Welspun Enterprises Ltd. · NSE:WELENT

Welspun Enterprises — Investor Presentation (November 2022)

43 slides from Welspun Enterprises's investor presentation, Nov 22, 2022

  1. Slide 1: Cover letter to stock exchanges

    WEL/SEC/2022 November 22, 2022 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, Subject: I

  2. Slide 2: Welspun Enterprises Limited Investor Presentation November 2022

    WELSPUN ENTERPRISES LIMITED BSE: 532553 | NSE: WELENT |ISIN: INE625G01013 Investor Presentation November 2022

  3. 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

  4. Slide 4: Welspun Enterprises At a glance

    Welspun Enterprises At a glance PAN INDIA DIVERSIFIED ASSET LIGHT STRONG PRESENCE PORTFOLIO MODEL EXECUTION Across UP, Bihar, Specialise in Road, Operational excellence Tamil Nadu, Haryana, Water and Wastewater through committed partners Record completion time Maharashtra and and recycling of capita

  5. Slide 5: Creating Value through a Clear Strategy

    Creating Value through a Clear Strategy Bid for selective projects Leverage knowledge Deploy right mix of contractors & support them for seamless  Lower competition  Moving towards external orders (strengthening EPC) execution  Better IRRs  Better EPC margin  Reduce execution risk  Ease of exe

  6. Slide 6: Advantage WEL

    ADVANTAGE WEL

  7. Slide 7: Key Triggers

    Key Triggers Strong Platform Set for Proven Track Record Trend in Diversification Future Growth Built one of the ‘Engineering Marvels of India - Delhi Focus on Road and Water segments Exploring additional Meerut E-way’ and known to be an Execution Specialist Strong and diversified EPC Order book acr

  8. Slide 8: Proven track record

    Proven track record ~500 km ₹ 122,000+ Mn Delhi Meerut Expressway Experience of operating ~700 km Welspun Enterprises’ completed ~500 km of Toll projects portfolio includes the Delhi–Meerut Robust road portfolio* Expressway / National Expressway 3 which was featured as an Engineering Capability to e

  9. Slide 9: Strong platform set for future growth

    Strong platform set for future growth Robust portfolio of Road Current order ₹ 1,14,186 Mn* and Water projects book at (excluding GST) Segment Break-up Order Book Break-up 46% 80% ROAD EXTERNAL 54% WATER CAPTIVE 20% Current Order Book provides strong revenue growth visibility * As on September 30th,

  10. Slide 10: Way forward: Trends towards Diversification

    Trends towards Diversification Trends in Order Book Break-up WEL Portfolio (in ₹ Mn) Other EPC of Water EPC, HAM , 1,22,000 EPC, 4% 17.2% 55.7% 1,14,186 EPC of FY17 Q2 FY23 BOT, 2.8% EPC of Road EPC, HAM , 24.3% Development EPC* 96% Development includes assets demonetized Way Continue approach of pr

  11. Slide 11: Continuous Focus on Value Creation

    Continuous Focus on Value Creation De-risked execution model Focused on Strong presence across segments: Building High-Value High- Value unlocking Execution Development (HAM & BOT) and EPC Margin Projects from assets excellence with Diversified roads & Water Completed Projects – ready to Low Leverag

  12. Slide 12: Through an experienced Management

    Through an experienced Management Sandeep Garg Sanjay Sultania Neeraj Gupta Yogen Lal Rajesh Jain Managing Director Chief Financial Vertical Head Vertical Head Chief Human Resource Officer (ROADS) (Water) Officer  Harvard graduate with  Qualified Chartered  24 years of experience in  Civil engin

  13. Slide 13: Robust Financial Metrics

    Robust Financial Metrics Revenues EBITDA Net Debt / Equity (x) 0.24 0.22 0.21 48% 0.11 5 years Revenue CAGR 0.04 0.02 0.02 17,600 13,069 17,394 11,840 14,102 9,972 2,916 2,589 2,567 1,070 1,978 1,801 1,819 785 FY17 FY18 FY19 FY20 FY21* FY22* H1FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 FY17 FY18 FY19

