Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q1 FY22 Earnings Presentation
31 slides from Welspun Living's earnings presentation, Jul 28, 2021
Slide 1: Exchange filing cover letter
WIL/SEC/2021 July 28, 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) (Symbo
Slide 2: Earnings Presentation Q1FY22
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q1FY22 28th July 2021 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 3: Inside this Presentation
Inside this Presentation Executive Summary 03 Management Commentary 04 Awards & Recognition 05 Global Presence 06 Key Highlights 07 Quarterly 11 Operational Highlights 12 Enhancing Capacity; Catering to Growing Demand 13 Quarterly Profit & Loss 14 Quarterly Segment Results 16 Summary of Financial St
Slide 4: Executive Summary
Executive Summary Multipronged Welspun India Ltd (WIL), part of $2.7 bn Welspun Group, is a E-Commerce Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture organization with landscape. With a strong global larger share of the well-defined Diversified Brand & License
Slide 5: Management Commentary
Management Commentary As the world recovers from Covid-19 crisis, we are encouraged to see signs of buoyant consumer demand and increased consumer spending globally, led by the growth in homebody economy. Our dedicated workforce is our backbone which ensured business continuity in light of the curre
Slide 6: Awards & Recognition
Awards & Recognition TEXPROCIL Invitation from Babson College (US) DUN & BRADSTREET Award STeP-Sustainable Textile Product Greenguard Gold Certification SCS Global Zero waste Certificate welspunindia.com 5
Slide 7: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India #1 Ranking In “Top 15 Home Textile Supplier Giants to USA” ROW Over 50 Countries Presence welspunindia.com 6
Slide 8: Key Highlights
Key Highlights Feathers in our cap Brands E-Commerce Innovation V is it W e b s it e Click the I cons to know more R e a d M o re Total Income EBITDA Q1 → up 83% YoY at ₹ 22,272 mn Q1 → up 93% YoY at ₹ 4,598 mn Welspun’s Sustainability journey now a case study on Ivey publishing website Core Busines
Slide 9: Quarterly Highlights
Quarterly Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 22,272 4,598 3,138 2,175 3,168 Growth (YoY) 83.2% 93% 264% 343% 92% Growth (QoQ) 2.5% 28.4% 74.6% 67.2% 47.1% Margin (%) (y-o-y) 20.6% 14.1% 9.8% Margin Expansion/Contraction (y-o-y) 106 Bps 699 Bps 573 Bps EPS/CEPS 2.17 3.15 Note:
Slide 10: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) (₹ Million) Particulars 30-Jun-21 30- Jun-20 31-Mar-21 ROE ROCE (In %) (In %) 20.0 20 Net Worth 38,471 30,698 36,447 15.0 15 Short Term Loans 17,956 16,315 17,452 10.0 10 16.4 18.9 Long Term Loans 11,774 16,142 10,962 10.3 13.8 16.3 5.0 5 12.1 0.0 0 of which Flooring Deb
Slide 11: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q1FY22 5,529 9465 934 908 1579 45 464 Sales Contribution (%) 29% 50% 5% 5% 8% 0% 2% Q1FY21 3,382 6,949 532 633 487 26 152 Sales Contribution (%) 28% 57% 4%
Slide 12: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) (₹ Million) Revenue Textiles Business Other Businesses HT - B2B HT – Branded HT - E-Comm Advanced Textile Flooring – B2B Flooring – Branded Q1FY22 14,297 1918 953 625 1006 126 Sales Contribution (%) 77% 10% 5% 3% 4% 1% Q1FY21 10,134 570 653 582 150 68 Sales Contribution
Slide 13: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q1FY22 Q4FY21 Q1FY21 Capacity (%) (%) (%) Home Bath Linen MT 85,400 19,179 95% 19,951 100% 12,439 62% Textile Bed Linen Mn mtrs 90 21.8 97% 20.2 90% 14.0 62% Rugs & Carp
Slide 14: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand HOME TEXTILE: Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products Capacity expansion at Vapi and Anjar Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand
