Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q1 FY24 Earnings Presentation
37 slides from Welspun Enterprises's earnings presentation, Aug 2, 2023
Slide 1: Cover letter to stock exchanges (typographical correction)
WEL/SEC/2023 August 02, 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: In
Slide 2: Welspun Enterprises Limited Q1FY24 Investor Presentation
WELSPUN ENTERPRISES LIMITED Q1FY24 Investor Presentation 1st August 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: Advantage WEL
ADVANTAGE WEL
Slide 6: 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 7: Through an experienced Management
Through an experienced Management Sandeep Garg Lalit Jain Neeraj Gupta Yogen Lal Rajesh Jain Managing Director Chief Financial Vertical Head Vertical Head Chief Human Officer (Roads) (Water) Resource Officer Harvard graduate with ICWA: Costing & 24+ years of Civil engineer with MBA (HR) an
Slide 8: 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 9: 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 10: Strong platform set for future growth
Strong platform set for future growth Robust portfolio of Road and Current order ₹ 96 Bn* Water projects book at (excluding GST) Segment Break-up Order Book Break-up 37% 83% ROAD EXTERNAL 63% WATER CAPTIV E 17% Current Order Book provides strong revenue growth visibility * As on June 30th, 2023 and
Slide 11: Way forward
Trends towards Diversification Trends in Order Book Break-up WEL Portfolio (in ₹ Mn) 96,000 90,490 EPC of Other HAM , EPC, 4% 17% Water EPC, 63% 39,000 FY17 Q1FY24 EPC of BOT, 1% EPC of Road EPC, HAM , 19% 96% Development EPC* Development (Divested) Way Continue approach of prudent bid strategy to s
Slide 12: Financials
Financials
Slide 13: 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 14: Income Statement Snapshot - Standalone
Income Statement Snapshot - Standalone Particulars (₹ Mn) Q1FY24 Q1FY23 YoY % FY23 Q4FY23 QoQ % Revenue from Operations 6,807 6,745 1% 26,764 8,240 -17% Other Income 287 164 986 597 Total Income 7,095 6,908 3% 27,750 8,836 -20% EBITDA 1,320 498 165% 3,353 1509 -13% EBITDA margin 18.6% 7.2% 1,140 bps
Slide 15: Income Statement Snapshot - Consolidated
Income Statement Snapshot - Consolidated Particulars (₹ Mn) Q1FY24 Q1FY23 YoY % FY23 Q4FY23 QoQ % Total Income 7,500 7,155 5% 29,016 9,165 -18% EBITDA 1,567 611 157% 3,911 1662 -6% EBITDA margin 20.9% 8.5% 1,236 bps 13.5% 18.1% 275 bps PBT Before Exceptional Item 1,265 335 277% 2,584 1,263 0% Except
Slide 16: Balance Sheet Snapshot - Standalone
Balance Sheet Snapshot - Standalone Balance Sheet Snapshot (₹ Mn) 30th June 2023 31st March 2023 Net worth 22,354 24,652 Gross Debt 0 2,917 - Long Term Debt 0 0 - Short Term Debt (Working Capital Loan) 0 2,917 Cash & Cash Equivalents# 10,577 18,395 Net Debt / (Cash) -10,577 -15,478 Other Long-Term L
Slide 17: Industry Outlook
Industry Outlook
Slide 18: 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 19: 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 20: Welspun Group and CSR
Welspun ) Group and —— — . vA vAa a
Slide 21: Welspun Group overview
Welspun Group overview USD2.3 Bn USD1.6 Bn 9 26,000+ 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
Slide 22: 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 23: Summary Financials
SUMMARY FINANCIALS
Slide 24: 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 25: 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 26: 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 25
Slide 27: 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 28: 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 29: HAM: Aunta-Simaria project details
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 30: HAM: Sattanathapuram-Nagapattinam project details
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 31: 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 SCOPE Six laning of Varanasi – Status Aurangabad s
Slide 32: 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 33: ₹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 34: EPC: Dharavi Wastewater Treatment Facility, Mumbai
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 35: 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 36: 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 37: For further details please contact
Thank You For further details please contact CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED CIN: L45201GJ1994PLC023920 Welspun House, 5th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India investorrelations_WEL@welspun.com/Siddharth_Bharadwaj@welspun.com Mr Salil B