Welspun Corp Ltd surged over 9% after posting strong Q4FY25 results, with Profit After Tax up 30% YoY. Despite an annual revenue decline, profit grew marginally. The company had exceptional items worth ₹476.5 crore in Q4FY25 and declared a ₹5 final dividend.
On Thursday share price of Welspun Corp Ltd jumped over 9% to its intraday high after the company announced its Q4 Results. As of 10:41 AM IST, the stock was trading at ₹887.5, up by 9.08%. The stock price has recorded the highest intraday gains in the last 3 years and registered the highest volume in the last 1.5 years.
On a YTD basis, the stock has jumped by 8.65% while in the last 12 months it has logged gains of 49.22%. In the longer period of 5 years, the stock has surged by 1,464.16%.
For the quarter ended March 2025, the company reported revenue from operations of ₹3,924.97 crore, marking an 8.62% increase over the previous quarter's ₹3,613.51 crore. However, when compared year-on-year, revenue declined by 12% from ₹4,461.17 crore in March 2024. Profit after tax (PAT) for the March 2025 quarter stood at ₹327.54 crore, reflecting a 30% rise compared to ₹251.33 crore in the same quarter last year and a 7.32% growth sequentially.
In Q4FY25, the company had exceptional items of ₹476.50 crore of proceeds from the partial stake sale and fair valuation of Nauyaan Shipyard
On an annual basis, revenue from operations for FY25 came in at ₹13,977.54 crore, down 19.39% from ₹17,339.60 crore recorded in FY24. Despite the decline in revenue, the company posted a marginal 3.09% increase in annual profit after tax, rising from ₹1,151.64 crore in FY24 to ₹1,187.25 crore in FY25, indicating improved cost efficiency or better margins during the year.
For FY25, the company reported an EBITDA of ₹1,858 crore, surpassing its guidance of ₹1,700 crore. Return on Capital Employed (ROCE) stood at 21%, with both EBITDA and ROCE exceeding guidance for the second consecutive year.
The company maintained a robust order book exceeding ₹19,500 crore, comprising orders for line pipes (India and the U.S.), ductile iron (DI) pipes, and stainless steel bars and pipes. The U.S. mill remains fully booked for the next eight quarters.
The company continues to focus on its core geographies—India, the USA, and the Kingdom of Saudi Arabia (KSA)—with strategic investment projects in all three regions progressing as planned. Additional projects have also been announced in high-priority business segments to sustain leadership in the market.
Despite capital expenditure of approximately ₹900 crore during FY25, the company reduced its gross debt by around ₹1,000 crore. As a result, it became a net cash company, ending the year with a net cash position of ₹1,049 crore.
The Board of Directors has recommended a final dividend of 100%, i.e., ₹5 per equity share of face value ₹5 each, for the financial year ended 31st March 2025. This dividend is subject to the approval of shareholders at the upcoming Annual General Meeting (AGM) of the Company.
Welspun Corp Ltd is one of the largest manufacturers of large-diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT (Thermo-Mechanically Treated) Rebars, Ductile Iron (DI) Pipes, Stainless Steel Pipes, and Tubes & Bars. The company acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building materials portfolio. It has also made a strategic acquisition of specified assets of ABG Shipyard.
Disclaimer: The article is for informational purposes only and not investment advice.
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