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WPIL Ltd Investor Presentation 2024

Aug 8, 2024

62191_rns_2024-08-08_a3aeaea1-3241-4763-aa5b-83ed7877c00d.pdf

Investor Presentation

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KRISHNA KUMAR Digitally signed by KRISHNA KUMAR GANERIWALA Date: 2024.08.08 10:19:09 +05'30'

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GANERIWALA
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E A R N I N G S P R E S E N T A T I O N - Q 1 F Y 2 5

COMPANY SNAPSHOT

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Market Leader in
10 Strategic International End to End
Rich Experience Pumps &
Manufacturing Presence Across Integrated Pumping
of 71 Years Pumping
Locations 4 Locations Solutions
Systems
Strong global
presence via Consolidated Partner of choice Proud to be part of
focussed Orderbook ~ for engineered flow Jal Jeevan Mission
acquisitions and INR 37,983 Mn applications of GOI
joint ventures
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2

EARNINGS PRESENTATION

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COMPANY OVERVIEW

COMPANY OVERVIEW

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Operating Revenue (INR Mn) and EBITDA Margins (%)
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  • WPIL Limited is a multinational pumps and systems company, headquartered out of India, with diversified operations covering the entire gamut of the pumping industry incorporated in 1952.

  • The Company has to its credit a rich experience of more than 71 years in Designing, Developing, Manufacturing, Erecting, Commissioning and Servicing of Pumps & Pumping Systems.

  • Over the 1st 50 years, the company focused on developing its core technology of centrifugal pumps and building a robust manufacturing infrastructure to support its business. This was built in tandem with India’s industrial growth and the company is proud to be major part of the Conventional Power growth story. A large installed base across the country, across industry, irrigation and water supply sectors lies testimony to its growth.

  • After consolidating its position as a leading pump and pumping systems company in India, the company expanded its operations globally and now has operations in Italy, South Africa, Australia and Thailand through its Group companies.

  • Constant investment in manufacturing and R&D supported by 10 manufacturing locations covering the entire process of pump manufacture from casting, fabrication, machining, assembly and testing have allowed it to deliver great value to its client by enhancing efficiencies at every step.

  • The company continues its expansion into newer markets and is focused on becoming a Global leader in its sector.

  • Expansion in the turn-key water project space required building out Civil construction capabilities internally, adjacent to the firm’s fundamental expertise in creating pumping systems targeting presence in the unsaturated Indian market before heading overseas.

  • Looking ahead, WPIL envisions vast growth potential in both its core markets – engineered flow control products and turn-key water projects.

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16,644
16,055
11,813
17.92%
17.81% 16.66%
3,625
16.61%
FY22 FY23 FY24 Q1-FY25
Revenue EBITDA Margin
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Q1-FY25 Geographical Revenue (%)

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International
34%
India
66%
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EARNINGS PRESENTATION

GLOBAL OPERATIONS

  • After 10 years of growth in exports and experience in global markets it was clear that the next step would need strong local presence as the engineered pumps clients need life cycle support which has to be built on long term relationships.

  • Over the years, WPIL Ltd. conducted extensive diligence to identify 3 regions (6 companies) – Italy (Gruppo Aturia, Finder), South Africa (APE Pumps, Mather & Platt), and Australia (Sterling Pumps, United Pumps) – that would facilitate the journey of adding new flow control products and industry-leading clients. By acquiring these, WPIL Ltd. cements position as a world player.

  • Today, these businesses are well integrated and the Group looks ahead to further inorganic growth following its ethos of building on competencies and synergies.

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Italy
India
South Africa
Australia
a
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Q1-FY25 Revenue Mix (INR Mn)
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International
1,231
India
2,394
Total : ~3,625 INR Mn
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Large engineering and back-office team
remains in India
Australia
South
Africa 50
120
Italy
196 India
645
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Total : ~ 1,011 Manpower

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EARNINGS PRESENTATION

INDIA OPERATIONS - STATE-OF-ART MANUFACTURING FACILITIES

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Kolkata

Engineered Pump Division is Located about 25 KM from Kolkata, the plant has ~20,000 sq. meters of floorspace.

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Delhi

Industrial Pump Division is Located about 20 KM from Delhi, the plant has ~49,000 sq. meters of floorspace.

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Nagpur

Engineered Pump Division is Located about 26 KM from Nagpur, the plant has ~70,000 sq. meters of floorspace.

