Rr Kabel Ltd. · NSE:RRKABEL
Rr Kabel — Q3 FY24 Earnings Presentation
44 slides from Rr Kabel's earnings presentation, January 2024
Slide 1: Investor Presentation
Investor Presentation January 2024
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by RR Kabel 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 securities,
Slide 3: Q3 & 9M FY24 – Quarterly Results
Q3 & 9M FY24 – Quarterly Results 3
Slide 4: Q3 & 9M FY24 Key Performance Metrics
Q3 & 9M FY24 Key Performance Metrics Revenue from Operations Operating EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) INR in Crs 8.1% 7.5% 6.9% 4.8% 4.6% 4.3% +10.4% -5.8% -0.7% 1,609.7 1,633.5 119.6 121.1 71.4 74.1 71.0 Q3FY24 1,479.5 112.6 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q
Slide 5: Operational Highlights
Operational Highlights Q3 FY24 Revenue-Mix 9M FY24 Revenue-Mix Working Capital Management (in Days) (Domestic Vs Exports) (Domestic Vs Exports) Net 88 75 65 65 Working Capital (in Days) 79% 74% 75% 73% 63 63 63 61 21% 26% 25% 27% Q3FY23 Q3FY24 9MFY23 9MFY24 Domestic Export 39 36 37 35 9M FY24 Revenu
Slide 6: Consolidated Profit & Loss Statement – Q3 & 9M FY24
Consolidated Profit & Loss Statement – Q3 & 9M FY24 Profit & Loss Statement (INR. Crs) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y Revenue from Operations 1,633.5 1,479.5 10.4% 1,609.7 1.5% 4,840.5 4,082.7 18.6% Cost of Materials Consumed 1,148.1 1,109.2 1,257.3 3,602.5 3,117.5 Purchas
Slide 7: Company Overview
Company Overview 7
Slide 8: At Glance
At Glance Founded in 1999. 5th largest player in the Indian Wires and Cables(W&C) industry by value in FY23 Overview Electrical conglomerate present in 85+ countries worldwide. Our products have 35 international certifications, distinguishing us in the Indian consumer industry Integrated In-house ma
Slide 9: Our Growth Journey
Our Growth Journey RR Kabel has operating history of 20+ years Business of Wires & Cables Diversifying into FMEG Trading -> Manufacturing Expanding Global Footprint o Commencement of o Established o Commencement of exports to the US o Commencement of o Got listed on NSE & BSE Operations; First manuf
Slide 10: Diverse Suite of Products
Diverse Suite of Products B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity Wire & Cables (Revenue - 89%) FMEG (Revenue - 11%) 9M FY24- Revenue contribution 10
Slide 11: Our Strength to Drive Success
Our Strength to Drive Success Consumer Focused Brands Large Consumer Electrical Industry Diverse Suite of consumer electricals products Well Recognized Consumer Brands underpinned by focused R&D efforts with global certifications Large Scale Manufacturing Scaled B2C Business Technologically Advanced
Slide 12: Integrated Manufacturing Facilities
Integrated Manufacturing Facilities W&C: 100% In-House Manufacturing Pan-India Facilities Quality & Reliability 5 Facilities: 2 for W&C + 3 for FMEG In-house manufacturing Shorter time to market & cost competitiveness Backward integration Automation in Manufacturing(1) Waghodia Silvassa Capacity Cap
Slide 13: Wires & Cables (W&C)
Business Segments Wires & Cables (W&C) 13
Slide 14: Wires & Cables
Wires & Cables Wires & Cables Revenue 89* % Contribution Facility Waghodia & Silvassa Annual Capacity 4.2Mn ckm House wires, Industrial Product Category wires, Power cables & Special cables * 9M FY24 14
Slide 15: Vast Product Basket of W&C
Vast Product Basket of W&C Wires Cables House Wires Power Cables LT Power Cable Medium & High Voltage Heat Resistant Wires Fire Resistant Wires Low Smoke Zero Halogen Power Cables Wires Applications Applications o Residential Buildings o Power Transmission o Commerical o Power Distribution o Public
Slide 16: Long-Term Industry Growth Drivers
Long-Term Industry Growth Drivers Indian Wires & W&C share of Indian FY23 to FY27 INR748bn Cables Market (FY23) 40% electrical industry (FY23) 13% CAGR Indian Wires and Cables Market Poised for Strong Growth.. ..Across all sub-sectors and a shift to branded players W&C Market Size (INR Bn) W&C Marke
Slide 17: Scaled B2C W&C Business…
Scaled B2C W&C Business… Stronger Fundamental Drivers RR Kabel is Well-Positioned in the Wires and Cables Segment… Well-Recognized Brand Domestic Exports Fastest Growing Amongst Key Peers One of India’s Leading W&C Exporters… 43% vs. 27% INR 12,702Mn RR Kabel vs. peers (FY21-23 CAGR) FY23 Export Rev
