Dynamic Cables Limited — AGM Information 2024

Aug 1, 2024

Naina Digitally signed by Naina Gupta Date: 2024.08.01 11:58:28 +05'30' Gupta

Dynamic Cables Limited

Igniting The Future

AGM Presentation

==> picture [391 x 540] intentionally omitted <==

==> picture [125 x 36] intentionally omitted <==

Table of CONTENT

• About Us

• Financial Overview

• Way Ahead

• Management

• Growth with Responsibilities

www.dynamiccables.co.in

==> picture [452 x 350] intentionally omitted <==

ABOUT US

==> picture [291 x 276] intentionally omitted <==

==> picture [80 x 24] intentionally omitted <==

OVERVIEW

Leading

Manufacturer and Supplier of Power Cables in India

Product Approvals

With all the major utilities & end user

Infrastructure

3 Manufacturing facilities situated at Jaipur & Reengus

==> picture [44 x 43] intentionally omitted <==

Track

Record 38+ Years

Listed On

NSE and BSE

==> picture [36 x 34] intentionally omitted <==

Research & Development

Dedicated labs for quality testing and new product development

==> picture [45 x 46] intentionally omitted <==

CAGR Since Listing (Dec 2017)

Sales 14% EBITDA 26% PAT 31%

==> picture [46 x 37] intentionally omitted <==

==> picture [37 x 35] intentionally omitted <==

ROCE ROE 21.5% 19.3%

==> picture [34 x 34] intentionally omitted <==

Export

40+ Countries Served

==> picture [15 x 54] intentionally omitted <==

04

==> picture [54 x 191] intentionally omitted <==

==> picture [80 x 24] intentionally omitted <==

EVOLUTION

==> picture [101 x 101] intentionally omitted <==

----- Start of picture text -----

2020-2024
----- End of picture text -----

==> picture [101 x 101] intentionally omitted <==

----- Start of picture text -----

2005-2009
----- End of picture text -----

==> picture [101 x 101] intentionally omitted <==

----- Start of picture text -----

2010-2019
----- End of picture text -----

==> picture [100 x 101] intentionally omitted <==

----- Start of picture text -----

1986-2005
----- End of picture text -----

• Migration to BSE mainboard & Listed on NSE

• Started Manufacturing LV cables.

• BSE SME Listing

• Inception of Dynamic Engineers as a Partnership Firm

• Greenfield expansion of 3[rd] manufacturing plant at Reengus

  • Brownfield Expansion in Reengus Plant

• Forayed in exports

• Started manufacturing super enameled & DPC wires

• Greenfield expansion of 2[nd] manufacturing plant at Jaipur

  • Preferential allotment of ~Rs 96 Crs to select Institutions and HNIs

• Started manufacturing HV cables

• Diversified into Overhead conductors

Revenue Journey

==> picture [752 x 139] intentionally omitted <==

----- Start of picture text -----

13 Years CAGR - 15% 768
669
564
527
429
357 343
300
197 268
176 260
128 110
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [16 x 54] intentionally omitted <==

05

==> picture [80 x 24] intentionally omitted <==

COMPETENCIES

==> picture [808 x 389] intentionally omitted <==

----- Start of picture text -----

Focused Team: Infrastructure: Clientele: De-Risking:
Young and focused promoter along World Class technology Integrated Longstanding relationships with Strong Product Design Focus on
with a sound and well aligned infrastructure with large large and diversified customer adding a range of value-added
management team of qualified & manufacturing capacities resulting in base located in India and across products through innovative
experienced professionals under an operating and cost efficiencies. Each 40+ international markets. We manufacturing processes.
articulated organizational structure facility is fitted with latest equipment are a customer centric
driving the execution engine and state-of the-art technology organization
Research &
Marketing: Strong Domestic &
Development:
Market Intelligence and dedicated Export Presence:
Continuous focus on R&D
sales and customer service teams Widespread Presence in both
for quality testing and
which helps to engage closely with Domestic and Export Markets
product development as per
customer’s procurement teams for Supplying to Government and
market demand and trends
real time market updates. Private players
----- End of picture text -----

