Latest news with #Welspun
Mint
3 days ago
- Business
- Mint
Welspun Group sees strong US business despite US tariffs, expands into water management
On Thursday morning, Welspun Corp stock was up 10% on highest volumes of shares traded on any day in the past twelve months. The stock closed at its 52-week peak of ₹ 895 on the BSE. The company, which makes steel pipes for transporting oil, had just announced its Q4FY25 and FY25 results, reporting a 67% increase in consolidated net profits over the previous financial year despite a 19% fall in annual revenues. The sudden confidence of investors should come as a surprise. There was some serious uncertainty surrounding its business after President Donald Trump imposed a 25% tariff on steel imports into the US in early March. Welspun, which has a pipe making factory in the US, imported steel as raw material, which made the landed cost of the metal highest compared to anywhere else in the world. It looked like Welspun Corp was staring at a prolonged downturn. A month after Trump announced tariffs, the stock was down 15%. B.K. Goenka, chairman of Welspun Corp, says: 'Trump's big support for the local US oil industry is seeing a surge of investments in the sector. There is a huge demand for pipes, causing their prices to increase and we are doubling down on the business.' Welspun disclosed that it has an order book of ₹ 19,500 crore, while its US steel mill is booked for the next 8 quarters. It is not just in the pipe business that Goenka is exuding confidence. As luck would have it, yet another company of the $5 billion Welspun group has its business fortunes linked to the US market. Welspun Living, which is the largest maker of bath towels in the world, accounts for every fifth towel sold in the US. Just like steel, garments exports to the US were also affected by Trump's new rules, which saw import tariffs increase from 4.57% to 30.57%, according to textile industry portal Fibre2Fashion. In its Q4FY25 results announced on Thursday, Welspun Living said that its home textiles grew at 1.7% year-on-year (y-o-y) in the quarter, even though the growth stood at 10.8% in FY25. The company's total revenue rose 1.2% to ₹ 2,648 crore in Q4FY25. For the full fiscal year, it rose at 8.9% to ₹ 10,697 crore. A research report by institutional equities firm Systematix titled Indian Textiles, published after India signed its free trade agreement FTA with the UK in the first week of May, says: 'The FTA is poised to bring far-reaching benefits to India's textile and apparel sector. The agreement can double bilateral trade between the two countries.' The sector's export accounted for 12% of UK's $15.3 billion imports from India and the report expects a 9% increase in Welspun's export to the UK, boosted by the agreement. In many ways, the two Welspun firms have come to be good examples of how Indian companies are working the way around Trump's tariffs, which have got the attention of senior business leaders, policy makers and investors in the past two months. 'Immediately, we will face some issues in our export to the US because of tariffs but we must understand that the main focus of the US is to reduce its reliance on China. To that effect, the real China+1 effect is going to play out only now. In the coming years, we expect our exports to the US to grow 20%,' says Goenka. Now, the biggest chunk of Chinese exports to the US markets come from synthetic textile and garment, while Indian exports are based on cotton. 'We may not gain from Chinese exports going down as much as getting our shares from countries like Bangladesh and Sri Lanka which also face higher tariffs in the US. We have better access to capital and that will help us scale up faster," Goenka says. "India has a unique advantage in home textiles as well-run companies like Welspun Living have easier access to capital markets and also locally-made cotton. It is placed better than competitors like Pakistan and Turkey in terms of US tariffs," says Arvind Singhal, founder and chairman of retail industry consultancy KSA Technopak. Singhal, until last year, was a board member of Welspun Living. On the other hand, since the price of oil pipe will be directly linked to that of steel, Goenka expects to pass any price increase to customers. 'The price of US steel has already gone up after tariffs were announced and there is going to be parity to imports,' he says. In the case of Welspun Corp, there are other levers too by which Goenka is trying to generate value. To deploy some of its cash, Goenka took control of plastics storage and furniture maker Sintex after the company filed for bankruptcy. The interest in Sintex stems from Goenka's interest in the water business, which he thinks will grow into a substantial one in the coming years. 