Slide 18: Domestic Distribution Network
Domestic Distribution Network (As on Sep’23) …With Headroom for Growth… Pan India Presence Retailers Network 3,26,214 114k+ 225k Peer Electricians …and Multi-Year Initiatives in place 3,598 Distributors 1 Project KaRRma W&C Phase I Double market share and retail outreach in domestic house wires 3,78
Slide 19: Global Distribution Footprint
Global Distribution Footprint Product quality and global accreditations enabling growth ~27% Europe North Exports % of Revenue from Operations- 9M FY24 America Middle East Asia ~9% Exports W&C to Pacific 67 Countries Market Share of W&C Exports from India ✓ RR Kabel is one of India’s largest exporte
Slide 20: Wires & Cables – Performance
Wires & Cables – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) 22.9% 19.6% 19.3% 9.0% 7.9% 7.1% 7.2% 8.6% +96.8% +43.1% +55.0% 4,959 +18.4% 372 352 4,307 323 4,111 3,637 260 227 2,520 FY21 FY22 FY23 9M FY23 9M FY24 FY21 FY22 FY23 9M FY23 9M FY24 % Margi
Slide 21: Fast Moving Electrical Goods (FMEG)
Business Segment Fast Moving Electrical Goods (FMEG) 21
Slide 22: Fast Moving Electrical Goods (FMEG)
Fast Moving Electrical Goods (FMEG) FMEG Revenue 11* % Contribution Facility Roorkee, Bengaluru & Gagret ś Annual Capacity Fan- 3.2 Mn units Lights- 1.9mn units Fans, Lighting, Switches, Product Category Switchgears & Appliances * 9M FY24 22
Slide 23: …through a Wide FMEG Product Portfolio…
…through a Wide FMEG Product Portfolio… Fans Lighting Ceiling Table Pedestal & Panel Lights Bulbs Down Lights Streetlights Exhaust Fans Fans Wall Fans Switches Appliances Modular Switches Water Heater Room Heater Irons Coolers MCB DB Premium Products 23
Slide 24: FMEG Industry Opportunity
FMEG Industry Opportunity INR1,064bn Indian FMEG Market (FY23) 8% FY23 CAGR to FY27E 77% Coverage of FMEG industry INR1,064bn FMEG Market Opportunity with Growth across all Sub-categories… Fans Lighting Switch & Switchgear Home & Kitchen Appliances Market Size (FY23) INR 139bn INR 336bn INR 292bn IN
Slide 25: Well-Poised for Growth in the FMEG Segment
Well-Poised for Growth in the FMEG Segment RR Kabel has built a wide FMEG portfolio and has a 3-Phased Journey to Capture Value Building Foundation Acquire and Consolidate Accelerate FMEG Revenue (INR Crs) 641 +133.3% 275 194 204 Accelerate growth of FMEG business: FY20 FY21 FY22 FY23 • Leverage Wel
Slide 26: FMEG – Performance
FMEG – Performance Revenue from Operations Segment Profit before Tax and Interest (INR Cr) (INR Cr) +133.1% 641 +19.7% 534 446 +34.9% -30 -30 275 -49 204 -70 -74 FY21 FY22 FY23 9MFY23 9MFY24 FY21 FY22 FY23 9MFY23 9MFY24 Luminous HEB acquisition impact Revenue ✓ Increase in revenue is due to overall
Slide 27: Strategy to Expand FMEG segment
Strategy to Expand FMEG segment Clear strategy in place to expand FMEG revenues Manufacture Value Added Products Presence Across Price Points Exclusive FMEG brand • Premium Decorative Fans, Downlight • Strengthen presence across economy, • Building ‘RR Signature’ brand for Panels, Switchgears premiu
Slide 28: Board of Directors
Board of Directors- Renowned promoter group, investor and independent director oversight Tribhuvanprasad Shreegopal Rameshwarlal Mahendrakumar Mitesh Daga Rameshwarlal Kabra Kabra Rameshwarlal Kabra Executive Chairman Managing Director Joint Managing Director Non- Executive Nominee Director • Promot
Slide 29: Professional Management Team- Extensive Experience
Professional Management Team- Extensive Experience Dinesh Aggarwal Rajesh Babu Jain Sanjay Narnarayan Taparia Vivek Abrol CEO CFO CEO, International Business CEO, FMEG 35 years 28 years 32 years 22 years Shishir Sharma Satishkumar Anandilal Agarwal Himanshu Navinchandra Parmar Vinod Parur Chief Sale
Slide 30: Testimony to Our Performance
Testimony to Our Performance Padma Shri Awardee The Best Practices RR Kabel Wins The ‘Best Padma Shri Awardee Trailblazer HR Great Place To Work- RR Kabel Wins The Shree Rameshwarlal Award In The Industry Construction & Shree Rameshwarlal Initiative Award Of The 2023 ‘Best Brand In Building Kabra Fe
