. Crs.) H1 FY20 H1 FY19 Profit Before Tax 6.4 4.8 Adjustments for Depreciation and Non-Cash Items 15.1 13.6 Operating profit before working capital changes 21.5 18.4 Changes in working capital 1.0 -18.5 Cash generated from operations 22.5 -0.2 Income Tax Pa
Slide 9: Debt Profile
Debt Profile Total Debt Structure as of 30th Sept-19 Q2FY20 Finance Cost Break up Rs. Crs. 1.32 6.23 0.05 1.52 17% 0.90 0.51 1.93 83% Cash Credit Interest on Suppliers Bank Discounting Preference Total Interest Term Loan Interest ^ Charges & Dividend Factorinig* Term Loans Working Capital Loans ^ Ba
Slide 10: About the Company
About the Company 10
Slide 11: A Specialized Control and Instrumentation Cable Company
A Specialized Control and Instrumentation Cable Company Cords in a Nutshell 95% of our orders are based on customer specifications 81% of our cables constitute Instrumentation & Control Cables and 19% is Power Cables We have approvals from large public sector as well as private customers Current Cap
Slide 12: Speciality Cables: Wide Range of Products to Multiple Industries
… offering Wide Range of Products to Multiple Industries Fieldbus Cables EPR Cables Special Cables for Oil & Gas Instrumentation Cables Special Cables for Water Desalination Silicon Rubber Cables Thermocouple Cables Fire Survival Cables Control Cables Speciality Cables Low Smoke Halogen Free Cables
Slide 13: A Diverse Portfolio of Products
… with a Diverse Portfolio of Products Application Thermocouple ✓ Used to extend thermocouple circuits from the sensor to Cables reference unit Sales Composition Application ✓ Control Cables: Used in interconnection of process control, Control & Electrical communication and panel control systems 19%
Slide 14: Special Cables Bringing Constant Innovation
… bringing Constant Innovation Fire retardant low smoke Railway jelly field Quad Cables Cables Field Bus Cables Fire Survival Cables Silicon Rubber Cables EPR Cables Special Water Desalination Cables cables Low Temperature Cables Eurobaslise Railway Safety Cables Oil & Gas Cables Low smoke zero Halo
Slide 15: With Focus on Quality
… with Focus on Quality Consistent Quality check at every stage Garnered a name for Quality Test Labs | Customer Interface | Quality Customer Product Design |Choice of Vendors| Checks Centric ✓ Customer service Manufacturing Process |Human Resource ✓ Timely deliveries Development | Customer service
Slide 16: Experienced Management Team
… Experienced Management Team Naveen Sawhney Chairman & MD A Mechanical Engineer and a PG Diploma in Marketing Management. Has an experience of over 45 years in the Cables Industry. His Vast experience, long-term vision, entrepreneurial abilities & strategic planning have led the Company towards gro
Slide 17: With Strong Core Values
… with Strong Core Values Honour Commitments Consistently maintain High Quality Strive for long-term relations and partnerships with customers, vendors and business associates Focus on product-development based on ever-changing needs of our customers Ensure Dignity of Labour Advancement in Technolog
Slide 18: Long Term Customer Relationship
… Long Term Customer Relationship Domestic International Over 20 years of Relationship 18
Slide 19: State of the Art Manufacturing Facilities
… State of the Art Manufacturing Facilities Chopanki Unit Chopanki & Kahrani ❖ Capacity of 30,000 Kms ❖ Manufactures LV Power, Instrumentation, Control & Speciality cables Rajasthan Kahrani Unit ❖ Capacity of 35,000 Kms ❖ Manufactures Control, Instrumentation, Fieldbus, PV Solar, EPR Insulated & oth
Slide 20: Certifications & Client Approvals