  14. Slide 14: Favorable Industry Dynamics

    Favorable Industry Dynamics NHAI Central Road Budget 2022 ~₹ 1.99 tn ~₹ 1,340 bn Bharatmala Pariyojana Fund 550 68% In FY22 133% In FY22 Districts 19 % Vision 2025 (NH Linkages) for Roads Total expenditure on Allocation towards To optimise efficiency of Increase in allocation for the Ministry of Roa

  15. Slide 15: Industry dynamics - Roads Sector

    Industry dynamics - Roads Sector Attractive Opportunities & Strong Policy Road Construction NHAI Awards and support Per Day (km) Execution (km)* 18,000 18% 6,306 Km 18% of projected infrastructure 4,788 National Highways to expand by 50 investment of ₹111 trillion in 18,000 km in 2022-23 4,325 4,218

  16. Slide 16: Industry dynamics - Water & Wastewater Sector

    Industry dynamics - Water & Wastewater Sector Urban Water & Sanitation - ₹ 12.6 tn capital expenditure to be Households with piped-water Additional supply in rural areas ₹ 3.3 tn spent in building Water Infrastructure (I N %) ₹ 600 bn (₹ TN) Will be spent in building Water Infrastructure Allocated f

  17. Slide 17: Financials

    Financials

  18. Slide 18: Business Highlights Q2 FY23

    Business Highlights Q2 FY23 Revenue 6,745 NHAI approved the following acquisition of the balance stake 5,096 4,672 from JV partners 2,800 2,155  51% stake in Chikhali-Tarsod Highways Private Limited (Chikhali-Tarsod HAM Project)  51% stake in RGY Roads Private Limited (Chutmalpur Ganeshpur & Roork

  19. Slide 19: Monetization of Operational Highway Portfolio

    Monetization of Operational Highway Portfolio Project Name Contract Authority Status ~₹ 60,000 Mn Type /Client Enterprise Value Delhi-Meerut Expressway (Pkg 1) HAM NHAI COD achieved # Excl. ~₹ 30,000 Mn Construction linked milestone / Chutmalpur-Ganeshpur HAM NHAI COD achieved grant payments receive

  20. Slide 20: Income Statement Snapshot - Standalone

    Income Statement Snapshot - Standalone Particulars (₹ Mn) Q2 FY23 Q2 FY22 YoY % H1 FY23 H1 FY22 YoY % Revenue from Operations 5,096 2,800 82% 11,840 6,242 90% Other Income 108 84 28% 272 179 52% Total Income 5,204 2,885 80% 12,112 6,420 89% EBITDA 573 338 70% 1,070 752 42% EBITDA margin 11.0% 11.7%

  21. Slide 21: Income Statement Snapshot - Consolidated

    Income Statement Snapshot - Consolidated Particulars (₹ Mn) Q2 FY23 Q2 FY22 YoY % H1 FY23 H1 FY22 YoY % Total Income 5,529 3,034 82% 12,684 6,678 90% EBITDA 702 389 80% 1,309 852 53% EBITDA margin 12.8% 13.0% (18) bps 10.4% 12.9% (248) bps PBT Before Exceptional Item 399 142 181% 734 373 97% Excepti

  22. Slide 22: Balance Sheet Snapshot - Standalone

    Balance Sheet Snapshot - Standalone Balance Sheet Snapshot (₹ Mn) 30th September 2022 31st Mar 2022 Net worth 19,307 18,942 Gross Debt 6,524 5,018 - Long Term Debt 6,007 5,018 - Short Term Debt (Working Capital Loan) 517 0 Cash & Cash Equivalents# 2,497 1,883 Net Debt / (Cash) 4,027 3,135 Other Long

  23. Slide 23: Welspun Group and CSR

    Welspun Group and ¢e _S@GSR 4

  24. Slide 24: Welspun Group overview

    Welspun USD 2.3 Bn USD 1.0 Bn 9 26,000+ Manufacturing Group Group Revenue Group Assets Workforce Net Fixed Assets Facilities in India, USA, and Saudi Arabia overview Global leader in Home Amongst world’s Robust portfolio of Integrated Grade-A Textiles largest Line-Pipe Roads & Water Infra Warehousin

