Welspun Corp Limited · NSE:WELCORP
Welspun — Q1 FY24 Earnings Presentation
37 slides from Welspun's earnings presentation, Aug 5, 2023
Slide 1: Exchange cover letter: Business Update and Investors' Presentation
WCL /SEC/2023 August 4, 2023 To, BSE Ltd. National Stock Exchange of India Ltd. Department of Listing, Exchange Plaza, P. J. Towers, Dalal Street, Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. (Scrip Code: Equity - 532144), (Symbol: WELCORP, Series EQ) (NCD– 960468, 960491 &
Slide 2: Business Update: Robust performance, strong Q1 sets the tone for FY24
BUSINESS UPDATE Robust performance Strong Q1 sets the tone for FY24 Aug 4, 2023, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended June 30, 2023. Complete Pipe Solutions: Consistent improvement in Sales volu
Slide 3: Business Update: Global Oil & Gas Scenario and Key Drivers
BUSINESS UPDATE Global Oil & Gas Scenario: As per the latest IEA report, the World oil demand will grow by 2.4 milllion bpd to 102.3 million bpd in 2023, a new record Total oil supply is likely to reach a record high of 101.3 million bpd in 2023 and 102.3 million bpd in 2024 Oil prices have be
Slide 4: Business Update: Outlook, Saudi Arabia drivers and DI Pipes
BUSINESS UPDATE Outlook: We see strong demand for our HSAW pipes to continue in the US market. Total order book remains strong at 330 KMT (A.1.3) Key Drivers - Saudi Arabia Saudi Aramco raised its upstream spending by about 24% to US$29 billion and plans further increase in spending to boost its c
Slide 5: Business Update: DI Pipes outlook and Stainless Steel Pipes and Bars
BUSINESS UPDATE Outlook: DI Pipes market is expected to grow at a strong CAGR of 13-15% in India on the back of huge investment (INR 69,684 crore in the Union Budget 2023) by the Government in water infrastructure projects. In the next few years, DI pipes will account for 1/4th of the pipe market sh
Slide 6: Business Update: Outlook and Building Materials, Sintex
BUSINESS UPDATE Outlook: The current Order Book stands at ~ 3,864 MT valued at ~ INR 156 crore. The company has successfully made its inroads in SEA/ NEA region and continue to work towards further market penetration. Successful delivery of critical grades will pave way for many more opportunities i
Slide 7: Business Update: TMT Bars
BUSINESS UPDATE (B.2) TMT Bars TMT Bars - Sales (KMT): +27% QoQ 20 16 2 Q3FY23 Q4FY23 Q1FY24 Success Metrics: Product Reach (no.s) Dealer Network 300 252 152 200 95 86 100 33 27 0 23 Districts Taluka Total in Gujarat Actual being Served Dec-22 Mar-23 Jul-23 Key Highlights: Steady improvement in TM
Slide 8: Business Update: Nauyaan Shipyard and ESG Initiatives
BUSINESS UPDATE (C) Nauyaan Shipyard (erstwhile ABG Shipyard) We have been disposing off metals/ metals scrap, which would result into steady cash flow. We are keeping our fixed cost at very minimal level We are not exploring any capital intensive investment options like ship building. We are confid
Slide 9: Management Comments
BUSINESS UPDATE Management Comments “I am happy that we started the new financial year on a strong footing and it’s in line with our stated guidance for the full year FY24. Despite seasonality, our operating and financial performances have been robust, which resulted in reduction of our net debt. Al
Slide 10: Consolidated Performance Snapshot
BUSINESS UPDATE Consolidated Performance Snapshot - Prior period figures are restated after the acquisition of the Steel business of Welspun Steel Limited - Sales Volume & Order Book excludes our Saudi operations Sales Volumes Q1FY24 Q4FY23 Q1FY23 FY23 Line Pipes (KMT) 185 249 99 659 DI Pipes (KMT)
Slide 11: Investor call details and About Welspun Corp Ltd.
