Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Investor Presentation (February 2018)
36 slides from Welspun Enterprises's investor presentation, February 2018
Slide 1: Welspun Enterprises Ltd Investor Presentation
WELSPUN ENTERPRISES LTD INVESTOR PRESENTATION February 2018 1
Slide 2: 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 3: Global Leader in Home Textiles, Large Diameter Pipes, Infrastructure
Global Leader in Global Leader in Infrastructure Home Textiles Large Diameter Pipes Investments in Oil & Gas Group Revenue Market Cap Employees US$ 2.3 Billion US$ 2.2 Billion 25,000+ 3
Slide 4: Agenda
1. Company Overview 2. Infrastructure i. HAM ii. BOT AGENDA 4. Corporate Social Value 3. Oil & Gas 5. Financials 6. Way Forward 7. Key Highlights 4
Slide 5: Welspun Enterprises (WEL): Overview
WELSPUN ENTERPRISES (WEL): OVERVIEW High growth potential with Robust HAM Portfolio Focus on the of Rs. 51+ Billion Infrastructure Sector 5 projects; 180+ kms Six completed BOT (Toll) Road On Track for projects with 500+ km 14 month Early Completion of Delhi-Meerut Expressway Pkg-1 Among the very fe
Slide 6: Equity Snapshot
EQUITY SNAPSHOT Shareholding Pattern (as on 31st Dec 2017) Market Cap (Rs. Million) 25,820 46.02% 44.56% 21,055 Promoter Management 16,305 FIIs 12,313 Banks and Insurance Cos 10,518 Mutual funds Public 31 Dec 16 31 Mar 17 30 June 17 30 Sep 17 31 Dec 17 0.45% 0.81% 4.82% 3.34% Market Statistics Creat
Slide 7: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Chairman Sandeep Garg, Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen • Harvard Graduate with 30+ years experience in diverse roles in infrastructure • Ranked amongst India’s Most Pow
Slide 8: Infrastructure
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INFRASTRUCTURE
Slide 9: Hybrid Annuity Model (HAM) Overview
HYBRID ANNUITY MODEL (HAM) OVERVIEW Award criterion: Lowest NPV value based on Construction Returns to Concessionaire on Capital Arranged cost and O&M cost, quoted by the bidders - Annuity payments (biannually) till end of concession period as per predetermined schedule - Interest payments (on reduc
Slide 10: WEL: Asset Light Approach to Infrastructure
WEL: ASSET LIGHT APPROACH TO INFRASTRUCTURE 1 2 3 4 Bid for differentiated Achieve early Award construction to Rigorous project HAM projects financial closure best suited sub- monitoring & contractor supervision • Lower competition • Strong Balance Sheet • Ensure reasonable EPC • Achieve early compl
Slide 11: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building HAM portfolio through bid / buy strategy for profitable growth Added 4 HAM projects during YTD FY18 ; Dec-17 order book at ~Rs. 41 Billion As on Dec-17 As on Mar-17 EPC of HAM: 5.2 bn Other EPC: 0.2 bn EPC of HAM Projects EPC of HAM: 40.7 b
Slide 12: Execution Accelerating
EXECUTION ACCELERATING Current revenue contributed mainly by Delhi-Meerut Expressway Package-1 HAM project Recently added HAM projects to contribute from Q4FY18 Infrastructure Revenues and EBIT (Rs. Million) EPC of HAM Others EBIT 6,135 907 623 (185) 9MFY17 9MFY18 12
Slide 13: Infrastructure Projects
INFRASTRUCTURE PROJECTS HAM PROJECTS BOT PROJECTS Delhi-Meerut Expressway (Pkg 1) Authority: NHAI Dewas Water Kim – Mandvi Status: Under Construction Authority: MPSIDC Authority: GSRDC 86% completed 1 Status: Operational* Status: Operational Gagalheri-Saharanpur-Yamunanagar Authority: NHAI Status: U
Slide 14: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: Six-laning of Delhi – Meerut Expressway & four- PROJECT DETAILS laning either side from km 0.000 to existing km 8.360 of NH- Project Length (Kms) 8.716 Km 24 in Delhi Award Date Jan 2016 Status: Under Construction; 86% completed within 13 Financial Clo
Slide 15: NHAI Appreciation for Speedy Progress
1 NHAI APPRECIATION FOR SPEEDY PROGRESS 15
Slide 16: NHAI Appreciation for Social Responsibility
1 NHAI APPRECIATION FOR SOCIAL RESPONSIBILITY WEL’s Green Initiatives at DME appreciated by NHAI : • Vertical Garden developed along the entire bridge • Electrification through Solar Power 16
Slide 17: Completion Expected Well Ahead of Schedule
1 COMPLETION EXPECTED WELL AHEAD OF SCHEDULE 17
Slide 18: HAM: Gagalheri-Saharanpur-Yamunanagar
2 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS (UP/Haryana Border) section of NH-73 Project Length (Kms) 51.5 Km Status: NHAI declared the Appointed Date for the Project Acquisition Date Jan 2018 as 3rd February 2018; execution in full swi
