Venkatram

#SME #Susan #SusanElectricals #SusanElectricalsIndiaLimited Susan Electricals India H1 FY27 Concall Highlights: 👉H1 FY27 & Future Outlook : ▫️H1 FY27 revenue from operations ₹202.06 Cr vs ₹69.67 Cr in H1 FY26 (+190% YoY); first half-year results since listing 💠Operating profit ₹23.78 Cr (+160% YoY); EBITDA margin 11.77% vs 13.13% in H1 FY26 💠PAT ₹13.15 Cr vs ₹4.53 Cr (+191% YoY) 💠Cash flow from operations turned positive ▫️Margin trend: H1 FY26 included one-time gains from abnormal aluminium and copper price movements 💠Q2 FY26 EBITDA margin was 18.18% on those gains; underlying margins have stayed at ~11.5-12% 💠FY26 EBITDA margin 11.91% 💠Mix shift toward winding wire and HT cables is expected to lift EBITDA margin ~2-3% above current levels by the end of FY28 ▫️Margin and growth targets 💠PAT margin ~6-7% now; target 8-9% in FY28 💠Top line to grow ~40-50% in each of FY28 and FY29 💠Team is being given EBITDA-margin targets rather than sales targets ▫️H2 FY27 expected to be significantly stronger, backed by better execution capability, capacity additions and order pipeline 💠H2 priorities: commission the CCV line, scale up HT, MVCC and winding wires, complete capacity expansion on schedule, and convert receivables into cash ▫️Revenue mix shift (Q2 FY27): HT & MVCC ~30%, winding wires ~33%, LT cables ~31% 💠H1 FY27 mix: LT cables & conductors 47.83%, winding wire 29.10%, HT cables & MVCC 19.36%, others 3.71% 💠H1 FY26 mix: LT 46.76%, winding wire 40.37%, HT & MVCC 0.75%, others 12.12% 💠HT & MVCC sales rose from ₹0.52 Cr in H1 FY26 to ~₹39 Cr in H1 FY27; FY26 share was 8.57% 💠FY27 mix target: HT & MVCC ~40-50%, winding wires ~40%, LT cables 10-20% 💠FY28 mix target: LT cables 5-10%, winding wires and HT & MVCC ~45% each ▫️Winding wire sales +109% YoY in H1 FY27; margins are better than LT cables ▫️Volumes: Q2 FY27 vs Q1 FY27 💠HT cables & MVCC 518 km vs 176 km 💠LT cables & conductors 1,498 km vs 3,641 km 💠Winding wires 937 tons vs 554 tons ▫️Trading is only ~1-2% of revenue; no plan to repeat last year's aluminium trading 👉Order book / projects and pipeline: ▫️Order visibility ₹347 Cr as of 30 Sep 2026 💠Unexecuted order book ₹147 Cr; a significant portion is expected to be executed within the next 3 months 💠Active order pipeline ₹200 Cr ▫️Order book split (₹147 Cr): 💠HT cables & MVCC ₹54 Cr (more than a third) 💠Winding wires ₹69 Cr (almost half) 💠LT cables ₹24 Cr 💠HT cables and winding wires together are more than 80% of the order book ▫️Q2 FY27 order flow: ~₹107 Cr executed and ~₹111 Cr of new orders won, so the order book still grew ▫️CCV (continuous catenary vulcanisation) line: 💠Installed; to become operational within ~10 days 💠CCV technology is mandatory for most HT cable projects, widening the range of projects Susan can bid for 💠Helps meet technical requirements for supplying HT cables to state utilities and government departments 💠HT cables currently go up to 33 kV; plan to go above 33 kV soon, with BIS approval taking ~2-3 months once applied ▫️Cable capacity expansion: 💠Raised from 7,500 km to 11,000 km; further expansion to 16,000 km per annum planned (+5,000 km) 💠Commercial production targeted for Mar 2027 💠Existing plant can expand up to 16,000-20,000 km; existing land has room up to 22,000 km per annum ▫️Winding wire capacity expansion: 💠Raised from 3,307 to 4,200 tonnes; further expansion to 5,500 tonnes planned (+1,300 tonnes), an overall increase of ~66% ▫️New land: 💠Possession expected by next month; approximate value ₹22 Cr 💠Funded through internal accruals plus bank loan 💠FDs of ~₹48 Cr currently given as collateral for CC limits to be released once the land is offered as collateral 💠Expansion at the existing plant to cover needs up to FY28 (31 Mar 2028) 💠Construction on new land to start between FY28 and FY29, with a production start thereafter 💠Existing factories at Site IV Industrial Area to shift to the new land; land cost there is ~₹1 lakh per sq yard vs ~₹10,000 at the new site ▫️Roadmap: expand HT, MVCC, LT cable and house wiring capacity and geographic sales, ramp up aluminium conductors, explore railway and defence electrification 💠Operational in Uttar Pradesh, Telangana, Rajasthan, Madhya Pradesh, Jharkhand, Bihar, Haryana, Punjab and Gujarat 💠Expanding to Kerala, Tamil Nadu, Uttarakhand, Karnataka, Maharashtra, Andhra Pradesh, Chhattisgarh and rest of India 👉Q&A : ▫️Product portfolio: 💠No new products planned (capacitors, insulators etc.) for the foreseeable future 💠Current range of winding wires, HT cables, LT cables, conductors and MVCC is not matched by any other cable company; 12 BIS licences held ▫️Raw material price risk: 💠Orders come with price-variation clauses; ~90% of EPC contractor orders carry PV 💠Only firm-rate orders are those supplied within a month ▫️Customer mix and collections: 💠Earlier ~90-95% government; now ~50% EPC 💠EPC customers pay faster, mostly via LC or advances, in ~20-30 days 💠Government MSME payments come within ~2 months 💠More preference being given to EPC customers this year ▫️Freight: included in pricing; share of cost is small as products are volume-heavy ▫️Finance cost: 💠Not expected to rise: major capex is funded by IPO proceeds, borrowings already incurred and operating cash flow 💠Term loans are repaid regularly through EMIs; no large repayment due and no bank limit increase needed 💠Finance cost may even come down 👉 Others : ▫️Receivables: 💠~₹95 Cr, of which ₹25 Cr was billed in the last week of September 💠₹44 Cr collected in October 💠Only ~5% (~₹4 Cr) is older than 180 days, of which ~₹3.5 Cr has been received ▫️Debt (30 Sep 2026): total borrowings ₹122 Cr (short-term ₹115 Cr, long-term ₹7 Cr) 💠Cash and equivalents ₹61 Cr; net debt ~₹60 Cr, similar to March 2026 ▫️Unit-wise capacity and utilisation: 💠Unit I (winding wires & strips): 4,200 tonnes, 75% 💠Unit II (LT cables): 6,000 km, 80% 💠Unit III (LT & HT cables): 5,000 km, 80% ▫️FY26: revenue ₹269.36 Cr, EBITDA ₹32.08 Cr, PAT ₹18.25 Cr (margin 6.77%) 💠RoE 64.64%, RoCE 29.05% ▫️Certifications: ISO 9001, 14001 and 45001; type-test approvals from CPRI, ERDA and National Test House 💠Positioned among India's top 20 wire and cable players; the industry has 500+ small players