Welspun Corp Limited · NSE:WELCORP
Welspun — Investor Presentation (February 2018)
25 slides from Welspun's investor presentation, February 2018
Slide 1: World's Leading Line Pipe Manufacturer
Welspun Corp Ltd (WCL) World’s Leading Line Pipe Manufacturer Investor Presentation February 2018
Slide 2: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Welspun Corp Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securit
Slide 3: Group Revenue, Market Cap, Employees
Group Revenue Market Cap Employees US$ 2.3 Billion US$ 2 Billion 25,000+ Infrastructure Global Leader in Global Leader in Oil & Gas Home Textiles Large Diameter Pipes Financial Services
Slide 4: World's Leading Line Pipe Manufacturer
WORLD’S LEADING LINE PIPE MANUFACTURER... ...focussed on midstream segment of Oil & Gas industry value chain Upstream Midstream Downstream Exploration / Production Transportation Distribution / Retail Sale ...and Water transmission value chain Line pipes are used for transporting oil, gas or water o
Slide 5: Emerged to Become Leader
EMERGED TO BECOME LEADER Commercialised CWC plant (set-up in 2016 in JV with 350 KTPA LSAW mill at Wasco) Anjar 300 KTPA HSAW mill at Saudi Arabia 350 KTPA HSAW mill at Arkansas, Won 1,700 KM US Keystone project from Trans Canada 4th year of >1mn MT volumes; order book at First 50 KTPA
Slide 6: Key Strengths
KEY STRENGTHS End-to-end products & Advanced Focus on R&D and solutions technological prowess pipeline technology Diversified global Expertise in complex Partnerships with presence projects global giants Experienced professional team
Slide 7: End-to-End Products & Solutions
END-TO-END PRODUCTS & SOLUTIONS HSAW Pipes ERW/HFIW Pipes Helically welded pipes made High-frequency electric welded from HR coils; used for on- pipes made from HR coils; used shore oil, gas & water for downstream distribution of oil, transmission gas & water 24 – 140 inch diameter, 1.5 – 16
Slide 8: Concrete Weight Coating Plant
CONCRETE WEIGHT COATING PLANT Salient features • Pipe diameter/ length : 8”-56” / 9 – 18 mtr • Wall thickness: upto 38 mm • Concrete application method: Impingement • Maximum bare/ coated pipe weight: 15/ 40 MT • Concrete thickness: 30mm – 150 mm in single pass • PLC Controlled Batching Plant to ens
Slide 9: Advanced Technological Prowess
ADVANCED TECHNOLOGICAL PROWESS Efficient Robotic Systems Highly Automated Plant Process Line Integrated Pipe Traceability System Precision Dimensional Control
Slide 10: Focus on R&D and Pipeline Technology
FOCUS ON R&D AND PIPELINE TECHNOLOGY Technical Experience of delivering pipe with stringent specifications gives us the edge knowhow for prestigious and challenging projects like Keystone Pipeline, Peru LNG, with optimal Wasit Gas Program, Independence Trail, IGAT-IV, Master Gas - I solutions Fully
Slide 11: Diversified Global Presence
DIVERSIFIED GLOBAL PRESENCE AMERICAS EUROPE & CIS Canada Russia Czech Rep. Spain USA Iraq China SOUTH MENA Qatar EAST ASIA Bahamas Algeria UAE Egypt Bangladesh AND Mexico Saudi Oman India AUSTRALIA Trinidad & Tobago Sudan Venezuela Thailand Nigeria DOMESTIC Malaysia Colombia Indonesia Peru Bolivia P
Slide 12: Expertise in Complex Projects
Expertise in complex projects Independence Trail IGAT- IV 233 Kms, 24” deep sea gas 100 Kms, 56” of high pressure gas transmission pipeline in Gulf of Mexico Deepest Heaviest transmission pipeline in Persian Gulf Complexity: High collapse resistance Complexity: Large diameter high wall thickness, X7
Slide 13: Partnership with Global Giants
PARTNERSHIP WITH GLOBAL GIANTS Oil & gas Transportation Others Well established customer relationships across the value chain
Slide 14: Modern Manufacturing Facilities
MODERN MANUFACTURING FACILITIES Port based facilities Best in class & proven equipment & practices All major certifications/ accreditations including API5L, OHSAS:18001, ISO:9001, ISO:14001, ISO:17025 (NABL) In-house capabilities to manufacture critical technology sensitive equipment Aerial view of
Slide 15: Adequate Capacities for Growth
ADEQUATE CAPACITIES FOR GROWTH US Facility Saudi Facility India Facility Products (KMT) US Saudi Arabia India LSAW - - 700 HSAW 350 300 700 ERW/ HFIW 175 - 200 Coating Systems Plate & Coils 1,500 Pipe capacity is 2.4 mn MT; Plate & Coil capacity is 1.5 mn MT
Slide 16: 9M FY18 Highlights
PIPES AND PLATES 9M FY18 HIGHLIGHTS
Slide 17: Performance Highlights 9M FY18
PERFORMANCE HIGHLIGHTS 9MFY18 135 Cr 135 Cr 135 Cr Rs. 59,284 mn 49% YoY 788* KMT 58% YoY Rs. 6,568 mn 53% YoY Operating Profit Operating Profit Operating Profit Income from Operations Pipe sales volume EBIDTA 135 Cr Rs. 135 Rs. 1,628 mn Cr 3,890 135 mn Rs. vs. Rs (470) mn YoY 6,421Cr mn 53% YoY vs.