==> picture [16 x 54] intentionally omitted <==

06

==> picture [80 x 24] intentionally omitted <==

PRODUCT RANGE

==> picture [150 x 229] intentionally omitted <==

==> picture [150 x 229] intentionally omitted <==

==> picture [155 x 228] intentionally omitted <==

==> picture [146 x 228] intentionally omitted <==

==> picture [150 x 228] intentionally omitted <==

==> picture [928 x 192] intentionally omitted <==

==> picture [16 x 54] intentionally omitted <==

07

==> picture [80 x 24] intentionally omitted <==

GLOBAL SALES FOOTPRINT

==> picture [54 x 191] intentionally omitted <==

1. Afghanistan	22. Mauritania
2. Australia	23. Mauritius
3. Bangladesh	24. Mozambique
4. Benin	25. Myanmar
5. Bhutan	26. Nepal
6. Burkina	27. Nigeria
7. Democratic	28. Philippines
Republic of Congo	29. Rwanda
8. Egypt	30. Senegal
9. Ethiopia	31. Sierra Leone
10. Gabon	32. South Africa
11. Gambia	33. Sri Lanka
12. Ghana	34. Syria
13. Guinea Bissau	35. Tanzania
14. Iraq	36. Togo
15. Jordan	37. Trinidad &
16. Kenya	Tobago
17. Laos	38. Uganda
18. Liberia	39. USA
19. Libya	40. Yemen
20. Malawi	41. Zambia
21. Mali	42. Zanzibar

==> picture [576 x 359] intentionally omitted <==

==> picture [16 x 54] intentionally omitted <==

08

==> picture [80 x 24] intentionally omitted <==

Marquee Clients and Certifications

==> picture [54 x 191] intentionally omitted <==

==> picture [612 x 223] intentionally omitted <==

==> picture [220 x 220] intentionally omitted <==

----- Start of picture text -----

You don't onlu but a cable
with DYNAMIC you but
of TRUST & RELIABILITY
Years
----- End of picture text -----

Standards Product Tested from globally Compliance recorganized NABL Accredited Labroratories Quality Certifications A GreenCo Bronze rated company from CII Godrej GBC

==> picture [309 x 44] intentionally omitted <==

==> picture [41 x 49] intentionally omitted <==

==> picture [40 x 49] intentionally omitted <==

==> picture [41 x 49] intentionally omitted <==

==> picture [38 x 45] intentionally omitted <==

==> picture [34 x 39] intentionally omitted <==

==> picture [16 x 54] intentionally omitted <==

09

FINANCIAL OVERVIEW

==> picture [291 x 276] intentionally omitted <==

==> picture [80 x 24] intentionally omitted <==

KEY FINANCIAL HIGHLIGHTS

==> picture [229 x 185] intentionally omitted <==

----- Start of picture text -----

Revenue
768
669
564
428
342
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
----- End of picture text -----

Operating Margins %

==> picture [140 x 16] intentionally omitted <==

----- Start of picture text -----

Operating Margins
----- End of picture text -----

==> picture [208 x 137] intentionally omitted <==

----- Start of picture text -----

10.5% 10.6%
10.1%
9.4%
7.5%
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
----- End of picture text -----

==> picture [203 x 128] intentionally omitted <==

----- Start of picture text -----

77.3
62.8
59.8
45.2
25.6
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
----- End of picture text -----

==> picture [507 x 187] intentionally omitted <==

----- Start of picture text -----

ROCE Debt/Equity Ratio
23.8%
22.3% 1.08x.
21.5% 1.00x
17.0%
0.56x
11.0% 0.52x
0.46x
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
----- End of picture text -----

==> picture [229 x 186] intentionally omitted <==

----- Start of picture text -----

PAT
37.8
30.9 31.0
18.3
9.9
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
----- End of picture text -----

==> picture [16 x 54] intentionally omitted <==

Credit rating CRISIL A- (Long Term ) IND A- (Long Term) Crisil A-Credit Rating: Ind Ratings A- CRISIL A2+ (Short Term) IND A1 ( Short Term)

11

==> picture [47 x 99] intentionally omitted <==

PRODUCT MIX

Revenue Mix : Moving towards value added products Evolving with company’s technical capabilities

