Welspun Corp Limited has informed the Exchange about the Business Update and Investors��� Presentation which is being released to the media.
WCL /SEC/2022
To, BSE Ltd. Listing Department, P. J. Towers, Dalal Street, Mumbai – 400 001.
November 3, 2022
National Stock Exchange of India Ltd. Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051.
(Scrip Code: Equity - 532144), (NCD – 948505, 960468, 960491 and 973309)
(Symbol: WELCORP, Series EQ)
Dear Sirs/ Madam,
Sub: Outcome of the meeting of the Board of Directors
Please take note that the Board of Directors of the Company at its meeting held on Thursday, November 3, 2022 have, inter-alia, considered and approved the following businesses:
1. Unaudited Financial Results for the quarter and half year ended September 30, 2022.
Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith standalone as well as consolidated Un-audited Financial Results for the quarter and half year ended September 30, 2022 along with the Limited Review report, as reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held today.
2. Acquisition of Propel Plastic Products Private Limited
The Board has approved acquisition of entire share capital of Propel Plastic Products Private Limited (“Propel”), a newly incorporated company, with objects, inter alia, of manufacturing of and dealing in all kinds of plastic and plastic product, from a related party, at a fair value consideration of Rs.10,000/- with an intention to make it a wholly owned subsidiary of the Company and to make it a Special Purpose Vehicle for organic / inorganic growth.
Propel presently does not have any material assets or liabilities.
The detail as required in the SEBI (LODR) is provided in Annexure -1
3. Business Update and Investors’ Presentation
Please find enclosed the Business Update and Investors’ Presentation which is being released to the media.
4. Re-Opening of Trading Window
Trading Window for dealing in the securities of the Company under the SEBI (Prohibition of Insider Trading) Regulations, 2015 will re-open on November 6, 2022.
The meeting of the Board of Directors commenced at 11:30 a.m. and concluded at 3.30 p.m.
Thanking you.
Yours faithfully, For Welspun Corp Limited
Pradeep Joshi Company Secretary FCS-4959
Encl.: as above
Annexure 1
Disclosure in terms of the Regulation 30 of the LODR and the SEBI Circular No. CIR/ CFD/ CMD/4/2015 dated September 9, 2015, the details of sale of the above unit are as under:
Sr. No.
Particulars
Detail of Propel Plastic Products Private Limited
1 Name of the target entity, details in brief
such as size, turnover etc.
Propel Plastic Products Private Limited, a company incorporated under the Companies Act, 2013 on September 27, 2022. (“Target Company”) with CIN : U25209GJ2022PTC135787
2 Whether the transaction would fall within
related party transactions?
Whether the promoter/ promoter group/ group companies have any interest in the entity being acquired?
The Target Company is a newly incorporated Company and has paid- up equity share capital of Rs. 10,000/-. Yes
Mr. Balkrishan Goenka, trustee of Welspun Group Mater Trust holds 100% of its shareholding, is the promoter of the Company
3
4
If yes, whether the same is done at “arm’s length”. Industry to which the entity being acquired belongs Objects and effects of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is
Yes
Plastic and Plastic Products
Not Applicable
outside the main line of business of the listed entity) Brief details of any governmental or regulatory approvals required the acquisition Indicative time period for completion of the acquisition
for
5
6
None
~ 30 days
7 Nature of Consideration
Cash consideration
8
9
10
(whether cash consideration or share swap and details of the same) Cost of acquisition or the price at which the shares are acquired; Percentage of shareholding / control acquired and / or number of shares acquired Brief background about the entity acquired terms of products/line of business in acquired,
Entire Equity Share Capital at a fair value consideration of Rs.10,000/-
Acquisition of 100% equity share capital of the Target Company
Date of incorporation,
September 27, 2022
Product / Line of business
Plastic and Plastic Products
History of last 3 years turnover
Not Applicable, since it’s a newly incorporated entity formed during the current financial year on September 27, 2022.
Country in which the acquired entity has presence significant any information (in brief);
other
and
India
11
Rationale of the acquisition
12
Brief details of change in shareholding pattern (if any) of listed entity.
To make it a Special Purpose Vehicle for organic / inorganic growth. No change in the shareholding pattern of the Company.
For Welspun Corp Limited
Pradeep Joshi Company Secretary FCS-4959
Price Waterhouse Chartered Accountants LLP
Review Report
Date: November 03, 2022
The Board of Directors Weispun Corp Limited, 5th Floor, Weispun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai —400013
1. We have reviewed the unaudited standalone financial results of Welspun Corp Limited (the “Company”) for the quarter ended September 30, 2022, and the year to date results for the period April 01, 2022 to September 30, 2022 which are included in the accompanying ‘Unaudited Standalone Financial Results for the Quarter and the Half year ended September 30, 2022’, ‘Statement of Unaudited Standalone Balance Sheet as at September 30, 2022’ and ‘Statement of Unaudited Standalone Cash Flow for the Half year ended September 30, 2022’ (the “Statement”). The Statement has been prepared by the Company pursuant to Regulation 33 and Regulation 52 of (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations, 2015”), which has been initialled by us for identification purposes.
the SEBI
2. This Statement, which is the responsibility of the Company’s Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“md AS 34”), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
Interim Financial
in accordance with the Standard on Review 3. We conducted our review of the Statement Engagements (SRE) 2410 “Review of Information Performed by the Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as is free of material misstatement. A review of interim financial to whether the Statement information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation 52 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
5. We draw your attention to note 6 to the standalone financial results, regarding the accounting treatment and presentation of Cumulative Redeemable Preference shares (“CRPS”), issued on March i6, 2022 pursuant to the Scheme of arrangement as a financial liability in its entirety in accordance with the requirements of md AS 32 ‘Financial Instruments: Presentation’ and md AS 109 ‘Financial Instruments’. Such accounting treatment and presentation, however, is not in accordance with the provisions of section 2(64) and section 43 of the Act. Our conclusion is not modified in respect of this matter.
Price Waterhouse Chartered Accountants LLP, 252, Veer Savarkar Marg, Shivaji Mumbai -400028 T: +91 (22) 66691500, F: +91 (22) 66547804 / 07
Registered office and Head office: Suchela Bhawan.
liAVishnu Digambar Marg, New Delhi 110002
Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP(a Limited Liability Partners~ c-soot)
with effect from July 25. 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP. its CAl registration number is 0127 number before conversion was 012754N)
.
registration
Price Waterhouse Chartered Accountants LLP
6. We did not review the comparative figures for the quarter ended September 30, 2021 and for the Half year ended September 30, 2021 which have been restated to include the standalone financial information of the Demerged undertaking (referred to in Note 6 of the Statement) which reflects total revenue of Rs. 23,349 lakhs, net loss after tax of Rs. (1,556) lakhs and total comprehensive income (comprising of loss and other comprehensive income) of Rs. (i,5~6) laths for the quarter ended September 30, 2021 and total revenue of Rs. 43,466 laths, net loss after tax of Rs. (1,132) laths and total comprehensive income (comprising of loss and other comprehensive income) of Rs. (1,132) lakhs for the Half year ended September 30, 2021 and cash flows (net) of Rs. i lath for the Half year ended September 30, 2021. The said standalone financial information of the Demerged undertaking have been provided to us by the Management. Our conclusion on the Statement of the Company to the extent they relate to these Demerged Undertaking is based solely on such standalone financial information furnished to us, which have not been reviewed. We have not reviewed the adjustments made by the Management, including adjustments required for consistency of accounting policies, arising on account of scheme of arrangement to arrive at the restated comparative figures for the quarter ended September 30, 2021 and for the Half year ended September 30, 2021. Our conclusion is not modified in respect of this matter.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016
Place: Mumbai Date: November 03, 2022
Neeraj Sharma Partner Membership Number: 108391 UDIN: 12. ‘soS a~ c~ci ~u~.F&o t&,f~
~94/ WELSPUN CORP
WELSPUN CORP LIMITED CIN: L27100GJ1995PLC025509, Website: www.welspuncorp.com Regd. Office: Weispun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode-370110. Tel No. 02836-652222, Fax : 02836-279060, email - Companysecretary_wcI@welspun.com Corp. Office: Welspun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai, Pincode - 400013. Tel No. 022-2490 8000, Fax: 022-2490 8020
UNAIJDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND THE HALF YEAR ENDED SEPTEMBER 30, 2022
Sr. No.
Particulars
1
2
3
4
S 6
7
8 9 10
a b
a b
C
d e f
S
a b
Income Revenue from operations Other income Total income (a+b) Expenses Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work- in-progress Employee benefits expense Depreciation and amortisation expense Other expenses Finance costs Total expenses Profit before tax (1-2)
Tax expenses Current tax Deferred tax Total tax expense Net profit for the period (3-4) Other Comprehensive Income, net of tax
a Items that will be reclassified to profit or
b
loss (net) Items that will not be reclassified to profit or loss (net) Total other comprehensive income, net of tax Total Comprehensive Income for period (5+6)
the
Paid up equity share capital (Face value of INR 5/- each) Other Equity Earnings per share (of INR 5/- each) (not annualised for the quarter and half year) (a) Basic (In INR) (b) Diluted (In INR)
Quarter ended (Unaudited)
.
(INR in Lakhs)
Half Year ended (Unaudited)
-
Year ended (Audited)
30-Sep-22
30-Jun-22
30-Sep-21
30-Sep-22
30-Sep-21
31-Mar-22
1,53,380 18,061 1,71,441
1,12,117 2,703
7,208 4,369 2,635 19,692 3,125 1,51,849 19,592
3,042 1,977 5,019 14,573
1,38,494 7,829 1,46,323
1,15,733 5,474 1,21,207
2,91,874 25,890 3,17,764
2,07,525 &847 2,16,372
5,28,787 48,262 5,77,049
96,479 15,601
97,598 1,357
2,08,596 18,304
1,55,645 1,936
3,93,206 14,667
1,417 4,316 2,653 13,629 2,594 1,36,689 9,634
(8,420) 4,895 2.826 16,530 1,739 1,16,526 4,681
2,324 (740) 1,584 8,050
1,367 (137) 1,230 3,451
8,625 8,685 5,288 33,321 5,719 2,88,538 29,226
5,366 1,237 6,603 22,623
(8,484) 9,378 5,701 36,400 3,254 2,03,830 12,542
2,040 20,902 11,528 67,532 7,688 5,17,563 59,486
4,005 (787) 3,218 9,324
10,945 (32) 10,914 48,572
(506)
(633)
(569)
(1,139)
(779)
(1,093)
(32) (538) 14,035
48 (585) 7,465
(111) (680) 2,771
16 (1,123) 21,500
(68) (847) 8,477
193 (900) 47,672
13,076
13,047
13,047
13,076
13,047
13,047 2,92,390
5.57 5.56
3.08 3.08
1.32 1.32
8.65 8.63
3.57 3.55
18.61 18.57
Notes: I The aforesaid standalone financial results of Welspun Corp Limited (the company) were reviewed by the Audit Committee and subsequently approved by the Board of Directors of the company at its meeting held on November 03. 2022. The Statutory Auditors have carried out a Limited Review and expressed an unmodified opinion on the aforesaid results.
