Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q2 FY25 Earnings Presentation
48 slides from Welspun Enterprises's earnings presentation, Oct 29, 2024
Slide 1: Exchange filing cover letter for investor presentation
WEL/SEC/2024 October 29, 2024 To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Bldg, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 532553 NSE Symbol: WELENT Dear Madam/ Sir, Subject: I
Slide 2: Welspun Enterprises Limited Q2FY25 Investor Presentation
WELSPUN ENTERPRISES LIMITED Q2FY25 Investor Presentation 29th October 2024 BSE: 532553 | NSE: WELENT |ISIN: INE625G01013 1
Slide 3: Safe Harbor
Safe Harbor The information contained in this presentation is provided by Welspun Enterprises 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 subject to
Slide 4: Welspun Enterprises At a Glance
Welspun Enterprises At a Glance FINANCIAL STRENGTH ROBUST ORDER BOOK HEALTHY PROFITABILITY ~20% Revenue CAGR ₹ ~15,200 Cr.*Consolidated Higher profitability - average (FY2021-24) Order Book PAT margin for last 4 years ~13.3% ₹866 Cr. Cash on Hand Focused on execution Returned ~₹ 800 cror
Slide 5: Inside this Presentation
Inside this Presentation About Welspun World 05 Advantage Welspun Enterprises Ltd. 06 Financials Q2FY25 13 Opportunities Ahead 17 Welspun Michigan Enterprises Ltd. 22 WEL – ESG At the Core 26 Summary Historical Financials 30 Appendix – Project & Investment Details 35 Industrial Water Treatment Plant
Slide 6: Global Conglomerate: Welspun Group
Global Conglomerate The USD 3.6 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring Global leader in Home Textiles Amongst world’s largest Line-Pipe manufactur
Slide 7: Advantage Welspun Enterprises
Advantage Welspun Enterprises 6 This is a 3-D Render of Dharat WwTF
Slide 8: Creating Value through a Clear Strategy
Creating Value through a Clear Strategy Municipal Water Treatment Remain “Asset Light” Bid for selective + projects Industrial Water Ensure P&L Treatment supports new business Sewerage Asset Deploy right mix Monetization of contractors & Treatment Monetize balance support them for sheet heavy seamle
Slide 9: Through an experienced Management
Through an experienced Management Sandeep Garg Saurin Patel Asim Chakraborty MD – WMEL CEO (Transportation) Managing Director Masters in Structural Engineering with ~40 years Civil Engineer with ~4 decades of experience Harvard Business School and IIT (Roorkee) of experience in niche engineering. Ci
Slide 10: Proven track record
Proven track record ₹ 3,900 cr. Delhi Meerut Expressway ~570 km Experience of operating ~65 km Welspun Enterprises’ completed portfolio ~570 km of Toll projects includes the Delhi–Meerut Expressway / Robust road portfolio National Expressway 3 which was featured as an Engineering Marvel of India Cap
Slide 11: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Letter of appreciation by ASSOCHAM Unique Project of “Gold award” in Excellence in Prime Minister of India the Year Award presented by Project Management under PPP Shri Narendra Modi Shri Nitin Gadkari mode from MoRTH 15th CIDC Vishwakarma Awards - Construction HSE
Slide 12: Strong platform set for future growth
Strong platform set for future growth Robust portfolio of ~₹ 15,200 Cr.* Current order book at Water, Tunnelling, Road (excluding GST) & WMEL Segment Break-up Order Book By Source 92% EXTERNAL Water 63% Road 13% WMEL 11% Tunnelling CAPTIVE 13% (HAM Projects) 8% Current Order Book provides strong rev
Slide 13: Way forward: Trends towards Diversification
