Delton Cables Ltd Investor Presentation November 2024 PDF

To, November 12, 2024 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 BSE Scrip Code: 504240 Sub: Investor Presentation Dear Sir/Madam, Pursuant to Regulations 30 of SEBI...

To, November 12, 2024 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 BSE Scrip Code: 504240 Sub: Investor Presentation Dear Sir/Madam, Pursuant to Regulations 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we hereby enclosed presentation for investors in connection with the Un-audited Financial Results of the Company for the quarter and half year ended September 30, 2024. The above information is also being made available on the Company’s website at www.deltoncables.com. Kindly take the same on your record pursuant to SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. Thanking you, Yours faithfully For Delton Cables Limited VIVEK Digitally signed by VIVEK GUPTA GUPTA Date: 2024.11.12 20:25:15 +05'30' Vivek Gupta Managing Director DIN: 00035916 Encl : as above  We Connect We Protect Delton Cables Ltd Investor Presentation 1 November 2024  We Connect We Protect TABLE OF CONTENTS Key Strengths Quarterly & Financials About Us Being Future Ready Contact Us 2  About Us We Connect We Protect Delton Cables is a pioneering cables & wires company specialising in low-voltage cables. For over 75 years, Delton has enjoyed powerful brand recall for its telecom cables. Delton has now transformed itself into a customised branded supplier for high-growth sectors such as railways, EPC, telecom, and smart metering. With its robust approval base, vast yet niche product offerings, and position as a supplier of choice to marquee global customers, Delton is set to become a formidable low-voltage cable company. 3 Company Overview: Enduring Legacy over 75 years We Connect We Protect ‘ One-stop shop’ offering a wide Focused, growth-oriented, niche market array of low-voltage electric products EPC, Railway, and Wire & Cables Telecom sectors offer Structured Cabling Solutions substantial potential Metering Solutions (Smart Meters) Long-standing Customer Relationships Established Pan-India Presence and Sales Over 75 years Established Brand Network with strong recall across various customer segments 4 Versatile Product Range We Connect We Protect A Leading Low Voltage player TELECOM CABLES : EPC CABLES : RAILWAY CABLES : Further strengthening our foothold Catering to the top EPC Catering to the rapidly growing in the modernization of India's contractors in India. Railway & Metro network of India Telecom Sector Industrial Braided Individual Shielded Instrumentation Instrumentation Underground Signaling Cables Railway Quad Cables Cables Cables Telephone Cables Optic Fiber Cables Overall Shielded Control Cables Underground PIJF Railway Telephone Power Cables Jelly Filled Cables Cables Telephone Cables Cables 5 For more products Diverse Segments: Quality Products For A Variety Of Sectors We Connect We Protect Diverse Domain, Diverse Demands & Diverse Deliveries. Aerospace Energy Smart Metering Oil & Gas Defence Transportation solutions Cement & Railways Steel Telecommunications Pioneering Premium Products, Prime Performance. 6 Our Customers: Proven Partnerships backed by Unwavering Confidence We Connect We Protect Trusted by Diverse Clients 7 Connected Network, Limitless Customers We Connect We Protect Delton is a preferred cable and cabling solutions partner for many marquee EPC, Railways and Telecom customers across India. 