Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q2 FY23 Earnings Presentation
32 slides from Welspun Living's earnings presentation, Nov 8, 2022
Slide 1: Earnings Presentation
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q2 FY23 8th November 2022 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 Half Yearly Summary 10 Operational Highlights 14 Quarterly Segment Results 17 Enhancing Capacity; Catering to Growing Demand 18 Profit & Loss 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 “I am very pleased to share that our Domestic Retail business has recorded its highest ever Q2 revenue during the quarter. The sustained and robust growth in our Retail business as well as the outperformance of our Emerging's Businesses globally demonstrate the efficacy of our
Slide 5: Awards & Recognition
AWARDS & RECOGNITION Feathers in our cap W a t c h v id e o Industry 4.0 Sustainability 2022 2022 2022 Read More WIL has been reckoned the Artificial Intelligence for best managed companies Towel counting & Defect Community Sustainable Recognized by Walmart as trusted partner for 2022 by Deloitte Pr
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 ₹ 19,980 mn vs. ₹ 25,332 mn Q2 ₹ 21,366 mn up 8% QoQ (Sept 2021) H1 ₹ 41,156 mn. EBITDA Net Debt/Equity is 0.51 Vs. 0.67 (sept 2021) Q2 ₹ 1,517 mn.@ 7.1% Margin H1 ₹ 3,252 mn @ 7.9% Margi
Slide 8: Quarterly Highlights - QoQ
Quarterly Highlights - QoQ (₹ Million) Revenue EBITDA PBT PAT Cash Profit 21,366 1,517 137 87 1,184 Growth (QoQ) 8.0% (12.6%) (62.2%) (61.3%) (10.1%) Margin (%) 7.1% 0.6% 0.4% Margin Expansion/(Contraction) (Q-o-Q) (167 bps) (119 bps) (73 bps) EPS/CEPS 0.08 1.20 welspunindia.com 8
Slide 9: Quarterly Highlights - YoY
Quarterly Highlights - YoY (₹ Million) Revenue EBITDA PBT PAT Cash Profit 21,366 1,517 137 87 1,184 Growth (YoY) (14.6%) (64.2%) (95.2%) (95.6%) (63.4%) Margin (%) 7.1% 0.6% 0.4% Margin Expansion/(Contraction) (y-o-y) (984 bps) (1068 bps) (756 bps) EPS/CEPS 0.08 1.20 welspunindia.com 9
Slide 10: Half Yearly Highlights
Half Yearly Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 41,156 3,252 501 311 2,501 Growth (YoY)* (11.0%) (58.2%) (89.8%) (90.9%) (55.8%) Margin (%) 7.9% 1.2% 0.8% Margin Expansion/Contraction (Y-o-Y) (894 Bps) (943 Bps) (664 Bps) EPS/CEPS 0.31 2.53 *H1FY22 numbers adjusted for ROSCTL o
Slide 11: Quarterly Highlights
Quarterly Highlights (₹ Million) Particulars 30-Sept-22 30-Sept-21 30-June-22 Net Worth 39,348 37,917 39,666 Short Term Loans 17,557 18,704 17,264 Long Term Loans 12,375 12,348 12,163 Net Debt / Equity (x) 1.00 of which Net Flooring Debt 8,986 7,634 8,358 0.80 0.60 Gross Debt 29,931 31,052 29,426 0.
Slide 12: Revenue Highlights
Revenue Highlights (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q2FY23 3,185 10,821 1,249 982 971 42 1,313 Sales Contribution (%) 17% 58% 7% 5% 5% 0% 7% Q1FY23 2,398 9,689 1,131 811 2,290 28 1,086 Sales Contribution (%) 14% 56% 6%
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 Q2FY23 13,147 1,987 1,024 975 1,132 298 Sales Contribution (%) 71% 11% 6% 5% 6% 2% Q1 FY23 10,967 3,156 838 898 1,353 219 Sales Contrib
Slide 14: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q2FY23 Q1FY23 Q2FY22 Capacity (%) (%) (%) Bath Linen MT 90,000 13,538 60% 11,632 54% 19,769 95% Bed Linen Mn mtrs 108 13.9 51% 14.0 52% 23.9 100% Home Rugs & Carpets Mn
Slide 15: Operational highlights (Half yearly)
Operational highlights (Half yearly) Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM H1FY23 H1FY22 Capacity (%) (%) Bath Linen MT 90,000 25,170 57% 38,948 92% Bed Linen Mn mtrs 108 27.9 52% 45 100% Home Textile Rugs & Carpets Mn sq mtrs 12.0 3.5 59% 5.4 100% Advan
Slide 16: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) YoY QoQ YoY* Particulars Q2 FY23 Q2 FY22 Q1FY23 H1 FY23 H1 FY22 Change Change Change Total Income 21,366 25014 (14.6%) 19790 8.0% 41,156 47,282 (11.0%) EBITDA 1,517 4237 (64.2%) 1736 (12.6%) 3,252 8,836 (58.2%) EBITDA Margin (%) 7.1% 16.9% (984 bps) 8.8% (167 bps)
Slide 17: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ YoY* Segmentation (%) Particulars Q2 FY23 Q2 FY22 Q1 FY23 H1 FY23 H1 FY22 Change Change Change Q2 FY23 Home Textile Revenue 20,114 23,749 (15.3%) 18,521 8.6% 38,635 45,032 (12.2%) EBITDA 1,276 4,135 (69.1%) 1,716 (25.6%) 2,992 8,940 (62.1%) EBITD
Slide 18: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capital light expansion in the areas of processing,
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 H1 FY 23 Total Income 61,318 66,084 68,362 74,080 93,773 41,156 Growth YoY* % (8.8%) 7.8% 3.4% 8.4% 26.6% (11.0%) EBITDA 12,046 11,467 13,098 14,198 14,246 3,252 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% 7.9% Depreciation 5,042
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 H1 FY 23 Net Worth 26,057 27,793 29,721 36,447 39,717 39,348 Short Term Loans 12,580 14,080 17,717 17,452 19,742 17,557 Long Term Loans 20,228 19,024 16,704 10,962 12,142 12,375 of which Net Flooring Debt
Slide 22: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 H1 FY23 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 0.51 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 2.21 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 4.36 Current ratio 1.42 1.25 1.19 1.33 1.37 1.40 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 2.22 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 ESG 20
Slide 25: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q2FY 23 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 64% 50% 100% Fresh Water Positive in Production 13.51 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 6.39 MT 0 MT 0 MT ch
Slide 26: Share Holding Summary
Share Holding Summary Shareholding Pattern (Sept 2022) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 6.7% L&T Mutual Fund Mutual Funds/AIF 1.9% Aditya Birla Sunlife MF Insurance Co’s 3.7% Tata Mutual Fund Public 17.3% 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. Abhinandan Singh Group Head – Investor Relations abhinandan_singh@welspun.com welspunindia.com TheWelspunGroup welspungroup
Slide 29: Annexure
Annexure
Slide 30: Owned Brands - Domestic
Owned Brands - Domestic Festive Collection: Launch of Healthy Life Campaign: Rangana Campaign Anti Viral Brand Positioning Premium Mass Thoughtfulness Presence Click here to view Click here to view 2,402+ outlets 10,000+ outlets 380 towns 500+ towns 240 Shop in Shop locations 125 D
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: Innovation – Our strong suite
Innovation – Our strong suite 35 Patented Technologies Key Innovations Filed globally WIL: 31 HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain Advance Textiles: 2 Patented spinning technology makes towel platform for state-of-the-art transparency for softer loftier and sheet tem