Trends towards Diversification Trend in Order Book By Source WEL Portfolio (in ₹ Cr.) Captive External Tunnelling (HAM) EPC 13% 15,200 EPC, 4% 21% 9,049 FY17 Water Q2FY25 EPC Road EPC 3,900 57% 9% Captive (HAM), 96% Development Orderbook* Development (Divested) Way Continue approach of prudent bid s
Slide 14: Financials
Financials 13
Slide 15: Income Statement Snapshot - Standalone
Income Statement Snapshot - Standalone Particulars (₹ Cr.) Q2 FY25 Q2 FY24 YoY % H1FY25 H1FY24 YoY % ~20% Revenue CAGR over Revenue from last 4 years 663 542 22% 1,409 1,223 15.2% Operations ~30% EBITDA CAGR over Other Income 25 29 -13% 55 57 -4.5% last 4 years Total Income 688 571 20% 1,464 1,281 1
Slide 16: Income Statement Snapshot - Consolidated
Income Statement Snapshot - Consolidated ~23% Revenue CAGR over Particulars (₹ Cr.) Q2 FY25 Q2 FY24 YoY % H1FY25 H1FY24 YoY % last 4 years Total Income 838 693 21% 1,798 1,443 25% ~25% EBITDA CAGR over last 4 years EBITDA 150 130 16% 343 286 20% Average PAT margin of 14% EBITDA margin 17.9% 18.7% -8
Slide 17: Balance Sheet Snapshot - Standalone
Balance Sheet Snapshot - Standalone Returned ~INR 800 crores Balance Sheet Snapshot (₹ Cr.) 30th September2024 31st March 2024 through buyback & dividends over FY18-FY24 Net worth 2,533 2,422 Gross Debt 3 0 Grew Networth at ~10% CAGR over 4 years, post - Long Term Debt - - paybacks - Short Term Debt
Slide 18: Opportunities Ahead
Opportunities Ahead 17
Slide 19: Water Opportunity – Targeted for Growth
Water Opportunity – Targeted for Growth ₹ 3.6 tn Across Focus Segments Identified clear segmented opportunities at nascent stage India’s water challenge catering to ~18% of world Curating solutions leveraging group population with ~4% or synergies. world’s fresh water resources. Cultivate and
Slide 20: Industry dynamics - Water Sector
Industry dynamics - Water Sector Urban Water & Sanitation - Additional ₹ 12.6 tn capital expenditure GoI targets households with to be spent in building Water piped-water supply in rural ₹3.3 tn ~₹ 699 bn Infrastructure areas Will be spent in building Urban Water Infrastructure Allocated for piped (
Slide 21: Transport Opportunities – Targeted for Growth
Transport Opportunities – Targeted for Growth ₹ 3.0 tn Across Focus Segments India’s length of NH will Target projects that meet double from 146,145 over internal return threshold the next 5 years Ensure selection of projects Public Private Partnerships with higher complexity & is the way forwar
Slide 22: Industry dynamics - Roads Sector
Industry dynamics - Roads Sector Attractive Opportunities & Road Construction NHAI Awards and Strong Policy support Per Day (km) Execution (km)* 6,644 6,318 6,306 12,349 Km 18% 37 5,337 35 18% of projected infrastructure 34 National Highways has expanded 4,788 investment of ₹111 trillion in by 12,34
Slide 23: Welspun Michigan Engineers Ltd. (WMEL)
Welspun Michigan Engineers Ltd. (WMEL)* *(Formerly known as Michigan Engineers Private Limited) 22
Slide 24: About Welspun Michigan Engineers Ltd. (WMEL)
About Welspun Michigan Engineers Ltd. (WMEL) WMEL, now part of Welspun Pioneer and leader in the Strong working relationships An integral aspect of our World was established in niche segment of Trenchless with Municipal Corporations operations is vertical 1973. WMEL is positioned as Technology in In
Slide 25: Proven track record (WMEL)
Proven track record (WMEL) Tunneling teams can Successful track record of execute projects requiring executing numerous projects Strong vertical integration pipes ranging from 450 across India’s largest with in-house engineering, mm diameter to 3850 mm Metropolitan cities including fabrication
Slide 26: Welspun Michigan Engineers (WMEL) - Snapshot
