Dynamic Cables Ltd

- The company raised Rs. 97 crores through preference shares recently. - As of June 30, around Rs. 71 crores of these funds have been utilized, primarily for working capital and Rs. 19 crores for CAPEX. - The CAPEX for the new plant is about Rs. 35 crores, funded through internal accruals. - The company expects to be free from all long-term debt by the end of the year; only working capital debt will remain. - There is no mention of any immediate or planned future fundraising through additional debt or equity beyond these points.

- Current CAPEX: A new plant with a total CAPEX of around Rs. 35 crores is being commissioned in H2 FY '25. - New plant details: The plant focuses on HV cables, solar cables (including E-beam facility), and AL59 conductors. - Revenue potential: Expected peak revenue from this new capacity is approximately 6x to 7x of the investment (around Rs. 200-250 crores). - Land availability: New land of around 15,000 square meters purchased last year near existing plants for future CAPEX. - Expansion potential: The 35,000 sq. meters plant area has 10,000-15,000 sq. meters still available for further CAPEX. - Timeline for future CAPEX: New projects typically take 9 months to 1.5 years to commercialize depending on cable type. - Strategic investments: Currently no plans for backward integration or other strategic tie-ups. - CAPEX funding: Planned CAPEX to be funded through internal accruals; long-term debt expected to be cleared by year-end.

- Dynamic Cables achieved a 28% volume growth in the latest quarter. - The company aims to grow at 1.5x the industry growth rate, targeting around 25% revenue growth versus industry’s 15%-20%. - Maximum monthly sales from current capacity reached Rs. 125 crores (March 2025), indicating potential annualized revenue of Rs. 1,500 crores. - Optimum capacity utilization expected at 80%-90%. - New plant commissioned with Rs. 35 crores CAPEX, expecting incremental revenue of Rs. 200-250 crores, to be ramped up by FY '26/FY '27. - Continuous debottlenecking exercises are underway to enhance current plant capacity. - Solar cable market (a key growth segment) TAM estimated at Rs. 6,000-7,000 crores and expanding rapidly. - Expects to enter US market with sales expected to start by end FY '26 or early FY '27. - Target EBITDA margin maintained at 10%-10.5% in near term.

- The company reported a 26% year-on-year revenue growth and a 23% increase in operating profit in Q1 FY '26, indicating strong core operations and cost discipline. - Operating margin is expected to remain stable around 10% to 10.5% in the near term. - Profit after tax grew by 57% in Q1 FY '26, reflecting earnings strength. - The company expects to ramp up new plant capacity (with incremental revenue potential of Rs. 200-250 crores) by FY '26 or FY '27. - Optimum capacity utilization is around 80-90%, with current capacity enabling about Rs. 1,150-1,200 crores revenue annually; new plants and debottlenecking exercises would support further growth. - Export sales (currently ~15% order book) and approvals in the U.S. market are expected to contribute to growth starting FY '26-end or FY '27. - Overall, the business outlook suggests sustainable revenue and operating profit growth in medium term with stable margins.

- Current order book: Rs. 734 crores (Q1 FY '26), up 57% year-on-year. - Order execution visibility: Orders generally have a 6 to 9 months execution timeline. - Order book breakup: 62% from power distribution, 15% exports, 12% government entities, and 11% from solar. - Export order book: Around 15%, mainly Asia and Africa; U.S. market entry expected end of FY '26 or FY '27 after approvals. - Management indicates healthy order book growth and strong future sales outlook. - Optimum capacity utilization expected at 80% to 90%, with peak revenue capacity from current plants around Rs. 1,150-1,200 crores annually. - Unutilized capacity may exist if delivery schedules are deferred by customers. This reflects a strong order book position with steady growth and diversification across domestic and export markets.