2 Since the segment information as per md AS 108- Operating Segments is provided on the basis of consolidated financial results, the same is not provided separately in
standalone financial results.
3 The aforesaid standalone financial results of the Company have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) (md AS) prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable.
4 Details of Secured. Redeemable, Non Convertible Debentures is as follows:
Particulars
11.00% Secured Redeemable Non Convertible Debenture 6.50% secured Redeemable Non Convertible Debenture 7.25% Secured Redeemable Non Convertible Debenture ft Principal and interest has been paid on the due dates.
Previous Due Date It
Principal
Interest
Next Instalment Date
09.11.2021 NA NA
09.08.2022 10.02.2022 16.02.2022
November 2022 February 2024 February 2026
(INR in Lakhs)
Next Due Date Princi al
Amount
3,600 20,000 20,000
Interest Date
09.11.2022 10.02.2023 16.02.2023
Interest
Amount
100 1,300 1,450
5 The listed Secured, Redeemable, Non-Convertible Debentures of the Company aggregating to INR 43,600 lakhs (excludes transaction costs as per effective interest rate of INR 98 lakhs) as on September 30, 2022 are secured by first charge ranking pan passu by way of mortgage of certain movable and immovable property, plant and equipment of the Company. The Company has maintained hundred percent asset cover sufficient to discharge the principal amount of the said debentures in terms of R~gulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, The fixed assets cover is 2.23 times for total debts and the credit rating by CRISIL and CARE for Secured Redeemable Non Convertible Debentures issue by the Company is ‘PtA/stable”.
6 The Hon’ble National Company Law Tribunal, Ahmedabad Bench by an order dated March 16,2022 has sanctioned the Scheme of Arrangement (the “Scheme”) filed by Welspun Corp Limited and Weispun Steel Limited for transfer and vesting of Demerged Undertaking of the Dernerged Company i.e. Weispun Steel Limited (WSL) into the Resulting company i.e. Welspun Corp Limited with effect from April 1,2021, being the appointed date as per the Scheme. The certified true copy of the said Order has been received and filed with the Ministry of Company Affairs on 16 March, 2022. The effect of amalgamation as per “pooling of interest method” has been considered in the books retrospectively and the figures for the corresponding year ended March 31. 2021 have been restated as if the merger had occurred from the beginning of the comparative period in the financial statements, i.e-April 1,2020 as per the requirements of Indian Accounting Standard (IND As) 103 and in accordance with the accounting treatment specified in the Scheme.
In terms of Equity Shares of face value of INR 10/- each held in Welspun Steel Limited by the shareholders of WSL as on the record date fixed for the said purpose.
the Scheme, the Company has issued 81 Cumulative Redeemable Preference shares (CRPS) of face value of INR 10/- each of the Company for every 100
7 The Company has sold land and civil structures (collectively known as “assets sold’) situated at the Dahej unit of the Company in the state of Gujarat for a total
consideration of INR 13,000 lakhs and disclosed the resulting profit of INR 10,442 Iakhs under “Other Income”. The Company has received INR 3,000 iakhs in October 2022, and balance is due by December 2022.
8 During the quarter ended September 2022. the Company paid iNk 58,945 lakhs on September 21, 2022 (plus applicable taxes) towards the purchase consideration, for the private sale of specified assets of ABG Shipyard Limited (in liquidation) under the provisions of the Insolvency & Bankruptcy Code, 2016 (“IBC”). Post payment was made to ABG’s Liquidator and receipt of sale certificates by us, the Liquidator received a Provisional Attachment Order from ED, Ahmd. The Company, the Liquidator and the Lenders (SBI & lDBl) have all filed separate writ petitions before Hon’ble Gujarat High Court against ED’s Provisional Attachment Order. We are making best efforts for an early and favorable disposition.
9 During the quarter ended September 30, 2022, the Company has allotted 565,000 equity shares of INkS each fully paid up upon exercise of Employee Stock Option
under Weispun Employee Stock Option Scheme’2005 (WELSOP-2005). Post this allotment, the paid-up equity share capital of the Company stands increased from INR 13,047 lakhs divided into 260,949,395 equity shares of INR 5 each to INk 13,076 lakhs divided into 261,514,395 equity shares of IRS each.
10 Additional information pursuant to Regulation 52(4) of Securities and Exchange Board ofindia (Listing obligations and Disclosure Requirements) Regulations, 2015, as
amended.
Sr. No.
Particulars
I Debt Equity Ratio
(Total Debt/Total Equity)
2 Debt service coverage ratio
(Earnings available far debt service/debt service)
3
Interest service coverage ratio (Earning before Interest an borrowings and Tax/Interest on borrowings)
4 Current Ratio
(Current Assets/Current Liabilities)
5 Longterm debt to working capital
(Non-current borrowings • Current maturities of tang term borrowings/ (Current Assets - Current liabilities)
6
Bad debts to Accounts receivable ratio (Bad debt expense / Closing Trade Receivable)
7 Currentliabilityratlo
(Current liobilities/ Total Liabilities)
8 Total Debts to total assets ratio (Total Debts/ Total Assets)
9 Debtors Turnover (no. of days)
(Closing trade receivable/soles (multiplied by no. of days))
10 lnventoryrurnover(no.of days)
(Average inventory/ Cost of goods sold (multiplied by no. of days))
11 Operating EBIDTA Margin (%)
(Earnings before Depreciation, Interest ond Tax/soles)
12 Net Profit Margin (%)
(Net profit ofter tax/sales)
13 Paid up equity share capital (Face value of INR 5/- each)
14 other Equity
15 Debenture Redemption Reserve
16 Capital Redemption Reserve
17 Networth
Quarter ended (Unaudited) 30-Jun-22
30-Sep-21
30-Sep-22
Half Year ended (Unaudited) 30-Sep-21 30-Sep-22
Year ended (Audited) 31-Mar.22
046
4.50
10.37
1.36
1.14
-
0.80
0.21
56
91
0-39
5.00
6.26
1.48
0.79
0.70
0.19
49
64
0.40
4.15
435
1.93
0.32
0.63
0.19
34
65
0.46
4.68
8.45
1.36
1.14
0.80
0.21
59
94
0.40
5.09
6.23
1.93
0.32
0.63
0.19
38
79
0.43
632
11.84
1.59
0,58
072
0.20
55
60
16.59%
10.62%
7.99%
1376%
10.33%
14.80%
9.50%
5.81%
2.98%
7.75%
4.49%
9.19%
13.076
3,01,427
900
218
13.047
2,99,881
900
218
13.047
2,53,130
1,350
218
13,076
3,01,427
900
218
13,047
2,53,130
1,350
218
13,047
2,92,392
900
218
3,14,503
3,12,929
2,66,178
3,14,503
2,66,178
3,05,440
11 The figures for the previous periods have been regrouped wherever necessary.
For and On Behalf of the Board of Directors of Weispun Corp Limited
Place: Mumbai Date: November03, 2022
irectorand Chief Executive Officer
DIN- 007990476
‘PQ~WEI.SPUN CORP
CIN : L27100GJ1995PLC025609, Website: www.welspuncorp.com
WELSPUN CORP LIMITED
Regd. Office: Weispun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode-370110. Tel No. 02836-662222, Fax :02836-279060, email - Companysecretaiy_wcl@welspun.com. Corp. Office: Welspun I-louse, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai, Pincode - 400013. Tel No. 022-2490 8000, Fax: 022-2490 8020
STATEMENT OF UNAUDITED STANDALONE BALANCE SHEET AS AT SEPTEMBER 30, 2022
Asat
(INR in Lakhs)
Asat
September 30, 2022 March 31, 2022
(unaudited)
(Audited)
95,242 487 2.455 1,495 409
-
12 1,54,565 26,763 1,238 2739 2,85,405
96,437 424 2,297 1,564 425 90
12 1,34873 8,863 8,315 3,334 2,56,634
1,63,147
79,007
52,486 94,042 27,062 792 18.264 19,721 32,192
-
4,07,706
6,93,111,
13,076
3,03,759 (2,332) 3,14,503
63,902 1,452 13 5,479 1,783 6,012 78,641
80,581 650
552 1,10,377 7,617 3,043 2,048 50,226 44,873 2,99,967 3,78,608
6,9 3, 111
139,731 80,148 35,650 1,881 24,934 12,252 12,932 153 3,86,688
6,43,322
13,048
2,93,635 (1,243) 3,05,440
79,030 1,001 1,143 5,298 905 7.036 94,413
52,115 812
152 96,520 3,454 2,990 2,048 47,233 38,145 2,43,469 3,37,882
6,43,3 22
ehalf of the Board of Directors of Wel
un Corp Limited
Particulars
ASSETS
Non-current assets Property, plant and equipment Capital work-in-progress Right-of-use asset Investment property Intangible assets Intangible assets under development Financial assets Investments Equity investments in subsidiaries, joint venture and associates Loans Other financial assets Other non-current assets Total non-current assets
Current assets Inventories Financial assets Investments Trade receivables Cash and cash equivalents Bank balances other than cash and cash equivalents Loans Other financial assets
Other current assets Assets or disposal groups classified as held for sale Total current assets
Total assets
EQUITY AND LIABILITIES
Equity Equity share capital Other equity Reserves and surplus Other reserves Total equity
LIABILITIES
Non-current liabilities Financial liabilities Borrowings Lease liabilities Other financial liabilities
Provisions Oeferred tax liabilities (net) Government grants Total non-current liabilities
Current liabilities Financial liabilities Borrowings Lease liabilities Trade payabies
total outstanding dues of micro and small enterprises total outstanding dues other than above
Other financial liabilities
Provisions Government grants Current tax liabilities (net) Other current liabilities Total current liabilities
Total Liabilities Total equity and liabilities
Place: Mumbai Date: November 03, 2022
WELSPUN ~
WEL.SPUN CORP LIMITED
CIN : L27100GJ1995PLC025609, Website: wwv.welspuncorp.com Regd. Office: Welspun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode-370110. Tel No. 02836-662222, Fax: 02836-279060, email - Companysecretary_wcl@welspun.com.
