DP WIRES LIMITED - Archives.nseindia

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DP WIRES LIMITEDINVESTOR PRESENTATIONQ4 & FY22 (JUNE 2022)

DisclaimerThis presentation and the accompanying slides (the “Presentation”), which have been prepared by DP Wires Limited (the “Company”), have beenprepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for anysecurities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering ofsecurities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Companymakes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness,fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of theinformation that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expresslyexcluded.Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects thatare individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and aresubject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but arenot limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry inIndia and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth andexpansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s marketpreferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievementscould differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update anyforward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in thisPresentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.DP Wires Limited2

Table of Content1Overview of the Company2Key Business Strengths3Growth Strategies4Financial Performance

About DP Wires Established in the year 1998, DP Wires is India’s one of the leadingmanufacturers and suppliers of Steel wires, and Plastic films which findits application in industries like Oil & Gas, Power, Environment, Civil,Energy, Automobile, Infrastructure etc. Manufacturing facilities with a capacity of over 80,000 MT per annum issituated in a single premise in Ratlam, Madhya Pradesh ISO certified range of products that cater to marquee clients such asHindalco, L&T, APCO, Gannon Dunkerley, Simplex Infrastructures, VasconEngineers and such othersVisionOur vision is to be the leading player in the wire businessby providing a complete solution, adopting cutting-edgetechnologies, and ensuring long-term, inclusive growth forall the stakeholders.MissionConsistent with the vision and values of the founder ShriKantilalji Kataria, DP Wires strives to Strengthen India’sInfrastructure base by providing the best quality productsmanufactured using the best of technology, therebycreating a value for all the stakeholdersCore Values DP Wires LimitedCustomized economical solutionsHigh quality products and servicesRelationship based EthosEconomical use of resources4

Organization StructureManagement of DP Wires LtdManaging DirectorWhole-time DirectorMr. Praveen KatariaMr. Arvind KatariaDP Wires LimitedNon-Executive DirectorMs. Suhani Kataria(Woman Director)Mr. Kantilal KatariaIndependent DirectorMr. Anilkumar MehtaMrs. Madhubala Jain5

Experienced Management at the HelmMr. Kantilal Kataria,Non-Executive DirectorMr. Praveen Kataria,Managing DirectorMr. Arvind Kataria,Whole-Time Director &CFODP Wires Limited The genius behind the DP wires, currently working as the Non-Executive Director of the company Holds the degree in B.E.(Production) from Akola Graduated as BE Mechanical from GSITS Indore (M.P.)Having experience of 50 Years in steel wires and plastic productsHuge credit goes to Mr. Kataria for making the company reach this position.Having experience of 27 Years in Production and Quality Control departmentsActively involved in improving the technology, cost reduction in producing of steel wire and plasticdivisionPost Graduated as Master in CommerceHaving experience of 22 Years in promotion and quality control at organizationPersonal attention to ensure that the company gets worldwide reach for its high-qualitymanufacturing products6

Ongoing Growth Journey1997-98Incorporation of D PWires Pvt. Ltd2001-02Commencement ofproduction of Wiredrawing of StainlessSteel, Alloy Steel,Polyethene andpolyethene lay flattubing.FY97–FY02DP Wires Limited2020-22DP Wires Ltd Migrated tothe Mainboard of NSEplatform from NSE SMEplatform on 17-Jan-20.2012-13Gross turnovercrossed Rs 100 Cr2003-04Started with theproduction of LRPC StrandInstalled Capacityreached 25,000 MTin Wire Division &5,400 MT in PlasticDivision2006-07Started with the Wind farmin JamnagarFY03–FY082017-18DP Wires Ltd wentpublic in FY18Increased the InstalledCapacity to 28,000 MTin FY16 in Wire DivisionFY09–FY14FY15–FY19Increased the installedcapacity to 80,000 MT inWire Division & 10,000MT in Plastic DivisionFY20–FY227

Showcasing our CapabilitiesMetro, Bullet Train & NHAIprojectsVast Sectoral Experience30 yearsEmployee Strength200 Revenue CAGR*Approved SupplierSteel Wires &Plastic Films30%Branch NetworkProduct portfolioEBITDA CAGR*8 CitiesWide Range24%Caters to over100 ClientsApplicationsNew AgeBuilding MaterialQMS CertificationISO 9001-2015Resilient FinancialCore StrengthCentralized manufacturingfacility to cater to panIndia demandWide-spread Distribution Network 80,000 MTKey SegmentsInnovative ProductsInstalled CapacityPAT CAGR*31%Healthy Return Ratios19% ROE &25% ROCEDebt Free0.1x*FY18-FY22DP Wires Limited8

