Dp Wires Ltd. · NSE:DPWIRES
Dp Wires — Q2 & H1 FY24 Earnings Presentation
28 slides from Dp Wires's earnings presentation, Nov 14, 2023
Slide 1: Exchange filing cover letter for investor presentation
November 9th , 2023 To, To, National Stock Exchange of India Limited, Bombay Stock Exchange, Listing Department Exchange Plaza,C-1 Block-G, Listing Department, Bandra-Kurla Complex, P.J. Tower, Dalal Street ,Fort, Bandra(E) ,Mumbai-400051 Mumbai-400001 Sub: Investor Presentation Dear Sirs, With refe
Slide 2: Investor Presentation Q2 & H1FY24
INVESTOR PRESENTATION Q2 & H1FY24
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 – Q2 & H1FY24 02 Company Overview 03 Growth Drivers 04 Financial Performance 05 Q2FY2024 – 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 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 6: Key Financial Highlights
Key Financial Highlights Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA MARGIN PAT (Rs Mn) & PAT MARGIN 120 110 92 3.2% 3.3% 3.4 % 2,8 50 3.2 % 90 2,8 00 100 2,7 50 3.0 % 88 Q2FY24 2,7 00 117 90 2.8 % 91 2,6 50 86 2,6 00 2,837 80 101 90 2.6 % 2,728 84 2.4 % 2,5 50 70 2,5 00 82 2.2 % 2,4 50 80 2.0 % 60 2,4
Slide 7: Key Business Highlights
Key Business Highlights Financial Highlights ▪ Revenue grew by 11% Y-o-Y to Rs 5,385 Mn in H1FY24 ▪ Profitability improved on account of Company’s effective cost management and operational efficiency. EBITDA and PAT Margins improved to 4.8% and 3.7% respectively in H1FY24 ▪ EBITDA grew 14% Y-o-Y to
Slide 8: Profit & Loss – Q2 & H1FY24
Profit & Loss – Q2 & H1FY24 Particulars (Rs in Mn) Q2FY24 Q2FY23 Y-o-Y (%) Q1FY24 Q-o-Q (%) H1FY24 H1FY23 Y-o-Y (%) Net Revenue 2,728 2,837 -4% 2,657 3% 5,385 4,839 11% Total Expenses 2,627 2,720 2,502 5,129 4,615 EBITDA 101 117 -14% 155 -35% 256 224 14% EBITDA Margin 3.7% 4.1% - 5.8% - 4.8% 4.6% -
Slide 9: Company Overview
Company Overview QFY2024 – 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 Q2FY2024 – Investor Presentation 16
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. Deve
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 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 20: Financial Highlights
Financial Highlights Q2FY2024 – Investor Presentation 20
Slide 21: Key Operating Metrics
Key Operating Metrics Capacity (MT) - 3x in 5 Years Consistently Growing Sales Volume 85,943 100,000 67,347 50,503 46,737 44,301 28,304 FY17 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Q2FY2024 – Investor Presentation 21
Slide 22: Key Financials
Key Financials NET REVENUE (Rs Mn) EBITDA (Rs Mn) PAT (Rs Mn) 410 540 12,145 398 291 332 241 202 6,124 256 5,385 233 167 4,661 2,839 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Q2FY2024 – Investor Presentation 22
Slide 23: Key Ratios
Key Ratios DEBT/EQUITY (X) ROE (%) & ROCE (%) WORKING CAPITAL (DAYS) 109 110 104 29.7% 100 25.7% 24.9% 90 80 23.2% 80 76 70 67 0.1x 0.1x 0.1x 21.4% 60 0.0x 0.0x 60 19.6% 19.1% 52 50 49 16.9% 11.9% 40 35 35 33 30 28 30 26 9.5% 21 20 14 16 6 7 3 10 0 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-20 Mar-21 Ma
Slide 24: Profit & Loss Highlights
Profit & Loss Highlights Particulars (Rs in Mn) FY20 FY21 FY22 FY23 H1FY24 Net Revenue 2,839 4,667 6,124 12,145 5,385 Total Expenses 2,606 4,335 5,726 11,605 5,129 EBITDA 233 332 398 540 256 EBITDA Margin 8.2% 7.1% 6.5% 4.4% 4.8% Depreciation 20 22 25 35 20 Interest Cost 13 11 21 20 20 Other Income
Slide 25: Balance Sheet Trend
Balance Sheet Trend Liabilities (Rs Mn) Mar - 22 Mar - 23 Sep-23 Assets (Rs Mn) Mar - 22 Mar - 23 Sep-23 Total Equity 1,518 1,915 2,116 Non-Current Assets 297 341 354 Share Capital 136 136 136 PPE 184 199 209 Other Equity 1,382 1,779 1,981 Other Non-Current 1451 0 145 Non-Current Asset 28 11 11 Liab
Slide 26: Stock Information
Stock Information 1 year Stock Performance (Price-Volume) 725 9.0 Shareholding Pattern Bonus 1:7 (as on Sept ’23) 637 8.0 625 7.0 6.0 Public 525 25.3% (in Lakhs) 5.0 4.0 425 3.0 Promoters 2.0 74.8% 325 1.0 225 0.0 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oc
Slide 27: 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 28: 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