BUSINESS UPDATE Q1 FY24 Investor & Analyst conference call: On Monday, August 7, 2023 at 10.00 AM (IST) Primary Access: +91 22 6280 1325 / +91 22 7115 8226 International Toll-Free numbers o Hong Kong: 800 964 448 o Singapore: 800 1012 045 o UK: 0808 101 1573 o USA: 1866 746 2133 About Welspun Co
Slide 12: Welspun Corp Limited Q1FY24
Welspun Corp Limited Investor Presentation Q1FY24 Date: 4th August, 2023
Slide 13: Disclaimer
Disclaimer For any financial disclosures, the information contained herein is provided by Welspun Corp Limited (the “Company”), although care has been taken t o ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is s
Slide 14: Transforming: Creating Value
Transforming: Creating Value Pipe Solutions Building Materials Current: Water Storage Tanks, Large Interiors, Liquid Storage Solutions, Business Diameter DI Pipes SS Pipes Electrical Boxes TMT Rebars Pipe and Proposed: Plastics Pipes, Fittings, Coating Adhesives Our position Amongst the Integrated I
Slide 15: Sales Volumes at a Glance: Q1FY24
Sales Volumes at a Glance: Q1FY24 Pipe Solutions Building Materials LINE PIPES DI PIPES Water Storage Tanks 185 KMT 27 KMT 3,538 MT (+89% YoY) (+19% QoQ)* (+5% QoQ)* SS PIPES SS BARS TMT BARS 1,275 MT 3,022 MT 20 KMT (+84% YoY) (+94% YoY) (+27% QoQ)* Notes: 1. Line Pipe Sales volumes does not includ
Slide 16: Dare to Commit! Guidance for FY24
Dare to Commit! Guidance for FY24 • Top line of INR 15,0 0 0 crore (g row t h of ~ 50%) • EBIDTA of INR 1,500 crore (g row t h of ~ 90%) • Minimal Capex Expenditure • Strong focus on growth of Sintex, DI Pipes and WSSL • ROCE of 16% + (from 7% in FY23) • Increase in DJSI ESG rating to 6 0 + Guidance
Slide 17: Consolidated Financial Performance: Q1FY24
Consolidated Financial Performance: Q1FY24 PARTICULARS (INR crore) Q 1 FY24 Q1 FY23 YoY Total Revenue from Operations 4,069 1,322 208% Other income 50 73 (32%) Reported EBITDA 418 102 312% Depreciation and Amortisation 86 61 40% Finance Cost 92 31 202% Profit before tax and share of JVs 240 10 2364%
Slide 18: Guidance: FY24
Guidance: FY24 EPS (INR) 26.8 ROCE 16.0% 16.8 11.0% 7.9 7.3% FY22 FY23 FY24* FY22 FY23 FY24* Gross debt (INR crore) Net Debt (INR crore) 3,316 1,138 2,021 231 1,211 FY22 FY23 FY24* FY22 FY23 FY24* -173 Note: *FY24 figures are estimated
Slide 19: Debt Reduction: Journey So Far
Debt Reduction: Journey So Far Gross Debt (INR crore) Net Debt (INR crore) 3,316 1,837 3,178 1,138 835 2,795 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23
Slide 20: Outlook: Pipe Solutions Vertical
Outlook: Pipe Solutions Vertical
Slide 21: WCL: Line Pipes
WCL: Line Pipes Top 16+ 3 50+ million metric Approvals from ton Among Line O&G majors; Pipes delivered Pipe Qualifies for since inception Manufacturers global bidding with multiple globally repeat orders 2.2 mn MT 5 manufacturing Used in Oil & Gas, Pipes Capacity facilities in 3 Water industry & cou
Slide 22: Line Pipes: Key Drivers
Line Pipes: Key Drivers INDIA USA SAUDI ARABIA • City Gas Distribution (CGD) • Rig count close t o pre-pandemic • Saudi Aramco t o boost oil network-Rise in demand due to levels production from 10 million t o 13 new government policies. million barrels a day by 2027 • Permian basin expected t o be t
Slide 23: Ductile Iron Pipes
Ductile Iron Pipes Huge Focus on creating drinking water supply infrastructure in India Immediate Focus Market is West, Central and N ort h India
Slide 24: Stainless Steel Pipes and Bars
Stainless Steel Pipes and Bars Robust demand expected going forward Key Drivers • Make in India initiative by the government providing push to local manufacturing • High value business and a differentiated import-substitution play with obvious synergies with existing business and capabilities, chara
