Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q4 FY24 Earnings Presentation
45 slides from Welspun Enterprises's earnings presentation, May 22, 2024
Slide 1: Cover letter to stock exchanges on revised investor presentation
WEL/SEC/2024 May 22, 2024 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 Madam / Sir, Sub: Investor
Slide 2: Welspun Enterprises Limited Q4FY24 Investor Presentation
WELSPUN ENTERPRISES LIMITED Q4FY24 Investor Presentation 21st May 2024 BSE: 532553 | NSE: WELENT |ISIN: INE625G01013 1
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
Slide 4: Inside this Presentation
Inside this Presentation About Welspun World 04 Welpsun Enterprises Ltd. At a glance 05 Advantage Welspun Enterprises Ltd. 06 Welspun Michigan Enterprises Ltd. 13 Financials Q4 & FY24 17 Industry Outlook 22 WEL – ESG At the Core 25 Summary Historical Financials 29 Annexure – Project & Investment Det
Slide 5: Welspun Group: Global Conglomerate
Global Conglomerate The USD 3.6 Bn Welspun Group is one of India’s fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring Global leader in Home Textiles Amongst world’s largest Line-Pipe manufactur
Slide 6: Welspun Enterprises At a Glance
Welspun Enterprises At a Glance FINANCIAL STRENGTH ROBUST ORDER BOOK HEALTHY PROFITABILITY ~20% Revenue CAGR ₹ ~12,200 Cr.*Standalone Higher profitability - (FY2021-24) Order Book average PAT for last 5 years ₹923 Cr. Cash on Hand ~13% Focused on execution Well-positioned to capture Retu
Slide 7: Advantage WEL
ADVANTAGE WEL
Slide 8: Creating Value through a Clear Strategy
Creating Value through a Clear Strategy Bid for selective projects Deploy right mix of Project Management Higher engineering complexity contractors & support them Efficient monitoring through Selective operating partners - Better EPC for seamless execution various digital initiatives - optimiz
Slide 9: Through an experienced Management
Through an experienced Management Sandeep Garg Saurin Patel Asim Chakraborty MD – WMEPL CEO (Transportation) Managing Director Masters in Structural Engineering with ~40 years Civil Engineer with ~4 decades of experience Harvard Business School and IIT (Roorkee) Civil Construction including Industri
Slide 10: Proven track record
Proven track record ₹ 3,900 cr. Delhi Meerut Expressway ~570 km Experience of operating ~570 ~65 km Welspun Enterprises’ completed portfolio km of Toll projects includes the Delhi–Meerut Expressway / Robust road portfolio National Expressway 3 which was featured as an Engineering Marvel of India Cap
Slide 11: Awards, Accreditation & Accolades
Awards, Accreditation & Accolades Letter of appreciation by Prime ASSOCHAM Unique Project of Appreciation by Minister of India Shri Narendra the Year Award presented by Shri Nitin Gadkari, Union Modi Shri Nitin Gadkari Minister 15th CIDC Vishwakarma Awards “Gold award” in Excellence in - Constructio
Slide 12: Strong platform set for future growth
Strong platform set for future growth Robust portfolio of Road and Current order ₹ 12,200 Cr.* (excluding GST) Water projects book at Segment Break-up Order Book Break-up 23% 81% ROAD EXTERNAL 77% WATER CAPTIVE 19% Current Order Book provides strong revenue growth visibility * Standalone order book
Slide 13: Way forward
Trends towards Diversification Trends in Order Book Break-up WEL Portfolio (in ₹ Cr.) Other EPC of 12,200 HAM EPC, 4% Water 19% 9,049 EPC 67% FY17 Q4FY24 3,900 EPC of Road EPC HAM , 14% 96% Development Orderbook* Development (Divested) Way Continue approach of prudent bid strategy to strengthen port
Slide 14: Welspun Michigan Engineers Ltd.
