R R Kabel Limited has informed the Exchange about Investor Presentation
6th November 2023
Corporate Relationship Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001
National Stock Exchange of India Limited Exchange Plaza, Plot No. C-1, Block G, Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051
Script Code: 543981
Symbol: RRKABEL
Sub: Corporate Presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Dear Sir/Madam,
In accordance with Regula(cid:415)on 30 of SEBI (Lis(cid:415)ng Obliga(cid:415)ons and Disclosure Requirements) Regula(cid:415)ons, 2015, please find enclosed herewith the corporate presenta(cid:415)on of the Company.
Kindly take the same on your record.
Thanking you,
Yours sincerely,
For R R KABEL LIMITED
Himanshu Navinchandra Parmar Company Secretary and Compliance officer M. No. – F10118
Investor Presentation November 2023
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by RR Kabel Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
2
Successful IPO Listing
RR Kabel got Listed at a Valuation of ~ ₹ 13,682 Crs on 20th September, 2023
▪
▪
▪
▪
▪
September 2023
Listing done on BSE & NSE
IPO Price : Rs. 1035 per share
Listing Price: NSE ₹ 1,180 per share & BSE ₹ 1,179 per share
Listing day gain of ~14%
Objects of the Issue: Proceeds of Rs. 180 crores to
o Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institution
o General Corporate Purpose
Shareholding Pattern (As on 30th September 2023)
23.6%
5.0%
8.7%
62.7%
Promoters
DII
FII
Public
IPO Subscription
Category
Times Subscribed
QIB
NII
RII
Employee
Total
52.26x
13.23x
2.13x
2.69x
18.69 x
3
Company Overview
4
At Glance
Founded in 1999. 5th largest player in the Indian Wires and Cables(W&C) industry by value in FY23
w e i v r e v O
Electrical conglomerate present in 65 countries worldwide. Our products have 35 international certifications, distinguishing us in the Indian consumer industry
Integrated In-house manufacturing. Five facilities across India, Two for Wires & Cables and Three for Fast Moving Electric Goods (FMEG)
Business Segments
Fastest Growing among peers
11%
Revenue Mix (FY23)
89%
W&C FMEG
Rs 5,599 Cr Revenue (FY23)
43% Revenue CAGR (FY21-23)
14.2% ROE
15.6% ROCE
3,781 Dealers
3,598 Distributors
Pan-India Distribution Network*
As on 30th September, 2023
1,24,497 Retailers
3,26,214 Electricians
5
Our Growth Journey
RR Kabel has operating history of 20+ years
Business of Wires & Cables
Diversifying into FMEG
Trading -> Manufacturing
o Commencement of Operations; First manufacturing facility in Silvassa
o Established
manufacturing plant in Vadodara
Expanding Global Footprint
o Commencement of exports to the US o Amalgamation of Ram Ratna Electricals Limited along with acquiring manufacturing facility in Roorkee, Uttarakhand for Fans and Lights
o Commencement of
Switch Manufacturing
o Got listed on NSE & BSE
in Sep’23 with a premium of ~14%
2004
2018
2020
2022
1999
2011
2019
2021
2023
Backward Integration
o Manufacturing of PVC Compound in-house
o Investment by TPG
o Expansion into professional
lighting by acquiring Arraystorm and its facility located in Bengaluru
Added premium and mid- premium fans & lights by acquiring Luminous Home Electrical Business alongwith Gagret Facility
Strengthening FMEG Portfolio
Note: Years mentioned pertain to calendar years
6
Diverse Suite of Products
B2B to B2C Play across all Consumer Electrical Segments with Cross-Sell Opportunity
Wire & Cables (Revenue - 90%)
FMEG (Revenue - 10%)
H1FY24- Revenue contribution
7
Our Strength to Drive Success
Consumer Focused Brands
Well Recognized Consumer Brands
Large Scale Manufacturing
Technologically Advanced and Integrated Precision Manufacturing Facilities
Professional Leadership
Experienced and Committed Professional Management Team
Prudent Balance Sheet Management
Structured to support the entity's business goals and maximize financial performance
Large Consumer Electrical Industry Diverse Suite of consumer electricals products underpinned by focused R&D efforts with global certifications
Scaled B2C Business Scaled B2C business in the large and growing wires and cables industry
Expanding FMEG segment Well-positioned for growth in FMEG Segment
Global Presence Extensive domestic and global distribution network
8
Integrated Manufacturing Facilities
W&C: 100% In-House Manufacturing
Pan-India Facilities 5 Facilities: 2 for W&C + 3 for FMEG Shorter time to market & cost competitiveness
Quality & Reliability In-house manufacturing Backward integration
Automation in Manufacturing(1)
Robotic Rotor Machining
Automatic Paintshop
Digitized Rotor Inspection
Large Scale Operations