==> picture [337 x 228] intentionally omitted <==

----- Start of picture text -----

8.8% 8.8 8.7% 14.5% 4.3% 8.5%
2.5%
1.4% 2.7%
29.8%
29.8%
39.8%
38.3%
33.5%
58.9%
51.4% 53.0% 50.6% 63.4%
FY20 FY21 FY22 FY23 FY24
HV Cables LV Cables Railway Signaling Conductors
cables
----- End of picture text -----

==> picture [54 x 191] intentionally omitted <==

KEY HIGHLIGHT

Shift of focus towards high value add HV Cables , 50%+ contribution Significant decline in commoditized product sales

Railway signaling cables and specialty product manufacturing, is expected to contribute significantly in future growth

CUSTOMER MIX

Revenue Mix : Moving towards quality conscious customers Evolving with rise of private Discoms & turnkey EPC players

==> picture [338 x 150] intentionally omitted <==

----- Start of picture text -----

78.3% 74.8%
65.6%
66.2% 64.5%
17.0% 22% 23.2%
22.8%
13.7%
FY20 FY21 FY22 FY23 FY24
Government Private Export
----- End of picture text -----

KEY HIGHLIGHT

Export picked up in FY24, contribution increased significantly to 12% Focus on high quality customers, in Private, Government and Exports Believe in partnering with customers

==> picture [16 x 54] intentionally omitted <==

12

www.dynamiccables.co.in

BROWNFIELD EXPANSION

BROWNFIELD EXPANSION COMPLETED IN FY24

==> picture [58 x 68] intentionally omitted <==

==> picture [58 x 68] intentionally omitted <==

5,000 KMS Rs. 20 Crs. Capacity expansion of cables and Investment towards specialty conductors depending capacity expansion , upon their specifications. excluding land

==> picture [93 x 13] intentionally omitted <==

----- Start of picture text -----

25,000 KMS
----- End of picture text -----

25,000 KMS FY 2023-24 Total capacity for various HT, LT Capacity expansion cables and specialty conductors that completed in fiscal year can be produced annually at its Reengus plant

==> picture [16 x 54] intentionally omitted <==

13

Q1FY25 HIGHLIGHTS

==> picture [80 x 24] intentionally omitted <==

Top-line (Revenue)

Key operational highlights :

• Revenue growth was ~15.0% for Q1 as compared to same quarter previous year

Q1 FY25 : 208.5 Crs

==> picture [96 x 12] intentionally omitted <==

----- Start of picture text -----

YoY 15%
----- End of picture text -----

• Operating margins were stable @ 10.5%. The margin as communicated before were exceptional in Q1 of last financial year on account of certain high margin supplies, now returning to normalcy.

• Receivable days (calculated on trailing 6 months gross sales) were ~ 80 days in Q1FY25 vs 91 days in Q4FY24.

• Order book stands at ~Rs 468 Crores.

Operating Profits

Q1 FY25 : 21.9 Crs

==> picture [111 x 12] intentionally omitted <==

----- Start of picture text -----

OPM 10.5%
----- End of picture text -----

• Robust business environment and long-term demand growth levers playing out

Key strategic developments:

• Conclusion of the preferential allotment of equity shares amounting to Rs 96 crores.

• Expansion of our plant capacity by ~20% with a capex outlay of up to Rs 35 crores at our Reengus plant

Profitability (PAT)

Q1 FY25 :11.6 Crs

NPM 5.6%

==> picture [16 x 54] intentionally omitted <==

• Expansion of our product portfolio to include solar power cable in view of the growing demand for

renewable energy solutions

14

==> picture [80 x 23] intentionally omitted <==

CONCLUDED PREFRENTIAL ISSUE OF Rs 96 Crs

Strategic actions planned for growth

Working capital requirement:

• With the growth in business, there will be need for additional working capital requirement in the Company.