  25. Slide 25: CSR initiatives

    CSR EDUCATION ENVIRONMENT EMPOWERMENT initiatives Our social mission is enshrined within the 3Es i.e. Education, Empowerment and Environment & Health Project Gyankunj Project Model Village Welspun Super Sports Women To enhance the teaching & learning To create a sustainable rural To identify and sup

  26. Slide 26: Awards, Accreditation & Accolades

    Awards, Accreditation & Accolades Appreciation by Letter of appreciation by Prime Minister of “Gold award” in excellence in Project Shri Nitin Gadkari, Union Minister India Shri Narendra Modi Management under PPP mode from MORTH Letter of appreciation by Fastest Growing Company – Annual Honorable Pa

  27. Slide 27: Appendix: Infrastructure Portfolio

    APPENDIX Infrastructure Portfolio 1. HAM: Delhi-Meerut expressway package 1 2. HAM: Chutmalpur - Ganeshpur & Roorkee-Chutmalpur – Gagalheri 3. HAM: Gagalheri- Saharanpur-Yamunanagar 4. HAM: Chikhali-tarsod 5. HAM: Package no. AM 2 6. HAM: Aunta - Simaria (Ganga Bridge with Approach Roads) 7. HAM: Sa

  28. Slide 28: Infrastructure Portfolio

    Infrastructure Portfolio Diversified infrastructure projects in roads and water Sr. No Project Name Contract Type Authority / Client Status ROAD 1 Aunta-Simaria HAM NHAI Under Execution 2 Sattanathapuram-Nagapattinam (SNRP) HAM NHAI Under Execution 3 Varanasi Aurangabad NH2 Project (VARP) EPC SIVAPT

  29. Slide 29: HAM Project details: Delhi-Meerut Expressway Pkg 1

    HAM Project details Delhi-Meerut Project Length (Kms) Award Date 8.716 Km Jan 2016 Expressway Pkg 1 Financial Closure Achieved Appointed Date 28th Nov 2016 Scheduled Construction Period 30 months SCOPE COD Date 28th June 2018 14 Lane expressway: Six-laning of Delhi – Meerut Expressway & Concession P

  30. Slide 30: HAM Project details: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri

    HAM Project details Chutmalpur-Ganeshpur Project Length (Kms) Acquisition Date 53.3 Km Jan 2018 & Roorkee-Chutmalpur- Financial Closure Achieved Gagalheri (CGRG) Appointed Date PCOD 28th Feb 2018 05th Aug 2020 Concession Period after COD 15 Years SCOPE 4-Laning of Chutmalpur- Ganeshpur section of NH

  31. Slide 31: HAM Project details: Gagalheri-Saharanpur-Yamunanagar

    HAM Project details Gagalheri- Project Length (Kms) Acquisition Date 51.5 Km Jan 2018 Saharanpur- Financial Closure Achieved Yamunanagar (GSY) Appointed Date PCOD 26th Jan 2018 31st Oct 2020 Completion Certificate 10th Feb 2022 SCOPE 4-Laning of Gagalheri- Concession Period after COD 15 Years Sahara

  32. Slide 32: HAM Project details: Chikhali-Tarsod

    HAM Project details Chikhali-Tarsod (CT) Project Length (Kms) Acquisition Date 62.7 Km Jan 2018 Financial Closure Achieved Appointed Date 16th Jan 2019 PCOD 25th Aug 2021 Concession Period after COD 15 Years SCOPE 4-laning of Chikhali – Tarsod (Package-IIA) section of NH-6 from km 360.0 to km 422.7

  33. Slide 33: HAM Project details: Maharashtra Amravati Pkg AM 2

    HAM Project details Maharashtra Amravati Project Length (Kms) Award Date 352.15 Km Nov 2018 (Pkg AM 2) Financial Closure Achieved Appointed Date 28th May 2019 SCOPE COD 30th July 2022 Upgradation of Roads in Maharashtra State or Two Laning Concession Period after COD 10 Years Road/ Two Laning Road w

