Welspun Enterprises Ltd. · NSE:WELENT
Welspun Enterprises — Q3 FY2025 Earnings Presentation
52 slides from Welspun Enterprises's earnings presentation, Feb 3, 2025
Slide 1: Cover letter to stock exchanges
WEL/SEC/2025 February 03, 2025 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, Subject
Slide 2: Welspun Enterprises Limited Q3FY25 Investor Presentation
WELSPUN ENTERPRISES LIMITED Q3FY25 Investor Presentation 03rd Feb 2025 BSE: 532553 | NSE: WELENT |ISIN: INE625G01013
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: Welspun Enterprises At a Glance
Welspun Enterprises At a Glance FINANCI AL STRENGTH ROBUST ORDER BOOK HEALTHY PROFITABILITY ~20% Revenue CAGR ₹ ~14,500 Cr.*Consolidated Order Higher profitability - average PAT (FY2021-24) Book margin for last 4 years ~13.3% ₹844 Cr. Cash on Hand Focused on execution Returned ~₹ 800 cro
Slide 5: Inside this Presentation
Inside this Presentation About Welspun World 05 Advantage Welspun Enterprises Ltd. 06 Financials Q3FY25 & 9 month FY 25 13 Opportunities Ahead 17 Welspun Michigan Enterprises Ltd. 22 WEL – ESG At the Core 26 Summary Historical Financials 30 Appendix – Project & Investment Details 35 Industrial Water
Slide 6: 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 7: Advantage Welspun Enterprises
Advantage Welspun Enterprises This is a 3-D Render of Dharat WwTF
Slide 8: Creating Value through a Clear Strategy
Creating Value through a Clear Strategy Municipal Water Treatment Remain “Asset Light” Bid for selective + projects Industrial Water Ensure P&L Treatment supports new business Sewerage Deploy right mix Asset Monetization of contractors & Treatment Monetize balance support them for sheet heavy assets
Slide 9: Through an experienced Management
Through an experienced Management Sandeep Garg Abhishek Chaudhary Saurin Patel Managing Director Chief Executive Officer Managing Director, WMEL Asim Chakraborty Yogen Lal Lalit Jain Lekha Raghavan CEO (Transportation) CEO – Strategy , Business Chief Financial Officer Head - HR Development
Slide 10: Proven track record
Proven track record ₹ 4,100 cr. Delhi Meerut Expressway ~570 km Experience of operating ~65 km Welspun Enterprises’ completed portfolio ~570 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 ASSOCHAM Unique Project of “Gold award” for Excellence in Prime Minister of India the Year award presented by Project Management under PPP Shri Narendra Modi Shri Nitin Gadkari mode from MoRTH “Excellence in Project ‘Innovative Project Desi
Slide 12: Strong platform set for future growth
Strong platform set for future growth Robust portfolio of Water, ~₹ 14,500 Cr.* Current order book at Tunnelling, Road & (excluding GST) WMEL Segment Break-up Order Book By Source 93% EXTERNAL Water 64% Road 12% WMEL Tunnelli 10% ng CAPTIVE 14% (HAM Projects) 7% Current Order Book provides strong re
Slide 13: Trends towards Diversification
Trends towards Diversification Trend in Order Book By Source WEL Portfolio (in ₹ Cr.) External EPC, 4% 14,500 9,049 FY17 Q3FY25 4,100 Captive (HAM), 96% Development Orderbook* Development (Divested) Way Continue approach of prudent bid strategy to strengthen portfolio Water & Wastewater to be the ke
Slide 14: Financials
Financials
Slide 15: Income Statement Snapshot - Consolidated
Income Statement Snapshot - Consolidated Particulars 9 Month 9 Month Q3 FY25 Q3 FY24 YoY % YoY % FY25 FY24 ~23% Revenue CAGR over Revenue from Operations last 4 years 867 707 23% 2,563 2051 25% Other Income 52 47 10% 154 145 6% ~25% EBITDA CAGR over last Total Income 4 years 919 754 22% 2,717 2,197
Slide 16: Income Statement Snapshot - Standalone
Income Statement Snapshot - Standalone Particulars Q3 FY25 Q3 FY24 YoY % 9 Month 9 Month YoY % ~20% Revenue CAGR over Revenue from Operations last 4 years 683 584 17% 2093 1,807 16% Other Income ~30% EBITDA CAGR over last 26 23 12% 81 81 0.2% 4 years Total Income 709 607 17% 2,174 1,887 15% Average
Slide 17: Balance Sheet Snapshot
Balance Sheet Snapshot Consolidated Balance Sheet Snapshot (₹ Cr.) 31st Dec 2024 31st March 2024 Net worth 2,598 2,490 Returned ~INR 800 crore Gross Debt 1,119 572 through buyback & dividends - Long Term Debt 1,088 558 over FY18 -FY24 - Short Term Debt (Working Capital Loan) 31 13 Cash & Cash Equiva
Slide 18: The Road Ahead
WEL The Road Ahead 03
Slide 19: Operation & Maintenance – as a separate revenue stream
