Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q3 FY2024 Earnings Presentation
27 slides from Dp Wires's earnings presentation, Mar 12, 2024
Slide 1: Cover letter to stock exchanges
March 12th , 2024 To, To, Bombay Stock Exchange, National Stock Exchange of India Limited, Listing Department, Listing Department Exchange Plaza, C-1 Block-G, P.J. Tower, Dalal Street ,Fort, Bandra-Kurla Complex, Mumbai-400001 Bandra(E), Mumbai-400051 Sub: Investor Presentation Dear Sirs, With refer
Slide 2: Investor Presentation Q3 & 9MFY24
INVESTOR PRESENTATION Q3 & 9MFY24
Slide 3: 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 4: Table of Content
Table of Content 25 Years of Excellence & Building Competencies 01 Key Highlights – Q3 & 9MFY24 02 Company Overview 03 Growth Drivers 04 Financial Performance 05 Q3FY2024 – Investor Presentation 3
Slide 5: 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 100,000 MT • Forayed into export markets – Bangladesh, USA and Brazil • Migrated to NSE Mainboard in Jan-20 • Listed on BSE under Direct Listing category in Aug-
Slide 6: Key Financial Highlights
Key Financial Highlights Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 4,0 00 3,442 119 100 93 90 3,5 00 80 3,0 00 2,519 63 73 70 2,5 00 60 Q3FY24 2,0 00 50 40 1,5 00 30 1,0 00 20 500 10 0 0 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 9,0 00 8,280 7,904 265 400 344 260 300 8,0 00 350 329 250 7,0 00 300 6
Slide 7: Key Business Highlights
Key Business Highlights ▪ The overall pricing scenario at the domestic level has seen a downward shift which has impacted overall revenue and low sales during the quarter. ▪ 9MFY24 Steel Wires’ sales grew 5% YoY to 62,460 MT ▪ With our capacity expanded to 1,00,000 MT recently, we remain optimistic
Slide 8: Profit & Loss – Q3 & 9MFY24
Profit & Loss – Q3 & 9MFY24 Particulars (Rs Mn) Q3FY24 Q3FY23 Y-o-Y (%) Q2FY24 Q-o-Q (%) 9MFY24 9MFY23 Y-o-Y (%) Net Revenue 2,519 3,442 -27% 2,728 -8% 7,904 8,280 -5% Total Expenses 2,446 3,322 2,627 7,576 7,937 EBITDA 73 119 -39% 101 -28% 329 344 -4% EBITDA Margin 2.9% 3.5% -57 bps 3.7% -80 bps 4.
Slide 9: Company Overview
Company Overview Q3FY2024 – Investor Presentation 8
Slide 10: 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 11: 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 12: Company's State-of-the-art Facilities
Company’s State-of-the-art Facilities ▪ Sourcing – TATA Steel, JSW, Electro steel ▪ 100,000 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 ➔ Insp
Slide 13: 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 14: 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 15: 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 16: Business Strength
Business Strength Q3FY2024 – Investor Presentation 15
Slide 17: Well Placed to Continue the Growth Trajectory
Well Placed to Continue the Growth Trajectory Capacity Expansion Market Expansion • Domestic Market – Deepening relations with Expanded capacity by ~16,000 MT to ~100,000 MT Existing clients in H1FY24 • Export Market - Foraying into Newer Geographies Product (LRPC) usage increasing in construction.
Slide 18: 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 19: SWOT Analysis
SWOT Analysis STRENGTH WEAKNESS • Strong and proven track record of delivering growth through innovation • Competition from larger established peers • Resilient business model that has withstood multiple business cycles S • Players from unorganised sector pose price challenges in the medium term • D
Slide 20: Financial Highlights
Financial Highlights Q3FY2024 – Investor Presentation 19
Slide 21: Key Operating Metrics
Key Operating Metrics Capacity (MT) - 3x in 5 Years Consistently Growing Sales Volume 85,943 100,000 67,347 62,460 50,503 46,737 28,304 FY17 9MFY24 FY20 FY21 FY22 FY23 9MFY24 Q3FY2024 – Investor Presentation 20
Slide 22: Key Financials
Key Financials Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 410 540 12,145 398 291 265 7,904 332 329 241 6,124 233 167 4,661 2,839 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24 Q3FY2024 – Investor Presentation 21
Slide 23: Key Ratios
Key Ratios Debt/Equity (X) ROE (%) & ROCE (%) Working Capital (Days) 110 29.7% 100 25.7% 24.9% 90 23.9% 80 23.2% 80 76 0.1x 0.1x 0.1x 67 0.0x 70 0.0x 60 21.4% 60 5552 19.6% 52 19.1% 19.1% 50 49 16.9% 40 35 35 30 30 26 21 20 14 16 1614 6 7 10 3 0 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-20 Mar-21 Mar-2
Slide 24: Profit & Loss Highlights
Profit & Loss Highlights Particulars (Rs Mn) FY20 FY21 FY22 FY23 9MFY24 Net Revenue 2,839 4,667 6,124 12,145 7,904 Total Expenses 2,606 4,335 5,726 11,605 7,576 EBITDA 233 332 398 540 329 EBITDA Margin 8.2% 7.1% 6.5% 4.4% 4.2% Depreciation 20 22 25 35 30 Interest Cost 13 11 21 20 27 Other Income 23
Slide 25: Stock Information
Stock Information 1 year Stock Performance (Price-Volume) 750 9.0 Shareholding Pattern 700 8.0 (as on Dec ’23) Bonus 1:7 650 7.0 600 6.0 550 Public (in Lakhs) 5.0 500 25.2% 4.0 450 3.0 400 Promoters 2.0 74.8% 350 300 1.0 250 0.0 Mar-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 D
Slide 26: From the Management Desk
From the Management Desk…. “We appreciated the team's efforts and dedication, which were instrumental in driving the overall company's performance in challenging times. For the Nine Month period under review, globally the economies continued to face macro headwinds on account of slowdown in demand,
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 investors@dpwires.co.in +91-99309 53861 Investor Relations investors@dpwires.co.in Mr. V