Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Q2 FY24 Earnings Presentation
32 slides from Welspun Living's earnings presentation, Oct 25, 2023
Slide 1: Exchange filing cover letter
WLL/SEC/2023 October 25, 2023 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) (Sy
Slide 2: Earnings Presentation Welspun Living Limited Q2 FY24
Earnings Presentation Welspun Living Limited Home Textile | Advance Textile | Flooring Q2 FY24 2023 NSE/BSE: 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 summary 08 Half Yearly summary 09 Operational Highlights 13 Quarterly Segment Results 16 Profit & Loss Summary 18 Financial Statements Summary 19 ESG at Welsp
Slide 4: Welspun Living - Global Home Textiles Leader
WELSPUN LIVING - GLOBAL HOME TEXTILES LEADER Multipronged Welspun Living Ltd (WLL), E-Commerce ESG Focused part of $3 bn Welspun Group, is a Strategy to organization with global leader in the Home Textiles accelerate growth & capture well-defined landscape. With a strong global principles, Diversifi
Slide 5: Management Commentary
MANAGEMENT COMMENTARY “We are happy to share that the company has recorded its highest ever quarterly revenues in Q2FY24 at ₹ 25,424 mn growing 19% YoY. All our home textile plants ran at higher capacities utilisation as we saw increased order flows from US due to festive demand, aided by a relative
Slide 6: Awards & Recognition
AWARDS & RECOGNITION Feathers in our cap 'Most Promising Business Leaders of Asia 2023' by the Economic Times Won 19th IACE awards by 'Business Leader of the Won Gold in Hometech category and Clinched "India's Most Trusted Silver in Meditech category in SRTEPC IACC in ‘Excellence & Year' (Individual
Slide 7: Strong Global Presence
STRONG GLOBAL PRESENCE KEY CUSTOMER PARTNERSHIP North America UK & Europe India ROW Over 50 IKEA Countries Presence welspunliving.com 6
Slide 8: Key Highlights
KEY HIGHLIGHTS Brands ESG Innovation C lick the Ico ns to k no w m o re Total Income EBITDA Q2 ₹ 25,424 mn grew 19% YoY (Highest ever Q2 ₹ 3,913 mn @ 15.4% grew 158% YoY quarterly Revenue) H1 ₹ 7,327 mn @ 15.4% grew 125% YOY H1 ₹ 47,545 mn grew 16% YOY Overall Branded Business
Slide 9: Quarterly Highlights
QUARTERLY HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 25,424 3,913 2,590 1,967 2,833 Growth (YoY) 19.0% 158.0% 1784.6% 2170.0% 139.3% Growth (QoQ) 14.8% 14.6% 19.8% 21.7% 12.3% Margin (%) 15.4% 10.2% 7.7% Margin Expansion (Y-o-Y) 829 bps 954 bps 733 bps Margin Expansion (Q-o-Q) - 42 bp
Slide 10: Half Yearly Highlights
HALF YEARLY HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 47,545 7,327 4,752 3,583 5,356 Growth (YoY) 15.5% 125.3% 849.4% 1053.8% 114.1% Margin (%) 15.4% 10.0% 7.5% Margin Expansion (Y-o-Y) 751 bps 878 bps 678 bps EPS/CEPS 3.70 5.51 welspunliving.com 9
Slide 11: Quarterly Highlights
QUARTERLY HIGHLIGHTS (₹ Million) Particulars 30-Sept-23 30-Sept-22 30-June-23 Net Worth 41,975 39,348 40,302 Short Term Loans 13,266 17,557 13,803 Net Debt / Equity Long Term Loans 10,167 12,375 10,469 (x) Gross Debt 23,433 29,931 24,272 1.00 0.80 Cash & Cash Equiv. 7,698 9,952 6,119 0.60 0.40 0.45
Slide 12: Sales Highlights – Channel Wise
SALES HIGHLIGHTS – CHANNEL WISE (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q2 FY24 5,314 11,609 1,527 685 1,788 30 1,306 Sales Contribution (%) 24% 52% 7% 3% 8% 0% 6% Q1 FY24 5,653 8,832 1,464 775 1,594 34 1,037 Sales Contributi
Slide 13: Sales Highlights – Business Wise
SALES HIGHLIGHTS – BUSINESS WISE (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Com Flooring – B2B Flooring – Branded Textiles Q2 FY24 15,353 2,814 715 1,105 1,993 281 Sales Contribution (%) 69% 12% 3% 5% 9% 1% Q1 FY24 13,370 2,350 810 937 1,642 281
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q2FY24 Q1FY24 Q2FY23 Capacity (%) (%) (%) Bath Linen MT 90,000 21,012 93% 18,181 81% 13,538 60% Bed Linen Mn mtrs 108 21.8 81% 15.4 57% 13.9 51% Home Rugs & Carpets Mn sq mtrs 12.0
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM H1FY24 H1FY23 Capacity (%) (%) Bath Linen MT 90,000 39,193 87% 25,170 57% Bed Linen Mn mtrs 108 37.2 69% 27.9 52% Home Rugs & Carpets Mn sq mtrs 12.0 5.6 94% 3.5 59% Textile Advanced Textile Sp
Slide 16: Quarterly Profit & Loss
QUARTERLY PROFIT & LOSS (₹ Million) Particulars Q2 FY24 Q2 FY23 YoY Change Q1FY24 QoQ Change Total Income 25,424 21,366 19.0% 22,149 14.8% EBITDA 3,913 1,517 158.0% 3,415 14.6% EBITDA Margin (%) 15.4% 7.1% 829 bps 15.4% - Finance Cost 338 284 19.2% 258 31.0% Depreciation 985 1,095 (10.1%) 994 (0.9%)
