Welspun Corp Ltd, announced its consolidated financial results for the quarter ended December 31, 2022. The Line Pipes Business has seen a robust performance with a global sales volume of 281 KMT and EBITDA of ~ Rs. 202 cr for the quarter. The EBITDA loss this quarter in the steel vertical drastically reduced to ~ Rs. 34 cr as compared to the previous quarter.
In the Medium Term (3 to 5 years), WCL aspires to reach the following top line of Rs 15,000 Cr +. The sustainable EBIDTA of Rs 1,600 Cr to Rs 1,800 Cr, ROCE of 18%+. Net Cash Positive driven by strong Free Cashflows. Increase in DJSI ESG ratings from 41 to 60. To become dominant player in b2b and b2c segment in line with group vision of “Har Ghar Welspun”.
“WCL continues to execute on its business growth and diversification strategy. The acquisition of the specified assets of ABG Shipyard has been completed. With the state-of-the-art ductile iron pipe plant settling well, I am confident that it will create another milestone for the group and for the sector. Global pipe scenario, post Ukraine war has changed and accordingly we are seeing lot of traction in exports from India, as well as in the Saudi and US markets. With the recent Union budget, outlook for infrastructure remains bright and the domestic market traction remains high. As a global pipe player and further with our business diversification, we are confident about our future growth prospects.” said BK. Goenka, Chairman, Welspun Group.
Prior period figures are restated after the acquisition of the Steel business of Welspun Steel Limited where the global order book position of line pipes stands at 928 KMT valued at ~ Rs. 13,200 cr. The sales volumes for line pipes Q3 FY23 was 281 KMT vs. 171 KMT YoY. For SS Pipes it was 1,278 MT vs. 881 MT YoY. The Revenue Operations for Q3 FY23 was at Rs. 2,402 cr, up by 67% YoY The reported EBITDA for Q3 FY23 at Rs. 174 cr, up by 4% YoY. PAT after Minorities & share of JVs stands Rs. 23 crore. During the quarter, net debt has increased largely due to the ongoing investments in the DI project and TMT project which are both nearing completions.