Annual Installed Capacity
W&C: 4.2mn ckm
Fans: 3.2mn units
Switches : 9.9mn units
Lights: 1.9mn units
(1) In Gagret facility
Waghodia
Capacity W&C- 2.3 Mn CKM, Switches- 9.9 Mn
Silvassa
Capacity W&C- 1.9 Mn CKM
Backward Integrated Key Raw Materials (PVC, LS0H, XLPE and Solar Cable Compund)
FMEG: 37% In-House Manufacturing
Roorkee Capacity Fans - 1.5 Mn, lights 1.8 Mn
Fans and lights
Bengaluru Capacity lights ( >0.1 Mn) Designer Customizable Lights
Gagret Capacity Fans - 1.7 Mn Premium Fans
9
Business Segments Wires & Cables (W&C)
10
Wires & Cables
Wires & Cables
Revenue
90* % Contribution
Facility
Waghodia & Silvassa
Annual Capacity
4.2Mn ckm
* H1FY24
Product Category
House wires, Industrial wires, Power cables & Special cables
11
Vast Product Basket of W&C
Wires
House Wires
Hea t Resistant Wi res
Fi re Resistant Wires
Low Smoke Zero Halogen Wi res
Cables
Power Cables
LT Power Ca ble
Applications
o Power Transmission o Power Distribution
Medi um & Hi gh Voltage Power Ca bles
Applications
o Residential Buildings o Commerical o Public
Si ngle & Mul ti Core Flexible Ca bl e
Applications
o Power Panels o Control Panels o Switchgears o Relay o Instrumentation Panels
Industrial Wires
Specialty Cables
Control Ca bles
Submersible Flat Ca ble
Da ta & Communication Ca bl es
Ins trumentation Cables
Sol ar Ca bles
o Control Panels o Production & Assembly Lines o Industrial Process Automation o Plant Engineering o Industrial Machinery o Robotic Technology
Fi re & Security Ca bles
Si l icon Rubber Ca bles
Auto Ca bles
Ba ttery Ca bles
Li ft & El eva tor Ca bles
Appl iance Wiring Ma teri al
Power Cord
12
Long-Term Industry Growth Drivers
INR748bn
Indian Wires & Cables Market (FY23)
40%
W&C share of Indian electrical industry (FY23)
13%
FY23 to FY27 CAGR
Indian Wires and Cables Market Poised for Strong Growth..
..Across all sub-sectors and a shift to branded players
W&C Market Size (INR Bn)
W&C Market Segmentation (FY23)
Branded Market Share (FY23)
748
FY23
1,200
FY27P
Communication Cable
Control & Instrumentation Cable
3%
15%
Housing Wires
33%
28%
72%
Bra nded
Unbra nded
Branded Market Share (FY27P)
Flexible & Specialty Cables
25%
25%
Power Cable (LT / HT / EHV)
20%
FY23-27 Category wise CAGR
14%
13% 13%
9% 13%
80%
Long-Term Growth Drivers in Place
Multiple drivers for growth across both B2C and B2B segments
Resilient Commercial Real Estate Sector
Rural Electrification
Increasing Share of Organized Sector
Govt Initiatives to boost production and exports
Source: Industry/Company Research
Continued Growth of Residential Real Estate Sector
Growth of New Age Sectors
13
Scaled B2C W&C Business…
RR Kabel is Well-Positioned in the Wires and Cables Segment…
Domestic
Exports
Fastest Growing Amongst Key Peers 43% vs. 27% RR Kabel vs. peers (FY21-23 CAGR)
Growing Market Share ~5% -> ~7% RR Kabel Organized W&C Market Share (FY15 -> 23)
One of India’s Leading W&C Exporters…
INR 12,702Mn FY23 Export Revenue
47% (FY21-23 CAGR)
…With a B2C Focused Portfolio
% B2C Revenue in W&C segment (FY23)
26%
Highest Share of B2C Revenue in Indian W&C industry
74%
B2C
B2B
Stronger Fundamental Drivers
Well-Recognized Brand
Comprehensive product portfolio
Certified Manufacturing facilities
Quality & Safe Products
Pan-India Distribution Network
Source: Industry/Company Research
14
Domestic Distribution Network
(As on Sep’23)
…With Headroom for Growth…
Pan India Presence
3,26,214 Electricians
3,598 Distributors
3,781 Dealers
1,24,497 Retailers
Presence on recognized e-commerce platforms Ecommerce Platforms
Source: Industry Research/Company Research
Reta ilers Network
124k+
225k
Peer
1
2
…and Multi-Year Initiatives in place
Project KaRRma
W&C
Phase I
Double market share and retail outreach in domestic house wires
Phase II
Increase micro and nano market reach
Project Lakshya
FMEG
Phase I
Grow and fans & lights segment through field sales officers
Phase II
Integration of Luminous Home Electricals Business
Factory-05
Office-16
Warehouse-25
15
Global Distribution Footprint
Product quality and global accreditations enabling growth
North America
Europe
Middle East
Asia Pacific
Largest Exporter of Wires & Cables from India
29%
~
Exports % of Revenue from Operations-Q2FY24
9%
~
Market Share of W&C Exports from India
✓ RR Kabel is one of India’s largest exporters of wires and cables from India with 09% market share of the exports market (as of FY23)
Exports W&C to
65
Countries
+116.4%
1,008
1,270
INR i n Crs
587
•
•
•
FY21
FY22
FY23
Source: Industry/ Company Research
During FY21 to H1FY24, it sold its products to 65 countries in North America, APAC, Europe and Middle East.
