Welspun Corp tumbled 8.58% to Rs 549.45 after its consolidated net profit declined 8.01% to Rs 268.48 crore on 6.07% fall in revenue from operations to Rs 4,461.17 crore in Q4 FY24 over Q3 FY24.
As compared to Q4 FY23, the iron & steel makers consolidated net profit increased 13.79% and revenue grew 9.61%.Profit before tax stood at Rs 347.11 crore in fourth quarter of FY24, up 6.67% from Rs 325.41 crore posted in Q4 FY23.
EBITDA decreased 14.49% to Rs 413 crore in March 2024 quarter as compared with Rs 483 crore reported in same quarter last year.
On segmental front, revenue from steel products rose 5.01% YoY to Rs 4,263.37 crore during the period under review. Other products including plastic revenue was at Rs 197.80 crore in Q4 FY24 as against Rs 10.16 crore in Q4 FY23.
Sales volumes of WST stood at 3,659 MT (up 8.64% YoY), SS Bars was at 3,610 KMT (up 29.72% YoY), SS pipes stood at Rs 1,118 MT (up 3.61% YoY), line pipes stood at Rs 302 KMT (up 21.29% YoY), DI Pipes volume was 66 MT (up 186.96% YoY) and TMT Bars stood at 42 MT (up 162.5% YoY).
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On full year basis, the companys consolidated net profit stood at Rs 1,110.40 in FY24, steeply higher than Rs 206.69 crore posted in FY23. While revenue from operations grew 77.69% YoY to Rs 17,339.60 crore in the financial year ended March 2024.
B. K. Goenka, chairman of Welspun Group, said, I am pleased to share that we have satisfactorily surpassed our guidance for FY24 offsetting many global macroeconomic and geopolitical challenges. 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 opportunity in 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. Our overseas operations are also expected to continue performing satisfactorily backed by strong visibility.
In terms of guidance, the company stated its top line guidance of Rs 17,000 crore, EBIDTA of Rs 1,700 crore, volume and margins growth across all the verticals line pipes, Sintex, DI Pipes and WSSL and the guidance of ROCE at 20%.
Meanwhile, the board has recommended dividend of Rs 5 per equity share for financial year 2023-24, subject to approval of shareholders.
Subsequently, the companys board also approved raising of funds up to Rs 500 crore by issuing commercial papers/NCDs (non-convertible debentures) on a private placement basis.
Lastly, the board of directors had approved expansion of its DI Pipes capacity from 100 KMTPA to 200 KMTPA. The company optimised overall cost and equipments to achieve the capacity addition of 200 KMTPA within the investment limit of Rs 300 crore. This will take existing capacity from 400 KMTPA to 600 KMTPA within FY25.
Welspun Corp is primarily engaged in business of manufacture and distribution of steel and steel products.
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