Welspun Corp Limited · NSE:WELCORP
Welspun — Q3 FY23 Earnings Presentation
32 slides from Welspun's earnings presentation, Feb 3, 2023
Slide 1: Exchange cover letter: Business Update and Investors' Presentation Q3 2022-23
WCL /SEC/2023 February 2, 2023 To, BSE Ltd. National Stock Exchange of India Ltd. Listing Department, 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 and
Slide 2: Business Update: Poised for Take-Off
BUSINESS UPDATE Poised for Take-Off February 2, 2023, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended December 31, 2022. Begun dispatches for orders in US, strong outlook with plants booked for several qua
Slide 3: Business Update: India, USA and Saudi Arabia outlook
BUSINESS UPDATE Petroleum & Natural Gas Regulatory Board (PNGRB) has authorized approximately 33,107 km length of Natural Gas Pipeline Network across the country. Out of this, 21,102 km length of natural gas pipelines are operational including 6,678 km of partially commissioned pipelines. In additio
Slide 4: Business Update: Saudi Arabia and Steel Vertical
BUSINESS UPDATE The outlook for the Oil and Gas sector in Saudi Arabia is encouraging. The Master Gas System - Phase 3 is being planned by Saudi Aramco for transfer of Gas from the East to West in Saudi Arabia. Saudi Arabia is trying to speed up the conversion of a number of power plants from oil to
Slide 5: Business Update: Welspun Specialty Solutions Limited
BUSINESS UPDATE The EBITDA loss this quarter in the Steel Vertical drastically reduced to ~ Rs. 34 Cr as compared to the previous quarter. We are ramping up production in a calibrated manner to ensure that we deliver pipes of the highest quality to our customers. In the month of January 2023, our pr
Slide 6: Business Update: Other Updates
BUSINESS UPDATE The total order book of WSSL for Stainless Steel Bars stands at 2,134 MT amounting to ~ Rs. 60 crores and for Tubes and Pipes stands at 1,426 MT amounting to ~ Rs.92 crores. The finance ministry has approved the gazette notification for Anti-Dumping Duty on Stainless Steel Seamless P
Slide 7: Business Update: ESG Initiatives and Company Outlook
BUSINESS UPDATE (C) ESG Initiatives WCL published its maiden Sustainability Report for FY 2021-22. The report is significant in helping WCL comprehensively report its sustainability performance across the environment, social, and governance domains. The report also highlights the progress made by WC
Slide 8: Financial Highlights of the Quarter ended December 31, 2022
BUSINESS UPDATE VII. Financial Highlights of the Quarter ended December 31, 2022 - Prior period figures are restated after the acquisition of the Steel business of Welspun Steel Limited - Financial Highlights (Consolidated) for Continuing Operations (Ind AS) - Sales Volume & Order Book includes our
Slide 9: Consolidated Performance Snapshot
BUSINESS UPDATE VIII. Consolidated Performance Snapshot Sales Volumes Q3FY23 Q2FY23 Q3FY22 9MFY23 9MFY22 Line Pipes (KMT) 281 218 171 657 526 Pig Iron (KMT) 40 11 - 51 - DI Pipes (KMT) 12 - - 12 - DRI (KMT) 14 18 2 33 4 Billets (KMT) 34 16 11 87 94 TMT Bars (KMT) 2 - - 2 - SS Bars (MT) 1,448 1,081 1
Slide 10: Conference call details and About Welspun Corp Ltd.
BUSINESS UPDATE Q3 FY23 Investor & Analyst conference call: Friday, 3rd February 2023 | Time: 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
Slide 11: Welspun Corp Limited Q3 FY23
Welspun Corp Limited Investor Presentation | Q3 FY23
Slide 12: Disclaimer
Disclaimer For any financial disclosures, the information contained herein is provided by Welspun Corp Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is su
Slide 13: Sales Volumes at a Glance: Q3 FY23
Sales Volumes at a Glance: Q3 FY23 Line Pipes Pig Iron DI Pipes DRI 281 KMT 40 KMT 12 KMT 14 KMT Billets TMT Bars SS Bars SS Pipes 34 KMT 2 KMT 1,448 MT 1,278 MT Note: Pipe Sales volumes include Saudi Arabia operations 3
Slide 14: Financial Results for Q3 FY23
Financial Results for Q3 FY23 Particulars (Rs Cr) Q3FY23 Q2FY23 QoQ Q3FY22 YoY Total Revenue from Operations 2,402 1,964 22.3% 1,442 66.6% Other Income 8 177 -95.5% 58 -86.1% Reported EBITDA 174 46 280.6% 168 3.8% Depreciation and Amortisation 80 70 14.8% 64 25.4% Finance Cost 70 47 48.4% 27 158.8%
Slide 15: Financial Performance
Financial Performance Consistent Performance over the last 10 years Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 7,153 6,505 5,688 EBITDA (INR cr) 919 844 951 891 737 815 708 1,276 1,152 1,023 322 Basic EPS 6.1
Slide 16: Sales Volume Mix: Line Pipes (Long Term Trend)
Sales Volume Mix: Line Pipes (Long Term Trend) 764 635 646 632 650 629 626 578 510 506 500 393 413 423 236 255 217 265 222 254 180 237 197 123 190 165 99 138 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 India (KMT) USA (KMT) Saudi (KMT) 6
Slide 17: WCL as "it was": High Quality Line Pipe Business
