Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q1 FY21 Earnings Presentation
42 slides from Welspun Living's earnings presentation, Jul 24, 2020
Slide 1: Exchange filing cover letter under Regulation 30
WIL/SEC/2020 July 24, 2020 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: Welspun India Ltd Investor Presentation July 2020
WELSPUN INDIA LTD Investor Presentation July 2020
Slide 3: Response to COVID-19
Response to COVID-19 Digital QR Code 2
Slide 4: Swiftly restarting our operations with all safety protocols
Swiftly restarting our operations with all safety protocols Advantages of our vertically integrated facilities Taking care of Health and Safety of workforce • Vertically integrated / Composite mill • Provision of all the essential items • Worker’s colony in factory vicinity and PPE’s • Cotton wareho
Slide 5: Keeping extended Welspun family & neighbourhood Safe, Healthy and Motivated
Keeping extended Welspun family & neighbourhood Safe, Healthy and Motivated Medical services for Welspun employees, their families & neighbourhood AI based robotic consultancy, virtually connecting with Hospital tie ups, COVID Arrangement of 100+ Isolation specialist doctor Committee, Awareness driv
Slide 6: Q1 FY21 Financial Performance
Q1 FY21 Financial Performance 5
Slide 7: Key Highlights – Q1 FY21
Key Highlights – Q1 FY21 1st company in India to Domestic E-Commerce Spaces.com doubled get BIS quality business grew by 29% YoY its sales YoY and certification for the & global E-commerce Christy E-Commerce disposable coverall business grew by 100%+ grew by 70%+ YoY Strategic arrangement Spaces bec
Slide 8: Financial Performance – Q1 FY21
Financial Performance – Q1 FY21 (Rs. Million) YoY QoQ YoY Particulars Q1 FY21 Q1 FY20 Q4 FY20 FY20 FY19 Change Change Change Total Income 12,160 17,363 (30.0%) 16,645 (26.9%) 68,362 66,084 3.4% EBITDA 2,381 3,712 (35.9%) 2,963 (19.6%) 13,098 11,467 14.2% EBITDA Margin (%) 19.6% 21.4% (180 bps) 17.8%
Slide 9: Segment Results – Q1 FY21
Segment Results – Q1 FY21 (Rs. Million) YoY QoQ YoY Particulars Q1 FY21 Q1 FY20 Q4 FY20 FY20 FY19 Change Change Change Home Textile Revenue 11,846 17,178 (31.0%) 15,845 (25.2%) 66,633 65,137 2.3% EBITDA 2,613 3,795 (31.1%) 3,767 (30.6%) 14,692 11,278 30.3% EBITDA Margin (%) 22.1% 22.1% (3 bps) 23.8%
Slide 10: Financial Performance Trend
Financial Performance Trend (Rs. Million) Particulars FY17 FY18 FY19 FY20 Q1 FY21 Total Income 67,211 61,318 66,084 68,362 12,160 Growth % 11.8% -8.8% 7.8% 3.4% (30.0%) EBITDA 16,639 12,046 11,467 13,098 2,381 EBITDA Margin 24.8% 19.6% 17.4% 19.2% 19.6% Depreciation 5,054 5,042 4,358 4,811 1,106 Fin
Slide 11: Balance Sheet Trend
Balance Sheet Trend (Rs. Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 30-June-20 Net Worth 23,971 26,057 27,793 29,721 30,698 Short Term Loans 11,721 12,580 14,080 17,717 16,315 Long Term Loans 21,393 20,228 19,024 16,704 9,368 of which Flooring Debt - - 2,870 6,378 6,774 Gross Debt
Slide 12: Financial Ratio Trend
Financial Ratio Trend FY17 FY18 FY19 FY20 TTM Net Debt/Equity 1.27 1.16 1.09 1.00 0.86 Solvency ratios Net Debt/EBITDA 1.83 2.51 2.64 2.26 2.25 EBIT/Interest 7.32 4.98 4.46 4.66 3.83 Current ratio 1.41 1.42 1.25 1.19 1.22 Fixed asset turnover 1.86 1.80 1.81 1.77 1.62 Total asset turnover 0.91 0.84 0
Slide 13: Focus on Free Cash Flow
Focus on Free Cash Flow 3,770 2,405 2,240 Rs. in Millions 1,574 907 859 785 786 787 FCF 773 Dividend FY16 FY17 FY18 FY19 FY20 FCF positive and utilized for dividend payout 12
Slide 14: Trend of Financial Performance
Trend of Financial Performance TOTAL INCOME EBITDA CAGR 9% CAGR 11% 67,211 66,084 68,362 16,831 16,639 60,143 61,318 54,924 13,691 12,046 11,467 13,098 Rs. million Rs. million 44,772 10,253 36,965 6,438 12,160 2,381 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Q1FY21 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 15: Dividend Policy
Dividend Policy Board approved dividend distribution policy Consistent track record 25% of Standalone PAT to be the total payout of dividend distribution (incl. dividend tax if any) Period Standalone EPS DPS Dividend Tax Per Share Payout Percentage FY15 5.09 1.05 0.21 25% FY16 5.99 1.30 0.26 26% FY1
