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 capacity expansions in India, U.S., and Saudi Arabia are progressing on schedule, with new plants expected to be operational in FY26-FY27.

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

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

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

Financial highlights

• Q3 FY25 consolidated revenue: Rs. 3,657 crore; EBITDA: Rs. 478 crore; net profit: Rs. 718.01 crore, including a Rs. 377.79 crore gain from EPIC share sale.

• Nine-month EBITDA at INR 1,356 crore, on track to surpass FY25 guidance of INR 1,700 crore for the second consecutive year.

• EBITDA margin steady at 13% for both Q3 and 9MFY25; net profit margin (Q3 FY25): 18.60% (consolidated).

• Net debt reduced to INR 104 crore; net debt to EBITDA at 0.06x; net debt/equity at 0.02 as of 9MFY25.

• Standalone revenue for Q3 FY25: Rs. 2,448.74 crore; net profit: Rs. 155.91 crore.

Outlook and guidance

• Confident of surpassing full-year EBITDA guidance for FY25; FY25 guidance: total income Rs 17,000 crore, EBITDA Rs 1,700 crore, ROCE 20%.

• Strong demand visibility in India, U.S., and Saudi Arabia for next 2-5 years, driven by infrastructure, energy, and water projects.

• DI pipe and line pipe order books provide execution visibility for next four quarters.

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

• New product launches (O-PVC, plastic pipes) and capacity expansions to drive growth.