Company’s State-of-the-art FacilitiesIntegrated Facilities Under One RoofSourcing of raw material Pickling Wire Drawing Stranding Inspection Packing & StorageWire Rod Sourcing – TATA Steel, JSW, Electro steelSurfaceTreatmentInspection 80,000 MT capacity of Wires and Plastic Sheets Growth - Sufficient space to plan future capacity expansionDrawingwith minimum capexStrandingDP Wires Limited9

Continued Focus on Capacity ExpansionStrengthening Capacities to enable GrowthCapacity in MTWire Division 3x in 5 yearsPlastic Division 2x in 5 yearsUtilisation72% - headroom for growth10,00080,0005,44328,304FY17FY22Capacity utilization stands below the optimum level of over 90%, thereby providing headroom for growth in the near termDP Wires Limited10

Strategically Located – Close to all demand centersCentrally Located ManufacturingPlant that can cater to Northernand Southern erabadIn between India's major metrocities i.e., Mumbai & DelhiKolkataWidespread distribution networkin all the key markets in IndiaExporting to UAE marketDP Wires Limited11

Steel Products - Wide Product PortfolioQuality & ReliabilityISI-Certified ProductsPan-India DeliveryEasy LogisticsBetter PricingDP Wires LimitedLRPC strandsInduction Tempered WireFeatures Low Relaxation Pre-StressedConcrete Steel Strands which areused in pre-stressing of concrete fordifferent kind of construction works Better build which in turn assuresthe safety and longevityFeatures Spring wire is a type of wire whichis known for its property ofoffering high wear resistanceUses To prestress the concrete in different Features Heat Resistant Smooth Surfacetypes of construction worksUses Suspension springs for metrotrains, shock absorbers ofvehicles and even in theemergency brakes of large vehicleUses To make railway sleepers To make PCC PolesSteel Wire12

Plastic Films - Wide Product PortfolioGeomembrane SheetPond Lining FilmsGreenhouse FilmsFeaturesFeaturesFeatures Manufacturing of this Stellar surface finishAvailable in singletextured surfaceSupreme shear strengthFeatures Strong hold from tear orabrasion Has high demand in Agrisector, also providessuperior germinationand faster plant growthExcellent durabilityHigh resilienceMaintains soil moistureAgro HDPE FilmsDP Wires Limited Highly flexible in nature,being used as a shieldfrom contamination ofimpurities.Available in differentlength and thickness.Features Weather resistanceResistant to punctureEnhanced durabilityThis film prevents fromcontamination ofimpurities, improveswater availability overlonger period Perfect finish Optimum flexibilitysheet keeping in mindindustry markedstandard. Highlyresistant to UV and water Available in variouslengths and thickness. Withstands diverseweather conditions Highly stretchableEasy to tear by means ofcutting toolsLDPE Canal LiningFilms13

Long Standing Relationships with Marquee ClientsApproved Supplier inBullet Train ProjectApproved Supplier in MetroProjects of IndiaSupplier of most of the mallconstructions in Mumbai, DelhiNational HighwaysAuthority of IndiaNuclear PowerCorporation of IndiaKolkata MetroRailwaysGujarat Metro RailCorporationMadhya PradeshMetro Rail CorporationDelhi MetroRail CorporationMaharashtra MetroRail CorporationNational ThermalPower CorporationSimplexInfrastructureLarsen & ToubroDP Wires Limited14

Growth StrategiesMaximum Utilization of Current capacity tohelp with the growth in the Medium TermExpanding Market – Deepening ExistingRelationships Newer GeographiesInorganic Growth Strategy to be pursued forMedium to Long Term GrowthProduct/Capacity Expansion – PossibleExpansion on Owned LandDP Wires Limited15

Steel Sector Opportunities7.5%120 MTIndia’s steel demand growthin 2022*Crude Steel Production in India inFY2022*10%300 MTExpected Growth Rate forSteel Sector*Production capacity of Steel by 2030-31 as per the National Steel Policy 2017*DP Wires Limited#13.5 MT#Export of Finished Steel from Indiain FY2022*#6%India’s Steel Sector CAGR forpast 5 years*US 100 BnProposed capital spending willgrow by 35.4% year on year In the coming years, Infrastructure spending and a modest recovery in automobile production would likelyassist India's building and manufacturing, with a predicted improvement in semiconductor supply. With the government's plan to transition to a carbon-neutral economy by announcing projects for coalgasification and conversion of coal into chemicals, push on infrastructure through the PM Gati Shakti schemeand a significant increase on capital spend budget Indian steel prices to remain resilient, supported by strong international prices and input costs which remainelevated With the geopolitical situation in Europe causing supply issues, pricing is expected to remain firm, continuingthe trend witnessed in Q4FY22* Ministry of Steel, Industry Sources, IBEF, Moody’s # MT Million Tonnes16

