Welspun Corp Ltd
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. #
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. #
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. #
Region-wise Revenue breakup
Company cloaked in sales of 9,957 crores in FY20 out of which 39% was contributed by Indian operations, 33% by United States operations and 28% by Indian operations. #
Utilization Levels
Saudi operations are the most effective ones with almost peak utilization rates due to high demand in the region. US operations show healthy utilization rates at around 80% while Indian operations are the most under-utilized ones with only around 40% utilization rates due low domestic demand and dependence on exports for filling its order book. # # #
Future CAPEX
Company is foraying into the business of ductile iron pipes which find its key applications in water supply infrastructure, sewage pipe system, irrigation water system, industrial water transportation etc.
The project is being setup with an initial investment of around Rs.1,250 cr in India and is expected to be commissioned within 18 months. #
Approval to list Saudi JV #
Plan to list Saudi JV viz. WMEPL at the local Stock Exchange.
- Market Cap ₹ 3,398 Cr.
- Current Price ₹ 130
- High / Low ₹ 198 / 55.0
- Stock P/E 6.31
- Book Value ₹ 130
- Dividend Yield 8.06 %
- ROCE 29.6 %
- ROE 21.7 %
- Face Value ₹ 5.00
Pros
- Company has reduced debt.
- Company is almost debt free.
- Stock is trading at 1.00 times its book value
- Stock is providing a good dividend yield of 8.06%.
- Company has delivered good profit growth of 55.03% CAGR over last 5 years
- Debtor days have improved from 55.21 to 41.93 days.
- Promoter holding has increased by 1.80% over last quarter.
Cons
- Company has a low return on equity of 8.79% for last 3 years.
- Contingent liabilities of Rs.2072.06 Cr.
- Earnings include an other income of Rs.414.66 Cr.
Peer comparison
Sector: Steel Industry: Steel - Medium / Small
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
1,277 | 1,642 | 2,152 | 2,403 | 2,756 | 2,047 | 2,263 | 2,888 | 2,759 | 2,069 | 1,158 | 1,393 | |
1,213 | 1,527 | 2,015 | 2,263 | 2,753 | 1,855 | 1,989 | 2,532 | 2,459 | 1,895 | 990 | 1,207 | |
Operating Profit | 63 | 115 | 138 | 140 | 3 | 192 | 274 | 356 | 300 | 175 | 168 | 186 |
OPM % | 5% | 7% | 6% | 6% | 0% | 9% | 12% | 12% | 11% | 8% | 14% | 13% |
Other Income | 34 | 46 | 47 | 40 | 9 | 59 | 97 | 60 | 106 | 39 | 116 | 153 |
Interest | 37 | 37 | 45 | 42 | 54 | 39 | 34 | 34 | 36 | 28 | 15 | 13 |
Depreciation | 61 | 67 | 66 | 65 | 61 | 54 | 61 | 59 | 59 | 53 | 52 | 54 |
Profit before tax | -0 | 57 | 73 | 73 | -103 | 157 | 276 | 323 | 311 | 132 | 217 | 272 |
Tax % | -1,559% | 24% | 24% | 62% | -45% | 24% | 42% | 30% | 53% | 59% | 29% | 24% |
Net Profit | -8 | 47 | 59 | 30 | -149 | 118 | 156 | 223 | 138 | 52 | 149 | 199 |
EPS in Rs | -0.29 | 1.76 | 2.21 | 1.13 | -5.61 | 4.45 | 5.87 | 8.57 | 5.30 | 1.99 | 5.72 | 7.63 |
Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5,609 | 7,333 | 8,022 | 8,977 | 9,083 | 7,705 | 8,450 | 7,236 | 5,899 | 6,347 | 8,953 | 9,957 | 7,379 | |
5,150 | 6,041 | 6,757 | 8,120 | 8,384 | 7,035 | 7,595 | 6,458 | 5,386 | 5,874 | 8,323 | 8,805 | 6,551 | |
Operating Profit | 459 | 1,292 | 1,265 | 857 | 699 | 670 | 855 | 778 | 512 | 473 | 631 | 1,151 | 829 |
OPM % | 8% | 18% | 16% | 10% | 8% | 9% | 10% | 11% | 9% | 7% | 7% | 12% | 11% |
Other Income | 297 | 71 | 114 | 268 | -26 | 174 | 96 | 108 | 145 | 129 | -93 | 292 | 415 |
Interest | 279 | 233 | 224 | 400 | 358 | 296 | 283 | 241 | 236 | 170 | 177 | 144 | 92 |