8 Manufacturing Base: Innovation at the Forefront We Connect We Protect The Powerhouse of Pioneering Innovation, Product Categories Efficiency, and Versatility Where Technology Meets Manufacturing Brilliance State-of-the-art Manufacturing facilities with a Capacity of 700 CR under various segments 9  We Connect We Protect Key Strengths 10 Segment Strengths: Tailored Solutions for Every Segment's Needs We Connect We Protect Unconventional Approach for Conventional Sectors EPC Project Cables Railway Cables Telecom Cables Building on our Brand Focused on PAN India recall to foray into 01 presence, and accordingly expanding to Encashing Massive Push on Railways related segments using Delton’s untapped areas Spend Structured Cabling Solutions Entering New Sectors like 02 Building on market Govt Telecom push, Nuclear, Defense , Water leadership of Quad further roll out of 5G & Smart Metering Cables and beyond Consolidated Market 03 Increasing Approvals Share of Railway Expanding Approval especially in Power segment cables under base to cater to more Cables segment one brand players 11 Aligned Dynamics: Fusing Internal and External Factors We Connect We Protect Clarity Enabling Focussed on High growth , Central Govt policies large Private EPC players enabling Strategic focus on Telecom Delton’s Efforts Infrastructure spend, and Railway sectors which positively Bringing Equilibrium affects our business Vision Policy Efficiency Private Sector Aligned with India's Capex infrastructure spend Internal External Focus on Demand–Pull Higher GDP growth rather than Product Push Factors Factors Cycle bolstering Private Operation Sector Capex spends Endurance Resulting into Dynamic Trends Emphasizing sustainable Sustainable Revenue Growth Market revenue and growth strategy Evolving Optimizing profit margins Margins Expansion market Efficient Capital dynamics in the Allocation Cable industry 12 Strategic Transformation: Unlocking Potential We Connect We Protect Transformation Process Now focussed on Large Private EPC players Output Past Hurdles Effective ❑ Revenue Growth ❑ Concentrated Building a niche management of product portfolio ❑ Improved Profitability working capital. Product Portfolio focusing on high Asset Light model ❑ Improved Working growth segments for capacity ❑ Non-Diversified Capital Cycle Addition Segment ❑ Concentrated New Generational Clientele shift in Management and Building a robust team for sales and execution 13 Key Growth Metrics : Revenue & Profitability We Connect We Protect Tangible Elevated Attainment Revitalised Sales Strategy Outcomes INR 402 Cr Capacity utilisation 23 50 INR 318 Cr improved to 76% INR 274 Cr in FY24 from 44% in 29 14 19 FY22 41 170 Targeting 144 Focused INR 160 Cr 7 122 Customers & 35 Market Marketing & Revenue increased offering 57 159 Analysis Monitoring 97 126 by 2.5x inFY24 Tailored 61 Practices from FY22 products FY22 FY23 FY24 H1FY25 Project Cables Railway Cables Telecom Cables Others Adding New Segments to propel Revenue growth momentum 14 Key Growth Metrics : Working Capital Efficiency We Connect We Protect Working Capital Days improved to 138 in FY24 from 218 in FY22; 116 days as on H1FY25 Cash Conversion cycle improved to 116 days from 01 Rationalising Inventories by reducing SKUs 214 days in FY22; 99 days as on H1FY25 Inventory and following a focussed product range which maximises value. 214 Cash Conversion Cycle (in days) 61 02 Reducing Focus on public sector clients 137 116 99 Debtors and focus on High rated EPC players. 51 63 Direct Sales to customers. 62 206 136 112 93 03 69 67 67 The company aims to maintain its working 52 Working capital cycle of 100-120 days over the time. FY22 FY23 FY24 H1FY25 capital Receivables Days Inventory days Payble days Cash Conversion (days) 15  We Connect We Protect Being Future Ready Future Growth: Employing an Asset Light Approach We Connect We Protect 76% Maximize asset utilization through sweating assets. 