Slide 19: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
3 HAM: CHUTMALPUR-GANESHPUR & ROORKEE-CHUTMALPUR-GAGALHERI Scope: 4-Laning of Chutmalpur-Ganeshpur section of NH- PROJECT DETAILS 72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 in Project Length (Kms) 53.3 Km UP & Uttarakhand Acquisition Date Jan 2018 Status: Financial closure achieved; appoint
Slide 20: HAM: Aunta-Simaria
4 HAM: AUNTA-SIMARIA (Ganga Bridge with Approach Roads) Scope: Six- Laning from Aunta-Simaria (Ganga Bridge with PROJECT DETAILS Approach Roads) Section from km 197.900 to km 206.050 of Project Length (Kms) 8.15 Km NH-31 in the State of Bihar Award Date Aug 2017 Status: Financial tie-up in place; ap
Slide 21: HAM: Chikhali-Tarsod
5 HAM: CHIKHALI-TARSOD Scope: 4-laning of Chikhali – Tarsod (Package-IIA) section PROJECT DETAILS of NH-6 from km. 360.000 to km.422.700 Project Length (Kms) 62.7 Km Status: Acquired 49% stake from Vishvaraj Group in Acquisition Date Jan 2018 January 2018. Financial closure is in progress Financial
Slide 22: Expertise of Managing BOT Projects
EXPERTISE OF MANAGING BOT PROJECTS Experience of successfully operating more than 500+ kms of roads WEL operated 5 infrastructure projects on BOT basis in Q3FY18 (Rs. Mn) Value on Debt on Concession Sector Project Name Location books books COD End (March-17) (March-17) Himmatnagar Bypass Gujarat 22
Slide 23: Update on BOT Projects – Outstanding Matters
UPDATE ON BOT PROJECTS – OUTSTANDING MATTERS Dewas Water – Modified Project Project modified under the Madhya Pradesh Swiss Challenge Guidelines Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas Source of water ~ 7 km from Dewas as against 1
Slide 24: Investments in Oil & Gas
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INVESTMENTS IN OIL & GAS
Slide 25: Oil & Gas – Active Blocks Summary
OIL & GAS – ACTIVE BLOCKS SUMMARY Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle AWEL WEL Effective Block Name Location Status Stake Stake Right to Farm-out 55% ownership to ONGC for Phase II; Mumbai MB-OSN-2005/2 100% 35% ONGC’s board has a
Slide 26: Corporate Social Value
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY CORPORATE SOCIAL VALUE
Slide 27: Welspun Group Initiatives
WELSPUN GROUP INITIATIVES Empowerment • Education at Govt. Schools • Adult Literacy Education for women • Vocation Centers: 8 centers have resulted in INR 13mn earnings for women Education • Walmart’s SWASTI foundation for Women Empowerment and Training: Successfully trained 2,335 women in foundatio
Slide 28: Welspun Enterprises Initiatives
WELSPUN ENTERPRISES INITIATIVES Working with communities through diverse social interventions to secure stable & sustainable futures Community Healthcare Potable Water Supply Promoting Education Initiatives Initiatives Initiatives Weekly health check-up camps Distribution of Potable Water Prov
Slide 29: Financials
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 30: Income Statement Snapshot - Standalone
INCOME STATEMENT SNAPSHOT - STANDALONE Rs. Million Income Statement YoY YoY Snapshot Q3 FY18 Q3 FY17 9M FY18 9M FY17 Growth Growth Total Income 2,981 684 336% 6,888 1,841 274% EBITDA 462 102 355% 1,169 377 210% EBITDA margin 15.5% 14.9% 17.0% 20.5% PBT Before 392 48 716% 954 202 373% Exceptional PBT
Slide 31: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Balance Sheet Snapshot (Rs. Million) 31st Dec 2017 31st Mar 2017 Net worth 14,252 13,524 Gross Debt 709 801 Cash & Cash Equivalents 9,161 10,663 Net Debt /(Cash) (8,453) (9,862) Other Long Term Liabilities 292 287 Total Net Fixed Assets (incl. CWIP) 682 818 Net Cu
Slide 32: Way Forward
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY WAY FORWARD
Slide 33: Way Forward
WAY FORWARD Continue approach of cautious bid/buy strategy to strengthen HAM portfolio Targeting projects where differentiation is possible Looking at opportunities in associated areas in Infra Explore and develop existing oil & gas blocks 33
Slide 34: Key Highlights
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY KEY HIGHLIGHTS
Slide 35: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Financials and Robust Credit Rating to tap Infra Opportunities Strong Order book with Demonstrated Operational Excellence Asset light business model in Infra with regular project value-en
Slide 36: Thank You
THANK YOU For further details, please contact: Harish Venkateswaran AVP - Group Finance and Strategy Email: harish_venkateswaran@welspun.com 36
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