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Thane

Drainage Pump Division is Located about 21 KM from Mumbai, the plant has ~6,000 sq. meters of floorspace.

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Delhi
Nagpur
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EARNINGS PRESENTATION

BUSINESS STRUCTURE

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WPIL Ltd.
International
India
34%
66%
Project Product South Africa Italy Australia
77% 23% 18% 63% 19%
Gruppo Aturia
Conventional Engineered Drainage
Irrigation Municipal Industry
Pumps Pumps Pumps AUDOLI & ARIS
BERTOLA CHIAPPA
% numbers are revenue share as on Q1 FY25
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EARNINGS PRESENTATION

VARIED RANGE OF APPLICATIONS

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Industrial

Irrigation

Large lift irrigation networks to provide surface water to farmers and borehole installations for ground water to smaller farmers. New piped irrigation schemes for more efficient utilization of water.

Used in industries for variety of purposes such as fire fighting, sewage, chemicals, pulp and paper, steel, heating & cooling of systems, washing, storage, general industry and other industrial applications.

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Municipal

Water Supply & Drainage solutions for Rural and Urban Utilities including Raw water Intakes, treatment plants , reservoirs and distribution networks.

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Fire Fighting

Solutions for Off- shore/ On shore infrastructures, mining, petrochemicals industries, refineries, civil and industrial plants.

Oil and Gas

Chemical and petrochemical plants, off-shore plants, oil and gas plants, energy installations.

Conventional and Nuclear Power

Cooling, drainage, dewatering, seal water and fire-fighting pumps across Thermal and Nuclear power plant.

EARNINGS PRESENTATION

8

VALUE PROPOSITION

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Global Operations Strong R&D
Forward integrated Wide product basket
Dominant player in supported by Marquee clients recognized by Govt.
by providing Turnkey catering to a
Industrial Pump subsidiaries and from Top class Of India and
solutions and O&M widespread market
Sector agent network and industries supported by Global
services segment
service centers R&D center in Milan
Domain expertise Strong opportunities
Offers 50% Amongst the Market Diversified product
enhanced by global for large organized
customization in Leaders in Pumping portfolio catering to
acquisitions & players in the
Pumping Segment Solutions vast applications
mergers segment
Improved margin
Healthy return ratios
profile over the
and zero net debt
years
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EARNINGS PRESENTATION

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Q1-FY25 FINANCIAL OVERVIEW

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EARNINGS PRESENTATION

FINANCIAL HIGHLIGHTS

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Q1-FY25 Standalone Performance Q1-FY25 Consolidated Performance
16.67% 16.61%
INR 2,394 Mn INR 399 Mn INR 3,625 Mn INR 602 Mn
Operating EBITDA Operating EBITDA
Operating Income Operating EBITDA Operating Income Operating EBITDA
Margins Margins
INR 308 Mn 12.87% INR 3.16/Share INR 431 Mn 11.89% INR 3.96/Share
Net Profit PAT Margins Diluted EPS Net Profit PAT Margins Diluted EPS
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  • One Equity Share of Face Value of Rs. 10/- each has been subdivided (split) into Ten Equity Shares of Re. 1/- each, effective from July 12, 2024. The EPS for Current and Previous periods have accordingly been calculated/restated, considering Face Value as Re. 1/- per share.

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EARNINGS PRESENTATION

Q1-FY25 HIGHLIGHTS - DOMESTIC

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Domestic revenues grew 30% YOY in Q1 FY25

Product Business

  • Product division revenues were stable YOY at INR 550 Mn while the order book grew 15% to INR 4,001 Mn, giving a strong revenue visibility and outlook for FY25

  • The outlook for the Product division is improving based on product portfolio expansion and strong market presence

  • − Navy order execution is on track with the start of type testing for various models

Projects Business

  • Projects division revenues grew 40% YoY at INR 1,840 Mn

  • Project execution momentum remains strong and good growth is expected post the Monsoon season in the second half of the year

  • A large number of projects are planned for commissioning over the next 4 months which will strengthen the company's position in the

  • sector

  • Good revenues have been achieved in the 8 projects of Madhya Pradesh Jal Nigam and 3 projects are planned for commissioning over the next 4 months