Slide 17: Quarterly Segment Results
QUARTERLY SEGMENT RESULTS (₹ Million) Revenue Segmentation (%) YoY QoQ YoY Particulars Q2 FY24 Q2 FY23 Q1 FY24 H1 FY 24 H1 FY 23 Change Change Change Q2 FY24 Home Textile Revenue 23,523 20,114 16.9% 20,376 15.4% 43,899 38,635 13.6% EBITDA 3,594 1,276 181.7% 3,123 15.1% 6,717 2,992 124.5% EBITDA Marg
Slide 18: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 17
Slide 19: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY20 FY21 FY22 FY 23 H1 FY 24 Total Income 68,362 74,080 93,773 82,151 47,545 Growth YoY* % 3.4% 8.4% 26.6% (11.4%) 15.5% EBITDA 13,098 14,198 14,246 8,739 7,327 EBITDA Margin 19.2% 19.2% 15.2% 10.6% 15.4% Depreciation 4,811 4,536 4,205 4,421 1,979 Finan
Slide 20: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 30-Sept-23 Net Worth 29,721 36,447 39,717 40,878 41,975 Short Term Loans 17,717 17,452 19,742 12,342 13,266 Long Term Loans 16,704 10,962 12,142 11,162 10,167 Gross Debt 34,421 28,414 31,884 23,504 23,433 Cash & Ca
Slide 21: Ratios Summary
Ratios Summary FY20 FY21 FY22 FY23 H1 FY24 Net Debt/Equity 1.00 0.64 0.56 0.38 0.37 Solvency Net Debt/EBITDA 2.26 1.64 1.56 1.76 1.23 ratios EBIT/Interest 4.66 4.89 7.65 3.32 6.64 Current ratio 1.19 1.33 1.37 1.66 1.58 Fixed asset turnover 1.77 1.93 2.33 2.14 2.33 Total asset turnover 0.81 0.85 0.99
Slide 22: Welspun ESG Way: Encompassing All Stakeholders
WELSPUN ESG WAY: ENCOMPASSING ALL STAKEHOLDERS Environmental Social Governance Welspun is going through Implemented ISO 14001 Engaged with Cotton Farmers Board Committee on ESG a major transformation where we are Environmental Management to grow sustainable Cotton embedding sustainability and
Slide 23: Sustainability Initiatives – Growing Business Responsibly
SUSTAINABILITY INITIATIVES – GROWING BUSINESS RESPONSIBLY Welspun L iving’s Sustain a bili t y case study is no w a part o f a curric ul u m acro ss universi ti es in US, Canada, France, Europe and Taiwan.” Sustainalytics DJSI ratings Crisil ratings Welspun L iving is am o ngst the to p 5% texti
Slide 24: Sustainability – Progress Against Targets
SUSTAINABILITY – PROGRESS AGAINST TARGETS Aspects Q2 FY 24 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 77% 50% 100% Fresh Water Positive in Production 10.2 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 10.8 MT 0 MT 0 MT ch
Slide 25: Share Holding Summary
SHARE HOLDING SUMMARY Shareholding Pattern (Sept 2023) Top Institutional Shareholders Promoter Group 70.5% LIC of India FPIs 6.4% HSBC Mutual Fund Mutual Funds/AIF 2.1% Aditya Birla Sunlife MF Insurance Co’s 3.7% Nippon Mutual Fund Public 16.3% Tata Mutual Fund Other 1.0% welspunliving.com 24
Slide 26: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Welspun Living 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 Welspun Living Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com Connect with us: /TheWelspunworld /WelspunWorld /welspungroup /company/welspunworld
Slide 28: Annexure
Annexure:
Slide 29: Owned Brands – Domestic
Diversified Product Portfolio OWNED BRANDS – DOMESTIC BED LINEN BATH LINEN Bedsheets Towels Comforters Bath mats Dohars Bath robes Pillow covers Brand Positioning Premium Mass Thoughtfulness RUGS FLOORING SOLUTIONS Presence 15,511+ outlets (2,246+ in Q2 24) Door mats Click & Lock tiles 2,4
Slide 30: Retail Journey
RETAIL JOURNEY Campaign with Akshay Kumar Brand Welspun - most distributed brand, HT CSO Campaign Launched Reached Rs 100 Cr launched for Re-launch of EBO Spaces Turnover consumer brand engagement (SPACES) 2004 2008 2016 2018 2019 2022 2023 3% 5% 7% Launched Launched Welspun Brand
Slide 31: Domestic Consumer Business Buildup
DOMESTIC CONSUMER BUSINESS BUILDUP Awards Innovation: Highest Distributed 75% Districts • 2-in-1 Sheet Brand Welspun Brand in HT Share of Presence in shelf: >=15% MBO; • Quik Dry Towel ~500/640 >= 40% Large format • Wonderful sheet Make in India: Presence: 15.5k+ Outlets Most Visible Brand Highest S
Slide 32: Innovation – Our Strong Suite
INNOVATION – OUR STRONG SUITE 36 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Patented spinning technology makes towel Blockchain platform for state-of-the-art softer loftier and sheet temperature transparency for All Fibers & All Pr