A financial perspective on our business. How we maintained growth momentum in FY 24 and created new growth opportunities.
“The company possessed Rs 3,876.44 cr of net worth and Rs 405.54 cr of longterm debt – a gearing of 0.10.”
During FY 24, the company balanced the need to sustain business momentum with new opportunities for growth. We believe this scenario presented cash flow and capital allocation priorities. The company is pleased to report a revenue growth of 13%, EBITDA (post open period forex) growth of 24%, and PAT growth of 29%.
While the company has a history of profitable growth, the profit increases in the last two years have been particularly significant, indicating leadership strength.
This comprised a shift from conventional conductors to high efficiency conductors. The combination of premium products in the Indian market and conventional products in the overseas market helped achieving heathy margins
The company has exported to over 140 countries with exports reaching 45.2% of the topline in FY 24. The company leveraged synergy across divisions for common customers. It received approvals from global utilities, EPC contractors and OEMs.
The company’s sustained outperformance during the financial year resulted from a global shift from fossil fuels to renewable energy. Western interest in diversifying its supply chain away from China, the rise in fuel costs due to the RussiaUkraine war, and the movement towards long-term electrification
have further driven this change. Urbanization continues to increase electrical connections, and developed countries are overhauling their power transmission systems. There is a strong belief that increased prosperity drives electricity
consumption, indicating a potential rise in electricity usage in the coming years.
The company is attractively placed to capitalise on an emerging world on account of it being number one, two or three across each of its leading business segments.
The company generated record revenues from each of its business segments. The conductor’s business grew 15%, speciality oils grew 4%, cables grew 18%, during FY 24.
| Year | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue from the conductors business % | 42.81% | 46.68% | 47.66% |
| Revenue from the speciality oils and lubricants business % | 36.12% | 30.89% | 28.71% |
| Revenue from the cables business % | 20.32% | 21.72% | 22.90% |
| Revenue from the Others business % | 0.75% | 0.71% | 0.73% |
The company is positioned as an international supplier of products located out of India & UAE. The company services the growing demand of customers – individual and institutional – across 140 countries. Nearly 45% of the company’s revenue was derived from international dispatches, reflecting its strong global presence and competitiveness.
| Year | FY22 | FY23 | FY24 |
|---|---|---|---|
| Total exports as a % of overall revenues | 38.74% | 48.73% | 45.2% |
| Exports growth % | 35.46% | 98.41% | 4.32% |
| Year | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue growth % | 46% | 54% | 13% |
| EBITDA post open period forex growth % | 29% | 125% | 24% |
| Year | FY22 | FY23 | FY24 |
|---|---|---|---|
| Capital expenditure (Rs crores) | 130.03 | 247.83 | 330.67 |
| Year | FY22 | FY23 | FY24 |
|---|---|---|---|
| EBITDA post open period forex derived from the conductors business % | 31.28% | 54.73% | 53.37% |
| EBITDA post open period forex derived from the speciality oils and lubricants business % | 49.87% | 18.06% | 18.97% |
| EBITDA post open period forex derived from the cables business % | 18.06% | 26.67% | 26.86% |
| EBITDA post open period forex derived from the other business % | 0.79% | 0.54% | 0.80% |
| Year | FY22 | FY23 | FY24 | |
|---|---|---|---|---|
| Credit rating given by CARE | Long Term Bank Facilities (Term Loans & Fund Based Limits) | CARE A; stable | CARE A; positive | CARE A+; stable |
| Long Term / Short Term Bank Facilities (Non-fund Based Limits) | CARE A; stable / CARE A1 | CARE A; positive / CARE A1 | CARE A+; stable / CARE A1 | |
| Credit rating given by ICRA | Long Term Bank Facilities (Term Loans & Fund Based Limits) | NA | [ICRA] A+; stable | [ICRA] A+; stable |
| Long Term / Short Term Bank Facilities (Non-fund Based Limits) | NA | [ICRA] A+; stable / [ICRA A1] | [ICRA] A+; stable / [ICRA A1] |
