Dynamic Cables Limited — Investor Presentation 2024

Feb 27, 2024

Naina

Gupta

Digitally signed by Naina Gupta Date: 2024.02.27 18:19:29 +05'30'

Dynamic Cables Limited

Powering The Growth Investor Presentation

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

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

02

ABOUT US

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

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

OVERVIEW

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

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

CAGR Since Listing (Dec 2017)

Track Leading Record Manufacturer and Supplier 37+ Years of Power Cables in India Listed On Young & Focused Promoter NSE and BSE ~75% shareholding

Sales 13% EBITDA 26% PAT 33%

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

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

ROCE ROE 24.0% 19.1% Export

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

Infrastructure

Research & Development

3 Manufacturing facilities situated at Jaipur & Reengus

Dedicated labs for quality 40+ Countries testing and new product Served development

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

04

EVOLUTION

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

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

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

• Inception of Dynamic Engineers as a Partnership Firm

• Started manufacturing super enameled & DPC wires

• Diversified into Overhead conductors

==> picture [298 x 101] intentionally omitted <==

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

2005-2009 2010-2019
----- End of picture text -----

• Started Manufacturing LV cables.

• BSE SME Listing

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

• Forayed in exports

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

• Started manufacturing HV cables

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

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

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

2020-2023
----- End of picture text -----

• Migration to BSE mainboard & Listed on NSE

• Set up captive solar plant

• R&D breakthrough and new products approvals like Railway cables, etc.

Revenue Journey

==> picture [752 x 134] intentionally omitted <==

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

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

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

05

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

PRODUCT RANGE

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

==> picture [176 x 145] intentionally omitted <==

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

==> picture [130 x 138] intentionally omitted <==

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

==> picture [130 x 138] intentionally omitted <==

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

==> picture [145 x 141] intentionally omitted <==

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

==> picture [133 x 142] intentionally omitted <==

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

06

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

GLOBAL SALES FOOTPRINT

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 <==

07

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

Marquee clients and Certifications

==> picture [221 x 312] intentionally omitted <==

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

You don't only buy a cable,
with DYNAMIC you buy
of TRUST & RELIABILITY
Product Tested from globally
reorganized NABL Accredited
Laboratories
Years
----- End of picture text -----

==> picture [605 x 222] intentionally omitted <==

Standards Compliance Quality Certifications

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

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

==> picture [57 x 45] 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 <==

7

08

FINANCIAL OVERVIEW

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

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

KEY FINANCIAL HIGHLIGHTS

==> picture [228 x 186] intentionally omitted <==

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

Operating Profits
62.8
59.8
48.2
45.2
25.6
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
----- End of picture text -----

==> picture [228 x 185] intentionally omitted <==

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

Revenue
668.6
563.6
526.5
428.6
342.7
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
----- End of picture text -----

Operating Margins %

==> picture [209 x 137] intentionally omitted <==

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

10.5% 10.6%
9.4%
9.1%
7.5%
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
----- End of picture text -----

==> picture [228 x 186] intentionally omitted <==

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

PAT
30.9 31.0
21.2
18.3
9.8
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
----- End of picture text -----

==> picture [504 x 186] intentionally omitted <==

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

ROCE Debt/Equity Ratio
1.41x
23.8% 24.0%
20.5%
1.07x
17.0% 1.00x
11.0%
0.52x
0.46x
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
----- End of picture text -----

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

10

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

PRODUCT MIX

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

==> picture [337 x 171] intentionally omitted <==

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

8.80% 9.10% 4.31%
14.5%
20.60% 2.53%
1.39%
38.50%
29.81%
37.20%
39.80%
33.65%
44.50%
47.70%
63.35%
53.70%
50.45%
51.40%
34.90%
13.80%
FY18 FY19 FY20 FY21 FY22 FY23
----- End of picture text -----

==> picture [288 x 20] intentionally omitted <==

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

HT Cables LT Cables Railway Signaling Conductors
cables
----- End of picture text -----

KEY HIGHLIGHT

Shift of focus towards high value add HT Cables , 50%+ contribution Significant decline in commoditized conductors sales Started railway signaling cables in FY22 , it 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 207] intentionally omitted <==

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

6.70% 3.20%
10.30% 13.80% 11.00%
17.50%
65.70%
34.50%
74.80%
76.20%
65.60%
66.20%
27.50%
55.20%
17.00% 22.80% 22.00%
10.00%
FY18 FY19 FY20 FY21 FY22 FY23
Government Private Export
----- End of picture text -----

KEY HIGHLIGHT

Export picked up in FY24, contribution significantly higher @ 30% in Q1 Focus on high quality customers, in private, Government and Exports Believe in partnering with customers

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

11

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

9MFY24 HIGHLIGHTS

Key Highlights :

Top-line (Revenue)

