Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q3 FY23 Earnings Presentation
32 slides from Welspun Living's earnings presentation, Jan 30, 2023
Slide 1: Earnings Presentation Q3 FY23
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q3 FY23 30th January 2023 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 2: Inside this Presentation
Inside this Presentation Executive Summary 03 Management Commentary 04 Awards & Recognition 05 Global Presence 06 Key Highlights 07 Quarterly summary 08 9M FY23 summary 10 Operational Highlights 14 Quarterly Segment Results 17 Enhancing Capacity 18 Profit & Loss Summary 20 Financial Statements Summa
Slide 3: Welspun India - Global Home Textiles Leader
Welspun India - Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.3 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture larger share of the organization with landscape. With a strong global well-defined D
Slide 4: Management Commentary
Management Commentary “It is very heartening to see our domestic consumer business achieving a record quarterly revenues, taking us closer to our vision of ‘Har Ghar Welspun’. Despite being a challenging year, domestic consumer business has grown by 39% YTD and Welspun brand has consolidated its lea
Slide 5: Awards & Recognition
AWARDS & RECOGNITION – Feathers in our cap W a t c h v id e o 2022 2022 2022 Read More Welspun Vapi awarded a Brand SPACES campaign wins ET Ascent 17th Employer Branding Awards 2022 - Welspun Flooring Ltd bags Certificate of Merit by Ministry Star Industry Award in the ‘best use of Recognized by Wal
Slide 6: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India ROW Over 50 Countries Presence welspunindia.com 6
Slide 7: Key Highlights
Key Highlights Brands E-Commerce Innovation Click the I cons to know more Total Income Net Debt stood at ₹ 19,092 mn vs. ₹ 25,420 mn Q3 ₹ 19,041 mn (Dec 2021) 9M ₹ 60,196 mn EBITDA Net Debt/Equity is 0.48 Vs. 0.65 (Dec 2021) Q3 ₹ 2,286 mn.@ 12.0% Margin 9M ₹ 5,538 mn @ 9.2% Margin Advance Te
Slide 8: Quarterly Highlights - QoQ
Quarterly Highlights - QoQ (₹ Million) Revenue EBITDA PBT PAT Cash Profit 19,041 2,286 785 424 1,778 Growth (QoQ) (10.9%) 50.7% 471.5% 389.0% 50.2% Margin (%) 12.0% 4.1% 2.2% Margin Expansion/(Contraction) (Q-o-Q) 491 bps 348 bps 182 bps EPS/CEPS 0.43 1.80 welspunindia.com 8
Slide 9: Quarterly Highlights - YoY
Quarterly Highlights - YoY (₹ Million) Revenue EBITDA PBT PAT Cash Profit 19,041 2,286 785 424 1,778 Growth (YoY) (21.9%) (30.8%) (53.0%) (68.0%) (35.1%) Margin (%) 12.0% 4.1% 2.2% Margin Expansion/(Contraction) (Y-o-Y) (155 bps) (273 bps) (320 bps) EPS/CEPS 0.43 1.80 welspunindia.com 9
Slide 10: 9MFY23 Highlights
9MFY23 Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 60,196 5,538 1,286 734 4,279 Growth (YoY)* (14.3%) (48.4%) (80.5%) (84.5%) (46.7%) Margin (%) 9.2% 2.1% 1.2% Margin Expansion/Contraction (Y-o-Y) (608 bps) (943 bps) (551 bps) EPS/CEPS 0.74 4.33 *9MY22 numbers adjusted for ROSCTL of Q4
Slide 11: Quarterly Highlights
Quarterly Highlights (₹ Million) Particulars 31-Dec-22 31-Dec-21 30-Sept-22 Net Worth 39,416 39,371 39,348 Short Term Loans 17,051 20,449 17,557 Long Term Loans 11,511 12,130 12,375 Net Debt / Equity (x) 1.00 of which Net Flooring Debt 8,967 8,088 8,986 0.80 0.60 Gross Debt 28,562 32,580 29,931 0.40
Slide 12: Revenue Highlights
Revenue Highlights (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q3FY23 3,718 7,677 1,196 964 1,328 22 1,435 Sales Contribution (%) 23% 47% 7% 6% 8% 0% 9% Q2FY23 3,185 10,821 1,249 982 971 42 1,313 Sales Contribution (%) 17% 58% 7%
Slide 13: Revenue Highlights
Revenue Highlights (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Comm Flooring – B2B Flooring – Branded Textiles Q3FY23 10,683 2,362 986 761 1,148 401 Sales Contribution (%) 65% 14% 6% 5% 7% 2% Q2 FY23 13,147 1,987 1,024 975 1,132 298 Sales Contrib
Slide 14: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q3FY23 Q2FY23 Q3FY22 Capacity (%) (%) (%) Bath Linen MT 90,000 16,279 72% 13,538 60% 18,387 88% Bed Linen Mn mtrs 108 12.6 47% 13.9 51% 22.3 99% Home Rugs & Carpets Mn s
Slide 15: Operational highlights (9M FY 23)
Operational highlights (9M FY 23) Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM 9M FY23 9M FY22 Capacity (%) (%) Bath Linen MT 90,000 41,449 62% 57,335 90% Bed Linen Mn mtrs 108 40.5 50% 67.3 100% Home Textile Rugs & Carpets Mn sq mtrs 12.0 5.1 56% 7.5 83% Advan
