Delton Cables Ltd Investor Presentation August 2024 PDF

To, Date: August 09,2024 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 SE...

To, Date: August 09,2024 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 ended June 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 VIKAS Digitally signed by VIKAS RAWAT RAWAT Date: 2024.08.09 19:00:50 +05'30' Vikas Rawat Company Secretary and Compliance Officer Encl : as above  We Connect We Protect Delton Cables Ltd Investor Presentation 1 August 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 improved to 76% INR 274 Cr in FY24 from 44% in 14 170 FY22 41 Targeting INR 144 Cr Focused INR 160 Cr 7 122 Customers & 35 17 Market Marketing & 10 Revenue increased offering 57 159 63 Analysis Monitoring 97 by 2.5x inFY24 Tailored 61 53 Practices from FY22 products FY22 FY23 FY24 Q1FY25 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. Cash Conversion cycle improved to 116 01 Rationalising Inventories by reducing SKUs days from 214 days in FY22 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 Debtors and focus on High rated EPC players. 51 56 Direct Sales to customers. 206 136 112 03 69 60 The company aims to maintain its working 52 Working capital cycle of 100-120 days over the time. FY22 FY23 FY24 capital Receivables Days Inventory days Payble days Net Working capital 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 Mr. Karati is an Ex- banker, with over 45 years of experience in the Banking, Financial, Legal & Secretarial field. He chairs the audit Non-Executive committee, Stake holder and NRC committee and ensures financial Achintya Karati transparency and compliance, and oversees risk management Independent Director practices and guidance on banking side. Mr Karati is also a board member of Sangam(India) Ltd. 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. Mr. Goel is Charmain of Dhampur Sugar. He is a Lifetime Achievement Awardee for his contribution in the sugar industry. He has served as the Non-Executive president of the Indian Sugar Mills Association. His ethos of social Vijay Kumar Goel Independent Director responsibility has always motivated the Company and continues to inspire our CSR endeavours. 22  We Connect We Protect Quarterly & Financials Key Highlights- Q1FY25 We Connect We Protect ❑ For Q1 FY25, Delton continued to maintain its growth trajectory. The company’s Q1 revenue at ₹ 1438 million grew 106% Y- o-Y and 8% Q-o-Q. During the past 4 quarters, Delton’s revenue has been growing at 20% CAGR. ❑ The sustained demand from EPC and railways segments, coupled with Delton’s carefully crafted product portfolio, ensured such a robust growth. ❑ Revenue from EPC segment, railways, and telecom / other segments contributed 37%, 44% and 19%, respectively during the quarter. On a year on year basis, revenue from Railways segment grew by 116%, followed by EPC segment which grew by 76%. ❑ Delton’s Q1 FY25 EBITDA at ₹ 99 million increased by 88% Y-o-Y and 8% QoQ. EBIDTA margins at 6.9% remained more or less steady. ❑ Profit after Tax for Q1 FY25 at ₹ 30 million grew by 138% Y-o-Y and declined by 52% Q-o-Q. ❑ The board has proposed a final dividend of 15% for FY2024, i.e. ₹ 1.5 per equity share of face value of ₹ 10 each. 24 Key Highlights- Q1FY25 We Connect We Protect ❑ Delton has debottlenecked its existing manufacturing facility to improve the capacity utilisation. During the last two years, Delton spent ₹ 85.05 million in debottlenecking and has managed to improve its capacity utilisation from 44% in FY22 to 76% in FY24. ❑ Working capital shows further improvement in FY24 over FY22/FY23 levels. Working capital days have further reduced to 138 days from 218 days in FY22 and 142 days in FY23. ❑ As communicated earlier, Delton is expanding manufacturing capacity by setting up a new plant for EPC cables. The Company has taken on lease a new Industrial property measuring 8650.069 sq mtr. at district Palwal, Haryana for expansion. The commercial production is expected to start in September 2024. ❑ During the quarter, Delton Cables received major orders worth ₹ 1770 million for the supply of power cables over the period of 2 years. With that, the current total order book as on June 30, 2024 stands at ₹ 2940 million. ❑ In July 2024, Delton Cables received credit rating upgrade by the credit rating agency, Informics Valuation And Rating Pvt. Ltd. Delton’s long term facilities got upgraded to IVR BBB/ Stable (IVR Triple B with Stable outlook) from IVR BBB-/ Stable (IVR Triple B Minus with Stable outlook); and short term facility got upgraded to IVR A3+ (IVR A Three Plus) from IVR A3 (IVR A Three). 25 Result Analysis- Q1FY25 We Connect We Protect INR Million Revenue EBITDA & EBITDA Margin (%) PAT 7.5% 6.9% 30 99 1,438 88% 138% 106% 53 698 13 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 EBITDA Ebitda Margin 26 Profit & Loss Statement- Q1FY25 We Connect We Protect INR Million Particulars Q1FY25 Q1FY24 YoY Total income from Operations 1438.4 698.5 105.9% Cost of Materials Consumed 1173.3 550.4 113.2% Manufacturing Expenses 59.6 32.0 85.9% Employee Benefits Expense 72.3 46.0 57.3% Other Expenses 34.0 17.4 95.5% Total Operative expense 1339.2 645.8 107.4% EBITDA 99.2 52.7 88.3% Finance Costs 52.0 34.1 52.8% Depreciation & Amortisation 5.7 3.0 89.3% PBT 41.5 15.6 165.8% Tax 11.2 2.9 289.8% PAT 30.2 12.7 137.7% 27 Balance Sheet FY24 We Connect We Protect Particulars (INR million) FY24 FY23 Fixed Assets 176.3 106.8 Other Assets 169.9 168.2 Sub-Total Non Current Assets 346.2 275.0 Inventories 1157.0 906.5 Trade Receivables 957.6 514.6 Cash & Cash Equivalents 84.8 50.0 Other current Assets * 126.8 98.5 Sub- Total Current Assets 2326.1 1569.5 Total Assets 2672.3 1844.4 Share Capital 86.4 86.4 Other Equity 627.0 480.7 Total Equity 713.4 567.1 Borrowings 1131.3 753.7 Other Liabilities 13.2 11.3 Current Liabilities * 814.4 512.3 Total Liabilities 2672.3 1844.4 28 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 29  We Connect We Protect Mehul Mehta Director Email: [email protected] Contact Details: +91 98202 80325