Delton Cable Nov-24

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which sectors present substantial potential for growth according to the company overview?

Real Estate and Manufacturing

Retail and Hospitality

EPC, Railway, and Telecom (correct)

Healthcare and Agriculture

What aspect of the company has contributed to its strong brand recall over 75 years?

Heavy investment in digital marketing

Long-standing customer relationships (correct)

Diverse product range and sustainable practices

Innovative pricing strategies

What type of solutions does the company offer in the context of Structured Cabling?

Smart Metering solutions (correct)

Renewable energy solutions

Telecom and EPC solutions

High-voltage electric solutions

Which statement best describes the company's market strategy?

To be a niche player in low-voltage electric products Signup and view all the answers

How does the company describe its operational model?

As a one-stop shop for low-voltage electric products Signup and view all the answers

Which of the following cable types are used in railway signaling?

Railway Quad Cables Signup and view all the answers

What is the primary focus area of Delton as a cable solutions partner?

Railways and Telecom Signup and view all the answers

Which segment is NOT mentioned as one of Delton's served domains?

Automotive Signup and view all the answers

Which type of cables are specifically mentioned for underground applications?

PIJF Cables Signup and view all the answers

What is the emphasis of Delton's offered products?

Premium Products with Prime Performance Signup and view all the answers

Which of these connections is highlighted in Delton's slogan?

We Connect, We Protect Signup and view all the answers

Which of the following customers does Delton primarily serve?

EPC Companies Signup and view all the answers

In which sector is telecommunications specifically categorized in the content?

Diverse Domains Signup and view all the answers

What is the company's target working capital cycle range?

100-120 days Signup and view all the answers

How does the company plan to enhance productivity?

By employing an asset-light approach with leased facilities Signup and view all the answers

What is the maximum cash conversion cycle noted in the data for FY25?

136 days Signup and view all the answers

Which strategy does the company adopt regarding public sector clients?

Reduce focus on public sector clients Signup and view all the answers

What percentage does the company aim to maximize asset utilization through?

58% Signup and view all the answers

In terms of the working capital cycle, which metric appears in the data?

Receivables Days Signup and view all the answers

What approach is the company moving away from in its operational strategy?

CAPEX heavy approach Signup and view all the answers

What is the cash conversion cycle in days reported for FY22?

206 days Signup and view all the answers

What percentage growth did Delton Cables report for its revenue in Q2 FY25 compared to the previous year?

94% Signup and view all the answers

What is the EBITDA margin for Delton Cables in Q2 FY25?

6% Signup and view all the answers

How much was the increase in PAT for Q2 FY25 compared to the same quarter the previous year?

155% Signup and view all the answers

What is the total value of Delton Cables' current order book as of September 30, 2024?

₹ 2750 million Signup and view all the answers

Which segment contributed 46% to the revenue in Q2 FY25?

Railways Signup and view all the answers

What was the investment approved by the board for setting up an additional capacity (Plant III)?

₹ 100 million Signup and view all the answers

What was the percentage growth of EBITDA for H1 FY25 compared to the previous year?

50.9% Signup and view all the answers

Which of the following contributed the least to the revenue during Q2 FY25?

Other segments Signup and view all the answers

What is the manufacturing capacity of the facilities mentioned?

700 CR Signup and view all the answers

Which sector is NOT mentioned as a focus area for expansion?

Aerospace Signup and view all the answers

What approach is emphasized for conventional sectors?

Unconventional approach Signup and view all the answers

What key factor is emphasized for business positivity?

Private Sector spending Signup and view all the answers

Which factor is categorized as an external factor impacting business?

Central government policies Signup and view all the answers

What is the primary focus of the strategic transformation mentioned?

Large Private EPC players Signup and view all the answers

What is a key strength identified in the manufacturing base?

State-of-the-art facilities Signup and view all the answers

What drives the strategy towards a sustainable revenue model?

Optimizing profit margins Signup and view all the answers

Which of the following is NOT a part of the output expected from the transformation process?

Improved brand recognition Signup and view all the answers

What aspect does the organization want to build on in terms of market leadership?

Quad cables Signup and view all the answers

What is highlighted as a crucial internal factor for growth?

Demand-pull focus Signup and view all the answers

Which government initiative is mentioned as a driving force for expansion?

Make in India Signup and view all the answers

What aspect of revenue strategy is emphasized for future growth?

Sustainable practices Signup and view all the answers

What does the strategy aim to enhance besides growth?

Profit margins Signup and view all the answers

What is the focus area for expanding the approval base?

Catering to more players Signup and view all the answers

What was the PAT for Q2FY25?

154 million Signup and view all the answers

What was the EBITDA margin for H1FY25?

8.4% Signup and view all the answers

What was the total income from operations for H1FY25?

