Delton Cables May-24

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Questions and Answers

What is the primary market focus of the company?

Heavy machinery and equipment

High-voltage electric products

General consumer electronics

Niche market of low-voltage electric products (correct)

Which sectors offer substantial potential for the company?

Banking and finance

Manufacturing and textiles

EPC, Railway, and Telecom sectors (correct)

Retail and e-commerce

How long has the company been established?

Over 50 years

Over 100 years

Over 75 years (correct)

Over 25 years

What type of solutions does the company provide in addition to wire and cables?

Smart metering solutions Signup and view all the answers

What key attribute contributes to the company's reputation?

Long-standing customer relationships Signup and view all the answers

What is the improved Cash Conversion Cycle for the company based on the data?

116 days Signup and view all the answers

What strategy was employed to rationalize inventories?

Reducing SKUs and following a focused product range Signup and view all the answers

What is the target working capital cycle range the company aims to maintain?

100-120 days Signup and view all the answers

What focus shift is indicated regarding public sector clients?

Reduce focus on public sector clients and shift to high-rated EPC players Signup and view all the answers

What approach is the company employing for future growth?

An asset light approach utilizing leased facilities Signup and view all the answers

What percentage of asset utilization improvement is targeted through sweating assets?

76% Signup and view all the answers

What is the primary focus when installing top-tier machinery for higher productivity?

Using an OPEX model instead of CAPEX Signup and view all the answers

What change occurred in the Cash Conversion Cycle from FY22 to FY23?

Decreased by 48 days Signup and view all the answers

What significant development occurred for Delton in 1980?

First license to make Jelly Filled cables Signup and view all the answers

Which year marks the transformation for the Maiden Metro Line of DMRC?

2023 Signup and view all the answers

In which year did Delton first supply cables for ISRO's satellite space project?

2002 Signup and view all the answers

What product expansion is mentioned for the year 2020?

Supply to Rawatbhata atomic power station Signup and view all the answers

Who is described as the second generation leader of Delton?

Mr. Gupta Signup and view all the answers

Which product was first manufactured by Delton in 1955?

Plastic cables Signup and view all the answers

What aspect of the company is highlighted as beneficial for investors?

Strong tailwinds for long-term growth Signup and view all the answers

What is the allocated capital for the phased capex plan in FY22?

INR 2500 cr Signup and view all the answers

What was initiated by Delton in 1957?

Inaugurated textile braided cordage manufacturing Signup and view all the answers

Which approach is employed for resource allocation in the phased capex plan?

An Asset Light Approach Signup and view all the answers

In which year is the pivotal year noted for the phased capex plan?

2024 Signup and view all the answers

What percentage does the extra high voltage segment represent in the branded vs unbranded share?

45% Signup and view all the answers

What is the main segment focus of the company?

Predominantly low-voltage segment Signup and view all the answers

How long has the company been a well-known brand in the industry?

75 years Signup and view all the answers

What is the market size noted in billions for the specified context?

27.8 Bn Signup and view all the answers

Which market approach is the company adopting according to its presence?

B2B2C approach Signup and view all the answers

What percentage of the market is represented by the low voltage segment?

74% Signup and view all the answers

What is the projected growth strategy mentioned for future growth?

Systematic resource management Signup and view all the answers

What was the percentage increase in total income from operations from Q4FY23 to Q4FY24?

64% Signup and view all the answers

Which financial figure represents the EBITDA margin for FY24?

7.7% Signup and view all the answers

What was the reported profit after tax (PAT) for Q4FY24?

146.6 Signup and view all the answers

How much did the finance costs increase in percentage from FY23 to FY24?

109% Signup and view all the answers

What was the total equity reported in FY24?

713.3 million Signup and view all the answers

Which of the following shows the decrease in tax from Q4FY23 to Q4FY24?

-62% Signup and view all the answers

What was the year-over-year change (YoY) in employee benefits expense for FY24?

49% Signup and view all the answers

What was the total assets figure for FY24?

2672.2 million Signup and view all the answers

Which reported percentage shows the increase in manufacturing expenses from Q4FY23 to Q4FY24?

97% Signup and view all the answers

What is the increase in profit before tax (PBT) after exceptional items, represented as a percentage increase from Q4FY23 to Q4FY24?

747% Signup and view all the answers

How much was the reported revenue for FY23?

2734.8 million Signup and view all the answers

What was the reported cash and cash equivalents for FY24?

84.8 million Signup and view all the answers

What percentage did the cost of materials consumed represent for FY24?

59% Signup and view all the answers

Which year showed the highest reported EBITDA at a glance?

