Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q2 FY24 Earnings Presentation
42 slides from Welspun Enterprises's earnings presentation, Nov 9, 2023
Slide 1: Stock exchange covering letter for investor presentation
WEL/SEC/2023 November 09, 2023 To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Bldg, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 532553 NSE Symbol: WELENT Dear Madam/ Sir, Subject:
Slide 2: Q2FY24 Investor Presentation
WELSPUN ENTERPRISES LIMITED Q2FY24 Investor Presentation 9th November 2023 BSE: 532553 | NSE: WELENT |ISIN: INE625G01013
Slide 3: 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 4: Welspun Enterprises At a glance
Welspun Enterprises At a glance PAN INDIA ASSET LIGHT STRONG DIVERSIFIED MODEL PRESENCE EXECUTION PORTFOLIO Operational excellence Across UP, Bihar, Across Road, Water and through complex engineering Demonstrated execution with Tamil Nadu, Haryana, Wastewater Verticals solutions, core project Record
Slide 5: New Subsidiary Michigan Engineers Pvt Ltd (MEPL)
NEW SUBSIDIARY Michigan Engineers Pvt Ltd. (MEPL)
Slide 6: About Michigan Engineers Pvt. Ltd. (MEPL)
About Michigan Engineers Pvt. Ltd. (MEPL) Michigan Engineers, now part It has strong working Strong Vertical Integration of Welspun World was Pioneer and leader in the relationships with Municipal with an in-house fabrication established in the year 1973. niche segment of Trenchless Corporations whi
Slide 7: Michigan Engineers (MEPL) – Snapshot
Michigan Engineers (MEPL) – Snapshot Acquisition by Welspun Enterprises in August 2023 – Mr.Saurin Patel has led MEPL into New Segments to cater Expertise and reach of Welspun Group to transform to Emerging Needs in India Growth Trajectory Unexecuted Order book of Rs. 1,610cr. Excluding of L1 Financ
Slide 8: Proven track record (MEPL)
Proven track record (MEPL) ● Tunnelling teams can ● Successful track record of ● Strong vertical integration accommodate projects executing numerous projects with in-house engineering, requiring pipes ranging across India’s largest fabrication and assembling from 450 mm diameter to Metropolitan citi
Slide 9: Advantage WEL
ADVANTAGE WEL
Slide 10: Creating Value through a Clear Strategy
Creating Value through a Clear Strategy Bid for selective projects Deploy right mix of Project Management contractors & support them Higher engineering complexity Efficient monitoring through for seamless execution Selective operating partners - Better EPC various digital initiatives - optimiz
Slide 11: Through an experienced Management…
Through an experienced Management… Sandeep Garg Saurin Patel Kapil Maheshwari Managing Director MD – MEPL ED & CEO (WNEL) Harvard graduate with ~40 years Masters in Structural Engineering Over 20 years of experience in the Solar of experience in diverse roles in with ~40 years of experience in
Slide 12: …Through an experienced Management
…Through an experienced Management Lalit Jain Yogen Lal Premjit Singh Rajesh Jain Chief Financial CEO CEO Chief Human Officer (Water) (Transportation) Resource Officer CA, ICWA: Civil engineer with 24+ years of MBA (HR) and B.E. Accounting & Cost 33+ years experience experience in (Electroni
Slide 13: Proven track record
Proven track record ₹ 39,000+ Mn Delhi Meerut Expressway ~570 km Experience of operating ~570 ~65 km Welspun Enterprises’ completed portfolio km of Toll projects includes the Delhi–Meerut Expressway / Robust road portfolio National Expressway 3 which was featured as an Engineering Marvel of India Ca
Slide 14: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Letter of appreciation by Prime Minister of ASSOCHAM Unique Project of the Year Appreciation by India Shri Narendra Modi Award presented by Shri Nitin Gadkari Shri Nitin Gadkari, Union Minister Letter of appreciation by Honorable Parliamentarian “Gold award” in Exce
Slide 15: Strong platform set for future growth
Strong platform set for future growth Robust portfolio of Road and Current order ₹ 91 Bn* Water projects book at (excluding GST) Segment Break-up Order Book Break-up 35% 84% ROAD EXTERNAL 65% WATER CAPTIVE 16% Current Order Book provides strong revenue growth visibility * As on September 30th, 2023