✓ Recurring B2C exports
Company exports a majority of its products under the brand ‘RR Kabel’ and manufactures under private labels for select customer
It has long-standing relationships with 10 distributors in these markets who cover the majority of its exports
✓ Direct sales to distributors
✓ Large number of global certifications enables exports to
multiple countries
✓ Well-positioned to benefit from the global shift to China
Plus 1 Policy
16
Wires & Cables – Performance
Revenue from Operations
Segment Profit before Tax and Interest
(INR Cr)
(INR Cr)
22.9%
19.6%
28.0%
9.0%
7.9%
7.1%
5.4%
9.0%
+96.8%
4,111
4,959
2,520
+23.6%
2,873
2,324
227
+55.0%
323
352
+104.8%
258
126
FY21
FY22
FY23
H1FY23
H1FY24
FY21
FY22
FY23
H1FY23
H1FY24
% Vol ume Growth
% Ma rgin
✓ Revenue from the Wire & Cable segment registered ~24% growth in H1 FY24 compared to H1 FY23.
✓ EBIT from the Wire and Cable segment doubled from Rs 126 cr to Rs 258 cr, demonstrating a remarkable growth of over 100%, on the back of
margin expansion.
17
Business Segment Fast Moving Electrical Goods (FMEG)
18
Fast Moving Electrical Goods (FMEG)
FMEG
ś
* H1FY24
Revenue
10* % Contribution
Facility
Roorkee, Bengaluru & Gagret
Annual Capacity
Fan- 3.2 Mn units Lights- 1.9mn units
Product Category
Fans, Lighting, Switches, Switchgears & Appliances
19
…through a Wide FMEG Product Portfolio…
Fans
Lighting
Ceiling Fans
Table Pedestal & Wall Fans
Switches
Exhaust Fans
Panel Lights
Bulbs
Down Lights
Streetlights
Appliances
Modular Switches
MCB
DB
Water Heater
Room Heater
Irons
Coolers
Premium Products
20
FMEG Industry Opportunity
INR1,064bn
Indian FMEG Market (FY23)
8%
FY23 to FY27E CAGR
77% Coverage of FMEG industry
INR1,064bn FMEG Market Opportunity with Growth across all Sub-categories…
Fans
INR 139bn
9%
Lighting
INR 336bn
14%
Switch & Switchgear
Home & Kitchen Appliances
INR 292bn
9%
INR 297bn
9%
91%
95%
67%
75%
82%
90%
81%
85%
Market Size (FY23)
Branded Market CAGR (FY23- 27P)
Branded Market Share (FY23- >27P)
…Driven by Premiumization and Shift to Branded Sector
Fans
Lighting
Switch & Switchgear
Home & Kitchen Appliances
•
Increase in replacement demand
• Premiumization trend
• Rising demand for energy efficient
fans
Source: Industry/Company Research
• LED segment driving growth
• Demand shifting to modular
• Reducing imports / ‘Make in India’
boosting demand
switches
• Enhanced safety standards
• Higher replacement demand from
• LV switchgears led demand
urban population
(residential segment)
• Rising disposable incomes
• Changes in demography
• Consumer behavior
• Changing Technology
21
Well-Poised for Growth in the FMEG Segment
RR Kabel has built a wide FMEG portfolio and has a 3-Phased Journey to Capture Value
Building Foundation
Acquire and Consolidate
Accelerate
FMEG Revenue (INR Crs)
+135.7%
648
194
FY20
204
FY21
275
FY22
Post COVID Impact
Accelerate growth of FMEG business:
FY23
• Leverage Well-recognized Brand
Acquired Arraystorm Lighting business in FY’20
• The company acquired the LED Lights Business
Delivered 133.3 % Growth in FY23 on back of
• Extensive Pan-India Distribution Presence • Committed and experienced professional management team
Source: Industry Research, Company Information
Acquired Luminous Home Electric business in May’22
• Business Continuity maintained • Synergies through cost optimization • Develop “RR Signature” brand for premium FMEG products
• Focus on Premiumisation
• Grow Omni-channel presence
• Focus on Achieving Operational
Excellence
22
FMEG – Performance
Revenue from Operations
Segment Profit before Tax and Interest
(INR Cr)
(INR Cr)
+135.5%
648
275
279
+19.6%
334
+34.9%
204
FY21
FY22
FY23
H1FY23
H1FY24
-30
-30
-39
-37
FY21
FY22
-70 FY23
H1FY23
H1FY24
Luminous HEB acquisition impact
✓ Revenue from FMEG segment registered a growth of ~20% in H1 FY24 over H1 FY23 on the back of the product mix, and increase in