58% Install top-tier machinery in leased facilities for 44% enhanced productivity, focusing on a OPEX model 10.8 11.9 instead of a CAPEX heavy one 6.3. Capitalizing Higher Asset T/O FY22 FY23 FY24 F.Assets T/O (x) Capacity Utlisation Capital Allocation INR 2500 cr 2030 Phased Capex Plan Allocate resources gradually and INR 400 cr systematically employing a “ An Asset Light Approach” Pivotal 2024 year 17  Future Growth : Unlocking Potential We Connect We Protect Share by Voltage Low Extra High Voltage * Voltage Branded Vs Unbranded 10% 45% Market Size (USD Bn) 27.8 25.5 26% 20% 34% 29% 30% 23.3 39% 21.3 19.4 17.7 16.1 14.6 74% 80% 66% 71% 70% 61% High voltage Medium Voltage 30% 15% FY14 FY18 FY21 FY22 FY23 FY27E CY2021 CY2022 CY2023 CY2024 CY2025 CY2026 CY2027 CY2028 Company presence in Being a well-known The Company is focused Cables makes it The company’s brand over more than predominantly on low- propelling and presence in B2B , 75 years helps to voltage segment which is conducive to long- B2B2C approach capture unbranded aligning with Industry term growth. augurs well players market share dynamics Our company benefits from strong tailwinds, propelling us toward long-term growth for our investors. 18  We Connect We Protect Corporate Information Traversing the Rich Tapestry of Delton's History We Connect We Protect 1991 2002 1957 1982 2023 Supplied cables supplies Cables Transformation inaugurates manufacturing textile getting listed on for the ISRO for the Maiden Underway braided cordage for the first time the BSE satellite space Metro Line of in India station DMRC 1955 1980 1985 1995 2020 first of-its-kind receives its first supplies cables & Supplied to the Expands its manufacturer of license to make wires in ITI LTD's Rawatbhata product basket plastic cables in Jelly Filled cables prestigious atomic power with structured India in the Indian project Electronic station. cabling solutions. Private Sector switching System. 20 Board Members We Connect We Protect Name Designation Description Mr. Gupta is the second generation leader of Delton, holding the Chairman & Wholetime mantle Chairman for 17 years. He has 60 plus years of experience in the Vijender Kumar Gupta Director cables industry. He provides guidance to the board, ensures effective governance practices and provides macro industry insights. Mr. Vivek Gupta, is the third generation leader of Delton, with over 30 years of experience in the cables industry. Mr. Gupta leads Delton’s Vivek Gupta Managing Director transformation by setting strategic direction and driving key growth initiatives. Mrs. Shalini Gupta has been a part of the Delton board for 10 years. Shalini Gupta Non-executive director She has been and continues to be actively involved in CSR and ESG activities at Delton. Mr. Sharma has over 45 years of experience in sales and marketing in Shashi Kumar Sharma Whole time Director wire and cables industry. He has been associated with Delton for the past 45 years. 21 Board Members We Connect We Protect Name Designation Description Amit Ramani is the Founder & CEO of Awfis Space Solutions which is India's largest shared workspace company with 40,000 seats across 75 centres in 11 cities in India. He holds a Bachelor’s degree in architecture Amit Ramani Non-Executive from School of Planning and Architecture, New Delhi, a master’s degree Independent Director in architecture from Kansas State University, USA and a master’s degree in science from Cornell University, USA. He has about 20 years of experience in the field of real estate and workplace solutions. Mr. Aggrawal is promoter director of Sterling Tools Limited. He brings more than three decades of experience in Business Strategy, Marketing Non-Executive & Sales, Finance, IT & Human Resource and Strategic Sourcing to the Atul Aggarwal company. He provides expert advise in the fields of Finance & Independent Director Compliances. Mr. Poddar is an industrialist, philanthropist, and art collector. He is the director of SUA Explosive & Accessories, and the Managing Director of Non-Executive Matheson Bosanquet. He has varied experiences in the spheres of Abhishek Poddar Independent Director finance, administration, human resources, and general management. He is a co-founder of VIGA Trade Solutions Pvt. Ltd. He is also a secretary General of Foundation EMDA South Asia. He has over 30 years Gagan Sinha Non-Executive of experience in international trade and business developments, supply Independent Director chain management and liaisoning with governmental & 22 nongovernmental authorities in the Energy Sector.  