Welspun Corp Limited · NSE:WELCORP
Welspun — Q1 FY21 Earnings Presentation
27 slides from Welspun's earnings presentation, Jul 28, 2020
Slide 1: Cover letter to stock exchanges
WCL/SEC/2020 July 28, 2020 To, BSE Ltd. National Stock Exchange of India Ltd. (Scrip Code-532144) (Symbol: WELCORP, Series EQ) Department of Listing, Exchange Plaza, P. J. Towers, Dalal Street, Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. Dear Sirs/ Madam, Sub.: (1) Un-audit
Slide 2: Business Update / Investor Presentation
Business Update / Investor Presentation:- Also attached is the Investors’ Presentation and Business Update which is being released to the media. The Board meeting concluded at 15:40 p.m. Kindly take note of the above. Thanking You.
Slide 3: Resilient Performance in Challenging Times
BUSINESS UPDATE Resilient Performance in Challenging Times - Healthy Order Book: 694,000 MT, valued at Rs. 5,500 cr | Net-Cash positive July 28, 2020, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended June 30th,
Slide 4: Business Update: Debt, Forex and Saudi Business
BUSINESS UPDATE The Company has further reduced the Gross Debt by paying its long term NCDs of Rs. 250 cr and repaying commercial paper of Rs. 250 cr. This demonstrates the Company’s strong liquidity position and comfortable cash flows. Gross and Net Debt position is as per details below: Figure
Slide 5: Business Update: India Facilities and Outlook
BUSINESS UPDATE companies. However, India seems to be capitalizing upon this opportunity and offers a potentially bright outlook. India Facilities In India, we have a robust order book of 356 KMT spread between O&G, exports and water projects. About 14,700 km of additional gas pipelines are at vario
Slide 6: Business Update: PCMD Divestment and COVID-19
BUSINESS UPDATE 10. Update on Plate & Coil Mill Division (PCMD) Divestment: Both parties to the Business Transfer Agreement (BTA) for sale of PCMD, have reiterated their commitment to consummate the transaction stipulated in the BTA on or before March 31, 2021. Further, the Company has already recei
Slide 7: Reconciliation of Operating EBITDA
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q1 FY21 Q1 FY20 FY20 FY19 Reported EBITDA 197 242 1,276 708 Less: Items in Other income Treasury income (13) (19) (61) (83) Profit on sale of non-current investment
Slide 8: Consolidated Performance Snapshot
BUSINESS UPDATE Consolidated Performance Snapshot Figures in Rs. Cr unless specified Particulars Q1 FY21 Q1 FY20 FY20 FY19 Ex-Saudi Arabia/ CWC operations - Pipe Production (KMT) 105 191 1,144 989 - Pipe Sales (KMT) 181 181 1,001 1,042 Total operations - Pipe Production (KMT) 130 296 1,629 1,252 - P
Slide 9: Investor Call Details and About Welspun Corp
BUSINESS UPDATE Q1 FY21 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Tuesday, 28th July 2020 Time: 5:00 PM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 Local Access:
Slide 10: Welspun Corp Ltd: World's Leading Line Pipe Manufacturer
Welspun Corp Ltd Investor Presentation - July 2020 World’s Leading Line Pipe Manufacturer
Slide 11: 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 12: COVID-19 solidarity and support
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: Macro Economic Factors: COVID-19 Impact
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 14: COVID-19 Company Action Plan
COVID-19 – COMPANY ACTION PLAN • WFH for HO location. Other plants completely operational. • Task force created & responsibilities assigned for each important function. People • Extensive training imparted to enhance skill set ( > 100 webinars). • Availability of medical staff round the clock at our
Slide 15: Q1 FY21 At a Glance
Q1 FY21 - AT A GLANCE 694 KMT 198 cr 197 cr Order Book; Net Cash – From Net Debt of INR 32 Crs (March FY20) EBITDA Valued at US $ 734 mn 10,100 / 279 Crs 58 cr US $135 Free Cash Flow Profit After Tax Op EBITDA / Ton 130 KMT 222 KMT 1.8 mn MT Active Bids; Production Sales Future Outlook Note: Pipe Sa
Slide 16: Orderbook Quarterly Trend
ORDERBOOK – QUARTERLY TREND (Figures in KMT) Order Book Valued at USD 0.73 Billion 1,721 1,656 1,712 1,564 1,357 1,305 706 694 423 425 428 418 339 319 337 222 369 376 304 274 210 171 (181) 130 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Closing Order Book Order Booked Orders Executed Dec
Slide 17: Orderbook Yearly Trend
ORDERBOOK – YEARLY TREND (Figures in KMT) 1,657 1,712 913 706 694 601 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Closing Order Book Decent order book in spite of challenging macro environment Note: Order Book includes Saudi Arabia operations
Slide 18: P&L Quarterly
P&L - QUARTERLY Sales Volume Operating EBITDA 428 418 3,712 (KMT) (Rs. Mn) 3,359 369 3,169 339 337 304 319 2,658 2,585 2,494 222 2,075 1,827 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Profit After Tax Operating EBITDA / Ton (Rs. Mn) (Rs.) 14,300 1
Slide 19: 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 20: Volume Yearly Trend
VOLUME – YEARLY TREND Production and Sales in KMT – Pipes (including Saudi JV) Pipe Production Pipe Sales 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 Sales volume in FY2020
Slide 21: Results
RESULTS Particulars (Rs Mn) Q1 FY21 Q4 FY20 QoQ Q1 FY20 YoY FY20 FY19 YoY Pipe Sales Volume (KMT) 222 418 -46.9% 319 -30.4% 1,502 1,279 17.4% Revenue 20,693 27,589 -25.0% 20,471 1.1% 99,568 89,535 11.2% Operating EBITDA 1,827 3,359 -45.6% 2,585 -29.3% 12,839 8,966 43.2% EBITDA 1,968 3,182 -38.2% 2,4
Slide 22: Way Forward
WAY FORWARD Strengthening Business Moat through: • Automation & Digitisation • Talent development • Quality control • Introduce niche product basket Converting adversity into opportunity: • Leaner cost structure • Leveraging strength of Balance Sheet, Human Capital, Customer Relationships & Technica
Slide 23: 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 24: Awards & Accolades
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 25: Established Relationship with Global Giants
ESTABLISHED RELATIONSHIP WITH GLOBAL GIANTS Oil & gas Transportation Others Approvals & accreditations from marquee customers across the globe Acts as an Entry Barrier
Slide 26: 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 27: Thank You
Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com THANK AGENDA YOU For further information, please contact: Mr. Gaurav Ajjan gaurav_ajjan@welspun.com