Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Q4 FY24 Earnings Presentation
33 slides from Welspun Living's earnings presentation, Apr 25, 2024
Slide 1: Regulation 30 disclosure cover letter to exchanges
WLL/SEC/2024 April 25, 2024 BSE Limited National Stock Exchange of India Limited Department of Corporate Services, Listing Compliance Department SP. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 (Scrip Code-514162) (Symbol: WELSPUNLIV) D
Slide 2: Earnings Presentation Welspun Living Limited Q4 FY24
Earnings Presentation Welspun Living Limited Home Textile | Advance Textile | Flooring Q4 FY24 April 2024 NSE/BSE: WELSPUNLIV Bloomberg: WLSI:IN Reuters: WLSP.NS
Slide 3: Inside this Presentation
Inside this Presentation Executive Summary 03 Management Commentary 04 Awards & Recognition 05 Global Presence 06 Key Highlights 07 Quarterly summary 08 FY24 summary 09 Operational Highlights 13 Quarterly Segment Results 17 Profit & Loss Summary 19 Financial Statements Summary 20 ESG at Welspun 22 S
Slide 4: Welspun Living - Global Home Textiles Leader
WELSPUN LIVING - GLOBAL HOME TEXTILES LEADER Multipronged Welspun Living Ltd (WLL), E-Commerce ESG Focused part of $3.6 bn Welspun Group, is a Strategy to organization with global leader in the Home Textiles accelerate growth & capture well-defined landscape. With a strong global principles, Diversi
Slide 5: Management Commentary
MANAGEMENT COMMENTARY “It is with great pride that we share that the company has achieved its highest ever quarterly and yearly revenues in Q4 and FY24, with a massive growth of 19% in the quarter & 20% yearly with sustainable EBITDA of 15.4% for FY24, growing by 73% over last year. Our ROCE has imp
Slide 6: Awards & Recognition
AWARDS & RECOGNITION Feathrs in our cap Best Managed Company by Ms. Dipali Goenka Ms. Dipali Goenka featured Welspun Living Limited has been Won “Supplier of the year” certified as a Great Place to Work! Deloitte – won in 2 years in a featured among the list amongst the most influential award 2023 f
Slide 7: Strong Global Presence
STRONG GLOBAL PRESENCE KEY CUSTOMER PARTNERSHIP North America UK & Europe India ROW Over 50 IKEA Countries Presence welspunliving.com 6
Slide 8: Key Highlights
KEY HIGHLIGHTS Brands ESG Innovation C lick the Ico ns to k no w m o re Total Income EBITDA Q4 ₹ 26,167mn grew 19.2% YoY (Highest Q4 ₹ 4,001 mn @ 15.3% grew 25.0% YoY ever quarterly revenue) FY24 ₹ 98,251 mn grew 19.6% YoY (Highest FY24 ₹ 15,147 mn @ 15.4% grew 73.3% YoY ever yea
Slide 9: Quarterly Highlights
QUARTERLY HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 26,167 4,001 2,521 1,460 4,296 Growth (YoY) 19.2% 25.0% 45.5% 16.4% 73.2% Growth (QoQ) 6.6% 4.8% 5.2% (17.4%) 56.5% Margin (%) 15.3% 9.6% 5.6% Margin Expansion (Y-o-Y) 71 bps 174 bps (13 bps) Margin Expansion (Q-o-Q) (27 bps) (13 bp
Slide 10: FY24 Highlights
FY 24 HIGHLIGHTS (₹ Million) Revenue EBITDA PBT PAT Cash Profit 98,251 15,147 9,668 6,811 12,398 Growth (YoY) 19.6% 73.3% 220.3% 242.6% 83.4% Margin (%) 15.4% 9.8% 6.9% Margin Expansion (Y-o-Y) 478 bps 617 bps 451 bps EPS/CEPS 7.06 12.76 welspunliving.com 9
Slide 11: Quarterly Highlights (balance sheet)
QUARTERLY HIGHLIGHTS (₹ Million) Particulars 31-Mar-24 31-Mar-23 31-Dec-23 Net Worth 45,158 40,878 43,795 Short Term Loans 15,665 12,342 15,187 Net Debt / Equity Long Term Loans 9,540 11,162 9,852 (x) Gross Debt 25,205 23,504 25,038 1.00 0.80 Cash & Cash Equiv. 11,663 8,161 9,622 0.60 0.40 Net Debt