3,191 million Signup and view all the answers

Which of the following had the highest percentage increase in Year-over-Year (YoY) in Q2FY25?

PAT Signup and view all the answers

Which line item saw a decrease in the total for H1FY25 compared to H1FY24?

Total Equity Signup and view all the answers

What was the significant exceptional item noted in Q2FY25?

Exceptional Gains Signup and view all the answers

What was the percentage increase in cash and cash equivalents from FY24 to H1 FY25?

44.3% Signup and view all the answers

What was the total assets value for H1 FY25?

3,462.7 million Signup and view all the answers

What was the percentage change in the Cost of Materials Consumed in H1FY25 compared to H1FY24?

109.7% Signup and view all the answers

What was the finance cost for Q2FY25?

64.3 million Signup and view all the answers

Which metric reflects the profitability in terms of equity for FY24?

RoE Signup and view all the answers

What was the reported EBITDA for Q2FY25?

104.3 million Signup and view all the answers

What was the year-on-year (YoY) growth in employee benefits expense from Q2FY24 to Q2FY25?

67.9% Signup and view all the answers

Which component contributed the most to total liabilities in H1 FY25?

Borrowings Signup and view all the answers

Study Notes

Investor Presentation

Delton Cables Limited presented on November 12, 2024.
The presentation included unaudited financial results for the quarter and half year ending September 30, 2024.
Information also available on the company's website (www.deltoncables.com)
The presentation adhered to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Vivek Gupta, Managing Director, signed the presentation.
DIN: 00035916

Company Overview

Delton Cables is a pioneering company specializing in low-voltage cables.
Founded over 75 years ago, Delton Cables has a strong brand recall for telecommunication cables.
Has expanded into sectors like railways, EPC, and smart metering.
The company's vast product offerings and robust approval base position it as a leading low-voltage cable supplier to global customers.
The company offers a wide array of low-voltage electric products including wire & cables, structured cabling solutions, and smart metering solutions (Smart Meters)
Strong history over 75 years, established pan-India presence, and customer relationships.

Diverse Product Range

Delton Cables caters to a wide variety of sectors, including EPC contractors, Railways, and Telecom.
Product lines include Industrial Braided Instrumentation Cables, Individual Shielded Instrumentation Cables, Underground Signaling Cables, Railway Quad Cables, Optic Fiber Cables, Telephone Cables, Overall Shielded Control Cables, Power Cables, Underground PDF Telephone Cables, Jelly Filled Cables, and Railway Telephone Cables.
Delton is a preferred cable and cabling solution partner for many EPC, Railways, and Telecom customers across India.

Diverse Segments

Delton Cables caters to various sectors: Aerospace, Energy, Smart Metering solutions, Oil & Gas, Telecommunications, Railways, Cement & Steel, Defence, and Transportation.

Key Strengths

Focused, growth-oriented, niche market approach.
Strategic focus on Telecom and Railway sectors.
Established pan-India presence and sales network.
Strong customer relationships and brand recall.
Flexible and effective manufacturing base and capacity.
Strong internal factors like clarity and efficiency.
External factors and policy alignment with infrastructure spending.

Segment Strengths

EPC Project Cables: Focused on Pan-India expansion and new opportunities
Railway Cables: Strong presence in existing market.
Telecom Cables: Building on brand recall to related segments.

Strategic Transformation

Past Hurdles: Concentrated product portfolio, non-diversified segments, and concentrated clientele.
Transformation Process: Focus on large private EPC players, building a niche product portfolio, and effective working capital management.

Key Growth Metrics: Revenue & Profitability

Revenue growth for Q2 2024-2025
Growth in Capacity Utilization
Revenue increase compared with previous years.
Significant increases in profitability.
New segment additions to propel company growth

Key Growth Metrics: Working Capital Efficiency

Rationalized Inventories
Focus on high-rated customers
Maintains a healthy working capital cycle

Future Growth

Asset-light approach to maximize asset utilization
Continued investment in additional manufacturing capacity (Plant III) to cater to emerging sectors.

Board Members

The presentation features details about the company's board members.

Corporate Information

Financial Highlights (Q2 & H1 FY25)

Significant revenue growth.
Improvement in EBITDA and PAT margins.
Increased capacity utilization and efficiency in working capital management.
Robust order book.

Result Analysis (H1 FY25)

Revenue and EBITDA growth compared to previous years.

Result Analysis (Q2 FY25)

Significant revenue growth during the second quarter
Strong performance in EBITDA and profitability during the second quarter.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge about Delton's strategies, products, and market segments. This quiz covers various aspects of the company's operational model, brand recall, and specific offerings in structured cabling. Discover how well you understand the telecommunications sector and Delton's contributions within it.