Finolex Cables Limited · NSE:FINCABLES
Finolex Cables — Q3 FY2020 Earnings Presentation
34 slides from Finolex Cables's earnings presentation, Feb 17, 2020
Slide 1: Cover letter to National Stock Exchange
SELECTED iliiprhral Finolex INDIA 2009-10 CONSUMER VALIDATED Cables Limited AN IS/ISO 9001 COMPANY FCL: SEC: SE: 2020:49 17th February 2020 The Manager Listing Department National Stock Exchange of India Ltd 'Exchange Plaza', C-1, Block G, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051 Ref: Re
Slide 2: Finolex Cables Limited Earnings Presentation
Finolex Cables Limited Earnings Presentation February 20?0
Slide 3: Disclaimer
Disclaimer Finolex gets people together 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
Slide 4: Table of Content
Finolex TABLE OF CONTENT pc)— t xjatt gE•ts Executive Summary 4 Company Overview 6 Category & Product Portfolio 9 Key Management 13 Timeline 14 Geographical Footprint 16 SWOT Analysis 17 Financial Overview 20 3
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 Finolex gets peopli. tbgether 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 • 300
Slide 7: Company Overview
Finolex gFts people tcxjattor COMPANY OVERVIEW 6
Slide 8: Premium Player — Cables and Wires Industry
Premium Player — Cables and Wires Industry Finolex gets people togetttir Electrical Cables and Wires • Leader in the electrical housing wires segment and Communication Cables commands a premium over its peers • Revenues growth was led by ramp up of its • Strong brand positioning and superior product
Slide 9: Emerging Player - FMEG
Finolex Emerging Player - FMEG cogs peop4. Iogether • 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
Slide 10: Category & Product Portfolios
Category & Product Portfolios Finolex fists people together 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 • Flexible cables • Wall fans LIGHTING • Pede
Slide 11: Electrical Cables Product Covered
Group Product Covered Applications • 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/b
Slide 12: Copper Rods, Switches, Lamps, Fans Products
Group Product Covered Applications • Copper Rods Electrical • CCC rods of 8 mm diameter Raw material for manufacturing copper- Switches Lamps 1,') based Cables • Premium and classic switches, For power supply to equipment in domestic, sockets, regulators, etc commercial and industrial environment •
Slide 13: Communication Cables Product Covered
Group Product Covered Applications • Communication Cables • Jelly filled telephone cables [1:' Telephone line connections to exchanges and users (1FTCs) Indoor and outdoor networking, voice and data • Local area network (LAN) V transmission, broadband usage cables • PE insulated telephone Telephone
Slide 14: Key Management Team
Key Management Team Finolex 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 com
Slide 15: Timeline
Finolex Timeline Indian Cable Industries acquired Alpha Rubber gets people together Technical AT&T Finolex .11/• Co. and thereafter Low Voltage Power Collaboration with Optical Fibre Cables The business was company name changes Cable Plant, Pimpri, NSW, Germany i Plant, Urse, started as a to Finolex
Slide 16: Timeline
Timeline Finolex gets people together 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 0 Heaters 0 Switchgear Pl
Slide 17: Geographical Footprint
F nole x GEOGRAPHICAL FOOTPRINT gets people together UTTARAKHAND 6 28 Manufacturing Plants Depots 4000+ 30000+ Channel Partners Dealers 16
Slide 18: Geographical Footprint
Geographical Footprint ()CATION 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
Slide 20: Q3FY20 — Segment Revenue Breakup
Q3FY20 — Segment Revenue Breakup Copper Rods Others • Margins Rs. 55.51 Cr Rs. 24.96 Cr - Electrical Cable EBIT margin improved from 14% to 16% Q-o-Q Communication Cab! due to better product mix Rs. 89.94 Cr Communication Cable EBIT margin decline due to current market conditions in Telecom Sector.
