Earlier, in the nook and corner of Jaipur, India — a company name called Dynamic Cables Limited.. They weren’t just a business; they were a dielectric cable and conductor manufacturer, the lifelines of electricity transmission and distribution.Dynamic Cables has been weaving a storey of excellence, endurance and growth for over three decades at power transmission, substations, distribution sectors in India and over 40 countries around the world.mission and distribution. For over three decades, Dynamic Cables had been weaving a story of excellence, endurance, and growth, supplying high-quality cables to power transmission, substations, and distribution sectors across India and over 40 countries worldwide.
Chapter 1: The Beginning – Who is Dynamic Cables?
The inspiration behind Dynamic Cables was a desire to establish a world class organisation, offering reliable and quality cables. The company’s mission was to respond to changes in technology, processes of manufacturing and changing customer demands. Dynamic Cables in the past few years transformed into a leading player in the cables and the conductors market with three state of the art manufacturing capacity of two in Jaipur and one in Reengus.The HT cables, LT cables, railway signalling cables, solar cables and conductors were part of the company’s product portfolio.any’s mission was to keep pace with changing technology, manufacturing processes, and customer demands. Over the years, Dynamic Cables grew into a formidable player in the cables and conductors market, with three state-of-the-art manufacturing units—two in Jaipur and one in Reengus.
The company’s product portfolio was diverse, including HT cables, LT cables, railway signaling cables, solar cables, and conductors. These products were utilised for critical infrastructure projects that include power generation, railways, airports and also renewable energy. Two kinds of consumers were supplied by Dynamic Cables, — government distribution companies (discoms), private EPC contractors, and industrial customers in India and abroad.
Chapter 2: The Journey – Growth Amidst Challenges
Dynamic Cables experienced major obstacles during its development roadmap.Dynamic Cables needed to navigate through business issues created by the COVID-19 pandemic which impacted worldwide supply networks and created economic insecurities.The Russia-Ukraine war created both higher inflationary costs and made commodity prices less stable.hich disrupted global supply chains and caused economic uncertainty. Then came the Russia-Ukraine war, which led to inflationary pressures and volatility in commodity prices. Despite confronting major problems Dynamic Cables proved stronger than ever.Dynamic Cables hit new financial highs in operating margins and net profit during its 2021-22 accounting year.Dynamic Cables saw revenue expand 65% from 342.6 crores in 2020-21 to 563.6 crores in 2021-22.The company generated 10.6% more EBITDA before interest taxes depreciation and amortisation along with a Profit After Tax rise from ₹9.8 crores to ₹30.9 crores during this period.r, which led to inflationary pressures and volatility in commodity prices. Despite these hurdles, Dynamic Cables not only survived but thrived.
The cause for this growth was operational improvement including lean manufacturing practises, cost optimization and improved productivity.Besides debt reduction, the company also concentrated on financial health.CRISIL gave its nod to Dynamic Cables’ credit rating being upgraded from BBB to BBB+ as its performance and financial stability are strong.ductivity. The company also focused on debt reduction, which helped improve its financial health. Dynamic Cables’ credit rating was upgraded from BBB to BBB+ by CRISIL, reflecting its strong performance and financial stability.
Chapter 3: The Market – Where Does Dynamic Cables Stand?
The Indian wire and cable market is a ₹60,000 crore industry and is growing fast at 11-12% annually.. This growth is being fueled by the government’s commitment to developing infrastructure, urbanisation and clean energy transition. These offer great opportunities for Dynamic Cables to capitalise on.
The business provides its products to multiple industries including power transmission systems and electrical energy operations at railways and airports. The Indian government’s efforts to fully electrify rail services and build smart cities create strong ongoing demand for electrical cables and metal conductor
Dynamic Cables has also made significant strides in the export market, supplying its products to over 40 countries. In FY 2021-22, exports contributed 10% of the company’s total revenue. The company is exploring new markets in Africa and Asia, where power infrastructure investments are on the rise.
Chapter 4: The Strategy – How Does Dynamic Cables Plan to Grow?
Dynamic Cables has a strategy that is quite obvious.Diversify its product mix, expand in new markets – these are the keywords of the company.g its product mix and expanding into new markets.
