Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q1 FY23 Earnings Presentation
30 slides from Welspun Living's earnings presentation, Jul 27, 2022
Slide 1: Earnings Presentation
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q1 FY23 27th July 2022 NSE: WELSPUNIND 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 Operational Highlights 13 Quarterly Segment Results 15 Enhancing Capacity; Catering to Growing Demand 16 Profit & Loss Summary 18 Financial Stateme
Slide 3: Welspun India - Global Home Textiles Leader
Welspun India - Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.3 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture larger share of the organization with landscape. With a strong global well-defined D
Slide 4: Management Commentary
Management Commentary I am happy to share that our Domestic Retail, Global Brands & direct-to- consumer (D2C) businesses continue to deliver exceptional performances during Q1FY23, with the Domestic Retail business registering a 113% growth and the overall D2C & Brands business growing by 40% year-o
Slide 5: Awards & Recognition
AWARDS & RECOGNITION Feathers in our cap W a t c h v id e o Industry 4.0 Sustainability Product Development 2022 2022 2022 Read More Artificial Intelligence for Community Sustainable Excellence in Product Towel counting & Defect award for ESG efforts Recognized by Walmart as trusted partner for deve
Slide 6: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India ROW Over 50 Countries Presence welspunindia.com 6
Slide 7: Key Highlights
Key Highlights Brands E-Commerce Innovation Click the I cons to know more Total Income in Q1 FY 23 is ₹ 19,790 mn. Net Debt stood at ₹ 21,392 mn vs. ₹ 22,289 mn (March 2022) EBITDA in Q1 FY23 Stood at ₹ 1736 mn @ Margin 8.77% Branded business at ₹4,214 mn in Q1 FY23, Flooring Business grew by 40%YoY
Slide 8: Quarterly Highlights – YoY
Quarterly Highlights – YoY Q1 FY23 (₹ Million) Revenue EBITDA PBT PAT Cash Profit 19,790 1,736 364 224 1,317 Growth (YoY)* (6.7%) (51.1%) (82.6%) (84.5%) (45.9%) Margin (%) 8.8% 1.8% 1.1% Margin Expansion/Contraction (y-o-y) (795 Bps) (800 Bps) (566 Bps) EPS/CEPS 0.23 1.33 Note: * Q1FY22 numbers adj
Slide 9: Quarterly Highlights - QoQ
Quarterly Highlights - QoQ Q1 FY23 (₹ Million) Revenue EBITDA PBT PAT Cash Profit 19,790 1,736 364 224 1,317 Growth (QoQ) (11.9%) (29.6%) (66.6%) (57.1%) (31.3%) Margin (%) 8.8% 1.8% 1.1% Margin Expansion/Contraction (Q-o-Q) (220 Bps) (300 Bps) (119 Bps) EPS/CEPS 0.23 1.33 welspunindia.com 9
Slide 10: Quarterly Highlights
Quarterly Highlights (₹ Million) Particulars 30-June-22 31-Mar-22 30-June-21 Net Worth 39,666 39,717 38,471 Short Term Loans 17,264 19,742 17,956 Long Term Loans 12,163 12,142 11,774 Net Debt / Equity (x) 1.00 of which Net Flooring Debt 8,358 8,300 7,656 0.80 0.60 Gross Debt 29,426 31,884 29,730 0.4
Slide 11: Revenue Highlights
Revenue Highlights (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q1FY23 2,398 9,689 1,131 811 2,290 28 1,086 Sales Contribution (%) 14% 56% 6% 5% 13% 0% 6% Q4FY22 4,103 11,832 1,123 885 1,277 25 1,019 Sales Contribution (%) 20% 58%
Slide 12: Revenue Highlights
Revenue Highlights (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Comm Flooring – B2B Flooring – Branded Textiles Q1FY23 10,967 3,156 838 898 1,353 219 Sales Contribution (%) 63% 18% 5% 5% 8% 1% Q4FY22 14,924 2,070 910 742 1,392 226 Sales Contributi
Slide 13: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q1FY23 Q4FY22 Q1FY22 Capacity (%) (%) (%) Bath Linen MT 85,400 11,632 54% 14,360 67% 19,179 95% Bed Linen Mn mtrs 108 14.0 52% 15.5 69% 21.8 97% Home Rugs & Carpets Mn s
Slide 14: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) Particulars Q1 FY23 Q1 FY22 YoY Change* Q4 FY22 QoQ Change Total Income 19,790 22,272 (6.7%) 22,471 (11.9%) EBITDA 1,736 4,598 (51.1%) 2,464 (29.6%) EBITDA Margin (%) 8.8% 20.6% (795 bps) 11.0% (220 bps) Finance Cost 323 489 (33.9%) 263 22.9% Depreciation 1,049 97