Slide 21: Q3FY20 — Financial Snapshot
Revenue Q3FY20 — Financial Snapshot PBT 840 823.08 160 820 807.74 139.94 139.08 791.18 140 800 119.17 117.85 780 120 108.9 760 749.56 100 740 80 713.97 720 702.36 60 700 40 680 20 660 0 640 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 PAT EBIT & E
Slide 22: Q3FY20 — Financial Snapshot
Q3FY20 — Financial Snapshot Electrical Cables & EBIT Margin (%) 20 850.0 18 750.0 16 650.0 14 550.0 12 450.0 10 350.0 - 250.0 150.0 50,0 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Communication Cables & EBIT Margin(%) 150,0 129.8 128.8 126.5 16% 13% '14% 110.6 105.7 160,0 11% 08% . R9,9 04% 50
Slide 23: Quarter Under Review
Finolex gets peoplo together QUARTER UNDER REVIEW 22
Slide 24: Q3-FY20 Key Financial Highlights
Q3-FY20 KEY FINANCIAL HIGHLIGHTS Finolex gets tr=optr, tc•gethzt (Standalone Quarter Performance) (INR Cr) FAN •JNR 728.88 Total Income* Growth of (5.2) % Y-o-Y INR 118.9 • Growth of (7.8)% Y-o-Y • 16.31% • Growth of (46)Bps • INR 80.63 • Growth of 6.2 % Y-o-Y • 11.06% • Growth of 118Bps Y-o-Y • INR
Slide 25: Standalone Financial Highlights Q3-FY20
STANDALONE FINANCIAL HIGHLIGHTS Q3-FY19 ( IND-AS) Finolex gets people together INCOME STATEMENT (INR Cr) UGHTING PRODUCT Total Income* 728.88 780.47 (6.6)% 768.9 (5.2)% Total Expenses 609.97 631.36 (3.4)% 639.97 (4.7)% EBITDA 118.91 149.11 (20.3)% 128.93 (7.8)% EBITDA Margins (%) 16.31% 19.11% (280)
Slide 26: Consolidated Financial Highlights Q3-FY20
CONSOLIDATED FINANCIAL HIGHLIGHTS Q3-FY20 IND-AS) Finolex gets p.op.e to gather LIGHTING PRODUCT o ai newt 728.88 74018 ( • )i 768.9 (5.2)%vex Total Expenses 602.47 618.76 (2.6)% 639.97 (5.9)% EBITDA 126.41 121.52 4.0% 128.93 (2.0)% EBITDA Margins(%) 17.34% 16.42% 92Bps 16.77% 57Bps Depreciation 9.6
Slide 27: 9MFY20 Key Financial Highlights
9MFY20 KEY FINANCIAL HIGHLIGHTS Finolex gets people together (Standalone Quarter Performance) (INR Cr) FAN • INR 2,339.06 Total Income* • Growth of (0.6)% Y-o-Y • INR 395.99 EBITDA • Growth of (6.4)% Y-o-Y • 16.93% EBITDA Margins • Growth of (105)Bps APSE soy .. • INR 285.32 PAT • Growth of 12.2% Y-
Slide 28: Standalone Financial Highlights 9MFY20
STANDALONE FINANCIAL HIGHLIGHTS 9MFY20 ( IND-AS) Finolex gets p,opi. together INCOME STATEMENT (INR Cr) LIGHTING PRODUCT To tal Income 2339.06 2352.57 (0.6)%: Total Expenses 1943.07 1929.5 0.7% EBITDA 395.99 423.07 (6.4)% EB!TDA Margins (%) 16.93% 17.98% (105) Bps Depreciati 29.34 30.5 (3.8)% EBIT 3
Slide 29: Consolidated Financial Highlights 9M-FY20
CONSOLIDATED FINANCIAL HIGHLIGHTS 9M-FY20 ( IND-AS) Finolex gets together INCOME STATEMENT (INR Cr) 9NI-FY20 n+IrVI=I ,7777-77- - LIGHTING PRODUCT Total Inctome* 2298.87 — 2312.38 (0.6)% Total Expenses 1922.97 1929.5 (0.3)% EBITDA 375.9 382.88 (1.8)% EB!TDA Margins(%) 16.35% 16.56% (50 )Bps HrOkaAV
Slide 30: FY Under Review
F inolex gets people together QUARTER FY UNDER Urk.1DER REVIEW REVIEW
Slide 31: Standalone Financial Highlights FY19
STANDALONE FINANCIAL HIGHLIGHTS FY19 (IND-AS) Finolex gets people together SWITCHES Total Income* 3,199.62 3,011.63 6.2% Total Expenses 2626.29 2,461.91 6.7% EBITDA 573.33 549.72 4.3% EBITDA Margins (%) /7.92% 18.25% (33Bps) Depreciation 40.55 43.8 (7.4)% EBIT 532.78 505.92 5.3% EBIT Margins (%) 16.
Slide 32: Union Budget 2020 - Potential Business Opportunity
Finolex gets people together ".. Onion Budget 2020- Potential Business Opportunity .• 31
Slide 33: Union Budget direct benefits to various segments
Union Budget direct benefits to various segments of Finolex Cables Ltd Finolex gets people together Digitization Infrastructure • 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 34: Thank You
Finolex gets people tfether THANK YOU 33