- Exports: Dynamic Cables is exploring global opportunities, especially in Africa and Asia, where power infrastructure investments are growing. The company aims to increase its export contribution to 15-20% of total revenue in the coming years.
- Railway Signaling Cables: For the railway signalling segment, the company has made a breakthrough in the order book, securing prestigious orders from Indian Railways.. The next 3–4 years are going to be major growth for this segment
- Renewable Energy and Electric Vehicles: Dynamic Cables is also looking at business in the renewable energy and electric vehicle (EV) markets.These are new sectors with ROCE accretive companies developing specialty cables and we are developing them.ent is expected to drive significant growth in the next 3-4 years.
Chapter 5: The Challenges – What Risks Does Dynamic Cables Face?
However, Dynamic Cables has risks, and it has a bright future. The company has these challenges:
- Raw Material Price Volatility: The prices of key raw materials like copper, aluminum, and PVC are highly volatile. This can impact the company’s margins. However, Dynamic Cables has a price escalation clause in its contracts, which helps mitigate this risk.
- Geopolitical Risks: Events like the Russia-Ukraine war and US-China trade tensions can disrupt global supply chains and affect demand. Dynamic Cables is mitigating this risk by diversifying its geographical presence and sourcing raw materials strategically.
- Competition: The wire and cable industry is highly competitive, with both domestic and international players vying for market share. Dynamic Cables differentiates itself through high-quality products and strong customer relationships.
- Pandemic Risks: The COVID-19 pandemic has highlighted the importance of health and safety. Dynamic Cables is committed to ensuring the safety of its employees and adhering to government protocols.
Chapter 6: The Financials – A Closer Look at the Numbers
Let’s dive into the financials to understand how Dynamic Cables is performing:
- Revenue Growth: The company’s revenue grew by 65% in FY 2021-22, reaching ₹563.6 crores. This growth was driven by strong demand from both government and private sectors.
- Profitability: The operating EBITDA margin improved to 10.62%, up from 7.48% in the previous year. The PAT margin also increased to 5.48%, reflecting better cost management and operational efficiency.
- Debt Reduction: Dynamic Cables reduced its debt-to-equity ratio to 0.52, down from 1.00 in FY 2020-21. This indicates a healthier balance sheet and lower financial risk.
- Return on Equity (ROE): The company’s ROE improved to 23.34%, up from 8.75% in the previous year. This shows that the company is generating higher returns for its shareholders.
Chapter 7: The Future – What Lies Ahead for Dynamic Cables?
The future looks promising for Dynamic Cables. The company is well-positioned to benefit from the government’s infrastructure push, including initiatives like the National Infrastructure Plan, Gati Shakti, and Bharatmala. The electrification of railways and the transition to renewable energy are also expected to drive demand for cables and conductors.
Dynamic Cables is also exploring new opportunities in the EV and renewable energy markets. The company’s focus on innovation and R&D will help it stay ahead of the competition and meet the evolving needs of its customers.
Chapter 8: The Moral of the Story – Why Invest in Dynamic Cables?
Dynamic Cables has solid financials, a great track record and a really good growth strategy.. Although there were challenges, the company has proven it can flex and flourish in a finely tuned business environment.Dynamic Cables, with diversified product portfolio, strong presence in domestic and export markets, and concern with high margin products have the ability to grow in long term.rive in a dynamic market environment. With a diversified product portfolio, a strong presence in both domestic and export markets, and a focus on high-margin products, Dynamic Cables is well-positioned for long-term growth.
Dynamic Cables could be a good investment for investors searching for a stable growing company in the infrastructure sector.As a premier player, the company’s commitment to the industry of innovation, quality, and customer satisfaction promotes it to achieve the level to which it has reached today.The company’s commitment to innovation, quality, and customer satisfaction makes it a strong contender in the wire and cable industry.
Thus, the story of Dynamic Cables continues, following new chapters of growth, challenges and opportunities that are yet to be written. As the company navigates the ever-changing landscape of the global economy, one thing is certain: One to watch in the world of cables and conductors is Dynamic Cables.
The End.
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