Delton Cables Ltd said that it received orders worth Rs.177 crore for power cables during the first quarter (Q1: April to June) of FY25.
These orders are to be fulfilled over a period of two years, the company said, that the outstanding order book, as of June 30, 2024, stood at Rs.294 crore.
An investor presentation of Delton Cables discussing the company’s performance in Q1FY25 observed that it was aiming to develop a pan-India presence and expand to untapped areas with respect to its EPC cables business. Delton Cables is also planning to supply cables to new EPC areas like nuclear power, defense, water and smart metering.
Delton’s overall business can be grouped into three main categories – EPC, railways and telecom. In Q1FY25, the EPC business had a share of 37 per cent, in terms of revenue. Railways had the highest share of 44 per cent.
To further its capacity of EPC cables, Delton is in the midst of setting up a new plant in Palwal district of Haryana. Coming up on a land expanse of 8650 sqm, this new facility is expected to begin commercial production in September 2024.
Apart from greenfield expansion, Delton Cables has undertaken a de-bottlenecking exercise at its existing facilities. With the result, overall capacity utilization improved to 76 per cent in FY24 from 44 per cent in FY22.
According to the presentation, the LV cable segment, in which Delton Cables operates, accounts for the highest share of 45 per cent in the overall cable market. Besides, the company also expects that branded cables has been accounting for an increasing share of the overall market – growing from 61 per cent in FY14 to 74 per cent in FY23, and projected to reach 80 per cent in FY27.
The company could benefit from this phenomenon given that it has a longstanding presence of 75 years in the branded cable market.
Delton Cables estimates that the Indian cable industry is growing at a CAGR of 9.7 per cent, and that the market size in 2024 was estimated at $19.4 billion.
Featured photograph (source: Delton Cables) is for representation only
