Welspun Corp Limited · NSE:WELCORP
Welspun — Q1 FY22 Earnings Presentation
32 slides from Welspun's earnings presentation, Jul 30, 2021
Slide 1: Cover letter to stock exchanges
WCL/SEC/2021 July 29, 2021 To, BSE Ltd. National Stock Exchange of India Ltd. Department of Listing, (Symbol: WELCORP, Series EQ) P. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Mumbai – 400 001. Complex, Bandra (E), Mumbai – 400 051. (Scrip Code: Equity - 532144), (NCD – 948505, 960468, 96
Slide 2: Business Update / Investor Presentation
Business Update / Investor Presentation:- Also attached is the Investors’ Presentation and Business Update which is being released to the media. The Board meeting concluded at 14:10 p.m. Kindly take note of the above. Thanking You. Yours faithfully,
Slide 3: Business Update: Investing for Growth
BUSINESS UPDATE Investing for Growth July 29th, 2021, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended June 30th, 2021. PAT at Rs. 97 cr up +68.6% YoY (after Minorities & share of JVs) EBITDA at Rs. 203 cr
Slide 4: Business Update: Tax Rate and Business Outlook
BUSINESS UPDATE 8. Corporate Tax Rate The company has fully utilized its existing tax credits in FY21 and has switched to the new corporate tax rate of 25.17% in FY22 from the existing 34.94% (both including surcharges) in India. 9. Business Outlook Last year, OPEC+ cut production by a record 10 mil
Slide 5: Business Update: Outlook and Scheme of Arrangement
BUSINESS UPDATE sewage treatment capacities. Both these policy initiatives combined are expected to boost the demand for DI and HSAW pipes. Despite the optimistic demand scenario, there has been a steep increase in the raw material prices which has impacted the costs for major projects. This has res
Slide 6: Business Update: Welspun Steel Scheme
BUSINESS UPDATE The Company has applied, and is awaiting approval of the stock exchanges, under regulation 37 of the SEBI (LODR), 2015, before filing the Scheme with the NCLT. WSL manufactures BIS Certified Steel Billets and Direct Reduced Iron (DRI). It is implementing a Greenfield project for manu
Slide 7: Business Update: ESG Initiatives
BUSINESS UPDATE Strengthening Sustainable Supply Chain Framework In the process of rolling out ESG compliant revised supplier code of conduct Awareness session with internal stakeholders covering supply chain sustainability Map existing supplier certifications such as SA8000, EcoVadis etc. wit
Slide 8: Management Comments
BUSINESS UPDATE Management Comments Commenting on the results, Mr. B. K. Goenka, Chairman, Welspun Group said, “Our performance has been stable despite the second wave of the COVID-19 pandemic. We continue to keep our employees, suppliers and customers health and safety as our highest priority. Dema
Slide 9: Operating EBITDA Reconciliation and Performance Snapshot
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q1FY22 Q4FY21 Q1FY21 FY21 FY20 Reported EBITDA 203 321 197 1,010 1,276 Treasury income (33) (47) (13) (88) (61) Profit on sale of Land (incl. interest) - - - (62) -
Slide 10: Consolidated Balance Sheet and Saudi Financials
BUSINESS UPDATE Figures in Rs. Cr Consolidated Balance Sheet - Key figures Jun-21 Mar-21 Net Fixed Assets (incl CWIP) 1,753 1,683 Net Current Assets 2,018 2,133 Net Debt / (Net Cash) (853) (620) Net Worth 3,910 3,793 ROCE (pre-tax) 16.7% 17.9% ROCE (pre-tax) = TTM EBIT adj. for one-offs/ Avg. Capita
Slide 11: Conference Call and About Welspun Corp
BUSINESS UPDATE Q1 FY22 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Friday, 30th July 2021 Time: 10:00 AM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 International
Slide 12: Welspun Corp Limited
Welspun Corp Limited Investor Presentation | July 2021
Slide 13: 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 14: Q1 FY22 at a Glance