Slide 16: Capital Allocation Strategy
Capital Allocation Strategy It has been our endeavor to allocate capital efficiently in order to enhance stakeholder value. Hence over the last few years our net debt has reduced, even though we have added capacities in various businesses, including our investment in the flooring business. Our strat
Slide 17: Shareholding and Trading Snapshot
Shareholding and Trading Snapshot 17.7% Promoter 2.2% FIIs Shareholding Pattern 6.2% 68.9% Mutual Funds / AIF As on June 30, 2020 5.0% Banks and Insurance Cos Public As on July 23, 2020 INR USD Price per share 34.35 0.46 Market Statistics No of shares outstanding (Mn) 1,005 Market capitalization (Mn
Slide 18: Corporate Overview
Corporate Overview Digital QR Code 17
Slide 19: Welspun Group – Global Conglomerate
Welspun Group – Global Conglomerate Global Leader Leading in Large Warehousing Diameter Pipes player Global Leader Infrastructure, in Home Investments in Textiles Oil & Gas Group Revenue Fixed Asset Base Net Debt / EBITDA Employees US$ 2.7Billion US$ 1.1Billion 0.8 x 25,000+
Slide 20: Global Home Textile leader
Vertically Integrated Thought leader Facilities in Home Presence in 50+ countries with DC’s in North America, $1 Bn Europe and Asia 30 Patents Global Home Textile leader Trusted Partner Ranked #1 Among Home Textile Preferred Supplier to Suppliers to USA Top Global Retail giants & 5 Times in Hospital
Slide 21: Welspun India: Growth Drivers
Welspun India: Growth Drivers 1 2 3 4 5 Innovation New Channels / Brands Sustainability New Products Markets 20
Slide 22: Increasing Share of Innovative Products
Increasing Share of Innovative Products • 15 successful years of Hygrocotton 41% 41% • Contributing $1bn in FOB sales 37% 38% of Sales from ® 34% 36% 30% Innovative • Gaining traction in hospitality & Products domestic market • Patented construction provides superior allergy protection 30 FY15 FY16
Slide 23: WEL-TRAK: Patented Global Cotton Integrity Solution
WEL-TRAK : Patented Global Cotton Integrity Solution Welspun’s patented Wel-Trak® process, supplemented by scientific traceability from Oritain™ is now the industry defining end-to-end fiber tracking process Dedicated Ginning Spinning Weaving Finishing Cut & Sew Pack & Ship Retail Suppliers of Cotto
Slide 24: Diversified Brand & Licensed Portfolio
Diversified Brand & Licensed Portfolio India UK/Europe North America Online Dual Brand Strategy Christy as Digital brand (Premium) (Luxury) Sustainability & Own LIVING Empowerment LIVING by Christy (Mass) by Christy Innovations Licenses Branded products contributed to ~ 20% revenues in FY20 Global B
Slide 25: Premium Brand: Spaces
Premium Brand: Spaces Focus on Tapping Domestic Market Potential Unique campaign called #SafeSPACES to make people • Spaces is 2nd most famous brand in premium category feel comfortable and at peace in India – One of the fastest growing economies in their homes amid COVID-19 the world with huge pote
Slide 26: Value Brand: Welspun
Value Brand: Welspun Aiming to be “Har Ghar Welspun” Campaign starring Amitabh Bachchan Outdoor Advertising Towel Hygiene Campaign Educating people about personal hygiene & role of towel ‘Welspun’ brand has catapulted to nd 2 position in value segment* https://www.youtube.com/watch?v=_aVUdYzpPog Fes
Slide 27: Leveraging consumer insights to accelerate innovation
2,500 + strong and growing daily Real-time “chat” on a social media-like platform, with results segmented across various demographics FAMILY-FIRST CONNECTION. Welspun is creating and maintaining a community that we interact with regularly to help guide our decision-making with regard to product deve
Slide 28: Sustainability woven in Value Chain
Sustainability woven in Value Chain Sourcing of Raw Materials Recycling / Upcycling Sustainable Sourcing Farming Projects Organic Recycled Cotton Cotton PRODUCTS & Supply Chain & Packaging Manufacturing Process OFFERINGS Zero Fresh Water Usage Ancillarisation Green Cover Reducing Carbon Footprint We
Slide 29: Sustainability Targets
