Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Investor Presentation (July 2021)
49 slides from Welspun Enterprises's investor presentation, Jul 30, 2021
Slide 1: Cover letter to stock exchanges: revised investor presentation
WEL /SEC/2021 July 30, 2021 To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Bldg, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 532553 NSE Symbol: WELENT Dear Sir/Madam, Sub.: Revised
Slide 2: Welspun Enterprises Ltd: An Infra Player with a Difference
WELSPUN ENTERPRISES LTD An Infra Player with a Difference July 2021 Actual photo of Delhi-Meerut Expressway; completed in record 19 months vs. scheduled 30 months 1
Slide 3: Safe Harbor
SAFE HARBOR The information contained in this presentation is provided by Welspun Enterprises 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
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking NIP report Welspun Enterprises - Focused as a developer with special emphasis on HAM - Robust or
Slide 5: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELS eee , R | s E s Ll Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking Sunrise Infra Sector ~ Rs. 111 trillion capital expenditure in infrastructure sector during FY2020-25 as per NIP repor
Slide 6: Welspun Group Overview
WELSPUN GROUP OVERVIEW Group Revenue USD 2.7 Bn Group Assets Global leader in Home Textiles Amongst world’s largest Line-Pipe USD 1.0 Bn manufacturers Net Fixed Assets 26000+ Workforce Robust portfolio of Roads & Water Infra projects Integrated Grade-A Warehousing Solutions Based on FY20 financials
Slide 7: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS WELSP nhl tL PRISES Welspun Group comes with vast experience of - Nurturing businesses -Executing marquee projects - Investing & timely value unlocking - Sunrise Infra Sector ~ Rs. 111 trillion capital expenditure in infrastructure sector during FY2020-25 as per NIP report
Slide 8: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Sector wise break up of Capex of Sector wise share in the NIP for Road Rs. 111 trillion in NIP during 2020-2025 sector Ports & Airports Agri & Food Industrial Infra 2% Processing Infra 3% 2% Social Infra Private Centre 4% 39% 25% Digital Infra 3% Ener
Slide 9: Road Sector to Get Strong Thrust from Government
ROAD SECTOR TO GET STRONG THRUST FROM GOVERNMENT Vision 2025 for Roads Development of 60,000 km of NH - 2,500 km of Expressways, 9,000 km of Economic corridors, 2,000 km of coastal and port connectivity Higher penetration of advanced technology Significantly higher share of the private sector in NH
Slide 10: Potential Under Buy & Turnaround Strategy
POTENTIAL UNDER BUY & TURNAROUND STRATEGY Several projects awarded to various infra players with weaker balance sheet are not financially closed / execution is stuck ….WEL with its strong banking relationship, robust balance sheet and operational excellence sees this as an opportunity to be a Turnar
Slide 11: Water Sector – Key Focus Area for Government
WATER SECTOR – KEY FOCUS AREA FOR GOVERNMENT Government’s Mission: ‘Har Ghar Nal Se Jal’ With India’s water crisis nearing a tipping point, the government announced the Jal Jeevan Mission to provide potable water to every rural household by 2024. 100% Rs 12.6 trillion capital expenditure to be House
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 11
Slide 13: NHAI Hybrid Annuity Model (HAM) Introduced in 2016
NHAI HYBRID ANNUITY MODEL (HAM) INTRODUCED IN 2016…. ….to overcome BOT issues including Land Acquisition Change of scope Traffic changes Toll Risk Financing ….thus, now NHAI awarding more projects under HAM and pure EPC. HAM advantageous to both Developer & Authority NHAI as a partner At least 80% l
Slide 14: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 13
Slide 15: Robust Road Portfolio: Rs. 145+ Billion, ~800 km
ROBUST ROAD PORTFOLIO: Rs. 145+ BILLION, ~800 KM WITH…. Robust order book provides strong visibility OPERATIONAL EXCELLENCE Experience of operating Rs. 81 Billion # FINANCIAL STRENGTH 500+km Toll projects Among very Completed India’s First 14 Few Infra Developers lane Expressway in with credit ratin
Slide 16: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building Road and water portfolio through bid / buy strategy for profitable growth Current order book at ~Rs 81 billion (excluding GST) Ason June 2021 EPC of Water EPC, HAM, 33% Water, 30% 30% Road, 70% EPC of BOT, 10% OTHER EPC, 26% 15
Slide 17: Rs. 25 Bn Worth Orders Pouring into EPC Water Segment
Rs. 25 BN WORTH ORDERS POURING INTO EPC WATER SEGMENT Lead Partner in Joint Venture with Kaveri Infraprojects Limited, Hyderabad 70 : 30 Empanelled by the UP State Water and Sanitation Mission, Namami Gange and Rural Water Supply Department (SWSM) Execution of EPC Projects of 2,544 villages for the
Slide 18: Operating Leverage to Improve Margins
OPERATING LEVERAGE TO IMPROVE MARGINS FY21 revenue contributed by 8 Road projects 5 years Revenue CARG of 48% FY 21 operations were impacted by COVID-19 Revenues and Operating EBITDA (Rs. Mn) 20,000 17.0% 17,394 17,600 18,000 16.0% 16,000 15.0% 14,102 14,000 14.0% 12,000 9,972 12.4% 13.0% 10,000 12.
