Welspun Corp (532144) Q4 00/01 earnings summary

Executive summary

• FY ended Mar. 31, 2001 sales and services were Rs 2,562.98 million; profit after tax was Rs 7.97 million, including a Rs 86.97 million accounting benefit from capitalized borrowing costs.

• Commercial production at the longitudinal SAW pipe mill drove production to 80,408 MT; the prior period covered seven months and is not directly comparable.

Financial highlights

• Sales and services were Rs 2,562.98 million versus Rs 575.65 million in the seven-month prior period; directors cited annualized prior-period sales of Rs 986.83 million.

• PBDIT was Rs 461.24 million versus Rs 60.75 million in the prior period; annualized prior-period PBDIT was Rs 104.14 million.

• PBT was Rs 8.74 million and PAT Rs 7.97 million; prior-period PAT was Rs 3.21 million.

• Gross profit after finance costs was Rs 130.06 million; depreciation was Rs 121.31 million and finance costs Rs 331.19 million.

Outlook and guidance

• Directors expected pipeline infrastructure, LNG terminal development and cross-country projects to support SAW pipe demand in India.

• Middle East SAW pipe market recovery, including Iraq, Iran and Egypt, and potential Iran-India and Bangladesh-India gas pipelines were cited as demand opportunities.

• North American pipeline projects and the US strategic tie-up were expected to support export growth; the tie-up helped secure an ~8,000 MT supply contract.

• First two months of the current year recorded production of 16,405 MT and sales of Rs 58.88 million.