Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Investor Presentation (November 2017)
39 slides from Welspun Enterprises's investor presentation, November 2017
Slide 1: Welspun Enterprises Ltd Investor Presentation
WELSPUN ENTERPRISES LTD INVESTOR PRESENTATION November 2017 INFRASTRUCTURE OIL & GAS FINANCIAL SERVICES 1
Slide 2: 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 3: Global Leader in Home Textiles and Large Diameter Pipes
Infrastructure Global Leader in Global Leader in Oil & Gas Home Textiles Large Diameter Pipes Financial Services Group Revenue Market Cap Employees US$ 2.3 Billion US$ 2 Billion 25,000+ 3
Slide 4: Agenda
1. Company Overview 2. Infrastructure i. HAM ii. BOT 3. Oil & Gas AGENDA 4. Financial Services 5. Corporate Social Value 6. Financials 7. Way Forward 8. Key Highlights 4
Slide 5: Welspun Enterprises (WEL): Overview
WELSPUN ENTERPRISES (WEL): OVERVIEW Unique position with diverse initiatives Robust HAM Portfolio In Sunrise Sectors of Rs. 41+ Billion 4 projects; 120+ kms Six completed BOT (Toll) Road projects Oil & Gas with 500+ km Partnership with Adani Group on 5 blocks Among the very few infra developers in I
Slide 6: Equity Snapshot
EQUITY SNAPSHOT Shareholding Pattern (as on 30th Sept 2017) Market Cap (Rs. Million) 21,055 43.83% 44.63% Promoter 16,305 Management FIIs 12,313 Banks and Insurance Cos 10,518 Public 31 Dec 16 31 Mar 17 30 June 17 30 Sep 17 7.50% 3.23% 0.81% Market Statistics Creating Shareholder value Share Buyback
Slide 7: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Chairman Sandeep Garg, Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen • Harvard Graduate with 30+ years experience in diverse roles in infrastructure • Ranked amongst India’s Most Pow
Slide 8: Diverse Portfolio in High-Potential Sectors
DIVERSE PORTFOLIO IN HIGH-POTENTIAL SECTORS WELSPUN ENTERPRISES LTD INFRASTRUCTURE OIL & GAS^ FINANCIAL SERVICES 4 HAM Projects 6 BOT Projects 5 Active O&G Blocks NBFC Under construction Operational Discovered Applied for -Delhi Meerut Expressway Highways: - B-9 cluster (DSF) License to RBI (70% com
Slide 9: Infrastructure
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INFRASTRUCTURE
Slide 10: Hybrid Annuity Model (HAM) Overview
HYBRID ANNUITY MODEL (HAM) OVERVIEW Award criterion: Lowest NPV value based on Construction Returns to Concessionaire on Capital Arranged cost and O&M cost, quoted by the bidders - Annuity payments (biannually) till end of concession period as per predetermined schedule - Interest payments (on reduc
Slide 11: WEL: Asset Light Approach to Infrastructure
WEL: ASSET LIGHT APPROACH TO INFRASTRUCTURE 1 2 3 4 Bid for differentiated Achieve early Award construction to Rigorous project HAM projects financial closure best suited sub- monitoring & contractor supervision • Lower competition • Strong Balance Sheet • Ensure reasonable EPC • Achieve early compl
Slide 12: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building HAM portfolio through bid / buy strategy for profitable growth Current order book at ~Rs. 35 Billion As on Mar-15 As on Mar-16 As on Sep-17 EPC of HAM: NIL Other EPC: 0.95 bn EPC of HAM: 7.72 bn Other EPC: 0.35 bn EPC of HAM Projects EPC of
Slide 13: Execution Picking Up
EXECUTION PICKING UP Current revenue contributed mainly by Delhi-Meerut Expressway Package-1 HAM project Recently added HAM projects expected to contribute significantly from Q4FY18 Infrastructure Revenues and EBIT (Rs. Million) 3,517 EPC of HAM Others EBIT 2,107 522 331 184 (162) H1FY17 H2FY17 H1FY
Slide 14: Infrastructure Projects
INFRASTRUCTURE PROJECTS HAM PROJECTS BOT PROJECTS Delhi-Meerut Expressway (Pkg 1) Dewas - Bhopal Dewas Water Stake: 100% Stake: 13% Stake: 100% Authority: NHAI Authority: MPRDC Authority: MPSIDC Status: Under Construction 1 Status: Operational Status: Operational* Aunta-Simaria Himmatnagar Bypass Ho
Slide 15: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: Six-laning of Delhi – Meerut Expressway & four- PROJECT DETAILS laning either side from km 0.000 to existing km 8.360 of NH- Project Length (Kms) 8.716 Km 24 in the State of Delhi Award Date Jan 2016 Status: Under Construction; 70% completed within 11
Slide 16: NHAI Appreciation for Speedy Progress
1 NHAI APPRECIATION FOR SPEEDY PROGRESS 16
Slide 17: NHAI Appreciation for Social Responsibility
1 NHAI APPRECIATION FOR SOCIAL RESPONSIBILITY WEL’s Green Initiatives at DME appreciated by NHAI : • Vertical Garden developed along the entire bridge • Electrification through Solar Power 17
Slide 18: HAM: Aunta-Simaria (Ganga Bridge with Approach Roads)
2 HAM: AUNTA-SIMARIA (Ganga Bridge with Approach Roads) Scope: Six- Laning from Aunta-Simaria (Ganga Bridge with PROJECT DETAILS Approach Roads) Section from km 197.900 to km 206.050 of Project Length (Kms) 8.15 Km NH-31 in the State of Bihar Award Date Aug 2017 Status: Received Letter of Award; Fin
Slide 19: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
3 HAM: CHUTMALPUR-GANESHPUR & ROORKEE-CHUTMALPUR-GAGALHERI Scope: 4-Laning of Chutmalpur-Ganeshpur section of NH- PROJECT DETAILS 72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 in Project Length (Kms) 53.3 Km UP & Uttarakhand Acquisition Date* Sep 2017 Status: Financial closure completed; docum
