Delton Cables Aug-24
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Questions and Answers

What primary sectors does the company focus on for growth?

  • Railway, Manufacturing, and Retail
  • EPC, IT, and Manufacturing
  • Telecom, Railway, and EPC (correct)
  • Telecom, Automobile, and Healthcare

    • What is one of the company's key strengths?

  • A wide range of high-voltage products
  • Global production facilities in multiple countries
  • Large-scale retail distribution networks
  • Established presence and long-term customer relationships (correct)

    • Which type of products does the company primarily offer?

  • High-voltage electric systems
  • Low-voltage electric products (correct)
  • Renewable energy solutions
  • Home appliance electronics

    • Which of the following is NOT part of the product range mentioned?

    <p>High-voltage transformers</p> Signup and view all the answers

    How long has the company been established?

    <p>75 years</p> Signup and view all the answers

    What was the Cash Conversion Cycle improved to in FY23?

    <p>116 days</p> Signup and view all the answers

    What is the company aiming to maintain its working capital cycle at?

    <p>100-120 days</p> Signup and view all the answers

    What approach is the company employing to achieve future growth?

    <p>Asset light approach</p> Signup and view all the answers

    What is the percentage of asset utilization targeted by the company?

    <p>76%</p> Signup and view all the answers

    Which of the following is NOT a strategy mentioned for rationalizing inventories?

    <p>Increasing product range</p> Signup and view all the answers

    What type of clients is the company reducing focus on?

    <p>Public sector clients</p> Signup and view all the answers

    What type of machinery installation does the company plan to focus on?

    <p>Top-tier machinery in leased facilities</p> Signup and view all the answers

    What financial model is the company focusing on instead of a CAPEX heavy one?

    <p>OPEX model</p> Signup and view all the answers

    What is the main strategic focus of the product portfolio?

    <p>High growth segments</p> Signup and view all the answers

    What does the asset light model primarily improve?

    <p>Capacity utilization</p> Signup and view all the answers

    How much did revenue increase in FY24 compared to FY22?

    <p>2.5 times</p> Signup and view all the answers

    What was the improvement in capacity utilization from FY22 to FY24?

    <p>From 44% to 76%</p> Signup and view all the answers

    What was the working capital days in FY24?

    <p>138 days</p> Signup and view all the answers

    What is the expected outcome of building a robust team for sales and execution?

    <p>Improved sales performance</p> Signup and view all the answers

    What segment was added to propel growth momentum?

    <p>Others</p> Signup and view all the answers

    What aspect of working capital efficiency saw a significant improvement?

    <p>Reduction in working capital days</p> Signup and view all the answers

    What was the total revenue for FY24?

    <p>INR 402 Cr</p> Signup and view all the answers

    What best describes the clientele focus of the product portfolio?

    <p>Concentrated and focused clientele</p> Signup and view all the answers

    What was the percentage growth in revenue for Delton in Q1 FY25 compared to the same quarter the previous year?

    <p>106%</p> Signup and view all the answers

    Which segment contributed the largest percentage to Delton's revenue in Q1 FY25?

    <p>Railways</p> Signup and view all the answers

    What was the EBITDA margin for Delton in Q1 FY25?

    <p>6.9%</p> Signup and view all the answers

    How much did Delton spend on debottlenecking their manufacturing facility over the last two years?

    <p>₹ 85.05 million</p> Signup and view all the answers

    What was the profit after tax for Delton in Q1 FY25?

    <p>₹ 30 million</p> Signup and view all the answers

    By how much did Delton's capacity utilization improve from FY22 to FY24?

    <p>30%</p> Signup and view all the answers

    What percentage did the profit after tax decline on a quarter-on-quarter basis in Q1 FY25?

    <p>52%</p> Signup and view all the answers

    What is the proposed final dividend for FY2024 per equity share of face value ₹ 10?

    <p>₹ 1.5</p> Signup and view all the answers

    What is the primary approach the company is using for capital allocation?

    <p>An asset light approach</p> Signup and view all the answers

    In which fiscal year is the company projected to see the highest capacity utilization?

    <p>FY23</p> Signup and view all the answers

    What percentage of the market share do branded products have in the low voltage segment?

    <p>45%</p> Signup and view all the answers

    What is the allocated capital for the phased capex plan in FY23?

    <p>INR 400 cr</p> Signup and view all the answers

    What percentage of the market does the company aim to capture as part of its unbranded growth strategy?

    <p>74%</p> Signup and view all the answers

    Which segment is the company's focus primarily on according to its market strategy?

    <p>Low voltage segment</p> Signup and view all the answers

    What was the company’s market size in USD billion for FY22?

    <p>27.8</p> Signup and view all the answers

    What is a key benefit of the company's brand mentioned in the context?

    <p>Capturing unbranded markets</p> Signup and view all the answers

    What percentage share did the high-voltage segment represent?

    <p>30%</p> Signup and view all the answers

    What is the total amount allocated for capital allocation?