FY24 Signup and view all the answers

What is the primary focus of the manufacturing facilities mentioned?

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

Which sector is NOT mentioned as part of the strategic focus for expansion?

Retail Signup and view all the answers

What is the aim of Delton’s efforts in relation to government support in telecom?

To roll out 5G effectively Signup and view all the answers

Which of the following is a key factor aligned with internal dynamics?

Focus on demand-pull strategy Signup and view all the answers

What is emphasized in the company’s growth strategy?

Sustainable revenue growth Signup and view all the answers

Which segment is currently seeing increased approvals?

Power cables segment Signup and view all the answers

Which trend is expected to bolster private sector expenditures?

Higher GDP growth rates Signup and view all the answers

What is one of the outputs of the strategic transformation process noted?

Revenue growth Signup and view all the answers

What characterizes the company’s approach to conventional sectors?

An unconventional approach Signup and view all the answers

Which of the following is a factor influencing external dynamics?

Private sector capital expenditure Signup and view all the answers

What key strength is emphasized in the manufacturing base?

High versatility Signup and view all the answers

Which factor is NOT aligned with the internal dynamics of the company?

Reduction of labor costs Signup and view all the answers

How is market leadership in Quad Cables described?

Building on market leadership Signup and view all the answers

What does the strategy heavily emphasize for achieving profit margins?

Optimizing profit margins Signup and view all the answers

Study Notes

Investor Presentation - Delton Cables Ltd

Date: May 15, 2024
Purpose: Investor presentation for the audited financial results of the company for the quarter and financial year ended March 31, 2024.
Compliance: Complies with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Company information:
- Registered office: Delton House, 4801, Bharat Ram Road 24, Darya Ganj, New Delhi - 110002 (INDIA)
- Phone: +91-11-23273907
- Email: [email protected]
- Website: www.deltoncables.com
- CIN: L31300DL1964PL C004255
- ISO 9001-2008 Company
- BSE Scrip Code: 504240
Company Overview:
- Delton Cables is a pioneering cable and wires company specializing in low-voltage cables.
- 75 years of experience.
- Strong brand recall for telecom cables.
- Now a customized branded supplier for high-growth sectors like railways, EPC, telecom, and smart metering.
- Extensive presence in India.
- Supplying cables for ISRO, Maiden Metro, etc.
- Focused, growth-oriented with a niche market (EPC, Railway, Telecom).
Key Strengths:
- Large product portfolio (Wire & Cables, Structured Cabling Solutions, Metering Solutions (Smart Meters)).
- Long-standing customer relationships. Extensive brand recall.
- Broad reach (Pan-India Presence and Sales Network).
Versatile Product Range:
- Cables catering to the top EPC contractors in India.
- Catering to the rapidly growing railway and metro network in India.
- Strength in the modernization of India's telecom sector.
Diverse Segments:
- Products for various industries: Aerospace, Energy, Smart Metering, Oil & Gas, Telecommunications, Railways, Cement & Steel, Defence and Transportation.
Customers:
- Proven partnerships with well-known companies like Siemens, adani, Tata Projects, Honeywell, etc.
Manufacturing Base:
- State-of-the-art manufacturing facilities with a capacity of ₹700 crore.
- Emphasis on innovation, efficiency, and versatility
- Aiming for an Asset Light Approach.
Segment Strengths:
- Tailored solutions for different sectors
- Expansion into unconventional sectors like nuclear, defense, and water & smart metering.
Aligned Dynamics:
- Internal factors (clarity, efficiency, endurance) combine with external factors (Delton's efforts, enabling policy, private sector capex) to bring equilibrium.
Strategic Transformation:
- Focusing on large private EPC players.
- Building a niche product portfolio focusing on high-growth segments.
- Effective management of working capital.
Key Growth Metrics (Q4 & FY24):
- Highest ever quarterly revenue at ₹1,331 million (up 64% Y-o-Y).
- Total revenue of ₹4,033 million for the year (up 47% Y-o-Y).
- Improved EBITDA and profit after tax.
- Capacity utilization improved greatly (Increased from 44% in FY22 to 76% in FY24).
- Reduced working capital days (from 218 days in FY22 to 138 days in FY24)
Corporate Information: Details of the company’s leadership, board members, and contact information.
History:
- Delton's history from 1957 to 2023, highlighting notable events and milestones.

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Description

This presentation outlines the audited financial results of Delton Cables Ltd for the year ending March 31, 2024. It adheres to SEBI regulations and highlights the company's long-standing expertise in the cable industry, along with its compliance and corporate information.