Welspun Corp (532144) Q4 01/02 earnings summary

Executive summary

• FY02 turnover reached Rs 284.24 crore despite geopolitical disruption, Gujarat riots and delayed pipeline projects; exports and production rose sharply.

• Profitability remained modest: PBIDT was Rs 60.62 crore and net profit was Rs 0.73 crore, down 7.59% YoY; no dividend was recommended.

Financial highlights

• Income from operations rose 10.9% YoY to Rs 284.24 crore; PBIDT increased 31.43% to Rs 60.62 crore.

• Net profit was Rs 0.73 crore, down 7.59% YoY; exports grew 478% to Rs 113.25 crore from Rs 19.60 crore.

• Production, including job work, increased 15.62% to 92,126 MT from 79,676 MT.

Outlook and guidance

• FY03 began with a major US oil and gas supply order; export orders for Iran and Oman, and orders from IOCL and others, were being executed.

• The announced 626-km GAIL HBJ pipeline upgrade from Dahej to Vijaypur was expected to support a positive business outlook.

• Priorities included SAP/R3 implementation, workforce training, integrated linepipe solutions, global vendor approvals, local market offices and sour-gas pipe capability.