Slide 19: With Undivided Focus on Shareholder Value Creation
WITH UNDIVIDED FOCUS ON SHAREHOLDER VALUE CREATION 39.4% Promoter Management FIIs Banks & Insurance Cos Shareholding Pattern Mutual Funds/AIF 1.4% (as on 30th June 2021) Public 2.4% 2.1% 1.8% 53.0% Market Statistics Creating Shareholder value As on July 29, 2021 INR USD Stated Dividend Distribution
Slide 20: Through an Experienced Board and Management
THROUGH AN EXPERIENCED BOARD AND MANAGEMENT Board of Directors Management Team B.K.Goenka, Chairman Sandeep Garg, Managing Director & CEO, Member of Board • Amongst India’s most dynamic businessmen; Past President ASSOCHAM (2019) • Harvard Graduate with 30+ years of experience in diverse roles in in
Slide 21: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 20
Slide 22: One of Its Kind Asset Light Model
ONE OF ITS KIND ASSET LIGHT MODEL De-risked execution model Focus mainly on Undertakes only High Value Added Value unlocking HAM Project Management Consultancy from assets Leverages balance sheet Construction completely outsourced. Project Continuous unlocking of strength & financial supervision cap
Slide 23: Creating Value Through a Profound Strategy
CREATING VALUE THROUGH A PROFOUND STRATEGY 1 2 3 4 Bid for differentiated Achieve early Award construction to Project Management projects/ financial closure best suited sub- Consultancy Buy distressed contractor projects • Reduce execution risk • Lower competition • Strong Balance Sheet • Rigorous m
Slide 24: Delhi Meerut E-Way: Validating Our Differentiated Strategy
DELHI MEERUT E-WAY: VALIDATING OUR DIFFERENTIATED STRATEGY Project Under the Aegis of Prime Minister of India Shri Narendra Modi and NHAI Laying of foundation stone Inauguration of completed project India’s FIRST 14-Lane Expressway India’s FIRST Green Expressway India’s FIRST COMPLETED HAM project –
Slide 25: Appreciation by Prime Minister of India
APPRECIATION BY PRIME MINISTER OF INDIA SHRI NARENDRA MODI 24
Slide 26: Letter of Appreciation by Honourable Parliamentarian
LETTER OF APPRECIATION BY HONOURABLE PARLIAMENTARIAN 25
Slide 27: Appreciation by Shri Nitin Gadkari, Union Minister
APPRECIATION BY SHRI NITIN GADKARI, UNION MINISTER 26
Slide 28: Building Much More Than an Expressway
BUILDING MUCH MORE THAN AN EXPRESSWAY Vertical garden developed along the entire bridge 40,000+ Trees transplanted and retained existing trees 3,230 Solar Panels Beautification Initiatives Electrification through solar power of 1050 kWp Wall art & replicas of famous monuments 27
Slide 29: Welspun Enterprises CSR Initiatives
WELSPUN ENTERPRISES CSR INITIATIVES Our social mission is enshrined within the 3Es i.e. Education, Empowerment and Environment & Health ENVIRONMENT. Project Model Village To create a sustainable rural community that generates and maintains the resources to improve its level of well-being and happine
Slide 30: Financials
Wy WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 31: Income Statement - Standalone
INCOME STATEMENT - STANDALONE Income Statement Snapshot (Rs Crore) Particulars Q1FY22 Q1FY21 YoY % Q4 FY21 QoQ % Revenue from Operations 344.2 174.1 97.7% 504.6 -31.8% Other Income 9.4 9.6 -2.1% 1.6 499.8% Total Income 353.6 183.7 92.4% 506.2 -30.1% EBITDA 41.4 27.5 50.4% 70.6 -41.4% EBITDA margin 1
Slide 32: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Balance Sheet Snapshot (Rs crore) 30th June 2021 31st Mar 2021 Net worth 1,840 1,819 Gross Debt 566 602 - Long Term Debt 476 505 - Short Term Debt 90 97 Cash & Cash Equivalents# 95 375 Net Debt / (Cash) 471 227 Other Long Term Liabilities 31 31 Total Net Fixed Ass
Slide 33: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Financials to tap Infra Opportunities Strong Order book providing visibility for next couple of years Asset light business model in Infra with regular project value-enhancement post COD D
Slide 34: Way Forward
WAY FORWARD Continue approach of prudent bid/buy strategy to strengthen Road and Water portfolio Selectively evaluating EPC, BOT (Toll) projects and secondary acquisition opportunities Apart from NHAI, WEL is also evaluating road HAM projects of State and Municipal agencies Divest/securitise complet
Slide 35: Thank You
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY THANK YOU
Slide 36: Appendix
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY APPENDIX
Slide 37: Welspun Enterprises Infrastructure Portfolio