    <p>INR 2500 cr</p> Signup and view all the answers

    What is the primary focus of the company's manufacturing strategy?

    <p>Innovation, efficiency, and versatility in manufacturing</p> Signup and view all the answers

    Which market sectors is the company planning to enter according to the content?

    <p>Nuclear, Defense, Water, and Smart Metering</p> Signup and view all the answers

    What strategic shift is being highlighted in the transformation process?

    <p>Focusing on large private EPC players</p> Signup and view all the answers

    What approach is the company taking towards market demand?

    <p>Demand-pull strategy based on market needs</p> Signup and view all the answers

    What is a key internal factor influencing the company's growth?

    <p>Focus on sustainable revenue growth</p> Signup and view all the answers

    Which segment has seen a significant push in infrastructure spending?

    <p>Railway Cables</p> Signup and view all the answers

    What is the desired outcome of the company’s focus on efficient capital allocation?

    <p>Sustainable revenue and improved profitability</p> Signup and view all the answers

    What is a common misconception about the company's segment strengths?

    <p>They target only one major segment.</p> Signup and view all the answers

    What factor contributes positively to the company's business, according to external dynamics?

    <p>Central government policies encouraging infrastructure spending</p> Signup and view all the answers

    What aspect is highlighted regarding approvals in the company’s strategy?

    <p>Increasing approvals, especially in the Power Cables segment</p> Signup and view all the answers

    How does the company plan to enhance its market position?

    <p>Using brand recall to expand into related segments</p> Signup and view all the answers

    What is emphasized as a way to improve market dynamics in the cable industry?

    <p>Understanding evolving market trends and adapting accordingly</p> Signup and view all the answers

    Which factor is NOT linked to higher GDP growth according to the material?

    <p>Lesser infrastructure spend</p> Signup and view all the answers

    What past hurdle is the company trying to overcome?

    <p>Lack of effective capital management</p> Signup and view all the answers

    Study Notes

    Investor Presentation - Delton Cables Limited

    • Date: August 09, 2024
    • Purpose: To present unaudited financial results for the quarter ending June 30, 2024
    • Compliance: Complies with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
    • Availability: Information also available on Delton Cables' website (www.deltoncables.com)
    • Key Figures:
      • Q1 FY25 revenue: ₹1,438 million (106% YoY, 8% QoQ)
      • Q1 FY25 EBITDA: ₹99 million (88% YoY, 8% QoQ)

    Company Overview

    • History: 75+ years in the low-voltage cable industry
    • Specialization: Low-voltage cables, with strong brand recall for telecom cables
    • Expansion: Now a customized, branded supplier for rapidly growing sectors like railways, EPC (engineering, procurement, and construction), telecom, and smart metering
    • Market Position: Aims to become a leading low-voltage cable company.
    • Market Segments: Delton Serves diverse sectors including Aerospace, Energy, Oil & Gas, Telecommunications, Railways, Cement & Steel, Defence, and Transportation
    • Customer Relationships: Long-standing relationships with marquee customers (e.g., Siemens, Adani, Tata Projects, BHEL, etc.) across EPC, Railways, and Telecom sectors

    Key Strengths

    • Focused, growth-oriented, niche market approach: EPC, Railway, and Telecom sectors offer substantial potential
    • Established Pan-India presence and sales network
    • Unconventional approach for conventional sectors: Tailored solutions for EPC project cables, railway cables and telecom cables
    • Wide array of low-voltage electric products: Provides an array of products, including Wire & Cables, Structured Cabling, and Metering Solutions (Smart Meters)
    • Diverse product range caters to various sectors: EPC Cables, Railway Cables, Telecom Cables, Industrial instrumentation cables
    • Quality products for varied sectors including aerospace, energy, oil & gas, telecommunications, railways, cement & steel, defense, and transportation.
    • Pioneering premium products, prime performance.

    Manufacturing

    • State-of-the-art manufacturing facilities
    • Capacity: 700 CR under various segments
    • Asset Light Approach: Maximize asset utilization, leased facilities, and OPEX model over CAPEX

    Strategic Transformation

    • Past Hurdles: Concentrated Product Portfolio, Non-Diversified Segment, Concentrated Clientele
    • Transformation Process: Focus on large private EPC players, building a niche product portfolio, effective working capital management.

    Key Growth Metrics

    • Detailed financial information is provided, including Key Financial Figures (revenue, EBITDA, PAT) for Q1FY25, and YoY/QoQ growth, and other data
    • Working Capital Efficiency: Improved Inventory management and debtor management.

    Corporate Information

    • Details on the Company's leadership structure.

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    Related Documents

    Delton Cables Ltd Investor Presentation August 2024 PDF

    Description

    Test your knowledge on the growth strategies and key strengths of the company. This quiz covers various aspects such as the primary sectors for growth, product offerings, and financial models. Assess your understanding of the company's operational focus and future plans.

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