Welspun Corp (532144) Q4 98/99 earnings summary

Executive summary

• Sales reached Rs 4,143.05 lacs in the 17-month period ended 31 Aug 1999; the period is not comparable with the prior financial year. Net loss before prior-year adjustments was Rs 381.55 lacs.

• Production stabilised, quality benchmarks were achieved, and a Rs 9,141 lacs order book supported expectations for stronger capacity utilisation and profitability.

Financial highlights

• Sales were Rs 4,143.05 lacs versus Rs 1,872.85 lacs in the prior year; gross profit before finance expenses and depreciation was Rs 338.70 lacs versus Rs 293.93 lacs.

• Net loss after interest and depreciation was Rs 381.55 lacs versus Rs 210.46 lacs; the accounts also show a Rs 149.62 lacs profit after prior-year adjustment.

• Spiral welded pipe production was 17,413 MT versus 7,331 MT; sales were Rs 3,390.76 lacs from 15,998 MT.

Outlook and guidance

• Order book stood at Rs 9,141 lacs; management expected sizable sales to lift capacity utilisation and improve profitability.

• Longitudinal pipe plant trial production was satisfactory; the 175,000 MTPA project was expected to support future growth after delayed commissioning.

• Pipeline demand outlook was supported by infrastructure investment, oil and gas transportation, drinking water networks, and growing CNG use in power plants.