Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q3 FY22 Earnings Presentation
32 slides from Welspun Living's earnings presentation, Feb 3, 2022
Slide 1: Earnings Presentation Q3 FY22
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q3 FY22 3rd Feb 2022 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 2: Inside this Presentation
Inside this Presentation Executive Summary 03 Management Commentary 04 Awards & Recognition 05 Global Presence 06 Key Highlights 07 9MFY22 Summary 08 Quarterly Summary 09 Operational Highlights 13 Quarterly Segment Results 16 Enhancing Capacity; Catering to Growing Demand 17 Profit & Loss Summary 19
Slide 3: 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 4: Management Commentary
Management Commentary We are delighted to share yet another resilient performance during the quarter despite unprecedented challenges faced by the World at large. Domestic Retail business achieved its highest ever 100 cr+ revenues during the quarter. Our emerging businesses have shown substantial gr
Slide 5: Awards & Recognition
Awards & Recognition Dow Jones Sustainability Index rates Frost & Sullivan and TERI awarded Welspun’s with an ESG score of 48, 62% Welspun’s under 2 categories at the higher than the average industry score Sustainability 4.0 Awards Welspun Group’s new Corporate Ad Won National Water Award 2020 (1st
Slide 6: 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 7: Key Highlights Q3FY22
Key Highlights Q3FY22 Feathers in our cap Brands E-Commerce Innovation Read More Click the I co ns to kno w mo re Total Income EBITDA Q3 → up 19% YoY at ₹ 24,379 mn Q3 → Stood at ₹ 3,305 mn Dipali Goenka: Unstoppable Tycoon 9M → up 36% YoY at ₹ 71,303 mn 9M → up 11% YoY at ₹ 11,781 mn Featured in Bu
Slide 8: 9MFY22 Highlights
9MFY22 Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 71,303 11,781 7,642 5,490 8,786 Growth (YoY) 35.8% 11.0% 30.0% 34.0% 9.2% Margin (%) (y-o-y) 16.5% 10.7% 7.7% Margin Expansion/Contraction (y-o-y) -369 Bps -50 Bps -10 Bps EPS/CEPS 5.52 8.89 Note: 1. Prior period figures are restated w
Slide 9: Quarterly Highlights
Quarterly Highlights Q3FY22 (₹ Million) Revenue EBITDA PBT PAT Cash Profit 24,379 3,305 1,671 1,324 2,739 Growth (YoY) 19.0% -21.0% -33.0% -27.0% -15.0% Growth (QoQ) -2.5% -22.0% -41.0% -33.5% -15.4% Margin (%) (y-o-y) 13.6% 6.9% 5.4% Margin Expansion/Contraction (y-o-y) -687 Bps -529 Bps -339 Bps E
Slide 10: Quarterly Highlights
Quarterly Highlights (₹ Million) Particulars 31-Dec-21 31-Dec-20 30-Sep-21 ROE ROCE (In %) (In %) 20.0 20 Net Worth 39,371 35,324 37,917 15.0 15 10.0 10 Short Term Loans 20,449 16,374 18,704 17.2 15.7 18.4 16.8 14.9 12.9 5.0 5 Long Term Loans 12,130 14,633 12,348 0.0 0 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3
Slide 11: Quarterly Highlights
Quarterly Highlights (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q3FY22 5,102 11,805 1,092 986 1,554 56 1,282 Sales Contribution (%) 23% 54% 5% 5% 7% 0% 6% Q2FY22 5,731 11,956 1,153 1,403 1,244 53 861 Sales Contribution (%) 26% 5
Slide 12: Quarterly Highlights
Quarterly Highlights (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Comm Flooring – B2B Flooring – Branded Textiles Q3FY22 15,814 2,619 1,042 630 1,555 217 Sales Contribution (%) 72% 12% 5% 3% 7% 1% Q2FY22 16,855 1,958 1,456 674 1,310 147 Sales Cont
Slide 13: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q3FY22 Q2FY22 Q3FY21 Capacity (%) (%) (%) Bath Linen MT 85,400 18,387 88% 19,769 95% 20,196 100% Bed Linen Mn mtrs 90 22.3 99% 23.9 100% 22.5 100% Home Rugs & Carpets Mn
Slide 14: Operational highlights (9MFY22)
Operational highlights (9MFY22) Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM 9MFY22 9MFY21 Capacity (%) (%) Bath Linen MT 85,400 57,335 90% 50,379 79% Bed Linen Mn mtrs 90 67.3 100% 54.1 80% Home Textile Rugs & Carpets Mn sq mtrs 12 7.5 83% 5.5 61% Advanced Tex
