Welspun Corp Shares Jump Nearly 5% Despite Marginal Dip in Q4 Profit
Welspun Corp, a leading global pipe manufacturer, saw its shares rise by almost 5% during Wednesday’s trading session despite a slight dip in its Q4 profits. Here are the key takeaways from the company’s financial results:
Strong Q4 Revenue Growth: Welspun Corp’s Q4 revenue surged by 102.4% YoY to INR 4,070 crore, compared to INR 2,011.06 crore in the same period last year.
Stable EBITDA: The company’s Q4 EBITDA stood at INR 482.78 crore, up 1.93% YoY from INR 473.63 crore in Q4 FY20.
Lower EPS: Welspun Corp’s Q4 earnings per share (EPS) declined to INR 9.02 from INR 9.05 in the same period last year.
Board’s Approval for Private Placement of NCD: The company’s board of directors has approved the plan to raise INR 500 crore through a private placement of commercial paper/non-convertible debentures (NCD).
Dividend Announcement: The board has also recommended a dividend of INR 5 per share (100% of face value), which will cost the company around INR 130.76 crore.
Market Analysts’ View: According to Bloomberg, out of the seven analysts tracking Welspun Corp shares, six have given a “BUY” rating, while one has recommended a “HOLD”.
Despite a marginal dip in profits, Welspun Corp has managed to maintain stable revenue growth and the board’s approval for private placement of NCDs indicates the company’s confidence in its future prospects. The announcement of a 100% dividend payout also highlights the company’s commitment to maximizing shareholder value.
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