Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Q3 FY24 Earnings Presentation
31 slides from Welspun Living's earnings presentation, January 2024
Slide 1: Earnings Presentation Welspun Living Limited
Earnings Presentation Welspun Living Limited Home Textile | Advance Textile | Flooring Q3 FY24 January 2024 NSE/BSE: WELSPUNLIV 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 9M FY 24 summary 09 Operational Highlights 13 Quarterly Segment Results 16 Profit & Loss Summary 18 Financial Statements Summary 19 ESG at Welspun
Slide 3: Welspun Living - Global Home Textiles Leader
WELSPUN LIVING - GLOBAL HOME TEXTILES LEADER Multipronged Welspun Living Ltd (WLL), E-Commerce ESG Focused part of $3 bn Welspun Group, is a Strategy to organization with global leader in the Home Textiles accelerate growth & capture well-defined landscape. With a strong global principles, Diversifi
Slide 4: Management Commentary
MANAGEMENT COMMENTARY “We are glad to see continued growth in all our businesses in Q3 setting up newer landmarks by reaching highest Q3 revenues, growing at 29% and highest ever revenues in Domestic and Flooring businesses leading to increased market share in all areas of our operations. Our abilit
Slide 5: Awards & Recognition
AWARDS & RECOGNITION Feathrs in our cap Best Managed Company by Platinum Award by Apex Deloitte – won in 2 years in a Safety Excellence Diamond India Foundation Award’23 row Award at Golden Bird for Excellence in Ms. Dipali Goenka recognized as the "Most Powerful National Awards ‘23 Corporate Ethics
Slide 6: Strong Global Presence
STRONG GLOBAL PRESENCE KEY CUSTOMER PARTNERSHIP North America UK & Europe India ROW Over 50 IKEA Countries Presence welspunliving.com 6
Slide 7: Key Highlights
KEY HIGHLIGHTS Brands ESG Innovation C lick the Ico ns to k no w m o re Total Income EBITDA Q3 ₹ 24,539 mn grew 28.9% YoY Q3 ₹ 3,819 mn @ 15.6% grew 67.1% YoY 9M ₹ 72,084 mn grew 19.7% YOY 9M ₹ 11,146 mn @ 15.5% grew 101.3% YOY Domestic Consumer Business grew by 10.5% YoY Flo
Slide 8: Quarterly Highlights
QUARTERLY HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 24,539 3,819 2,396 1,768 2,746 Growth (YoY) 28.9% 67.1% 205.1% 317.1% 54.4% Growth (QoQ) (3.5%) (2.4%) (7.5%) (10.1%) (3.1%) Margin (%) 15.6% 9.8% 7.2% Margin Expansion (Y-o-Y) 356 bps 564 bps 498 bps Margin Expansion (Q-o-Q) 17 bps
Slide 9: 9M FY24 Highlights
9M FY 24 HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 72,084 11,146 7,148 5,351 8,101 Growth (YoY) 19.7% 101.3% 455.9% 628.6% 89.3% Margin (%) 15.5% 9.9% 7.4% Margin Expansion (Y-o-Y) 626 bps 778 bps 620 bps EPS/CEPS 5.54 8.34 welspunliving.com 9
Slide 10: Quarterly Highlights
QUARTERLY HIGHLIGHTS (₹ Million) Particulars 31-Dec-23 31-Dec-22 30-Sept-23 Net Worth 43,795 39,416 41,975 Short Term Loans 15,187 17,051 13,266 Net Debt / Equity Long Term Loans 9,852 11,511 10,167 (x) Gross Debt 25,038 28,562 23,433 1.00 0.80 Cash & Cash Equiv. 9,622 9,470 7,698 0.60 0.48 0.40 0.3
Slide 11: Sales Highlights – Channel Wise
SALES HIGHLIGHTS – CHANNEL WISE (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q3 FY24 4,002 12,351 1,293 580 1,729 40 1,575 Sales Contribution (%) 19% 57% 6% 3% 8% 0% 7% Q2 FY24 5,314 11,609 1,527 685 1,788 30 1,306 Sales Contribut
Slide 12: Sales Highlights – Business Wise
SALES HIGHLIGHTS – BUSINESS WISE (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Com Flooring – B2B Flooring – Branded Textiles Q3 FY24 14,729 2,909 620 1,234 1,685 395 Sales Contribution (%) 68% 13% 3% 6% 8% 2% Q2 FY24 15,353 2,814 715 1,105 1,993 2
Slide 13: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q3FY24 Q2FY24 Q3FY23 Capacity (%) (%) (%) Bath Linen MT 90,000 18,933 84% 21,012 93% 16,279 72% Bed Linen Mn mtrs 108 16.0 59% 21.8 81% 12.6 47% Home Rugs & Carpets Mn sq mtrs 12.0
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM 9MFY24 9MFY23 Capacity (%) (%) Bath Linen MT 90,000 58,126 86% 41,449 62% Bed Linen Mn mtrs 108 53.2 66% 40.5 50% Home Rugs & Carpets Mn sq mtrs 12.0 8.2 92% 5.1 56% Textile Advanced Textile Sp
Slide 15: Quarterly Profit & Loss
QUARTERLY PROFIT & LOSS (₹ Million) Particulars Q3FY24 Q3 FY23 YoY Change Q2FY24 QoQ Change Total Income 24,539 19,041 28.9% 25,424 (3.5%) EBITDA 3,819 2,286 67.1% 3,913 (2.4%) EBITDA Margin (%) 15.6% 12.0% 356 bps 15.4% 17 bps Finance Cost 419 359 16.8% 338 23.9% Depreciation 1,004 1,142 (12.1%) 98
