Welspun Corp Limited · NSE:WELCORP
Welspun — Q4 FY2020 Earnings Presentation
30 slides from Welspun's earnings presentation, Jun 17, 2020
Slide 1: Business Update and Investors Presentation cover letter
WCL/SEC/2020 June 17, 2020 To, BSE Ltd. National Stock Exchange of India Ltd. (Scrip Code-532144) (Symbol: WELCORP, Series EQ) Department of Listing, Exchange Plaza, Bandra-Kurla Complex, P. J. Towers, Dalal Street, Bandra (E), Mumbai – 400 051. Mumbai – 400 001. Dear Sirs/ Madam, Sub: Business Upda
Slide 2: Business Update: Performance Par Excellence
BUSINESS UPDATE Performance Par Excellence - WCL reports Highest Ever Annual Production, Sales and Profitability June 17, 2020, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the quarter and full year ended March 31, 2020. Key
Slide 3: Business Update: EPS, debt, forex and Saudi business
BUSINESS UPDATE 5. Basic EPS: Q4 - Rs. 5.38 on the reduced equity base post buyback vs. Rs. (4.71) FY - Rs. 25.56 vs. Rs. 2.57 6. Debt position: Net Debt stands at Rs. 32 cr, lower by Rs. 253 cr vs. March 2019 This is after considering the impact of interim dividend of Rs. 10/- per share pai
Slide 4: Business Update: Project status and outlook
BUSINESS UPDATE 9. Project Status: The Bhopal coating plant is completed and is currently under trials. Looking at the business prospects and optimal utilisation of assets, management has decided to relocate one more spiral mill from Anjar to Bhopal. Considering enabling infrastructure is ready, thi
Slide 5: Business Update: Outlook and chairman comments
BUSINESS UPDATE As far as export market is concerned, we have already started receiving enquiries for potential upcoming projects in Middle East and South East Asia. We are in close discussions with customers and are confident to bag a few strategic orders in due course of time. JV in Saudi Arabia T
Slide 6: Reconciliation of Operating EBITDA
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q4 FY20 Q4 FY19 FY20 FY19 Reported EBITDA 318 41 1,276 708 Less: Items in Other income Treasury income (12) (10) (61) (83) Profit on sale of non-current investments
Slide 7: Consolidated Performance Snapshot
BUSINESS UPDATE Consolidated Performance Snapshot Figures in Rs. Cr unless specified Particulars Q4FY20 Q4FY19 FY20 FY19 Ex-Saudi Arabia/ CWC operations - Pipe Production (KMT) 289 201 1,144 989 - Pipe Sales (KMT) 286 292 1,001 1,042 Total operations - Pipe Production (KMT) 417 306 1,629 1,252 - Pip
Slide 8: Conference call details and About Welspun Corp
BUSINESS UPDATE Q4 & FY20 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Wednesday, 17th June 2020 Time: 5:15 PM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 Local Acc
Slide 9: Welspun Corp Ltd: World's Leading Line Pipe Manufacturer
Welspun Corp Ltd Investor Presentation - June 2020 World’s Leading Line Pipe Manufacturer
Slide 10: Safe Harbour
SAFE HARBOUR 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 an
Slide 11: COVID-19 – Impact and Response
COVID-19 – IMPACT AGENDA AND RESPONSE
Slide 12: Standing in solidarity during COVID-19
While the world is striving to combat COVID19, we as a responsible organization are standing in solidarity and ensuring safety and wellbeing of our extended family of 100,000+ Welspun is leaving no stone unturned in lending support and assistance to the government, society, communities, customers an
Slide 13: Fighting COVID19 Together
FIGHTING COVID19 TOGETHER #WellAndHome : Safety and Comfort for extended 100,000+ Welspun family ▪ Robust IT infrastructure to enable Work from Home ▪ Isolation wards, Tie-ups with hospitals, Emergency helpline AI based robotic consultancy, virtually connecting with specialist doctor #WellAndLearn:
Slide 14: COVID-19 Impact: Macro Economic Factors
COVID-19 – IMPACT IMMEDIATE AFTERMATH CURRENT SITUATION Remained depressed Recovering with improved Oil Prices because of lower demand demand & supply cuts MACRO ECONOMIC FACTORS Practically all bids and new Seeing improved traction in Global Bids orders postponed new bids and orders Economy faced L
Slide 15: COVID-19 – Company Action Plan
COVID-19 – COMPANY ACTION PLAN • Enabling Work from home through digital tools ensuring collaboration • Task force created & responsibilities assigned for each important function People • Trainings being imparted to enhance the skill set of employees • Availability of medical staff round the clock a
Slide 16: Q4 & FY20 Key Highlights
Q4 & FY20 AGENDA KEY HIGHLIGHTS
Slide 17: Q4 FY20 At a Glance
