Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q2FY22 Earnings Presentation
33 slides from Welspun Living's earnings presentation, Oct 27, 2021
Slide 1: Regulation 30 disclosure cover letter to stock exchanges
WELSPUN !NOIA HOME TEXTILES WIL/SEC/2021 October 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
Slide 2: Earnings Presentation Q2FY22
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q2FY22 27th Oct 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 08 Half Yearly 09 Operational Highlights 13 Quarterly Segment Results 16 Enhancing Capacity; Catering to Growing Demand 17 Quarterly Profit & Loss 19 Summary
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 We are delighted to share that our markets are continuously showing strong growth and improvement in sentiments, which is leading to strong retail demand and increased consumer spending globally. I am happy to share yet another strong quarterly results, achieving highest quarte
Slide 6: Awards & Recognition
Awards & Recognition TEXPROCIL 1st Indian Company to get US FDA CLARIVATE South and South East nod for 3 ply surgical masks Asia innovation award 2021 STeP-Sustainable Textile Product Greenguard Gold Certification One of the top 100 companies in India for sustainability and CSR 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 Click the I cons to know more R e a d M o re Total Income EBITDA Q2 → up 25.5% YoY at ₹ 25,014 mn Q2 → up 4.7% YoY at ₹ 4,237 mn Featured in ET- Futurescape as one of the H1 → up 47.4% YoY at ₹ 47,282 mn H1 → up 37.4% YoY at ₹ 8,836 mn
Slide 9: Quarterly Highlights
Quarterly Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 25,014 4,237 2,832 1,991 3,237 Growth (YoY) 25.5% 4.7% 11.6% 10.8% 1.8% Growth (QoQ) 17.9%* 19.4%* 35.6%* 38.2%* 6.8%* Margin (%) (y-o-y) 17.0% 11.3% 8.0% Margin Expansion/Contraction (y-o-y) -337 Bps -141 Bps -106 Bps EPS/CEPS 2.01
Slide 10: Half Yearly Highlights
Half Yearly Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 47,282 8,836 5,970 4,166 6,405 Growth (YoY) 47.4% 37.4% 75.6% 82.1% 32.7% Margin (%) (y-o-y) 18.7% 12.6% 8.8% Margin Expansion/Contraction (y-o-y) -135 Bps 203 Bps 170 Bps EPS/CEPS 4.18 6.48 Note: 1. Prior period figures are resta
Slide 11: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) (₹ Million) Particulars 30-Sep-21 30-Sep-20 30-Jun-21 ROE ROCE (In %) (In %) 20.0 20 Net Worth 37,917 33,195 38,471 15.0 15 10.0 10 Short Term Loans 18,704 14,181 17,956 18.4 16.8 10.4 16.4 18.9 13.4 5.0 5 Long Term Loans 12,348 15,608 11,774 0.0 0 Q2FY22 Q2FY21 Q1FY22 Q
Slide 12: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.) (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q2FY22 5,731 11,956 1,153 1,404 1,244 53 861 Sales Contribution (%) 26% 53% 5% 6% 6% 0% 4% Q1FY22 5,529 9,465 934 908 1,579 45 464 Sales Contribution (%) 29
Slide 13: 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 Q2FY22 16,855 1,958 1,456 674 1,310 147 Sales Contribution (%) 75% 9% 7% 3% 6% 1% Q1FY22 14,297 1,918 954 625 1,006 126 Sales Contr
Slide 14: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q2FY22 Q1FY22 Q2FY21 Capacity (%) (%) (%) Home Bath Linen MT 85,400 19,769 95% 19,179 95% 17,656 91% Textile Bed Linen Mn mtrs 90 23.9 100% 21.8 97% 21.2 94% Rugs & Carp
Slide 15: Operational highlights (Half Yearly)
Operational highlights (Half Yearly) Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM H1FY22 H1FY21 Capacity (%) (%) Home Textile Bath Linen MT 85,400 38,948 92% 30,095 71% Bed Linen Mn mtrs 90 45 100% 35.2 78% Rugs & Carpets Mn sq mtrs 10.8 5.4 100% 2.9 54% Annual