Slide 16: Quarterly Segment Results
QUARTERLY SEGMENT RESULTS (₹ Million) Revenue Segmentation (%) YoY QoQ YoY Particulars Q3 FY24 Q3 FY23 Q2 FY24 9M FY24 9M FY23 Change Change Change Q3 FY24 Home Textile Revenue 22,514 17,575 28.1% 23,523 (4.3%) 66,413 56,210 18.2% EBITDA 3,470 2,062 68.3% 3,594 (3.4%) 10,187 5,054 101.6% EBITDA Marg
Slide 17: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 17
Slide 18: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY20 FY21 FY22 FY 23 9M FY 24 Total Income 68,362 74,080 93,773 82,151 72,084 Growth YoY* % 3.4% 8.4% 26.6% (11.4%) 19.7% EBITDA 13,098 14,198 14,246 8,739 11,146 EBITDA Margin 19.2% 19.2% 15.2% 10.6% 15.5% Depreciation 4,811 4,536 4,205 4,421 2,983 Fina
Slide 19: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Dec-23 Net Worth 29,721 36,447 39,717 40,878 43,795 Short Term Loans 17,717 17,452 19,742 12,342 15,187 Long Term Loans 16,704 10,962 12,142 11,162 9,852 Gross Debt 34,421 28,414 31,884 23,504 25,038 Cash & Cash
Slide 20: Ratios Summary
Ratios Summary FY20 FY21 FY22 FY23 9M FY24 Net Debt/Equity 1.00 0.64 0.56 0.38 0.35 Solvency Net Debt/EBITDA 2.26 1.64 1.56 1.76 1.07 ratios EBIT/Interest 4.66 4.89 7.65 3.32 7.58 Current ratio 1.19 1.33 1.37 1.66 1.61 Fixed asset turnover 1.77 1.93 2.33 2.14 2.50 Total asset turnover 0.81 0.85 0.99
Slide 21: Welspun ESG Way: Encompassing All Stakeholders
WELSPUN ESG WAY: ENCOMPASSING ALL STAKEHOLDERS Environmental Social Governance Welspun is going through Implemented ISO 14001 Engaged with Cotton Farmers Board Committee on ESG a major transformation where we are Environmental Management to grow sustainable Cotton embedding sustainability and
Slide 22: Sustainability Initiatives – Growing Business Responsibly
SUSTAINABILITY INITIATIVES – GROWING BUSINESS RESPONSIBLY W elsp u n L i vi n g ’s S us t ai n a bil it y c as e s t ud y i s n o w a p a rt of a cu rr iculu m acr o ss universities in US, Canada, France, Europe and Taiwan.” Sustainalytics DJSI ratings Crisil ratings Welspu n Liv ing is a m ongs
Slide 23: Sustainability – Progress Against Targets
SUSTAINABILITY – PROGRESS AGAINST TARGETS Aspects 9M FY 24 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 81% 50% 100% Fresh Water Positive in Production 11KL/MT 5KL/MT 0KL/MT operations Zero hazardous waste to Landfill (ETP 43 MT 0 MT 0 MT chemical
Slide 24: Share Holding Summary
SHARE HOLDING SUMMARY Shareholding Pattern (Dec 2023) Top Institutional Shareholders Promoter Group 70.5% LIC of India FPIs 7.3% HSBC Mutual Fund Mutual Funds/AIF 2.0% Aditya Birla Sunlife MF Insurance Co’s 3.3% Nippon Mutual Fund Public 15.9% Other 1.0% welspunliving.com 24
Slide 25: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Welspun Living 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 26: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun Living Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com Connect with us: /TheWelspunworld /WelspunWorld /welspungroup /company/welspunworld
Slide 27: Annexure
Annexure:
Slide 28: Owned Brands – Domestic
Diversified Product Portfolio OWNED BRANDS – DOMESTIC BED LINEN BATH LINEN Bedsheets Towels Comforters Bath mats Dohars Bath robes Pillow covers Brand Positioning Premium Mass Thoughtfulness RUGS FLOORING SOLUTIONS Presence 17,006+ outlets (1,495+ in Q3 24) Door mats Click & Lock tiles 2,4
Slide 29: Retail Journey
RETAIL JOURNEY Campaign with Akshay Kumar Brand Welspun - most distributed brand, HT CSO Campaign Launched Reached Rs 100 Cr launched for Re-launch of EBO Spaces Turnover consumer brand engagement (SPACES) 2004 2008 2016 2018 2019 2022 2023 3% 5% 7% Launched Launched Welspun Brand
Slide 30: Domestic Consumer Business Buildup
DOMESTIC CONSUMER BUSINESS BUILDUP Awards Innovation: Highest Distributed 75% Districts • 2-in-1 Sheet Brand Welspun Brand in HT Share of Presence in shelf: >=15% MBO; • Quik Dry Towel ~500/640 >= 40% Large format • Wonderful sheet Make in India: Presence: 17k+ Outlets Most Visible Brand Highest Sca
Slide 31: Innovation – Our Strong Suite
INNOVATION – OUR STRONG SUITE 37 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Patented spinning technology makes towel Blockchain platform for state-of-the-art softer loftier and sheet temperature transparency for All Fibers & All Pr