Welspun Corp Q3 Results: Profit More Than Doubles, Revenue Down 24%
The margin expanded to 12% versus 9.7% in the year-ago period.
Welspun Corp.'s consolidated net profit more than doubled in the third quarter of the financial year, beating analysts' estimates.
The company recorded a profit of Rs 674.7 crore in the quarter ended December as compared to Rs 291.9 crore in the same quarter last fiscal, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had forecasted it at Rs 232 crore.
Welspun Corp Q3 FY25 Highlights (Consolidated, YoY)
Revenue down 24% to Rs 3,613.5 crore versus Rs 4,749.7 crore (Bloomberg estimate: Rs 3,236 crore).
Ebitda down 6% to Rs 434.5 crore vs Rs 463 crore (Estimate: Rs 383 crore).
Margins expands to 12% vs 9.7% (Estimate: 11.8%).
Net profit up 131% to Rs 674.7 crore versus Rs 291.9 crore (Estimate: Rs 232 crore).
Profit on sale of shares of East Pipes Integrated Company for Rs 378 crore.
Order Book Details
Total order book: Over Rs 15,000 crore.
Line Pipes: In India and US at 866 KMT valued at Rs 12,200 crore.
DI Pipes: 336 KMT valued at Rs 2,710 crore.
Stainless Steel Pipes and Bars: 4,221 MT valued at Rs 185 crore.
Guidance, Capex
9MFY25 Ebitda on track to exceed full-year guidance of Rs 1,700 crore.
Return on capital employed is on track with guidance of 20%.
DI Pipes demand outlook is supported by Rs 67,000-crore allocation by the government under Jal Jeevan Mission.
Total capex spent in the first nine months of FY25 is Rs 721 crore.
Project, Strategic Investment Details
Strategic investment projects in India, US and Saudi Arabia are progressing well.
Market outlook in the US has improved due to government focus on the oil & gas sector
Preparing for soft launch of Sintex plastic pipes in the first quarter of FY26.
Key Announcements
The board approved sale of 19% equity stake in Welassure Pvt. to Rakshak Securitas Pvt., which is not a related party.
Approved the investment of an amount up to Rs 250 crore in its subsidiary company viz. Welspun Specialty Solutions Ltd. towards the subscription under the rights issue of equity shares as announced by Welspun Specialty Solutions Ltd.
Shares of Welspun closed 1.67% higher at Rs 732.40 apiece on the National Stock Exchange, compared to a 0.18% decline in the Nifty 50.