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EARNINGS PRESENTATION

Q1-FY25 HIGHLIGHTS - INTERNATIONAL

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  • The International business orderbook has grown to INR 4,840 Mn and the outlook remains strong across all businesses

  • New contract for water transfer pumps for Gruppo Aturia strengthens year end outlook

  • WPIL South Africa performance remains steady with new opportunities in the water sector post South Africa elections

  • Both Sterling Pumps and United Pumps Australia have record order books and are expected to post strong revenue growth in FY25

  • WPIL Thailand continues its strong performance

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EARNINGS PRESENTATION

DOMESTIC REVENUES

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Project Revenue (INR Mn) Product Revenue (INR Mn)
1,842
552
1,303
519
Q1-FY24 Q1-FY25 Q1-FY24 Q1-FY25
QUARTERLY QUARTERLY
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EARNINGS PRESENTATION

ORDER BOOK

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Domestic Order Book (INR Mn)
Q1-FY25 International Order Book Breakup (%)
36,410
30,540
29,140
South Africa
24%
Construction Construction
Construction
31,510 25,250
23,840 Italy
48%
Australia
28%
O&M O&M
O&M 3,140 5,290 3,477 5,300 4,001
4,900
Total : ~ 4,842 INR Mn
FY 23 FY24 Q1-FY25
Project Product
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EARNINGS PRESENTATION

QUARTERLY STANDALONE FINANCIAL PERFORMANCE

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Particulars (INR Mn) Q1-FY25 Q1-FY24 Y-o-Y Q4-FY24 Q-o-Q
Revenue from Operations 2,394 1,822 31.4% 4,351 (45.0)%
Operating Expenses 1,995 1,531 30.3% 3,553 (43.9)%
EBITDA 399 291 37.1% 798 (50.0)%
EBITDA Margins (%) 16.67% 15.97% 70 Bps 18.34% (167) Bps
Depreciation 16 17 (5.9)% 18 (11.1)%
Finance Cost 55 42 31.0% 44 25.0%
Other Income 84 64 31.3% 61 37.7%
PBT 412 296 39.2% 797 (48.3)%
Taxes 104 75 38.7% 238 (56.3)%
PAT 308 221 39.4% 559 (44.9)%
PAT Margins (%) 12.87% 12.13% 74 Bps 12.85% 2 Bps
Other Comprehensive Income 1 (1) NA 4 (75.0)%
Total Comprehensive Income 309 220 40.5% 563 (45.1)%
Diluted EPS (INR per share) 3.16 2.26 39.8% 5.73 (44.9)%
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EARNINGS PRESENTATION

QUARTERLY CONSOLIDATED FINANCIAL PERFORMANCE

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Particulars (INR Mn) Q1-FY25 Q1-FY24 Y-o-Y Q4-FY24 Q-o-Q
Revenue from Operations 3,625 3,236 12.0% 5,914 (38.7)%
Operating Expenses 3,023 2,640 14.5% 4,890 (38.2)%
EBITDA 602 596 1.0% 1,024 (41.2)%
EBITDA Margins (%) 16.61% 18.42% (181) Bps 17.31% (70) Bps
Depreciation 77 71 8.5% 80 (3.8)%
Finance Cost 75 75 0.0% 70 7.1%
Other Income 119 41 NA 106 12.3%
Share of profit of an Associate and Joint Venture 16 8 NA 15 6.7%
PBT 585 499 17.2% 995 (41.2)%
Taxes 154 129 19.4% 259 (40.5)%
Profit/(Loss) from discontinued operations - 34 NA (78) NA
PAT 431 404 6.7% 658 (34.5)%
PAT Margins (%) 11.89% 12.48% (59) Bps 11.13% 76 Bps
Other Comprehensive Income (35) 83 NA (182) (80.8)%
Total Comprehensive Income 396 487 (18.7)% 476 (16.8)%
Diluted EPS (INR per share) 3.96 3.25 21.8% 6.53 (39.4)%
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EARNINGS PRESENTATION

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HISTORICAL FINANCIAL OVERVIEW