Corp. Office: Welspun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbal -400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 STATEMENT OF UNAUDITED STANDALONE CASH FLOW FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022
_______________________________________________________________________
A) Cash flow (used in)/ from operating activities
Profit/ (loss) before tax
Adjustments for: Depreciation and amortisation expense Employee share-based expense Gain on sale I discarding of property, plant and equipment (net) Gain on sale/ redemption of Current investments
Fair valuation (gain)/ loss on investment (net) Liabilities/ Provision no longer required written back Provision for litigation, disputes and other matters (net) Allowance for doubtful debts (net) Dividend income Interest income and commission income Interest expenses Unrealised net exchange differences
Operating profit before changes in operating assets and liabilities
Changes in operating assets and liabilities (bracket figures represents Increase in Assets and Decrease in liabilities) Movement in other non-current financial assets Movement in other non-current assets Movement in inventories Movement in trade receivables Movement in other current financial assets Movement in other current assets Movement in other non-current financial liabilities Movement in trade payables Movement in other current financial liabilities Movement in other current liabilities Movement in provisions Movement in government grants
Total changes in operating assets and liabilities
Cash flow from operations Income taxes paid (net of refund received)
Net cash (used in)! from operating activities (A)
B) Cash flow (used in)! from investing activities
Payments for property, plant and equipment, investment property and intangible assets (including capital work-in-progress and Intangible assets under development) Proceeds from property, plant and equipment and investment property Proceeds from assets of disposal group Proceeds from sale/redemption of long term investments Purchase of long term investments Purchase of current investments Proceeds from sale/redemption of current investments (Investment in)/ proceeds from maturity of fixed deposit )net) Interest and commission received Dividend received Loans given to subsidiaries Repayment of loans by subsidiaries Loan given to)! repaid by others (net)
Net cash (used in)/ from investing activities (8)
C) Cash flow from/ (used in) financing activities
Proceeds from issue of equity share capital Proceeds from long term borrowings Repayment of long term borrowings
from short term borrowings ort term borrowings
rase payments In) financing activities (C)
I cash equIvalents (A+B+C)
rivalents at the beginning of the year
I cash equivalents at the end of the year
Net increase in cash and cash equivalents Cash and cash equivalents at the end of year
Note: The figures for the previous penod have been regrouped wherever necessary.
(INR in Lakhs)
Half Year ended September 30, 2022 (Unaudited)
Half year ended September 30, 2021 (Unaudited)
29,226
12,542
5,288
- (11,435)
(4,021)
68 (2,289) (57) 7,297) 2,961 170
(16,612)
12,614
7,077 27 (84,140) (11,666) 7,042 (19,388) (9) 12,802 1,326 6,728 188 (1,024)
81,037)
5,701 56 49
(233)
307) (10) (1) 1,347
(6,197) 2,506 321
3,232
15,774
(6,186) (207) (18,096) 16,485 148 (16,109) (7) (8,376) (2,733) 4,106) 56 1,024)
40,155)
(24,381) __________________ __________________ (1,195)
(68,423) (2,371)
(70.794)
(25,576) ____________________
(5,186)
(2,436)
806
- 506 4,169) 7,90,515) 8,82,050 1,089 7,361 57 (38,434) 10,900 5
64,470
565 40,000 (1,122) 48,434 (75,119) (1,473) (13,053) (496) ____________________ (2,264) ____________________
353 80,595
- (26,602) 6,55,367) 6,07,074 (267) 3,962
- (17,300) 5,800 (2,364)
(6,552)
- 7,700
- 75,486 (31,101) (1,386) (13,031) (469) ____________________ 37.199 ____________________
(8,588)
35,650
5,071
9,121
27,062
14.192 __________________
(8,588)1 27,062
5.071 14,192
/lc~~
2~&à’~
Price Waterhouse Chartered Accountants LLP
Review Report
Date: November 03, 2022
The Board of Directors Weispun Corp Limited, 5th Floor, Welspun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (West), Mumbai —400 013
1. We have reviewed the unaudited consolidated financial results of Welspun Corp Limited (the “Parent”), its subsidiaries (the parent and its subsidiaries hereinafter referred to as the “Group”) and its share of the net profit after tax and total comprehensive income of its joint venture and associate companies (refer to paragraph 4 of the report) for the quarter ended September 30, 2022 and the year to date results for the period April 01, 2022 to September 30, 2022, which are included in the accompanying ‘Unaudited Consolidated Financial Results for the Quarter and the Half year ended September 30, 2022’, ‘Statement of Unaudited Consolidated Balance Sheet as at September 30, 2022’ and ‘Statement of Unaudited Consolidated Cash Flow for the half year ended September 30, 2022 (the “Statement”). The Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”), which has been initialled by us for identification purposes.
2.
This Statement, which is the responsibility of the Parent’s Management and has been approved by the Parents Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 “Interim Financial Reporting” (“md AS 34”), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of
the Statement
in accordance with the Standard on Review Information Performed by the Engagements (SRE) 2410 “Review of Interim Financial Independent Auditor of the Entity”, issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
Price Waterhouse CharteredAccountants LLP, 252, Veer Savarkar Marg, Shiv’ Mumbai -400028 T: +91 (22) 66691500, F: +91 (22) 66547804 / 07
Registered office and Head office: Suclieta Shawan,
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Price Waterhouse (a Partnership Fini) converted into Price Waterhouse Chattered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-5001) with effect from July 25, 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its CAl registration number is 012754N1N500016 (ICAI registration number before conversion was 012754N)
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4. The Statement includes the results of the following entities:
Relationship
Parent:
Subsidiaries:
Entity name
Welspun Corp Limited, India
Welspun Tradings Limited, India
Welspun DI Pipes Limited. India
Welspun Metallics Limited, India Mabatva Plastic Products And Building Materials Private Limited, India (w.e.f. November 26, 2021) Anjar TMT Steel Private Limited, India Welspun Specialty Solutions Limited, India Welspun Pipes Inc., liSA
Welspun Tubular LLC, USA
Welspun Global Trade LLC, USA Welspun Mauritius Holdings Limited, Mauritius Big Shot Infra Facilities Private Limited, India (w.e.f April iS, 2022)
Nauyaan Shipyard Private Limited, India (w.e.f September 19, 2022) Welspun Captive Power Generation Limited, India
East Pipes Integrated Company for Industry, Kingdom of Saudi Arabia (Joint (formerly known as Welspun Middle East Pipes Company) venture till February 14, 2022) Clean Max Dhyuthi Private Limited. India, (w.e.f August 1, 2022) Welspun Wasco Coatings Private Limited, India
Associates:
Joint venture:
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraphs to believe that the 8 and 10 below, nothing has come to our attention that causes us accompanying Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation 52 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
6. We draw your attention to note 8 to the consolidated financial results, regarding the accounting treatment and presentation of Cumulative Redeemable Preference shares (‘CRPS”), issued on March i6, 2022 pursuant to the Scheme of arrangement as a financial liability in its entirety in accordance with the requirements of md AS 32 ‘Financial Instruments: Presentation and md AS 109 ‘Financial Instruments’. Such accounting treatment and presentation, however, is not in accordance with the provisions of section 2(64) and section 43 of the Act. Our conclusion is not modified in respect of this matter.
Price Waterhouse Chartered Accountants I.I.P
7. We did not review the comparative figures for the quarter ended September 30, 2021 and for the Half year ended September 30, 2021 which have been restated to include the consolidated financial information of the Demerged undertaking (referred to in Note 8 of the Statement) which reflects total revenue of Rs. 25,425 lakhs, total net loss after tax of Rs. (2,671) lakhs and total comprehensive income of Rs. (2,678) laths for the quarter ended September 30, 2021 and total revenue of Rs. 47,380 laths, (3,565) laths and total comprehensive income of Rs. (3,584) laths for the half year ended September 30, 2021 and cash flows (net) of Rs. 141 laths for the half year ended September 30, 2021. The said consolidated financial information of the Demerged undertaking have been provided to us by the Management, and our conclusion on the Statement of the Company to the extent they relate to these Demerged Undertaking is based solely on such consolidated financial information furnished to us, which have not been reviewed. We have not reviewed the adjustments made by the Management, including adjustments required for consistency of accounting policies, arising on account of scheme of arrangement to arrive at the restated comparative figures for the quarter ended September 30, 2021 and for the Half year ended September 30, 2021. Our conclusion is not modified in respect of this matter.
loss after tax of Ps.
total net
8. The Statement includes the Group’s share of net profit after tax of Ps. 1,067 laths and total comprehensive income (comprising of profit and other comprehensive income) of Rs. 1,083 lakhs for the quarter ended September 30, 2022 and net profit after tax of Rs. 1,553 laths and total comprehensive income (comprising of profit and other comprehensive income) of Ps. 1,584 laths for the half year ended September 30, 2022, as considered in the Statement, in respect of 1 associate located outside India whose interim financial information have been prepared in accordance with accounting principles generally accepted in its respective country and have been reviewed by other auditor under generally accepted auditing standards applicable in its respective country. The management of Parent has converted financial information of such associate located outside India from the accounting principles generally accepted in its respective country, to the accounting principles generally accepted in India. We have reviewed these conversion adjustments made by the management of Parent. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this associate, is based solely on the report of the other auditor and the conversion adjustments prepared by the management of the Parent and reviewed by us and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of this matter.
9. The Statement also includes the Group’s share of net loss after tax Ps. (6o) lakhs and total comprehensive income (comprising of loss and other comprehensive income) of Rs. (6o) laths for the quarter ended September 30, 2022 and net loss after tax of Ps. (i88) laths and total comprehensive income (comprising of loss and other comprehensive income) of Ps. (188) laths for the per Half year ended September 30, 2022, as considered in the Statement, in respect of 1 associate, based on their interim financial information which have not been reviewed by their auditor. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group. Our conclusion on the Statement is not modified in respect of this matter.
Price Waterhouse Chartered Accountants LLP
10. We did not review the interim financial information of 1 subsidiary included in the consolidated unaudited financial results, whose interim financial information reflect total assets of Rs.3o1 lakhs and net assets of Rs. 300 lakhs as at September 30, 2022 and total revenues of Rs.Nil and Rs. Nil, net loss after tax of Rs. (i) lakhs Rs. (12) lakhs and total comprehensive income of Rs. (i) lakhs and Rs. (12) lakhs, for the quarter ended and for the half year ended September 30, 2022, respectively, and cash flows (net) of Rs. i lakh for the Half year ended September 30, 2022, as considered in the consolidated unaudited financial results. This interim financial information has been reviewed by other auditors in accordance with SRE 2410, Review of Interim Financial Information performed by Independent Auditor of the entity and their reports, vide which they have issued an unmodified conclusion, have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiary, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of this matter.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016
Place: Mumbai Date: November 03, 2022
Neeraj Sharma Partner Membership Number 108391 UDIN: .a2~ce2s~ tLS~ tD U zc
WEtSPuN CORP
Particulars
Sr. No.