Strength, Weakness, Opportunities and Threat Analysis Strong and proven track record of delivering growth Competition from larger establishedthrough innovationpeers Resilient business model that has withstood multiple Players from unorganised sector posebusiness cyclesprice challenges in the medium term Diversified product portfolio catering to widearray of customers Long standing relationship with marquee customers India’s burgeoning economy – growth for auto,real estate, white goods, transportation Thrust on Infrastructure – GOI spendingincreasing YoY to bolster country’sinfrastructureDP Wires LimitedS WO T Evolving regulations in the Industry –especially to combat pollution New age materials that could requireextensive capital investment17

Financial Highlights

Key highlights - FY22Revenue Rs. 6,124 Mn up by 31.2% YoYMaiden DividendRs. 1 per share (10% of Face Value)EBITDA Rs. 398 Mn with 6.5% of EBITDA MarginNet Profit Rs. 70 Mn with Margin of 4.7% YoYDP Wires LimitedHealthy Return RatiosROCE25% and ROE 19%Net Debt to EquityStable at 0.1x19

Financial Highlights - Q4 & FY22Particulars (Rs in Mn)Q4FY22Q4FY21YoY(%)Q3FY22QoQ(%)FY22FY21YoY(%)Net al reciation7862522Interest Cost4272111Other Income14283631PBT94112388324Tax 26.16.221.417.8EBITDAEBITDA MarginPAT MarginEPSDP Wires Limited-15.5%112-15.5%27-15.8%84-17.1%19.7%20.7%20

Annual Profit & Loss HighlightsParticulars (Rs in Mn)FY18FY19FY20FY21FY22Net Revenue2,1243,3162,8394,6676,124Total 2398EBITDA terest Cost1323131121Other Income825233136149243223324388Tax 4.7%8.312.812.317.821.4PBTPAT MarginEPSDP Wires Limited21

Annual Balance Sheet TrendLiabilities (Rs Mn)FY20FY21FY22Assets (Rs Mn)FY20FY21FY22Total Equity9861,2271,518Non-Current Assets266260297Share Capital136136136PPE152169184Other Equity8501,0911,382Non-Current Liabilities323628---Borrowings242821Current Assets9851,2771,663Lease 464624878648108Cash Eq. and Bank12953831004289Loans40674111-Other Current Liabilities111161198Current Tax ,2521,5371,960Current LiabilitiesBorrowingsTrade PayablesOther Financial LiabilitiesTotal LiabilitiesDP Wires LimitedCapital WIPOther Current AssetsTotal Assets22

Key RatiosRevenue from Operations(Rs Mn)6,124EBITDA (Rs Mn) & Margin (%)PAT (Rs Mn) & Margin FY20FY21FY22FY18FY19EBITDADP Wires LimitedFY20FY21EBITDA MarginFY22FY18FY19PATFY20FY21FY22PAT Margin23

Key RatiosDebt/Equity (X)Working Capital (days)ROE (%) & ROCE 0211211143FY18FY19FY20FY21FY22FY18FY19FY20ROEDP Wires LimitedFY21ROCEFY22FY18FY19Debtors DaysInventory DaysFY20FY216FY22Creditors DaysCash Conversion Cycle24

Production & Sales TrendWire DivisionFY21Production (MT)DP Wires LimitedMT Metric TonnesFY22Sales (MT)FY202,2972,2852,2062,128FY20FY21Production Plastic DivisionFY22Sales (MT)25

Stock Information Declared Maiden Dividend in FY221 year Stock Performance (Price-Volume)450Share Holding Pattern(as on Mar omoters70.4%Jul-21Aug-21 Sep-21 Sep-21 Oct-21 Nov-21 Dec-21 Dec-21 Jan-22 Feb-22 Mar-22 Mar-22 Apr-22 May-22 Jun-22Traded Volume (In '000)DP Wires LimitedShare Price (Rs)26

THANK YOU16-18A, Industrial Estate, Ratlam – 457001B-612/A, Kanakia Wallstreet, Andheri (East), MumbaiMs. Krutika MaheshwariMs. Pooja SharmaCompany Secretary & Compliance r.com 91-99309 53861Investor Relationsinvestors@dpwires.co.inMr. Vishal Mehtavishal@stellar-ir.com 91-93264 78472

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.) Having experience of 50 Years in steel wires and plastic products Huge credit goes to Mr. Kataria for making the company reach this position. Mr. Kantilal Kataria, Non-Executive Director