Welspun Corp Limited · NSE:WELCORP
Welspun — Q1 FY23 Earnings Presentation
33 slides from Welspun's earnings presentation, Aug 4, 2022
Slide 1: Cover letter to stock exchanges
WCL/SEC/2022 August 4, 2022 To, BSE Ltd. National Stock Exchange of India Ltd. Department of Listing, (Symbol: WELCORP, Series EQ) P. J. Towers, Dalal Street, Mumbai – 400 001. Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 (Scrip Code: Equity - 532144), 051. (NCD – 948505, 960468, 9
Slide 2: Business Update: Robust Outlook for FY23
BUSINESS UPDATE Robust Outlook for FY23 Order Book for Line Pipes in excess of 1 Million MT August 4, 2022, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended June 30, 2022. Order Book for Line Pipes in exces
Slide 3: Business Update: Dividend and Business Outlook
BUSINESS UPDATE 7. Dividend The Board has recommended a final dividend of Rs. 5.00 per share which is 100% of the Face Value for FY22 and was paid after the AGM on 29 July, 2022. We have demonstrated a strong performance track record with average sales volume of more than a million MT in the last 5
Slide 4: Business Update: India gas demand
BUSINESS UPDATE India Gas demand prospects in India remain strong as the Government has set a target to raise the share of natural gas in the energy mix from the current 6.7% to 15% by 2030. According to IEA, India’s total gas consumption is projected to increase by 19% (13 bcm) during the 2021-2025
Slide 5: Business Update: US rig count and largest order
BUSINESS UPDATE After years of under-investment the US is focused on boosting oil and gas supply within the country. The number of active oil and natural gas drilling rigs in the United States rose by 272, or 56%, in the past year to the highest point since March 2020. Date of Last Change from Count
Slide 6: Business Update: Long steel and Welspun Specialty Solutions
BUSINESS UPDATE Under the Pradhan Mantri Awas Yojana-Urban's (PMAY-U) 'Housing for All' mission, central assistance has been provided to states and Union Territories (UTs) since 2015 for giving all-weather “pucca” houses to eligible urban beneficiaries including homeless people. Based on project pro
Slide 7: Business Update: Acquisition of Sintex BAPL NCDs
BUSINESS UPDATE cutting-edge technology, and will include Blast Furnace, Sinter Plant, PCI & Oxygen Plant, Coke Oven, besides a 400,000 MT per annum capacity DI pipe plant. The TMT bar manufacturing facility has a capacity of 350,000 MT per annum. We have an existing manufacturing set-up of BIS Cert
Slide 8: Business Update: DI pipes and stainless steel demand
BUSINESS UPDATE Other focus areas for us to support the clean energy transition include: Carbon Capture & Emission Reduction Technologies Green Steel with Lowest Carbon Footprint Possible Investment in Renewables to meet Carbon Reduction Targets B) DI Pipes The Jal Shakti Ministry was allocate
Slide 9: Business Update: B2C diversification and ESG initiatives
BUSINESS UPDATE The diversification into the B2C segment will help WCL to significantly expand its base, enhance its brand, penetrate new markets, build a distribution network and provide opportunities to develop new products. Sintex BAPL is popular for Water Storage Tanks, which have a strong brand
Slide 10: Management Comments
BUSINESS UPDATE Management Comments “I am very proud of the team who have delivered the Steel Complex and our TMT bar facility. They stayed on course with their purpose and delivered these world class facilities despite multiple external challenges. We are keen to contribute to India’s growth story
Slide 11: Consolidated Performance Snapshot
BUSINESS UPDATE Consolidated Performance Snapshot Sales Volumes Q1FY23 Q4FY22 Q1FY22 FY22 Line Pipes (KMT) 157 269 175 796 Billets (KMT) 36 18 45 112 SS Bars (MT) 1,557 1,248 142 1,531 SS Pipes (MT) 692 1,160 358 2,915 Figures in Rs. Cr Consolidated Profit & Loss Account Q1FY23 Q4FY22 Q1FY22 FY22 Co
Slide 12: Conference call details and About Welspun Corp
BUSINESS UPDATE Q1 FY23 Investor & Analyst conference call: Friday, 5th August 2022 | Time: 10:00 AM IST Primary Access: +91 22 6280 1325 / +91 22 7115 8226 International Toll-Free numbers o Hong Kong: 800 964 448 o Singapore: 800 1012 045 o UK: 0808 101 1573 o USA: 1866 746 2133 About Welspun C
Slide 13: Welspun Corp Limited Q1 FY23
Welspun Corp Limited Investor Presentation | Q1 FY23
Slide 14: Disclaimer
Disclaimer For any financial disclosures, the information contained herein is provided by Welspun Corp 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 su
Slide 15: Q1 FY23 at a Glance
Q1 FY23 at a Glance Pipes Other Verticals Production (Line Pipes) Sales (Line Pipes) Sales (Billets) Sales (SS Pipes) 158 KMT 157 KMT 36 KMT 692 MT Order Book (Line Pipes) Active Bids – Outlook Sales (SS Bars) (Line Pipes) 1,020 KMT 1,930 KMT 1,557 MT Note: Pipe Sales & Production volumes and Order
Slide 16: Financial Results for Q1 FY23
Financial Results for Q1 FY23 Particulars (Rs Cr) Q1FY23 Q4FY22 QoQ Q1FY22 YoY Total Revenue from Operations 1,322 2,011 -34.3% 1,510 -12.5% Other Income 73 402 -81.9% 37 96.0% Reported EBITDA 102 474 -78.6% 207 -50.8% Depreciation and Amortisation 61 63 -3.4% 64 -3.9% Finance Cost 31 30 2.1% 22 40.
