Welspun Corp (532144) Q3 24/25 earnings summary

Executive summary

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

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024.

• Strategic investments and projects in India, USA, and KSA are progressing as scheduled, including new capacity expansions and product launches.

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

• DI Pipes segment ramping up, supported by government allocations; Sintex gearing up for plastic pipes launch in Q1FY26.

Financial highlights

• Q3 FY25 consolidated revenue: Rs. 3,613.51 crore; EBITDA: Rs. 478 crore; net profit: Rs. 718.01 crore, boosted by a Rs. 377.79 crore gain from EPIC share sale.

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

• EBITDA margin stable at ~13% for Q3 and 9MFY25; adjusted PAT for the quarter at INR 297 crore.

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

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

Outlook and guidance

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

• FY25 guidance: total income Rs. 17,000 crore, EBITDA Rs. 1,700 crore, ROCE 20%.

• Robust demand expected in water infrastructure, oil & gas, and building materials segments; plastic pipes and O-PVC product launches targeted for Q1 FY25/Q1 FY26.

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