India: Welspun Corp's sales rise by 26% y-o-y in FY23

Welspun Corp Ltd has recently announced its consolidated results for the financial year 2023-2024 (FY23) and the fourth quarter ending 31 March 2023.

Highlights-

• Sales rise y-o-y: Sales volume of line pipes aggregated to 1.002 million tonnes (mnt) in FY23, rising by 26% y-o-y in comparison with 0.796 mnt in FY22. Meanwhile, sales of pipes grew by 23% q-o-q to 0.345 mnt in Q4FY23 from 0.281 mnt in the previous quarter.
  
  
• Revenue grows y-o-y: Total revenue from operations was at INR 9,758 crore for FY23, a growth of 50% y-o-y against INR 6,505 crore in the previous financial year. Moreover, the same rose by 69% q-o-q to INR 4,070 crore in Q4FY23 from INR 2,402 crore in the previous quarter.
  
  
• EBITDA declines y-o-y: Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at INR 805 crore in FY23, a decline of 21% y-o-y against INR 1,023 crore in FY22. However, the same grew by 177% q-o-q to INR 483 crore in Q4FY23 from INR 174 crore in the previous quarter.
  
  
• PAT falls y-o-y: Profit after tax (PAT) stood at INR 207 crore in FY23, down 53% y-o-y compared to INR 439 crore in FY22. However, the same surged by 926% q-o-q to INR 236 crore in Q4FY23 from INR 23 crore in the Q3FY23.
  
  

Company's global order book position: Welspun's current global order book for line pipes stands at 1.1 mnt (400,000 t from the United States, 250,000 t from India, and 475,000 t from Saudi Arabia), valued at INR 14,600 crores.

In addition, the company's subsidiary East Pipes Integrated Company (EPIC) has signed a contract with Saudi Aramco for the supply of large diameter steel pipes at a total value of SAR 1.8 billion (approx. INR 4,000 crore).

New acquisitions: The company has completed the acquisition of the Plastic Products business of Sintex BAPL & Specified Assetsof ABG Shipyard.

Sintex own approximately 9% of the market share in water tanks. Additionally, they have a widespread distribution network of 900 distributors and 13,000 retailers which will aid Welspun's growth.

Outlook: The company aims to achieve a top line of INR 15,000 crore and EBIDTA of INR 1,500 crore with a goal to achieve a ROCE of 16% or higher. The company will focus on the growth of Sintex, DI Pipes, and WSSL.