Slide 31: R&D Certification & Innovation
R&D Certification & Innovation Innovative and quality products with multiple industry-first launches Innovation Team 35 International Product Certifications 60 Focused on R&D 22 focused on R&D for FMEG Innovation Leader Canada Europe Europe Great Britain Europe 1st to introduce Low Smoke Zero Haloge
Slide 32: Industry Growth Drivers
Industry Growth Drivers Public and private investment outlay in infrastructure Policy reforms promoting production, exports and ease of Various policy interventions have been undertaken by GoI in the infrastructure doing business sector to boost India’s GDP and economic growth Various policy reforms
Slide 33: Our Focus on Environmental, Health, Safety and Sustainability Initiatives
Our Focus on Environmental, Health, Safety and Sustainability Initiatives Focus on sustainability & responsible growth Community Promoting Green Conserving Development Energy Water 1.45MW of solar capacity & 3.8 MW Recharging groundwater Kabel Star Scholarships of wind solar hybrid (1) through Rainw
Slide 34: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) Mission RRoshni is RR Kabel’s endeavour to achieve an empowered and educated India. We are dedicated towards making a positive and lasting change in the lives of rural India. Training and development program for teachers/Anganwadi & Key Activities: 2022-23 Vivek
Slide 35: Corporate social responsibility (CSR)
Corporate social responsibility (CSR) EKAL GRAMOTHAN FOUNDATION Other Key Activites RR Gramothan Training & Research Center (GRC Jarangloi, Sundargarh, Orissa) o CTL (Computer training lab) o WEC (Women Empowerment center) o Organic Farming o Nutrition Garden o Electrical Wiring & Home Appliances Tr
Slide 36: Advertisement - Campaigned
Advertisement - Campaigned Multiple ATL and BTL initiatives to build a connect with key consumers and strengthening brand Multi-Pronged Approach to Increase Brand Awareness Outdoor Advertising Ad Campaigns with Broad Reach Strategically placed ads for Ad placement to emphasize Safety & Engaged a lea
Slide 37: Advertisement
Advertisement Brand Hoardings Exhibition Our Brand Ambassador Gate Branding Kabel Mela 37
Slide 38: RR Kabel’s Strengths will Continue to Drive Success…
RR Kabel’s Strengths will Continue to Drive Success… TAM Large Addressable Market + Strong Structural Drivers Distribution Pan-India Distribution + Global Footprint Well-Recognized Consumer Brand + Brand Operating History of 20+ years Diverse Products Wide Range of Wires & Cables + FMEG Products Exe
Slide 39: Annexure
Annexure 39 www.rrkabel.com
Slide 40: Performance in Charts
Performance in Charts Revenues EBITDA & EBITDA % PAT & PAT % INR in Crs 5.8% 8.5% 7.0% 5.0% 4.9% 3.4% +18% +18% +43% 5,599.2 323.3 213.9 307.4 189.9 4,385.9 231.2 135.4 2,723.9 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 RoCE (%) RoE (%) Debt to Equity (x) 17.4% 18.6% 0.48 15.6% 0.42 13.5% 13.9% 14
Slide 41: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (INR. Crs) FY23 FY22 FY21 Revenue from Operations 5,599.2 4,385.9 2,723.9 Cost of Materials Consumed 4,369.8 3,575.5 2,173.2 Purchase of stock in trade 368.9 156.6 129.9 Changes in Inventories of Finished Goods and Work in Progress -162.9 -
Slide 42: Historical Balance Sheet
Historical Balance Sheet EQUITY & LIABILITIES (INR. Crs) Mar-23 Mar-22 Mar-21 ASSETS (INR. Crs) Mar-23 Mar-22 Mar-21 Equity Share Capital 47.8 23.9 23.9 Property, Plant and Equipment 448.8 383.7 386.0 Instrument entirely equity in nature 415.2 415.2 415.2 Right -of- use Assets 61.8 11.1 8.1 Other Eq
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR in Cr) Mar-23 Mar-22 Mar-21 Profit before Tax 256.0 284.4 181.4 Adjustment for Non-Operating Items 102.6 62.5 73.0 Operating Profit before Working Capital Changes 358.6 346.9 254.5 Changes in Working Capital 153.4 -175.4 -283.7 Cash Generated from Op
Slide 44: Thank You
Thank You R R Kabel Limited Mr. Irfan Raeen CIN: U28997MH1995PLC085294 +91 9773 778669 Irfan.raeen@linkintime.co.in Name – Pratik Agarwal Title – GM - Corporate Affairs & Investor Relations Mr. Ronak Jain Email – investorrelations.rrkl@rrglobal.com +91 9820 950544 Ronak.Jain@linkintime.co.in