Welspun Corp Limited · NSE:WELCORP
Welspun — Q3 FY2021 Earnings Presentation
29 slides from Welspun's earnings presentation, Jan 29, 2021
Slide 1: Exchange filing cover letter
WCL/SEC/2021 January 28, 2021 To, BSE Ltd. National Stock Exchange of India Ltd. (Scrip Code-532144) (Symbol: WELCORP, Series EQ) Department of Listing, Exchange Plaza, P. J. Towers, Dalal Street, Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. Dear Sirs/ Madam, Sub.: (1) Un-au
Slide 2: Business update, trading window
3. Business Update / Investor Presentation:- Also attached is the Business Update and Investors’ Presentation. 4. Trading Window:- Pursuant to the SEBI (Prohibition of Insider Trading) Regulations 2015, and the Company’s Code of Conduct for Regulating, Monitoring and Reporting of Trading by Insiders
Slide 3: Business Update: Steady Performance & Growth
BUSINESS UPDATE Steady Performance & Growth January 28th, 2021, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the quarter and nine months ended December 31st, 2020. Pipe Sales Volume up +14.3% QoQ Total Income from Operat
Slide 4: Business Update: Debt position and net finance costs
BUSINESS UPDATE 7. Debt position: Gross and Net Debt position is as per details below: Figures in Rs. Cr Consolidated debt Dec-20 Sep-20 Jun-20 Gross Debt 660 335 479 Cash & Cash Equivalents 974 990 677 Net Debt / (Cash) (314) (655) (198) Cash deployed in Q3FY21 on inventories - preparation for volu
Slide 5: Business Update: Saudi business and Bhopal project
BUSINESS UPDATE 10. Update on Saudi business: The Saudi business continues to contribute strongly towards profitability. Key figures of Saudi JV, which is not consolidated as per Ind-AS: Figures in USD Particulars in US$ MN Q3FY21 Q2FY21 % Saudi Arabia Ops: - Pipe Prodn (KMT) 88 107 -17% - Pipe Sale
Slide 6: Business Update: Business outlook
BUSINESS UPDATE 14. Business outlook: Reduced economic activity and the various lockdowns imposed in response to the pandemic caused energy demand and supply to decline in 2020. In a stabilising environment, the rollout of vaccines and fiscal stimulus programs will help the global economy post a str
Slide 7: Business Update: USA and Saudi outlook
BUSINESS UPDATE USA The overall environment for Oil & Gas has improved with a pickup in oil prices and better than expected production and demand. However, many companies in the midstream sector are being cautious with spending on growth projects. In the next few months, we expect the prevailing unc
Slide 8: Operating EBITDA reconciliation and performance snapshot
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q3FY21 Q2FY21 Q3FY20 9MFY21 9MFY20 Reported EBITDA 252 240 385 689 958 Less: Treasury income (16) (12) (14) (41) (49) Less: Profit on sale of Land (incl. interest)
Slide 9: Consolidated Balance Sheet key figures
BUSINESS UPDATE Figures in Rs. Cr Consolidated Balance Sheet - Key figures Dec-20 Sep-20 Net Fixed Assets (incl CWIP) 1,558 1,567 Net Current Assets # 1,191 1,040 Net Debt / (Net Cash) (314) (655) Net Worth 3,575 3,387 Net Assets Held for Sale * 834 881 ROCE (pre-tax) 19.2% 26.8% # Net Current Asset
Slide 10: Investor conference call and About Welspun Corp
BUSINESS UPDATE Q3 FY21 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Thursday, 28th January 2021 Time: 4:30 PM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 Local Acc
Slide 11: Welspun Corp Limited
Welspun Corp Limited Investor Presentation | January 2021
Slide 12: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Welspun Corp Limited (the “Company” or “WCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 13: Q3 FY21 at a Glance
Q3 FY21 at a Glance 268 KMT 285 KMT 612 KMT Global Production Global Sales Global Order Book 252 crs 10,050 / 195 crs US $135 EBITDA Op EBITDA / Ton Profit After Tax 7.5 1.496 Mn 314 crs MT Net Cash Position EPS Active Bids Future Outlook Note: Pipe Sales & Production volumes, Order Book and Future
Slide 14: Financial Results for Q3
Financial Results for Q3 Particulars (Rs Cr) Q3FY21 Q2FY21 QoQ Pipe Sales Volume (KMT) 285 249 14.3% Total Income from Operations 1,393 1,158 20.4% Operating EBITDA 189 187 1.0% EBITDA 252 240 5.1% Depreciation 54 52 4.1% Finance cost 13 15 -9.9% Profit before tax and share of JV 185 173 6.6% Tax 66
Slide 15: Inauguration of the Bhopal Pipe & Coating Plant
