Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q4 FY2018 Earnings Presentation
36 slides from Welspun Enterprises's earnings presentation, May 2018
Slide 1: Welspun Enterprises Ltd Investor Presentation
WELSPUN ENTERPRISES LTD INVESTOR PRESENTATION May 2018 1
Slide 2: 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 3: Global Leader in Home Textiles, Large Diameter Pipes, Infrastructure
Global Leader in Global Leader in Infrastructure Home Textiles Large Diameter Pipes Investments in Oil & Gas Group Revenue Asset Base Employees US$ 2.3 Billion US$ 2.7 Billion 25,000+ 3
Slide 4: Agenda
1. Company Overview 2. Infrastructure i. HAM ii. BOT AGENDA 4. Corporate Social Value 3. Oil & Gas 5. Financials 6. Way Forward 7. Key Highlights 4
Slide 5: Welspun Enterprises (WEL): Overview
WELSPUN ENTERPRISES (WEL): OVERVIEW High growth potential with Robust HAM Portfolio Focus on the Infrastructure Sector of Rs. 69+ Billion* 6 projects; 235+ kms Experience of operating 500+ km Order book at Rs. 55 Billion* of completed BOT (Toll) Road projects Book-to-bill of ~6 times; Among the very
Slide 6: Equity Snapshot
EQUITY SNAPSHOT Shareholding Pattern (as on 31st Mar 2018) Market Cap (Rs. Million) 20,812 46.79% 44.59% Promoter Management 12,313 FIIs 8,222 Banks and Insurance Cos Mutual funds Public 31 Mar 16 31 Mar 17 31 Mar 18 0.46% 0.81% 4.56% 2.77% Market Statistics Creating Shareholder value Share Buyback
Slide 7: Experienced Board and Management
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 • Harvard Graduate with 30+ years experience in diverse roles in infrastructure • Ranked amongst India’s Most Pow
Slide 8: Infrastructure
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INFRASTRUCTURE
Slide 9: Hybrid Annuity Model (HAM) Overview
HYBRID ANNUITY MODEL (HAM) OVERVIEW Award criterion: Lowest NPV value based on Construction Returns to Concessionaire on Capital Arranged cost and O&M cost, quoted by the bidders - Annuity payments (biannually) till end of concession period as per predetermined schedule - Interest payments (on reduc
Slide 10: WEL: Asset Light Approach to Infrastructure
WEL: ASSET LIGHT APPROACH TO INFRASTRUCTURE 1 2 3 4 Bid for differentiated Achieve early Award construction to Rigorous project HAM projects financial closure best suited sub- monitoring & contractor supervision • Lower competition • Strong Balance Sheet • Ensure reasonable EPC • Achieve early compl
Slide 11: Strong Platform Set for Future Growth
STRONG PLATFORM SET FOR FUTURE GROWTH Continuously building HAM portfolio through bid / buy strategy for profitable growth Added 4 HAM projects during FY18; declared L-1 in one more project in May-18 Current order book at ~Rs. 55 Billion As on May-18 As on Mar-17 EPC of HAM: 5.2 bn Other EPC: 0.2 bn
Slide 12: Enhanced Margins with Execution Acceleration
ENHANCED MARGINS WITH EXECUTION ACCELERATION FY18 revenue contributed mainly by Delhi-Meerut Expressway Package-1 HAM project Recently added HAM projects started contributing from Q4FY18 Margin improvement as fixed cost absorption increased with higher execution on multiple projects Infrastructure R
Slide 13: Infrastructure Projects
INFRASTRUCTURE PROJECTS HAM PROJECTS BOT PROJECTS 1 Delhi - Meerut Expressway Package 1 Authority: NHAI Status: Under Construction; provisional completion certificate applied Dewas Water Authority: MPSIDC Status: Operational 2 Gagalheri - Saharanpur Yamunanagar (GSY) (Modified Project under construc
Slide 14: HAM: Delhi-Meerut Expressway Package 1
1 HAM: DELHI-MEERUT EXPRESSWAY PACKAGE 1 Scope: Six-laning of Delhi – Meerut Expressway & four- PROJECT DETAILS laning either side from km 0.000 to existing km 8.360 of NH- Project Length (Kms) 8.716 Km 24 in Delhi Award Date Jan 2016 Status: Applied for provisional completion certificate with Finan
Slide 15: NHAI Appreciation for Speedy Progress
1 NHAI APPRECIATION FOR SPEEDY PROGRESS 15
Slide 16: Completion Well Ahead of Schedule
1 COMPLETION WELL AHEAD OF SCHEDULE 16
Slide 17: Building Much More Than an Expressway
1 BUILDING MUCH MORE THAN AN EXPRESSWAY WEL’s Green as well as Beautification Initiatives at DME appreciated by NHAI - Vertical Garden developed along the entire bridge - Electrification through Solar Power - Wall Art on pillars - Replicas of famous monuments 17
Slide 18: HAM: Gagalheri-Saharanpur-Yamunanagar
