Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q4 FY2023 Earnings Presentation
29 slides from Dp Wires's earnings presentation, June 2023
Slide 1: DP Wires Limited Investor Presentation Q4FY23
DP WIRES LIMITED INVESTOR PRESENTATION Q4FY23 (JUNE 2023)
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 – Q4 & FY23 2 Overview of the Company 3 Business Strength & Growth Strategies 4 Financial Performance
Slide 4: Robust Performance Continued in FY23
Robust Performance Continued in FY23 Highest Ever Revenue Highest Ever Steel Wire Sales ▲ Rs. 12,145 Mn up by 98% YoY ▲ 85,394 MT up by 28% YoY Highest Ever EBITDA Healthy Return Ratios ▲ Rs. 540 Mn up by 36% YoY ▲ ROCE 29.7% and ROE 21.4% Highest Ever PAT Net Debt to Equity ▲ Rs. 410 Mn up by 41% Y
Slide 5: Continued Growth in Steel Wire Sales Volumes
Continued Growth in Steel Wire Sales Volumes Q-o-Q Sales Volume In MT Y-o-Y Sales Volume In MT 85,943 26,179 67,401 21,766 21,008 48,205 16,990 44,529 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY20 FY21 FY22 FY23 DP Wires Limited MT = Metric Tonnes 5
Slide 6: Business Highlights – Q4 & FY23
Business Highlights – Q4 & FY23 Financial Highlights ▪ Highest Ever Quarterly and Yearly Revenue, EBITDA and PAT in Q4FY23 and FY23 respectively ▪ Profitability improved by 162 bps Q-o-Q to 5% in Q4FY23. For the full year FY23, EBITDA margin lowered Y-o-Y due to the impact of inflationary input cost
Slide 7: Financial Highlights – Q4 & FY23
Financial Highlights – Q4 & FY23 Particulars (Rs in Mn) Q4FY23 Q4FY22 Y-o-Y (%) Q3FY22 Q-o-Q (%) FY23 FY22 Y-o-Y (%) Net Revenue 3,865 1,782 117% 3,442 12% 12,145 6,124 98% Total Expenses 3,668 1,690 3,322 11,605 5,726 EBITDA 197 92 114% 119 65% 540 398 36% EBITDA Margin 5% 5% 3% 4% 7% Depreciation
Slide 8: Company Overview
Company Overview
Slide 9: 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 10: 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 10
Slide 11: 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.) Gold Medalist in the year 1970. Non-Executive Director • Having experience of 50+ Years in s
Slide 12: Ongoing Growth Journey
Ongoing Growth Journey 1997-98 2012-13 2020-23 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 13: Wide-spread Distribution Network
Showcasing our Capabilities Installed Capacity Metro, Bullet Train & NHAI Key Segments Revenue CAGR* projects >84,000 MT Steel Wires & 38% Approved Supplier Plastic Films Wide-spread Distribution Network Centralized manufacturing Branch Network Product portfolio EBITDA CAGR* facility to cater to pan
Slide 14: 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 15: 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 Commissioned additional capacity of 84,000 4,000 MTPA, in Oct-22; totaling 5,443 to 84,000 MT 28,304 FY17 FY23 Planning to expand capacit
Slide 16: 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 Nepal Noida In between India's major metro cities i.e., Mumbai & Delhi Ratlam UAE Ahmedabad Kolkata Indore Bangladesh Mumbai Widespread distribution network
Slide 17: 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 18: 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 19: 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 J Kumar Infra Authority
Slide 20: 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 21: Steel Sector Opportunities
Steel Sector Opportunities ~11% 113 MT * # 109MT # 4.4MT ( by 27%) # 6% India’s steel demand Crude Steel Production in Finished Steel Production in Imports of Finished Steel India’s Steel Sector growth in 2023* India in Apr-Feb (22-23)* India in Apr-Feb (22-23)* from India in 9MFY23 CAGR for past 5
Slide 22: 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 23: Financial Highlights
Financial Highlights
Slide 24: Key Financials
Key Financials Net Revenue (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 410 12,145 540 291 398 332 241 6,124 257 174 167 233 4,661 3,316 2,839 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 DP Wires Limited 24
Slide 25: Key Ratios
Key Ratios Debt/Equity (X) ROE (%) & ROCE (%) Working Capital (days) 80 29.7% 75 76 25.7% 24.9% 67 25.5% 0.3x 23.2% 60 50 52 0.1x 0.1x 49 0.0x 0.0x 21.4% 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 26: 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 27: 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 Liabilities 36 28 11 Curre
Slide 28: Stock Information and Shareholding Pattern
Stock Information 1 year Stock Performance (Price-Volume) Shareholding Pattern 500 4.0 (as on Mar ’23) 450 3.5 400 3.0 350 Public 2.5 25.3% 300 (in Lakhs) 250 2.0 200 1.5 Promoters 74.8% 150 1.0 100 0.5 50 0 0.0 27-Jul-22 1-Jun-22 11-Jan-23 3-May-23 29-Jun-22 21-Sep-22 16-Nov-22 8-Feb-23 5-Apr-23 24
Slide 29: 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