contribution from HEB which was acquired last year in May’22
✓ EBIT improved due to increase in the gross margin which is partly off set by indirect expenses ✓ FMEG business segment continue to remain negative, due to higher fixed cost and lower capacity utilization
23
Strategy to Expand FMEG segment
Clear strategy in place to expand FMEG revenues
Manufacture Value Added Products
Presence Across Price Points
Exclusive FMEG brand
• Premium Decorative Fans, Downlight
Panels, Switchgears
• Higher Margin value added products
• Strengthen presence across economy, premium, mid-premium segments Increase revenue from premium products
•
• Building ‘RR Signature’ brand for
premium FMEG products.
Integrate Acquisitions
Realize synergies to optimize costs • Logistics • Promotions • Manpower
Expand Product Portfolio
• 45 products under development as on
Sep 30,2023
• Switches & switchgear for residential
& commercial segment
Grow Distribution Network
• Expand distribution network for FMEG • Strengthen omni-channel capabilities •
Increase counter shares in top industry outlets
24
Board of Directors- Renowned promoter group, investor and independent director oversight
Tribhuvanprasad Rameshwarlal Kabra
Executive Chairman
• Promoter of the company •
Extensive experience in the electrical industry
Shreegopal Rameshwarlal Kabra
Managing Director
• Promoter of the company •
Extensive experience in the electrical industry
•
Former President of IEEMA
Mahendrakumar Rameshwarlal Kabra
Joint Managing Director
• Promoter of the company •
Extensive experience in the electrical industry
Mitesh Daga
Non- Executive Nominee Director
• Associated since Sept 2018 • Board member at Manipal
Health Enterprises Pvt. Ltd. and Sai Life Sciences
Bhagwat Singh Babel
Vipul Sabharwal
Jyoti Davar
Ramesh Chandak
Independent Director
• Associated since Aug 2017 • Board member at Secure Meters •
Former Board Member of IEEMA1
Independent Director
• Associated since Aug 2022 • Prior experience at Luminous,
Whirlpool and Gillette
Independent Director
• Appointed in Dec 2022 • Current Deputy Secretary
General in FICCI
Independent Director
• Recently appointed •
Erstwhile President of IEEMA(1)
25
Professional Management Team- Extensive Experience
Dinesh Aggarwal
Rajesh Babu Jain
Sanjay Narnarayan Taparia
Vivek Abrol
CEO
35 years
CFO
28 years
CEO, International Business
CEO, FMEG
32 years
22 years
Shishir Sharma
Satishkumar Anandilal Agarwal
Himanshu Navinchandra Parmar
Vinod Parur
Chief Sales Officer, Wires & Cables
Chief Strategy Officer
Company Secretary and Compliance Officer
Chief Human Resources Officer
32 years
33 years
15 years
22 years
Total years of experience
26
Testimony to Our Performance
Padma Shri Awardee Shree Rameshwarlal Kabra Felicitated At The Society Achievers Giving Back Forum – 2023
The Best Practices Award In The Industry Mentor Support Category By The Jaipuria Institute Of Management- 2023
RR Kabel Wins The ‘Best Construction & Infrastructure Brand In The Electrical Solutions Sector – ET Infra Focus Summit & Awards- 26th Sept 2023
Padma Shri Awardee Shree Rameshwarlal Kabra Felicitated With UDC- Hurun India Star Of Mumbai Award- 2023
Trailblazer HR Initiative Award Of The Year-2023
Great Place To Work- 2023
RR Kabel Wins The ‘Best Brand In Building Material & Fittings’ – ET Infra Focus Summit & Awards-2022
All India Kaizen Competition 2021 – 2022
First Runners-up In The Largest Stall Category At Elecrama 2018
Mr Rameshwarlal Kabra Awarded The Padma Shri Award- 2018
E4M Pride Of India – The Best Of Bharat Awards 2022
Secured A Gold Trophy In The “Safety Concepts Case Study Contest” On “Strategies To Prevent Workplace Accidents”- 2022
27
R&D Certification & Innovation
Innovative and quality products with multiple industry-first launches
Innovation Team
