Dynamic Cables Ltd (DYCL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you have been connected to Dynamic Cables Q2 FY '27 earnings conference call. Please stay connected, the conference will begin shortly.
Moderator: Ladies and gentlemen, good day, and welcome to Dynamic Cables Limited Q2 FY '27 Earnings Conference Call hosted by PhillipCapital (India) Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Natasha Jain from PhillipCapital (India) Private Limited. Thank you, and over to you, ma'am.
Natasha Jain (PhillipCapital (India) Private Limited): Thank you, madam. Good afternoon, everyone. On behalf of PhillipCapital, I welcome all of you to the second quarter FY '27 earnings conference call of Dynamic Cables Limited, India. From the management today, we have Mr. Ashish Mangal, Managing Director; Mr. Murari Lal Poddar, Chief Financial Officer; and Mr. Govind Saboo, IR Advisor. I request the management to give their opening remarks, post which we'll open the floor for Q&A. Thank you, and over to you, sir.
Ashish Mangal (Dynamic Cables Limited): Good afternoon, everyone. I, Ashish Mangal, Managing Director of Dynamic Cables Limited, I extend a warm welcome to all of you to our Q2 and H1 FY '27 earnings call. We have continued to build our growth momentum during the first half of FY '27, supported by strong industry demand, disciplined execution and our focus on operational efficiency. Our performance reflects the resilience of our business and our ability to navigate a dynamic operating environment. A key milestone during the period was installation of our plant and machinery at our new manufacturing facility. We expect this facility to start contributing from the second half of the year, strengthening our manufacturing capabilities and supporting our next phase of growth. The outlook for the power infrastructure sector remains encouraging, driven by investments in transmission and distribution, renewable energy and industrial development. We continue to focus on expanding our market reach, strengthening customer relationships and capitalizing on emerging opportunities across domestic and international markets. The export market is also expected to gain momentum as global macros normalize. While commodity price volatility and geopolitical developments continue to influence the business environment, our emphasis remains on disciplined execution, prudent working capital management and operational excellence. With a healthy order pipeline, expanding manufacturing capabilities and favorable industry tailwinds, we remain focused on sustaining our growth momentum and creating long-term value to our stakeholders. With that, I would like now to invite our CFO to take you through the financial highlights for the quarter and half year. Thank you.
Murari Lal Poddar (Dynamic Cables Limited): Thank you, MD, sir. I will take you through the key financial highlights for H1 FY '27. Revenue
Murari Lal Poddar (Dynamic Cables Limited): 31% Y-o-Y to Rs. 712 crore as compared with Rs. 543 crore in H1 FY26. Operating profit increased by 29% to Rs. 74.3 crore with operating margin of 10.44% while profit after tax grew by 24% to Rs. 47.1 crore. Customer-wise con contribution to revenue in H1 FY27 was as follows: Government 23%, Private 69%, Export 8%. Receivable days as on 30th September, 2026 were at record low, less than 60 days, on cum-GST sales. Our order book stood approximately at Rs. 829 crore, providing healthy revenue visibility for the coming quarters. Thank you. We are now open for questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Vidhi Trivedi from Asian Market Securities. Please go ahead.
Vidhi Trivedi (Asian Market Securities): Hi sir, thank you for the opportunity. Got a couple of questions. First on the finance cost. So, our finance cost has increased almost to 4.2 crores despite, you know, borrowings declining quarter on a quarterly basis. So, just wanted to check what's driving this increase and how can we expect the finance cost to move forward from here once our new facility ramps up?
Ashish Mangal (Dynamic Cables Limited): Yeah. So, with this basically finance cost is the the debt figure which you are talking about is a a per on a date figure actually and finance cost is generally levied on the average working capital utilization. And also there are some vendor financing levies which we get under the finance cost. So, all in all the finance cost should remain below 15% is what we have guided and we have always maintained that we are with the the the cost 15% of the EBITDA, so just to clarify. So, it should It is as a as a matter of fact, or as a corporate discipline, it should not increase to more than 15% of the EBITDA. That is what is the philosophy of managing the finance cost.
Vidhi Trivedi (Asian Market Securities): And sir with respect to the new facility, it will again remain the same, 15% of the EBITDA? Is my understanding correct?
Ashish Mangal (Dynamic Cables Limited): Yes, absolutely.
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