… Certifications & Client Approvals ❖ Manufacture cables conforming Type Tested by Major Approvals to International standards such as: EN, BS, IEC, VDE ❖ Hold BIS certification for all types of cables conforming to IS:1554(1)/1988 and IS:694-90 ❖ Quality Management System is ISO 9001:2008 Certified
Slide 21: Key Beneficiary of Modernisation and Upgradation of India
Key beneficiary of Modernisation and Upgradation of India Renewable Power Freight Corridor Oil & Gas FMCG Smart Cities Ferrous & non Ferrous Metals Transmission & Distribution Metro Rail Refineries Chemicals Cement LPG Bottling Nuclear & Thermal Power Airport Development Water Desalination Fertilise
Slide 22: Multiple Growth Drivers across Sectors
… with Multiple Growth Drivers across Sectors ❖ Oil & Gas ▪ Increase in safety measures, Replacement and new demand for speciality cables such as fire retardant and control cables to pick up as safety standards increase ▪ 2018-19 Budget set aside Rs. 87,000 crores for Exploration and production + Re
Slide 23: Dominance to Grow Beyond the Industry
… Dominance to grow beyond the Industry Indian Wire & Cables industry Sectors Driving Increase in Demand 686 596 518 392 451 ❖ Hydrocarbon Sector ❖ Airport Modernization FY16 FY17 FY18 FY19 FY20E Rs. Bn. ❖ Freight Corridor Projects Speciality Cables at the cusp of growth ❖ Metro Rail Projects 31.0%
Slide 24: Supported by Technologically Advanced Facilities
Supported by Technologically Advanced Facilities Chopanki Unit Kahrani Unit 24
Slide 25: Capabilities to Double the Production
With the Capabilities to Double the Production Key initiatives leading to strong With Cords leadership in Cable Space Industrial growth Low Investment for growth ✓ Emphasis on Quality ✓ Valued long term Client Relationships ✓ Current Capacity – 65,000 Kms p.a. ✓ Indian Wire & Cables industry ✓ Diver
Slide 26: Segmental Revenue Highlights
Segmental Revenue Highlights Revenue Contribution Metros & Freight Corridors Hydrocarbons Power Sector 11% 54% 40% 36% 8% 29% 28% 36% 7% 19% 18% 3% 2% 9% 6% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 26
Slide 27: Order Book Details
Order Book Details Order Book Break- Up FMCG & Industry Sector, 2.7% Water, 2.0% Hydrocarbons Fertilizers & Chemicals, 2.0% Total Order book of ~Rs. 148 Crores as Metro & Freight corridors Cement, Metals, 7.5% on 30th Sep 2019 Power Power, 16.3% Cement, Metals Hydrocarbons, 64.4% Order book to be ex
Slide 28: Approvals from Esteemed Clients (1/2)
Approvals from esteemed clients (1/2) Approved vendor for RDSO (Research Design & Standards Organization) under Government of India – Ministry of Railways ▪ This approval enables the company to offer "Underground Railway Jelly Filled Quad Cable for Signalling & Telecom Installations” to the Indian R
Slide 29: Approvals from Esteemed Clients (2/2)
Approvals from esteemed clients (2/2) Approval from Abu Dhabi National Approval from Samsung Revalidation of Enlistment from Oil Company [ADNOC] Engineering Co. Ltd. Engineers India Limited (EIL) ▪ Registered & Prequalified with ADNOC ▪ Registered as a Prequalified supplier for ▪ New validity of thi
Slide 30: Consistent Performance over the Years
Consistent Performance over the years Revenue (Rs. Crs) EBITDA (Rs. Crs) 9% 12% 416.7 39.2 365.4 35.5 33.1 323.4 29.3 283.3 27.3 265.0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT (Rs. Crs) Margins % 10% 10% 10% 10% 9% 28% 7.4 6.3 5.2 3.1 1% 2% 2% 2% 2.7 1% FY15 FY16 FY17 FY18 FY19 FY15 FY1
Slide 31: Cords Cable Industries Limited Contact Details
Cords Cable Industries Limited Strategic Growth Advisors Pvt. Limited CIN: L74999DL1991PLC046092 CIN: U74140MH2010PTC204285 Mrs. Garima Pant, Company Secretary Mr. Pratik R. Shah csco@cordscable.com pratik.shah@sgapl.net +91 97692 60769 Mr. Sandeep Kumar, General Manager sandeep@cordscable.com Mr. R
Cords Cable Industries — Q2 FY2020 Earnings Presentation on 6ix