Slide 16: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) Particulars Q2 FY22 Q2 FY21 YoY Change H1FY22 H1FY21 YoY Change Total Income 25,014 19,926 25.5% 47,282 32,086 47.4% EBITDA 4,237 4,048 4.7% 8,836 6,429 37.4% EBITDA Margin (%) 16.9% 20.3% -337 bps 18.7% 20.0% -135 bps Finance Cost 353 362 -2.5% 842 774 8.7% Depre
Slide 17: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ YoY Segmentation (%) Particulars Q2 FY22 Q2 FY21 Q1 FY22 H1FY22 H1FY21 Change Change* Change Home Textile Revenue 23,749 19,242 23% 21,284 17.4% 45,032 31,088 45% Q2 FY22 EBITDA 4,135 4,215 -2% 4,805 10.1% 8,940 6,828 31% EBITDA Margin (%) 17.4%
Slide 18: Enhancing capacity; catering to growing demand
Enhancing capacity; catering to growing demand HOME TEXTILE: Capacity expansion at Vapi and Anjar Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products underway Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to thi
Slide 19: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 18
Slide 20: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 H1FY22 Total Income 61,318 66,084 68,362 74,080 47,282 Growth % -8.8% 7.8% 3.4% 8.4% 47.4% EBITDA 12,046 11,467 13,098 14,198 8,836 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 18.7% Depreciation 5,042 4,358 4,811 4,536 2,023 Finance cost 1,
Slide 21: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 Net Worth 26,057 27,793 29,721 36,447 37,917 Short Term Loans 12,580 14,080 17,717 17,452 18,704 Long Term Loans 20,228 19,024 16,704 10,962 12,348 of which Flooring Debt - 2,870 6,378 7,112 7,634 Gross D
Slide 22: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 Q2FY22 Net Debt/Equity 1.16 1.09 1.00 0.64 0.67 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.53 ratios EBIT/Interest 4.98 4.46 4.66 4.89 6.02 Current ratio 1.42 1.25 1.19 1.33 1.34 Fixed asset turnover 1.80 1.81 1.77 1.93 2.25 Total asset turnover 0.84 0.84 0.81
Slide 23: 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 24: ESG Journey till date…
ESG Journey till date… Featured among Top 100 Sustainable companies in India by ET-Futurescape Journey Till Date 100,000+ acres 2,240 million 1,825 MWh ofelectricity 55% 4,312 tons Landbank of sustainable Liters of water recycled in Saved through energy Of cotton from sustainable Recycled cotton reu
Slide 25: Sustainability targets
Sustainability targets Aspects Q2FY22 Goal 2025 Goal 2030 Key Highlights of Q1FY22 Projects Under consideration: Solar PV on STP pumping stations (1MW), Floating solar PV @ Anjar (11MW) Carbon Neutral WIP 20% RE 100% RE Increase use of wood briquettes, Rice Husks and ETP dried (measured as % RE) slu
Slide 26: Share Holding Summary
Share Holding Summary Shareholding Pattern (Sep 2021) Top Institutional Shareholders Promoter Group 70% DSP Mutual Fund FPIs 7% L&T Mutual Fund Mutual Funds/AIF 5% Aditya Birla Sunlife MF Insurance Co’s 2% LIC of India Public 16% welspunindia.com 25
Slide 27: 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 28: 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 29: Annexure
Annexure
Slide 30: 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 Brand Presence: WELSPUN 5,200+ outlets | 100+ cities & towns Brands Highlights Licensed Brands SPACES No 1 brand in shop-in-shops India Glo
Slide 31: 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 32: 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 33: Innovation – Our strong suite
Innovation – Our strong suite Back 32 Unique patents Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain WI NNE R Patented spinning technology makes towel platform for state-of-the-art transparency for CLARIVATE SOUTH AND softer loftier and sheet te