WELSPUN CORP LIMITED CIN : L27100011995PLC025609 Regd. Office: Weispun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode-370110, Corp. Office: Weispun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Munbai, Pincode - 400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND THE HALF YEAR ENDED SEPTEMBER 30, 2022
a b
a b
d e
8
a b
a b
2
3
4 5 S
7
8
9 10
11
12
13 14 15
Income Revenue from operations Other income Total income (a+b) Expenses Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work-in progress Employee benefits expense Depreciation and amortisation expense Other expenses Finance costs Total expenses Profit before share of profit ofjoint venture, associates and tax (1-2)
Share of profit/ (loss) of joint venture and associates (net) Profit before tas (3+4) Tax espense Current tax Deferred tax Total tax expense Net profit,~ (loss) for the period (5-6)
Other Comprehensive Income, net oftax Items that will be reclassified to profit or loss (net) Items that will not be reclassified to profit or loss (net) Total other comprehensive income, net of tax Total Comprehensive Income for the period (including non-controlling interest) (7+8) Net profit! (loss) attributable to: -Owners -Non-controlling interest Other comprehensive income attributable to: -Owners -Non-controlling interest Total comprehensive income attributable to: -Owners -Non-controlling interest
Paid up equity share capital (Face value of INR SI- each) Other Equity Earnings per share attributable to owners (of INR 5/- each) (not annualised in quarters) (a) Basic (In INR) (b) Diluted (In INRI
Quarter ended (Unaudited)
Half Year ended (Unaudited)
IINR in Lakhs) Year ended (Audited)
30-Sep-22
30-Jun-22
30-Sep-21
30-Sep-22
30-Sep-il
31-Mar-22
1,96381 17,705 2.14,086
1,94,528 1,436 (32,198) 11,356 7,004 34,382 4,746 2,21.254 (7,168) 1356 (5,812)
3,481 (2,975) 506 (6.318)
3,426 (25) 3,401 (2.9171
(5,659) (659)
3,343 58
(2.316) (601)
13,076
-
-2.16 -2.16
1,32182 7,269 1,39,451
1,11,734
- (9,799) 8,229 6,125 19,131 3,057 1.38,477 974 358 1,332
2,324 (897) 1,427 (95)
4,804 52 4,856 4,761
411 (506)
4.784 72
5,195 (434)
1,54,211 5,414 1,59,625
98,960
‘ 11,595 9,105 6,347 22,493 2,301 150,801 8,824 (534) 8,290
3,190 (447) 2,743 5.547
(736) (145) (881) 4,666
6,270 (723)
(872) (9)
5,398 (732)
3,28,563 24,974 3,53,537
3,06,262 1,436 (41,997) 19,585 13,129 53,513 7,803 3,59,731 (6,194) 1,714 (4.480)
5,805 (3,872) 1,933 (6413)
8,230 27 8,257 1,844
(5,248) (1,165)
8,127 130
2,879 (1,035)
3,05,224 9,123 3,14,347
1,69,305
- 35,114 19,872 12,720 51,934 4.475 2.93,420 20,927 (284) 20,643
8,154 (1,712) 6,442 14,201
1.124 (135) 989 15.190
15,687 (1,486)
956 33
16,643 (1,453)
13,047
13,047
13,076
13,047
0.16 0.16
2.40 2.40
-2.01 -2.00
6.01 6,00
6,50,511 55.122 7,05,633
4,16,749 13,760 45,295 38,348 25,475 89,189 10,189 6,39,005 66,628 (572) 66,056
22,971 (1,332) 21,639 44,417
3,922 131 4,053 48.470
43,881 536
3,923 130
47,804 666
13,047 4,52,753
16.82 16.77
Notes:
1
2
3
4
5
8
9
10
11
The aforesaid consolndated financial results of Welspun Corp Limited (the ‘Company’) end its subnidiaries (the Company and its subsidiaries together hereinafter referred so as the ‘Group’), iss Joint venture and associates were reviewed by she Audit Committee and subsequently approved by she Board of Directors of the Company at iss meeting held on November 03, 2022. The Statutory Auditors have carried out a Limited Review and expressed an unmodified opinion on she aforesaid results.
The Group is primarily engagtd in she business of manufacture and distributIon of steel products i.e. single negment.
The Standalone financial results of the Company were reviewed by the Audit Committee and thereafter approved by the eoard of Directors as ist meeting held on November 03, 2022 and will be made available to 855 limited and National Stock techange of India Limited and will be pouted on the Company’s webuite wvnv.welspuncorp.com. The key information related to the standalone financial results are given below,
Key financials
a
Total Income
b Profit before tax C Proficafter tax
d
Earningu per share (of tNt 5/- each) (not annualined) (a) Banic (In INn) (b) Diluted (In NM
________________________________________________________
(INR in Iakhs esceot earnings per share)
Quarter ended (Unaudited)
Half Year ended (Unaudited)
30’Sep’22
30’lun’lZ
30-Sep’21
30’Sep’22
30’Sep’21
31-Mar’22
1,71,441
19,592 14,573
5.57 5,56
1,46,323
1,21,207
9,634 8,050
3.08 3.08
4,681 3,451
1.32 1,32
3,17,764
29,226 22,623
8.65 8.63
2.16,372
12.542 9,324
3.57 3.56
5,77,049
59,486 48,572
18.61 18.57
The aforesaid consolidated financial reuults of the Group, its joins venture and associates have been prepared in accordance with the Companieu (Indian Accounting Standards) Rules, 2015 (as amended) lnd AS) prencribed under Section 133 of the Companies Act, 2013 and other recognized accounting praccices and policies to the extent applicable.
Details of Secured, Redeemable, Non Convertible Debentures is an follows:
(INR in Lakhsl
Particulara
11,00% Secured Redeemable Non convertible Debenture 6.50% Secured Redeemable Non Convertible Debenture 1.25% Secured Redeemable Non Convertible Debenture
Principal and interest hat been paid on the due dates,
Previous Due Date N
Nest Due Date
PrincIpal
Interest
Next Instalment
Date
Principal
Amount
Interest Data
Interest Amount
09.11.2021 NA NA
09.08,2022 10.02.2022 16.02,2022
November 2022 February 2024 February 2026
3,600 20,000 20,000
09.11.2022 10,02.2023 16.02.2023
100 1,300 1,450
The listed Secured, Redeemable, Non.Convertible Debentures of the company aggregating so INR 43,600 laths excludes transection costa as per effective interest rate of INR 98 lakhs( anon September 30, 2022 are secured by first charge ranking pan passu by way of mortgage of certain movable and immovable property, plant and equipment of che Company. The Company has maintained hundred percent asset cover sufficient to discharge the principal amount of she said debentures in terms of Regulation 54 of the SEBI (Listing obligations and Disclosure Requirements) RegulatIons, 2015, as amended, The lined assets cover ix 2.23 times for total debts and the Credit rating by CRISIL and CARE for Secured Redeemable Non Convertible Debentures issue by the Company Is “A.A/stable’,
During the quarter ended March 31, 2022, the Company announced the auccessful listing of its Joint Venture company in Kingdom of Saudi Arabia (‘KSA’(, tast Pipes Integrated Company for Industry (EPIC) on the Saudi ttchenges Main Market (‘Tadawul’) at the final offer price of SAR SO per share. Post the PD the Company owns 35,01% (from earlier 50.01%) through lcn step.down subsidiary in Mauritiua and will continue to be the largest shareholder In EPIC. Welspun Mauritius Holdinga Limited received gross proceeds of SAR 2,520 lakha (INR 50.000 lakhs) and had shown the gain of INR 35,900 laths under other income, Conaequently, EPIC had been classified as an associate for the Company.
The Kon’ble National Company Law Tribunal, Ahmedabad Bench by an order dated March 16, 2022 has sanctioned the Scheme of Arrangement (the “Scheme”) filed by Welspun Corp Limited and the Demerged Company i.e. Welspun SEed Limited (WSL) into the Resulting Company i.e. Welnpun Corp Limited with effect Welnpun Steel Limited for transfer and vesting of Demerged Undertaking of from April 1,2021, being the appointed date at per the scheme, The certified true copy of the said Order hal been received and filed with the Ministry of Company Affairs on 16 March, 2022. The effect of amalgamation as per ‘pooling of interest method’ has beenconn idered in the books retrospectively and the figures for the corresponding year ended March 31, 2021 have be en restated an if the merger had occurred from the beginning of the comparative period in the financial ntatements, i.e. April 1.2020 aa per the requirements of Indian Accounting Standard (IND AS) 103 and in accordance with the accounting treatment specified in the Scheme. In terms of each held in Welspun Steel Limited by the shareholdere of WSL as on she record date fixed for the said purpose.
the Scheme, the Company has issued 81 Cumulative Redeemable Preference shares (CRPS) of face value of INR 10/. each of the Company for every 100 Equity Shares of face value of INR 10/-
The Company han told land and civil structures (collectively known as ‘assets sold”) situated at the DaheJ unis of the Company in the state of Gujarat for a total consideration of INR 13,000 Iakht and disclosed the resulting profit of INn 10,442 lakha under ‘Other Income’. The Company has received INR 3,100 lakhs in October 2022, and balance is due by December 2022.
During the quarter ended September 2022, the Company has paid INR 58,945 laths, and its wholly owned subsidiary — Nauyaan Shipyard Private Limited, paid, INR 6,997 laths on September 21, 2022, aggregating to INR 65,942 lakhs (plus applicable taxes) towards she entire purchase consideration, for the private sale of specified assets of ABG Shipyard Limited (in liquidation) under the proviaions of the Insolvency & Bankruptcy Code, 2016 (‘lBC”). Post payment was made to ABs’s Liquidator and receipt of sale certificates by us, the Liquidator received a ProvisIonal Attachment Order from ED, Ahmd. The Company, the Liquidator and the Lenders (581 & IDBI) have all filed separate writ petitions before Hon’ble Gujarat High Court againat ED’s Provisional Attachment order. We are making best efforts for an early and favorable disposition.
During the period ended on Sepcember 30, 2022, the Subsidiary of the Company reassessed the nature of itt 12% Non-Cumulative Redeemable Preference Shares, reaulting in change in liability portion of the inntrument. Basin the change, the revised liability portion of the inatrument as disclosed under non’ current borrowing is Rs. 1,572 lace, other equity being INR 3,775 lacs and interest for the year ended March 31,2022 and half year ended September 30, 2022, is disclosed under other expenses aggregating to INn 257 lacx.
12 Additional
information pursuant to Regulation 52(4) of Securities and Exchange Board of India (Listing obligations and Disclosure Requirements) Regulations,
2015, as amended.
sr. No.
