Welspun Corp Limited · NSE:WELCORP
Welspun — Investor Presentation (November 2022)
37 slides from Welspun's investor presentation, Nov 22, 2022
Slide 1: Exchange cover letter for investor presentation
WCL/SEC/2022 November 22, 2022 To, BSE Ltd. National Stock Exchange of India Ltd. Department of Listing, Exchange Plaza, P. J. Towers, Dalal Street, Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. (Scrip Code: Equity - 532144), (Symbol: WELCORP, Series EQ) (NCD– 960468, 960491
Slide 2: Welspun Corp Limited Investor Presentation | November 2022
Welspun Corp Limited Investor Presentation | November 2022
Slide 3: Disclaimer
Disclaimer For any financial disclosures, the information contained herein is provided by Welspun Corp 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 su
Slide 4: Our journey so far… Core business of Line Pipes
Our journey so far… Core business of “Line Pipes” – Strong business visibility
Slide 5: WCL as it was: High Quality Line Pipe Business
WCL as “it was”: High Quality Line Pipe Business Top Among Line Pipe Manufacturers globally 3 50+ Approvals from O&G majors; Qualifies for global bidding 15+ Pipes delivered since inception with multiple repeat orders MN MT 6 manufacturing facilities Used in Oil & Gas, Water 2.5 mn MT Pipes Capacity
Slide 6: Approvals & accreditations: Line Pipes
Approvals & accreditations: Line Pipes Oil & gas Transportation Others 5
Slide 7: Line Pipes: Key Drivers
Line Pipes: Key Drivers India USA Saudi Arabia • Rig count almost close to pre- • Saudi Aramco to boost oil • Expansion of National Gas Grid pandemic levels production from 10 million to 13 Pipeline • Permian basin expected to be the million barrels a day by 2027 • City Gas Distribution (CGD) key gr
Slide 8: Line Pipes: Key Drivers – New Energy
Line Pipes: Key Drivers New Energy This is the future for pipelines Hydrogen: • WCL is a part of a key international committee drafting the specifications for these pipelines • Undertaking critical long lead tests on existing pipeline order to certify compatibility to carry 100% Hydrogen – Will give
Slide 9: Sales Volume Mix: Line Pipes (Long Term Trend)
Sales Volume Mix: Line Pipes (Long Term Trend) 764 635 646 632 650 629 626 578 510 506 500 393 413 423 236 255 217 265 222 254 180 237 197 123 190 165 99 138 106 96 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 India (KMT) USA (KMT) Saudi (KMT) India: Stable in a range of ~ 6 lakhs MTPA 8
Slide 10: Line Pipes: Global Order Book Position
Line Pipes: Global Order Book Position Order Book and Outlook providing visibility for next several quarters As of 31st Oct'22 Confirmed Order Book MT Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Line Pipes • Confirmed Order India Book of ~1 MN MT LSAW 1,20,000 (including Saudi HSAW 1,30,000 Arabia) ER
Slide 11: The way forward….
The way forward…. • Core business of “Line Pipes” – Strong Business Visibility • Start up of new Greenfield Businesses of DI, TMT and Stainless Steel • Acquisitions – ABG specified assets & Sintex BAPL
Slide 12: Business Transformation Strategy
Transformation Strategy Existing New Planned Large Business Diameter Pipe Pig Iron and DI Plastic and Coating Specialty Steel ABG Shipyards Billets & TMT1) Pipes Products New Energy Amongst the One of the Integrated One of the One of the Acquisition2) Top largest producer from largest largest player
Slide 13: Ductile Iron Pipes
Ductile Iron Pipes
Slide 14: Ductile Iron Pipes: Market Overview
Ductile Iron Pipes: Market Overview Our Focus Market will be West, Central and North India Received State Approval 13
Slide 15: Ductile Iron Pipes: Market Overview
Ductile Iron Pipes: Market Overview Our Focus States cover ~ 40% of JJM’s Total Budget Unutilized budget in the Focus States is 84% (INR 1,24,421 crores) of the JJM Budget, indicating huge potential Central Expenditure JJM FY 2019- FY 2022-23 Total Exp. Balance S.No. State FY 2020-21 FY 2021-22 Budg
Slide 16: Specialty Steel
Specialty Steel
Slide 17: Specialty Steel: Overview
Specialty Steel: Overview Robust demand expected going forward Key Drivers Sectors • Make in India initiative by the government providing push to local manufacturing • Critical applications in key sectors like Power, Nuclear, Defense, Petrochemicals etc. • High value business and a differentiated im
Slide 18: Specialty Steel: Sales Volumes
Specialty Steel: Sales Volumes 1800 1557 1600 1248 1400 1160 1081 1009 1200 881 1000 MT 692 800 515 600 358 400 142 141 200 0 0 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Stainless Steel Bars (MT) Pipes (MT) Improved performance to sustain, on the back of several new customer approvals, accredi