WELSPUN ENTERPRISES INFRASTRUCTURE PORTFOLIO Robust portfolio of 11 infrastructure projects in roads and water Project Name Type Contract Type Authority Status Completed; 6th Delhi-Meerut Expressway (Pkg 1) Road HAM NHAI Annuities Received Gagalheri-Saharanpur-Yamunanagar Road HAM NHAI 1st annuity r
Slide 38: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: 14 Lane expressway: Six-laning of Delhi – Meerut PROJECT DETAILS Expressway & four-laning either side from 0th km to existing km 8.4 of NH-24 in Delhi Project Length (Kms) 8.716 Km Award Date Jan 2016 Status: Record completion within 19 months. Receive
Slide 39: HAM: Gagalheri-Saharanpur-Yamunanagar
2 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS section of NH-73 in UP / Haryana Project Length (Kms) 51.5 Km Status: NHAI declared the Appointed Date for the Project Acquisition Date Jan 2018 as 26th January 2018; Received PCOD on 31st Oct
Slide 40: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
3 HAM: CHUTMALPUR-GANESHPUR & ROORKEE-CHUTMALPUR-GAGALHERI Scope: 4-Laning of Chutmalpur-Ganeshpur section of NH- PROJECT DETAILS 72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 in UP Project Length (Kms) 53.3 Km & Uttarakhand Acquisition Date Jan 2018 Status: NHAI declared the Appointed Date as
Slide 41: HAM: Aunta-Simaria (Ganga Bridge with Approach Roads)
4 HAM: AUNTA-SIMARIA (Ganga Bridge with Approach Roads) Scope: Six- Laning from Aunta-Simaria (Ganga Bridge with PROJECT DETAILS Approach Roads) Section from km 197.9 to km 206.1 of NH- 31 in Bihar. Includes widest extradosed bridge on Ganga Project Length (Kms) 8.15 Km river Award Date Aug 2017 Fin
Slide 42: HAM: Chikhali-Tarsod
5 HAM: CHIKHALI-TARSOD Scope: 4-laning of Chikhali – Tarsod (Package-IIA) section PROJECT DETAILS of NH-6 from km 360.0 to km 422.7 in Maharashtra Project Length (Kms) 62.7 Km Status: NHAI declared the Appointed Date as 16th January Acquisition Date Jan 2018 2019; execution in full swing Financial C
Slide 43: HAM: Package No. AM 2
6 HAM: PACKAGE NO. AM 2 Scope: Upgradation of Roads in Maharashtra State or Two PROJECT DETAILS Laning Road/ Two Laning Road with paved shoulder under Project Length (Kms) 352.15 Km MRIP Package on Hybrid Annuity Mode (HAM) Package No. AM 2. Award Date Nov 2018 Key Features: Concessionaire to receiv
Slide 44: HAM: Sattanathapuram - Nagapattinam
7 HAM: SATTANATHAPURAM - NAGAPATTINAM Scope: 4 laning of Sattanathapuram to Nagapattinam PROJECT DETAILS (Design Ch Km 123.8 to Km 179.6) section of NH-45A (New Project Length (Kms) 55.755 Km NH -332) in Tamil Nadu Status: Received Appointed Date on 5th October 2020 with Award Date July 2018 4 lane
Slide 45: BOT: Mukarba Chowk – Panipat
1 BOT: MUKARBA CHOWK – PANIPAT Scope: 6 to 8 laning from Mukarba Chowk at Km 15.5 and PROJECT DETAILS extends to Panipat at Km 86 in the State of Haryana. Project Stretch lies in the Panipat & Sonipat district of Haryana and Project Length (Kms) 71.1 Km Delhi Acquisition Date June 2020 Financial Clo
Slide 46: EPC: Varanasi Aurangabad NH2 Project
1 EPC: Varanasi Aurangabad NH2 Project Scope: Six laning of Varanasi – Aurangabad section of NH- PROJECT DETAILS 2 from km 786.00 to km 978.00 (length 192.400 km) in the state of Uttar Pradesh & Bihar Project Length (Kms) 192.4* Status: The project construction is expected to start in Scheduled Cons
Slide 47: EPC: UP State Water and Sanitation Mission
2 EPC: UP State Water and Sanitation Mission Scope: Rural Water Supply project under Jal Jeevan PROJECT DETAILS Mission by State Water Sanitation Mission UP, scope includes Project Scope : Water Supply to Villages Survey, Design, Preparation of DPR, Construction, LOA Date 13-Jan-21 Commissioning and
Slide 48: Other BOT Projects Summary
OTHER BOT PROJECTS SUMMARY Experience & expertise of successfully operating water project and 500+ kms of roads (Rs. Mn) External Debt on books Concession Sector Project Name Location COD (March-21) End Highways Himmatnagar Bypass Gujarat - Apr-06 Aug-20 Water Supply Dewas Water* MP 486 Sep-08 Jun-3
Slide 49: Investment in Oil & Gas Blocks: Potential Value Accretion
INVESTMENT IN OIL & GAS BLOCKS: POTENTIAL VALUE ACCRETION Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle AWEL WEL Effective Block Name Location Status Stake Stake AWEL drilled a well and had hydrocarbon discovery- Mumbai MB-OSN-2005/2 100% 3
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