Water - To be a technology-led solution provider for all needs • Treatment solutions for Industrial / Domestic / Municipal ○ Large Volume Plants: Create platform with global technology partners such as Veolia & Xylem for a sustainable Moat. ○ Distributed Plants: Driven by Smart Ops ○ Small scale: Pr
Slide 20: Tunnel – Strategic technology collaborations
Transportation – Pursue opportunities under asset light model ● BOT (Toll) ● Tunnel – Strategic technology collaborations for Roads/Railways/ Metro
Slide 21: ₹ 6.6 tn opportunity across verticals
₹ 6.6 tn opportunity across verticals TRANSMISSION TREATMENT DISTRIBUTION ROADS TUNNELLING -Lift Irrigation -WTP/WwTF -Industrial/ Public Private Large Diameter -River Linking –Wastewater Urban Water Partnership Tunnels Distribution -Water Grid Recycle Reuse -NRW reduction Management -River -One Cit
Slide 22: ₹ 3.6 tn across focus segments
₹ 3.6 tn across focus segments • India’s water challenge is to cater to ~18% of world population with ~4% of world’s fresh water resources • Share of unirrigated area out of net cropped area in India is ~45% (Niti Aayog) TRANSMISSION TREATMENT DISTRIBUTION • India’s Waste Water treatment plants trea
Slide 23: Building Water Resilience in India
Wastewater Generation & Treatment Capacity Welspun SmartOps – Unique proprietary GAP at City level in India (2023) Bioengineered Solution S.A.B.R.E* Low Land Footprint – Up to 1/5th Low Low on Deployment Capex & Time – Up to Opex 1/10th Welspun SmartOps Treatment Plants Low No Energy Drain Network C
Slide 24: ₹ 3.0 tn Across Focus Segments
₹ 3.0 tn Across Focus Segments • India’s length of NH increased to 146,000+ kms (by 2023) • Additional 50,000+ kms to be added ROADS TUNNELLING • PPP is going to be one of the way to ensure Public Private Partnerships – Large Diameter Tunnels - above development ₹ 2.0 tn ₹ 1.0 tn 23
Slide 25: Welspun Michigan Engineers Ltd. (WMEL)
Welspun Michigan Engineers Ltd. (WMEL)* *(Formerly known as Michigan Engineers Private Limited)
Slide 26: About Welspun Michigan Engineers Ltd. (WMEL)
About Welspun Michigan Engineers Ltd. (WMEL) WMEL, now part of Welspun Pioneer and leader in the niche Strong working relationships An integral aspect of our World was established in 1973. segment of Trenchless with Municipal Corporations which operations is vertical WMEL is positioned as a Technolo
Slide 27: Proven track record (WMEL)
Proven track record (WMEL) Tunneling teams can Successful track record of Strong vertical integration execute projects requiring with in-house engineering, executing numerous projects pipes ranging from 450 mm fabrication and assembling across India’s largest diameter to 3850 mm capabilities.
Slide 28: Welspun Michigan Engineers (WMEL) - Snapshot
Welspun Michigan Engineers (WMEL) - Snapshot Acquisition by Welspun Enterprises in August 2023 – Mr. Saurin Patel has led WMEL into New Segments to Expertise and reach of Welspun Group to transform cater to Emerging Needs in India Growth Trajectory Unexecuted Order book of ~ 2,600cr including Financ
Slide 29: WEL - ESG At The Core
WEL - ESG At The Core
Slide 30: Leading Practices - Environment, Health & Safety
Leading Practices - Environment, Health & Safety 01 GHG Inventory and • Scope 1 & 2 emission adopted India GHG inventory program, IPCC Guidelines for Data Management National GHG inventories and Central Electricity Authority (CEA) India • Regular trainings & awareness sessions for water savings, red
Slide 31: Key Performance Highlights ESG
Key Performance Highlights ESG
Slide 32: Leading Practice – CSR initiatives 3Es
Leading Practice – CSR initiatives 3Es
Slide 33: Board Committees
Audit Committee • 3 Members - all Independent Directors Nomination & Remuneration Committee • 3 Members - all Independent Directors Stakeholders’ Relationship, Share Transfer & Investors’ Grievance • 3 Members - all Independent Directors Risk Management • 3 Independent Directors & Managing Director
Slide 34: Summary Historical Financials
Summary Historical Financials
Slide 35: 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-Yamuna nagar HAM NHAI COD achieved Chikhali-Tarsod HAM NHAI
Slide 36: Summary Standalone Financial Highlights
Summary Standalone Financial Highlights Particulars (₹ 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 95
Slide 37: Balance Sheet Summary
Balance Sheet Summary Particulars (₹ 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 22 135
