Welspun Corp Limited · NSE:WELCORP
Welspun — Q3 FY22 Earnings Presentation
32 slides from Welspun's earnings presentation, Feb 11, 2022
Slide 1: Exchange filing cover letter
WCL/SEC/2022 February 10, 2022 To, BSE Ltd. National Stock Exchange of India Ltd. Department of Listing, (Symbol: WELCORP, Series EQ) P. J. Towers, Dalal Street, Mumbai – 400 001. Exchange Plaza, Bandra-Kurla Complex, (Scrip Code: Bandra (E), Mumbai – 400 051. Equity - 532144), (NCD – 948505, 960468
Slide 2: Business Update: Successfully completes IPO in KSA
BUSINESS UPDATE Successfully completes IPO in KSA February 10th, 2022, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended December 31st, 2021. IPO of Joint Venture Company EPIC in Kingdom of Saudi Arabia comp
Slide 3: Business Update: Tax, dividend and business outlook
BUSINESS UPDATE 7. Corporate Tax Rate The company has fully utilized its existing tax credits in FY21 and has switched to the new corporate tax rate of 25.17% in FY22 from 34.94% (both including surcharges) in India. 8. Dividend During Q2 FY22, the company paid a dividend of ~ INR 130 crores. The di
Slide 4: Business Update: India outlook
BUSINESS UPDATE in gas prices, cost economics remain favourable for CNG and PNG (domestic) compared to alternate fuels. The Union Budget 2022-23 has allocated Rs. 60,000 crore to extend tap water coverage to 3.8 crore households in 2022-23. The previous budget had allocated Rs. 50,000 crore for the
Slide 5: Business Update: Saudi Arabia and IPO update
BUSINESS UPDATE Saudi Arabia The Middle East is a key area for the welded pipes market due to rapidly growing water and gas consumption, driven by announcement of large and vital projects requiring significant investment in pipelines. The Saudi market is the main driver of the demand volume in the G
Slide 6: Business Update: Ductile iron pipe project and ESG
BUSINESS UPDATE Since the Company has a judicious capital allocation policy, every proposal has to first meet the internal thresholds for ROI and profitability before being considered for acceptance. 13. Update on Ductile Iron Pipe Project As announced in October 2020, given the industry prospects a
Slide 7: Reconciliation of Operating EBITDA and performance snapshot
BUSINESS UPDATE Detailed reconciliation of Operating EBITDA is provided hereunder: Figures in Rs. Cr Reconciliation of Operating EBITDA Q3FY22 Q2FY22 Q3FY21 9MFY22 9MFY21 Reported EBITDA 180 195 252 578 689 Treasury income (48) (34) (16) (115) (41) Profit on sale of Land (incl. interest) - - (20) -
Slide 8: Consolidated balance sheet and Saudi financials
BUSINESS UPDATE Figures in Rs. Cr Consolidated Balance Sheet - Key figures Dec-21 Sep-21 Jun-21 Net Fixed Assets (incl CWIP) 2,259 1,923 1,753 Net Current Assets 1,701 1,753 2,018 Net Debt / (Net Cash) (839) (1,022) (853) Net Worth 3,917 3,856 3,910 ROCE (pre-tax) 14.0% 16.2% 16.7% ROCE (pre-tax) =
Slide 9: Investor conference call and About Welspun Corp
BUSINESS UPDATE Q3 FY22 Investor / Analyst conference call: WCL management would be happy to answer investor queries on a conference call. Please find details below: Date: Friday, 11th February 2022 Time: 10:00 AM IST Dial in details: Primary Access: +91 22 6280 1325 / +91 22 7115 8226 Internati
Slide 10: Welspun Corp Limited Q3 FY22
Welspun Corp Limited Investor Presentation | Q3 FY22
Slide 11: Disclaimer
Disclaimer For any financial disclosures, the information contained herein is provided by Welspun Corp 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 su
Slide 12: Q3 FY22 at a Glance
Q3 FY22 at a Glance Global Production Global Sales Global Order Book Active Bids - Outlook 140 KMT 171 KMT 543 KMT 1,946 KMT EBITDA Op EBITDA / Ton EPS Net Cash Position Rs. 9,650 / Rs. 180 crs Rs. 2.4 Rs. 839 crs USD 130 Note: Pipe Sales & Production volumes, Order Book and Future Bids include Saud
Slide 13: Financial Results for Q3 FY22
Financial Results for Q3 FY22 Particulars (Rs Cr) Q3FY22 Q3FY21 YoY Pipe Sales Volume (KMT) 171 285 -40.0% Total Income from Operations 1,299 1,393 -6.8% Operating EBITDA 132 189 -30.3% EBITDA 180 252 -28.7% Depreciation 55 54 1.6% Finance cost 21 13 58.4% Profit before tax and share of JV 104 185 -
Slide 14: IPO of Joint Venture Company EPIC in Kingdom of Saudi Arabia completed
IPO of Joint Venture Company EPIC in Kingdom of Saudi Arabia completed • The IPO of East Pipes Integrated Company for Industry (EPIC) was for 6.3 million ordinary shares, representing 30% of the issued share capital of 21 million shares by way of an Offer for Sale (OFS) of existing shares of the cur
Slide 15: Operational Performance: Pipes (Capacity and Volumes)
Operational Performance: Pipes (Capacity and Volumes) Achieved > 1,000 KMT of Sales CONSOLIDATION PHASE Volume in previous 8 out of 9 years 1,850 2,200 2,425 2,425 2,425 2,425 2,425 2,425 2,555 2,555 2,555 2,555 1450 1450 1100 1018 1019 1152 1100 1082 1279 1502 1003 950 371 950 501 641 695 816 909 8
Slide 16: Financial Performance
Financial Performance Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 9MFY22 Sales Volume (KMT) 1,018 1,019 1,152 1,100 936 1,082 1,279 1,502 1,003 526 Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 6,440 3,904 EBITDA (INR cr) 919 844 951 891 737 815 708 1,276 1,010 578 EP
