Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q2 FY2023 Earnings Presentation
30 slides from Dp Wires's earnings presentation, Dec 6, 2022
Slide 1: DP Wires Limited Investor Presentation Q2FY23
DP WIRES LIMITED INVESTOR PRESENTATION Q2FY23 (DECEMBER)
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 1 Key Highlights – Q2 & H1 FY23 2 Overview of the Company 3 Business Strength & Growth Strategies 4 Financial Performance
Slide 4: Key Highlights
Key Highlights Revenue EBITDA Profit After Tax Steel Wire Sales Q2FY23 Rs 2,837 Mn Rs 117 Mn Rs 90 Mn 21,008 MT 115% YoY 41% YoY 51% YoY 37% YoY 42% QoQ 10% QoQ 19% QoQ 24% QoQ Revenue EBITDA Profit After Tax Steel Wire Sales Net Debt H1FY23 Rs 4,839 Mn Rs 224 Mn Rs 166 Mn 37,999 MT NIL 77% YoY 19%
Slide 5: Business Updates
Business Updates ➢ Highest ever quarterly revenue, backed by robust volume growth of 37% YoY ➢ However, profitability (EBITDA margin) was impacted due to higher priced inventory of raw material and inflationary other input costs like power, etc. ➢ Despite challenging environment, Net Debt has been r
Slide 6: Financial Highlights – Q2FY23
Financial Highlights – Q2FY23 Particulars (Rs in Mn) Q2FY23 Q2FY22 Y-o-Y (%) Q1FY22 Q-o-Q (%) H1FY23 H1FY22 Y-o-Y (%) Net Revenue 2,837 1319 115% 2,002 42% 4,839 2740 77% Total Expenses 2,720 1236 1,895 4,615 2551 EBITDA 117 83 41% 107 10% 224 189 19% EBITDA Margin 4.1% 6.3% -218 5.3% -120 4.6% 6.9%
Slide 7: Company Overview
Company Overview
Slide 8: About DP Wires
About DP Wires • Established in the year 1998, DP Wires is India’s one of the leading Vision manufacturers and suppliers of Steel wires, and Plastic films which find Our vision is to be the leading player in the wire business its application in industries like Oil & Gas, Power, Environment, Civil, b
Slide 9: Organization Structure
Organization Structure Management of DP Wires Ltd Managing Director Whole-time Director Non-Executive Director Independent Director Ms. Suhani Kataria Mr. Praveen Kataria Mr. Arvind Kataria Mr. Kantilal Kataria Mr. Anilkumar Mehta Mrs. Madhubala Jain (Woman Director) DP Wires Limited 9
Slide 10: Experienced Management at the Helm
Experienced Management at the Helm • The genius behind the DP wires, currently working as the Non-Executive Director of the company Mr. Kantilal Kataria, • Graduated as BE Mechanical from GSITS Indore (M.P.) Non-Executive Director • Having experience of 50+ Years in steel wires and plastic products
Slide 11: Ongoing Growth Journey
Ongoing Growth Journey 1997-98 2012-13 2020-22 Incorporation of D P Gross turnover DP Wires Ltd Migrated to Wires Pvt. Ltd crossed Rs 100 Cr the Mainboard of NSE platform from NSE SME platform on 17-Jan-20. 2003-04 2017-18 2001-02 Installed Capacity Started with the DP Wires Ltd went Commencement of
Slide 12: Wide-spread Distribution Network / Showcasing our Capabilities
Showcasing our Capabilities Installed Capacity Metro, Bullet Train & NHAI Key Segments Revenue CAGR* projects >84,000 MT Steel Wires & 30% Approved Supplier Plastic Films Wide-spread Distribution Network Centralized manufacturing Branch Network Product portfolio EBITDA CAGR* facility to cater to pan
Slide 13: Company’s State-of-the-art Facilities
Company’s State-of-the-art Facilities Integrated Facilities Under One Roof Sourcing of raw material ➔ Pickling ➔ Wire Drawing ➔ Stranding ➔ Inspection ➔ Packing & Storage Wire Rod • Sourcing – TATA Steel, JSW, Electro steel Inspection Surface Treatment • 94,000 MT capacity of Wires and Plastic Sheet
Slide 14: Continued Focus on Capacity Expansion
Continued Focus on Capacity Expansion Strengthening Capacities to enable Growth Capacity in MT Wire Division ~3x in 5 years 10,000 Plastic Division ~2x in 5 years Utilisation 72% (FY22) - headroom for growth Commissioned additional capacity of 80,000 4,000 MTPA, in 5,443 Oct-22 28,304 FY17 FY22 Capa
Slide 15: Strategically Located – Close to all demand centers
Strategically Located – Close to all demand centers Centrally Located Manufacturing Plant that can cater to Northern and Southern Markets Delhi Noida In between India's major metro cities i.e., Mumbai & Delhi Ratlam UAE Ahmedabad Kolkata Indore Bangladesh Mumbai Widespread distribution network Hyder
