Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q3 FY21 Earnings Presentation
29 slides from Welspun Living's earnings presentation, Jan 27, 2021
Slide 1: Stock exchange disclosure cover letter
WIL/SEC/2021 January 27, 2021 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services, ListingCompliance Department SP. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 (Scrip Code-514162) (Sy
Slide 2: Earnings Presentation Q3 FY21
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q3 FY21 January 2021 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 3: Inside this Presentation
Inside this Presentation Executive Summary 03 Management Commentary 04 Key Highlights 05 Quarterly Highlights 06 Operational Highlights 10 Enhancing Capacity; Catering to Growing Demand 11 Quarterly Profit & Loss 12 Quarterly Segment Results 13 Summary of Financial Statements 14 ESG at Welspun 18 Sh
Slide 4: Executive Summary
Executive Summary Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.7 Bn Welspun Group, Strategy to accelerate ESG Focused organisation with is a global leader in the Home growth & capture larger share of the well-defined Textiles landscape. With a Diversified Brand and License principles,
Slide 5: Management Commentary
Management Commentary Q3FY21 With emergence of homebody economy, there is a visible structural shift in consumers’ spending for home products. We delivered solid performance despite seasonally weak quarter, clocking highest ever quarterly revenue in the history of the company. Our Branded business d
Slide 6: Key Highlights
Key Highlights Q3FY21 Recent Awards & Recognition Brands E-Commerce Innovation V is it We b s it e Click the I cons to know more R e a d M o re Total Income up 28% YoY at EBITDA up 75% YoY at ₹ 4,187 mn and Welspun’s Sustainability journey now a ₹ 20,497 mn Margin stood at 20.4% case study on Ivey p
Slide 7: Quarterly Highlights
Quarterly Highlights Q3FY21 (₹ Million) Revenue^ EBITDA^ PBT PAT Cash Profit 20,497 4,187 2,489 1,808 3,217 Growth (YoY) 27.7% 75.3% 308.8% 147.0% 97.4% Growth (QoQ) 2.9% 3.4% (1.9)% 0.6% 1.2% Margin (%) (y-o-y) 20.4% 12.1% 8.8% Margin Expansion/Contraction (y-o-y) 554 bps 835 bps 426 bps EPS/CEPS 1
Slide 8: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) Q3FY21 (₹ Million) Particulars 31-Dec-20 31-Mar-20 ROE ROCE (In %) (In %) 20.0 15 Net Worth 35,324 29,721 15.0 10 Short Term Loans 16,374 17,717 10.0 5 14.9 12.9 10.4 12.2 Long Term Loans 14,633 16,704 5.0 11.6 11.9 0.0 0 of which Flooring Debt 6,799 6,378 Q3FY21 Q2FY21
Slide 9: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) Q3FY21 (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q3FY21 6,060 8,225 1,033 900 873 60 846 Sales Contribution (%) 34% 46% 6% 5% 5% 0% 5% Q3FY20 4,440 7,553 700 762 609 27 701 Sales Contribution (%) 30
Slide 10: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) Q3FY21 (₹ Million) Revenue Textiles Business Other Businesses HT - B2B HT – Branded HT - E-Comm Advanced Textile Flooring – B2B Flooring – Branded Q3FY21 13,855 1,509 960 738 725 210 Sales Contribution (%) 77% 8% 5% 4% 4% 1% Q3FY20 11,945 1,208 789 618 131 102 Sales Cont
Slide 11: Operational highlights
Operational highlights Manufacturing Capacity & Utilization Particulars UOM Annual Capacity Q3FY21 Utilization (%) Q2FY21 Q3FY20 Home Bath Linen MT 80,000 19,717 99% 18,223 17,967 Textile Bed Linen Mn mtrs 90 21.2 94% 18.9 14.5 Rugs & Carpets Mn sq mtrs 10 2.6 105% 2.0 2.0 Particulars UOM Annual Cap
Slide 12: 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 HOME TEXTILE: Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capacity expansion at Vapi and Anjar
Slide 13: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) YoY QoQ YoY Particulars Q3 FY21 Q3 FY20^ Q2 FY21 9M FY21 9M FY20^ FY20 Change Change Change Total Income 20,497 16,049 27.7% 19,926 2.9% 52,511 51,721 1.5% 68,362 EBITDA 4,187 2,389 75.3% 4,048 3.4% 10,616 10,135 4.7% 13,098 EBITDA Margin (%) 20.4% 14.9% 554 bps 2
Slide 14: Quarterly Segment Results
Quarterly Segment Results (₹ Million) (₹ Million) Particulars Q3 FY21 Q3 FY20^ YoY Q2 FY21 QoQ Particulars Q3 FY21 Q3 FY20 YoY Q2 FY21 QoQ Change Change Change Change Home Textile Flooring Revenue 19,672 15,490 27.0% 19,242 2.2% Revenue 977 218 347.9% 772 26.7% EBITDA 4,348 2,947 47.6% 4,215 3.2% EB