Slide 19: Value Added Grades – New Product Development
Value Added Grades – New Product Development (Specialty Steel) Material Size Application Phase Status SS310 1.5” – 6” Urea plants (Zero Ferrite) 1 Completed SS321 6” Process Plant Industry 1 Completed SS317L 1.5” Chemical industry (S and acid) 1 Completed SS347H 4” Food Processing and FCC 1 Complete
Slide 20: Specialty Steel: Outlook
Specialty Steel: Outlook • Healthy order book for Pipes & Tubes of 1,853 MT • Order book for Stainless Steel Bars of 1,387 MT • Moving towards higher value added grades • Favourable domestic conditions - Implementation of BIS - DGTR Investigation & AD possibility on cheap imports - “Make in India” i
Slide 21: TMT
TMT
Slide 22: TMT: Our Differentiated Strategy
TMT: Our Differentiated Strategy Forward Integration from Billets to TMT Growth Drivers Welspun Strategy • Infrastructure: Massive spending expected in the sector • Sharp focus on including – ₋ Branding and creating a robust distribution network - B2C segment ₋ PM Gati Shakti National Master Plan: a
Slide 23: TMT: Our Differentiated Strategy
TMT: Our Differentiated Strategy Creation of a widespread Distributor – Dealer network for selling TMT Rebars in Gujarat 1. Creating a unique and industry first , a digital platform for distributors , dealers , retailers & influencers - having socioeconomic impact. 2. This would also help to analyse
Slide 24: TMT: Our Focus Market
ee Vv co? ae Pipes & Steel TMT: Our Focus Market District Talukas 4 2 1 50 5 2 il 80 5 48 23
Slide 25: ABG Shipyard – Specified Assets
ABG Shipyard – Specified Assets
Slide 26: ABG Shipyard: Value Accretive Transaction
ABG Shipyard: Value Accretive Transaction • Transaction at Attractive Terms • Total cost of acquisition: INR 659 Cr (plus applicable taxes) • Partially built ships, equipment and metal scrap in excess of 150,000 MT • Metal/ metal scrap not required for business purposes will be disposed over 12-15 m
Slide 27: Sintex BAPL
Sintex BAPL
Slide 28: Sintex BAPL
Sintex BAPL • Extremely Strong Brand in the Consumer space with extensive Distribution (847 Nos) and Retail (13K) Network • National Brand having >10% market share (2018) in India • Diversification of Product Portfolio - Works well with overall theme of providing water related solutions (through DI
Slide 29: Sustainability
Sustainability
Slide 30: Sustainability Strategy
Sustainability Strategy Energy Efficiency Water Intensity Health & Safety Human Capital Renewable Energy Waste Intensity Gender Diversity Impacting Lives in CSV Sustainable Supply Chain Hydrogen Pipelines Carbon Capture Projects Ranked in Top One-Third in Steel Industry by S&P Global’s Dow Jones Sus
Slide 31: Sustainability Targets
Sustainability Targets Aspects FY 2020-21 Goal 2025 Goal 2030 Goal 2040 Carbon Neutrality 10% RE 20% RE Carbon neutral - % Renewable Energy (RE) Water Neutrality 0.63 KL/MT 0.55 KL/MT 0.40 KL/MT Water neutral - Water Intensity Zero waste to Waste to Landfill 1.53 MT 1.00 MT 0 MT landfill Impacting L
Slide 32: Financials & Outlook
Financials & Outlook
Slide 33: Financial Performance - Consolidated
Financial Performance - Consolidated Consistent Performance over the last 10 years Particulars FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 Revenue (INR cr) 9,083 7,705 8,451 7,380 6,035 7,587 8,954 9,957 7,153 6,505 3,286 EBITDA (INR cr) 919 844 951 891 737 815 708 1,276 1,152 1,023 147
Slide 34: WCL Medium Term Mission (3-5 Years)
WCL Medium Term Mission (3-5 Years) • Top line of INR 15,000 Cr + • Sustainable EBIDTA of INR 1,600 Cr to INR 1,800 Cr • ROCE of 18% + • Net Cash Positive driven by strong Free Cashflows • Increase in DJSI ESG rating from 41 to 60 • Dominant player in B2B and B2C segment in line with group vision of
Slide 35: Key Risks
Key Risks • High inflation resulting in increasing input costs • Volatility in Commodity Prices • Looming threat of recession • Uncertainty due to Geo-political reasons • Localized Competition • Regulatory Risks - Imposition of Duties • Ramp-Up of New Greenfields Projects of DI & TMT • Delay in Acqu
Slide 36: Thank You
Thank You Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com 35
Slide 37: Annexure: Our Manufacturing Facilities
Annexure: Our Manufacturing Facilities Capacity India US Saudi Arabia Total Products / City Anjar Dahej Mandya Bhopal Jhagadia Little Rock Dammam LSAW 350 350 700 HSAW 250 150 305 350 375 1,430 ERW/ HFIW 200 175 375 Line Pipes (KMT) 1,605 525 375 2,505 TMT Bars (KMT) 350 350 DI Pipes (KMT) 400 400 S