Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q3 FY22 Earnings Presentation
48 slides from Welspun Enterprises's earnings presentation, Feb 2, 2022
Slide 1: Stock exchange cover letter for investor presentation
WEL /SEC/2022 February 2, 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, Sub.: Inve
Slide 2: An Infra Player with a Difference
An Infra Player with a Difference WELSPUN ENTERPRISES LIMITED FEBRUARY 2022
Slide 3: Safe Harbor
Safe 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 change
Slide 4: Key investment highlights
Key investment highlights Welspun Group Sunrise Infra Hybrid Annuity Welspun Asset Light comes with vast Sector Model (HAM) Enterprises Model experience of ~ ₹111 trillion capital Opportunity Focused as a Focused on Nurturing expenditure in developer with Execution businesses Win-win model i
Slide 5: Welspun Group
Welspun Group Comes with vast experience of • Nurturing businesses • Executing marquee projects • Investing & timely value unlocking Welspun Group overview 05
Slide 6: Welspun Group overview
Welspun 9 USD 2.7 Bn USD 1.0 Bn Manufacturing 26,000+ Group Revenue Group Assets Workforce Group Net Fixed Assets Facilities in USA, Arabia and India, Saudi overview Global leader in Amongst world’s Robust portfolio of Integrated Grade-A Home Textiles largest Line-Pipe Roads & Water Infra Warehousin
Slide 7: Sunrise Infra Sector
Sunrise Infra Sector ~ ₹111 trillion capital expenditure in infrastructure sector during FY20-25 as per NIP report Road sector to get strong thrust from 07 government Water sector – key focus area for 09 government
Slide 8: Road sector - Strong thrust from government
Road sector Sector wise break up of Capex of ₹111 trillion in Sector wise share in the NIP for Road - Strong NIP during FY20-25 (IN %) sector (IN %) 18% thrust from 24% 18% 17% 39% P R I VAT E 25% CENTRE of projected infrastructure government ENERGY ROADS URBAN investment is in the Roads sector 08%
Slide 9: Road sector - Strong thrust from government
Road Vision 2025 for Roads sector- Development of 60,000 km of NH - 2,500 km of Higher penetration of advanced technology Significantly higher share of the private sector in NH Last-mile connectivity - improved access to all remote areas after the Strong Expressways, 9,000 km of Economic corridors,
Slide 10: Water sector - key focus area for government
Water sector- Urban Water & Sanitation - Additional key focus area for ₹ 3.3 trillion government Will be spent in building Water Infrastructure ₹12.6 trillion capital Households with piped-water expenditure to be spent in supply in rural areas Government’s building Water Infrastructure Mission: (₹ T
Slide 11: Welspun Enterprises
Welspun Enterprises • Robust order book provides strong visibility • Diversification into Water segment derisks business model • Demonstrated operational excellence • Financial strength Robust road portfolio 11 Strong platform set for future growth 12 ₹25 bn worth orders pouring into EPC water segme
Slide 12: Robust road portfolio
Robust road Financial Strength portfolio: Robust order book Among very Strong Banking ₹ 122+ billion, provides strong visibility Few Infra Developers Relationship ~700 km with... ₹ 76.8 Bn# With credit rating: Ensures early financial Long term AA- closure at optimal Short term A1+ rates Operational
Slide 13: Strong platform set for future growth
Strong Continuously building Current order book at platform Road and water portfolio through bid / buy strategy ~₹76.8 billion set for for profitable growth future As on December 2021 (IN %) growth 33% WATER EPC 30% EPC of HAM (NHAI) 67% ROAD Order book Rs Cr 2% EPC of Through SPVs 3,095 HAM (PWD) O