- Particulars
1 Debt Equity Ratio
(Total Debt/Total Equity)
2 Debt service coverage ratio
(Earnings available for debt service/debt service)
3
Interest service coverage ratio (Earning before Interest on borrowings and Tax / Interest on borrowings)
4 Current Ratio
(Current Assets/ Current Liabilities)
5 Longtermdebttoworkingcapital (Non-current borrowings + Current maturities of long term borrowings! (Current Assets - Current liabilities)
6
Bad debts to Accounts receivable ratio (Bad debt expense / Closing Trade Receivable)
7 Current liability ratio
(Current liabilities/ Total Liabilities)
8 Total Debts to total assets ratio (Total Debts! Total Assets)
9 Debtors Turnover (no. of days) (Closing trade receivable/soles (multiplied by no, of days))
10 InventoryTurnover(no.of days)
(Average inventory/Cost of goods sold (multiplied by no. of days))
11 Operating EBIDTA Margin (%)
(Earnings before Depreciation, Interest and Tax/Sales)
12 Net Profit Margin (%)
(Net profit after tax/soles)
Quarter ended (tinaudited)
Half Year ended (Unaudited)
30-Sep-22
30-Jun-22
30-Sep-21
30-Sep-22
30-Sep-21
Year ended (Audited) 31-Mar-22
065
1_OS
(0.74)
1.26
1.88
-
0.70
0.24
47
128
0.45
2.99
1.64
1.31
1.29
0.68
0.20
43
133
0.35
0.85
5.68
1.73
0.44
0.62
0.18
29
89
0.65
1.75
0-35
1.65
0.17
7.22
1.73
0.44
045
4.00
973
1.49
1.05
-
-
0.62
0.18
29
96
0.63
0.22
46
86
1.26
1.88
0
0.70
0.24
56
157
2.97%
7.66%
10.94%
4.86%
12.30%
15.52%
-3.22%
-0.07%
3.60%
-1.95%
4.65%
6.83%
Paid up equity share capital (Face value
13,076
13,047
13,047
13,076
13,047
13,047
13 ofINRS/-each)
14 Other Equity
4,24,064
4,34,950
3,98,919
4,24,064
3,98,919
4,29,784
15 Debenture Redemption Reserve
16 Capital Redemption Reserve
900
218
900
218
1.350
218
900
218
1,350
218
900
218
17 Networth
4,47,909
4,57,484
4,23,185
4,47,909
4.23,185
4,52,755
13 The figures for the previous periods have been regrouped wherever necessary.
~or and On Behalf of the Board of Directors of Weispun Corp Limited
Place: Mumbai Date: November 03, 2022
r
Vipul Mat Managing Director and Chief Executive Officer DIN -007990476
WELSPUN CORP
CIN : L27100GJ1995PLC0256O9 , Website: www.welspuncorp.com
WELSPUN CORP LIMITED
Regd. Office: Welspun City, Village Versamedi, Taluka Anjar, Dist, Kutch, Gujarat, Pincode -370110. Tel No. 02836-662222, Fax :02836-279060, email - Companysecretary_wcl@welspun.com, Website: www.welspuncorp.com Corp. Office: Weispun [louse, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai -400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 STATEMENT OF UNAUDITED CONSOLIDATED CASH FLOW FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022
__________________
Half Year ended
IINR in Lakhs)
Half Year ended
September 30, 2022 September 30, 2021
(Unaudited)
(Unaudited)
A) Cash flow (used in)! from operating activities
Profit/(Loss) before tax
Adjustments for Depreciation and amortisation expense Employee share-based expense Gain on sale? redemption of
Current investments
Gain on sale? discarding of property, plant and equipment (net) Share of loss? (gain) of joint ventures accounted for using the equity method (net) Fair valuation (gain)? loss on investment (net) Allowance for doubtful debts (net) Provision for litigation, disputes and other matters (net) Liabilities! provisions no longer required written back Dividend income Interest income and commission income Interest expenses Unrealised net exchange differences
Operating profit before changes in operating assets and liabilities
Changes in operating assets and liabilities (bracket figures represents Increase in Assets and Decrease in liabilities) Movement in other non-current financial assets Movement in other non-current assets Movement in inventories Movement in trade receivables Movement in other current financial assets Movement in other current assets Movement in other non-current financial liabilities Movement in trade payables Movement in other non-current liabilities Movement in other current financial liabilities Movement in other current liabilities Movement in provisions Movement in government grants
Total changes in operating assets and liabilities
Cash flow from operations Income taxes paid (net of refund received)
Net cash (used in)? from operating activities (A)
(4,480)
13,129
(53) (11,160) (1,714) (3,036) (2,289) 70 (296) (57) (6,655) 4,471 376
(11,694)
7,022 15,411 (2,53,459) (17,862) 6,557 (44,279) (481) 1,05,094
- 2,188 1,14,664 296 (1,024)
(65,873)
(77,567) (6,234)
(83,801) ______-
20,643
12,720 56
(238) (2) 283 (284) 1,347 (25)
(6,564) 3,498 (170)
31,264
(6,196) (5,166) 28,048 17,385 (86) (14,785) 155 (27,281) 3 (2,263) (8,079) 201 (1,024)
(19,088)
12,176 (4,240)
7,936
WELSPUN ~
CIN: L27100Gi1995PLC025609, Website: www.welspuncorp.com
WEISPUN CORP LIMITED
Regd. Office: Welspun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode - 370110. Tel No. 02836-662222, Fax : 02836-279060, email - Companysecretary_wcl@welspun.com, Website: www.welspuncorp.com Corp. Office: Welspun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai -400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 STATEMENT OF UNAUDITED CONSOLIDATED CASH FLOW FOR THE HALF YEAR ENDED SEPTEMBER 30, 2022
B) Cash flow from / (used) in investing activities
Payments for property, plant and equipment investment property and intangible assets (including Capital work-in-progress and Intangible assets under Proceeds from property, plant and equipment, investment property Proceeds from assets of disposal group Purchase of long term investments Purchase of current investments Proceeds from sales/ redemption of current investments Proceeds from maturity of fixed deposits (net) Interest and commission received Dividend received Loan given (to)! repaid by others (net) Repayment of loans by joint venture Cash flow from / (used) In investing activities (B)
C) Cash flow from financing activities
Proceeds from issue of equity share capital Proceeds from long term borrowings Repayment of long term borrowings Proceeds from short term borrowings Repayment of short term borrowings Interest paid Dividend paid Principal elements of lease payments
Net cash from financing activities (C)
Net decrease in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the financial year
Gain! (Loss) on exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of year
Note: The figures for the previous period have been regrouped wherever necessary.
__________________
Half Year ended September 30, 2022 (Unaudited)
(INR in Lalchs)
Half Year ended September 30, 2021 (Unaudited)
(90,102)
(40,129)
531
(4,038) (8,07,575) 8,97,697 4,908 8,216 57 5
9,699
565 1,29,135 (11,600) 49,934 (76,496) (2,921) (13,053) (2,322)
73,242
(860)
64,021
3,249
66,410
98 80,595
(6,58,12 1) 6,09,314 1,096 3,738
2 94
(3,313)
-
9,000 (14,252) 1,05,066 (49,946) (2,533) (13,031) (573)
33,731
38,354
16,980
616
55,950
WELSPUN CORP
WELSPUN CORP LIMITED
CIN : L27100GJ1995PLC025609 , Website: www.welspuncorp.com Regd. Office: Welspun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode -370110. Tel No. 02836-662222, Fax : 02836-279060, email - Companysecretary_wcl@welspun.com, Website: www.welspuncorp.com Corp. Office: Weispun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mun,bai -400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 STATEMENT OF UNAIJDITED CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2022
Particulars
ASSETS
Non-current assets Property, plant and equipment Capital work-in-progress Right-of-use asset Investment property Goodwill on consolidation Intangible assets Intangible assets under development Financial assets Investments Investments accounted for using the equity method Other financial assets Deferred tax assets (net) Other non-current assets Total non-current assets
Current assets Inventories Financial assets Investments Trade receivables Cash and cash equivalents Bank balances other than cash and cash equivalents Loans Other financial assets Current tax assets (net) Other current assets Assets or disposal groups classified as held for sale Total current assets
(INR. in Lakhs)
Asat September 30, 2022
Asat March 31. 2022
(unaudited)
(Audited)
2,75,298 1,08,149 14,285 1,495 34,312 608
41,928 49,754 1,918 3,909 7,773 5,39,429
1,93,954 1,26,037 12,887 1,564 34,312 607 90
38,706 42,648 8,841 3 25,618 4,85,267
3,55,404
1,01,946
62,284 1,01,344 66,410 1,116 25 18,619 239 61,191
-
6,66,632
1,49,318 81,256 64,021 6,127 30 11,589 221 16,960 153 4,31,621
Total assets
12,06,061
9,16,888
—çç WEL5PtJN CORP
WEISPUN CORP LIMITED
CIN : L27100GJ1995PLC025609, Website: www.welspuncorp.com
Regd. Office: Weispun City, Village Versamedi, Taluka Anjar, Dist. Kutch, Gujarat, Pincode -370110. Tel No. 02836-662222, Fax :02836-279060, email - Companysecretary_wcl@welspun.com, Website: www.welspuncorp.com Corp. Office: Welspun House, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. Tel No. 022-2490 8000, Fax: 022-2490 8020 STATEMENT OF UNAUDITED CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 2022
Particulars
EQUITY AND LIABILITIES
Equity Equity share capital Other equity Reserves and surplus Other reserves Equity attributable to owners of Welspun Corp Limited Non-controlling interests Total equity
LIABILITIES
Non-current liabilities Financial liabilities Borrowings Lease liabilities Other financial liabilities
Provisions Deferred tax liabilities (net) Government grants Total non-current liabilities
Current liabilities Financial liabilities Borrowings Lease liabilities Trade payables
total outstanding dues of micro and small enterprises total outstanding dues other than above
Other financial
liabilities
Provisions Government grants Current tax liabilities (net) Other current liabilities Total current liabilities
Total Liabilities
Total equity and liabilities
(INR. in Lakhs)
Asat September 30, 2022
Asat March 31, 2022
(unaudited)
(Audited)
13,076
13,048
3,97,707 26,357 4,37,140 10,769 4,47,909
4,11,520 18,264 4,42,832 9,923 4,52,755
__________________ ________________
2,02,320 2,155 644 5,754 14,254 6,012 2,31,139
88,370 1,335
679 2,03,827 17,268 3,299 2,048 59,385 1,50,802 5,27,013 7,58,152
12,06,061
1,42,942 1,890 2,247 5,585 13,841 7,036 1,73,541
59,202 1,658
309 98,091 31,046 3,162 2,048 58,938 36,138 2,90,592 4,64,133
9,16,888
For and On Behalf of the Board of Directors of Welspun Corp Limited
Place: Mumbai Date: November 03, 2022
~ctor and Chief Executive Officer
007990476
BUSINESS UPDATE
Strong Business Visibility
Confirmed Order Book for Line Pipes of ~ 1 Million MT
November 3, 2022, Mumbai: Welspun Corp Ltd. (WCL), a flagship Company of the Welspun Group, announced its consolidated financial results for the quarter ended September 30, 2022.