Slide 16: Way forward
Trends towards Diversification Trends in Order Book Break-up WEL Portfolio (in ₹ Mn) 91,000 90,490 Other EPC of HAM , 16% EPC, 4% Water EPC, 65% 39,000 FY17 Q2FY24 EPC of BOT, 1% EPC of Road EPC, HAM , 18% 96% Development EPC* Development (Divested) Way Continue approach of prudent bid strategy to s
Slide 17: Financials
Financials
Slide 18: Highway Portfolio Monetization - Actis Deal
Highway Portfolio Monetization - Actis Deal Contract Authority In ₹ mn 23,090 Project Name Status Type /Client 17,150 Delhi-Meerut Expressway (Pkg 1) HAM NHAI COD achieved 1.5x Chutmalpur-Ganeshpur HAM NHAI COD achieved Gagalheri-Saharanpur-Yamunanagar HAM NHAI COD achieved Chikhali-Tarsod HAM NHAI
Slide 19: Income Statement Snapshot - Standalone
Income Statement Snapshot - Standalone Particulars (₹ Mn) Q2FY24 Q2FY23 YoY % H1FY24 H1FY23 YoY% Revenue from Operations 5,424 5,096 6% 12,231 11,840 3% Other Income 287 108 165% 574 272 111% Total Income 5,710 5,204 10% 12,805 12,112 6% EBITDA 882 573 54% 2,201 1,070 106% EBITDA margin 15.4% 11.0%
Slide 20: Income Statement Snapshot - Consolidated
Income Statement Snapshot - Consolidated Particulars (₹ Mn) Q2FY24 Q2FY23 YoY % H1FY24 H1FY23 YoY% Total Income 6,927 5,529 25% 14,427 12,684 14% EBITDA 1,295 709 83% 2,862 1,320 117% EBITDA margin 18.7% 12.8% 587 bps 19.8% 10.4% 943 bps PBT Before Exceptional Item 969 399 143% 2,244 734 204% Except
Slide 21: Balance Sheet Snapshot - Standalone
Balance Sheet Snapshot - Standalone Balance Sheet Snapshot (₹ Mn) 30th Sept 2023 31st March 2023 Net worth 22,788 24,652 Gross Debt 513 2,917 - Long Term Debt 0 2,917 - Short Term Debt (Working Capital Loan) 513 0 Cash & Cash Equivalents# 9,315 18,395 Net Debt / (Cash) -8,802 -15,478 Other Long-Term
Slide 22: Industry Outlook
Industry Outlook
Slide 23: Industry dynamics - Roads Sector
Industry dynamics - Roads Sector Attractive Opportunities & Strong Policy Road Construction Per NHAI Awards and support Day (km) Execution (km)* 6,318 6,306 16,000 18% Km 4,788 45 18% of projected infrastructure National Highways to expand by 4,325 4,218 investment of ₹111 trillion in 3,979 16,000 k
Slide 24: Industry dynamics – Water Sector
Industry dynamics – Water Sector Urban Water & Sanitation - ₹ 12.6 tn capital expenditure to GoI targets households with Additional be spent in building Water piped-water supply in rural areas ₹ 600 bn (₹ TN ) Infrastructure (IN %) ₹3.3 tn Will be spent in building Water Infrastructure Vision 2025 1
Slide 25: Welspun Group and CSR
Welspun ) Group and —— — . vA vAa a
Slide 26: Welspun Group overview
Welspun Group overview USD3 Bn USD1.6 Bn 9 30,000+ Manufacturing Group Revenue Group Assets Facilities in India, USA, Workforce Net Fixed Assets and Saudi Arabia Global leader in Home Amongst world’s Robust portfolio of Integrated Grade-A Textiles largest Line-Pipe Roads & Water Infra Warehousing ma
Slide 27: CSR initiatives
CSR initiatives EDUCATION ENVIRONMENT EMPOWERMENT Our social mission is enshrined within the 3Es i.e. Education, Empowerment and Environment & Health Project Gyankunj Project Model Village Welspun Super Sports Women To enhance the teaching & learning To create a sustainable rural To identify and sup
Slide 28: Summary Financials
SUMMARY FINANCIALS
Slide 29: Summary Standalone Financial Highlights
Summary Standalone Financial Highlights Financial Year (Rs. Crs) FY-21 FY-22 FY-23 Revenue 1,410 1,307 2,676 Operating EBITDA 169 144 237 Other Income 29 38 99 Exceptional income 0 0 510 Finance Cost 45 53 76 Depreciation 12 12 10 Tax 34 23 47 PAT (With Exceptional) 108 95 710 PAT Margin 7.5% 7.1% 2
Slide 30: Balance Sheet Summary
Balance Sheet Summary Financial Year (Rs. Crs) FY-21 FY-22 FY-23 Gross Debt 602 502 292 Cash & Cash Equivalent 381 194 1,842 Net Cash -221 -307 1,549 Net Worth 1,819 1,894 2,465 Core Invesments 1,622 1,812 488 Long Term Investments 320 393 424 Payback to Investors 30 22 135 Value Creation at its Cor