'Starting from treatment, whether fresh water treatment or desalination, then transporting, and having a small loft tank, pipes, tap and small effluent sewage treatment can all be done by Sintex as a package unit," says Goenka. 'In FY26, we will do about ₹ 800 crore of revenue but the profits won't by much because of old losses or restructuring. But, we have 10% margin in the business.' "Welspun has diversified beyond its core offerings into building materials and plastic segments. Such expansion enables it to align with favourable dynamics across the industrial, consumer and residential markets," wrote Shweta Dikshit, analyst with Institutional equities firm Systematix in a May 19 note on the company. The firm recommended a buy on the stock with a target price of ₹ 1,006. Elsewhere, Goenka is focusing on reducing his costs in the textile business and is implementing a solar power project in Anjar, Gujarat. That project was commissioned with an intention to ensure that 80% of the power for the textile plant came from renewable sources in FY26 and 100% by FY30. 'Connectivity to the grid is still an issue. We will commission a part of it by September this year and the rest by December," Goenka says. The group will eventually have more solar energy in the renewable portfolio as a new company Welspun Energy has been incorporated for the business. In pilot stages are plans to produce green ammonia and green hydrogen. 'It may look like green hydrogen is not viable today but that was the case with solar energy too in 2008-09 when it was ₹ 18 a unit. The same will happen to hydrogen and it is the energy of the future," he says.
Business Standard
5 days ago
- Business
- Business Standard
Welspun Living slides as Q4 PAT decline 10% YoY to Rs 132 cr
Welspun Living dropped 6.60% to Rs 137.95 after the company reported a 9.71% decrease in consolidated net profit of Rs 131.82 crore in Q4 FY25 as against Rs 146 crore in Q4 FY24. Revenue rose by 2.74% year-over-year to Rs 2,645.90 crore during the period under review. EBITDA for the fourth quarter of FY25 was Rs 318 crore as compared with Rs 400 crore in the corresponding period last fiscal year. EBITDA margin reduced to 12% in Q4 FY25 as against 15.3% in Q4 FY25. On the segmental front, the Home Textile business reported revenue of Rs 2,452.56 crore, up 1.27% YoY, while the Flooring business recorded revenue of Rs 195.76 crore in Q4 FY25, reflecting a de-growth of 8.05%. Net debt stood at Rs 1,603 crore as of March 2024, higher by Rs 248 crore compared to Rs 1,354 crore in March 2023, but lower by Rs 56 crore from Rs 1,658 crore reported in December 2024. On a full-year basis, the companys net profit slipped 6.15% to Rs 639.16 crore on an 8.94% rise in net sales to Rs 10,545.09 crore in FY25 over FY24. On capex front the company said In Q4FY25, we spent ₹106 cr towards capex, majorly towards the Towel project at Anjar. FY25 capital outlay stood at Rs 701 cr On the capex front, the company stated that it spent Rs 106 crore in Q4 FY25, primarily towards the Towel project at Anjar. The total capital outlay for FY25 stood at Rs 701 crore. B.K. Goenka, chairman, Welspun Group, said, Despite evolving global trade dynamics and tariff uncertainties, Welspun continues to lead with resilience, agility, and innovationbringing clarity to complexity and turning disruption into opportunity. FY25 was a defining year as the company crossed the Rs 10,000 crore revenue mark, with consolidated revenues of Rs 10,697 crore, grew by 8.9% and a strong 10.8% growth in home textile exports. Our emerging businesses which are future growth engine contribute approximately 30% of revenues, reinforcing the power of our diversified model. We are equally focused on scaling our domestic consumer business which grew 5.1% in FY25, with the Welspun brand reaching deeper into households and SPACES evolving into a complete home lifestyle offering. Christy continues to build its reputation as a global luxury brand with focus on profitable growth and enhanced presence in markets beyond UK. Strategically, our ESG leadership has been validated with a score of 83 in the 2024 S&P Global CSA ranking us 1st in India and 4th globally in the Textile, Apparel & Luxury Goods categorya strong endorsement of our commitment to sustainable value creation. Meanwhile, the companys board has recommended a dividend of Rs 1.70 per equity share for FY 2024-25, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The dividend will be paid to shareholders holding equity shares as of the record date, 27 June 2025. Welspun Living (WLL) is a global leader in home textiles. With a distribution network in more than 60 countries and world-class manufacturing facilities in India, Welspun is a strategic partner with top global retailers. WLL is driven by its differentiation strategy based on branding, innovation, and sustainability. On 22 September 2023, Welspun India Limited changed its name to Welspun Living Limited.