Slide 15: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue Segmentation (%) YoY QoQ Particulars Q1 FY23 Q1 FY22 Q4 FY22 Change* Change Q1 FY23 Home Textile Revenue 18,521 21,283 (8.5%) 20,730 (10.7%) EBITDA 1,716 4,805 (54.3%) 2,404 (28.6%) EBITDA Margin (%) 9.3% 22.6% (929 bps) 11.6% (233 bps) 91.6% 8.4% Floori
Slide 16: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capital light expansion in the areas of processing,
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 FY18 FY19 FY20 FY21 FY22 Q1 FY 23 Total Income 61,318 66,084 68,362 74,080 93,773 19,790 Growth YoY* % -8.8% 7.8% 3.4% 8.4% 26.6% -6.7% EBITDA 12,046 11,467 13,098 14,198 14,246 1,736 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% 8.8% Depreciation 5,042 4,
Slide 19: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 Q1 FY 23 Net Worth 26,057 27,793 29,721 36,447 39,717 39,666 Short Term Loans 12,580 14,080 17,717 17,452 19,742 17,264 Long Term Loans 20,228 19,024 16,704 10,962 12,142 12,163 of which Net Flooring Debt
Slide 20: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 Q1 FY23 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 0.54 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 1.82 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 6.50 Current ratio 1.42 1.25 1.19 1.33 1.37 1.42 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 2.28 Total
Slide 21: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through Engaged with Cotton Farmers to Board Committee on ESG a major transformation where Implemented ISO 14001 train & enable them grow Executive remuneration linked to we are embedding sustaina
Slide 22: Sustainability Initiatives – Growing business responsibly
Sustainability Initiatives – Growing business responsibly Rated “Low Risk” on ESG factors by one of the Sustainalytics DJSI ratings Crisil ratings top ESG rating agency Among Top 100 Sustainable companies in India by ET-Futurescape ESG 202 Score improved to 14.8 Score improved from 8 to Score 63 – S
Slide 23: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q1FY 23 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 59% 50% 100% Fresh Water Positive in Production 14.45 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 8.75 MT 0 MT 0 MT ch
Slide 24: Share Holding Summary
Share Holding Summary Shareholding Pattern (Mar 2022) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 6.9% L&T Mutual Fund Mutual Funds/AIF 1.7% Aditya Birla Sunlife MF Insurance Co’s 3.7% Tata Mutual Fund Public 17.3% welspunindia.com 24
Slide 25: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India 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 India Limited sanjay_gupta1@welspun.com Mr. Abhinandan Singh Group Head – Investor Relations abhinandan_singh@welspun.com welspunindia.com TheWelspunGroup welspungroup
Slide 27: Annexure
Annexure
Slide 28: Owned Brands - Domestic
Owned Brands - Domestic Festive Collection: Launch of Healthy Life Campaign: Rangana Campaign Anti Viral Brand Positioning Premium Mass Thoughtfulness Presence Click here to view Click here to view 2,402+ outlets 7,833+ outlets 380 towns 495 towns 240 Shop in Shop locations 125 Dis
Slide 29: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth 3 Ecommerce Build & Grow Robust Supply Strong Technology Right Geographies in focus Channel Growth Branded Business Chain Back-end Organization US UK India Brand.com Own Brand Inventory Planning Tech-Stack: Middleware COE Org Model Marketplaces Lice
Slide 30: 35 Patented Technologies
Innovation – Our strong suite 35 Patented Technologies Key Innovations Filed globally WIL: 31 HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain Advance Textiles: 2 Patented spinning technology makes towel platform for state-of-the-art transparency for softer loftier and sheet tem