Depreciation | 143 | 206 | 244 | 352 | 353 | 406 | 436 | 386 | 386 | 258 | 260 | 233 | 218 |
Profit before tax | 334 | 924 | 910 | 373 | -39 | 141 | 231 | 258 | 36 | 173 | 101 | 1,067 | 932 |
Tax % | 36% | 34% | 32% | 40% | -126% | 31% | 8% | 31% | 72% | 12% | 122% | 39% | |
Net Profit | 214 | 610 | 633 | 239 | -70 | 73 | 69 | 152 | 26 | 158 | -13 | 635 | 538 |
EPS in Rs | 11.45 | 29.88 | 30.92 | 10.47 | -2.67 | 2.79 | 2.62 | 5.72 | 1.00 | 5.97 | -0.50 | 24.36 | 20.64 |
Dividend Payout % | 13% | 7% | 6% | 5% | -19% | 18% | 19% | 9% | 50% | 8% | -100% | 43% |
Compounded Sales Growth | |
---|---|
10 Years: | 3% |
5 Years: | 3% |
3 Years: | 19% |
TTM: | -26% |
Compounded Profit Growth | |
---|---|
10 Years: | 1% |
5 Years: | 55% |
3 Years: | 166% |
TTM: | 55% |
Stock Price CAGR | |
---|---|
10 Years: | -3% |
5 Years: | 9% |
3 Years: | -10% |
1 Year: | -30% |
Return on Equity | |
---|---|
10 Years: | 5% |
5 Years: | 6% |
3 Years: | 9% |
Last Year: | 22% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Sep 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
93 | 102 | 102 | 114 | 131 | 131 | 132 | 133 | 133 | 133 | 133 | 130 | 130 | |
Reserves | 1,466 | 2,799 | 3,271 | 3,979 | 5,526 | 2,718 | 2,667 | 2,666 | 2,677 | 2,721 | 2,665 | 3,085 | 3,257 |
Borrowings | 2,654 | 2,548 | 3,807 | 5,341 | 5,577 | 3,824 | 3,021 | 2,644 | 1,843 | 1,386 | 1,305 | 1,061 | 366 |
4,204 | 3,694 | 3,770 | 6,364 | 5,648 | 2,157 | 3,998 | 3,195 | 3,595 | 3,452 | 4,097 | 3,667 | 2,672 | |
Total Liabilities | 8,418 | 9,143 | 10,950 | 15,798 | 16,883 | 8,830 | 9,818 | 8,637 | 8,247 | 7,693 | 8,200 | 7,943 | 6,425 |
3,100 | 3,292 | 4,173 | 6,724 | 8,021 | 4,923 | 4,662 | 3,730 | 3,356 | 3,046 | 1,567 | 1,617 | 1,574 | |
CWIP | 581 | 541 | 777 | 627 | 546 | 115 | 80 | 34 | 32 | 17 | 47 | 83 | 66 |
Investments | 114 | 160 | 1,440 | 1,979 | 1,867 | 1,140 | 805 | 1,017 | 725 | 488 | 476 | 784 | 939 |
4,623 | 5,150 | 4,559 | 6,468 | 6,448 | 2,653 | 4,271 | 3,855 | 4,134 | 4,143 | 6,110 | 5,460 | 3,846 | |
Total Assets | 8,418 | 9,143 | 10,950 | 15,798 | 16,883 | 8,830 | 9,818 | 8,637 | 8,247 | 7,693 | 8,200 | 7,943 | 6,425 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
1,319 | 384 | 666 | 1,429 | 103 | 227 | 901 | 354 | 403 | 981 | 623 | 648 | |
-744 | 95 | -2,177 | -2,117 | -164 | -229 | 338 | -326 | 618 | 184 | -255 | -49 | |
101 | 277 | 558 | 963 | -265 | -527 | -1,106 | -99 | -979 | -761 | -335 | -743 | |
Net Cash Flow | 677 | 756 | -952 | 275 | -327 | -528 | 133 | -71 | 42 | 405 | 33 | -144 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
ROCE % | 16% | 24% | 18% | 9% | 5% | 5% | 8% | 8% | 5% | 7% | 12% | 30% |
Debtor Days | 30 | 40 | 59 | 62 | 71 | 30 | 49 | 71 | 91 | 76 | 48 | 42 |
Inventory Turnover | 2.12 | 2.12 | 2.65 | 2.76 | 2.42 | 2.64 | 3.41 | 2.60 | 2.71 | 2.74 | 3.42 | 2.96 |
Documents
Add documentRecent announcements
- Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 16 Feb
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 16 Feb
- Redemption Of Commercial Paper 12 Feb
- Compliances-Reg. 57 (1) - Certificate of interest payment/Principal in case of NCD 9 Feb
- Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate 4 Feb
View all
Annual reports
- Financial Year 2020 from bse
- Financial Year 2019 from bse
- Financial Year 2018 from bse
- Financial Year 2017 from bse
- Financial Year 2016 from bse
- Financial Year 2015 from bse
- Financial Year 2014 from bse
- Financial Year 2013 from bse
- Financial Year 2013 from nse
- Financial Year 2012 from bse
- Financial Year 2011 from bse
- Financial Year 2011 from nse
- Financial Year 2010 from bse
- Financial Year 2010 from nse