Time of India
6 days ago
- Business
- Time of India
Welspun shares rally 11% to record high as Q4 profit more than doubles, debt drops
Shares of Welspun Corp surged as much as 11% on Thursday to a record high of Rs 903.2 on the BSE, after the pipe manufacturing major's fourth-quarter net profit more than doubled, the company slashed its gross debt, and it guided for strong revenue growth in the year ahead. The stock has now rallied over 47% in the past year and gained 328% over three years. Welspun Corp reported a 143% year-on-year jump in consolidated net profit to Rs 699.19 crore for the March quarter, compared with Rs 287.28 crore in the same period a year earlier. The profit surge came even as total income declined to Rs 3,966.86 crore from Rs 4,543.70 crore, driven by a sharp reduction in expenses, which fell to Rs 3,639.32 crore from Rs 4,292.37 crore. On a sequential basis, profit rose 4% from Rs 672.19 crore in the December quarter. For the full year FY25, net profit rose to Rs 1,902.28 crore, up from Rs 1,136 crore in FY24. Final Dividend and Fundraising Plan Approved The board recommended a final dividend of Rs 5 per share for FY25 and approved a fundraising proposal of up to Rs 500 crore via commercial papers or non-convertible debentures on a private placement basis. The company noted that it has traditionally used these instruments for routine working capital needs and will disclose specific terms at the time of issuance. Debt Cut and Net Cash Milestone Achieved Welspun said it reduced gross debt by Rs 1,000 crore during FY25, despite incurring a capital expenditure of Rs 900 crore. It closed the year as a net cash company with reserves of Rs 1,049 crore—a key milestone for the manufacturer. Live Events Upbeat Outlook with Strong Order Visibility Welspun forecast FY26 revenue at Rs 17,500 crore, a 25% increase over the Rs 13,977.54 crore it posted in FY25. The company said its order book exceeds Rs 19,500 crore, spanning line pipes in India and the U.S., ductile iron pipes, and stainless steel products. Its U.S. mill is fully booked for the next eight quarters. To meet growing demand, the company is investing Rs 5,482 crore across India, the U.S., and Saudi Arabia to expand capacity across segments. Sector Momentum Adds to Rally The rally in Welspun shares also tracked broader gains in metal stocks on Thursday, with the Nifty Metal index rising 1% after a U.S. trade court blocked most of former President Donald Trump's proposed 'Liberation Day' import tariffs. The U.S. Court of International Trade ruled that 'President Trump exceeded his authority' with the tariff proposal. While the White House has appealed the decision, the ruling raised hopes that Trump may scale back the highest tariff levels he had threatened, improving global risk sentiment. With Thursday's surge, Welspun shares surpassed their previous record of Rs 900, hit on March 24, 2025, and now trade well above their 52-week low of Rs 441, touched on June 4, 2024. The company, a flagship of Welspun World, is one of the top three manufacturers of large-diameter pipes globally, with a diversified presence across six continents.