Strong Business Outlook providing earnings visibility for next several quarters
Order Book for Line Pipes of approximately 1 Million MT, active bid book of 1.5 Million MT
Won a significant order for a Carbon Capture Pipeline project in the US
Commencement of regular dispatches from state-of-the-art Ductile Iron pipe plant
Acquired the specified assets of ABG Shipyard Limited
Profits impacted on account of high Inventory Cost in Steel Vertical
Note: Sales Volume & Order Book includes our Saudi operations
I. Pipe Vertical (Line Pipes)
The Line Pipes Business has seen a robust performance with a global sales volume of 218 KMT and
EBITDA of Rs. 256 cr for the quarter (including Rs. 104 cr from the sale of land and civil structures in Dahej).
Further, the US Production has also significantly ramped up, and the dispatches against the projects will
start in Q4, and thus will significantly contribute to the FY profitability.
The confirmed order book of the Line Pipes Business is close to a million metric tonnes and the company
is in a favourable position for few additional large orders. This gives a clear business and earnings visibility
for the next 5-6 quarters (till the end of FY24).
OPEC+ took a decision to cut a massive ~2mb/d of oil production which is equal to 2% of global supply in
their meeting held in early October, to try and create a tighter demand-supply balance in the global markets.
It is thus estimated that the oil demand & price, both are likely to stay firm for the foreseeable future.
On the Steel side, we have seen significant downward correction in prices owing to recessionary pressures,
lower demand conditions in Europe and worries about the China housing market. In India, Steel Prices
have also significantly corrected (>20%) after Ministry of Steel imposed an export duty of 15% in May 2022.
India
The current environment of reasonably high energy prices coupled with a decline in global prices of steel
will lead to a robust capex cycle in the O&G sector globally, which has been dormant for past few years.
We are seeing resurgence of various stalled projects and are in active discussions for several export orders
across the world with a focus on Europe, Australia, South America, South East Asia and Middle East.
BUSINESS UPDATE
The Indian Government has envisioned a clear roadmap for energy with a major focus on gas as a cleaner
fuel. Gas demand prospects in India remain strong as the Government has set a target to raise the share
of natural gas in the energy mix from the current 6.7% to 15% by 2030. Gas demand will be driven by
fertilisers, CGD players, petrochemicals and refineries. This will result in continuously expanding the gas
and CGD pipeline network on Pan India basis, and will be a key driver for the growth of the line pipe industry.
Similarly, the correction in the domestic steel pricing has brought back the demand in the Water sector, as
there is an accelerated need for the development of irrigation facilities. We are seeing increased
engagement across the States of Gujarat, Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh, Punjab
and Rajasthan. There is a strong intent to meet the ambitious targets as envisaged in various Government
schemes. The focus by both the Central and State Governments on developing water infrastructure is
expected to drive the demand for large diameter HSAW pipes.
USA
After years of under-investment in O&G exploration and infrastructure, the US is now focused on boosting
its oil and gas supply to cater to their domestic energy needs as well as for exports to cater the energy
needs in Europe. The number of active oil and natural gas drilling rigs in the United States rose by 229, or
42%, in the past year, to the highest point since March 2020. (Source: Baker Hughes)
Date of Last Year’s Count
22 Oct 2021
Count
Last Count
Count
Change from Last Year
542
21 Oct 2022
771
+229
The increased drilling activity is necessitating the need for creating additional Gas Exports lines. Volumes
are set to reach more than 21 Bcf/d by the end of November, according to the EIA, a record high and up by
9% since last year. The Permian basin, where the maximum drilling activity seems to be happening, will
need additional 2 or 3 large gas pipeline projects for evacuation of gas to the Gulf coast, in the coming 3-5
years.
There is also an extremely strong focus on New Energy including Carbon Capture and Ammonia pipelines.
We recently announced winning of a significant order for a Carbon Capture Pipeline project in the United
States. This order is for supply of 785 miles (1,256 KM) or 100,000 MT (approximately) of High Frequency
Induction Welding (HFIW) pipes, and would be used for transporting captured carbon dioxide. The pipes
for this order will be produced from our Little Rock plant in the US and the same will be executed in FY 23‐
24. Given the commitment for reducing GHG emissions and the incentives attached to this sector, we would
see continuously a very robust demand for such pipelines for the next couple of years.
With us being one of the largest player, we are confident of maximizing our capacity utilization and earnings
/ profitability for this asset in subsequent years also.
BUSINESS UPDATE
Saudi Arabia
Saudi Aramco reported its highest quarterly profit (for the period to June 30, 2022) since the company went
public in 2019, boosted by higher oil prices and refining margins. The company expects both the oil & gas
demand to continue to grow for the rest of the decade. Saudi Aramco stands ready to raise oil output to its
maximum sustained capacity of 12 million barrels per day and has announced a capex enhancement from
$31.9 Billion to $40-$50 Billion for this year.
SWCC is currently the largest desalination corporation in the world, providing water to over 34 million
people. For the distribution of Desalinated water, 7 large water infrastructure projects are planned which
would result in total demand exceeding 3 million metric tonnes of pipelines over 3 years
With high oil prices, increased global gas demand and the current geopolitical situation in the world, we see
robust business opportunities for the next 5-7 years, both in the Oil & Gas and the Water segment, in KSA.
With us being the largest player, we are confident of maximizing our capacity utilization and earnings /
profitability for this asset.
II. Steel Vertical (Pig Iron + DI Pipes)
The state-of-the-art Blast Furnace, which was commissioned in July 2022, is running efficiently with a
consistent output of 1,000 MT/day of hot metal, with a potential to increase this up to 1,500 MT/day.
However, this is currently being regulated, as the production of DI pipes is being ramped up on gradual
basis.
Our DI plant, having a capacity of 400,000 MT and equipped with the latest cutting-edge technology, has
received the BIS certification and Government approvals in the Key States of Gujarat, Uttar Pradesh,
Madhya Pradesh, Rajasthan, Maharashtra, Chhattisgarh and Punjab, achieving its 1st major milestone.
The quality of the product is widely accepted by the customers and as on date have an order backlog of ~
70,000 KMT valued at ~ Rs. 500 Cr.
The operational performance of both our steel and DI facilities are in line as planned and meeting
expectations. Though the profitability for the quarter has been severely impacted on account of high
inventory cost (especially coke), as being faced by all other steel makers at large, and the lower sales
realization on steel product (pig iron) on account of imposition of export duty @ 15% thereby softening the
domestic steel price and making it difficult for the company to sell overseas. The overall financial impact is
~ Rs. (200) cr for the quarter.
BUSINESS UPDATE
However, moving forward, the product quality, expansion of customer base, production ramp up and
commodity pricing getting more predictable, the financial performance of the business will significantly
improve in subsequent quarters.
From a demand perspective we see a continued focus on creating drinking water supply infrastructure in
India under the Jal Jeevan Mission where against the allocated budget of ~ Rs. 3,60,000 crores, an amount
of ~ Rs. 3,01,000 crores is yet to be spent, giving clear visibility of demand growth over the next few years.
III. Steel Vertical (Long Products - TMT)
Our newly commissioned state-of-the-art TMT plant, having a capacity of 350,000 MT, has received the
BIS certification and is ready for commencement of dispatches.
The key growth drivers continue to be spend on infrastructure, housing and construction. Our key target
market of Gujarat has a consistent annual demand of 3 million MT per annum, of which only ~ 2 million MT
is produced in the state. With our quality and customer-centric approach we are confident to establish our
product as a leading B2C brand in the Western market.
IV. Welspun Specialty Solutions Limited (WSSL)
Order Book for Stainless Steel Bars: 1,387 MT & Tubes and Pipes: 1,853 MT (valued at ~ Rs. 170 cr)
Pipe Sales Volumes for Q2 FY23 up 96% YoY
Total Income from Operations for Q2 FY23 at Rs. 93.7 cr, up 351% YoY, EBITDA at Rs. 0.3 cr vs. loss
of Rs. (4.3) cr in Q2 FY22
The key demand is from sectors like oil refineries, petrochemicals, chemicals, pharmaceuticals, defense
and power. Our healthy order book, approvals & accreditations across these sectors, incremental
performance demonstrated on a QoQ basis, quality acceptance both in domestic and export markets and
Government thrust on Make in India initiative, will all lead to improved earnings and better margins in
quarters to follow.
V. Other Updates
(A) Acquisition of the Specified Assets of ABG Shipyards
Welspun was the successful bidder in terms of the Process Memorandum for the private sale of specified
assets of ABG Shipyard Limited (in liquidation). WCL and its wholly owned subsidiary (Nauyaan Shipyard
Pvt. Ltd.) has paid, on September 21, 2022, Rs. 659 crore (plus applicable taxes) towards the entire
purchase consideration. The partially built ships, equipment and metal scrap acquired under WCL is
BUSINESS UPDATE
estimated to be over ~ 150,000 MT. It is estimated that the Metal / Metal scrap not required for business
purposes will be disposed over 12-15 months.
Post payment was made to ABG’s Liquidator and receipt of sale certificates by us, the Liquidator received
a Provisional Attachment Order from ED, Ahmd. The Company, the Liquidator and the Lenders (SBI & IDBI)
have all filed separate writ petitions before Hon'ble Gujarat High Court against ED's Provisional Attachment
Order. We are making best efforts for an early and favorable disposition.
(B) Acquisition of Sintex BAPL Ltd.’s Non-Convertible Debentures
WCL’s growth strategy entails creating a diversified product portfolio, repurposing its business to add new
target segments, expanding its offerings to address both the B2B and B2C markets, and making well-
considered strategic acquisitions. In this regard, we have acquired Sintex BAPL Ltd.’s Non-Convertible
Debentures with outstanding of Rs. 1,223 Crore for a purchase price of Rs. 418 Crore (as on date) by our
wholly-owned subsidiary viz. Mahatva Plastic Products And Building Materials Private Limited.
Propel Plastic Products Private Limited (SPV being acquired) has submitted EOI as required by the
resolution professional and under the timelines announced, the process is likely to be completed within Q4
FY23.