Slide 31: Consistently Light on Working Capital
Consistently Light on Working Capital Net Working Capital (Days) 71 73 60 3 FY-21 FY-22 FY-23 -5 -19 Debtor Days Net Working Capital Key Highlight of WEL Model WEL Consistently operates with near negative working capital Selective sourcing of inventory to ensure quality & timely work progress 30
Slide 32: Appendix: Infrastructure Portfolio
APPENDIX Infrastructure Portfolio Existing Projects HAM: Aunta - Simaria (Ganga Bridge with Approach 1 Roads) 2 HAM: Sattanathapuram – Nagapattinam 3 EPC: Varanasi Aurangabad NH2 Project 4 EPC: UP State Water and Sanitation Mission 5 EPC: Dharavi Wastewater Treatment Facility (Mumbai) 6 BOT: Dewas W
Slide 33: Diversified Infrastructure Portfolio
Diversified Infrastructure Portfolio Project Names Contract Type Authority / Client Status Aunta-Simaria HAM NHAI Under Execution Road Assets Sattanathapuram-Nagapattinam HAM NHAI Under Execution (SNRP) Varanasi Aurangabad NH2 Project EPC SIVAPTL Under Execution (VARP) Water/ Wastewater Dewas Water
Slide 34: HAM: Aunta-Simaria
Project details Project Length (Kms) 08.15 Km HAM Acquisition Date Financial Closure Aug 2018 Achieved Aunta-Simaria Appointed Date 30th Aug 2018 (Ganga Bridge with Scheduled Construction Period 42 Months^ Approach Roads) Concession Period after COD 15 Years ^ EOT up to 29th October 2024 approved by
Slide 35: HAM: Sattanathapuram-Nagapattinam
Project details HAM Project Length (Kms) 55.755 Km Award Date July 2018 Financial Closure Achieved Sattanathapuram- Appointed Date 5th Oct 2020 Nagapattinam Scheduled Construction Period 24 months^ (SNRP) Concession Period after COD 15 Years ^ EOT up to 17th January 2025 approved by NHAI SCOPE 4 lan
Slide 36: EPC: Varanasi Aurangabad NH2 Project
Project details Project Length (Kms) 192.4 EPC Original Contract Commencement Date 30th Sep 2021 Varanasi Aurangabad Construction Period 24 Months NH2 Project Additional Contract (VARP) Construction Start Date May 2022 Construction End Date Nov 2023* • Sought EOT for period ending June ‘24 SCOPE Six
Slide 37: EPC: UP State Water and Sanitation Mission
Project details EPC Water Supply Project Scope to Villages Est aggregate contract value UP State Water and (excluding O&M value and ₹ 29,000 Mn Sanitation Mission GST) SCOPE Rural Water Supply project S No. Revenue District No of under Jal Jeevan Mission by Division Villages State Water Sanitation M
Slide 38: ₹29,000 Mn worth order under execution
₹29,000 Mn worth order under execution Lead Partner in Joint Venture with Kaveri Infraprojects Limited, Hyderabad 70 : 30 Empanelled by the UP-State Water and Sanitation Mission, Namami Gange and Rural Water Supply Execution of EPC Projects of 2,544 villages for the Project of Survey, Design, Prepar
Slide 39: EPC: Dharavi Wastewater Treatment Facility
Project details EPC Contract period 60 Months for Design Build, 15 years of operation and Wastewater Treatment maintenance Facility - Mumbai Sewage Welspun Enterprises 80% Disposal Project share in JV Status SCOPE Design, Build, Operation and LOA received on May 27, 2022 Maintenance of 418 MLD Dhara
Slide 40: BOT Dewas Water
BOT Sector Project Name Location COD Concession End Dewas Water Water Supply Dewas Water* MP Apr-20 Jun-37 *Dewas Water – Modified Project Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas FY23 revenue stands at ₹124.9 mn with EBITDA of ₹66.7
Slide 41: Investment in Oil & Gas blocks
Block Name Location AWEL WEL Status Investment Stake Effective Stake in Oil & Gas MB-OSN-2005/2 Mumbai 100.0% 35.0% AWEL drilled a well and had made a Offshore hydrocarbon discovery wherein three layers have proven to be gas bearing, two layers have blocks: flown good amount of gas to surface. A dis
Slide 42: For further details please contact
Thank You For further details please contact CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED CIN: L45201GJ1994PLC023920 C/8, BKT House, Trade World, Kamala City, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India investorrelations_WEL@welspun.com/Siddharth_Bharadwaj@welspun.com Mr Salil Bawa, He