2 HAM: GAGALHERI-SAHARANPUR-YAMUNANAGAR Scope: 4-Laning of Gagalheri-Saharanpur-Yamunanagar PROJECT DETAILS (UP/Haryana Border) section of NH-73 Project Length (Kms) 51.5 Km Status: NHAI declared the Appointed Date for the Project Acquisition Date Jan 2018 as 26th January 2018; execution in full swi
Slide 19: 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 Project Length (Kms) 53.3 Km UP & Uttarakhand Acquisition Date Jan 2018 Status: NHAI declared the Appointed Date as
Slide 20: 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 197.900 to km 206.050 of NH-31 in the State of Bihar Project Length (Kms) 8.15 Km Award Date Aug 2017 Status: Financial closure achieved; a
Slide 21: HAM: Chikhali-Tarsod
5 HAM: CHIKHALI-TARSOD Scope: 4-laning of Chikhali – Tarsod (Package-IIA) section PROJECT DETAILS of NH-6 from km. 360.000 to km.422.700 Project Length (Kms) 62.7 Km Status: Acquired 49% stake from Vishvaraj Group in Acquisition Date Jan 2018 January 2018. Financial closure achieved; site mobilised
Slide 22: Expertise of Managing BOT Projects
EXPERTISE OF MANAGING BOT PROJECTS Experience of successfully operating more than 500+ kms of roads WEL has 3 operational infrastructure projects on BOT basis (Rs. Mn) Value on Debt on Concession Sector Project Name Location books books COD End (March-18) (March-18) Himmatnagar Bypass Gujarat 13 - A
Slide 23: Update on BOT Projects – Outstanding Matters
UPDATE ON BOT PROJECTS – OUTSTANDING MATTERS Dewas Water – Modified Project Project modified under the Madhya Pradesh Swiss Challenge Guidelines Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas Source of water ~ 7 km from Dewas as against 1
Slide 24: Investments in Oil & Gas
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INVESTMENTS IN OIL & GAS
Slide 25: Oil & Gas – Active Blocks Summary
OIL & GAS – ACTIVE BLOCKS SUMMARY 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 Mumbai AWEL has decided to execute Phase – II of the MB-OSN-2005/2 100% 35% High exploration Declared
Slide 26: Corporate Social Value
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY CORPORATE SOCIAL VALUE
Slide 27: Welspun Group Initiatives
WELSPUN GROUP INITIATIVES Empowerment • Education at Govt. Schools • Adult Literacy Education for women • Vocation Centers: 8 centers have resulted in INR 13mn earnings for women Education • Walmart’s SWASTI foundation for Women Empowerment and Training: Successfully trained 2,335 women in foundatio
Slide 28: Welspun Enterprises Initiatives
WELSPUN ENTERPRISES INITIATIVES Working with communities through diverse social interventions to secure stable & sustainable futures Community Healthcare Potable Water Supply Promoting Education Initiatives Initiatives Initiatives Weekly health check-up camps Distribution of Potable Water Prov
Slide 29: Financials
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 30: Income Statement Snapshot - Standalone
INCOME STATEMENT SNAPSHOT - STANDALONE Income Statement YoY YoY Q4 FY18 Q4 FY17 FY18 FY17 Snapshot (Rs. Million) Growth Growth Total Income* 4,040 2,052 97% 10,928 3,894 181% EBITDA 491 300 63% 1,660 678 145% EBITDA margin 12.1% 14.6% 15.2% 17.4% PBT 431 225 91% 1,385 427 225% Exceptional 14 38 -63%
Slide 31: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Balance Sheet Snapshot (Rs. Million) 31st Mar 2018 31st Mar 2017 Net worth 14,573 13,524 Gross Debt 664 801 Cash & Cash Equivalents 7,135 10,663 Net Debt /(Cash) (6,471) (9,862) Other Long Term Liabilities 303 287 Total Net Fixed Assets (incl. CWIP) 87 818 Net Cur
Slide 32: Way Forward
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY WAY FORWARD
Slide 33: Way Forward
WAY FORWARD Continue approach of prudent bid/buy strategy to strengthen HAM portfolio Targeting projects where differentiation is possible Looking at opportunities in associated areas in Infra; targeting water segment Explore and develop existing oil & gas blocks 33
Slide 34: Key Highlights
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY KEY HIGHLIGHTS
Slide 35: Key Highlights
KEY HIGHLIGHTS Well Positioned to Benefit from India’s Economic Growth & Development Unique Position with Strong Financials and Robust Credit Rating to tap Infra Opportunities Strong Order book with revenue growth visibility of 100% p.a for next 2 years Asset light business model in Infra with regul
Slide 36: Thank You
THANK YOU For further details, please contact: Harish Venkateswaran AVP - Group Finance and Strategy Email: harish_venkateswaran@welspun.com 36
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