Welspun Corp Ltd

About

Welspun Corp Ltd. is one of the flagship companies of Welspun Group. It is a leading manufacturer of large diameter pipes globally, offering a one-stop solution for all line pipe related requirements with its wide range of high grade line pipes. These pipes are used for offshore and onshore transmission of oil, gas and water. It is among the Largest Welded Line Pipe manufacturing companies in the world. [1]

Operations situated in India can produce a total of 1,650 KMTPA (Kilo Metric Tonnes Per Annum) followed by US operations and Saudi operations with capacities of 525 KTPA and 375 KTPA respectively. [2]

Key Points

Eminent Customer Base
Welspun Corp serves pipeline infrastructure to some of the biggest petroleum companies in the world for e.g. Saudi Aramco, Shell, TOTAL, Chevron, Exxon Mobil, Transcanada, Energy Transfer, etc. [1]

See full details
  • Market Cap 3,330 Cr.
  • Current Price 128
  • High / Low 166 / 99.0
  • Stock P/E 5.01
  • Book Value 145
  • Dividend Yield 3.92 %
  • ROCE 18.3 %
  • ROE 16.1 %
  • Face Value 5.00

Pros

  • Company has reduced debt.
  • Stock is trading at 0.88 times its book value
  • Stock is providing a good dividend yield of 3.92%.
  • Company has delivered good profit growth of 34.73% CAGR over last 5 years

Cons

  • The company has delivered a poor sales growth of -2.30% over past five years.
  • Company has a low return on equity of 12.56% for last 3 years.
  • Contingent liabilities of Rs.2661.70 Cr.
  • Earnings include an other income of Rs.400.31 Cr.

Peer comparison

Sector: Steel Industry: Steel - Medium / Small

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
2,152 2,403 2,756 2,047 2,263 2,888 2,759 2,069 1,158 1,393 1,819 1,299
2,015 2,263 2,753 1,855 1,989 2,532 2,459 1,895 990 1,207 1,614 1,134
Operating Profit 138 140 3 192 274 356 300 175 168 186 206 165
OPM % 6% 6% 0% 9% 12% 12% 11% 8% 14% 13% 11% 13%
Other Income 47 40 9 59 97 60 106 39 116 153 91 40
Interest 45 42 54 39 34 34 36 28 15 13 11 17
Depreciation 66 65 61 54 61 59 59 53 52 54 55 55
Profit before tax 73 73 -103 157 276 323 311 132 217 272 230 133
Tax % 24% 62% -45% 24% 42% 30% 53% 59% 29% 24% 6% 27%
Net Profit 59 30 -149 118 156 223 138 52 149 199 219 97
EPS in Rs 2.21 1.13 -5.61 4.45 5.87 8.57 5.30 1.99 5.72 7.63 8.38 3.74

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
7,333 8,022 8,977 9,083 7,705 8,450 7,236 5,899 6,347 8,953 9,957 6,440 5,669
6,041 6,757 8,118 8,384 7,035 7,595 6,449 5,380 5,874 8,310 8,794 5,676 4,945
Operating Profit 1,292 1,265 858 699 670 855 787 519 473 644 1,163 763 725
OPM % 18% 16% 10% 8% 9% 10% 11% 9% 7% 7% 12% 12% 13%
Other Income 71 114 266 -26 174 96 99 139 128 -106 281 370 400
Interest 233 224 400 358 296 283 241 236 170 177 144 68 56
Depreciation 206 244 352 353 406 436 386 386 258 260 233 215 216
Profit before tax 924 910 373 -39 141 231 258 36 173 101 1,067 852 853
Tax % 34% 32% 40% -126% 31% 8% 31% 72% 12% 122% 39% 26%
Net Profit 610 633 239 -70 73 69 152 26 158 -13 635 619 664
EPS in Rs 29.88 30.92 10.47 -2.67 2.79 2.62 5.72 1.00 5.97 -0.50 24.36 23.72 25.47
Dividend Payout % 7% 6% 5% -19% 18% 19% 9% 50% 8% -100% 43% 21%
Compounded Sales Growth
10 Years:-2%
5 Years:-2%
3 Years:0%
TTM:-43%
Compounded Profit Growth
10 Years:-1%
5 Years:35%
3 Years:53%
TTM:17%
Stock Price CAGR
10 Years:2%
5 Years:11%
3 Years:1%
1 Year:25%
Return on Equity
10 Years:5%
5 Years:9%
3 Years:13%
Last Year:16%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
102 102 114 131 131 132 133 133 133 133 130 130
Reserves 2,799 3,271 3,979 5,526 2,718 2,667 2,666 2,677 2,721 2,665 3,085 3,662
Borrowings 2,548 3,807 5,341 5,577 3,824 3,021 2,644 1,843 1,386 1,305 1,061 829
3,694 3,770 6,364 5,648 2,157 3,998 3,195 3,595 3,452 4,097 3,667 1,880
Total Liabilities 9,143 10,950 15,798 16,883 8,830 9,818 8,637 8,247 7,693 8,200 7,943 6,501
3,292 4,173 6,724 8,021 4,923 4,662 3,730 3,356 3,046 1,567 1,617 1,614
CWIP 541 777 627 546 115 80 34 32 17 47 83 142
Investments 160 1,440 1,979 1,867 1,140 805 1,017 725 488 476 784 1,702
5,150 4,559 6,468 6,448 2,653 4,271 3,855 4,134 4,143 6,110 5,460 3,043
Total Assets 9,143 10,950 15,798 16,883 8,830 9,818 8,637 8,247 7,693 8,200 7,943 6,501

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
384 666 1,429 103 227 901 354 403 981 623 648 713
95 -2,177 -2,117 -164 -229 338 -326 618 184 -255 -49 -810
277 558 963 -265 -527 -1,106 -99 -979 -761 -335 -743 -174
Net Cash Flow 756 -952 275 -327 -528 133 -71 42 405 33 -144 -272

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 40 59 62 71 30 49 71 91 76 48 46 37
Inventory Days 156 135 159 156 94 138 107 159 125 129 127 88
Days Payable 72 56 63 55 19 25 33 19 45 41 38 28
Cash Conversion Cycle 124 138 158 171 105 162 144 231 156 136 135 97
Working Capital Days 4 23 21 31 55 36 46 53 29 59 57 62
ROCE % 24% 18% 9% 5% 5% 8% 8% 5% 7% 12% 30% 18%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
48.74 48.65 48.98 48.98 48.98 49.03 49.03 47.49 48.22 50.02 50.02 50.01
5.54 6.24 6.42 6.67 6.51 8.02 9.39 8.20 9.05 12.19 12.71 11.71
8.60 8.66 6.22 7.48 8.96 9.81 9.84 9.57 8.27 7.80 8.77 8.02
37.12 36.45 38.39 36.88 35.56 33.14 31.75 34.74 34.46 29.99 28.49 30.26

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