Welspun Corp slips in trade: Shares of pipe manufacturer Welspun Corp fell as much as 8.48 per cent to Rs 550.05 per share on Friday.
The fall came after the company reported a mixed set of March quarter financial year 2024 (Q4FY24) results.
Welspun Corp’s profit rose 19.7 per cent on a year-on-year (Y-o-Y) basis to Rs 287.3 crore in the March quarter of financial year 2024 (Q4FY24 from Rs 240 crore in the March quarter of financial year 2023 (Q4FY23)..
The company’s revenue (topline) grew 9.6 per cent to Rs 4,461.2 crore in the March quarter of FY24, from Rs 4,070.2 crore in the March quarter of FY23.
Welspun Corp’s earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, however, slipped nearly 22 per cent on a Y-o-Y basis to Rs 330.2 crore ion Q4FY24, from Rs 420.5 crore in Q4FY23.
Ebitda margin contracted 290 basis points annually to 7.4 per cent in Q4FY24, from 10.3 per cent in Q4FY23.
“I am pleased to share that we have satisfactorily surpassed our guidance for FY24 offsetting many global macroeconomic and geopolitical challenges. This was possible due to all round performance by our pipe solutions and building material verticals. Steady and consistent improvement has been witnessed in our new businesses. I am confident of significant improvement in our DI Pipes and Sintex businesses going forward backed by exponential growth opportunities in the Water sector. Strong focus of the government on the infrastructure segment as a whole augurs well for our line pipes and steel businesses in India,” said B K Goenka, chairman of Welspun Group.
Weak FY25 guidance
The company has given a weak guidance for FY25 as it expects top line growth of Rs 17,000 crore versus Rs 17,582 crore in FY24; Ebitda of Rs 1,700 crore versus Rs 1,804 crore.
Return on capital employed (ROCE), meanwhile, is expected to remain flat 20 per cent.
“As we move forward, I see further ramp up in our new operations. From the laid out plans for our Sintex business, I see significant value creation for all our stakeholders. Our focus on sustainability has been yielding fruits as we continue to achieve higher milestones and our latest DJSI ESG rating is a testimony of the same,”Goenka added.
At 11:25 AM, shares of Welspun Corp were trading 7.72 per cent lower at Rs 554.65 per share. In comparison, S&P BSE Sensex was trading 0.19 per cent higher at 74,026.89 levels.
First Published: May 31 2024 | 11:44 AM IST
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