Welspun Corp Limited · NSE:WELCORP
Welspun — Q2 FY2024 Earnings Presentation
39 slides from Welspun's earnings presentation, Nov 9, 2023
Slide 1: Letter to stock exchanges: Business Update and Investors' Presentation
WCL/SEC/2023 November 08, 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: Strong performance
BUSINESS UPDATE Strong performance Q2&H1FY24 performance in line with our guidance Nov 8, 2023, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended September 30, 2023. Complete Pipe Solutions: Sales volume of
Slide 3: Complete Pipe Solutions: Line Pipes
BUSINESS UPDATE (A) Complete Pipe Solutions: (A.1) Line Pipes Line Pipes - Sales (KMT) 57% 387 36% 247 202 148 Q2 FY23 Q2 FY24 H1FY23 H1FY24 Sales volume for India & USA Line Pipes Active Bid Book (KMT) 3,114 2,552 2,029 1,748 1,538 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Global Oil & Gas Scenario: Whi
Slide 4: Key Drivers - India
BUSINESS UPDATE (A.1.1) Key Drivers - India According the OPEC, the largest contributions to the Oil demand from Non- OECD countries will come from India with 6.6 million barrel/ day addition between 2022 to 2045 India’s natural gas demand is also likely to almost quadruple to 4.1 million barrel
Slide 5: Key Drivers - Saudi Arabia
BUSINESS UPDATE (A.1.3) Key Drivers - Saudi Arabia As per the Saudi Aramco, it expects to award contracts for 14 pipeline projects between 2023 and 2025 12,000 km of pipelines is expected to be required for 90 projects that Saudi Aramco plans to award contracts for Saudi Aramco raised its upst
Slide 6: DI Pipes Outlook and Capacity Expansion
BUSINESS UPDATE Outlook: Government’s strong focus on improving water infrastructure in the country through initiatives such as “Jal Jeevan Mission” and “Nal se Jal” has already created strong demand for DI Pipes in the country. Additionally, with progress of “Amrut 2.0” and other such initiatives,
Slide 7: Stainless Steel and Building Materials: Sintex
BUSINESS UPDATE Product level GHG footprint available for all products of WSSL, approved internally as well as by third party vendor. This is to help to continue to be a lead supplier to EU markets. Outlook: The current Order Book stands at ~ 4,507 MT valued at ~ INR 169 crore. We expect to secure
Slide 8: Sintex Outlook and TMT Bars
BUSINESS UPDATE Outlook: The WST market size in India is expected to grow at a CAGR of 19% between 2022 and 2026 to become double at a size of INR 9,000- 10,000 crore. Plastic pipe market share on the other hand is likely to grow at CAGR of 10-12% between 2021 and 2025 to reach INR 60,000 crore whic
Slide 9: TMT Market Penetration and Nauyaan Shipyard
BUSINESS UPDATE Market penetration has been progressing well with 98% districts are now covered in Gujarat and 213 dealers are connected. Our marketing approach through innovative digital channel to address B2C segment, has been paying off Outlook: Government’s focus on infrastructural development
Slide 10: Governance and Company Outlook: Guidance for FY24
BUSINESS UPDATE • Zero Waste to Landfill: Waste minimization, reuse and recycling through authorized vendors are practiced for the same Social: Aligned with UN Sustainable Development Goals through various social initiatives and programmes Governance: Strong compliance with all the statutory require
Slide 11: Management Comments
BUSINESS UPDATE Management Comments “I am pleased to share that our performance has further strengthened in the quarter gone by despite various challenges in the global macro-economic scenario. The Q2 & H1FY24 performance has raised the bar for the rest of FY24. Strong operational performance helped
Slide 12: Consolidated Performance Snapshot
BUSINESS UPDATE Consolidated Performance Snapshot: - Prior period figures are restated after the acquisition of the Steel business of Welspun Steel Limited and merger of Welspun Metallics Limited - Sales Volume & Order Book excludes our Saudi operations Sales Volumes Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY
Slide 13: Conference call details and About Welspun Corp
BUSINESS UPDATE Q2 FY24 Investor & Analyst conference call: On Thursday, November 9, 2023 at 10.00 AM (IST) Primary Access: +91 22 6280 1143 / +91 22 7115 8044 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 Welspu
Slide 14: Welspun Corp Limited Q2FY24
Welspun Corp Limited Investor Presentation Q2FY24 Date: 8th November, 2023
Slide 15: 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 16: Sales Volumes at a Glance: Q2FY24
Sales Volumes at a Glance: Q2FY24 Pipe Solutions Building Materials LINE PIPES DI PIPES Water Storage Tanks 202 KMT 46 KMT 3,565 MT (+36% YoY) (+1398% YoY) (+16% YoY) SS PIPES SS BARS TMT BARS 1,209 MT 5,351 MT 28 KMT (+20% YoY) (+395% YoY) (+39% QoQ)* Notes: 1. Line Pipe Sales volumes does not incl
Slide 17: Consolidated Financial Performance: Q2FY24
