Welspun Corp. declared quarter numbers: net sales down by 9.67 per cent

Welspun Corporation, the second largest manufacturer of large diameter pipes in the world announced its third quarter results on Monday. The net sales decreased by 9.67 per cent and net profit of company increased by 397 per cent year on year (YoY). 

Commenting on the results, B. K. Goenka, chairman, Welspun Group said, “We remain committed towards generating shareholder value amidst sluggishness in global energy prices. While there have been delays in project allocation, we continue to explore growth opportunities. Outlook in a few markets remain positive and our endeavour is to maintain a healthy order book. We believe our excellent customer connect, focus on quality coupled with cost-optimisation measures and sound financials would be our strengths in a challenging market scenario.”

On financial front, the consolidated net revenue from operations of Welspun quoted Rs 2032 crores in Q3FY16, compared to Rs 2250 crores in Q3FY15, a decrease of 9.67 per cent year on year (YoY). The EBITDA stands at Rs 239 crores this quarter compared to Rs 213 crores in Q3FY15, an increase of 12 per cent YoY. The EBITDA margin of company stands at 11.74 per cent this quarter compared to 9.47 per cent in Q3FY15. The increase in EBITDA is attributed to substantial decrease in raw material consumption by 17.25 per cent YoY, to Rs 1257 crores this quarter from Rs 1519 crores for the same period last year. The net profit stands at Rs 87 crores in Q3FY16 compared to Rs 17.49 crores in Q3FY15, an increase of 397 per cent YoY. 

The nine month ending consolidated net revenue from operations increased by 16.67 per cent and reached Rs 6480 crores compared to Rs 6119 crores for the same period last year. The net profit for nine month period stands at Rs 204 crores compared to a loss of Rs 74.74 crores for the same period last year. 

In this quarter the production of pipes decreased by 15.78 per cent to 288 Kilo Metric Ton (KMT); and sales of pipes were down by 17.70%. Current pipe order book position of Welspun stands at 1,028 KMT compared to 1040 KMT, a decrease of 1.15 per cent from the same period last year. The stock of company closed at Rs 102.20, an increase of 1.95 per cent from previous close.