Welspun Corp stock zooms 11% to 52-week high as Q4 net profit surges 2.6 times, board recommends dividend

Shares of Welspun Corp surged 11.09% to a 52-week high of ₹903.90 apiece on the National Stock Exchange (NSE) on Thursday, May 29, following the company’s fourth quarter result announcement.

At around 12:41 pm, the stock was trading 10% higher at ₹895.05 per share.

The conglomerate reported a 160.1% year-over-year (YoY) growth in its consolidated net profit to ₹698.31 crore in the March FY25 quarter, compared to ₹268.48 crore in the same period last year. A reduction in expenses aided the profit.

Sequentially, the net profit was 3.49% higher compared to ₹674.70 crore in the December FY25 quarter.

However, Welspun saw a 12.02% YoY decline in its revenue from operations to ₹3,924.97 crore in the quarter under review, as against ₹4,461.17 crore in Q4FY25.

In Q4FY25, the company’s EBITDA (earnings before interest, tax, depreciation and amortization) stood at ₹502 crore, jumping 21.5% YoY from ₹413 crore in the corresponding period last year.

Welspun’s board of directors also recommended a final dividend of ₹5 per equity share (100%) of face value of ₹5 each for FY25, subject to shareholder approval at the ensuing AGM.

It further approved a proposal to raise ₹500 crore in funds by issuing commercial papers (CPs) or Non-Covertible Debentures (NCDs) on a private placement basis.

In FY25, Welspun made a gross debt reduction of ₹1,000 crore, in spite of spending ₹900 crore in capital expenditure. It also became a net cash company with ₹1,049 crore in net cash reserves.

It has a robust order book worth more than ₹19,500 crore, including line pipes (India & US), ductile iron (DI) pipes and stainless steel bars & Pipes. The US mill book is booked for the next 8 quarters.

The company is in the process of investing ₹5,482 crore in India, the US and the Kingdom of Saudi Arabia to increase capacities across verticals.

Welspun Corp stock rose 17.24% over the week and 16.38% since the beginning of May. The scrip gained 9.74% on a year-to-date basis.