Consolidated Financial Performance: Q2FY24 PARTICULARS (INR crore) Q 2 FY24 Q2 FY23 YoY Total Revenue from Operations 4,059 1,964 107% Other income 102 177 (42%) Reported EBITDA 501 46 994% Depreciation and Amortisation 86 70 22% Finance Cost 75 47 58% Profit before tax and share of JVs 341 (72) NA
Slide 18: Consolidated Financial Performance: H1FY24
Consolidated Financial Performance: H1FY24 PARTICULARS (INR crore) H 1 FY24 H1 FY23 YoY Total Revenue from Operations 8,129 3,286 147% Other income 151 250 (39%) Reported EBITDA 920 147 544% Depreciation and Amortisation 172 131 31% Finance Cost 167 78 114% Profit before tax and share of JVs 581 (62
Slide 19: Walking the talk: Gross and Net Debt
Walking the talk Guidance YTD Achievement Gross debt (INR crore) Gross Debt (INR Crore) 3,316 3,316 3,178 2,795 2,021 1,940 1,211 FY22 FY23 FY24* Dec-22 Mar-23 Jun-23 Sep-23 Net Debt (INR crore) Net Debt (INR Crore) 1,138 1,837 1,138 231 835 315 FY22 FY23 FY24* -173 Dec-22 Mar-23 Jun-23 Sep-23 Note:
Slide 20: Walking the talk: EPS and ROCE
Walking the talk Guidance YTD Achievement EPS (INR) 26.8 EPS (Rs) 21.0 16.8 16.8 7.9 7.9 FY22 FY23 FY24* FY22 FY23 H1FY24 ROCE 16.0% ROCE 11.0% 10.1% 11.0% 7.3% 7.3% FY22 FY23 FY24* FY22 FY23 H1FY24 Note: *FY24 figures are estimated
Slide 21: 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 22: Outlook: Pipe Solutions Vertical
Outlook: Pipe Solutions Vertical
Slide 23: 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 24: Line Pipes: Key Drivers
Line Pipes: Key Drivers INDIA USA SAUDI ARABIA • City Gas Distribution (CGD) S t r o n g • Natural Gas exports from the USA at • Saudi Aramco expects to award natural gas and expanding city 20.4 bcf/ day for H1CY23 has been the contracts for 14 pipeline projects gas distribution systems are set high
Slide 25: Ductile Iron Pipes
Ductile Iron Pipes Huge Focus on creating drinking water supply infrastructure in India DI Pipes - Sales (KMT) 46 27 23 12 3 Immediate Focus Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Market is West, Central and N ort h India Strong order backlog of ~246 KMT valued at ~ INR 1,960 crore
Slide 26: Ductile Iron Pipes: Value added products
Ductile Iron Pipes: Value added products Capacity expansion by 100 KMTPA at Anjar to take total capacity to 500 KMTPA • Time line: in 12 months • Investment required: ~INR 300 crore Rationale: New capacity is planned for diameter range of DN 100 to DN 300 Consistent demand improvement expected d
Slide 27: Stainless Steel Pipes and Bars
Stainless Steel Pipes and Bars • New grades development & introduction continues • Geography and territory expansion continues • Government’s “Make in India” policy showing impact on ground, global tenders converting into domestic tenders • Sustainability and excellence initiatives progressing well
Slide 28: Projections: Pipe Solutions Vertical
Projections: “Pipe Solutions Vertical” Line Pipes (KMT) DI Pipes (KMT) 8% CAGR 450 1250 122% 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) 25% CAGR 8,000 112% CAGR 65,000 4,059 2,915 1,937 1,531 6,869 - FY21 F
Slide 29: Outlook: Building Materials Vertical
Outlook: Building Materials Vertical
Slide 30: 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 31: Sintex: Access to Market
Sintex: Access to Market 19 Q2FY24 WST sales volume at Manufacturing Locations 1 3,565 MT (+16% YoY) • Kalol Gujarat 48 34 24 • Nalagarh Himachal Pradesh 2 7 • Namakkal Tamil Nadu 40 93 28 1 • Uluberia West Bengal 43 1 1 • Butibori (Nagpur) Maharashtra 1 27 38 2 60 • Guwahati Assam 31 23 52 88 Sinte
Slide 32: 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 33: 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 34: 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 35: Focus on ESG
Focus on ESG
Slide 36: ESG: Environment
ESG: Environment Welspun Corp ranks in the Top 7% in Global Steel Industry in S&P Global’s Long Term Sustainability Goals DJSI Corporate Sustainability Assessment 1) Carbon Neutrality – 10% (2025), 20% (2030), 100% (2040) WCL: a) Installation of renewable energy of capacity 970 kW at Anjar, 2 MW at
Slide 37: ESG: Social
ESG: Social Welspun Programs Alignment with UN Sustainable Development Goals Total no. of beneficiaries for H1- FY23: ~496,000 Education Programs Empowerment Programs Health Programs
Slide 38: ESG: Governance
ESG: Governance No pledging of promoter shares No Cross Holdings Professional management Independent Board of Directors • Female gender ratio of Board members – 38 % • Independent directors (~55% of the board) with illustrious and diverse backgrounds • Key committees led by independent directors Eth
Slide 39: Thank You!
Thank You! Welspun Corp Limited CIN: L27100GJ1995PLC025609 For further queries, contact Name : Mr. Goutam Chakraborty Name : Mr. Salil Bawa Email : goutam_chakraborty@welspun.com Email : salil_bawa@welspun.com www.welspuncorp.com Connect with us: /TheWelspunGroup /WelspunGroup /welspungroup /company