Q1 FY22 at a Glance 119 KMT 175 KMT 487 KMT Global Production Global Sales Global Order Book 203 crs 12,000 / 97 crs US $160 EBITDA Op EBITDA / Ton Profit After Tax 3.7 1.766 Mn 853 crs MT Net Cash Position EPS Active Bids Future Outlook Note: Pipe Sales & Production volumes, Order Book and Future B
Slide 15: Financial Results for Q1 FY22
Financial Results for Q1 FY22 Particulars (Rs Cr) Q1FY22 Q1FY21 YoY Pipe Sales Volume (KMT) 175 222 -21.0% Total Income from Operations 1,299 2,069 -37.2% EBITDA 203 197 2.9% Depreciation 55 53 2.2% Finance cost 17 28 -39.7% Profit before tax and share of JV 131 115 13.6% Tax 36 78 -53.8% Non Contro
Slide 16: Operational Performance: Pipes (Capacity and Volumes)
Operational Performance: Pipes (Capacity and Volumes) Achieved > 1,000 KMT of Sales CONSOLIDATION PHASE Volume in previous 8 out of 9 years 1,850 2,200 2,425 2,425 2,425 2,425 2,425 2,425 2,555 2,555 2,555 2,555 1018 1019 1152 1100 1082 1100 1450 1450 1279 1502 1003 936 950 371 950 501 641 695 816 9
Slide 17: Financial Performance
Financial Performance 2nd Highest EBITDA in FY21 despite being a Pandemic year Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Sales Volume (KMT) 1,018 1,019 1,152 1,100 936 1,082 1,279 1,502 1,003 175 Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 6,440 1,299 EBITD
Slide 18: Sales Volume Mix
Sales Volume Mix Consistent Performance in India 764 635 646 632 650 629 626 578 510 500 393 413 423 236 255 222 217 265 180 254 165 197 237 138 123 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 India (KMT) USA (KMT) Saudi (KMT) Investor Presentation 7
Slide 19: Diversification of Product Portfolio
Diversification of Product Portfolio • Global Leadership Position in this Segment Large Diameter • Focus on expanding customer base and presence Existing Pipes Business • No Capex spend apart from regular maintenance • Greenfield Project at Anjar with capacity of 400 KMPTA Greenfield Ductile Iron Pi
Slide 20: Our ESG Journey
Our ESG Journey Environmental & Social Detailed Benchmarking Mapping universe of Arrive at baseline Formulation of a Public reporting and versus peers on ESG issues, objectives and scenario in line with strategic roadmap disclosures of ESG factors risk and prioritizing WEF metrics and outlining key
Slide 21: 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 22: Strategy for Long Term Value Creation
Strategy for Long Term Value Creation 1 Business Growth & Diversification to improve Earnings Predictability and Enhance Margins 2 Delivering on Growth Plans and Operational Excellence 3 Maintain Balance Sheet Strength 4 Continue to integrate Digital Technologies into all areas of Business 5 Thrust
Slide 23: 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 15+ 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 24: 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 SAW Pipes (KMT) 1,655 525 375 2,555 DI Pip
Slide 25: 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 15+ mn MT Pipes with Long te
Slide 26: Approvals & accreditations from marquee customers is a significant entry barrier
Approvals & accreditations from marquee customers is a significant entry barrier Oil & gas Transportation Others Investor Presentation 15
Slide 27: 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 28: Product Information
Product Information HSAW Pipes LSAW Pipes (Helically welded) (Longitudinally welded) ERW Pipes DI Pipes (Electric Resistance (Ductile Iron) Welded) 18 – 140 inch 16 – 60 inch 80– 1200 mm 1.5 – 20 inch diameter, 6 mm to diameter, diameter, K7 and diameter, 4 mm to 25 mm 6 mm to 43 mm K9 class 14 mm t
Slide 29: 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 30: 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 31: 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 32: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan [email protected] October 2020