Dynamic Cables Ltd

- There is no announcement or indication of any new fundraising through debt or equity beyond the ongoing CAPEX. - Management mentioned only the ongoing CAPEX (around Rs. 35 crore) which is under implementation; no other CAPEX or fundraising plans have been announced currently. - The company has reduced its debt levels and mainly uses working capital debt, which fluctuates with operational needs. - They possess vacant land for future capacity expansion, but no concrete fundraising plans tied to that yet. - Focus is on utilizing existing and ongoing CAPEX for growth without immediate plans for additional fundraising.

- Dynamic Cables is implementing a Greenfield expansion project with a CAPEX of Rs. 35 crore, expected to commence operations in H2 FY ‘26. - The new plant will focus on HV and LV segments, including solar cables and E-beam technology. - The Greenfield expansion aims for an asset turn of 5 to 6 times revenue. - Post commissioning of the new plant, management will evaluate further capacity expansion using vacant land near existing facilities (around 15,000 sq meters). - No other CAPEX beyond the ongoing Rs. 35 crore project has been announced yet. - The company follows incremental CAPEX to optimize utilization before initiating further investments.

- Dynamic Cables has achieved a 5-year sales CAGR of around 20%, with FY ’25 showing 34% growth. - The company expects to maintain around a 20% CAGR in sales over the next few years due to strong structural demand. - Volume growth for recent periods was about 33%, with realizations increasing roughly 3%-4%, expected to continue similarly. - Order book growth from Rs. 680 crore to Rs. 725 crore in 3 months indicates strong demand visibility. - Capacity expansions (new Greenfield plant operational by H2 FY ’26) will add revenue potential of Rs. 200-250 crores, supporting future sales growth. - Focus on renewable segment and power utilities, especially domestic demand, is expected to sustain volume growth. - Export markets (U.S., Australia) offer long-term growth potential but currently remain marginal; meaningful traction expected from FY ’27. - Management expects stable margins (10%-10.5%) alongside growth.

- The company has a strong historical sales CAGR of around 20% over the last 5 years and aims to maintain this trajectory given favorable structural demand in the power infrastructure sector. - Operating margins have been stable and consistent at 10% to 10.5% over the past 10 years, with management expecting this to continue considering the competitive landscape. - Export markets, especially the U.S. and Australia, present growth potential but will take 1-2 years to contribute significantly. - The ongoing Greenfield CAPEX (Rs. 35 crore) will add capacity with revenue potential of Rs. 200-250 crores, expected to achieve optimum utilization within 1-2 years. - Realizations are expected to rise modestly by 3-4% driven by higher share of value-added products; volume growth was 33% recently and expected to continue. - Overall, earnings and operating profits are expected to grow steadily with volume expansion, stable margins, and expanding product/export mix.

- As of March 31, 2025, the order book stands at INR 726 crore, providing strong revenue visibility. - The order book increased from around INR 680 crore in December to INR 725 crore in three months after delivering approximately INR 330 crore in sales. - Around 70% of the order book is from power utilities: 15% export and 55% domestic. - Approximately 15% of the order book is from the renewable sector. - About 7%-8% of the order book comes from the government segment, mainly government DISCOMs. - The average delivery time for orders is around 6 to 9 months. - Export order book is roughly INR 100 crore. - The company is adding capacity with a new Greenfield CAPEX of Rs. 35 crore to support future orders. - Expect some exports to start impacting revenue by FY 2026-27.