Slide 17: Sales Volume Mix
Sales Volume Mix Consistent Performance in India 764 635 646 632 650 629 626 578 510 500 393 413 423 236 255 222 217 265 180 254 165 197 237 138 123 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 India (KMT) USA (KMT) Saudi (KMT) Investor Presentation 8
Slide 18: Our ESG Journey
Our ESG Journey Environmental & Social Detailed Benchmarking Mapping universe of Arrive at baseline Formulation of a Public reporting and versus peers on ESG issues, objectives and scenario in line with strategic roadmap disclosures of ESG factors risk and prioritizing WEF metrics and outlining key
Slide 19: Sustainability Targets
Sustainability Targets Aspects FY 2020-21 Goal 2025 Goal 2030 Goal 2040 Carbon Neutrality 10% RE 20% RE Carbon neutral - % Renewable Energy (RE) Water Neutrality 0.63 KL/MT 0.55 KL/MT 0.40 KL/MT Water neutral - Water Intensity Zero waste to Waste to Landfill 1.53 MT 1.00 MT 0 MT landfill Impacting L
Slide 20: ESG Initiatives in FY22
ESG Initiatives in FY22 Several management interventions with ESG at the core: ‒ MoU with BP India Pvt Ltd. to jointly explore carbon emission mitigation and reduction opportunities in WCL’s energy, logistics, mobility and waste management activities ‒ Project for Installation of 300 KW Solar Panels
Slide 21: Strategy for Long Term Value Creation
Strategy for Long Term Value Creation 1 Business Growth & Diversification to improve Earnings Predictability and Enhance Margins 2 Delivering on Growth Plans and Operational Excellence 3 Maintain Balance Sheet Strength 4 Continue to integrate Digital Technologies into all areas of Business 5 Thrust
Slide 22: Diversification of Product Portfolio
Diversification of Product Portfolio • Global Leadership Position in this Segment Large Diameter • Focus on expanding customer base and presence Existing Pipes Business • No Capex spend apart from regular maintenance • Greenfield Project at Anjar with capacity of 400 KMPTA Greenfield Ductile Iron Pi
Slide 23: Welspun Corp at a glance
Welspun Corp at a glance Top Among Line Pipe Manufacturers globally 3 50+ Approvals from O&G majors; Qualifies for global bidding 15+ Pipes delivered since inception with multiple repeat orders MN MT 6 manufacturing facilities Used in Oil & Gas and 2.55 mn MT Pipes Capacity in 3 countries Water indu
Slide 24: Our Manufacturing Facilities
Our Manufacturing Facilities INDIA UNITED STATES SAUDI ARABIA Capacity India US Saudi Arabia (in KMT) Total Products / City Anjar Dahej Mandya Bhopal Little Rock Dammam LSAW 350 350 - - - - 700 HSAW 250 50 150 305 350 375 1,480 ERW/ HFIW 200 - - - 175 - 375 SAW Pipes (KMT) 1,655 525 375 2,555 DI Pip
Slide 25: Our Business Moat
Our Business Moat Global Leadership Accreditations Expertise Among Top 3 Line Pipe Approvals: 50+ O&G majors; Executed critical & complex projects Manufacturers globally Qualifies for global bidding worldwide Customer Centricity Supplier Relationship Innovation Delivered 15+ mn MT Pipes with Long te
Slide 26: Approvals & accreditations from marquee customers is a significant entry barrier
Approvals & accreditations from marquee customers is a significant entry barrier Oil & gas Transportation Others Investor Presentation 17
Slide 27: Key Milestones
Key Milestones Established the CWC plant in Anjar Established the LSAW mill at under a JV with WASCO Energy Anjar Acquired a controlling stake in the HSAW mill at Dammam, Established the HSAW Kingdom of Saudi Arabia Established the HSAW and mill at Little Rock, USA HFW mills in Anjar, Gujarat As par
Slide 28: Product Information
Product Information HSAW Pipes LSAW Pipes (Helically welded) (Longitudinally welded) ERW Pipes DI Pipes (Electric Resistance (Ductile Iron) Welded) 18 – 140 inch 16 – 60 inch 80– 1200 mm 1.5 – 16 inch diameter, 6 mm to diameter, diameter, K7 and diameter, 4 mm to 27 mm 6 mm to 50.8 mm K9 class 14 mm
Slide 29: Unique Manufacturing Advantage: India
Unique Manufacturing Advantage: India INDIA : 20+ YEARS OF EXPERTISE Strategically Located Plants …to cover West, South and Central India • All-round capability: Pipes, bends, internal and external coating, Concrete Weight Coating • Location advantage: Ideal to cater to export and domestic businesse
Slide 30: Unique Manufacturing Advantage: US & Saudi
Unique Manufacturing Advantage: US & Saudi US: DOMINANT PLAYER IN LINE PIPES SAUDI: ONE OF THE LARGEST PIPE PLANTS • Largest and most modern spiral (HSAW) mill • Location Advantage: • Patented manufacturing technologies • Proximity to Dammam Port • Strategic location, west of the Mississippi river •
Slide 31: Board of Directors & Management Profile
Board of Directors & Management Profile Board of Directors Management Team B.K.Goenka - Non-Executive Chairman & Promoter Director Vipul Mathur - Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen • Well-known figure in the global pipe industry; Associated with Welsp
Slide 32: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan gaurav_ajjan@welspun.com October 2020