Welspun Corp hits new high

Welspun Corp is a bright star today; from its close of Rs.456.85, the stock today opened at Rs.480 and went on to hit a new high, a 15-year high, at Rs.495.65 on a back of a 4.5x jump in volumes.

The market has given its Q2FY24 earnings a big thumbs up as it has turned around.

The company posted a consolidated net profit at Rs387 crore v/s loss of Rs.63 crore (YoY) and this was on a revenue from operations at Rs.4059 crore, up 107%.

EBITDA for the quarter came in at Rs.501 crore, up more than 10x.

The company also reduced its debt by Rs.520 crore to Rs.315 crore, which was very much in line with its guidance.

The company said that its order book for Line Pipes in India and US stands at 611 KMT valued at Rs.8,000 crore. Its associate Company, EPIC in Saudi Arabia has a confirmed order book exceeding 2 years and execution of recent Aramco order of SAR 1.8 billion has started.

Giving its guidance, the company expects:

· Top line of INR 15,000 crore (growth of 50%)

· EBIDTA of INR 1,500 crore (growth of 90%)

· ROCE of 16% + (from 7% in FY23)

· Only Maintenance Capex

· Strong focus on growth of Sintex, DI Pipes and WSSL