35 International Product Certifications
60 Focused on R&D
22 focused on R&D for FMEG
Innovation Leader 1st to introduce Low Smoke Zero Halogen Insulation Technology (“LS0H”) in India
Facilitating Import Substitution Supplying cable harness to Swiss textile machinery manufacturer in India
Investing in Upcoming Trends
EV Charging Cables, Smart Fans and Designer Lights
Multiple Product Launches
W&C
FMEG
12
116
FY21
19
153
FY22
13
75
FY23
Canada
Europe
Europe
G reat Britain
Europe
India
Europe
U SA
U SA
G e rmany
Enables RR Kabel to export to regulated jurisdictions
Focus on Quality and Safety
NABL Certified Lab
Capable of performing 694 Tests
28
Industry Growth Drivers
Public and private investment outlay in infrastructure
Various policy interventions have been undertaken by GoI in the infrastructure sector to boost India’s GDP and economic growth
Policy reforms promoting production, exports and ease of doing business Various policy reforms have been incorporated by GoI to boost production, exports and promote ease of doing business
Urbanization and smart cities
Key trend fueling India's economic growth (India is the second largest urban system in the world)
Digitalization
Increased pace of technology adoption and digitization across enterprises
FDI and PE investment in real estate sector
Safety standards
Increase of foreign investments and economic expansion in the real estate sector
Branded player has become a proxy for reliable and functional aspects over an unbranded player
Continued growth of residential real estate sector Every newly built residential unit implies not only increased demand for W&C and FMEG products like light, fans and switches, but also creates an installed base for replacement demand for these products
Resilient commercial real estate sector
Office spaces are a strong demand support for the consumer electrical industry, largely defined as institutional demand for various products offered by the consumer electrical industry
Rural electrification Government initiatives in housing and infrastructure sectors like (“PMAY”) and (“NMP”) will likely increase the demand for electrical products in India
Push towards renewable energy
Which is expected to increase the demand for W&C in the global market, which in turn would provide a great opportunity for Indian exports
29
Q2 & H1 FY24 – Financial Results
30
Q2FY24 Key Performance Metrics
4 2 Y F 2 Q
4 2 Y F 1 H
Revenue from Operations
EBITDA & EBITDA Margin (%)
PAT & PAT Margin (%)
INR in Crs
4.6%
7.1%
7.5%
2.6%
4.7%
4.6%
+17.7%
1,597.3
1,609.7
1,367.2
+92.7%
113.6
121.1
+111.7%
74.3
74.1
62.8
35.0
Q2FY23
Q1FY24
Q2FY24
Q2FY23
Q1FY24
Q2FY24
Q2FY23
Q1FY24
Q2FY24
Revenue from Operations
EBITDA & EBITDA Margin (%)
PAT & PAT Margin (%)
5,599.2
5.8%
323.3
3,207.0
2,603.1
+23.2%
3.9%
7.3%
3.4%
2.0%
4.6%
234.7
148.4
189.9
102.6
+128.7%
53.2
FY23
H1FY23
H1FY24
FY23
H1FY23
H1FY24
FY23
H1FY23
H1FY24
+178.9%
31
Operational Highlights
Q2 FY24 Revenue-Mix (Domestic Vs Exports)
H1 FY24 Revenue-Mix (Domestic Vs Exports)
Working Capital Management (in Days)
74%
26%
71%
29%
73%
72%
27%
28%
Q2FY23
Q2FY24
H1FY23
H1FY24
Domestic
Export
Q2 FY24 Revenue-Mix (Business Segment)
H1 FY24 Revenue-Mix (Business Segment)
10%
10%
88
63
75
65
Net Working Capital (in Days)
63
63
39
14
36
24
35
33
90%
90%
W&C
FMEG
Mar-22
Mar-23
Sep-23
Inventory
Debtors
Creditors
32
Consolidated Profit & Loss Statement – Q2 & H1 FY24
Profit & Loss Statement (INR. Crs)
Q2 FY24
Q2 FY23
Revenue from Operations
Cost of Materials Consumed
Purchase of stock-in-trade
Changes in Inventories of Finished Goods and Work in Progress
Gross Profit
GP %
Employee Benefits Expense
Other Expenses
Share of Profit of Joint Venture (net of tax)
EBITDA
EBITDA %
Other Income
Depreciation and Amortisation Expense
EBIT
Finance Costs
PBT
Total Tax Expense
Profit for the period
PAT %
1,609.7
1,257.3
