Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q1 FY2023 Earnings Presentation
30 slides from Dp Wires's earnings presentation, Jul 29, 2022
Slide 1: DP Wires Limited Investor Presentation Q1FY23
DP WIRES LIMITED INVESTOR PRESENTATION Q1FY23 (JULY)
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 – Q1FY23 2 Overview of the Company 3 Business Strength & Growth Strategies 4 Financial Performance
Slide 4: Key Highlights - Q1FY23
Key Highlights - Q1FY23 Revenue EBITDA Profit After Tax Rs 2,002 Mn Rs 107 Mn Rs 76 Mn 40.9% YoY 1.1% YoY Flat YoY 12.4% QoQ 16.4% QoQ 8.9% QoQ Steel Wire Division Plastic Division Sales Sales Capacity Utilization 16,990 MT 1,371 MT 85% 74% (Q1FY22) 15% YoY 62% YoY DP Wires Limited 4
Slide 5: Business Updates – Q1FY23
Business Updates – Q1FY23 ➢ Highest ever quarterly revenue, backed by volume growth of 15% YoY and improved realisations ➢ However, profitability was impacted on account of rising raw material prices (mainly steel) amidst inflationary input cost scenario; Margins were maintained on a sequential basi
Slide 6: Financial Highlights – Q1FY23
Financial Highlights – Q1FY23 Particulars (Rs in Mn) Q1FY23 Q1FY22 YoY (%) Q4FY22 QoQ (%) FY22 YoY (%) Net Revenue 2,002 1,421 40.9% 1,782 12.4% 6,124 31.4% Total Expenses 1,895 1,315 1,690 5,726 EBITDA 107 106 1.1% 92 16.4% 398 22.2% EBITDA Margin 5.3% 7.4% 5.2% 6.5% Depreciation 8 5 7 25 Interest
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: Showcasing our Capabilities
Showcasing our Capabilities Installed Capacity Metro, Bullet Train & NHAI Key Segments Revenue CAGR* projects >80,000 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 • 80,000 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 80,000 5,443 28,304 FY17 FY22 Capacity utilization stands below the optimum level of over 90
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 Indore Kolkata Mumbai Widespread distribution network Hyderabad in all
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. 70 Mn with Margin of 4.7% YoY Stable at 0.1x DP Wires Limited
Slide 24: Key Ratios
Key Ratios Revenue from Operations EBITDA (Rs Mn) & Margin (%) PAT (Rs Mn) & Margin (%) (Rs Mn) 8.2% 5.9% 6,124 7.8% 7.7% 398 291 5.3% 5.2% 7.1% 332 6.5% 4.6% 4.7% 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 EBITDA EBI
Slide 25: Key Ratios
Key Ratios Debt/Equity (X) ROE (%) & ROCE (%) Working Capital (days) 24.9% 82 80 25.5% 25.7% 75 76 23.0% 23.2% 67 0.3x 60 0.1x 0.1x 0.1x 21.2% 19.6% 52 19.1% 50 49 0.0x 48 46 16.9% 15.2% 36 35 30 21 12 14 11 6 3 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROE ROCE Debt
Slide 26: Annual Profit & Loss Highlights
Annual Profit & Loss Highlights Particulars (Rs in Mn) FY18 FY19 FY20 FY21 FY22 Net Revenue 2,124 3,316 2,839 4,667 6,124 Total Expenses 1,958 3,059 2,606 4,335 5,726 EBITDA 166 257 233 332 398 EBITDA Margin 7.8% 7.7% 8.2% 7.1% 6.5% Depreciation 12 16 20 22 25 Interest Cost 13 23 13 11 21 Other Inco
Slide 27: Annual Balance Sheet Trend
Annual Balance Sheet Trend Liabilities (Rs Mn) FY20 FY21 FY22 Assets (Rs Mn) FY20 FY21 FY22 Total Equity 986 1,227 1,518 Non-Current Assets 266 260 297 Share Capital 136 136 136 PPE 152 169 184 Other Equity 850 1,091 1,382 Capital WIP - - - Non-Current Liabilities 32 36 28 Current Assets 985 1,277 1
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) 450 1,400 Share Holding Pattern (as on Jun ’22) 400 1,200 Others 350 10.7% 1,000 300 Individual 800 Investors 250 18.9% 200 600 150 400 100 200 Promoters 50 70.4% 0 0 Jul-21 Aug-21 Sep-21 Oct-21 Oct-21 Nov-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