Q4 2024 Welspun Corp Ltd Earnings Call Transcript
Key Points
- Welspun Corp Ltd (BOM:532144) recorded the highest-ever revenue and EBITDA for FY24, with revenue increasing by 74% year-on-year to INR 17,500 crore and EBITDA doubling to INR 1,800 crore.
- The company achieved a significant reduction in net debt, bringing it down to INR 387 crore at the end of FY24 from INR 1,138 crore in FY23.
- Welspun Corp Ltd (BOM:532144) saw strong volume growth across all business segments, including line pipes, DI pipes, stainless steel bars, and building materials.
- The company has a robust order book, particularly in the US and Saudi markets, ensuring business continuity for the next four to six quarters.
- Welspun Corp Ltd (BOM:532144) has been ranked in the top 5 percentile in the DJSI ESG rating, reflecting its commitment to sustainability and corporate governance.
- Despite the strong performance, the guidance for FY25 is almost flat compared to FY24, raising concerns about growth momentum.
- The company faces potential competition from OPVC pipes, which could interfere with the DI pipes market, particularly in smaller diameters.
- There are concerns about the efficiency and adequacy of local DI pipe manufacturing capacities in Saudi Arabia, which could impact future import opportunities.
- The company is undertaking significant CapEx investments, which could strain the balance sheet if not managed prudently.
- Gross margins have come down, partly due to the fall in steel prices and the blend of products sold, indicating potential volatility in profitability.
Ladies and gentlemen, good day, and welcome to Welspun Corp. Limited Q4 and FY24 earnings conference call hosted by PhillipCapital (India) Private Limited. (Operator Instructions) Please note that this call is being recorded. I now hand the conference over to Mr. Vikash Singh from PhillipCapital. Thank you and over to you, sir.
()-
Thank you, Steve Good morning, everyone. From the management side today, we have with us Mr. Vipul Mathur, MD and CEO of Welspun Corp.; Mr. Percy Birdy, CFO; Mr. Salil Bawa, Head of IR of Welspun Group; and Mr. Goutam Chakraborty, Head IR of Welspun Corp. Without taking any more time, I'll hand over the call to Mr. Salil Bawa, over to you, sir.
Thank you, Vikash, and good morning to all of you. I would also like to inform that we also have Mr. Ashish Prasad, the CEO of Sintex BAPL, who has joined us for this call. You must have received
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
