Welspun Corp (532144) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 delivered resilient performance with sequential profitability improvement, 9% revenue growth, and a robust order book exceeding INR 15,000 crore across India, U.S., and KSA.

• Strategic investments and projects in India, U.S., and Saudi Arabia are progressing as scheduled, supporting growth in core geographies.

• Board approved unaudited financial results for Q3 and nine months ended December 31, 2024, and key transactions including the sale of a 19% stake in Welassure Private Limited and investment in Welspun Specialty Solutions Limited.

• Market outlook in the U.S. has improved, with the U.S. mill booked for eight quarters and LSAW plant in India fully booked for exports.

• DI Pipes segment ramping up, supported by government allocations to water infrastructure projects.

Financial highlights

• Q3 FY25 consolidated revenue: Rs. 3,657 crore; EBITDA: Rs. 478 crore (13% margin); net profit: Rs. 718.01 crore, including a Rs. 377.79 crore gain from the sale of EPIC shares.

• Nine-month FY25 revenue: Rs. 10,200 crore; EBITDA: Rs. 1,356 crore; net profit: Rs. 1,251.53 crore.

• Net debt reduced to INR 104 crore; net debt/EBITDA at 0.06x; net debt/equity at 0.02.

• Annualized ROCE run rate above 20%; nine-month ROCE at 15%.

• Net profit margin (Q3 FY25): 18.60% (consolidated); operating EBITDA margin: 14.18%.

Outlook and guidance

• Confident of exceeding FY25 guidance, with strong visibility for the next two to three years across all segments.

• Strong demand expected in water infrastructure, oil & gas, and export markets, especially in India, U.S., and KSA.

• Sintex gearing up for soft launch of plastic pipes in Q1 FY26, targeting 5% market share in 3–5 years.

• U.S. and Saudi order books provide 1.5–2.5 years of execution visibility; new plants in Saudi expected to be operational by FY26.

• Board approved participation in a Rs. 350 crore rights issue by Welspun Specialty Solutions Limited.