Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q1 FY2024 Earnings Presentation
27 slides from Dp Wires's earnings presentation, Aug 1, 2023
Slide 1: Investor Presentation Q1FY24
INVESTOR PRESENTATION Q1FY24
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by DP Wires Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, a
Slide 3: Table of Content
Table of Content 25 Years of Excellence & Building Competencies 01 Key Highlights – Q1FY24 02 Company Overview 03 Growth Drivers 04 Financial Performance 05 Q1FY2024 – Investor Presentation 3
Slide 4: 25 Years of Excellence and Building Competencies
25 Years of Excellence and Building Competencies… 2019 - 2023 • Turnover crossed Rs 1,000 Cr in FY23 • Wire Division capacity increased to 84,000 MT • Forayed into export markets – Bangladesh, USA and Brazil • Migrated to NSE Mainboard in Jan-20 2008 - 2018 • Turnover crossed Rs 200 Cr in FY18 • IPO
Slide 5: Continuing in Q1FY24 - Robust Performance
…Continuing in Q1FY24 - Robust Performance REVENUE (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 33% 45% 46% 155 111 2,657 2,002 107 76 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 STEEL WIRE SALES (in MT) Recommended Dividend 47% Healthy Return Ratios (FY2023) ROCE - 29.7% and ROE - 21.4% 24,907 16,990 FY23 Long
Slide 6: Business Highlights – Q1FY24
Business Highlights – Q1FY24 Financial Highlights ▪ Revenue grew by 33% Y-o-Y to Rs 2,657 Mn in Q1FY24 ▪ Profitability improved on account of Company’s effective cost management and operational efficiency. EBITDA and PAT Margins improved to 5.8% and 4.2% respectively in Q1FY24 ▪ EBITDA grew 45% Y-o-
Slide 7: Financial Highlights – Q1FY24
Financial Highlights – Q1FY24 Particulars (Rs in Mn) Q1FY24 Q1FY23 Y-o-Y (%) Q4FY23 Q-o-Q (%) FY23 Y-o-Y (%) Net Revenue 2,657 2,002 33% 3,865 -31% 12,145 98% Total Expenses 2,502 1,895 3,668 11,605 EBITDA 155 107 45% 197 -21% 540 36% EBITDA Margin 5.8% 5.3% 49 bps 5.1% 74 bps 4.4% Depreciation 10 8
Slide 8: Company Overview
Company Overview Q1FY2024 – Investor Presentation 8
Slide 9: About DP Wires
About DP Wires ▪ Established in the year 1998, DP Wires is India’s one of the leading manufacturers and suppliers of Steel wires, and Plastic films which find its application in industries like Oil & Gas, Power, Environment, Civil, Energy, Automobile, Infrastructure etc. ▪ Manufacturing facilities w
Slide 10: Experienced Management at the Helm
Experienced Management at the Helm Mr. Kantilal Kataria, Non-Executive Director ▪ The genius behind the DP wires, currently working as the Non-Executive Director of the company ▪ Graduated as BE Mechanical from GSITS Indore (M.P.) Gold Medalist in the year 1970. ▪ Having experience of 50+ Years in s
Slide 11: Company's State-of-the-art Facilities
Company’s State-of-the-art Facilities ▪ Sourcing – TATA Steel, JSW, Electro steel ▪ 84,000 MT capacity of Wires ▪ Growth - Sufficient space to plan future capacity expansion with minimum capex Integrated Facilities Under One Roof Sourcing of raw material ➔ Pickling ➔ Wire Drawing ➔ Stranding ➔ Inspe
Slide 12: Strategically Located – Close to all demand centers
Strategically Located – Close to all demand centers Domestic Centrally Located Manufacturing International Plant that can cater to Northern and USA Southern Markets Delhi Nepal Noida In between India's major metro cities i.e., Mumbai & Delhi Ratlam Ahmedabad Kolkata Indore Bangladesh Widespread dist
Slide 13: Steel Products - Wide Product Portfolio
Steel Products - Wide Product Portfolio LRPC Strands Features Uses ▪ Low Relaxation Pre-Stressed Concrete Steel ▪ To prestress the concrete in different Quality & Reliability Strands which are used in pre-stressing of types of construction works concrete for different kind of construction ▪ Use in H
Slide 14: Long Standing Relationships with Marquee Clients
