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DCG Cables & Wires Ltd Management Discussions

67.85
(-1.52%)
Oct 3, 2025|12:00:00 AM

DCG Cables & Wires Ltd Share Price Management Discussions

ECONOMIC OVERVIEW:

Global Economy

The global wire and cable industry is poised for sustained expansion, underpinned by structural shifts in energy, infrastructure, and digital connectivity. As of 2025, the market is projected to reach USD 243.05 billion, with expectations to grow to USD 431.65 billion by 2034, reflecting a compound annual growth rate (CAGR) of 6.59%. Key Growth Drivers include:

Energy Transition & Electrification: Accelerated investment in renewable energy, grid modernization, and rural electrification is driving demand for high-voltage and flame-retardant cables. Over 38% of global cable demand originates from power transmissionand distribution projects.

Telecommunications & Digital Infrastructure: The global rollout of 5G networks, fiber-to-the-home (FTTH) deployments, and AI-enabled data centres is fueling growth in fiber-optic and low-loss transmission cables. Telecom projects account for approximately 27% of market demand.

Transportation & Mobility: The electrification of transport, including electric vehicle (EV) infrastructure and smart mobility systems, is contributing to increased consumption of specialized cables.

Construction & Industrial Automation

Indian Economy Outlook and Outlook for Industry

Indias wire and cable industry is positioned for robust growth, driven by large-scale infrastructure development, digital transformation, and energy transition initiatives. The market is projected to grow from USD 10.01 billion in 2025 to USD 17.08 billion by 2032, reflecting a CAGR of 7.94%. Key Growth Drivers include:

Infrastructure Expansion: Government-led investments in housing, commercial real estate, and smart city projects are generating sustained demand for housing wires and low-voltage cables.

Telecommunications & 5G Rollout: The expansion of fiber-optic networks and 5G infrastructure is accelerating demand for high-performance communication cables.

Renewable Energy Projects: Indias ambitious targets for solar and wind energy—such as 500 GW of non-fossil capacity by 2030—are creating long-term procurement pipelines for extra-high-voltage (EHV) and solar cables.

Electric Mobility & Industrial Automation

BUSINESS OPERATIONS AND OUR PRODUCTS:

The Company is a manufacturer of copper cables and wires. Our primarily focus is on manufacturing of different types of copper cables which finds application in Transformers. Our product portfolio consists of Copper Strips, Paper Covered Copper Strips and Wires (Kraft/Crepe/Nomex/Mica) Bare Copper Wires and Strips, Copper Tapes and Fiber Glass Copper.

At DCG, we take pride in offering a wide range of copper products. Our products include bare copper strips, conductors, and wires, ensuring optimal conductivity for various applications. We also provide paper-covered copper conductors in both rectangular and round shapes, as well as multi-paper-covered copper conductors and connection cables designed specifically for transformers. For added durability, we offer fiber glass-covered copper strips and wires. Additionally, our copper submersible wires and strips are perfect for submersible applications. We also supply twin and triple bunched paper-covered copper strips and bunch conductors.

We majorly supply our products to the transformer manufacturing companies in India and our main marketing strategy is to develop and maintain good relationships with our customers. Our promoter has been in this industry since 2008 and his relationships with the customers / clients have been very helpful for the growth of our business.

As on the date of this Report, we have two manufacturing units: 1) Odhav, Ahmedabad 2) Bavla, Ahmedabad

Having a combined installed capacity of 5,868 MT for manufacturing bare Copper wire & Strips, 1,404 MT for Paper Covered Copper Strips & wire, 1,512 MT for Cable Wires, 5,760 MT for Copper Rods, 10,080 MT for Copper Flats, 972 MT for Submersible Wires and 540 MT for Fiber Glass Covered Copper Strips. Our manufacturing facilities are equipped with the latest required machineries that enable us to offer products as per the specific requirements of clients along with low production cost. As on the date of this Report, our company has received accreditations such as ISO 9001: 2015 Certification for Quality Management System by Optimum Certifications Inc.

SWOT ANALYSIS:

Strength

Exceptional Product Quality: Our cables and wires are known for their excellent conductivity, durability, and reliability, making them a preferred choice for industries where performance is critical. Customization Expertise: Whether clients require cables of a specific length for structured cabling installations, varying lengths for intricate setups, or precise measurements for any other purpose, our Company can accommodate these demands with unparalleled precision. Competitive Pricing: Our Company is able to provide competitive pricing to its clients due to strong supply chain set-up Reliability and Consistency: Providing the desired and good quality products consistently help us in enhancing our clients trust & reliability and maintaining long term relationships with them. Promoters Experience: The strength of our promoters experience is a key asset that significantly contributes to our companys standing and prospects. Our promoters bring with them a wealth of knowledge acquired through years of experience in the cable and wires sector.

Weakness

Companys product portfolio may lack diversification, potentially limiting its ability to address potential market demands fully. Dependency on Suppliers: Over reliance on specific suppliers for raw materials may expose our Company to supply chain vulnerabilities. Market Dependency: Our Company may have a heavy reliance on specific market segments, making it susceptible to economic fluctuations in those industries.

Opportunity

Emerging Markets: Expansion into emerging markets can provide our Company with new growth opportunities, as these markets often have increasing infrastructure needs.