Slide 16: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) YoY QoQ YoY* Particulars Q3 FY23 Q3 FY22 Q2FY23 9M FY23 9M FY22 Change Change Change Total Income 19,041 24,379 (21.9%) 21,366 (10.9%) 60,196 71,303 (14.3%) EBITDA 2,286 3,305 (30.8%) 1,517 50.7% 5,538 11,781 (48.4%) EBITDA Margin (%) 12.0% 13.6% (155 bps) 7.1% 49
Slide 17: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ YoY* Segmentation (%) Particulars Q3 FY23 Q3 FY22 Q2 FY23 9M FY23 9M FY22 Change Change Change Q3 FY23 Home Textile Revenue 17,575 22,508 (21.9%) 20,114 (12.6%) 56,210 67,181 (15.0%) EBITDA 2,062 3,126 (34.0%) 1,276 61.6% 5,054 11,707 (52.6%) EBI
Slide 18: Enhancing capacity
Enhancing capacity Towels HOME TEXTILES: 80,000 MT 85,400 MT 90,000 MT Capacity expansions at Vapi and Anjar Capacity in FY21 Capacity in FY22 Starting Q2FY23 operationalized in H1FY23 ADVANCED TEXTILES: Bed Linen Spunlace expansion commercialized in Q4FY22 90 Mn. Meters 90 Mn. Meters 108 Mn. Me
Slide 19: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 19
Slide 20: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 FY22 9M FY 23 Total Income 61,318 66,084 68,362 74,080 93,773 60,196 Growth YoY* % 8.8% 7.8% 3.4% 8.4% 26.6% (14.3%) EBITDA 12,046 11,467 13,098 14,198 14,246 5,538 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% 9.2% Depreciation 5,042 4
Slide 21: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 9M FY 23 Net Worth 26,057 27,793 29,721 36,447 39,717 39,416 Short Term Loans 12,580 14,080 17,717 17,452 19,742 17,051 Long Term Loans 20,228 19,024 16,704 10,962 12,142 11,511 of which Net Flooring Debt
Slide 22: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 9M FY23 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 0.48 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 2.39 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 2.93 Current ratio 1.42 1.25 1.19 1.33 1.37 1.44 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 2.11 Total
Slide 23: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through Engaged with Cotton Farmers to Board Committee on ESG a major transformation where Implemented ISO 14001 train & enable them grow Executive remuneration linked to we are embedding sustaina
Slide 24: Sustainability Initiatives – Growing business responsibly
Sustainability Initiatives – Growing business responsibly Rated “Low Risk” on ESG factors by one of the top ESG rating agency Sustainalytics DJSI ratings Crisil ratings Among Top 100 Sustainable companies in India by ET-Futurescape Welspun India’s Sustainability case study is now a part Score
Slide 25: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q3FY 23 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 82% 50% 100% Fresh Water Positive in Production 13.5 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 12.6 MT 0 MT 0 MT che
Slide 26: Share Holding Summary
Share Holding Summary Shareholding Pattern (Dec 2022) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 6.1% HSBC Mutual Fund Mutual Funds/AIF 2.0% Aditya Birla Sunlife MF Insurance Co’s 3.7% Nippon Mutual Fund Public 17.8% Tata Mutual Fund welspunindia.com 26
Slide 27: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India 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 change
Slide 28: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun India Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com welspunindia.com TheWelspunGroup welspungroup
Slide 29: Annexure
Annexure
Slide 30: Owned Brands – Domestic
Diversified Product Portfolio Owned Brands – Domestic BED LINEN BATH LINEN Bedsheets Towels Comforters Bath mats Dohars Bath robes Pillow covers Brand Positioning Premium Mass Thoughtfulness RUGS FLOORING SOLUTIONS Presence Door mats Click & Lock 10,600+ outlets tiles 2,400+ outlets Yoga m
Slide 31: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth 3 Ecommerce Build & Grow Robust Supply Strong Technology Right Geographies in focus Channel Growth Branded Business Chain Back-end Organization US UK India Brand.com Own Brand Inventory Planning Tech-Stack: Middleware COE Org Model Marketplaces Lice
Slide 32: 35 Patented Technologies
Innovation – Our strong suite 35 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain Patented spinning technology makes towel platform for state-of-the-art transparency for softer loftier and sheet temperature All Fibers & All Pr