Slide 15: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad
Slide 16: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY17 FY18 FY19 FY20 9M FY21 Total Income 67,211 61,318 66,084 68,362 52,511 Growth % 11.8% -8.8% 7.8% 3.4% 1.5% EBITDA 16,639 12,046 11,467 13,098 10,616 EBITDA Margin 24.8% 19.6% 17.4% 19.2% 20.2% Depreciation 5,054 5,042 4,358 4,811 3,394 Finance cost
Slide 17: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec-20 Net Worth 23,971 26,057 27,793 29,721 35,324 Short Term Loans 11,721 12,580 14,080 17,717 16,374 Long Term Loans 21,393 20,228 19,024 16,704 14,633 of which Flooring Debt - - 2,870 6,378 6,799 Gross Debt
Slide 18: Ratios Summary
Ratios Summary FY17 FY18 FY19 FY20 TTM Net Debt/Equity 1.27 1.16 1.09 1.00 0.70 Solvency Net Debt/EBITDA 1.83 2.51 2.64 2.26 1.82 ratios EBIT/Interest 7.32 4.98 4.46 4.66 4.59 Current ratio 1.41 1.42 1.25 1.19 1.36 Fixed asset turnover 1.86 1.80 1.81 1.77 1.87 Total asset turnover 0.91 0.84 0.84 0.8
Slide 19: The ESG way: Encompassing all stakeholders
The ESG way: Encompassing all stakeholders Welspun is going through a major transformation where we are embedding sustainability and circularity in every realm of our value chain. Environmental Social Governance We are striving to be the absolute Implemented the ISO 140001 EMS Focus on inclusion
Slide 20: ESG Journey till date & Way Forward
ESG Journey till date & Way Forward … Journey Till Date Featured among Top 100 Sustainable companies in India by ET-Futurescape 100,000+ acres 7,000+ billion 5,5000+ T Co 2 260,000+ trees 85% Landbank of sustainable Liters of water recycled Saved annually through Planted for improving Carton usage w
Slide 21: Sustainability targets
Sustainability targets Aspects 2015-16 2018-19 Goal 2022 Goal 2025 Goal 2030 YTD Dec 20 Carbon Neutral 0% 10% RE 20% RE 50% RE 100% RE 7% 100% Sustainable RM - Cotton 11% 23% 35% 50% 100% 29% Fresh Water Positive 78 KL/ MT 18 KL/ MT 10 KL/MT 5 KL/MT 0 10 KL/MT Zero waste out of site 1,342 MT 1,019 M
Slide 22: Share Holding Summary
Share Holding Summary Shareholding Pattern (Dec 2020) Top Institutional Shareholders Promoter Group 70% DSP Mutual Fund FIIS 6% L&T Mutual Mund Mutual Funds/AIF 5% Aditya Birla Mutual Fund Banks and Insurance Co’s 2% LIC of India Public 17% Vanguard Dimensional State Street welspunindia.com 21
Slide 23: 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 24: Let's connect
Let’s connect For further details please contact Mr. Sanjeev Sancheti Mr. Vipul Garg President (Finance) & CFO Group Finance & Strategy (Investor Relations) Welspun India Limited Welspun India Limited sanjeev_sancheti@welspun.com vipul_garg@welspun.com welspunindia.com TheWelspunGroup welspungroup
Slide 25: Annexure
Annexure
Slide 26: Brands – Evolving into a dominant retail player
Brands – Evolving into a dominant retail player Back Owned Brands Brand Presence India Global Brand Presence: SPACES 2,300+ outlets | 200+ shop-in-shops | 400+ cities Brand Presence: WELSPUN 3,600+ outlets | 50+ distributors | 57+ cities Brands Highlights Licensed Brands SPACES 2nd most famo
Slide 27: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth Back Project WAVE Accelerating E-Commerce growth 3 Target Annualized Share (%) $100 Mn+ Geographies in focus 70% 15% - 20% 7% - 10% Target Revenue by FY23 US UK India US UK India Ecommerce Build & Grow Robust Supply Strong Technology Right Channel
Slide 28: E-Commerce – (Contd.)
E-Commerce – (Contd.) Back Value Earth Friendly Health & Wellness Fashion Luxury Growth platforms Digital Marketing Sharp Product Marketplaces, D2C, Omni and Activation Assortment Capabilities Organization & People Brilliant Basics Analytics led control tower Up skilling & Talent acquisition M
Slide 29: Innovation – Our strong suite
Innovation – Our strong suite Back 30 Unique patents Key Innovations Other Innovations ORGANIC Filed globally HYGROCOTTON Led to softer Towels, fluffier after wash, Unique mechanism that provides and temperature regulating sheets. wrinkle resist properties inherent to W I NNE R the product CLARIVA