Slide 18: 9M FY18 Operating Performance
9M FY18 OPERATING PERFORMANCE Pipe production EBITDA/Ton for Pipes (KMT) (Rs. ‘000) 752 7.0 6.3 551 9MFY17 9MFY18 9MFY17 9MFY18 Pipe sales Plate/ Coils production (KMT) (KMT) 788 297 500 192 9MFY17 9MFY18 9MFY17 9MFY18 Note: All numbers on this page excludes JV operations – Saudi Arabia, unless spec
Slide 19: Sales Volume Break-up
SALES VOLUME BREAK-UP 9M FY18 Pipe Sales Volume : 830 KMT (including Saudi Arabia operations) 13% 5% 22% 43% 44% 73% LSAW HSAW ERW India US KSA Sales by Type Sales by Plant Note: All numbers on this page includes all JV operations – Saudi Arabia
Slide 20: Healthy Balance Sheet to Support Growth
HEALTHY BALANCE SHEET TO SUPPORT GROWTH Gross debt as on 31 December 2017 was down Rs 1,606 mn Q-o-Q; Net debt was down Rs 3,624 mn Q-o-Q Rs mn Q3 FY17 Q2 FY18 Q3 FY18 Gross Debt 22,619 14,489 12,883 Cash & Equivalent 10,494 4,445 6,463 Net Debt 12,125 10,045 6,421 Current Ratio 1.46x 1.31x 1.40x
Slide 21: Net Working Capital Under Control
NET WORKING CAPITAL UNDER CONTROL IND AS Basis 51 48 36 Days Days Days 115 98 83 71 50 47 Inventory Debtors Creditors 83 113 133 Q3FY17 Q2FY18 Q3FY18 FY18 cash conversion cycle is expected in the region of 50-55 days *Includes Debtors + Inventory – Creditors
Slide 22: Orderbook Analysis
ORDERBOOK ANALYSIS (including Saudi Arabia operations) Buoyancy across major markets has led to historical high Orderbook Order book by Region Order book by Type (KMT) (KMT) 1,279 1,279 141 457 797 797 661 661 85 935 329 210 517 410 359 493 359 160 186 301 94 142 92 203 Q3FY17 Q2FY18 Q3FY18 Q3FY17 Q
Slide 23: Outlook
OUTLOOK FY18 YTD More than 1.5 million MTs of new orders booked leading to historical high orderbook Order booking has been wide-spread across all major markets – Americas, MENA and India Based on the expected sales-mix for the year we had indicated earlier that H2 profitability will be relati
Slide 24: Profit & Loss
PROFIT & LOSS Rs mn 9M FY17 9M FY18 Income from operations 39,660 59,284 EBIDTA 4,304 6,568 Depreciation/Amortization 2,942 2,886 Finance Cost 1,723 1,442 Profit before tax and share of JVs (361) 2,240 Tax (274) 32 Non-Controlling interest (115) (22) Share of Profit/ (Loss) from JVs (498) (602) Net
Slide 25: Thank You
THANK YOU Welspun Corp Limited CIN: L27100GJ1995PLC025609 Mr. Deepak Khetan deepak_khetan@welspun.com +91-2266136584 Mr. Harish Venkateswaran harish_venkateswaran@welspun.com www.welspuncorp.com