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EARNINGS PRESENTATION

STANDALONE FINANCIAL PERFORMANCE

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Particulars (INR in Mn) FY22 FY23 FY24 Q1-FY25
Revenue from Operations 5,298 10,024 10,769 2,394
Operating Expenses 4,432 8,264 8,839 1,995
EBITDA 866 1,760 1,930 399
EBITDA Margins (%) 16.35% 17.56% 17.92% 16.67%
Depreciation 56 55 70 16
Finance Cost 89 121 172 55
Other Income 141 317 304 84
PBT 862 1,901 1,992 412
Taxes 223 471 572 104
PAT 639 1,430 1,420 308
PAT Margins (%) 12.06% 14.27% 13.19% 12.87%
Other Comprehensive Income - (3) 1 1
Total Comprehensive Income 639 1,427 1,421 309
Earnings Per Share (EPS) 6.54 14.64 14.54 3.16

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EARNINGS PRESENTATION

STANDALONE BALANCE SHEET

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Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24
ASSETS
EQUITY AND LIABILITIES
Non-Current Assets
a) Equity Share Capital 98 98 98
a) Property, Plant and Equipment 341 742 864
b) Other Equity 5,143 6,472 7,502 b) Capital Work-in-progress - 1 22
Shareholders Fund 5,241 6,570 7,600 c) Goodwill 137 137 137
Non-Current Liabilities
d) Other Intangible Assets 2 3 4
a) Financial Liabilities
e) Financial Assets
i) Borrowings 6 4 74 i) Investments 490 490 490
ii) Lease Liability 34 2 - ii) Trade Receivables 495 817 1,287
iii) Provisions 41 67 66 iii) Loans and Deposits 1,738 1,849 1,027
c) Deferred tax liabilities (net) - (3) 1 iv) Other Financial Assets 49 60 82
- -
Total Non-current Liabilities 81 70 141 f) Deferred Tax Assets (2)
h) Non current Tax Assets 78 58 51
Current Liabilities
i) Other Non-current Assets 454 29 29
a) Contract Liabilities 933 1,614 1,927 Total non-current assets 3,782 4,186 3,993
b) Financial Liabilities Current Assets
i) Borrowings 362 405 1,299 a) Inventories 614 802 1,395
ii) Lease Liability 32 30 - b) Contract Assets 472 1,150 1,268
iii) Trade payables 2,198 2,894 3,635 c) Financial assets
iii) Other financial liabilities 21 30 56 i) Trade Receivables 2,682 3,609 6,078
c) Other current liabilities 37 127 212 ii) Cash and Cash equivalents 300 161 169
d) Provisions 49 47 65 iii) Bank balances other than (ii) above 763 1,412 1,713
v) Other Financial Assets 140 182 88
e) Current tax liabilities 32 30 101
e) Other Current Assets 233 315 332
Total Current Liabilities 3,664 5,177 7,295
Total Current Assets 5,204 7,631 11,043
Total Equity and Liabilities 8,986 11,817 15,037
Total Assets 8,986 11,817 15,037
EARNINGS PRESENTATION 20
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CONSOLIDATED FINANCIAL PERFORMANCE

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Particulars (INR in Mn) FY22 FY23 FY24 Q1-FY25
Revenue from Operations 11,813 16,055 16,644 3,625
Operating Expenses 9,710 13,380 13,662 3,023
EBITDA 2,104 2,674 2,982 602
EBITDA Margins (%) 17.81% 16.66% 17.92% 16.61%
Depreciation 373 279 301 77
Finance Cost 199 237 308 75
Other Income 86 240 282 119
Share of profit of an Associate and Joint Venture 13 27 53 16
PBT 1,631 2,425 2,708 585
Taxes 448 646 778 154
Profit/(Loss) from discontinued operations (1) 418 4,908* -
PAT 1,182 2,197 6,838 431
PAT Margins (%) 10.01% 13.68% 41.08% 11.89%
Other Comprehensive Income 73 (125) 99 (35)
Total Comprehensive Income 1,255 2,072 6,937 396
Earnings Per Share (EPS) 9.96 19.37 48.63 3.96

