Welspun Corp Limited · NSE:WELCORP
Welspun — Q2 FY21 Earnings Presentation
30 slides from Welspun's earnings presentation, Oct 30, 2020
Slide 1: Cover letter to stock exchanges
WCL/SEC/2020 October 29, 2020 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: Change in the composition of the Board of Directors
3. Change in the composition of the Board of Directors a. Appointment of Ms. Dipali Goenka as Non-Executive, Non-Independent Director. Note that at the recommendation of the Nomination and Remuneration Committee, Ms. Dipali Goenka (DIN: 00007199), aged 51 years has been appointment as an additional
Slide 3: Board change particulars and resignation
She is also the torchbearer for Sustainability and Circular economy. Welspun India has been featured as one of top 100 sustainable companies in India by ET-Futurescape. It has been conferred ‘Giga-guru’ status by the world’s top retailer. She has a strong focus on women empowerment and has undertake
Slide 4: Trading Window
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, please be informed that the trading window for dealing in the securities of the Company shall re-open with ef
Slide 5: Business Update: Strong Bounce Back in an Improving Environment
BUSINESS UPDATE Strong Bounce Back in an Improving Environment Order book in excess of INR 6 bn provides business visibility October 29, 2020, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended September 30th, 20
Slide 6: Business Update: Debt, Forex and Saudi business
BUSINESS UPDATE the Company’s strong focus on free cash flows and gives the ability to enter new businesses offering consistent earnings. Gross and Net Debt position is as per details below: Figures in Rs. Cr Consolidated debt Sep-20 Jun-20 Mar-20 Gross Debt 335 479 995 Cash & Cash Equivalents 990
Slide 7: Business Update: Bhopal Project and Ductile Iron Pipe Foray
BUSINESS UPDATE 10. Bhopal Project Status: As informed earlier, considering the business prospects and optimal utilisation of assets, we have relocated one more spiral mill from Anjar to Bhopal, which will also commence operations by mid November 2020. 11. Foray into Ductile Iron Pipe Segment: Looki
Slide 8: Business Update: Business Outlook
BUSINESS UPDATE transaction. Considering the buoyancy in the steel market, we stay very optimistic of this deal getting consummated in this financial year. 13. Business outlook: The outlook for oil remains subject to unpredictability as the recovery from COVID-19 continues to evolve. Several countri
Slide 9: Business Update: Outlook for USA and Saudi Arabia
BUSINESS UPDATE USA In the US, there is an element of uncertainty in the run up to the Presidential elections and the possible impact of the outcome on the Energy policy. Nonetheless, we won a large order during the quarter as well as some other repeat orders reinforcing our position as a trusted pi
Slide 10: Operating EBITDA Reconciliation and Performance Snapshot
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q2FY21 Q1FY21 Q2FY20 H1FY21 H1FY20 Reported EBITDA 240 197 331 437 572 Less: Treasury income (12) (13) (15) (25) (34) Less: Profit on sale of Land (incl. interest)
Slide 11: Consolidated Balance Sheet - Key Figures
BUSINESS UPDATE Figures in Rs. Cr Consolidated Balance Sheet - Key figures Sep-20 Mar-20 Net Fixed Assets (incl CWIP) 1,567 1,619 Net Current Assets # 1,040 1,195 Net Debt / (Net Cash) (655) 32 Net Worth 3,387 3,215 Net Assets Held for Sale * 881 829 ROCE (pre-tax) 26.8% 32.1% # Net Current Assets e
Slide 12: Investor Call Details and About Welspun Corp
BUSINESS UPDATE Q2 FY21 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Tuesday, 29th October 2020 Time: 4:00 PM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 Local Acce
Slide 13: Welspun Corp Limited
Welspun Corp Limited Investor Presentation | October 2020
Slide 14: 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 15: 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 16: 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 17: 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 18: Approvals & accreditations from marquee customers is a significant entry barrier
Approvals & accreditations from marquee customers is a significant entry barrier Oil & gas Transportation Others October 2020 Investor Presentation 6
Slide 19: 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 1082 1100 1450 1450 1018 1019 1152 1100 1279 1502 950 371 950 501 641 695 816 909 833 936 471 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Slide 20: Long Term Financial Performance
Long Term Financial Performance Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 H1FY21 CAGR % Sales Volume (KMT) 1,018 1,019 1,152 1,100 936 1,082 1,279 1,502 471 5.7% Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 3,227 1.3% Operating EBITDA (INR cr) 708 774 769 778 594 705 89
Slide 21: 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) October 2020 Investor Presentation 9
Slide 22: 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 23: 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 Onshore oil, gas & water
Slide 24: 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 25: 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 26: Q2 FY21 at a Glance
Q2 FY21 at a Glance 268 KMT 249 KMT 256 KMT Global Production Global Sales Order Booked in Q2 240 crs 12,400 / 152 crs US $165 EBITDA Op EBITDA / Ton Profit After Tax 478 crs 1.5 Mn MT 457 crs Net Cash – Generated in Q2 Free Cash Flow Generated Active Bids Future Outlook Q2 Note: Pipe Sales & Produc
Slide 27: Financial Results for Q2
Financial Results for Q2 Particulars (Rs Cr) Q2FY21 Q1FY21 QoQ Pipe Sales Volume (KMT) 249 222 12.3% Revenue 1,158 2,069 -44.1% Operating EBITDA 187 183 2.2% EBITDA 240 197 22.0% Depreciation 52 53 -2.7% Finance cost 15 28 -47.1% Profit before tax and share of JV 173 115 50.3% Tax 63 78 -19.0% Non C
Slide 28: Future Outlook
Future Outlook 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 pro
Slide 29: Management Profile: Running the show
Management Profile: Running the show 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 Welspun si
Slide 30: 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 18