Slide 16: Steel Products - Wide Product Portfolio
Steel Products - Wide Product Portfolio LRPC strands Induction Tempered Wire Features Features Quality & Reliability • Low Relaxation Pre-Stressed • Spring wire is a type of wire which Concrete Steel Strands which are is known for its property of used in pre-stressing of concrete for offering high w
Slide 17: Plastic Films - Wide Product Portfolio
Plastic Films - Wide Product Portfolio Geomembrane Sheet Pond Lining Films Greenhouse Films Features Features Features • Stellar surface finish • Highly flexible in nature, • Manufacturing of this being used as a shield sheet keeping in mind • Available in single from contamination of industry marke
Slide 18: 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 Authority of India Corpo
Slide 19: Growth Strategies
Growth Strategies Maximum Utilization of Current capacity to Expanding Market – Deepening Existing help with the growth in the Medium Term Relationships + Newer Geographies Inorganic Growth Strategy to be pursued for Product/Capacity Expansion – Possible Medium to Long Term Growth Expansion on Owned
Slide 20: Steel Sector Opportunities
Steel Sector Opportunities 7.5% 120 MT # 13.5 MT # 6% India’s steel demand growth Crude Steel Production in India in Export of Finished Steel from India India’s Steel Sector CAGR for in 2022* FY2022* in FY2022* past 5 years* 10% 300 MT # US$ 100 Bn Expected Growth Rate for Production capacity of Ste
Slide 21: Strength, Weakness, Opportunities and Threat Analysis
Strength, Weakness, Opportunities and Threat Analysis • Strong and proven track record of delivering growth • Competition from larger established through innovation peers • Resilient business model that has withstood multiple • Players from unorganised sector pose business cycles price challenges in
Slide 22: Financial Highlights
Financial Highlights
Slide 23: Key highlights - FY22
Key highlights - FY22 Revenue Maiden Dividend ▲ Rs. 6,124 Mn up by 31.2% YoY Rs. 1 per share (10% of Face Value) EBITDA Healthy Return Ratios ▲ Rs. 398 Mn with 6.5% of EBITDA Margin ROCE 25% and ROE 19% Net Profit Net Debt to Equity ▲ Rs. 291 Mn with Margin of 4.7% YoY Stable at 0.1x DP Wires Limite
Slide 24: Key Financials
Key Financials Net Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 6,124 398 291 332 241 4,661 257 233 174 167 3,316 2,839 166 2,124 98 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 DP Wires Limited 24
Slide 25: Key Ratios
Key Ratios Debt/Equity (X) ROE (%) & ROCE (%) Working Capital (days) 26.9% 80 78 25.7% 24.9% 76 25.5% 75 23.2% 67 0.3x 60 58 21.2% 52 0.1x 0.1x 19.6% 19.1% 19.9% 50 49 0.0x 0.0x 16.9% 36 35 35 30 21 14 15 11 6 3 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22* Mar-19 Mar-20 Mar-21 Mar-22 Sep-22* Mar-19 Mar-20 Ma
Slide 26: Profit & Loss Highlights
Profit & Loss Highlights Particulars (Rs in Mn) FY19 FY20 FY21 FY22 H1FY23 Net Revenue 3,316 2,839 4,667 6,124 4,839 Total Expenses 3,059 2,606 4,335 5,726 4,615 EBITDA 257 233 332 398 224 EBITDA Margin 7.7% 8.2% 7.1% 6.5% 4.6% Depreciation 16 20 22 25 16 Interest Cost 23 13 11 21 8 Other Income 25
Slide 27: Balance Sheet Trend
Balance Sheet Trend Liabilities (Rs Mn) FY21 FY22 H1FY23 Assets (Rs Mn) FY21 FY22 H1FY23 Total Equity 1,227 1,518 1,671 Non-Current Assets 260 297 306 Share Capital 136 136 136 PPE 169 184 166 Other Equity 1,091 1,382 1,535 Capital WIP - - - Non-Current Liabilities 36 28 10 Current Assets 1,277 1,66
Slide 28: Production & Sales Trend
Production & Sales Trend Wire Division Plastic Division 64,536 64,249 2,527 2,478 48,322 48,205 44,615 44,529 2,297 2,285 2,206 2,128 FY20 FY21 FY22 FY20 FY21 FY22 Production (MT) Sales (MT) Production (MT) Sales (MT) DP Wires Limited MT = Metric Tonnes 28
Slide 29: Stock Information | Declared Maiden Dividend in FY22
Stock Information | Declared Maiden Dividend in FY22 1 year Stock Performance (Price-Volume) 480 400 Share Holding Pattern 420 (as on Sept ’22) 360 300 Others 12.3% 300 Individual ('000) 240 200 Investors 17.3% 180 120 100 60 Promoters 70.4% 0 0 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-2
Slide 30: Thank You
THANK YOU 16-18A, Industrial Estate, Ratlam – 457001 B-612/A, 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