Slide 12: Sales Highlights – Channel Wise
SALES HIGHLIGHTS – CHANNEL WISE (₹ Million) Revenue B2B Branded# Global* Global* Domestic Domestic Innovation Others Online Offline Online Offline Q4 FY24 6,902 9,100 1,309 495 3,918 10 1,255 Sales Contribution (%) 30% 40% 6% 2% 17% 0% 5% Q3 FY24 4,002 12,351 1,293 580 1,729 40 1,575 Sales Contribut
Slide 13: Sales Highlights – Business Wise
SALES HIGHLIGHTS – BUSINESS WISE (₹ Million) Revenue Flooring Business Home Textile Business Advanced HT - B2B HT – Branded HT - E-Com Flooring – B2B Flooring – Branded Textiles Q4 FY24 14,660 4,728 505 1,215 1,440 445 Sales Contribution (%) 64% 21% 2% 5% 6% 2% Q3 FY24 14,729 2,909 620 1,234 1,685 3
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Utilization Particulars UOM Q4FY24 Q3FY24 Q4FY23 Capacity (%) (%) (%) Bath Linen MT 90,000 19,877 88% 18,933 84% 14,948 66% Bed Linen Mn mtrs 108 21.3 79% 16.0 59% 14.7 54% Home Rugs & Carpets Mn sq mtrs 12.0
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS Manufacturing Capacity & Utilization Annual Utilization Utilization Particulars UOM FY24 FY23 Capacity (%) (%) Bath Linen MT 90,000 78,003 87% 56,397 63% Bed Linen Mn mtrs 108 74.5 69% 55.2 51% Home Rugs & Carpets Mn sq mtrs 12.0 10.5 88% 7.2 60% Textile Spunlace MT 27,729 16,
Slide 16: Enhancing Capacity; Tapping Opportunity
ENHANCING CAPACITY; TAPPING OPPORTUNITY JACQUARD TOWEL FACILITY BROWNFIELD Location Anjar o Increased Market penetration in Beach & Fashion Category Additional Capacity 6400 MTPA o Category Expansion in Kitchen and Bath robes to offer one stop Additional Revenue Potential – FY 26 ₹ 400 cr solution 1
Slide 17: Quarterly Profit & Loss
QUARTERLY PROFIT & LOSS (₹ Million) Particulars Q4FY24 Q4 FY23 YoY Change Q3FY24 QoQ Change Total Income 26,167 21,955 19.2% 24,539 6.6% EBITDA 4,001 3,201 25.0% 3,819 4.8% EBITDA Margin (%) 15.3% 14.6% 71 bps 15.6% (27 bps) Finance Cost 518 333 55.7% 419 23.6% Depreciation 962 1,135 (15.2%) 1,004 (
Slide 18: Quarterly Segment Results
QUARTERLY SEGMENT RESULTS (₹ Million) Revenue Segmentation (%) YoY QoQ YoY Particulars Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Change Change Change Q4 FY24 Home Textile Revenue 24,217 20,171 20.1% 22,514 7.6% 90,630 76,381 18.7% EBITDA 3,640 2,930 24.2% 3,470 4.9% 13,827 7,984 73.2% EBITDA Margin 15.0% 14
Slide 19: Summary of Financial Statements
Summary of Financial Statements Welspun Experience Centre, Hyderabad 18
Slide 20: Profit & Loss Summary
Profit & Loss Summary (₹ Million) Particulars FY20 FY21 FY22 FY 23 FY 24 Total Income 68,362 74,080 93,773 82,151 98,251 Growth YoY* % 3.4% 8.4% 26.6% (11.4%) 19.6% EBITDA 13,098 14,198 14,246 8,739 15,147 EBITDA Margin 19.2% 19.2% 15.2% 10.6% 15.4% Depreciation 4,811 4,536 4,205 4,421 3,945 Finance
Slide 21: Balance Sheet Summary
Balance Sheet Summary (₹ Million) Particulars 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 Net Worth 29,721 36,447 39,717 40,878 45,158 Short Term Loans 17,717 17,452 19,742 12,342 15,665 Long Term Loans 16,704 10,962 12,142 11,162 9,540 Gross Debt 34,421 28,414 31,884 23,504 25,205 Cash & Cash
Slide 22: Ratios Summary
Ratios Summary FY20 FY21 FY22 FY23 FY24 Net Debt/Equity 1.00 0.64 0.56 0.38 0.30 Solvency Net Debt/EBITDA 2.26 1.64 1.56 1.76 0.90 ratios EBIT/Interest 4.66 4.89 7.65 3.32 7.30 Current ratio 1.19 1.33 1.37 1.66 1.72 Fixed asset turnover 1.77 1.93 2.33 2.14 2.63 Total asset turnover 0.81 0.85 0.99 0.