  34. Slide 34: HAM Project details: Aunta-Simaria

    HAM Project details Aunta-Simaria Project Length (Kms) Acquisition Date 08.15 Km Aug 2018 (Ganga Bridge with Financial Closure Achieved Approach Roads) Appointed Date Scheduled Construction Period 30th Aug 2018 42 Months Concession Period after COD 15 Years SCOPE Six- Laning from Aunta-Simaria (Gang

  35. Slide 35: HAM Project details: Sattanathapuram-Nagapattinam

    HAM Project details Sattanathapuram- Project Length (Kms) Award Date 55.755 Km July 2018 Nagapattinam Financial Closure Achieved (SNRP) Appointed Date Scheduled Construction Period 5th Oct 2020 24 months Concession Period after COD 15 Years SCOPE 4 laning of Sattanathapuram to Nagapattinam (Design C

  36. Slide 36: BOT Project details: Mukarba Chowk-Panipat

    BOT Project details Mukarba Chowk – Project Length (Kms) 71.1 Km Panipat (MCP) Acquisition Date (Harmonious substitution) 8th June 2020 PCOD 31st March 2022 Commencement of Tolling Q1 FY23 SCOPE Concession End Date Oct 2033* 6 to 8 laning from Mukarba * Extension of up to 3.5 years possible dependin

  37. Slide 37: EPC Project details: Varanasi Aurangabad NH2

    EPC Project details Varanasi Aurangabad Project Length (Kms) 192.4 NH2 Project Original Contract Commencement Date 30th Sep 2021 (VARP) Construction Period 24 Months Additional Contract SCOPE Construction Start Date May 2022 Six laning of Varanasi – Aurangabad section of NH-2 from Construction End D

  38. Slide 38: EPC Project details: UP State Water and Sanitation Mission

    EPC Project details UP State Water and Project Scope Water Supply to Villages Sanitation Mission Est aggregate contract value ₹ 25,000 Mn SCOPE Rural Water Supply project under Jal Jeevan Mission by State Water S No. Revenue District No of Sanitation Mission UP, scope Division Villages includes Surv

  39. Slide 39: EPC Project details: Wastewater Treatment Facility - Mumbai

    EPC Project details Wastewater Treatment 60 Months for Design Build, Facility - Mumbai Contract period 15 years of operation and maintenance Sewage Disposal Welspun Enterprises 80% Project share in JV SCOPE Design, Build, Operation and Maintenance of 418 MLD Dharavi Status Wastewater Treatment Facil

  40. Slide 40: BOT Dewas Water

    BOT Dewas Concession Sector Project Name Location COD End Water Water Supply Dewas Water* MP Apr-20 Jun-37 *Dewas Water – Modified Project  Modified project involves the supply of treated water of up to 23 MLD to industrial customers in Dewas  FY22 revenue stands at ₹110 mn with EBITDA of ₹59 mn W

  41. Slide 41: Water segment order under execution

    ₹25,000 Mn worth order under execution Lead Partner in Joint Venture Empanelled by the UP-State Execution of EPC Projects of with Kaveri Infraprojects Limited, Water and Sanitation Mission, 2,544 villages for the Project of Hyderabad 70 : 30 Namami Gange and Rural Water Survey, Design, Preparation o

  42. Slide 42: Investment in Oil & Gas blocks: Potential value accretion

    Investment Block Name Location AWEL WEL Status in Oil & Gas Stake Effective Stake blocks: MB-OSN-2005/2 Mumbai 100.0% 35.0% AWEL drilled a well and had hydrocarbon Offshore discovery- potential GIIP 514 BCF (billion cubic feet) of gas . Further data evaluation Potential value studies have been compl

  43. Slide 43: For further details please contact

    Thank You For further details please contact CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED Welspun House, 5th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013, India E-mail: investorrelations_WEL@welspun.com Mr Abhinandan Singh, Head – Group Investor Relations +91 9820

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