Slide 15: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) Particulars Q1 FY22 Q1 FY21 YoY Change Q4 FY21 QoQ Change Total Income 22,272 12,160 83.2% 21,736 2.5% EBITDA 4,598 2,381 93.1% 3,582 28.4% EBITDA Margin (%) 20.6% 19.6% 106 bps 16.5% 417 bps Finance Cost 489 412 18.5% 642 (23.9%) Depreciation 972 1,106 (12.1%) 1,
Slide 16: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ Segmentation (%) Particulars Q1 FY22 Q1 FY21 Q4 FY21 Change Change Home Textile Revenue 21,283 11,846 80% 20,523 4% Q1 FY22 EBITDA 4,805 2,613 84% 3,687 30% EBITDA Margin (%) 22.6% 22.1% 52 bps 18.0% 461 bps 94.6% 5.4% Flooring Revenue 1,214 254
Slide 17: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad
Slide 18: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 Q1FY22 Total Income 61,318 66,084 68,362 74,080 22,272 Growth % -8.8% 7.8% 3.4% 8.4% 84.3% EBITDA 12,046 11,467 13,098 14,198 4,598 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 20.6% Depreciation 5,042 4,358 4,811 4,536 972 Finance cost 1,40
Slide 19: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 Net Worth 26,057 27,793 29,721 36,447 38,471 Short Term Loans 12,580 14,080 17,717 17,452 17,956 Long Term Loans 20,228 19,024 16,704 10,962 11,774 of which Flooring Debt - 2,870 6,378 7,112 7,656 Gross D
Slide 20: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 Q1FY22 Net Debt/Equity 1.16 1.09 1.00 0.64 0.58 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.37 ratios EBIT/Interest 4.98 4.46 4.66 4.89 5.86 Current ratio 1.42 1.25 1.19 1.33 1.42 Fixed asset turnover 1.80 1.81 1.77 1.93 2.16 Total asset turnover 0.84 0.84 0.81
Slide 21: The ESG way: Encompassing all stakeholders
The ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through a major transformation where Implemented the ISO 140001 EMS Focus on inclusion and gender Initiated putting in place a broad we are embedding sustainability at both manufacturing sites diversity
Slide 22: ESG Journey till date & Way Forward
ESG Journey till date & Way Forward … Featured among Top 100 Sustainable companies in India by ET-Futurescape Journey Till Date 100,000+ acres 4000+ million 175,697 GJ ofenergy 45% 2,822 tons Landbank of sustainable Liters of water recycled Saved annually through energy Of cotton from sustainable Co
Slide 23: Sustainability targets
Sustainability targets Aspects Q1FY22 Goal 2025 Goal 2030 Key Highlights of Q1FY22 Carbon Neutral -- 20% RE 100% RE Planned installation of 10MW solar plant in FY21-22 (measured as % RE) Sourcing of both Organic Cotton & BCI-cotton has 100% Sustainable Cotton 45% 50% 100% increased (Due to increased
Slide 24: Share Holding Summary
Share Holding Summary Shareholding Pattern (June 2021) Top Institutional Shareholders Promoter Group 70% DSP Mutual Fund FPIs 7% L&T Mutual Fund Mutual Funds/AIF 5% L&T Emerging Business Fund Insurance Co’s 2% LIC of India Public 16% welspunindia.com 23
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 Mr. Lokesh Pareek President (Finance) & CFO (Investor Relations) Welspun India Limited Christensen Advisory sanjay_gupta1@welspun.com Lpareek@christensenir.com Mob: +91-84249 55935 welspunindia.com TheWelspunGroup welspungroup
Slide 27: Annexure
Annexure
Slide 28: 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 | 240+ shop-in-shops | 370+ cities & towns Brand Presence: WELSPUN 4,200+ outlets | 80+ distributors | 80+ cities & towns Brands Highlights Licensed Brands SPACES
Slide 29: 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 30: 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 31: Innovation – Our strong suite
Innovation – Our strong suite Back 32 Unique patents Key Innovations Filed globally HYGROCOTTON WEL-TRAK WI NNE R Patented spinning technology makes towel Patented traceability solution tracking fibre CLARIVATE SOUTH AND softer loftier and sheet temperature from source to finished product. SOUTH E