110.7
-77.9
319.5
19.9%
80.3
118.4
0.2
121.1
7.5%
14.8
16.6
119.2
14.2
105.0
31.0
74.1
4.6%
1,367.2
968.1
96.1
64.8
238.3
17.4%
67.9
105.9
-1.6
62.8
4.6%
9.5
15.0
57.4
9.6
47.7
12.7
35.0
2.6%
Y-o-Y
17.7%
34.1%
92.7%
107.9%
120.1%
111.7%
Q1 FY24
1,597.3
1,197.1
Q-o-Q
0.8%
H1 FY24
H1 FY23
3,207.0
2,454.4
2,603.1
2,008.2
92.3
16.1
291.8
18.3%
76.8
102.1
0.7
113.6
7.1%
16.3
16.1
113.8
14.4
99.4
25.0
74.3
4.7%
9.5%
7.0%
4.8%
-0.3%
203.1
-61.8
611.3
19.1%
157.0
220.4
0.8
234.7
7.3%
31.0
32.7
233.0
28.6
204.4
56.0
148.4
4.6%
192.6
-29.3
431.7
16.6%
129.1
198.2
-1.7
102.6
3.9%
16.9
29.4
90.1
17.7
72.4
19.2
53.2
2.0%
Y-o-Y
23.2%
41.6%
128.7%
158.8%
182.5%
179.3%
33
Consolidated Balance Sheet
EQUITY & LIABILITIES (INR. Crs)
Equity Share Capital Instrument entirely equity in nature Other Equity Total Equity Financial Liabilities (i)Borrowings (ii) Lease liabilities (iii) Other Financial Liabilities Provisions Other non-current liabilities Deferred Tax Liabilities (Net) Total Non-Current Liabilities Financial Liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (a) Total outstanding dues of micro enterprises and small enterprises (b) Total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other Financial Liabilities Provisions Income tax liabilities (net) Other Current Liabilities Total Current Liabilities TOTAL EQUITY & LIABILITIES
Sep-23
56.4 - 1661.1 1,717.6
- 63.3 2.2 19.7 0.0 22.2 107.5
369.2 7.6
25.4
387.4
123.7 20.8 9.8 65.8 1,009.8 2,834.8
Mar-23
47.8 415.2 956.7 1,419.7
26.9 56.4 2.1 14.1 0.0 14.9 114.4
489.0 8.2
45.9
394.2
37.8 22.2 6.4 95.9 1,099.6 2,633.6
ASSETS (Rs. Crs)
Property, Plant and Equipment
Right -of- use Assets Intangible Assets Under Development Investment accounted for using equity method Capital Work-in-progress
Other Intangible Assets Financial Assets Investments (i) (ii) Other Financial Assets
Income Tax Assets (Net) Loan Other Non-Current Assets Total Non-Current Assets Inventories Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other current financial assets Other Current Assets Total Current Assets TOTAL ASSETS
Sep-23
Mar-23
463.2 66.8 0.0 20.1 71.4 4.4
92.2 6.0 0.6 0.2 34.9 759.7 922.6
237.3 625.7 12.6 116.5 0.5 26.4 133.5 2,075.1 2834.8
448.8 61.8 0.0 19.6 43.6 6.5
58.1 3.6 11.8 0.3 33.3 687.5 860.2
284.9 591.9 31.0 50.0 0.1 9.0 119.0 1,946.1 2,633.6
34
Consolidated Cash Flow Statement
Particulars (INR in Cr)
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Add: Net effect of exchange gain on cash and cash equivalents
Cash and cash equivalents as at 30th September’23
Sep-23
204.4
45.0
249.4
-178.6
70.9
-37.5
33.4
17.2
-69.0
-18.4
31.0
-
12.6
Sep-22
72.4
59.4
131.8
151.6
283.4
-15.7
267.7
-143.0
-130.9
-6.1
12.3
-
6.2
35
Our Focus on Environmental, Health, Safety and Sustainability Initiatives
Focus on sustainability & responsible growth
Community Development
Promoting Green Energy
Conserving Water
Kabel Star Scholarships for electricians’ children
1.45MW of solar capacity & 3.8 MW of wind solar hybrid (1) Fulfilling ~59% of contracted demand for electricity(2)
Recharging groundwater through Rainwater harvesting for 34% rainwater received in factory catchment area(2)
Mission RRoshni Integrated program for education, skill development and female empowerment
1st company in India to launch Environment friendly wires & cable products(3)
BLDC fans portfolio for energy saving
“Zero” Waste Discharge Initiatives
Note: (1) 1.2 MW for Waghodia Facility and 0.25 MW for Silvassa Facility of installed rooftop capacity for solar energy as of December 31, 2022 (2) For Waghodia Facility, as on June 30, 2023. (3) Products compliant with REACH
36
Corporate social responsibility (CSR)
Mission RRoshni is RR Kabel’s endeavour to achieve an empowered and educated India. We are dedicated towards making a positive and lasting change in the lives of rural India.