Slide 20: HAM: Gagalheri-Saharanpur-Yamunanagar
4 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS (UP/Haryana Border) section of NH-73 Project Length (Kms) 51.5 Km Status: Financial closure completed; documents under Acquisition Date* Sep 2017 review by NHAI. Appointed date awaited Financi
Slide 21: Expertise of Managing BOT Projects
EXPERTISE OF MANAGING BOT PROJECTS Experience of successfully operating more than 500+ kms of roads WEL currently operates 5 infrastructure projects on BOT basis (Rs. Mn) Value on Debt on Concession Sector Project Name Location books books COD End (March-17) (March-17) Himmatnagar Bypass Gujarat 22
Slide 22: Update on BOT Projects – Outstanding Matters
UPDATE ON BOT PROJECTS – OUTSTANDING MATTERS Dewas Water – Modified Project Project being modified under the Madhya Pradesh Swiss Challenge Guidelines Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas Source of water ~ 7 km from Dewas as aga
Slide 23: Oil & Gas
/ WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY OIL & GAS
Slide 24: Oil & Gas – Active Blocks Summary
OIL & GAS – ACTIVE BLOCKS SUMMARY Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle AWEL WEL Effective Block Name Location Status Stake Stake Right to Farm-out 55% ownership to ONGC for Phase II; Mumbai MB-OSN-2005/2 100% 35% ONGC’s board has a
Slide 25: Financial Services
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIAL SERVICES
Slide 26: Foray into NBFC Space
FORAY INTO NBFC SPACE Applied for NBFC License under subsidiary- Welspun Financial Services Limited(WFSL) WEL to hold 60% stake and 40% by the Welspun Promoter group In discussions to get an experienced team of professionals as management/partners Partner might invest own funds and hold a minority s
Slide 27: Corporate Social Value
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY CORPORATE SOCIAL VALUE
Slide 28: Welspun Group Initiatives
WELSPUN GROUP INITIATIVES Empowerment • Education at Govt. Schools • Adult Literacy Education for women • Vocation Centers: 8 centers have resulted in INR 13mn earnings for women Education • Walmart’s SWASTI foundation for Women Empowerment and Training: Successfully trained 2,335 women in foundatio
Slide 29: Welspun Enterprises Initiatives
WELSPUN ENTERPRISES INITIATIVES Working with communities through diverse social interventions to secure stable & sustainable futures Community Healthcare Potable Water Supply Promoting Education Initiatives Initiatives Initiatives Weekly health check-up camps Distribution of Potable Water Prov
Slide 30: Financials
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 31: Income Statement Snapshot - Standalone
INCOME STATEMENT SNAPSHOT - STANDALONE Standalone Rs. Million Income Statement YoY YoY Snapshot Q2 FY18 Q2 FY17 H1 FY18 H1 FY17 Growth Growth Total Income 1,708 526 224% 4,005 1,162 245% EBITDA 341 36 839% 706 276 156% EBITDA margin 20.0% 6.9% 17.6% 23.7% PBT Before Exceptional 275 (21) 562 154 266%
Slide 32: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Standalone Balance Sheet Snapshot (Rs. Million) 30th Sept 2017 31st Mar 2017 Net worth 13,998 13,524 Gross Debt 640 801 Cash & Cash Equivalents 9,441 10,663 Net Debt /(Cash) (8,801) (9,862) Other Long Term Liabilities 291 287 Total Net Fixed Assets (incl. CWIP) 72
Slide 33: Income Statement Snapshot - Consolidated
INCOME STATEMENT SNAPSHOT - CONSOLIDATED Consolidated Rs. Million Income Statement YoY H1 YoY Snapshot Q2 FY18 Q2 FY17 H1 FY18 Growth FY17 Growth Total Income 1,928 536 260% 4,360 1,196 264% EBITDA 432 81 436% 862 290 197% EBITDA margin 22.4% 15.1% 19.8% 24.2% PBT Before Exceptional 303 (5) 607 126
Slide 34: Balance Sheet Snapshot - Consolidated
BALANCE SHEET SNAPSHOT - CONSOLIDATED Balance Sheet Snapshot – Consolidated (Rs. Million) 30th Sept 2017 31st Mar 2017 Networth 14,771 12,584 Gross Debt 2,865 1,503 Cash & Cash Equivalents 9,566 10,785 Net Debt /(Cash) (6,701) (9,282) Other Long Term Liabilities 306 288 Total Net Fixed Assets (incl.
Slide 35: Way Forward
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY WAY FORWARD
Slide 36: Way Forward
WAY FORWARD Continue approach of cautious bid/buy strategy to strengthen HAM portfolio Targeting projects where differentiation is possible Assessing Toll-Operate-Transfer (TOT) model Opportunities Explore and develop existing oil & gas blocks Tapping new ground in the financial services sector 36
Slide 37: Key Highlights
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY KEY HIGHLIGHTS
Slide 38: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Growth Potential through Diverse Initiatives In Sunrise Sectors Strong Financials with Robust Credit Rating to tap Varied Opportunities Asset light business model in Infra with regular pr
Slide 39: Thank You
THANK YOU For further details, please contact: Harish Venkateswaran AVP - Group Finance and Strategy Email: harish_venkateswaran@welspun.com 39
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