*Number includes profit on disposal of Rutschi Business

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EARNINGS PRESENTATION

CONSOLIDATED BALANCE SHEET

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Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24
EQUITY AND LIABILITIES ASSETS
a) Equity Share Capital 98 98 98 Non-Current Assets
b) Other Equity 6,247 8,001 12,361 a) Property, Plant and Equipment 3,164 3,649 3,415
b) Capital Work-in-progress 92 90 138
Equity attributable to equity holders of the parent 6,345 8,098 12,459
c) Goodwill 618 550 566
c) Non-Controlling Interest 711 1,030 3,104
d) Other Intangible Assets 423 471 411
Total Equity 7,056 9,129 15,563 e) Investment in an associate and Joint
Liabilities Venture 161 187 240
Non-Current Liabilities f) Financial Assets
a) Financial Liabilities i) Investments 8 10 10
i) Borrowings 1,220 911 265 ii) Trade Receivables 495 817 1,287
ii) Lease Liability 247 204 104 iii) Loans and Deposits - 129 141
iii) Other Financial Liabilities - 9 9 iv) ) Other Financial Assets 74 87 706
g) Deferred tax assets (Net) 15 6 -
c) Provisions 266 242 178
h) Non current Tax Assets 78 58 80
d) Deferred tax liabilities (net) 20 95 58
i) Other Non-current Assets 451 30 29
Total Non-current Liabilities 1,753 1,461 614 Total non-current assets 5,579 6,084 7,023
Current Liabilities Current Assets
a) Contract Liabilities 2,844 4,206 2,478 a) Inventories 2,955 3,419 3,700
b) Financial Liabilities b) Contract Assets 2,492 3,687 1,271
i) Borrowings 1,571 1,352 1,800 c) Financial assets
ii) Lease Liability 128 112 35 i) Trade Receivables 4,268 5,472 7,315
iii) Trade payables 3,865 4,715 4,591 ii) Cash and Cash equivalents 1,212 971 4,360
iii) Bank balances other than (ii) above 918 1,618 1,927
iv) Other financial liabilities 200 261 221
iv) Loans 1 1 1
c) Other current liabilities 164 287 413
v) Other Financial Assets 78 104 99
d) Provisions 120 118 136
d) Current Tax Assets (net) 45 92 25
e) Current tax liabilities 373 383 429 e) Other Current Assets 526 577 559
Total Current Liabilities 9,265 11,434 10,103 Total Current Assets 12,495 15,940 19,257
Total Equity and Liabilities 18,074 22,024 26,280 Total Assets 18,074 22,024 26,280
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EARNINGS PRESENTATION

CONSOLIDATED FINANCIAL GRAPHS

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Revenue (INR Mn) EBITDA (INR Mn) & EBIDTA Margins (%) PAT (INR Mn) & PAT Margins (%)
4,000 50.00%
16,055 16,644 3,500 45.00% 60.00% 2,500
2,982
11,813 3,000 2,500 2,674 40.00%35.00%30.00% 50.00%40.00% 1,779 1,930 2,000
2,104 1,500
2,000 25.00% 30.00% 1,182
1,500 16.61% 20.00% 1,000
15.00% 20.00% 10.01% 11.08% 11.60%
3,625 1,000 17.81% 16.66% 17.92% 602 10.00% 431 500
10.00%
500 5.00% 11.89%
- 0.00% 0.00% 0
FY22 FY23 FY24 Q1-FY25 FY22 FY23 FY24 Q1-FY25 FY22 FY23 * FY24 * Q1-FY25
Excludes Rutschi Business
Working Capital Days Net Debt to Equity Ratio (x) Return Ratios (%)
25.40%
22.22%
0.21
19.63%
139 14.83%
120
89 16.73% 16.75% 19.48% 20.81%
79
0.09
- FY21 FY22 FY23 FY24
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoE (%) RoCE (%)
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EARNINGS PRESENTATION

CAPITAL MARKET INFORMATION

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Stock Performance Data (As on 30th June, 2024)
60%
50%
40%
30%
20%
10%
0%
-10%
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
WPIL Ltd. Sensex
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Price Data (As on 30th June, 2024) INR
Face Value 10.0
CMP
52 Week H/L
Market Cap. (Mn)
No. of Share outstanding (Mn)
Avg. Trading Volume
4,275.5
4,624.6 / 2,725.1
41,759.2
9.8
9,551.0
Avg. Net Turnover (Mn) 32.9

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Shareholding Pattern (As on 30th June, 2024)
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AIF 0.19%
DII 2.43%
FII 5.81%
Promoters
Public 70.80%
20.77%
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EARNINGS PRESENTATION

DISCLAIMER

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WPIL Limited Disclaimer:

No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of WPIL Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review

For further details, please feel free to contact our Investor Relations Representatives:

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Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: [email protected]

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EARNINGS PRESENTATION

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THANK YOU

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