Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Investor Presentation (December 2017)
36 slides from Welspun Enterprises's investor presentation, December 2017
Slide 1: Welspun Enterprises Ltd Investor Presentation
WELSPUN ENTERPRISES LTD INVESTOR PRESENTATION December 2017 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 Market Cap Employees US$ 2.3 Billion US$ 2+ 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 of Rs. 41+ Billion Infrastructure Sector 4 projects; 120+ kms Six completed BOT (Toll) Road On Track for projects with 500+ km 15 month Early Completion of Delhi-Meerut Expressway Pkg-1 Among the very fe
Slide 6: Equity Snapshot
EQUITY SNAPSHOT Shareholding Pattern (as on 31st Dec 2017) Market Cap (Rs. Million) 25,820 46.02% 44.56% 21,055 Promoter Management 16,305 FIIs 12,313 Banks and Insurance Cos 10,518 Mutual funds Public 31 Dec 16 31 Mar 17 30 June 17 30 Sep 17 31 Dec 17 0.45% 0.81% 4.82% 3.34% Market Statistics Creat
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 Current order book at ~Rs. 35 Billion As on Mar-15 As on Mar-16 As on Sep-17 EPC of HAM: NIL Other EPC: 0.95 bn EPC of HAM: 7.72 bn Other EPC: 0.35 bn EPC of HAM Projects EPC of
Slide 12: Execution Picking Up
EXECUTION PICKING UP Current revenue contributed mainly by Delhi-Meerut Expressway Package-1 HAM project Recently added HAM projects expected to contribute significantly from Q4FY18 Infrastructure Revenues and EBIT (Rs. Million) 3,517 EPC of HAM Others EBIT 2,107 522 331 184 (162) H1FY17 H2FY17 H1FY
Slide 13: Infrastructure Projects
INFRASTRUCTURE PROJECTS HAM PROJECTS BOT PROJECTS Delhi-Meerut Expressway (Pkg 1) Authority: NHAI Raisen - Rahatgarh Dewas Water Status: Under Construction Authority: MPRDC Authority: MPSIDC 86% completed Status: Operational Status: Operational* 1 Aunta-Simaria Authority: NHAI Himmatnagar Bypass Hos
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: Under Construction; 86% completed within 13 Financial Clo
Slide 15: NHAI Appreciation for Speedy Progress
1 NHAI APPRECIATION FOR SPEEDY PROGRESS 15
Slide 16: NHAI Appreciation for Social Responsibility
1 NHAI APPRECIATION FOR SOCIAL RESPONSIBILITY WEL’s Green Initiatives at DME appreciated by NHAI : • Vertical Garden developed along the entire bridge • Electrification through Solar Power 16
Slide 17: HAM: Aunta-Simaria
2 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 Project Length (Kms) 8.15 Km NH-31 in the State of Bihar Award Date Aug 2017 Status: Received Letter of Award; Fin
Slide 18: 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* Sep 2017 Status: Financial closure completed; docum
Slide 19: HAM: Gagalheri-Saharanpur-Yamunanagar
4 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: Financial closure completed; documents under Acquisition Date* Sep 2017 review by NHAI. Appointed date awaited Financi
Slide 20: Expertise of Managing BOT Projects
EXPERTISE OF MANAGING BOT PROJECTS Experience of successfully operating more than 500+ kms of roads WEL currently operates 5 infrastructure projects on BOT basis (Rs. Mn) Value on Debt on Concession Sector Project Name Location books books COD End (March-17) (March-17) Himmatnagar Bypass Gujarat 22
Slide 21: Update on BOT Projects – Outstanding Matters
UPDATE ON BOT PROJECTS – OUTSTANDING MATTERS Dewas Water – Modified Project Project being 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 aga
Slide 22: Investments in Oil & Gas
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY INVESTMENTS IN OIL & GAS
Slide 23: 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 Right to Farm-out 55% ownership to ONGC for Phase II; Mumbai MB-OSN-2005/2 100% 35% ONGC’s board has a
Slide 24: Corporate Social Value
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY CORPORATE SOCIAL VALUE
Slide 25: 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 26: 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 27: Financials
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY FINANCIALS
Slide 28: Income Statement Snapshot - Standalone
INCOME STATEMENT SNAPSHOT - STANDALONE Standalone Rs. Million Income Statement YoY YoY Snapshot Q2 FY18 Q2 FY17 H1 FY18 H1 FY17 Growth Growth Total Income 1,708 526 224% 4,005 1,162 245% EBITDA 341 36 839% 706 276 156% EBITDA margin 20.0% 6.9% 17.6% 23.7% PBT Before Exceptional 275 (21) 562 154 266%
Slide 29: Balance Sheet Snapshot - Standalone
BALANCE SHEET SNAPSHOT - STANDALONE Standalone Balance Sheet Snapshot (Rs. Million) 30th Sept 2017 31st Mar 2017 Net worth 13,998 13,524 Gross Debt 640 801 Cash & Cash Equivalents 9,441 10,663 Net Debt /(Cash) (8,801) (9,862) Other Long Term Liabilities 291 287 Total Net Fixed Assets (incl. CWIP) 72
Slide 30: Income Statement Snapshot - Consolidated
INCOME STATEMENT SNAPSHOT - CONSOLIDATED Consolidated Rs. Million Income Statement YoY H1 YoY Snapshot Q2 FY18 Q2 FY17 H1 FY18 Growth FY17 Growth Total Income 1,928 536 260% 4,360 1,196 264% EBITDA 432 81 436% 862 290 197% EBITDA margin 22.4% 15.1% 19.8% 24.2% PBT Before Exceptional 303 (5) 607 126
Slide 31: Balance Sheet Snapshot - Consolidated
BALANCE SHEET SNAPSHOT - CONSOLIDATED Balance Sheet Snapshot – Consolidated (Rs. Million) 30th Sept 2017 31st Mar 2017 Networth 14,771 12,584 Gross Debt 2,865 1,503 Cash & Cash Equivalents 9,566 10,785 Net Debt /(Cash) (6,701) (9,282) Other Long Term Liabilities 306 288 Total Net Fixed Assets (incl.
Slide 32: Way Forward
WY WELSPUN ENTERPRISES INFRASTRUCTURE AND ENERGY WAY FORWARD
Slide 33: Way Forward
WAY FORWARD Continue approach of cautious bid/buy strategy to strengthen HAM portfolio Targeting projects where differentiation is possible Looking at opportunities in associated areas in Infra 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 Growth Potential through focused infrastructure play Strong Financials with Robust Credit Rating to tap Varied Opportunities Asset light business model in Infra with regular project value
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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