Slide 14: ₹25 Bn worth order under execution in water segment
₹25 Bn worth order under Lead Partner in Joint Venture Empanelled by the UP State Execution of EPC Projects of execution with Kaveri Infraprojects Limited, Hyderabad 70 : 30 Water and Sanitation Mission, Namami Gange and Rural 2,544 villages for the Project of Survey, Design, Preparation of in EPC W
Slide 15: Operating leverage to improve margins
Operating Revenues and Operating EBITDA (₹ Mn) 08 leverage to 12.10% 12.20% 12.40% FY21 revenue contributed by improve 8 Road projects 17,600 9.50% 17,394 margins 14,102 48% 9,972 5 years Revenue CAGR 2151 2105 1742 951 2,916 -5.60% Operations -162 impacted FY17 FY18 FY19 FY20 FY21 FY 21 operations
Slide 16: With undivided focus on shareholder value creation
With Shareholding Pattern (as on 31st December 2021) Market Statistics undivided As on Dec 31, 2021 INR Price per share (Face value ₹ 10 per share) 100.44 focus on No of Shares outstanding (Mn) – (Q3FY22) 149.0 shareholder Market Capitalization (Mn) 14,966 value creation Creating Shareholder value
Slide 17: Through an experienced Board and Management: Board of Directors
Through an Board of Directors experienced B. K. Goenka CHAIRMAN Rajesh Mandawewala Sandeep Garg MANAGING Dipali Goenka NON-EXECUTIVE Board and DIRECTOR DIRECTOR Amongst India’s most GROUP MD dynamic businessmen; Harvard Graduate Graduate in Psychology Qualified Chartered Past President with
Slide 18: Through an experienced Board and Management: Management Team
Through an Management Team experienced Sandeep Garg MANAGING DIRECTOR Ajay Hans CHIEF EXECUTIVE OFFICER Sanjay K Sultania CHIEF FINANCIAL OFFICER Yogen Lal HEAD- WATER BUSINESS Asim Chakraborty CHIEF OPERATING Board and OFFICER- COO Graduate in A Chartered Civil engineer with (SPL. PROJECTS) H
Slide 19: Asset Light Model
Asset Light Model • Focused on Execution Excellence • Minimal Plant & Machinery • Low Working Capital • Continuous asset value unlocking • Low Leverage One of its kind asset light model 19 Creating value through a profound strategy 21 Delhi Meerut E-way validating our differentiated strategy 22 Appr
Slide 20: One of its kind asset light model
One of De-risked execution model its kind Strong presence across segments (HAM, EPC and BOT) and across sectors Undertakes only High Value Added Activities Value unlocking from assets asset light (water and road) during Execution model Diversified Infra portfolio Construction completely Unlock
Slide 21: Buying assets – Welspun Enterprises' turnaround record
Buying assets – Welspun Enterprises’ Turnaround Record – 4 projects till date Achieving financial 1) Gagalheri-Saharanpur- Yamunanagar (GSY) 3) Chikhali-Tarsod (Package-IIA) 4) Mukarba Chowk – Panipat Toll Roads Limited closures, 2) Chutmalpur-Ganeshpur & Roorkee-Chutmalpur- Executing and Gagalheri
Slide 22: Creating value through a differentiated strategy
Creating value Bid for Achieve early Award Project through differentiated financial closure construction to Management projects/ Buy Strong Balance best suited Consultancy distressed sub-contractor a Sheet Rigorous projects Reduced finance Reduce execution monitoring Lower competition cost
Slide 23: Delhi Meerut E-way: Validating our differentiated strategy
Delhi MeerutLaying of foundation stone Inauguration of completed project E-way: Validating our differentiated strategy Engineering Marvel of India - DME India’s FIRST 14-Lane India’s FIRST Green India’s FIRST COMPLETED Expressway Expressway HAM project – 332 Days ahead of schedule Engineering Marvel
