Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q4 FY23 Earnings Presentation
32 slides from Welspun Living's earnings presentation, Apr 27, 2023
Slide 1: Regulation 30 disclosure cover letter to exchanges
WIL/SEC/2023 April 27, 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) (Symb
Slide 2: Earnings Presentation Q4 FY23
Earnings Presentation Welspun India Limited Home Textile | Advance Textile | Flooring Q4 FY23 27th April 2023 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 summary 08 FY23 summary 09 Operational Highlights 13 Quarterly Segment Results 16 Enhancing Capacity 17 Profit & Loss Summary 19 Financial Statements Summary
Slide 4: Welspun India - Global Home Textiles Leader
Welspun India - Global Home Textiles Leader Multipronged Welspun India Ltd (WIL), E-Commerce part of $2.3 bn Welspun Group, is a Strategy to accelerate ESG Focused global leader in the Home Textiles growth & capture larger share of the organization with landscape. With a strong global well-defined D
Slide 5: Management Commentary
Management Commentary “A relatively higher order flows from retailers and a stellar performance from all our Emerging businesses resulted in a QoQ revenue growth of 15% in Q4FY23. It is heartening to see our Domestic business reaching newer heights with a 31% Growth in FY23. We are fast progressing
Slide 6: Awards & Recognition
AWARDS & RECOGNITION Feathers in our cap 2022 2022 2022 Read More Brand Welspun wins Prestigious Brand Brand SPACES campaign wins ET SPACES featured in the 3rd Ascent Star Industry Award in the ‘best edition of Femina Power Brands of Asia award (textile) out of 50 brands use of social media marketin
Slide 7: Strong Global Presence
Strong Global Presence Key Customer Partnership North America UK & Europe India ROW Over 50 Countries Presence welspunindia.com 6
Slide 8: Key Highlights
Key Highlights Brands E-Commerce Innovation Click the I cons to know more Total Income Net Debt stood at ₹ 15,343 mn vs. ₹22,289 mn Q4 ₹21,955 mn grew 15.3% QoQ (FY 22), reduction of 6,946 Mn. FY 23 ₹ 82,151 EBITDA Net Debt/Equity is 0.38 Vs. 0.56 (FY 22) Q4 ₹ 3,201 mn Margin @14.6% up by 40%
Slide 9: Quarterly Highlights
Quarterly Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 21,955 3,201 1,733 1,254 2,481 Growth (YoY) (2.3%) 29.9% 59.4% 140.3% 29.4% Growth (QoQ) 15.3% 40.0% 120.7% 195.9% 39.5% Margin (%) 14.6% 7.9% 5.7% Margin Expansion/(Contraction) (Y-o-Y) 361 bps 306 bps 339 bps Margin Expansion/(Con
Slide 10: FY23 Highlights
FY23 Highlights (₹ Million) Revenue EBITDA PBT PAT Cash Profit 82,151 8,739 3,019 1,988 6,760 Growth (YoY)* (11.4%) (33.8%) (60.7%) (62.0%) (31.9%) Margin (%) 10.6% 3.7% 2.4% Margin Expansion/Contraction (Y-o-Y) (359 bps) (943 bps) (322 bps) EPS/CEPS 2.02 6.84 *FY22 numbers adjusted for ROSCTL of Q4
Slide 11: Quarterly Highlights (Debt and Net Worth)
Quarterly Highlights (₹ Million) Particulars 31-Mar-23 31-Mar-22 31-Dec-22 Net Worth 40,878 39,717 39,416 Short Term Loans 12,342 19,742 17,051 Net Debt / Equity Long Term Loans 11,162 12,142 11,511 (x) 1.00 of which Net Flooring Debt 7,878 8,300 8,967 0.80 0.60 0.48 0.56 0.38 Gross Debt 23,504 31,8
Slide 12: Revenue Highlights
Revenue Highlights (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q4FY23 3,934 9,222 1,394 1,088 2,353 17 1,111 Sales Contribution (%) 21% 48% 7% 6% 12% 0% 6% Q3FY23 3,718 7,677 1,196 964 1,328 22 1,435 Sales Contribution (%) 23% 47
Slide 13: Revenue Highlights by Business
Revenue Highlights (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Comm Flooring – B2B Flooring – Branded Textiles Q4 FY23 12,502 3,138 1,105 838 1,211 326 Sales Contribution (%) 65% 16% 6% 4% 6% 2% Q3 FY23 10,683 2,362 986 761 1,148 401 Sales Contri
Slide 14: Operational highlights (Quarterly)
Operational highlights (Quarterly) Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q4FY23 Q3FY23 Q4FY22 Capacity (%) (%) (%) Bath Linen MT 90,000 14,948 66% 16,279 72% 14,360 67% Bed Linen Mn mtrs 108 14.7 54% 12.6 47% 15.5 69% Home Rugs & Carpets Mn s
Slide 15: Operational highlights (FY 23)
Operational highlights (FY 23) Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM FY23 FY22 Capacity (%) (%) Bath Linen MT 90,000 56,397 63% 71,695 84% Bed Linen Mn mtrs 108 55.2 51% 83.5 93% Home Textile Rugs & Carpets Mn sq mtrs 12.0 7.2 60% 9.2 77% Advanced Textil