Sustainability Targets Base Goal Goal Goal 2019 2022 2025 2030 Areas Becoming Carbon Neutral 10%RE 20%RE 50%RE 100%RE % Sustainable raw materials 23% 35% 50% 100% Becoming Water 18KL/MT (freshwater) 10KL/MT 5KL/MT 0 Positive Zero waste 1019MT 50% reduction 0 0 to landfill Impacting lives 1,09,787 3,
Slide 30: Inclusive Growth: Corporate Social Value
Inclusive Growth: Corporate Social Value Environment & health Education Building Model Villages Our initiative to improve the Sustainable business quality of education at schools practices, clean water, serves over 160+ schools, improved sanitation and ~317 digital Classroom, development of green sp
Slide 31: Emerging Business: Flooring Solutions
Emerging Business: Flooring Solutions Wide range of flooring products Carpet tiles Broadloom carpets Click n Lock tiles Artificial grass Welspun Flooring One day flooring with company Only company to provided expert installation manufacture both Hard & Soft Flooring under one roof • Facility located
Slide 32: Emerging Business: Advanced Textile
Emerging Business: Advanced Textile Spunlace Wet wipes Cater to medical disposables, hygiene and Tailor made for end applications like Baby Care, cosmetic applications Personal Hygiene, Cosmetics, & Home-care Successfully tested for manufacturing “Made in India” products range gaining traction Aeros
Slide 33: Health & Hygiene foray
Health & Hygiene foray • Leveraging integrated capabilities in woven & non-woven fabrics • National and international certifications on Facilities & Products • Product range : Masks, coveralls, wipes, disposable linen • 1st company in India to get BIS quality certification for the disposable coveral
Slide 34: Ecommerce – Multipronged strategy to drive growth
Ecommerce – Multipronged strategy to drive growth Presence across the spectrum B2B Brand Play Private Label B2C White Label Branded Omni-channel Hospitality Choice Channels Strategic Balanced Portfolio mix Play Levers Categories & Brands Partnerships Target Consumers Profitability – Margins
Slide 35: Vertically Integrated Presence with Significant Capabilities
Vertically Integrated Presence with Significant Capabilities India Supply Advantage Vertically Integrated Facilities Across Manufacturing Chain Cotton Spinning Weaving Processing Cutting & Sewing Logistics Captive Power Current integration of about 70% in Spinning and Weaving Towels, Sheets, TOB, Ca
Slide 36: Global Distribution Network with Marquee Clients
Global Distribution Network with Marquee Clients Warehouses Manufacturing Facility Corp HQ/Marketing Offices Country Served Delivery and Reach in Over 50 Countries 35
Slide 37: Awards & Accolades – Testimony to Excellence
Awards & Accolades – Testimony to Excellence Marketing Sustainability & CSR Marketing Services Sustainability Award “Spaces” (2018) Amongst Top 100 GIGA GURU status from Walmart for Companies in India (2019) Sustainability (2019) Most Influential Women Dipali Goenka Highest Exports Recognized for co
Slide 38: Experienced Board & Management with Proven Track Record
Experienced Board & Management with Proven Track Record Board of Directors Management Team Rajesh Mandawewala, Managing Director; Member of Board B. K. Goenka, Chairman • Qualified Chartered Accountant; Played an instrumental role in establishing Welspun’s Textile & Pipe business • Amongst India’s m
Slide 39: Key Milestones
Key Milestones Revenue (Rs Bn) CAGR 13% 68 61 53 32 Began Operations 3.5 4.5 16 FY 1985 1993 1995 2005 2006 2008 2012 2014 2015 2016 2017 2018 2019 2020 Began the Acquired Christy – Embarked upon Commissioned Established journey in Most prestigious capacity expansion India’s largest industry definin
Slide 40: Global Market Opportunity
Global Market Opportunity Global Home Textile Market US Home Textile Market (2018) Market Composition USD Bn USD Bn $ 0.3 Row CAGR $ 5.0 Cotton Pillowcases 25% 6.6% 242 Other Non-cotton Products $ 1.4 145 Cotton Sheets 80 $ 3.0 US $ 1.6 31% 48 Other Cotton Products Cotton Towels $ 1.0 2017 2025E $ 4
Slide 41: 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 42: Thank You
THANK YOU For further details, please contact Sanjeev Sancheti President (Finance) & CFO Welspun India Limited Email: sanjeev_sancheti@welspun.com Vipul Garg Group Finance & Strategy (Investor Relations) Email: vipul_garg@welspun.com