Inauguration of the Bhopal Pipe & Coating Plant by The Hon. CM of Madhya Pradesh on 20th Dec 2020 • Total capacity stands at 305 KMT (HSAW) • State of the art manufacturing facility spread across 150 acres in the Raisen district • Will cater to growing demand for Water and Oil & Gas infrastructure i
Slide 16: The Way Forward
The Way Forward Extracting maximum value from Assets • Pipe business – Maximizing Asset Utilisation • Divestment of non-core businesses - Asset Light Approach • IPO of Saudi JV Strengthening Competitive Advantage • Automation & Digitisation • Talent development • Quality control • Introduce niche pr
Slide 17: Welspun Corp at a glance
Welspun Corp at a glance Top Among Line Pipe Manufacturers globally 3 50+ Approvals from O&G majors; Qualifies for global bidding 14+ Pipes delivered since inception with multiple repeat orders MN MT 6 manufacturing facilities Used in Oil & Gas and 2.55 mn MT Pipes Capacity in 3 countries Water indu
Slide 18: Our Manufacturing Facilities
Our Manufacturing Facilities INDIA UNITED STATES SAUDI ARABIA Capacity India US Saudi Arabia (in KMT) Total Products / City Anjar Dahej Mandya Bhopal Little Rock Dammam LSAW 350 350 - - - - 700 HSAW 250 50 150 305 350 375 1,480 ERW/ HFIW 200 - - - 175 - 375 Total (KMT) 1,655 525 375 2,555 Port based
Slide 19: Our Business Moat
Our Business Moat Global Leadership Accreditations Expertise Among Top 3 Line Pipe Approvals: 50+ O&G majors; Executed critical & complex projects Manufacturers globally Qualifies for global bidding worldwide Customer Centricity Supplier Relationship Innovation Delivered 14+ mn MT Pipes with Long te
Slide 20: Approvals & accreditations from marquee customers is a significant entry barrier
Approvals & accreditations from marquee customers is a significant entry barrier Oil & gas Transportation Others January 2021 Investor Presentation 10
Slide 21: Pipes: Capacity and Volumes
Pipes: Capacity and Volumes SALES VOLUME CAGR: 10.5% CONSOLIDATION PHASE (Calculated till FY20) 1,850 2,200 2,425 2,425 2,425 2,425 2,425 2,425 2,555 2,555 2,555 1100 1450 1450 1018 1019 1152 1100 1082 1279 1502 950 371 950 501 641 695 816 909 833 936 756 Capacity (KMT) Sales Volume (KMT) January 20
Slide 22: Long Term Financial Performance
Long Term Financial Performance Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 9MFY21 CAGR % Sales Volume (KMT) 1,018 1,019 1,152 1,100 936 1,082 1,279 1,502 756 5.7% Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 4,620 1.3% EBITDA (INR cr) 919 844 951 891 737 815 708 1,276 68
Slide 23: Volume Mix
Volume Mix 764 635 646 632 650 629 578 510 500 393 413 265 423 217 236 222 180 255 197 237 165 138 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 India (KMT) USA (KMT) Saudi (KMT) January 2021 Investor Presentation 13
Slide 24: Key Milestones
Key Milestones 4th year of >1mn MT volumes; 350 KTPA LSAW mill at Anjar order book at record high 300 KTPA HSAW mill at Saudi JV with Wasco Energy Ltd for Arabia CWC plant 350 KTPA HSAW Achieves Net mill at Arkansas, US Cash Balance Won 1,700 KM Keystone project from Trans Sheet Canada
Slide 25: Product Information
Product Information HSAW Pipes LSAW Pipes ERW/HFIW Pipes (Helically welded) (Longitudinally welded) (Electric Resistance Welded / High-frequency Induction Welded) 18 – 140 inch diameter, 16 – 60 inch diameter, 1.5 – 20 inch diameter, 4 6mm to 25 mm 6 mm to 43 mm mm to 14 mm thickness thickness thick
Slide 26: Unique Manufacturing Advantage: India
Unique Manufacturing Advantage: India INDIA : 20+ YEARS OF EXPERTISE Strategically Located Plants …to cover West, South and Central India • All-round capability: Pipes, bends, internal and external coating, Concrete Weight Coating • Location advantage: Ideal to cater to export and domestic businesse
Slide 27: Unique Manufacturing Advantage: US & Saudi
Unique Manufacturing Advantage: US & Saudi US: DOMINANT PLAYER IN LINE PIPES SAUDI: ONE OF THE LARGEST PIPE PLANTS • Largest and most modern spiral (HSAW) mill • Location Advantage: • Patented manufacturing technologies • Proximity to Dammam Port • Strategic location, west of the Mississippi river •
Slide 28: Board of Directors & Management Profile
Board of Directors & Management Profile Board of Directors Management Team B.K.Goenka - Non-Executive Chairman & Promoter Director Vipul Mathur - Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen • Well-known figure in the global pipe industry; Associated with Welsp
Slide 29: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan [email protected] October 2020 Investor Presentation 19