Digital Transformation: Leveraging digital technologies can enhance customer engagement, streamline operations, and improve supply chain management. Infrastructure Investment: Increased government investments in infrastructure projects, such as smart cities, transportation networks, and renewable energy installations, create substantial opportunities for supplying cables and wires. Our Company can position itself as a reliable partner for these projects.

Threats / Risks / Concerns

Economic Uncertainty: Economic downturns and disruptions can impact demand for construction and infrastructure projects, affecting the companys sales. Supply Chain Disruptions: Global supply chain disruptions, like those seen during the COVID-19 pandemic, can disrupt the production and delivery of materials. Intense Competition: The B2B cable and wires industry is highly competitive, with the presence of established players and new entrants.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place proper system of internal control which is commensurate with size and nature of business. The Company has an Audit Committee headed by the Independent Director, inter-alia, to oversee companys reporting process, disclosure of information.

FINANCIAL POSITION AND RESULTS OF OPERATIONS:

The Company has robust growth and improvement in top line and bottom line on Standalone basis in the Current and previous financial years which is explained below:

(Rs. in lakh)

PARTICULARS

STANDALONE - STANDALONE -
FINANCIAL FINANCIAL
STATEMENTS-YEAR STATEMENTS-YEAR
ENDED ENDED
MARCH 31, 2025 MARCH 31, 2024

Revenue from Operations

12756.13 10,110.29

Other Income

111.61 7.32

Total Income

12867.73 10117.61

Expenses:

-

Cost of Material Consumed

11889.98 8618.24
-

Purchase of Stock-in Trade

- -
-

Other Operating & Manufacturing Cost

80.52 50.71
-

Changes in Inventories

(1282.56) (377.01)
-

Employee benefits Expenses

328.74 120.24
-

Finance Costs

309.76 292.07
-

Depreciation and Amortization Expenses

267.32 103.72
-

Other Expenses

135.30 87.10

Total Expenses

11729.08 8895.04

Profit / (Loss) before exceptional and extra-

1138.66 1,222.57

ordinary Items and tax

Prior Period Items

- 3.51

Profit / (Loss) after Extra Ordinary Items

1138.66 1,219.06

PARTICULARS

STANDALONE -

STANDALONE -

FINANCIAL

FINANCIAL

STATEMENTS-YEAR

STATEMENTS-YEAR

ENDED

ENDED

MARCH 31, 2025

MARCH 31, 2024

and before tax

Tax Expense:

328.25

333.89

A)

Current Income Tax

315.15

337.58

B)

Deferred Tax (Assets)/Liabilities

13.10

(3.70)

Profit / (Loss) After Tax

810.40

885.17

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company considers employees as its vital and most valuable assets. Your Company considers manpower as its assets and understands that people have been driving force for growth and expansion of the Company. As on March 31, 2025, there were 102 permanent employees employed by the Company. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

KEY FINANCIAL RATIOS:

Sr.

Ratio

Numerator

Denominator

As at

As at

%

Reason for variance

=LEFT>No.

March

March Change

31,

31,

2025

2024
1

Debtors

Net credit

Average

4.11

3.24

26.72%

Since Companys collection

Turnover

Sales

Trade

of accounts receivable is

(Trade

Receivable

efficient which implies

Receivable

increase in Debtor

Ratio) (In

Turnover ratio comparing

times)

to last year
2

Inventory

Cost of

Average

4.15

7

-40.73%

Introduction of new

Turnover

Goods Sold

Inventory

products and maintaining

ratio (In

stocks for the same is the

times)

cause of increase in
inventory Turnover ratio
3

Interest

Earnings

Interest

4.68

5.19

-9.83%

In FY 2024-25, Company

Coverage

Before

Expense

has made addition in fixed

Ratio

Interest and asset which leads to high
Taxes depreciation comparing to
last year which leads to
lower EBIT
4

Current

Current

Current

2.05

1.33

54.88%

The company has more

ratio (In

Assets

Liabilities

current assets relative to its

times)

current liabilities,
suggesting a stronger
ability to cover short-term
debts.
5

Debt-Equity

Total Debt

Shareholders

0.47

2.36

-80.06%

Due to increase in

Sr.

Ratio

Numerator

Denominator

As at

As at

% Reason for variance

No.

March

March

Change

31,

31,

2025

2024

ratio (In Equity shareholder fund, Debt
times) Equity ratio reduced
comparing to last year
6 Return on

Net Profit

Shareholders

10.24%

36.76%

-72.15% In FY 2024-25, Company has
Equity

After Tax

Equity made addition in fixed asset
Ratio which leads to high
depreciation and lower net
profit.
7 Net Profit

Net Profit

Turnover

6.35%

8.76%

-27.44% In FY 2024-25, Company has
Ratio

After Tax

made addition in fixed asset
which leads to high
depreciation and lower net
profit
8 Return on

Earnings

Capital

17.72

31.98%

-44.59% In FY 2024-25, Company has
Capital

Before

Employed = made addition in fixed asset
employed

Interest and

Tangible Net which leads to high
(%)

Taxes

worth + depreciation and lower net
Debt + Lease profit
Liability

CAUTIONARY STATEMENT:

The content in this Management Discussion and Analysis may contain "Forward Looking Statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future/ likely events or circumstances.

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