WCL as “it was”: High Quality Line Pipe Business Top Among Line Pipe Manufacturers globally 3 50+ Approvals from O&G majors; Qualifies for global bidding 15+ Pipes delivered since inception with multiple repeat orders MN MT 6 manufacturing facilities Used in Oil & Gas, Water 2.5 mn MT Pipes Capacity
Slide 18: Approvals & accreditations: Line Pipes
Approvals & accreditations: Line Pipes Oil & gas Transportation Others 8
Slide 19: Global Supply Chain
Global Supply Chain Name Country Dillinger France and Germany More than 2 million MT of VAGB Austria plates procured in Posco South Korea last 10 years Nippon Japan JFE Japan Bao China Healthy Relationships with Suppliers across the world: A key factor for our Global Leadership Position 9
Slide 20: Welspun Corp: Transforming into a Conglomerate
Welspun Corp: Transforming into a Conglomerate Existing New Planned Large Business Diameter Pipe Pig Iron and DI Plastic and Coating Specialty Steel Billets & TMT1) ABG Shipyards Pipes Products New Energy Amongst the One of the Integrated One of the One of the Acquisition2) Top largest producer from
Slide 21: Our Manufacturing Facilities
Our Manufacturing Facilities Capacity India US Saudi Arabia Total Products / City Anjar Dahej Mandya Bhopal Jhagadia Little Rock Dammam LSAW 350 350 700 HSAW 250 150 305 350 375 1,430 ERW/ HFIW 200 175 375 Line Pipes (KMT) 1,605 525 375 2,505 TMT Bars (KMT) 350 350 DI Pipes (KMT) 400 400 SS Bars (KM
Slide 22: Line Pipes: Key Drivers
Line Pipes: Key Drivers India USA Saudi Arabia • Rig count almost close to pre- • Saudi Aramco to boost oil • Expansion of National Gas Grid pandemic levels production from 10 million to 13 Pipeline • Permian basin expected to be the million barrels a day by 2027 • City Gas Distribution (CGD) key gr
Slide 23: Line Pipes: Key Drivers (New Energy)
Line Pipes: Key Drivers New Energy This is the future for pipelines Hydrogen: • WCL is a part of a key international committee drafting the specifications for these pipelines • Undertaking critical long lead tests on existing pipeline order to certify compatibility to carry 100% Hydrogen – Will give
Slide 24: Ductile Iron Pipes: Huge focus on creating drinking water supply infrastructure in India
Ductile Iron Pipes: Huge focus on creating drinking water supply infrastructure in India Our Focus Market will be West, Central and North India Received State Approval 14
Slide 25: Specialty Steel: SS Pipes Outlook
Specialty Steel: SS Pipes Outlook Robust demand expected going forward Key Drivers Sectors & Demand • Make in India initiative by the government • Critical applications in key sectors like Power, providing push to local manufacturing Nuclear, Defense, Petrochemicals etc. • High value business and a
Slide 26: TMT: Our Differentiated Strategy
TMT: Our Differentiated Strategy Forward Integration from Billets to TMT Growth Drivers Welspun Strategy • Infrastructure: Massive spending expected in the sector • Sharp focus on including – ₋ Branding and creating a robust distribution network - B2C segment ₋ PM Gati Shakti National Master Plan: a
Slide 27: ABG Shipyards: Value Accretive Transaction
ABG Shipyards: Value Accretive Transaction • Transaction at Attractive Terms • Total cost of acquisition: INR 659 Cr (plus applicable taxes) • Partially built ships, equipment and metal scrap in excess of 150,000 MT • Metal/ metal scrap not required for business purposes will be disposed over 12-15
Slide 28: Sintex BAPL
Sintex BAPL • Extremely Strong Brand in the Consumer space with extensive Distribution (847 Nos) and Retail (13K) Network • National Brand having >10% market share (2018) in India • Diversification of Product Portfolio - Works well with overall theme of providing water related solutions (through DI
Slide 29: WCL Medium Term Mission (3-5 Years)
WCL Medium Term Mission (3-5 Years) • Top line of INR 15,000 Cr + • Sustainable EBIDTA of INR 1,600 Cr to INR 1,800 Cr • ROCE of 18% + • Net Cash Positive driven by strong Free Cashflows • Increase in DJSI ESG rating from 41 to 60 • Dominant player in B2B and B2C segment in line with group vision of
Slide 30: Sustainability Strategy
Sustainability Strategy Energy Efficiency Water Intensity Health & Safety Human Capital Renewable Energy Waste Intensity Gender Diversity Impacting Lives in CSV Sustainable Supply Chain Hydrogen Pipelines Carbon Capture Projects Ranked in Top One-Third in Steel Industry by S&P Global’s Dow Jones Sus
Slide 31: Sustainability Targets
Sustainability Targets Aspects FY 2020-21 Goal 2025 Goal 2030 Goal 2040 Carbon Neutrality 10% RE 20% RE Carbon neutral - % Renewable Energy (RE) Water Neutrality 0.63 KL/MT 0.55 KL/MT 0.40 KL/MT Water neutral - Water Intensity Zero waste to Waste to Landfill 1.53 MT 1.00 MT 0 MT landfill Impacting L
Slide 32: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan [email protected] 22