Key Activities: 2022-23
Training and development program for teachers/Anganwadi & Vivekananda Kendra
Construction of Rural Employment Training Centre Building – Jarangloi, Odisha Construction of Girls Hostel at Pune
o One Teacher School – Informal Primary Education: 900 schools o o o Orphanage & Home for Juvenile Delinquents, Baroda o o
Promoting Education Rural Development
Orphanage & Home for Juvenile Delinquents, Baroda
Airoli Girls Hostel
Friends of Tribal Society
37
Corporate social responsibility (CSR)
Other Key Activites
EKAL GRAMOTHAN FOUNDATION RR Gramothan Training & Research Center (GRC Jarangloi, Sundargarh, Orissa)
CTL (Computer training lab)
o o WEC (Women Empowerment center) o Organic Farming o Nutrition Garden o o o o
Electrical Wiring & Home Appliances Training Kisan Mela Plantation Sub Tailoring Center
38
Advertisement - Campaigned
Multiple ATL and BTL initiatives to build a connect with key consumers and strengthening brand
Multi-Pronged Approach to Increase Brand Awareness
Outdoor Advertising
Ad Campaigns with Broad Reach
Strategically placed ads for high visibility
Ad placement to emphasize Safety & Trust
Engaged a leading Bollywood actor to associate as our brand ambassador
Sponsoring popular sports to increase visibility
Building Connect with Electricians through Physical and Digital Marketing Initiatives
Loyalty Management Programs
#WireKaFireTest
Fire test videos
Kabel Nukkad, Kabel Shop and Kabel Mela
Kabel Link
Kabel Star
Reward Scheme
RR Connect App
Social & cultural programs & Product Demos
Product portfolio education
Scholarships to Electrician’s children
Schemes for retailers and electricians
Loyalty management app
400k+ downloads
39
Advertisement
Brand Hoardings
Exhibition
Our Brand Ambassador
Gate Branding
Kabel Mela
40
RR Kabel’s Strengths will Continue to Drive Success…
TAM
Large Addressable Market + Strong Structural Drivers
Distribution
Pan-India Distribution + Global Footprint
Brand
Well-Recognized Consumer Brand +
Operating History of 20+ years
Diverse Products
Wide Range of Wires & Cables + FMEG Products
Execution
Experienced Promoters + Professional
Management
Quality & Reliability and In-house
Dynamic product quality supported by In-house backward integrated
Manufacturing Capabilities
manufacturing capabilities
41
Annexure
42
www.rrkabel.com
Performance in Charts
Revenues
EBITDA & EBITDA %
PAT & PAT %
INR in Crs
8.5%
7.0%
5.8%
5.0%
4.9%
3.4%
+43%
4,385.9
5,599.2
2,723.9
+18%
307.4
323.3
231.2
+18%
213.9
189.9
135.4
FY21
FY22
FY23
FY21
FY22
FY23
FY21
FY22
FY23
RoCE (%)
17.4%
15.6%
13.5%
RoE (%)
18.6%
13.9%
14.2%
Debt to Equity (x)
0.48
0.42
0.36
Mar-21 Mar-22 Mar-23
Mar-21 Mar-22 Mar-23
Mar-21 Mar-22 Mar-23
43
Historical Consolidated Profit & Loss Statement
Particulars (INR. Crs)
Revenue from Operations
Cost of Materials Consumed
Purchase of stock in trade
Changes in Inventories of Finished Goods and Work in Progress
Gross Profit
GP %
Employee Benefits Expense
Other Expenses
Share of Profit of Joint Venture (net of tax)
EBITDA
EBITDA %
Other Income
Depreciation and Amortisation Expense