Slide 25: Projections: Pipe Solutions Vertical
Projections: “Pipe Solutions Vertical” Line Pipes (KMT) DI Pipes 8% CAGR 1250 350 104% CAGR 1003 1002 795 41 - - FY21 FY22 FY23 FY24 (P) FY25 (P) FY26 (P) FY21 FY22 FY23 FY24 (P) FY25 (P) FY26 (P) SS Pipes (MT) SS Bars (MT) 20% CAGR 7,000 80% CAGR 40,000 4,059 2,915 1,937 6,869 - 1,531 FY21 FY22 FY2
Slide 26: Outlook: Building Materials Vertical
Outlook: Building Materials Vertical
Slide 27: Sintex: Key Product Offerings
Sintex: Key Product Offerings uPVC Doors & Interiors SMC Panel Tanks (upto 1200 KL) Brand recall & Weather- Modular, Long Life, Non-Corrosive, resistant Non-Leaching Water Storage Tanks (WST) Strong brand & Complete Range Industrial Containers (IC) Packaged STP (upto 1000KLD) Special containers for
Slide 28: Sintex: Access to Market
Sintex: Access to Market 19 Manufacturing Locations 1 48 • Kalol Gujarat 24 34 2 • Nalagarh Himachal Pradesh 7 • Namakkal Tamil Nadu 40 93 28 1 1 • Uluberai West Bengal 43 1 • Butibori (Nagpur) Maharashtra 60 27 38 1 2 31 • Guwahati Assam 23 52 88 Distribution Network 24 PAN India distribution netwo
Slide 29: Market Outlook
Market Outlook WST Market Size (INR billion) Plastic Pipe Market Size (INR billion) UPVC CPVC HDPE PPR CAGR CAGR 600 2013- 2021 2021- 2025 28 19% CAGR 90-100 10-12% CAGR 93 6% 6-8% 400 121 21 18-10% CAGR 60 11% 11-13% 65 190 17% 16-18% 45-50 13 359 26 19 254 133 8% 8-10% 2022 2026 2013 2021 2025 • C
Slide 30: Sintex: The Way Forward
Sintex: The Way Forward Strategic: • Enhance product basket to adjacent categories like Pipes, Fittings and Adhesives: • Significant synergy between WST existing ecosystem and pipes requirements • Pipes market being significantly larger (5-6x), provides greater opportunity to grow • Invest in infras
Slide 31: TMT: Our Differentiated Strategy
TMT: Our Differentiated Strategy Key Growth Drivers Infrastructure: Massive spending expected in the sector including – • PM Gati Shakti National Master Plan: an expected outlay of INR 100 lakh Cr • Pradhan Mantri Awas Yojana-Urban's (PMAY-U) 'Housing for All' mission • Private Sector Capital Expend
Slide 32: Focus on ESG
Focus on ESG
Slide 33: ESG Framework
ESG Framework Maturity Materiality Gap Analysis Roadmap Communications and Assessment Analysis Development Reporting Key Considerations Global reporting ESG ratings Global trends Customer Goals Peer analysis frameworks DJSI Rating • WCL (Line pipe business) achieved a “score of 57 in FY 23” with a h
Slide 34: ESG: Environment
ESG: Environment Long Term Sustainability Goals • Carbon Neutrality – 10% (2025), 20% (2030), 100% (2040) • RE power tied up through a group captive project for WML – 6.6 MW • RE power tied up with third party for WSSL – 3 MW • Water Neutrality by 2040 – • Current initiatives are water recycling and
Slide 35: ESG: Social
ESG: Social Welspun Programs Alignment with UN Sustainable Development Goals Total no. of beneficia r i es for FY23 – 5,07,848 Education Programs Empowerment Programs Health Programs
Slide 36: ESG: Governance
ESG: Governance Board Matters / Entity Level Controls • ESG Committee at the board level • Quarterly review of ESG performance and communication to stakeholders through BRSR and Sustainability report. Board of Directors • Female gender ratio of Board members – 38 % • Independent directors with illus
Slide 37: Thank You!
Thank You! Welspun Corp Limited CIN: L27100GJ1995PLC025609 For further queries, contact Name : Mr. Goutam Chakraborty Email : [email protected] www.welspuncorp.com Connect with us: /TheWelspunGroup /WelspunGroup /welspungroup /company/welspun-group