Slide 24: Letter of appreciation by Prime Minister of India
Letter of appreciation by Prime Minister of India Shri Narendra Modi WELSPUN ENTERPRISES LIMITED 23
Slide 25: Letter of appreciation by Honorable Parliamentarian
Letter of appreciation by Honorable Parliamentarian WELSPUN ENTERPRISES LIMITED 24
Slide 26: Appreciation by Shri Nitin Gadkari, Union Minister
Appreciation by Shri Nitin Gadkari, Union Minister WELSPUN ENTERPRISES LIMITED 25
Slide 27: Building much more than an expressway
Building Vertical garden developed along the entire bridge much more 40,000+ Trees than an transplanted and retained existing trees expressway 3,230 Solar Beautification Panels Initiatives Electrification through solar power of Wall art & replicas of famous monuments 1,050 kWp WELSPUN ENTERPRISES LI
Slide 28: 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 To enhance the teaching & learning To create a sustainable rural Women process for teacher
Slide 29: Financials
Financials Income Statement - Standalone 29 Balance Sheet Snapshot - Standalone 30 Key Strengths 31 Way forward 32
Slide 30: Income statement - standalone
Income statement - standalone Particulars (₹ Q3 FY22 Q3 FY21 YoY % Q2 FY22 QoQ % 9MFY22 9MFY21 YoY% Crore) Revenue from Operations 215.5 407.3 -47.1% 280.0 -23.0% 839.7 905.6 -7.3% Other Income 9.5 7.7 23.3% 8.5 12.8% 27.4 27.4 0.0% Total Income 225.0 415.0 -45.8% 288.5 -22.0% 867.1 933.0 -7.1% EBIT
Slide 31: Balance sheet snapshot - standalone
Balance sheet snapshot - standalone Balance Sheet Snapshot (₹ crore) 31st Dec 2021 30th Sept 2021 Net worth 1,840 1,834 Gross Debt 493 500 - Long Term Debt 493 485 - Short Term Debt 0 15 Cash & Cash Equivalents# 175 343 Net Debt / (Cash) 318 157 Other Long-Term Liabilities 35 37 Mobilisation advance
Slide 32: Key Strengths
Key Strengths Well Positioned to Benefit Unique Position with Strong Strong Order book providing from India’s Economic Growth Financials to tap Infra visibility for next couple of & Development Opportunities years Asset light business model in Demonstrated Operational Focus on Sustainable and Infra
Slide 33: Way forward
Way forward Continue approach of Selectively evaluating EPC, Apart from NHAI, WEL is also prudent bid/buy strategy to BOT (Toll) projects and evaluating road HAM projects strengthen Road and Water secondary acquisition of State and Municipal portfolio opportunities agencies Divest/securitise complet
Slide 34: Thank You
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 FEBRUARY 2022
Slide 35: Appendix: Welspun Enterprises infrastructure portfolio
APPENDIX Welspun Enterprises infrastructure portfolio 35 1. HAM: Delhi-Meerut expressway package 1 36 2. HAM: Gagalheri- Saharanpur- Yamunanagar 37 3. HAM: Chutmalpur - Ganeshpur & Roorkee-Chutmalpur - Gagalheri 38 4. HAM: Aunta - Simaria (Ganga Bridge with Approach Roads) 39 5. HAM: Chikhali-tarsod
Slide 36: Infrastructure Portfolio
Infrastructure Portfolio Robust portfolio Project Name Type Contract Authorit Status Type y / Client of 11 Delhi-Meerut Expressway (Pkg 1) Road HAM NHAI Completed; 7th Annuity Received infrastructure Gagalheri-Saharanpur-Yamunanagar Road HAM NHAI 2nd annuity received projects in roads Chutmalpur-Gan
Slide 37: HAM: Delhi-Meerut Expressway package 1