We Connect We Protect Quarterly & Financials Key Highlights- Q2 & H1FY25 We Connect We Protect ❑ Delton Cables reported yet another exemplary performance for the second quarter and the first half of FY2025. ❑ Delton reported a strong 94% Y-o-Y revenue growth for Q2 FY 25. Q2 revenue at ₹ 1752.89 million grew 22% Q-o-Q. ❑ For the first half of the year, revenue at ₹ 3191.3 million grew by an impressive 99%. ❑ Revenue from EPC segment, railways, and telecom / other segments contributed 44%, 46% and 10%, respectively during the Q2; and 40%, 45% and 15% for H1 respectively. ❑ Q2 FY25 EBITDA at ₹ 104.3 million increased by 26.9% Y-o-Y and 5.2% QoQ. EBIDTA for H1 at ₹ 203.6 million grew by 50.9%. EBIDTA margins for Q2 were at 6%; and for H1 were at 6.4%. ❑ PAT for Q2 FY25 at ₹ 84.9 million grew by a sharp 155% Y-o-Y and by 181% Q-o-Q. PAT for H1 at ₹ 115.1 million grew by 150% Y-o-Y. ❑ The current total order book as on September 30, 2024 stands at ₹ 2750 million. ❑ The board has approved setting up of an additional capacity (Plant III), at an Investment of ₹ 100 million. The proposed capacity expansion will cater to the emerging telecom sector. 24 Result Analysis- H1FY25 We Connect We Protect INR Million Revenue EBITDA & EBITDA Margin (%) PAT 3,191 8.4% 115 204 135 51% 150% 1,602 99% 6.4% 46 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 EBITDA Ebitda Margin 26 Result Analysis- Q2FY25 We Connect We Protect INR Million Revenue EBITDA & EBITDA Margin (%) PAT 1,753 9.1% 104 85 82 27% 154% 904 94% 6.0% 33 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 EBITDA Ebitda Margin 27 Profit & Loss Statement- Q2 & H1 FY25 We Connect We Protect INR Million Particulars Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Total income from Operations 1752.9 903.6 94.0% 3191.3 1602.0 99.2% Cost of Materials Consumed 1437.0 694.6 106.9% 2610.2 1245.0 109.7% Manufacturing Expenses 82.7 41.6 99.1% 144.3 73.6 96.1% Employee Benefits Expense 96.6 57.5 67.9% 169.0 103.5 63.2% Other Expenses 32.2 27.6 16.6% 64.1 45.0 42.6% Total Operative expense 1648.5 821.4 100.7% 2987.7 1467.1 103.6% EBITDA 104.3 82.2 26.9% 203.6 134.9 50.9% Finance Costs 64.3 46.1 39.5% 116.4 80.2 45.2% Depreciation & Amortisation 9.1 3.1 190.9% 14.8 6.2 141.0% PBT 30.9 33.0 -6.3% 72.3 48.6 48.9% Exceptional 102.9 0.0 102.9 0.0 Tax 49.0 -0.4 N.A 60.2 2.5 N.A PAT 84.9 33.4 154.3% 115.1 46.1 149.7% 28 Balance Sheet We Connect We Protect Particulars (INR million) H1 FY25 FY24 Fixed Assets 406.8 176.3 Other Assets 136.3 169.9 Sub-Total Non Current Assets 543.1 346.2 Inventories 1388.0 1157.0 Trade Receivables 1281.3 957.6 Cash & Cash Equivalents 122.0 84.8 Other current Assets * 128.3 126.8 Sub- Total Current Assets 2919.6 2326.2 Total Assets 3462.7 2672.4 Share Capital 86.4 86.4 Other Equity 742.3 627.0 Total Equity 828.7 713.4 Borrowings 1353.1 1131.4 Other Liabilities 137.4 13.2 Current Liabilities * 1143.5 814.4 Total Liabilities 3462.7 2672.4 29 Financials At A glance We Connect We Protect INR Million Revenue EBITDA Pat 311.7 146.6 4016.7 2738.8 195.6 1596.5 122.6 7.7 5.8 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Return Ratios W.Cap days 218 20.5% 142 138 16.1% 13.8% 8.6% 1.4% 1.0% FY22 FY23 FY24 RoCE RoE FY22 FY23 FY24 30  We Connect We Protect Mehul Mehta Director Email: [email protected] Contact Details: +91 98202 80325