• We fund a majority of our working capital requirements in the ordinary course of business from banks and internal accruals

Reduction of debt:

The repayment of the Debt will help reduce our liabilities and our finance cost and enable utilization of our internal accruals for further investment in the growth and expansion of our business in the future

Expansion of business:

Our Company intends to deploy the fund for the expansion of the business which includes:

• Capital Expenditure

• Strategic initiatives

• Product development

Others:

• Organization build up

• Growth opportunities and meeting exigencies,

• Any other opportunity

==> picture [16 x 54] intentionally omitted <==

15

==> picture [291 x 276] intentionally omitted <==

WAY AHEAD

SUN RISE MOMENT

==> picture [168 x 127] intentionally omitted <==

----- Start of picture text -----

HUGE
BUSINESS
OPPORTUNITY
----- End of picture text -----

Multiyear under investment in Power sector capex

• Huge catch up demand

• Replacement Demand

• Rural Electrification

• Conversion of overhead caballing to underground caballing

Increase in Power demand growth

Government Initiatives & Favoring Policies

==> picture [35 x 167] intentionally omitted <==

• Fastest growing large economy of the world

• Improving Financial health of state discoms

• Increase in per capita consumption which is still 1/3[rd] of global average

• High budgetary allocation of ₹ 11 Tn towards infrastructure development

• Urbanization & Industrialization

• Shift of policy from populistic approach to capitalistic approach

• Private capex

• Thrust on Renewable energy

==> picture [80 x 24] intentionally omitted <==

Export Opportunities

• Global GDP to be 2x of current $ 100 trillion by 2040

• China+1 , favoring Indian suppliers

• Opening up of western markets

==> picture [16 x 54] intentionally omitted <==

17

==> picture [80 x 24] intentionally omitted <==

GROWTH STRATEGY:

Product Portfolio Expansion: Addition of differentiated products

Operational efficiency:

Improvement in productivity resulting in cost leadership

Increasing share of Exports market: Focus on entering newer markets

Focusing on New segments with better margin profile: Segment such as Renewable energy , Electric Vehicle , etc. to be in focus

Continued investment in People, Product and Plant: Investment in our core assets to bring overall growth and development

==> picture [16 x 54] intentionally omitted <==

18

MANAGEMENT

==> picture [291 x 276] intentionally omitted <==

==> picture [80 x 24] intentionally omitted <==

LEADERSHIP TEAM

==> picture [54 x 191] intentionally omitted <==

==> picture [49 x 247] intentionally omitted <==

==> picture [215 x 342] intentionally omitted <==

ASHISH MANGAL

Managing Director

Experience : 28 Years

• Aged 49 years, he is a second-generation entrepreneur having joined the business in 1996 after completing his graduation.

• Since then, he has been hands on in managing the affairs of the company leading the operations to a multi fold increase in scale of business and organization building.

• Has gained over 28 years rich experience in the power cable & conductor industry

• Throughout his tenure, he has navigated all crucial aspects of the business, including Production, Finance, Marketing and Customer Relationships

• Solely focused on managing business of Dynamic Cables

• A proactive member of reputed organisations like CII, Entrepreneurs Organisation (EO), Young Indians (YI) Jaipur Chapter, TIE, RAIN (Rajasthan Angel Investors Network), PHD Chamber of Commerce & Industry, IEEMA (Corporate Member), CACMAI (Corporate Member)

==> picture [16 x 54] intentionally omitted <==

20

==> picture [54 x 191] intentionally omitted <==

BOARD OF DIRECTORS

==> picture [36 x 100] intentionally omitted <==

==> picture [77 x 107] intentionally omitted <==

==> picture [91 x 100] intentionally omitted <==

RAHUL MANGAL

BHARAT MOOSSADDEE Independent Director

Chairman and Non-Executive Director

[Worked with premier organizations ]

MD at Mangal Electrical Industries Pvt Ltd, manufacturer of CRGO Laminates

at various senior positions

==> picture [54 x 93] intentionally omitted <==

==> picture [78 x 88] intentionally omitted <==

==> picture [90 x 93] intentionally omitted <==

ASHOK KUMAR BHARGAVA Independent Director

SUMER SINGH PUNIA Non-Executive Director

Ex GM SIDBI

Has 28+ experience in the field of taxation

==> picture [80 x 24] intentionally omitted <==

==> picture [34 x 105] intentionally omitted <==

==> picture [86 x 106] intentionally omitted <==

SAURAV GUPTA

Independent Director Promoter and Director of Bella Casa Fashion & Retail Ltd

==> picture [31 x 87] intentionally omitted <==

==> picture [78 x 88] intentionally omitted <==

SHWETA JAIN

Independent Director Startup Entrepreneur

==> picture [16 x 54] intentionally omitted <==

21

==> picture [80 x 24] intentionally omitted <==

ADVISORY BOARD

==> picture [54 x 191] intentionally omitted <==

==> picture [116 x 167] intentionally omitted <==

Neeraj Bali

An Indian Army veteran, a corporate professional, an experienced leadership trainer and a professional speaker. He advises the company on team building & organizational building. He is M.Sc. and M Phil in Defense Studies.