HAM Project details Delhi-Meerut Project Length (Kms) Award Date 8.716 Km Jan 2016 expressway package 1 Financial Closure Achieved Appointed Date 28th Nov 2016 Scheduled Construction Period 30 months COD Date 28th June 2018 SCOPE 14 Lane expressway: Six-laning Concession Period after COD 15 Years of
Slide 38: HAM: Gagalheri-Saharanpur-Yamunanagar
HAM Project details Gagalheri- Project Length (Kms) Acquisition Date 51.5 Km Jan 2018 Saharanpur- Financial Closure Achieved Yamunanagar Appointed Date PCOD 26th Jan 2018 31st Oct 2020 Concession Period after COD 15 Years SCOPE 4-Laning of Gagalheri- Saharanpur-Yamunanagar section of NH-73 in UP / H
Slide 39: HAM: Chutmalpur-Ganeshpur & Roorkee-Chutmalpur-Gagalheri
HAM Project details Chutmalpur-Ganeshpur Project Length (Kms) Acquisition Date 53.3 Km Jan 2018 & Roorkee- Financial Closure Achieved Chutmalpur- Appointed Date PCOD 28th Feb 2018 05th Aug 2020 Gagalheri Concession Period after COD 15 Years SCOPE 4-Laning of Chutmalpur- Ganeshpur section of NH-72A &
Slide 40: HAM: Aunta-Simaria (Ganga Bridge with Approach Roads)
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
Slide 41: HAM: Chikhali-Tarsod
HAM Project details Chikhali-Tarsod 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 in Ma
Slide 42: HAM: Package no. AM 2
HAM Project details Package no. AM 2 Project Length (Kms) Award Date 352.15 Km Nov 2018 Financial Closure Achieved SCOPE Upgradation of Roads in Appointed Date 28th May 2019 Maharashtra State or Two Laning PCOD 11th Nov 2021 Road/ Two Laning Road with paved shoulder under MRIP Concession Period afte
Slide 43: BOT: Sattanathapuram-Nagapattinam
BOT Project details Sattanathapuram - Project Length (Kms) Award Date 55.755 Km July 2018 Nagapattinam Financial Closure Achieved Appointed Date 5th Oct 2020 Scheduled Construction Period 24 months Concession Period after COD 15 Years SCOPE 4 laning of Sattanathapuram to Nagapattinam (Design Ch Km 1
Slide 44: BOT: Mukarba Chowk – Panipat
BOT Project details Mukarba Chowk – Project Length (Kms) Acquisition Date (Harmonious 71.1 Km Panipat 8th June 2020 substitution) Financial Closure Achieved Scheduled Construction Period 15 months from substitution SCOPE Commencement of Tolling Q3FY22E 6 to 8 laning from Mukarba Chowk at Km 15.5 and
Slide 45: EPC: Varanasi Aurangabad NH2 Project
EPC Project details Varanasi Aurangabad Project Length (Kms) Construction Period 136* 24 Months NH2 Project Commencement Date 30th Sep 2021 * Current scope-136 Km ;additional scope of 44 km is under discussion SCOPE Six laning of Varanasi – Aurangabad section of NH-2 Major Structures from km 786.00
Slide 46: EPC: UP State Water and Sanitation Mission
EPC Project details UP State Water and Project Scope Water Supply to Villages Sanitation Mission LOA Date Contract Execution Date 13-Jan-21 17-Mar-21 Scheduled Construction Period 21 Months Commercial Operational Date 29-Oct-23 SCOPE Est aggregate contract value ₹ 25,000 Mn Rural Water Supply projec
Slide 47: Other BOT projects summary
Other BOT projects Sector Project Name Location External Debt on books COD Concession End summary Highways Himmatnagar Bypass Gujarat (March-21) - Apr-06 Aug-20 Experience & Water Supply Dewas Water* MP 473 Apr-20 Jun-37 expertise of successfully Total 473 operating water project and 500+ kms of roa
Slide 48: Investment in Oil & Gas blocks: potential value accretion
Investment Block Name Locatio n AWEL Stake WEL Effective Status in Oil & Gas MB-OSN- Mumbai 100% Stake 35% AWEL drilled a well and had hydrocarbon blocks: 2005/2 Offshore discovery- potential GIIP 514 BCF (billion cubic feet) of gas . Further data evaluation studies have been completed. Resource and