9M FY24 : 527.1 Crs

YoY 7.5%

• Recorded highest ever 9 monthly revenue , with YoY growth of 7.5% on a high base

• EBITDA Margin @ 9.8%, growth in 9MFY24 margins on YoY basis were on the back on prudent

• input cost management and better revenue mix

• Highest-ever order book, of ~ Rs. 519 Crs , laying a foundation for sustained business momentum

• Export sales for 9MFY24 ~ Rs 94 Crs vs Rs 22 Crs for FY23, almost 4x of previous full year

• Completed brownfield expansion of Reengus plant, thereby increasing manufacturing capacity by 5,000 KMS i.e. ~25% of our existing capacity

Operating Profits

9M FY24 : 51.8 Crs

YoY 18%

Profitability (PAT)

• Received credit rating upgrades from Crisil and India Ratings, now standing at A-, up from BBB+.

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

9M FY24 :24.0 Crs

YoY 14%

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

12

www.dynamiccables.co.in

9MFY24 HIGHLIGHTS (Continued…)

BROWNFIELD EXPANSION COMPLETED IN Q3

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

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

5,000 KMS Capacity expansion of cables and specialty conductors depending upon their specifications.

25,000 KMS

Total capacity for various HT, LT cables and specialty conductors that can be produced annually at its Reengus plant

==> picture [59 x 68] intentionally omitted <==

==> picture [59 x 68] intentionally omitted <==

Rs. 25 Crs. Investment towards capacity expansion , excluding land

FY 2023-24 Capacity expansion completed in current fiscal year

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

13

==> 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

• 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

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

==> picture [124 x 13] intentionally omitted <==

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

Export Opportunities
----- End of picture text -----

• 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 <==

• Thrust on Renewable energy

15

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

COMPETENCIES

==> picture [808 x 388] 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
Market Intelligence and dedicated Presence: Development:
Continuous focus on R&D
sales and customer service teams Widespread Presence in Indian
for quality testing and
which helps to engage closely with Markets in both Government
product development as per
customer’s procurement teams for and private power & energy
market demand and trends
real time market updates. sector.
----- End of picture text -----

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

16

==> 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 <==

17

MANAGEMENT

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

==> picture [42 x 164] intentionally omitted <==

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

LEADERSHIP TEAM

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

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

ASHISH MANGAL

Managing Director

Experience : 27 Years

• Aged 48 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 27 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 <==

19

==> picture [42 x 164] intentionally omitted <==

BOARD OF DIRECTORS

==> picture [43 x 170] intentionally omitted <==

==> picture [133 x 251] intentionally omitted <==

RAHUL MANGAL

Chairman and Non-Executive Director Experience : 31 Years

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

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

Independent Directors

==> picture [53 x 88] intentionally omitted <==

==> picture [53 x 88] intentionally omitted <==

SAURAV GUPTA

BHARAT MOOSSADDEE

Promoter and Director of Bella Casa Fashion & Retail Ltd

Worked with Mahindra group , CK Birla group, General Motors, Hindustan Zinc, Shell India and Sun Gumberg at various senior positions

==> picture [53 x 88] intentionally omitted <==

==> picture [53 x 88] intentionally omitted <==

SHWETA JAIN

ASHOK KUMAR BHARGAVA Ex GM SIDBI

Startup Entrepreneur

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

20

==> picture [42 x 164] intentionally omitted <==

ADVISORY BOARD

==> 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 Defence 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 capital allocation, corporate governance, corporate finance & investor communication.

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

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

==> 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 <==

21

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

KEY MANAGEMENT TEAM

==> picture [651 x 396] intentionally omitted <==

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

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: 5 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
----- End of picture text -----

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

22

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.

ENVIRONMENTAL

The 4 pillars of our environmental policies are

==> picture [225 x 157] intentionally omitted <==

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

Optimum
Resources
Management
Sustainable
Effective
Procurement
Energy
And Products
Conservation
Combat Climate
Change
----- End of picture text -----

SOCIAL

The 4 pillars of our social and CSR strategy are

==> picture [201 x 150] intentionally omitted <==

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

Product/Service Safety
And Quality Metrics
Prioritizing
Retaining
Customer
Our Staff
Engagement
Focus On
Employee
Well-being
----- End of picture text -----

GOVERNANCE

The 4 pillars of our corporate governance policies are

==> picture [234 x 161] intentionally omitted <==

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

Proper
Compliance
Management
Executive Pay Proficient
Performance Board
Alignment Composition
Ensuring
Shareholder
Rights
----- End of picture text -----

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

24

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

CSR INITIATIVES

==> picture [246 x 146] intentionally omitted <==

==> picture [247 x 144] intentionally omitted <==

==> picture [243 x 158] intentionally omitted <==

==> picture [242 x 153] intentionally omitted <==

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

0825

==> 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.

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.

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

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.

26

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