(C) Sale of Land & Civil Structures at Dahej Plant
WCL has entered into a Memorandum of Agreement on September 30, 2022 for sale of land, civil structures,
excluding plant & machinery, situated at Dahej unit of the Company in the state of Gujarat. The said unit
comprises an insignificant portion of the operations of the Company and the management feels that the
transaction would not have any material and adverse effect on operations of the Company. The
consideration receivable for the sale of land is Rs. 130 crores.
(D) ESG Initiatives
We emphasize ESG data governance and integrating ESG measurements into an internal control
framework and internal audit programme. As part of this, we have implemented ESG Compass - an
Integrated Digital Platform for measuring, monitoring, and reporting on ESG KPIs. It covers over 90 ESG
indicators across all sites and locations in India and presents data in a dashboard format which helps us to
automate manual data collection and streamline reporting processes.
BUSINESS UPDATE
VI. Company Outlook
In the Medium Term (3 to 5 years), WCL aspires to reach the following metrics:
Top line of Rs. 15,000 Cr +
Sustainable EBIDTA of Rs. 1,600 Cr to Rs. 1,800 Cr
ROCE of 18%+
Net Cash Positive driven by strong Free Cashflows
Increase in DJSI ESG ratings from 41 to 60
Dominant player in B2B and B2C segment in line with group vision of “Har Ghar Welspun”
VII. Management Comments
“I am delighted by the completion of the Ductile Iron Pipe plant. This is one of the largest single location DI
Pipe Plants in India and will help in supporting access to potable water across our nation. Over the coming
years, the new plant will contribute immensely to WCL’s Business Growth and Strategy. The diversification
of the product portfolio will result in consistency and earning predictability. Furthermore, the order backlog
in the line pipes business has been steadily improving. I am extremely optimistic that the business prospects
being pursued globally would yield positive results and will add further strength to the company’s position.
The order win in the US for a Carbon Capture project will set the tone for future such orders which will lead
towards a more sustainable planet.” said Mr. B. K. Goenka, Chairman, Welspun Group.
VIII.
Financial Highlights of the Quarter ended September 30, 2022
-
-
Prior period figures are restated after the acquisition of the Steel business of Welspun Steel Limited
Financial Highlights (Consolidated) for Continuing Operations (Ind AS)
1. Global Order Book – Line Pipes
Current Global Order Book stands at 956 KMT valued at Rs. 13,750 cr
2. Sales Volumes (Q2 FY23)
Line Pipes: 218 KMT vs. 180 KMT YoY
SS Pipes 1,009 MT vs. 515 MT YoY
3. Revenue from Operations
Revenue from Operations for Q2 FY23 at Rs. 1,964 cr
4. EBITDA
Reported EBITDA for Q2 FY23 at Rs. 46 cr, impacted by initial losses in Steel Vertical.
BUSINESS UPDATE
5. Profit (Continuing Operations)
PAT (after Minorities & share of JVs) stands at a loss of Rs. (57) cr
6. Net Debt / (Cash) position
Figures in Rs. Cr
Increase in Net Debt primarily on account of acquisition of specified assets of ABG Shipyards, Capex in
Steel Vertical and RM inventory payments for the ramp-up of operations in the US.
IX. Consolidated Performance Snapshot
Figures in Rs. Cr
Prior period figures have been restated, wherever necessary
Consolidated debtSep-22Jun-22Mar-22Gross Debt 2,907 2,063 2,021 Cash & Cash Equivalents 1,298 2,179 2,195 Net Debt / (Cash) 1,609 (116) (173)Sales Volumes Q2FY23 Q1FY23 Q2FY22 H1FY23 H1FY22 Line Pipes (KMT) 218 157 180 375 356 Pig Iron (KMT) 11 - - 11 - DRI (KMT) 18 1 0 18 2 Billets (KMT) 16 36 37 52 83 SS Bars (MT) 1,081 1,557 - 2,638 142 SS Pipes (MT) 1,009 692 515 1,701 873 Consolidated Profit & Loss Account Q2FY23 Q1FY23 Q2FY22 H1FY23 H1FY22 Continuing OperationsTotal Revenue from Operations 1,964 1,322 1,542 3,286 3,052 Other Income 177 73 54 250 91 Reported EBITDA 46 102 175 147 381 Depreciation and Amortisation 70 61 63 131 127 Finance Cost 47 31 23 78 45 Profit before tax and share of JVs (72) 10 88 (62) 209 Share of profit/(loss) from Associates and JVs 14 4 (5) 17 (3)Tax expense 5 14 27 19 64 Non-controlling interest (7) (5) (7) (12) (15)PAT after Minorities, Associates & JVs (57) 4 63 (52) 157 Basic EPS from Continuing Operations (2.2) 0.2 2.4 (2.0) 6.0 BUSINESS UPDATE
Saudi Financials
Key figures of East Pipes Integrated Company for Industry (EPIC):
Figures in SAR Mn
Prior period figures have been restated, wherever necessary
Particulars in SAR MN Q2FY23 Q1FY23 Q2FY22 Saudi Arabia Ops:Sales / Revenue 303 206 121 Gross Profit 15 19 9 Operational Profit 14 12 5 Net Profit after Zakat and Tax 9 6 -1 Total Comprehensive Income 9 6 -1 BUSINESS UPDATE
Q2 FY23 Investor & Analyst conference call: Thursday, 3rd November 2022 | Time: 4:00 PM IST
Primary Access: +91 22 6280 1325 / +91 22 7115 8226
International Toll-Free numbers
o Hong Kong: 800 964 448
o Singapore: 800 1012 045
o UK: 0808 101 1573
o USA: 1866 746 2133
About Welspun Corp Ltd. (WCL)
Welspun Corp Ltd. (WCL), a flagship company of the global conglomerate 'Welspun Group', is one of India's fastest-
growing multinationals with a leadership position in line pipes, home textiles, infrastructure, warehousing, retail,
advanced textiles, and flooring solutions.
WCL is a one-stop service provider offering end-to-end pipe solutions ranging from 1½ inches to 143 inches. The
company’s ever-expanding goals and targets have helped them reach out to several parts of the world - six continents
and fifty countries - where they’ve successfully supplied pipes to numerous critical projects globally, both for offshore
and onshore applications.
Welspun Corp Ltd. is synonymous with great quality and an impeccable execution track record, coupled with world-
class technology and innovation. Their line pipe capabilities encompass HFW (High-Frequency Welded), HFIW (High-
Frequency Induction Welded), HSAW (Horizontal Submerged Arc Welded), and LSAW (Longitudinal Submerged Arc
Welded). The company also manufactures BIS Certified Steel Billets, Direct Reduced Iron, Stainless-Steel Pipes, Tubes
& Bars.
Additionally, they have forayed into the production of Pig Iron & the manufacture of DI Pipes, catering to growing water
infrastructure requirements. WCL’s growth strategy entails creating a diversified product portfolio, repurposing its
business to add new target segments, expanding its offerings to address both the B2B and B2C markets, and making
well-considered strategic acquisitions.
The diversification into the B2C segment will help the Company to significantly expand its base, enhance its brand,
penetrate new markets, build a distribution network, and provide opportunities to develop new products. In this pursuit,
WCL has also announced the commencement of its TMT facility, thereby taking the company's portfolio from being a
large-scale B2B business to a B2C business in the next few months. WCL is also foraying into polymer/plastic business
segment, which is another step towards creating a strong B2C organization in line with the overall strategy.
___________________________________________________________________________________
For further information please visit www.welspuncorp.com ___________________________________________________________________________________
DISCLAIMER: The information in this release has been included in good faith and is for general purposes only. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this release shall constitute an invitation to invest in Welspun Corp Ltd. or any of its affiliates. Neither Welspun Corp Ltd., nor their affiliates' officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.
Welspun Corp Limited Investor Presentation | Q2 FY23
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 subject to change without notice, its accuracy, fairness or completeness is not guaranteed and has not been independently verified unless specifically provided and no express or implied warranty is made thereto. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. Neither the Company nor any of its directors assume any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document is for informational purposes and does not constitute or form part of a prospectus, a statement in lieu of a prospectus, an offering circular, offering memorandum, an advertisement, and should not be construed as an offer to sell or issue or the solicitation of an offer or an offer document to buy or acquire or sell securities of the Company or any of its subsidiaries or affiliates under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, both as amended, or any applicable law in India or as an inducement to enter into investment activity. No part of this document should be considered as a recommendation that any investor should subscribe to or purchase securities of the Company or any of its subsidiaries or affiliates and should not form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax, investment or other product advice.
With respect to any ESG related disclosures, the information contained in our disclosures, statements or reports are specific to the Company and not audited or confirmed to be compliant with any general or standard benchmark. A number of statements in such disclosure or statements may contain forward-looking statements including statements about the Company’s strategic priorities, financial goals and aspirations, organic growth, performance, organizational quality and efficiency, investments, capabilities, resiliency, sustainable growth and Company management, as well as the Company’s overall plans, strategies, goals, objectives, expectations, outlooks, estimates, intentions, targets, opportunities, focus and initiatives.
With respect to all disclosures provided herein, the statements contained herein may be pertaining to future expectations and other forward-looking statements which involve risks and uncertainties that are subject to change based on various important factors (some of which are beyond the Company’s control). These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers including with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “forecast,” “project,” “anticipate,” “likely,” “target,” “expect,” “intend,” “continue,” “seek,” “believe,” “plan,” “goal,” “could,” “should,” “would,” “may,” “might,” “will,” “strategy,” “synergies,” “opportunities,” “trends,” “future,” “potentially,” “outlook” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results, performances or events may differ from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, or that assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.
