Welspun Enterprises falls nearly 3% as Q4 net profit declined by 45% YoY

Welspun Enterprises’ consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) for the fourth quarter declined 6% YoY to ₹157 crore. The EBITDA margin during the quarter contracted by 5 basis points (bps) YoY to 18.1%.

For the financial year ending on March 31, 2024, the company recorded a 56% YoY decline in its net profit at ₹319 crore. However, the total income during FY24 saw a growth of 6% YoY to ₹3,063 crore.

The company’s EBITDA for the financial year grew 58% YoY to ₹616 crore. The EBITDA margin during the year also expanded by 665 bps YoY to 20.1%.

The company has become debt-free on a standalone basis. Sandeep Garg, managing director of Welspun Enterprises said the firm has currently bid for five road projects, the results of which are awaited. “Going forward, NHAI has announced bids worth approximately ₹2 lakh crore (5,000 kms) in build-operate-transfer (BOT) toll projects apart from bids in hybrid annuity model (HAM) and engineering, procurement, and construction (EPC) worth ₹50,000 crore,” he said.

Garg pointed out that in the water segment, the company sees opportunities of over ₹3 lakh crore across distribution, transmission, and treatment, of which ₹66,000 crore may be bid out in FY25, while the rest may spill over to FY26. At the same time, the Welspun Michigan order pipeline stands healthy with foreseeable opportunities of nearly ₹50,000 crore across tunneling and other adjacencies, he added.

Shares of the company have risen by nearly 17% since the beginning of the year. The stock has gained over 155.42% in the last one year.