Slide 15: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) Particulars Q3 FY22 Q3 FY21 YoY Change 9M FY22 9M FY21 YoY Change Total Income 24,379 20,497 18.9% 71,303 52,511 35.8% EBITDA 3,305 4,187 -21.1% 11,781 10,616 11.0% EBITDA Margin (%) 13.6% 20.4% -687 bps 16.5% 20.2% -369 bps Finance Cost 208 559 -62.8% 1,050 1,333
Slide 16: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ YoY Segmentation (%) Particulars Q3 FY22 Q3 FY21 Q2 FY22 9M FY22 9M FY21 Change Change* Change Home Textile Revenue 22,508 19,672 14% 23,749 -5% 67,181 50,760 32% Q3 FY22 EBITDA 3,126 4,348 -28% 4,135 -24% 11,707 11,176 5% EBITDA Margin (%) 13.9%
Slide 17: 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 18: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 18
Slide 19: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY18 FY19 FY20 FY21 9MFY22 Total Income 61,318 66,084 68,362 74,080 71,303 Growth % -8.8% 7.8% 3.4% 8.4% 35.8% EBITDA 12,046 11,467 13,098 14,198 11,781 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 16.5% Depreciation 5,042 4,358 4,811 4,536 3,090 Finance cost 1
Slide 20: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 Net Worth 26,057 27,793 29,721 36,447 39,371 Short Term Loans 12,580 14,080 17,717 17,452 20,449 Long Term Loans 20,228 19,024 16,704 10,962 12,130 of which Flooring Debt - 2,870 6,378 7,112 7,677 Gross D
Slide 21: Ratios Summary
Ratios Summary (On TTM Basis) FY18 FY19 FY20 FY21 Q3FY22 Net Debt/Equity 1.16 1.09 1.00 0.64 0.65 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.62 ratios EBIT/Interest 4.98 4.46 4.66 4.89 6.79 Current ratio 1.42 1.25 1.19 1.33 1.33 Fixed asset turnover 1.80 1.81 1.77 1.93 2.31 Total asset turnover
Slide 22: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Welspun is going through Environmental Social Governance a major transformation where Engaged with Cotton Farmers to we are embedding sustainability Implemented ISO 14001 train & enable them grow Board Committee on ESG and circularity in every rea
Slide 23: ESG Journey till date
ESG Journey till date … Dow Jones Sustainability Index (DJSI): Welspun India rated 62% higher than industry average score in DJSI Corporate Sustainability Assessment 2021 Journey Till Date (nos. are on YTD basis) 100,000+ acres 3,278 million 1,38,419 GJEnergy 44% 8,380 tons Landbank of sustainable L
Slide 24: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q3 FY21-22 YTD FY21-22 Goal 2025 Key Highlight of Q3FY21 Projects Under consideration: Solar PV on STP pumping stations (1MW), Carbon Neutral (measured Floating solar PV @ Anjar (11MW) WIP WIP 20% RE as % RE) Increase use of wood briquettes, Rice Hus
Slide 25: Share Holding Summary
Share Holding Summary Shareholding Pattern (Dec 2021) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 9.1% L&T Mutual Fund Mutual Funds/AIF 2.6% DSP Mutual Fund Insurance Co’s 2.4% Aditya Birla Sunlife MF Public 15.7% Tata Mutual Fund welspunindia.com 25
Slide 26: 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 27: Let's connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Mr. Vikash Verma Welspun India Limited Christensen Advisory sanjay_gupta1@welspun.com Vverma@christensenir.com Mob: +91 - 96640 09029 Mr. Rohit Anand Mr. Abhinandan Singh Christensen Advisory Group Head – Inv
Slide 28: Annexure
Annexure
Slide 29: 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 5,400+ outlets | 100+ cities & 450+ towns Brands Highlights Licensed Brands SPACES No 1 brand in shop-in-shops Indi
Slide 30: 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 Run rate by US UK India US UK India Q4FY23 Ecommerce Build & Grow Robust Supply Strong Technology Ri
Slide 31: 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 32: 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