DCW Ltd. — Earnings Release 2023

May 12, 2023

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Digitally signed by DILIP DILIP VISHNUBHAI VISHNUBHAI DARJI DARJI Date: 2023.05.12 13:42:48 +05'30'

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Media Release

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DCW LIMITED REPORTS HIGHEST EVER TURNOVER AND ABSOLUTE EBITDA WITH EBITDA MARGIN EXPANSION TO 16.27% AND NET PROFIT GROWTH OF 78.6% YOY

May 12[th] 2023: DCW Limited. {BSE: 500117 & NSE: DCW}, one of India's leading niche specialty chemicals, announces its results for the fourth quarter and financial year ended 2022-23.

Q4-FY23 Financial Performance:

	RevenueINR 5,881 MnYoY Growth: (16.8)%	EBITDAINR 995 MnYoY Growth: 0.7%	EBITDA Margin16.92%YoY Growth: 295 Bps	PATINR 353 MnYoY Growth: (26.2)%

FY23 Financial Performance:

	RevenueINR 26,338 MnYoY Growth: 7.3%	EBITDAINR 4,285 MnYoY Growth: 31.9%	EBITDA Margin16.27%YoY Growth: 304 Bps	PATINR 1,920 MnYoY Growth: 78.6%

Operational Highlights:

Q4-FY23:

• Flat growth in operational income on a QoQ basis due to fall in Caustic & SR prices by 37% & 31% QoQ respectively, which was countered by volume increase across all product segments.

• Operational income declined on a YoY basis on account of sharp drop in net realisations for PVC, CPVC & Caustic by 34%, 19% and 14% respectively.

• EBITDA margins improved on a YoY basis due to improved performance of Soda Ash business.

FY23:

• Highest ever turnover and absolute EBITDA achieved in FY23 with EBITDA margins expanding to 16.27%.

• Capacity utilsations across all business segments reached optimum levels with SIOP volumes consistently increasing over the quarters

• There has been a structural shift in interest costs reducing to under 10% from 17% levels in the year earlier, through refinancing of borrowings.

• The company was able to strengthen the Balance Sheet significantly by de-leveraging and improving current ratio to 1.38 from 1.02 in FY22.

• ROCEs have significantly improved to 21.63%.

• The company’s credit rating was upgraded to “A”, with a consistent track record of 3 rating upgrades in the last 18 months.

Media Release

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Management Comments:

Commenting on the performance of the Company, Mr. Saatvik Jain, President said: “We are extremely pleased to announce that DCW has achieved some major milestones this year, most importantly the company has clocked its highest ever annual revenues, EBITDA and Net Profit. We have achieved this major feat after many years of strategic decisions that have resulted in an operational and financial turnaround of the company. As you may know the company has taken various strategic measures over the years to integrate its operations and also focus more towards specialty high margin products which de-risks the company from the volatilities of the commodity chemicals. Another major milestone was the refinancing of high cost debt which has significantly improved our profitability, cash flow and balance sheet position from the second half of FY23 and has also allowed us to get multiple upgrades of our credit rating this financial year. Most importantly, the company’s integrated operations today have a healthy balance between commodity and specialty chemicals which create a natural hedge against volatilities of the commodity cycle and safeguard the sustainability of our margins. With the upcoming expansions and debottlenecking of some of our specialty chemicals in FY24 we are confident of continuing our growth momentum and financial performance.”

Financial Statements:

Results for the quarter ended March 31, 2023, prepared under Ind AS, along with segment results, are available in the Investor Relations section of our website https://dcwltd.com/

Quarterly Conference Call:

The earnings conference call will be held on Friday, May 12, 2023 at 04:00 PM (IST) to discuss the Financial Results and performance of the company for the quarter ended March 31, 2023.

The earnings conference call will be accessible from all networks and countries through universal access dial-ins +91 22 6280 1341/ +91 22 7115 8242 also accessible at: https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=6058475&linkSecuri tyString=1f81d357c0

About DCW Limited:

DCW Limited (BSE: DCW I 500117, NSE: DCW) is one of the fastest growing multi-products chemical companies in the country. The company has a diversified portfolio with over 12 products and an extensive distribution network spanning over 12 countries with a major presence in the USA, Europe, Japan, Malaysia and Netherlands. and 100+ customers. The company has over 8 decades of experience of innovation and pioneered new products and processes. A niche and diversified product mix with a balanced portfolio of value and volume- based products has been created by strategically investing in specialty chemicals and de-bottlenecking commodity chemical business

Media Release

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Contact Information:

Investor Relations Representative: Company Secretary & Compliance Officer Mr. Anuj Sonpal Mr. Dilip Darji Valorem Advisors DCW Limited Tel: +91-22-4903-9500 Tel: 022 - 2287 1914 Email: dcw@valoremadvisors.com Email: dilip.darji@dcwltd.com

"Nirmal" 3[rd] Floor, Nariman Point, Mumbai -400021. TEL.: 2287 1914, 2287 1916, 2202 0743 TELEFAX: 222202 8838 Registered Office: Dhrangadhra - 363 315 (Gujarat state) Email: ho@dcwltd.com, Website: www.dcwltd.com, CIN-L24110GJ1939PLC000748