Long Standing Relationships with Marquee Clients Approved Supplier in Approved Supplier in Metro Supplier of most of the mall Bullet Train Project Projects of India constructions in Mumbai, Delhi National Highways Nuclear Power Kolkata Metro Gujarat Metro Rail Madhya Pradesh Metro J Kumar Infra Auth
Slide 15: Business Strength
Business Strength Q1FY2024 – Investor Presentation 16
Slide 16: Well Placed to Continue the Growth Trajectory
Well Placed to Continue the Growth Trajectory Capacity Expansion Market Expansion Domestic Market – Deepening relations with Planned capacity expansion by ~16,000 MT to Existing clients ~100,000 MT by H1FY24 Export Market - Foraying into Newer Geographies Product (LRPC) usage increasing in construct
Slide 17: Industry Drivers
Industry Drivers • The government's capital drive contributed in maintaining the capacity utilization rate for the steel sector at a forecast of 80% in FY2024, regardless of assigning of some new expansion projects • Considering that the Central Government's capital expenses (capex) are anticipated
Slide 18: SWOT Analysis
SWOT Analysis STRENGTH WEAKNESS • Strong and proven track record of delivering growth through innovation S • Competition from larger established peers • Resilient business model that has withstood • Players from unorganised sector pose price multiple business cycles challenges in the medium term • D
Slide 19: Financial Highlights
Financial Highlights Q1FY2024 – Investor Presentation 20
Slide 20: Key Operating Metrics
Key Operating Metrics Capacity (MT) - 3x in 5 Years Consistently Growing Sales Volume 84,000 85,943 67,347 50,503 46,737 28,304 FY17 FY23 FY20 FY21 FY22 FY23 Q1FY2024 – Investor Presentation 21
Slide 21: Key Financials
Key Financials NET REVENUE (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 410 540 12,145 398 291 332 241 6,124 257 233 174 167 4,661 3,316 2,839 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Q1FY2024 – Investor Presentation 22
Slide 22: Key Ratios
Key Ratios DEBT/EQUITY (X) ROE (%) & ROCE (%) WORKING CAPITAL (DAYS) 80 29.7% 76 75 25.7% 24.9% 25.5% 67 0.3x 23.2% 60 0.1x 0.1x 50 52 21.4% 49 0.0x 0.0x 21.2% 19.6% 19.1% 16.9% 36 35 35 30 26 21 14 16 11 6 7 3 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-2
Slide 23: Profit & Loss Highlights
Profit & Loss Highlights Particulars (Rs in Mn) FY19 FY20 FY21 FY22 FY23 Net Revenue 3,316 2,839 4,667 6,124 12,145 Total Expenses 3,059 2,606 4,335 5,726 11,605 EBITDA 257 233 332 398 540 EBITDA Margin 7.7% 8.2% 7.1% 6.5% 4.4% Depreciation 16 20 22 25 35 Interest Cost 23 13 11 21 20 Other Income 25
Slide 24: Balance Sheet Trend
Balance Sheet Trend Liabilities (Rs Mn) Mar - 21 Mar - 22 Mar - 23 Assets (Rs Mn) Mar - 21 Mar - 22 Mar - 23 Total Equity 1,227 1,518 1,915 Non-Current Assets 260 297 341 Share Capital 136 136 136 PPE 169 184 199 Other Equity 1,091 1,382 1,779 Capital WIP - - - Non-Current 36 28 11 Liabilities Curre
Slide 25: Stock Information and Shareholding Pattern
Stock Information 1 year Stock Performance (Price-Volume) 700 5.0 Shareholding Pattern 4.5 (as on Jun ’23) 600 4.0 500 3.5 3.0 Public 400 25.3% (in Lakhs) 2.5 300 2.0 200 1.5 1.0 Promoters 100 74.8% 0.5 0 0.0 28-Jun-23 3-May-23 27-Jul-22 8-Feb-23 31-May-23 26-Jul-23 19-Oct-22 16-Nov-22 14-Dec-22 5-A
Slide 26: From the Management Desk
From the Management Desk…. “Appreciating for the team's dedication and adaptability, which have been instrumental in driving the company's performance during these challenging times. We are delighted with our strong financial performance in the first quarter of FY 2023-24. Our team's efforts and the
Slide 27: Thank You
Thank You 16-18A, Industrial Estate, Ratlam – 457001 A – 405, Kanakia Wallstreet, Andheri (East), Mumbai Ms. Krutika Maheshwari Ms. Pooja Sharma Company Secretary & Compliance Officer pooja.sharma@stellar-ir.com krutika@dpkataria.com +91-99309 53861 Investor Relations Mr. Vishal Mehta investors@dpwi