Reproduction, distribution, republication and retransmission of material contained herein is prohibited without the prior consent of the Company
Investor Presentation
2
Sales Volumes at a Glance: Q2 FY23
Line Pipes
218 KMT
Pig Iron
11 KMT
Billets
16 KMT
TMT Bars
Trial Production
DI Pipes
Trial Production
SS Bars
1,081 MT
DRI
18 KMT
SS Pipes
1,009 MT
Note: Pipe Sales volumes include Saudi Arabia operations
Investor Presentation
3
Financial Results for Q2 FY23
Note: • •
Consolidated Financials pertaining to continuing operations Prior period figures are restated wherever necessary
Investor Presentation
4
Particulars (Rs Cr)Q2FY23Q1FY23QoQQ2FY22YoYTotal Revenue from Operations 1,964 1,322 48.6% 1,542 27.3%Other Income 177 73 143.6% 54 227.0%Reported EBITDA 46 102 -54.9% 175 -73.8%Depreciation and Amortisation 70 61 14.3% 63 10.3%Finance Cost 47 31 55.2% 23 106.2%Profit before tax and share of JVs (72) 10 88 -181.2%Share of profit/(loss) from Associates and JVs 14 4 278.8% (5)-353.9%Tax expense 5 14 -64.5% 27 -81.5%Non-controlling interest (7) (5)30.2% (7)-8.9%PAT after Minorities, Associates & JVs (57) 4 63 -190.2%Basic EPS from Continuing Operations (2.2) 0.2 2.4 -190.0% Financial Performance
Consistent Performance over the last 10 years
Note: • • •
Consolidated Financials Prior period figures are restated wherever necessary; All numbers of this sheet are based on IND-AS disclosures From FY19 figures are pertaining to continuing operations only
Investor Presentation
5
ParticularsFY13FY14FY15FY16FY17FY18FY19FY20FY21FY22H1FY23Revenue (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 Basic EPS6.1 2.8 2.6 5.8 1.0 6.0 2.6 25.6 29.8 16.8 (2.0) Net Worth (INR cr)2,750 2,957 2,799 2,799 2,809 2,854 2,798 3,215 4,209 4,528 4,479 Net Debt / (Cash) (INR cr)2,314 2,568 1,910 1,355 1,106 422 286 32 (447) (173) 1,609 Net debt/Equity0.84x0.87x0.68x0.48x0.39x0.15x0.10x0.01x-0.11x-0.04x0.36x Sales Volume Mix: Line Pipes (Long Term Trend)
635
646
632
650
764
510
393
217
165
236
138
255
265
197
180
222
237
106
96
629
413
578
500
423
626
506
254
123
190
99
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
India (KMT)
USA (KMT)
Saudi (KMT)
Investor Presentation
6
WCL as “it was”: High Quality Line Pipe Business
Top 3
50+
15+ MN MT
Among Line Pipe Manufacturers globally
Approvals from O&G majors; Qualifies for global bidding
Pipes delivered since inception with multiple repeat orders
2.5 mn MT Pipes Capacity
6 manufacturing facilities in 3 countries
Used in Oil & Gas, Water industry & Structurals
Investor Presentation
7
Approvals & accreditations: Line Pipes
Oil & gas
Transportation
Others
Investor Presentation
8
Global Supply Chain
Name
Country
Dillinger
VAGB
Posco
Nippon
JFE
Bao
France and Germany
Austria
South Korea
Japan
Japan
China
More than 2
million MT of
plates procured in
last 10 years
Healthy Relationships with Suppliers across the world: A key factor for our Global Leadership Position
Investor Presentation
9
Existing
Large Diameter Pipe and Coating
New Energy
Amongst the Top manufacturers globally
s s e n i s u B
l
e a c S
s u c o F
Welspun Corp: Transforming into a Conglomerate
New
Pig Iron and DI Pipes
Specialty Steel
Billets & TMT1)
ABG Shipyards
Planned
Plastic Products
One of the largest standalone single location facility
Integrated producer from steel-making to finished products
Oil & Gas & New Energy
Jal Jeevan Mission
Nuclear, Defense & Power
One of the largest players in the Key Growth Market of Western India
Infra & Housing
One of the largest shipyard infrastructure in India
Acquisition2) of one of the largest national level brand
Defense
B2C
Greenfield
Acquisitions
Note: 1) Through Forward Integration 2) Acquired Sintex BAPL Ltd.’s Non-Convertible Debentures with outstanding of Rs. 1,223 Crore for a purchase price of Rs. 418 Crore
10
Our Manufacturing Facilities
Capacity
India
US
Saudi Arabia
Products / City
Anjar
Dahej
Mandya
Bhopal
Jhagadia
Little Rock
Dammam
350
250
200
350
400
LSAW
HSAW
ERW/ HFIW
Line Pipes (KMT)
TMT Bars (KMT)
DI Pipes (KMT)
SS Bars (KMT)
SS Pipes (KMT)
150
305
350
1,605
350
175
525
375
375
150
18
Investor Presentation
Total
700
1,430
375
2,505
350
400
150
18
11
Line Pipes: Key Drivers
India
USA
Saudi Arabia
• Expansion of National Gas Grid
pandemic levels
• Rig count almost close to pre-
Pipeline
• City Gas Distribution (CGD)
network
• Strong export outlook with focus on Australia, Central America, South East Asia and Middle East • Demand returning in the Water sector with moderating steel prices
• Permian basin expected to be the
key growth driver
• At least 3 more large gas
pipelines planned from Permian to Gulf coast; 5 new LNG terminals being added for export of gas
• Big focus on New Energy
including Carbon Capture and Ammonia pipelines
• Saudi Aramco to boost oil
production from 10 million to 13 million barrels a day by 2027
• Saudi Aramco to boost gas
production by more than 50% by 2030
• Huge capex in distribution of
Desalinated water; 7 large water infrastructure projects planned; Total demand exceeding 3 MN MT over 3 years
Source: Government websites, news articles, market intelligence
12
Line Pipes: Key Drivers
This is the future for pipelines
Hydrogen:
New Energy
• 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 us a head start in the global new energy market (in case of success)
Carbon Capture:
• Recently secured a strategic and breakthrough order of 1,250 KM of HFIW pipes (>100 KMT); This will put us
again in the pole position in the new energy market
Line Pipes: Global Order Book Position Order Book and Outlook providing visibility for next several quarters
• Confirmed Order
Book of ~1 MN MT (including Saudi Arabia)
• Clear earning
visibility for next 5 to 6 quarters
As of 31st Oct'22Confirmed Order BookMTQ3FY23Q4FY23Q1FY24Q2FY24Q3FY24Q4FY24Line PipesIndiaLSAW1,20,000 HSAW1,30,000 ERW30,000 USAHSAW3,35,000 ERW1,25,000 Confirmed order bookIn pole position for few orders Ductile Iron Pipes: Market Overview
Our Focus Market will be West, Central and North India
Received State Approval
Ductile Iron Pipes: Market Overview
Huge focus on creating drinking water supply infrastructure in India
Annual demand expected to be ~3 MN MT
• • WDIPL has an order book of ~66 KMT giving visibility for next 2 quarters • •
Strong demand for next 3 to 5 years Plant under stabilization phase and should be fully on stream in next 2 quarters
Source: Jal Jeevan Mission website
S.No.StateJJM BudgetFY 2019-20FY 2020-21 FY 2021-22FY 2022-23 YTDTotal Exp. Till DateBalance AmountH(D+E+F+G)1Uttar Pradesh62,963 639 1,761 2,930 2,986 8,317 54,646 2Madhya Pradesh23,577 327 1,015 2,263 1,098 4,702 18,875 3Rajasthan20,059 620 762 1,920 1,313 4,615 15,444 4Maharashtra20,042 308 474 378 432 1,591 18,451 5Chhattisgarh9,694 39 224 499 446 1,208 8,486 6Punjab3,803 73 147 248 139 606 3,197 7Haryana3,772 69 131 435 152 787 2,985 8J&K2,823 200 89 112 84 485 2,338 9Gujarat3,441 385 839 2,125 1,415 4,763 -1,322 1,46,733 2,276 4,602 8,785 6,649 22,312 1,24,421 3,59,875 6,000 12,542 25,506 14,728 58,776 301,099 TOTALTotal JJM Budget (at India Level)Value in INR (crores)Central ExpenditureABCDEFGC-H Specialty Steel: SS Pipes Outlook
Robust demand expected going forward
Key Drivers
•
•
• Make in India initiative by the government providing push to local manufacturing High value business and a differentiated import- substitution play with obvious synergies with existing business and capabilities, characterized by superior margins and resilient demand High Entry Barriers due to technology capabilities as well as approvals and accreditations required from customers, process licensors, and EPC players Implementation of BIS and the proposal for Anti- Dumping Duty on substandard and cheap imports to lay a strong foundation for substantial growth
•
Sectors & Demand
•
•
Critical applications in key sectors like Power, Nuclear, Defense, Petrochemicals etc. Demand Estimate: ~65 KMT in Domestic Market and ~25 KMT in Exports per Annum
Visible Turnaround
• Healthy order book of 1,853 MT for Pipes &
Tubes (At the end Q2 FY22)
• Product acceptability both in the domestic and
export market
• Moving towards higher value added grades such
as Nickel Alloy, Duplex & Super Duplex
• Only facility which is fully integrated from SS
Steel to Pipes
Source: News articles, Market intelligence, Internal estimates
TMT: Our Differentiated Strategy
Forward Integration from Billets to TMT
Growth Drivers
Welspun Strategy
•
Infrastructure: Massive spending expected in the sector including –
•
Sharp focus on ₋
₋
₋
₋
₋
PM Gati Shakti National Master Plan: an expected outlay of INR 100 lakh Cr
Pradhan Mantri Awas Yojana-Urban's 'Housing for All' mission
(PMAY-U)
Private Sector Capital Expenditure
Individual House Builders
₋
₋
Branding and creating a robust distribution network - B2C segment Presence in High growth Western India (especially Gujarat) region where Welspun enjoys strong brand presence Differentiated Strategy to add value like Epoxy Coating on rebars and Pre- Fab rebars
a
~3 MN MT per Annum demand expected in Gujarat for TMT rebars
Synergy with our steel business
Source: News articles, Market intelligence, Internal estimates
ABG Shipyards: 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 months
Post payment was made to ABG’s Liquidator and receipt of sale certificates by us, the Liquidator received a Provisional
Attachment Order from ED, Ahmd. The Company, the Liquidator and the Lenders (SBI & IDBI) have all filed separate writ
petitions before Hon'ble Gujarat High Court against ED's Provisional Attachment Order. We are making best efforts for
an early and favorable disposition.
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 “Har Ghar Welspun”
Investor Presentation
20
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 Sustainability Index (DJSI) Corporate Sustainability Assessment
Investor Presentation
21
Sustainability Targets
Aspects
FY 2020-21
Goal 2025
Goal 2030
Goal 2040
Carbon Neutrality - % Renewable Energy (RE)
Water Neutrality - Water Intensity
10% RE
20% RE
Carbon neutral
0.63 KL/MT
0.55 KL/MT
0.40 KL/MT
Water neutral
Waste to Landfill
1.53 MT
1.00 MT
0 MT
Zero waste to landfill
Impacting Lives in CSV
1,60,735
5,00,000
1,000,000
2,000,000
Sustainable Supply Chain - % suppliers assessed as per ESG compliant Code of Conduct
100% critical suppliers assessed
100% (all suppliers)
100% (all suppliers)
Note: 1) Sustainability targets for Line Pipes India business 2) Impacting Lives in CSV through Welspun Foundation
Investor Presentation
22
Thank You
Welspun Corp Limited CIN: L27100GJ1995PLC025609
www.welspuncorp.com
For further information, please contact:
Mr. Gaurav Ajjan gaurav_ajjan@welspun.com
October 2020