Economic Times
6 days ago
- Business
- Economic Times
Welspun shares rally 11% to record high as Q4 profit more than doubles, debt drops
Shares of Welspun Corp surged as much as 11% on Thursday to a record high of Rs 903.2 on the BSE, after the pipe manufacturing major's fourth-quarter net profit more than doubled, the company slashed its gross debt, and it guided for strong revenue growth in the year ahead. ADVERTISEMENT The stock has now rallied over 47% in the past year and gained 328% over three years. Welspun Corp reported a 143% year-on-year jump in consolidated net profit to Rs 699.19 crore for the March quarter, compared with Rs 287.28 crore in the same period a year earlier. The profit surge came even as total income declined to Rs 3,966.86 crore from Rs 4,543.70 crore, driven by a sharp reduction in expenses, which fell to Rs 3,639.32 crore from Rs 4,292.37 crore. On a sequential basis, profit rose 4% from Rs 672.19 crore in the December quarter. For the full year FY25, net profit rose to Rs 1,902.28 crore, up from Rs 1,136 crore in FY24. The board recommended a final dividend of Rs 5 per share for FY25 and approved a fundraising proposal of up to Rs 500 crore via commercial papers or non-convertible debentures on a private placement basis. The company noted that it has traditionally used these instruments for routine working capital needs and will disclose specific terms at the time of issuance. Welspun said it reduced gross debt by Rs 1,000 crore during FY25, despite incurring a capital expenditure of Rs 900 crore. It closed the year as a net cash company with reserves of Rs 1,049 crore—a key milestone for the manufacturer. Welspun forecast FY26 revenue at Rs 17,500 crore, a 25% increase over the Rs 13,977.54 crore it posted in FY25. The company said its order book exceeds Rs 19,500 crore, spanning line pipes in India and the U.S., ductile iron pipes, and stainless steel products. Its U.S. mill is fully booked for the next eight quarters. ADVERTISEMENT To meet growing demand, the company is investing Rs 5,482 crore across India, the U.S., and Saudi Arabia to expand capacity across segments. The rally in Welspun shares also tracked broader gains in metal stocks on Thursday, with the Nifty Metal index rising 1% after a U.S. trade court blocked most of former President Donald Trump's proposed 'Liberation Day' import tariffs. The U.S. Court of International Trade ruled that 'President Trump exceeded his authority' with the tariff proposal. While the White House has appealed the decision, the ruling raised hopes that Trump may scale back the highest tariff levels he had threatened, improving global risk sentiment. ADVERTISEMENT With Thursday's surge, Welspun shares surpassed their previous record of Rs 900, hit on March 24, 2025, and now trade well above their 52-week low of Rs 441, touched on June 4, company, a flagship of Welspun World, is one of the top three manufacturers of large-diameter pipes globally, with a diversified presence across six continents. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Mayor
18-05-2025
- Business
- Business Mayor
India's Kalyan Jewellers bets store-opening spree will fuel revenue growth, top executive says
India's Kalyan Jewellers is targeting revenue growth of more than 25 per cent this financial year as the gold and diamond retailer quickens store openings amid a rising preference for lower-carat jewellery, its executive director said on Tuesday. Record high gold prices have not deterred the wealthy from investing in gold and buying ornaments in the second-largest gold buying country but the middle class is switching to lower-carat and lightweight jewellery. Consumers are favouring chains over independent jewellers, shopping frequently, and spending more on gifts, Kalyan Jewellers' Executive Director Ramesh Kalyanaraman said in an interview. 'The advantage of Kalyan today is we can grow across the country … We have a lot of markets to go and explore,' he said, forecasting that revenue would 'easily' rise over 25 per cent for the fiscal year that started on April 1. The jeweller, which had 278 showrooms branded 'Kalyan' and 73 stores under the more affordable 'Candere' brand in India at March-end, plans to open shop at 160 new locations this fiscal year, with the additions split evenly between the two brands. Its bigger rival Titan had more than a thousand jewellery stores in India at March-end, with roughly half of those under its flagship 'Tanishq' brand. In three years, Kalyan Jewellers aims its 'Kalyan' branded stores to catch up with Titan's 'Tanishq' count, the executive director said, but flagged that the rapid expansion would squeeze the group's core earnings margin. Read More Welspun plans home run after going around the world For the year ending on March 31, Kalyan Jewellers reported a more than one-third rise in revenue to 250.5 billion rupees ($2.9 billion), helped by double-digit percentage same-store sales growth as it opened 136 stores in India. Titan's mainstay jewellery business saw a 21 per cent increase in total income to 465.7 billion rupees for the fiscal year.
