SSPL Securities Private Limited

Hot Pursuit

Scrips, which has significant changes during the market hours.

Welspun Corp gains as Q4 PAT climbs 160% YoY to Rs 698 cr

29-May-25 11:03 Hrs IST

As compared to Q3 FY25, the iron & steel maker's consolidated net profit increased 3.49% and revenue grew 8.61%.

Welspun Corp's profit before exceptional items and tax rose 30.32% to Rs 327.54 crore in Q4 FY25 from Rs 251.33 crore in Q4 FY24. Exceptional items for the quarter stood at Rs 476.50 crore, primarily due to gains from strategic divestments. These include the sale of a 74% stake in Nauyaan Shipyard Pvt Ltd for Rs 382.73 crore and the write-down of assets linked to the divestment of Sintex Logistics LLC, USA. The group also sold its entire stake in Nauyaan Tradings Pvt Ltd to Reliance Strategic Business Ventures for Rs 1 lakh.

The company's EBITDA rose 21.5% to Rs 502 crore in the March 2025 quarter, compared to Rs 413 crore in the same quarter last year.

On full year basis, the company's consolidated net profit soared 71.84% to Rs 1,908.14 crore on 19.38% decrease in revenue to Rs 13,977.54 crore in FY25 over FY24.

The company reported a robust order book worth more than Rs 19,500 crore, including line pipes (India & US), ductile iron (DI) pipes and stainless steel bars & pipes. The U.S. mill is fully booked for the next eight quarters.

The firm stated that FY25 EBITDA stood at Rs 1,858 crore beating its guidance of Rs 1,700 crore. ROCE stood at 21%. Both EBITDA and ROCE surpassed the guidance for 2 consecutive years.

The company continues to focus on its core geographies'India, the U.S., and Saudi Arabia (KSA)'with strategic investment projects on track. It also announced new projects aligned with its high-priority business segments to maintain its leadership position.

The U.S. market outlook remains strong, backed by government focus on the oil & gas sector. Domestically, line pipes performed well, supported by strong exports. Other business segments such as DI pipes, stainless steel bars & pipes, Sintex, and TMT rebars also delivered satisfactory performance.

For FY26, the company has provided guidance of Rs 17,500 crore in revenue, Rs 2,200 crore in EBITDA and ROCE above 20%.

Meanwhile, the board has recommended a final dividend of Rs 5 per equity share for the financial year ended 31 March 2025, subject to shareholder approval at the upcoming AGM.

The board has also approved raising funds up to Rs 500 crore through the issuance of commercial papers (CPs) and/or non-convertible debentures (NCDs) on a private placement basis. These instruments will be used for routine working capital requirements.

The board has approved several strategic capital expenditure projects. These include setting up a greenfield LSAW pipes facility in Little Rock, Arkansas, USA, with an annual capacity of 300 KMT, at an investment of $125 million, funded through debt and internal accruals, expected to be completed by December 2026. At Anjar, the existing Spiral facility will be upgraded to a hybrid Spiral and LSAW setup with the same total capacity of 350 KMTPA, at a cost of Rs 125 crore, with completion targeted for March 2026. Additionally, a new state-of-the-art hot induction bends facility is being developed at Anjar to produce 1,500'2,000 specialized bends per year, at an investment of Rs 90 crore, expected by June 2026. Furthermore, a new coating plant with a capacity of 3 million square meters per annum will be established at the Bhopal manufacturing site, costing Rs 40 crore, and is anticipated to be operational by December 2025.

Additionally, the company has decided to put on hold the planned DRI plant at Anjar, announced on 8 November 2024, due to strategic prioritization. No expenditure has been incurred on this project.

Welspun Corp is primarily engaged in the business of manufacturing and distributing steel and steel products.