Welspun Michigan Engineers (WMEL) - Snapshot Acquisition by Welspun Enterprises in August 2023 – Mr. Saurin Patel has led WMEL into New Segments to Expertise and reach of Welspun Group to transform cater to Emerging Needs in India Growth Trajectory Financial Snapshot Unexecuted Order book of ~ 1,600
Slide 27: WEL - ESG At The Core
WEL - ESG At The Core 26
Slide 28: Leading Practices - Environment, Health & Safety
Leading Practices - Environment, Health & Safety 01 GHG Inventory and • Scope 1 & 2 emission adopted India GHG inventory program, IPCC Guidelines for Data Management National GHG inventories and Central Electricity Authority (CEA) India • Regular trainings & awareness sessions for water savings, red
Slide 29: Leading Practise – CSR initiatives 3Es
Leading Practise – CSR initiatives 3Es EDUCATION ENVIRONMENT EMPOWERMENT HEALTH Wel-Shiksha enhances education by Welspun's green initiatives are To empower athlete from Our initiative aims to empower modernizing govt classrooms, integrated into the WelPrakruti challenging backgrounds to realize wom
Slide 30: Leading Practice – Governance and Oversight
Leading Practice – Governance and Oversight Independent & Experienced Board Board Committees 30,000+ Audit Committee • 3 Members - all Independent Directors Experienced Board Board NRC* Average Age Strength 63 7 • 3 Members - all Independent Directors STIGSR* 4 • 3 Members - all Independent Director
Slide 31: Summary Historical Financials
Summary Historical Financials 30
Slide 32: Highway Portfolio Monetization - Actis Deal
Highway Portfolio Monetization - Actis Deal Contract Authority In ₹ Cr. 2,309 Project Name Status Type /Client 1,715 Delhi-Meerut Expressway (Pkg 1) HAM NHAI COD achieved 1.5x Chutmalpur-Ganeshpur HAM NHAI COD achieved Gagalheri-Saharanpur-Yamuna nagar HAM NHAI COD achieved Chikhali-Tarsod HAM NHAI
Slide 33: Summary Standalone Financial Highlights
Summary Standalone Financial Highlights Particulars (₹ Cr.) FY-21 FY-22 FY-23 FY-24 Revenue 1,410 1,307 2,676 2,450 Operating EBITDA 169 144 237 337 Other Income 29 38 99 102 Exceptional income 0 0 510 - Finance Cost 45 53 76 33 Depreciation 12 12 10 10 Tax 34 23 47 111 PAT (With Exceptional) 108 95
Slide 34: Balance Sheet Summary
Balance Sheet Summary Particulars (₹ Cr.) FY-21 FY-22 FY-23 FY-24 Gross Debt 602 502 292 - Cash & Cash Equivalent 381 194 1,842 923 Net Cash -221 -307 1,549 923 Net Worth 1,819 1,894 2,465 2,422 Core Investments 1,622 1,812 488 751 Long Term Investments 320 393 424 448 Payback to Investors 30 22 135
Slide 35: Consistently Light on Working Capital
Consistently Light on Working Capital Net Working Capital (Days) 89 71 73 60 15 3 FY-21 FY-22 FY-23 FY24 -5 -19 Debtor Days Net Working Capital Key Highlight of WEL Model • WEL Consistently operates with near negative working capital • Selective sourcing of inventory to ensure quality & timely work
Slide 36: Appendix: Existing Portfolio of Projects
APPENDIX Existing Portfolio of Projects HAM: Aunta - Simaria (Ganga Bridge with Approach 1 Roads) 2 HAM: Sattanathapuram – Nagapattinam 3 EPC: Varanasi Aurangabad NH2 Project 4 EPC: UP State Water and Sanitation Mission 5 EPC: Dharavi Wastewater Treatment Facility (Mumbai) 6 EPC: Bhandup Water Treat
Slide 37: Diversified Infrastructure Portfolio
Diversified Infrastructure Portfolio Project Names Contract Type Authority / Client Status Dewas Water BOT MPSIDC Operational Water/ Wastewater UP State Water and Sanitation Mission EPC SWSM Under Execution Treatment Bhandup Water Treatment Complex (Mumbai) EPC BMC Under Execution Dharavi Wastewater
Slide 38: HAM: Aunta-Simaria