Slide 16: Quarterly Profit & Loss
Quarterly Profit & Loss (₹ Million) YoY QoQ YoY* Particulars Q4 FY23 Q4 FY22 Q3FY23 FY23 FY22 Change Change Change Total Income 21,955 22,471 (2.3%) 19,041 15.3% 82,151 93,773 (11.4%) EBITDA 3,201 2,464 29.9% 2,286 40.00% 8,739 14,246 (33.8%) EBITDA Margin (%) 14.6% 11.0% 361 bps 12.0% 257 bps 10.6%
Slide 17: Quarterly Segment Results
Quarterly Segment Results (₹ Million) Revenue YoY QoQ YoY* Segmentation (%) Particulars Q4 FY23 Q4 FY22 Q3 FY23 FY23 FY22 Change Change Change Q4 FY23 Home Textile Revenue 20,171 20,730 (2.7%) 17,575 14.8% 76,381 87,911 (12.1%) EBITDA 2,930 2,404 21.9% 2,062 42.1% 7,984 14,111 (38.9%) EBITDA Margin
Slide 18: Enhancing capacity
Enhancing capacity Towels HOME TEXTILES: 80,000 MT 85,400 MT 90,000 MT Capacity expansions at Vapi and Anjar Capacity in FY21 Capacity in FY22 Starting Q2FY23 operationalized in H1FY23 ADVANCED TEXTILES: Bed Linen Spunlace expansion commercialized in Q4FY22 90 Mn. Meters 90 Mn. Meters 108 Mn. Me
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 FY22 FY 23 Total Income 61,318 66,084 68,362 74,080 93,773 82,151 Growth YoY* % (8.8%) 7.8% 3.4% 8.4% 26.6% (11.4%) EBITDA 12,046 11,467 13,098 14,198 14,246 8,739 EBITDA Margin 19.6% 17.4% 19.2% 19.2% 15.2% 10.6% Depreciation 5,042 4
Slide 21: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 Net Worth 26,057 27,793 29,721 36,447 39,717 40,878 Short Term Loans 12,580 14,080 17,717 17,452 19,742 12,342 Long Term Loans 20,228 19,024 16,704 10,962 12,142 11,162 of which Net Flooring Deb
Slide 22: Ratios Summary
Ratios Summary FY18 FY19 FY20 FY21 FY22 FY23 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 0.38 Solvency Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 1.76 ratios EBIT/Interest 4.98 4.46 4.66 4.89 7.65 3.32 Current ratio 1.42 1.25 1.19 1.33 1.37 1.66 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 2.14 Total as
Slide 23: Welspun ESG way: Encompassing all stakeholders
Welspun ESG way: Encompassing all stakeholders Environmental Social Governance Welspun is going through Engaged with Cotton Farmers to Board Committee on ESG a major transformation where Implemented ISO 14001 train & enable them grow Executive remuneration linked to we are embedding sustaina
Slide 24: Sustainability Initiatives – Growing business responsibly
Sustainability Initiatives – Growing business responsibly Among Top 100 Sustainable companies in India by ET-Futurescape Sustainalytics DJSI ratings Crisil ratings Welspun India’s Sustainability case study is now a part of a curriculum across universities in US, Canada, France, Europe and Taiwan
Slide 25: Sustainability – Progress against Targets
Sustainability – Progress against Targets Aspects Q4FY 23 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) WIP 20% RE 100% RE 100% Sustainable Cotton 90% 50% 100% Fresh Water Positive in Production 15.08 KL/MT 5 KL/MT 0 KL/MT operations Zero hazardous waste to Landfill (ETP 15.68 MT 0 MT 0 MT c
Slide 26: Share Holding Summary
Share Holding Summary Shareholding Pattern (Mar 2023) Top Institutional Shareholders Promoter Group 70.4% LIC of India FPIs 5.8% HSBC Mutual Fund Mutual Funds/AIF 2.0% Aditya Birla Sunlife MF Insurance Co’s 3.7% Nippon Mutual Fund Public 17.1% Tata Mutual Fund Other 1.0% 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 President (Finance) & CFO Welspun India Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com welspunindia.com TheWelspunGroup welspungroup
Slide 29: Annexure
Annexure
Slide 30: 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 Door mats Click & Lock 11,170+ outlets (4500+ FY 23) tiles 2,400+
Slide 31: E-Commerce – Multipronged strategy to drive growth
E-Commerce – Multipronged strategy to drive growth 3 Ecommerce Build & Grow Robust Supply Strong Technology Right Geographies in focus Channel Growth Branded Business Chain Back-end Organization US UK India Brand.com Own Brand Inventory Planning Tech-Stack: Middleware COE Org Model Marketplaces Lice
Slide 32: 36 Patented Technologies
Innovation – Our strong suite 36 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Blockchain Patented spinning technology makes towel platform for state-of-the-art transparency for softer loftier and sheet temperature All Fibers & All Pr