Welspun Corp Ltd (WCL), the flagship company of the Welspun Group, reported a notable increase in net profit for the fourth quarter ending March 31, 2024. The company achieved a 19.7% year-on-year (YoY) rise in net profit, amounting to ₹287.3 crore compared to ₹240.1 crore in the corresponding quarter of FY23. This financial performance was disclosed in the company’s latest regulatory filing on Thursday, May 30.
The company’s revenue from operations also saw an upward trend, increasing by 9.6% to ₹4,461.2 crore, up from ₹4,070.2 crore in the same period last year. This growth reflects Welspun Corp’s robust operational performance and its ability to drive revenue despite challenging market conditions.
However, at the operating level, Welspun Corp experienced a decline in its earnings before interest, tax, depreciation, and amortization (EBITDA). The EBITDA for the fourth quarter stood at ₹330.2 crore, representing a 21.9% decrease from ₹420.5 crore in Q4 FY23. Consequently, the EBITDA margin dropped to 7.4% in the reporting quarter from 10.3% in the corresponding period of the previous fiscal year. This decline indicates that while the company has increased its revenue, it faced higher operational costs or other factors impacting its profitability at the operating level.
In light of these results, the company’s board has recommended a series of dividends. A dividend at the stipulated rate of 6% per share (₹0.60) has been proposed on the 35,15,11,571 cumulative redeemable preference shares, with a face value of ₹10 each, fully paid up. This aggregates to ₹3,51,51,15,710, covering the period from April 1, 2023, to September 18, 2023, which is the date of redemption.
Moreover, the board has also recommended an equity dividend at the rate of 100% (₹5 per share) on 261,666,895 equity shares of ₹5 fully paid up, amounting to a total of ₹1,308,33,475. This recommendation underscores the company’s commitment to providing consistent returns to its shareholders.
Despite the dip in EBITDA, Welspun Corp’s overall financial performance for the fourth quarter indicates a positive trajectory in terms of net profit and revenue growth. The strategic dividend recommendations further reflect the company’s stable financial health and its focus on shareholder value.
The management of Welspun Corp expressed confidence in the company’s future prospects, highlighting ongoing efforts to optimize operations and enhance profitability. They also emphasized the importance of strategic investments and initiatives aimed at sustaining growth momentum in the coming quarters.
As Welspun Corp continues to navigate the complexities of the market, its Q4 results serve as a testament to its resilience and ability to adapt to evolving industry dynamics. With a clear focus on operational efficiency and shareholder value, the company is well-positioned to achieve sustained growth and profitability in the future.