HAM Project details Project Length (Kms) 08.15 Km Aunta-Simaria Acquisition Date Aug 2018 (Ganga Bridge with Financial Closure Achieved Appointed Date 30th Aug 2018 Approach Roads) Scheduled Construction Period 42 Months^ Concession Period after COD 15 Years ^ EOT up to 29th October 2024 approved by
Slide 39: HAM: Sattanathapuram-Nagapattinam (SNRP)
Project details HAM Project Length (Kms) 55.755 Km Sattanathapuram- Award Date July 2018 Financial Closure Achieved Nagapattinam Appointed Date 5th Oct 2020 (SNRP) Scheduled Construction Period 24 months^ Concession Period after COD 15 Years ^ EOT up to 17th January 2025 approved by NHAI SCOPE 4 lan
Slide 40: EPC: Varanasi Aurangabad NH2 Project (VARP)
Project details EPC Project Length (Kms) Original Contract 192.4 Varanasi Aurangabad Commencement Date 30th Sep 2021 NH2 Project Construction Period Additional Contract 24 Months (VARP) Construction Start Date May 2022 Construction End Date Nov 2023* • Sought EOT till 31st March 2025 SCOPE Six lanin
Slide 41: EPC: UP State Water and Sanitation Mission
EPC Project details UP State Water and Project Scope Water Supply to Villages Sanitation Mission Est aggregate contract value (excluding O&M value and ₹ 2,900 Cr. GST) SCOPE S No. Revenue District No of Division Villages Rural Water Supply project under Jal Jeevan Mission by 1 Varanasi Jaunpur 747 S
Slide 42: EPC: Dharavi Wastewater Treatment Facility
EPC Project details Wastewater Treatment 60 Months for Design Build, Facility - Mumbai Sewage Contract period 15 years of operation and maintenance Disposal Project, Dharavi Welspun Enterprises 80% share in JV SCOPE Status Design, Build, Operation and LOA received on May 27, 2022 Maintenance of 418
Slide 43: Dharavi Project - India's First Multi-Storeyed Wastewater Treatment Facility
EPC Dharavi Project - India’s First Multi-Storeyed Wastewater Treatment Facility • A first-of-its-kind project in the country, this facility is being constructed vertically, due to the space constraints at the project site. • Being built on just 12.7 acres of land, it has one of the lowest footprint
Slide 44: EPC: Water Treatment Plant – Bhandup Complex, Mumbai
EPC Project details Water Treatment Plant – Contract period 48 Months for Design Build, 15 years of operation and Bhandup Complex, maintenance Mumbai Welspun Enterprises 100% Status SCOPE LOA received on Feb 29, 2024 Design, Build, Operation and Maintenance of 2,000 MLD Received Notice to Commence e
Slide 45: EPC: Water Conveyance Tunnel, Mumbai
EPC Project details Water Conveyance Tunnel 93 Months for Design Build Contract period of a 8.48 km tunnel with a from Dharavi WWTF to 3,500 mm bored diameter Ghatkopar WWTF– Mumbai Welspun Enterprises 100% Status SCOPE LOA received on Oct 8, 2024 Design and construction of Tertiary Treated Water To
Slide 46: BOT: Dewas Water
BOT Dewas Sector Project Name Location COD Concession End Water Water Supply Dewas Water* MP Apr-20 Jun-37 *Dewas Water – Modified Project Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas FY24 revenue stands at ₹ 12.37 Cr. with EBITDA of ₹ 6.
Slide 47: Investment in Oil & Gas blocks
Block Name Location AWEL WEL Status Investment Stake Effective Stake in Oil & Gas MB-OSN-2005/2 Mumbai 100.0% 35.0% AWEL drilled a well and had made a Offshore hydrocarbon discovery wherein three layers have proven to be gas bearing, two layers have blocks: flown good amount of gas to surface. A dis
Slide 48: Thank You
Thank You For further details please contact investorrelations_WEL@welspun.com/Siddharth_Bharadwaj@welspun.com Mr. Siddharth Bharadwaj, Lead - Investor Relations Mr Salil Bawa, Head – Group Investor Relations CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED CIN: L45201GJ1994PLC023920 C/8, BKT House, Tra