Welspun Michigan Engineers Ltd. *(WMEL) *(Formerly known as Michigan Engineers Private Limited)
Slide 15: About Welspun Michigan Engineers Ltd. (WMEL)
About Welspun Michigan Engineers Ltd. (WMEL) WMEL, now part of Welspun It has strong working Strong Vertical Integration World was established in the Pioneer and leader in the relationships with Municipal with an in-house fabrication year 1973. Michigan niche segment of Trenchless Corporations which
Slide 16: Welspun Michigan Engineers (WMEL) – Snapshot
Welspun Michigan Engineers (WMEL) – Snapshot Acquisition by Welspun Enterprises in August 2023 Mr.Saurin Patel has led WMEPL into New Segments – Expertise and reach of Welspun Group to to cater to Emerging Needs in India transform Growth Trajectory Financial Snapshot Unexecuted Order book of ₹ 1,637
Slide 17: Proven track record (WMEL)
Proven track record (WMEL) ● Tunnelling teams can ● Successful track record of ● Strong vertical integration accommodate projects executing numerous projects with in-house engineering, requiring pipes ranging across India’s largest fabrication and assembling from 450 mm diameter to Metropolitan citi
Slide 18: Financials
Financials
Slide 19: Highway Portfolio Monetization - Actis Deal
Highway Portfolio Monetization - Actis Deal Contract Authority In ₹ Cr. 2,309 Project Name Status Type /Client 1,715 Delhi-Meerut Expressway (Pkg 1) HAM NHAI COD achieved 1.5x Chutmalpur-Ganeshpur HAM NHAI COD achieved Gagalheri-Saharanpur-Yamunanagar HAM NHAI COD achieved Chikhali-Tarsod HAM NHAI C
Slide 20: Income Statement Snapshot - Standalone
Income Statement Snapshot - Standalone Particulars (₹ Cr.) Q4 FY24 Q4 FY23 YoY % FY24 FY23 YoY % Revenue from Operations 644 824 -22% 2,450 2,676 -8% Other Income 22 60 -64% 102 99 4% Total Income 665 884 -25% 2,553 2,775 -8% EBITDA 97 151 -36% 439 336 31% EBITDA margin 14.5% 17.1% -254 bps 17.2% 12
Slide 21: Income Statement Snapshot - Consolidated
Income Statement Snapshot - Consolidated Particulars (₹ Cr.) Q4 FY24 Q4 FY23 YoY % FY24 FY23 YoY % Total Income 867 916 -5% 3,063 2,902 6% EBITDA 157 166 -6% 616 391 58% EBITDA margin 18.1% 18.1% -5 bps 20.1% 13.5% 665 bps PBT Before Exceptional Item 120 126 -5% 479 258 85% Exceptional Item* 0 59 0
Slide 22: Balance Sheet Snapshot - Standalone
Balance Sheet Snapshot - Standalone Balance Sheet Snapshot (₹ Cr.) 31st Dec 2023 31st March 2023 Net worth 2,422 2,465 Gross Debt 0 292 - Long Term Debt - 292 - Short Term Debt (Working Capital Loan) 0 0 Cash & Cash Equivalents# 923 1,839 Net Debt / (Cash) -923 -1,548 Other Long-Term Liabilities 8 1
Slide 23: Industry Outlook
Industry Outlook
Slide 24: Industry dynamics - Roads Sector
Industry dynamics - Roads Sector Attractive Opportunities & Strong Policy Road Construction Per NHAI Awards and support Day (km) Execution (km)* 6,318 6,306 16,000 18% 5,337 Km 5,248 4,788 45 18% of projected infrastructure 4,325 National Highways to expand by 4,218 investment of ₹111 trillion in 3,
Slide 25: Industry dynamics – Water Sector
Industry dynamics – Water Sector Urban Water & Sanitation - ₹ 12.6 tn capital expenditure to GoI targets households with Additional be spent in building Water piped-water supply in rural areas ₹ 600 bn (₹ TN ) Infrastructure (IN %) ₹3.3 tn Will be spent in building Urban Water Infrastructure Vision
Slide 26: WEL - ESG At The Core
WEL - ESG At The Core 25
Slide 27: Leading Practices – Environment, Health & Safety
Leading Practices – Environment, Health & Safety 01 GHG Inventory and Data • Scope 1 & 2 emission adopted India GHG inventory program, IPCC Guidelines for Management National GHG inventories and Central Electricity Authority (CEA) India • Regular trainings & awareness sessions for water savings, red
Slide 28: Leading Practise – CSR initiatives 3Es
Leading Practise – CSR initiatives 3Es EDUCATION ENVIRONMENT EMPOWERMENT HEALTH Wel-Shiksha enhances education by Welspun's green initiatives are To empower athlete from Our initiative aims to empower modernizing government integrated into the WelPrakruti challenging backgrounds to realize women in
Slide 29: Leading Practices – Governance and Oversight
Leading Practices – Governance and Oversight 64 1 2 4 5 9 22%30,000+ Yrs. Independent Lead Independent Women Director Non Independent Directors Comprises of Average Directors(IDs) Director* Directors (44%) (100%) Women Directors Age (56%) (*Lead Independent Director authors independent view about th
Slide 30: Summary Historical Financials
Summary Historical Financials 29
Slide 31: Summary Standalone Financial Highlights
Summary Standalone Financial Highlights Financial Year (₹ Cr.) FY-21 FY-22 FY-23 FY-24 Revenue 1,410 1,307 2,676 2,450 Operating EBITDA 169 144 237 337 Other Income 29 38 99 102 Exceptional income 0 0 510 - Finance Cost 45 53 76 33 Depreciation 12 12 10 10 Tax 34 23 47 111 PAT (With Exceptional) 108
