On Friday, the shares of this leading large-diameter pipe manufacturer fell by 8.5% to ₹550.05 per share after the company’s margins dropped to 7.4%.
Welspun Corp. Ltd. is a Small cap company with a market capitalization of ₹14,448 crore. At 11:15 a.m., the company shares were trading at ₹554 a share, a decrease of 7.83 percent from the previous closing price on the stock exchange.
According to the company’s exchange filing, Welspun Corp. reported a strong financial performance for Q4 FY24, with a consolidated net profit of ₹287 crores, reflecting a notable 19.7% increase from the corresponding quarter of the previous year. The total revenue for the same quarter reached ₹4,461 crores, marking a 9.6% rise compared to the previous year.
For the fiscal year 2023-24, the company’s consolidated net profit stood at ₹1,136 crores, showing a substantial 470% increase from the preceding fiscal year. Similarly, the total revenue for the fiscal year witnessed a 77% growth, totaling ₹17,340 crores. However, the company’s EBITDA margins declined from 10.3% to 7.4%.
Notably, Welspun Corp has reduced its net debt from ₹1,138 crore in March 2023 to ₹387 crore in March 2024.
The company’s board recommended a dividend of ₹5 per share. Additionally, the board approved the sale of 19 percent of the equity shares of Welspun Global Services Limited (WGSL) and Welspun Transformation Services Limited (WTSL) held by the company to Aryabhat Vyapar Private Limited, which is part of the company’s promoter group.
Welspun Corp Ltd (WCL), the flagship firm of the Welspun Group, is one of the largest manufacturers of large-diameter pipes globally, with a presence across six continents and 50 countries.
Welspun Corp shares have gained 5 percent in the last six months and have delivered multibagger returns of 120 percent over the last 12 months. For instance, a shareholder investment of ₹1 lakh in the company a year ago would now be worth ₹2.20 lakhs.
Welspun Corp Ltd is a prominent global manufacturer specializing in large-diameter pipes. Their diverse product range includes BIS-certified steel billets, TMT (Thermo-Mechanically Treated) rebars, ductile iron (DI) pipes, and stainless steel pipes, tubes, and bars.
Welspun Corp’s manufacturing footprint spans several locations. In India, their facilities are located in Anjar (Gujarat), Bhopal (Madhya Pradesh), Mandya (Karnataka), and Jhagadia (Gujarat). Internationally, they operate a manufacturing facility in Little Rock, Arkansas, USA.
For FY24, the company reported a total line pipe sales volume of 980 KMT for India and the USA, marking a 49% year-on-year growth. They have a strong order backlog of approximately 328 KMT valued at around ₹2,741 crore in ductile iron pipes, and an order book for stainless steel pipes and bars totaling approximately 5,590 MT valued at ₹215 crore.
The company’s management has provided guidance for FY25, projecting a top line of ₹17,000 crore, an EBITDA of ₹1,700 crore, and volume and margin growth across all verticals—line pipes, Sintex, DI pipes, and WSSL. They also aim for a return on capital employed (ROCE) of 20%.
Written by Omkar Chitnis
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