Slide 17: Financial Performance
Financial Performance Consistent Performance has resulted in a Strong Balance Sheet Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 7,153 6,505 1,322 EBITDA (INR cr) 919 844 951 891 737 815 708 1,276 1,152 1,023 10
Slide 18: Sales Volume Mix: Line Pipes
Sales Volume Mix: Line Pipes 764 635 646 632 650 629 626 578 510 506 500 393 413 423 236 255 217 265 222 254 180 237 197 123 190 165 99 138 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 India (KMT) USA (KMT) Saudi (KMT) Investor Presentation 6
Slide 19: Business Outlook
Business Outlook Line Pipes India continues to be strong, both in O&G & Water sectors, with strong emphasis on creating an O&G pipeline network across the country. Also water distribution network and irrigation is a key priority. Further, CGD connectivity will provide a huge impetus for ERW pipes. A
Slide 20: Strategy for Long Term Value Creation
Strategy for Long Term Value Creation 1 Business Growth & Diversification to improve Earnings Predictability and Enhance Margins 2 Building Resilience: Maintain Robust Balance Sheet 3 Accelerate ESG Initiatives 4 Enhancing Returns through Prudent Capital Allocation Investor Presentation 8
Slide 21: WCL as "it was": High Quality Line Pipe Business
WCL as “it was”: High Quality Line Pipe Business Top Among Line Pipe Manufacturers globally 3 50+ Approvals from O&G majors; Qualifies for global bidding 15+ Pipes delivered since inception with multiple repeat orders MN MT 6 manufacturing facilities Used in Oil & Gas, Water 2.55 mn MT Pipes Capacit
Slide 22: Approvals & accreditations: Line Pipes
Approvals & accreditations: Line Pipes Oil & gas Transportation Others Investor Presentation 10
Slide 23: Diversification of Steel Business: Solid Platform for Higher Value Products and B2C
Diversification of Steel Business: Solid Platform for Higher Value Products and B2C Initiatives • Global Leadership Position in this Segment Large Diameter • Focus on expanding customer base and presence Existing Pipes Business • No Capex spend apart from regular maintenance • Greenfield Project at
Slide 24: Our Manufacturing Facilities
Our Manufacturing Facilities Capacity 1) India US Saudi Arabia Total Products / City Anjar Dahej Mandya Bhopal Jhagadia Little Rock Dammam LSAW 350 350 700 HSAW 250 50 150 305 350 375 1,480 ERW/ HFIW 200 175 375 Line Pipes (KMT) 1,655 525 375 2,555 TMT Bars (KMT) 350 350 DI Pipes (KMT) 400 400 SS Ba
Slide 25: WCL "The Way Forward": Business Growth & Diversification Strategy
WCL “The Way Forward”: Business Growth & Diversification Strategy Existing New Planned Business Large Pig Iron and DI Plastic Diameter Pipe Specialty Steel Billets & TMT1) Pipes Products and Coating Amongst the One of the Integrated One of the Acquisition2) Top largest producer from largest players
Slide 26: New & Planned Acquisitions
New & Planned Acquisitions Plastic Products • National Brand with >10% market share (Year: 2018) in India • Extensive Distribution (~ 900) and Retail (~ 13,000) Network Transition to B2C • Potential Synergy of leveraging this Distribution Platform within the group (Building Materials) Distribution B
Slide 27: Rationale for Business Growth & Diversification Strategy
Rationale for Business Growth & Diversification Strategy • Earnings predictability, stronger revenue and improved competitiveness with business diversification. Strong presence in the B2C segment. • Dominant presence across each product segment. • Greater economies of scale will provide a larger and
Slide 28: Capital Allocation at WCL
Capital Allocation at WCL • Strong Cash Flows used for Deleveraging, Reinvesting for Growth and Rewarding Shareholders INR Cr FY18 FY19 FY20 FY21 FY22 Cash from Operations 981 623 648 774 219 FY22 excludes Cash Flow impact of Gain of Rs.359 crores in “Other Income” from the Saudi IPO & proceeds from
Slide 29: Towards a Cleaner & Greener Tomorrow
Towards a Cleaner & Greener Tomorrow Hydrogen Gas Transportation • First Indian company to have joined the H2Pipe Joint Industry Project on hydrogen pipelines • Collaborating with 24 of the world’s premier energy companies • Developing the world’s first guideline for the transportation of hydrogen g
Slide 30: Our ESG Journey
Our ESG Journey Environmental & Social Detailed Benchmarking Mapping universe of Arrive at baseline Formulation of a Public reporting and versus peers on ESG issues, objectives and scenario in line with strategic roadmap disclosures of ESG factors risk and prioritizing WEF metrics and outlining key
Slide 31: Sustainability Targets
Sustainability Targets Aspects FY 2020-21 Goal 2025 Goal 2030 Goal 2040 Carbon Neutrality 10% RE 20% RE Carbon neutral - % Renewable Energy (RE) Water Neutrality 0.63 KL/MT 0.55 KL/MT 0.40 KL/MT Water neutral - Water Intensity Zero waste to Waste to Landfill 1.53 MT 1.00 MT 0 MT landfill Impacting L
Slide 32: ESG Initiatives
ESG Initiatives ‒ MoU with BP India Pvt Ltd. to jointly explore carbon emission mitigation and reduction opportunities in WCL’s energy, logistics, mobility and waste management activities ‒ Published first Business Responsibility and Sustainability Report (BRSR) as a best practice in the industry ‒
Slide 33: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan gaurav_ajjan@welspun.com October 2020