Q4 FY20 - AT A GLANCE 417 K MT 418 K MT 3,359 mn Production; Sales; Op EBITDA; Up 36% YoY Up 13% YoY Up 26% YoY 11,700/ 1,404 mn 5.4 US $165 Op EBITDA / Ton; Profit After Tax; EPS; Up 27% YoY vs (1,250) mn in Q4 FY19 vs (4.7) in Q4 FY19 ♀ Plate and Coil Mill Divestment Update: ▪ BTA date extended to
Slide 18: FY20 At a Glance
FY 20 - AT A GLANCE 1.63 mn MT 1.50 mn MT 12,839 mn 12,820 / US $180 Production; Sales; Op EBITDA; Op EBITDA / Ton; Up 30% YoY Up 17% YoY Up 43% YoY Up 49% YoY 6,735 mn 25.6 32.1% 23.7% Profit After Tax; EPS; Return on Capital Employed* Return on Equity* Up 887% YoY Up 894% YoY vs 22.6% in FY19 vs 1
Slide 19: Income Statement – Annual Trend
INCOME STATEMENT – ANNUAL TREND Rs mn FY17 FY18 FY19 FY20 Pipe Sales Volume (KMT) 935 1,084 1,279 1,502 Revenue 60,355 75,873 89,535 99,568 Operating EBITDA 5,935 7,054 8,968 12,839 MTM Loss on Bonds (2,578) - EBITDA 7,370 8,147 7,077 12,759 Depreciation 3,861 3,793 2,597 2,333 Finance cost 2,357 1,
Slide 20: Balance Sheet – Annual Trend
BALANCE SHEET – ANNUAL TREND Rs mn 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 Net Worth 28,094 28,540 27,976 32,152 Short Term Loans 2,203 126 1,750 2,693 Long Term Loans 16,227 13,738 11,297 7,260 Gross Debt 18,430 13,864 13,047 9,953 Cash & Cash Equiv. 7,365 9,649 10,191 9,631 Net Debt 11,065 4,216 2
Slide 21: Key Financial Ratios – Annual Trend
KEY FINANCIAL RATIOS – ANNUAL TREND FY16 FY17 FY18 FY19 FY20 Net debt/Equity 0.48 0.39 0.15 0.10 0.01 Solvency ratios Net debt/EBITDA 1.52 1.50 0.52 0.40 0.03 EBIT/Interest 2.09 1.49 2.35 2.53 7.24 Current Ratio 1.48 1.42 1.49 1.56 1.55 Operational ratios Fixed Asset Coverage 1.97 1.84 2.23 1.43 2.2
Slide 22: Key Metrics – Yearly
KEY METRICS - YEARLY Earnings Per Share 25.6 11,065 Net Debt (Rs.) (Rs. mn) 12.3 4,216 6.0 2,856 1.0 322 FY17 FY18 FY19* FY20 FY17 FY18 FY19 FY20 Return on Equity Return on Capital Employed 23.7% (%) (%) 32.1% 22.6% 11.7% 8.8% 5.6% 6.4% 0.9% FY17 FY18 FY19* FY20 * FY17 FY18 FY19 FY20 Note: Prior per
Slide 23: Volume – Yearly Trend
VOLUME – YEARLY TREND Production and Sales in KMT – Pipes (including Saudi JV) Pipe Production Pipe Sales Valued at USD 2.15 Bn 1,629 1,502 1,279 1,252 1,152 1,130 1,119 1,100 1,084 1,019 1,018 1,022 1,020 1,010 954 935 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Achieved all time high Production and Sa
Slide 24: Net Working Capital Under Control
NET WORKING CAPITAL UNDER CONTROL Cash conversion cycle at comfortable levels FY18 FY19 FY20 91 83 73 63 48 42 35 29 18 -4 -38 -57 -53 -64 -103 Inventory days Debtor days Payable days Trade Advance Cash Conversion Cycle *Includes Debtors + Inventory – Creditors – Trade Advance; Figures from FY19 are
Slide 25: Orderbook – Yearly Trend
ORDERBOOK – YEARLY TREND (Figures in KMT) Order Book Valued at USD 0.75 Billion 1,657 1,712 913 706 601 FY16 FY17 FY18 FY19 FY20 Closing Order Book Decent order book in spite of challenging macro environment Note: Order Book includes Saudi Arabia operations 17
Slide 26: Business Moat
BUSINESS MOAT Global Leadership Accreditations Expertise Among Top 3 Line Pipe Approvals: 50+ O&G majors; Executed critical & complex Manufacturers globally Qualifies for global bidding projects worldwide Customer Centricity Supplier Relationship Innovation Delivered 14+ mn MT Pipes with Long term a
Slide 27: Awards & Accolades – Testimony to Excellence
AWARDS & ACCOLADES – TESTIMONY TO EXCELLENCE Bechtel Supplier OHS category in Golden Peacock National By The Martin Luther King Excellence Award engineering sector : Anjar Quality Award : Anjar Jr Commission of AR (2018-19) (2018) (2017) (2017) Salute to Supply chain Best energy Golden Peacock Great
Slide 28: Capital Market Update
CAPITAL MARKET UPDATE 31.8% Promoter 49.0% FIIs Shareholding Pattern DIIs Quarter ending March 2020 Public 9.8% 9.4% As on June 16th, 2020 INR USD Price Per Share 80.85 1.1 No of Shares outstanding (mn) 260.9 Market Statistics Market Capitalization (mn) 21,093 277 Daily Avg Trading Volumes – Q4FY20
Slide 29: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Non-Executive Chairman & Promoter Director • Amongst India’s most dynamic businessmen Vipul Mathur, Managing Director & CEO, Member of Board • Past President ASSOCHAM (2019) • Well-known figure in the global pipe industr
Slide 30: Thank You
Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com THANK AGENDA YOU For further information, please contact: Mr. Harish Venkateswaran harish_venkateswaran@welspun.com