Welspun Enterprises skid 7.08% to Rs 93.85 after the company's consolidated net profit slumped 66.6% to Rs 12.94 crore on a 42.9% fall in net sales to Rs 241.58 crore in Q3 FY22 over Q3 FY21.
Consolidated EBITDA dropped 32.1% to Rs 56.6 crore in Q3 FY22 as against Rs 83.3 crore in Q3 FY21. EBITDA margin improved to 19.9% in Q3 December 2021 from 17.9% in Q3 December 2020. Profit margin stood at 5.4% in Q3 December 2021 from 9.2% in Q3 December 2020.
Speaking on the Q3 performance, Ajay Hans, the chief executive officer (CEO) of Welspun Enterprises, has said, "We have reported an operating performance that is characterized by a strong order book, with a majority of the unexecuted EPC order book coming from external client engagements, and also reflects our selective approach to evaluating and pursuing project opportunities. While project implementation and progress during the period under review has been affected by exogenous factors such as the farmers' agitation and NGT intervention in a large BOT project, we expect the ongoing execution of our robust order book to generate incremental revenue and drive growth from next quarter onwards."
"We are encouraged by the continued thrust on infrastructure, as seen in the Union Budget presented yesterday. Among the measures announced was the expansion of the national highway network by 25,000 kilometers in FY2022-23. We are making consistent efforts in expanding our footprints into the Water segment where we see significant opportunities over the next few years."
Gross Debt stood reduced by 1.40% to Rs 493 crore as of 31 December 2021 as compared to Rs 500 crore in 30 September 2021. Cash & Cash Equivalents dropped 48.97% to Rs 175 crore as on 31 December 2021 over Rs 343 crore as on 30 September 2021.
Meanwhile, Mr Sandeep Garg submitted his resignation from the position of managing director (MD) of the company due to his personal reasons. The board has accepted Mr Garg's resignation and decided to relieve him with effect from the end of this financial year i.e. 31 March 2022.
In order to fill the vacancy in the office of managing director, the board appointed Ajay Hans as the MD and chief executive officer (CEO) of the company w.e.f. 1 April 2022 for a term of five years, liable to retire by rotation.
Welspun Enterprises part of the Welspun Group, is an operating company in the infrastructure business.
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