Slide 38: 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 39: WEL has returned CAGR of 63% against Nifty Small Cap
WEL has returned CAGR of 63%, against Nifty Small Cap 250 return of 46% 20% 19% 17% 38 13% ROE & ROCE computed by apportioning exceptional gains in FY23, over FY20-23
Slide 40: Appendix
APPENDIX Existing Portfolio of Projects 1 HAM: Aunta - Simaria (Ganga Bridge with Approach 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 Water Treat
Slide 41: Diversified Infrastructure Portfolio
Diversified Infrastructure Portfolio Project Names Contract Type Authority / Client Status Dewas Water BOT MPSIDC Operational Water/ Wastewater UP State Water and Sanitation Mission EPC SWSM Under Execution Treatment Bhandup Water Treatment Complex (Mumbai) EPC BMC Under Execution Dharavi Wastewater
Slide 42: HAM: Aunta-Simaria project details
Project details HAM Project Length (Kms) 08.15 Km Aunta-Simaria Acquisition Date Aug 2018 Financial Closure Achieved (Ganga Bridge with Appointed Date 30th Aug 2018 Approach Roads) Scheduled Construction Period 42 Months^ Concession Period after COD 15 Years ^ EOT up to 31st May 2025 recommended by
Slide 43: HAM: Sattanathapuram-Nagapattinam project details
Project details HAM Project Length (Kms) 55.755 Km Award Date July 2018 Sattanathapuram- Financial Closure Achieved Nagapattinam Appointed Date 5th Oct 2020 (SNRP) Scheduled Construction Period 24 months^ Concession Period after COD 15 Years ^ EOT up to 31st Oct 2025 recommended by IE SCOPE 4 laning
Slide 44: EPC: Varanasi Aurangabad NH2 project details
Project details EPC Project Length (Kms) Original Contract 192.4 Varanasi Aurangabad NH2 Commencement Date 30th Sep 2021 Construction Period 24 Months Project Additional Contract (VARP) Construction Start Date May 2022 Construction End Date Nov 2023^ ^ EOT up to 30th Jun 2025 recommended by IE SCOPE
Slide 45: EPC: UP State Water and Sanitation Mission
EPC Project details UP State Water and Project Scope Water Supply to Villages Sanitation Mission Est aggregate contract value ₹ ~ 2,800 Cr. (excluding O&M value and GST) SCOPE S No. Revenue District No of Division Villages Rural Water Supply project under Jal Jeevan Mission by State 1 Varanasi Jaunp
Slide 46: EPC: Dharavi Wastewater Treatment Facility
EPC Project details Wastewater Treatment 60 Months for Design Build, Facility - Mumbai Sewage Contract period 15 years of operation and maintenance Disposal Project, Dharavi SCOPE Status Design, Build, Operation and LOA received on May 27, 2022 Maintenance of 418 MLD Dharavi Project Commencement dat
Slide 47: Dharavi Project - India's First Multi-Storeyed WWTF
EPC Dharavi Project - India’s First Multi-Storeyed Wastewater Treatment Facility • A first-of-its-kind project in the country, this facility is being constructed vertically, due to the space constraints at the project site. • Being built on just 12.7 acres of land, it has one of the lowest footprint
Slide 48: EPC: Bhandup Water Treatment Plant
EPC Project details Water Treatment Plant – Contract period 48 Months for Design Build, 15 years of operation and Bhandup Complex, maintenance Mumbai Status SCOPE LOA received on Feb 29, 2024 Design, Build, Operation and Maintenance of 2,000 MLD Water Received Notice to Commence effective July 23, 2
Slide 49: EPC: Water Conveyance Tunnel
EPC Project details Water Conveyance Tunnel from 93 Months for Design Build of Contract period a 8.48 km tunnel with a 3,500 Dharavi WWTF to Ghatkopar mm bored diameter WWTF– Mumbai Status SCOPE LOA received on Oct 8, 2024 Design and construction of Tertiary Treated Water Received Notice to Commence
Slide 50: 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 51: Oil & Gas Blocks - Mumbai Block
• Adani Welspun Exploration Ltd (AWEL), a 65:35 JV between Adani Group & WEL, is the key investment vehicle, with 2 blocks in development • MB-OSN-2005/2 “Mumbai Block” (100% stake) – Field Development Plan (FDP) is awaiting DGH clearance • B9 Cluster (100% stake) - FDP is in place • The above block
Slide 52: Thank You
Thank You For further details please contact investorrelations_WEL@welspun.com/sangeeta_tripathi@welspun.com Ms. Sangeeta Tripathi, Lead - Investor Relations Mr Salil Bawa, Head – Group Investor Relations CORPORATE OFFICE WELSPUN ENTERPRISES LIMITED CIN: L45201GJ1994PLC023920 C/8, BKT House, Trade W
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