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Welspun hits the roof after strong Q4 numbers

Consolidated profit before tax (PBT) surged 46.1% to Rs 89.59 crore in Q4 March 2020 from Rs 61.31 crore reported in Q4 March 2019. Total tax expenses paid declined 98% to Rs 0.51 crore in Q4 March 2020 from Rs 31.68 crore posted in Q4 March 2019.

Standalone net profit rose 5.4% to Rs 48.77 crore on 36.6% decline in net sales to Rs 450.43 crore in Q4 March 2020 over Q4 March 2019. Standalone profit before tax declined 25.7% to Rs 62.96 crore in Q4 March 2020 over Q4 March 2019. Total tax expenses tumbled 63% to Rs 14.19 crore in Q4 March 2020 from Rs 38.42 crore posted in Q4 March 2019. The result was announced after market hours on Monday, 1 June 2020.

EBITDA declined 18.3% to Rs 74.3 crore in Q4 March 2020 from Rs 91 crore in Q4 March 2019. EBITDA margin improved to 16% in Q4 March 2020 from 12.7% in Q4 March 2019.

The company's gross debt stood at Rs 310 crore as on 31 March 2020 as against Rs 238.1 crore in 31 December 2019 and Rs 170.9 crore reported in 31 March 2018.

Commenting on the developments, B. K. Goenka, Chairman, Welspun Group said, “In spite of the bleak macroeconomic scenario currently, Welspun Enterprises is well placed to tap opportunities in the Infrastructure space through its cautious Bid and Buy strategy. Our robust order book, strong balance sheet with healthy cash balance and focus on operational excellence will help us tide over these challenging times. We are confident that with our differentiated asset-light model, we will be able to create long-term sustainable value for all stakeholders.”

Welspun said there are around 39 HAM projects of NHAI, with a total project cost of Rs. 390 billion, whose bids have been announced. The company is selectively targeting to participate in bidding of few projects, while preserving its threshold return expectations. Welspun is also exploring opportunities in state and municipal HAM (Hybrid Annuity Model) projects in roads. The company further added it will continue to explore inorganic growth opportunities, through a measured evaluation of risk-return parameters.

Meanwhile, the board has approved a dividend of Rs 2 per equity share.

Welspun Enterprises part of the Welspun Group, is an operating Company in the infrastructure business.

Source: Capitalmarket.com