==> picture [112 x 167] intentionally omitted <==

Govind Saboo

A Chartered Accountant and founder of Srujan Alpha Capital Advisors (SEBI registered Category-I Merchant Banker). He advises the company on capital planning and allocation, corporate governance & investor communication.

He has 17+ years of experience in corporate and capital market advisory.

==> picture [116 x 168] intentionally omitted <==

Ravindra Jain

In his corporate experience of over 40 years across industries, has set up and spearheaded large green-field businesses from startto-sustainable.

He is advising the company on business development, exports & other aspects of business. He is an Electrical Engineer and PGDM (MBA) from IIM, Ahmedabad.

==> picture [16 x 54] intentionally omitted <==

22

==> picture [80 x 24] intentionally omitted <==

KEY MANAGEMENT TEAM

Murari Lal Poddar Chief Financial Officer Shailendra Kumar Pandey Plant Head 1 (CFO) Experience: 24 years Experience: 27 years Naina Gupta Company Secretary & Shah Sulabhkumar Plant head 3 Compliance Officer Experience: 6 years Experience: 15 years Manavsalan Srinivasan Vice President Mahesh Inderjit Plant head 4 Experience: 35 years Experience: 29 years Ashok K. Sharma Vice President Harnath Singh Bhati General Manager Experience: 20 years (Engineering) Experience: 21 years Suresh Kadam Vice President A.K. Ojha Quality Head Experience: 25 years Experience: 25 years Deepak General Manager (Human Resource) Experience: 19 years

==> picture [16 x 54] intentionally omitted <==

23

GROWTH WITH RESPONSIBILITIES

==> picture [291 x 276] intentionally omitted <==

OUR ESG COMMITMENTS

At Dynamic Cables Ltd., we are pro actively committed to grow responsibly and sustainably, integrate ESG program with our business strategy to thrive and succeed inclusively.

Our largest manufacturing plant at Reengus is rated as GreenCo Broze by CII Godrej GBC

ENVIRONMENTAL

The 4 pillars of our environmental policies are

==> picture [66 x 34] intentionally omitted <==

----- Start of picture text -----

Optimum
Resources
Management
----- End of picture text -----

Sustainable Effective Procurement Energy And Products Conservation Combat Climate Change

SOCIAL

The 4 pillars of our social and CSR strategy are

==> picture [118 x 23] intentionally omitted <==

----- Start of picture text -----

Product/Service Safety
And Quality Metrics
----- End of picture text -----

Prioritizing Retaining Customer Our Staff Engagement Focus On Employee Well-being

GOVERNANCE

The 4 pillars of our corporate governance policies are

Proper Compliance Management Executive Pay Proficient Performance Board Alignment Composition Ensuring Shareholder Rights

==> picture [16 x 54] intentionally omitted <==

25

==> picture [80 x 24] intentionally omitted <==

CSR INITIATIVES

==> picture [246 x 174] intentionally omitted <==

==> picture [236 x 167] intentionally omitted <==

==> picture [245 x 174] intentionally omitted <==

==> picture [235 x 167] intentionally omitted <==

==> picture [16 x 54] intentionally omitted <==

0826

==> picture [80 x 24] intentionally omitted <==

SAFE HARBOR

This presentation has been prepared by Dynamic Cables Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

==> picture [39 x 191] intentionally omitted <==

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its directors, promoters or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.

This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws.

==> picture [16 x 54] intentionally omitted <==

27

THANK YOU

Dynamic Cables Limited

(Govt. Recognized Two Star Export House) (An ISO 9001:2015 , ISO 14001:2015 & ISO 45001:2018 Certified Company)

Contact - investor.relations@dynamiccables.co.in Website - www.dynamiccables.co.in