Slide 23: Welspun ESG Way: Encompassing All Stakeholders
WELSPUN ESG WAY: ENCOMPASSING ALL STAKEHOLDERS Environmental Social Governance Welspun is going through Implemented ISO 14001 Engaged with Cotton Farmers Board Committee on ESG a major transformation where we are Environmental Management to grow sustainable Cotton embedding sustainability and
Slide 24: Sustainability Initiatives – Growing Business Responsibly
SUSTAINABILITY INITIATIVES – GROWING BUSINESS RESPONSIBLY W elsp u n L i v i ng ’s S ust ai n a bil it y c as e s t ud y i s no w a p a r t o f a c u rr ic u l u m a c ro ss u n i v e rsiti es in US, Canada, France, Europe and Taiwan.” Sustainalytics DJSI ratings Crisil ratings W elsp u n Li v i
Slide 25: Sustainability – Progress Against Targets
SUSTAINABILITY – PROGRESS AGAINST TARGETS Aspects FY 24 Goal 2025 Goal 2030 Carbon Neutral (measured as % RE) 10.4% 20% RE 100% RE 100% Sustainable Cotton 81% 50% 100% Fresh Water Positive in Production 11.2KL/MT 5KL/MT 0KL/MT operations Zero hazardous waste to Landfill (ETP 62.8 MT 0 MT 0 MT chemic
Slide 26: Share Holding Summary
SHARE HOLDING SUMMARY Shareholding Pattern (Mar 2024) Top Institutional Shareholders Promoter Group 70.5% LIC of India FPIs 7.1% HSBC Mutual Fund Mutual Funds/AIF 2.1% Aditya Birla Sunlife MF Insurance Co’s 3.3% Nippon Mutual Fund Public 15.9% Bank of India Mutual Fund Other 1.0% welspunliving.com 2
Slide 27: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Welspun Living 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 28: Let’s connect
Let’s connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun Living Limited sanjay_gupta1@welspun.com Mr. Salil Bawa Group Head – Investor Relations Salil_bawa@welspun.com Connect with us: /TheWelspunworld /WelspunWorld /welspungroup /company/welspunworld
Slide 29: Annexure
Annexure:
Slide 30: Owned Brands – Domestic
Diversified Product Portfolio OWNED BRANDS – DOMESTIC BED LINEN BATH LINEN Bedsheets Towels Comforters Bath mats Dohars Bath robes Pillow covers Brand Positioning Premium Mass Thoughtfulness RUGS FLOORING SOLUTIONS Presence 20,282+ outlets (9,112+ in 24) Door mats Click & Lock tiles 2,400+
Slide 31: Retail Journey
RETAIL JOURNEY Campaign with Akshay Kumar Brand Welspun - most distributed brand, HT CSO Campaign Launched Reached Rs 100 Cr launched for Brand Welspun crossed 200 cr Spaces Turnover consumer Re-launch of EBO brand engagement (SPACES) 2004 2008 2016 2018 2019 2022 2024 3% 5% 7% Launc
Slide 32: Domestic Consumer Business Buildup
DOMESTIC CONSUMER BUSINESS BUILDUP Awards Innovation: Highest Distributed 75% Districts • 2-in-1 Sheet Brand Welspun Brand in HT Share of Presence in shelf: >=15% MBO; • Quik Dry Towel ~500/640 >= 40% Large format • Wonderful sheet Make in India: Presence: 20k+ Outlets Most Visible Brand Highest Sca
Slide 33: Innovation – Our Strong Suite
INNOVATION – OUR STRONG SUITE 37 Patented Technologies Key Innovations Filed globally HYGROCOTTON Thought leader Collaboration With Tamper-proof Patented spinning technology makes towel Blockchain platform for state-of-the-art WINNER 2 n d tim e in a softer loftier and sheet temperature transparency