Slide 32: Balance Sheet Summary
Balance Sheet Summary Financial Year (₹ Cr.) FY-21 FY-22 FY-23 FY-24 Gross Debt 602 502 292 - Cash & Cash Equivalent 381 194 1,842 923 Net Cash -221 -307 1,549 923 Net Worth 1,819 1,894 2,465 2,422 Core Investments 1,622 1,812 488 751 Long Term Investments 320 393 424 448 Payback to Investors 30 22
Slide 33: Consistently Light on Working Capital
Consistently Light on Working Capital Net Working Capital (Days) 89 71 73 60 15 3 FY-21 FY-22 FY-23 FY24 -5 -19 Debtor Days Net Working Capital Key Highlight of WEL Model WEL Consistently operates with near negative working capital Selective sourcing of inventory to ensure quality & timely work
Slide 34: Appendix: Infrastructure Portfolio
APPENDIX Infrastructure Portfolio Existing Projects HAM: Aunta - Simaria (Ganga Bridge with Approach 1 Roads) 2 HAM: Sattanathapuram – Nagapattinam 3 EPC: Varanasi Aurangabad NH2 Project 4 EPC: UP State Water and Sanitation Mission 5 EPC: Dharavi Wastewater Treatment Facility (Mumbai) 6 EPC: Bhandup
Slide 35: Diversified Infrastructure Portfolio
Diversified Infrastructure Portfolio Project Names Contract Type Authority / Client Status Aunta-Simaria HAM NHAI Under Execution Road Assets Sattanathapuram-Nagapattinam HAM NHAI Under Execution (SNRP) Varanasi Aurangabad NH2 Project EPC SIVAPTL Under Execution (VARP) Dewas Water BOT MPSIDC Operati
Slide 36: HAM: Aunta-Simaria project details
Project details Project Length (Kms) 08.15 Km HAM Acquisition Date Financial Closure Aug 2018 Achieved Aunta-Simaria Appointed Date 30th Aug 2018 (Ganga Bridge with Scheduled Construction Period 42 Months^ Approach Roads) Concession Period after COD 15 Years ^ EOT up to 29th October 2024 approved by
Slide 37: HAM: Sattanathapuram-Nagapattinam project details
Project details HAM Project Length (Kms) 55.755 Km Award Date July 2018 Financial Closure Achieved Sattanathapuram- Appointed Date 5th Oct 2020 Nagapattinam Scheduled Construction Period 24 months^ (SNRP) Concession Period after COD 15 Years ^ EOT up to 17th January 2025 approved by NHAI SCOPE 4 lan
Slide 38: EPC: Varanasi Aurangabad NH2 project details
Project details Project Length (Kms) 192.4 EPC Original Contract Commencement Date 30th Sep 2021 Varanasi Aurangabad Construction Period 24 Months NH2 Project Additional Contract (VARP) Construction Start Date May 2022 Construction End Date Nov 2023* • Sought EOT till 30th June ‘24 SCOPE Six laning
Slide 39: EPC: UP State Water and Sanitation Mission
Project details EPC Water Supply Project Scope to Villages Est aggregate contract value UP State Water and (excluding O&M value and ₹ 2,900 Cr. Sanitation Mission GST) SCOPE Rural Water Supply project S No. Revenue District No of under Jal Jeevan Mission by Division Villages State Water Sanitation M
Slide 40: ₹2,900 Cr. worth order under execution
₹2,900 Cr. worth order under execution Lead Partner in Joint Venture with Kaveri Infraprojects Limited, Hyderabad 70 : 30 Empanelled by the UP-State Water and Sanitation Mission, Namami Gange and Rural Water Supply Execution of EPC Projects of 2,544 villages for the Project of Survey, Design, Prepar
Slide 41: EPC: Dharavi Wastewater Treatment Facility
Project details EPC Contract period 60 Months for Design Build, 15 years of operation and Wastewater Treatment maintenance Facility - Mumbai Sewage Welspun Enterprises 80% Disposal Project share in JV Status SCOPE Design, Build, Operation and LOA received on May 27, 2022 Maintenance of 418 MLD Dhara
Slide 42: EPC: Bhandup Water Treatment Complex
Project details EPC Contract period 48 Months for Design Build, 15 years of operation and Water Treatment Plant – maintenance Bhandup Complex, Welspun Enterprises 100% Mumbai Status SCOPE Design, Build, Operation and LOA received on Feb 29, 2024 Maintenance of 2,000 MLD Water Treatment Plant at Bhan
Slide 43: BOT Dewas Water
BOT Sector Project Name Location COD Concession End Dewas 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 FY24 revenue stands at ₹ 12.37 Cr. with EBITDA of ₹ 6.
Slide 44: Investment in Oil & Gas blocks
Block Name Location AWEL WEL Status Investment Stake Effective Stake in Oil & Gas MB-OSN-2005/2 Mumbai 100.0% 35.0% AWEL drilled a well and had made a Offshore hydrocarbon discovery wherein three layers have proven to be gas bearing, two layers have blocks: flown good amount of gas to surface. A dis
Slide 45: For further details please contact
Thank You For further details please contact investorrelations_WEL@welspun.com/Siddharth_Bharadwaj@welspun.com Mr. Siddharth Bharadwaj, Lead - Investor Relations Mr Salil Bawa, Head – Group Investor Relations CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED CIN: L45201GJ1994PLC023920 C/8, BKT House, Tra