EBIT
Finance Costs
PBT
Total Tax Expense
Profit for the year
PAT %
FY23
5,599.2
4,369.8
368.9
-162.9
1,023.5
18.3%
264.2
437.0
0.9
323.3
5.8%
34.4
59.6
298.1
42.1
256.0
66.1
189.9
3.4%
FY22
4,385.9
3,575.5
156.6
-124.2
778.0
17.7%
188.9
285.9
4.2
307.4
7.0%
46.3
46.1
307.6
23.3
284.4
70.4
213.9
4.9%
FY21
2,723.9
2,173.2
129.9
-153.8
574.7
21.1%
148.3
196.2
1.1
231.2
8.5%
22.0
44.8
208.5
27.1
181.4
46.0
135.4
5.0%
44
Historical Balance Sheet
EQUITY & LIABILITIES (INR. Crs)
Equity Share Capital Instrument entirely equity in nature Other Equity Total Equity Financial Liabilities (i)Borrowings (ii) Lease liabilities (iii) Other Financial Liabilities Provisions Other non-current liabilities Deferred Tax Liabilities (Net) Total Non-Current Liabilities Financial Liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (a) Total outstanding dues of micro enterprises and small enterprises (b) Total outstanding dues of creditors other than micro enterprises and small enterprises (iv) Other Financial Liabilities Provisions Income Tax Liabilities (Net) Other Current Liabilities Total Current Liabilities TOTAL EQUITY & LIABILITIES
Mar-23
47.8 415.2 956.7 1,419.7
26.9 56.4 2.1 14.1 0.0 14.9 114.4
489.0 8.2
Mar-22
23.9 415.2 811.2 1,250.3
Mar-21
23.9 415.2 607.5 1,046.6
59.3 8.2 0.0 7.2 0.0 13.1 87.8
461.8 3.3
71.3 5.3 0.0 6.0 0.0 7.9 90.5
427.4 3.1
45.9
11.1
9.3
394.2
156.8
104.2
37.8 22.2 6.4 95.9 1,099.6 2,633.6
24.0 14.0 0.0 41.5 712.5 2,050.6
16.5 5.5 0.0 12.0 578 1,715.1
ASSETS (INR. Crs)
Property, Plant and Equipment
Right -of- use Assets Intangible Assets Under Development Investment accounted for using equity method Capital Work-in-progress
Other Intangible Assets Financial Assets Investments (i) (ii) Other Financial Assets
Loan Income Tax Assets (Net) Other Non-Current Assets Total Non-Current Assets Inventories Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Other current financial assets Other Current Assets Total Current Assets TOTAL ASSETS
Mar-23
Mar-22
Mar-21
448.8 61.8 0.0 19.6 43.6 6.5
58.1 3.6 0.3 11.8 33.3 687.5 860.2
284.9 591.9 31.0 50.0 0.1 9.0 119.0 1,946.1 2,633.6
383.7 11.1 0.6 21.6 42.3 3.7
40.6 2.2 0.1 13.4 6.6 525.8 709.6
205.5 517.1 12.3 0.0 0.2 11.9 68.2 1,524.9 2,050.6
386.0 8.1 0.5 17.1 6.7 5.3
23.5 1.6 0.1 5.2 14.3 468.4 534.1
196.0 420.4 8.4 0.1 0.6 3.5 83.7 1,246.7 1,715.1
45
Consolidated Cash Flow Statement
Particulars (INR in Cr)
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Add: Net effect of exchange gain on cash and cash equivalents
Cash and cash equivalents as at 31st March
Mar-23
Mar-22
Mar-21
256.0
102.6
358.6
153.4
512.0
-58.2
453.7
-333.5
-101.5
18.7
12.3
-
31.0
284.4
62.5
346.9
-175.4
171.4
-73.3
98.2
-62.7
-31.6
3.9
8.4
-
12.3
181.4
73.0
254.5
-283.7
-29.2
-41.9
-71.1
-5.9
74.1
-2.8
11.2
-
8.4
46
Thank You
R R Kabel Limited
CIN: U28997MH1995PLC085294
Name – Pratik Agarwal Title – GM - Corporate Affairs & Investor Relations Email – investorrelations.rrkl@rrglobal.com
Mr. Irfan Raeen +91 9773 778669 Irfan.raeen@linkintime.co.in
Mr. Ronak Jain +91 9820 950544 Ronak.Jain@linkintime.co.in