About the Stock:

Welspun World stands as a rapidly expanding global conglomerate, acclaimed for its leadership in various industries such as Line Pipes, Home Textiles, Infrastructure, Warehousing, Oil & Gas, Steel, Advanced Textiles, and Flooring Solutions. With a diverse presence spanning across 50 countries, boasting a workforce of over 30,000 employees, and an extensive shareholder base exceeding 100,000, Welspun World is a global force. Headquartered in Mumbai, our strategically positioned manufacturing facilities operate in India, the USA, and Saudi Arabia.

Business Model:

• Flagship company of Welspun Group, a rapidly growing multinational.
• Leadership in line pipes and home textiles with diverse businesses in infrastructure, warehousing, retail, advanced textiles, and flooring solutions.
• One of the largest global manufacturers of large diameter pipes.
• Operations across six continents and 50 countries.
• Expertise in customized solutions for onshore and offshore applications.
• Manufactures diverse products including Steel Billets, TMT Rebars, Ductile Iron Pipes, Stainless Steel Pipes, Tubes & Bars.
• State-of-the-art manufacturing facilities in India (Anjar, Bhopal, Mandya, Jhagadia) and USA (Little Rock, Arkansas).
• Diversification of product portfolio through organic and inorganic growth.
• Recent acquisition of Sintex-BAPL, a market leader in water tanks and plastic products.
• Acquisition of specified assets of ABG Shipyard, enabling entry into Defence and commercial shipbuilding, green steel, ship breaking, and ship repair.
• Business growth and diversification aligned with Welspun Group’s vision of ‘Har Ghar Se Har Dil Tak Welspun.’

Company Valuation
Sector	Capital Goods
NSE	WELCORP
BSE	532144
Market Capitalization	Rs 15,686 Crore (As of Jan 18, 2024)
Book Value Per Share	Rs 180.12
Face Value	Rs 5
P/E ratio	17.80
52 week H/L	608.00 / 177.65
Dividend Yield (%)	0.84

Shareholding Pattern
Particulars	Dec-22	Mar-23	Jun-23	Sept-23
Foreign Promoters %	0	0	0	0
Indian Promoters %	49.9	49.99	49.99	49.96
DIIs %	11.05	11.44	10.97	11.55
FIIs %	7.96	7.27	7.77	9.42
Others %	31.09	31.3	31.27	29.07

Ratios (Consolidated)
Particulars	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
ROCE %	5.47	23.76	17.8	13.36	7.96
ROE %	2.37	14.94	14.19	10.6	4.36
ROA %	0.83	5.42	6.66	5.24	1.61
Interest Coverage Ratio	1.29	6.86	11.55	7.54	2.37
D/E	0.47	0.31	0.2	0.46	0.7
P/B	1.29	0.51	0.96	0.99	1.11

Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Share Capital	133	130	130	130	131
Reserves	2,661	3,076	3,652	4,288	4,588
Borrowings	1,305	995	771	2,021	3,316
Other Liabilities	4,226	4,015	2,111	2,880	7,375
Total Liabilities	8,324	8,216	6,664	9,320	15,410
Fixed Assets	1,562	1,610	1,607	2,418	4,856
Capital WIP	46	82	142	1,260	87
Investments (Long Term)	131	342	558	829	561
Other Assets	6,583	6,183	4,357	4,813	9,905
Total Assets	8,324	8,216	6,664	9,320	15,410

Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	10,524	10,503	6,747	6,505	9,758	14,600
Other Income	135	116	235	561	357	222
Expenses	10,170	9,398	5,987	6,043	9,311	13,246
Operating Profit	488	1,221	996	1,023	805	1,576
OPM%	5	12	15	16	8	10
Interest	177	144	68	102	243	332
Depreciation	260	233	215	255	303	343
Profit Before Tax	51	844	713	666	334	902
Tax%	-31	47	31	32	40	51
Net Profit	-13	636	619	439	207	809
PATM%	0	6	9	7	2	5

Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	609	648	713	219	-185
Cash from Investing Activity	-268	-77	-808	-209	-417
Cash from Financing Activity	-335	-743	-174	453	909
Net Cash Flow	6	-172	-269	462	307

Q2 FY24 Result Update:

• Welspun Corp Ltd witnessed a remarkable 98.95% YoY surge in revenue, reaching ₹4,286.12Cr in Q2 2023-2024.
• On a quarterly basis, the company achieved a substantial 4.06% growth in revenue over the last 3 months.
• Welspun Corp Ltd experienced an impressive 779.75% YoY increase in net profit, reaching ₹384.67Cr in Q2 2023-2024.
• On a quarterly basis, the company demonstrated significant growth with a 132.58% increase in net profits over the last 3 months.
• Welspun Corp Ltd’s net profit margin soared by 441.68% YoY, reaching 8.97% in Q2 2023-2024.
• On a quarterly basis, the company achieved a noteworthy 123.5% growth in net profit margins over the last 3 months.

Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Sales	1,322	1,964	2,402	4,070	4,069	4,059
Other Income	73	177	8	62	50	102
Expenses	1,293	2,095	2,236	3,650	3,700	3,660
Operating Profit	102	46	174	483	418	501
OPM%	8	2	7	12	10	12
Interest	31	47	70	95	92	75
Depreciation	61	70	80	91	86	86
Profit Before Tax	10	-72	24	297	240	341
Tax%	147	-7	127	29	25	23
Net Profit	4	-57	23	236	165	385
PATM%	0	-3	1	6	4	9

Conclusion:

In conclusion, Welspun Corp has exhibited a robust financial performance, marked by substantial revenue growth, a remarkable surge in net profits, and significant improvement in net profit margins. The company’s prudent financial management is evident in the reduction of net debt in line with its guidance. With a strategic focus on diversification and expansion, as seen in recent acquisitions, Welspun Corp is positioned for continued success. Investors may find Welspun Corp an attractive choice given its strong financials, positive trajectory, and strategic initiatives aligning with the vision of the Welspun Group.