Rs 19,500 Crore Order Book: Iron & Steel Company Surges Over 9 Per Cent Post Q4 Results, Marks Strongest Single-Day Gain in 3 Years
The stock has gained 8.65 per cent year-to-date, 49.22 per cent over the last 12 months, and an impressive 1,464.16 per cent in the last five years.
Welspun Corp Ltd witnessed a sharp rally of over 9 per cent on Thursday following the announcement of its Q4FY25 results. The share price touched an intraday high of Rs 887.5, registering its highest single-day gain in the last three years and recording the highest trading volume in nearly one and a half years. As of 10:41 AM IST, the stock was trading up by 9.08 per cent.
The company reported a Profit After Tax (PAT) of Rs 327.54 crore for the quarter ended March 2025, reflecting a 30 per cent increase year-on-year compared to Rs 251.33 crore in Q4FY24. Sequentially, PAT rose by 7.32 per cent. Despite a 12 per cent decline in revenue from operations on a year-on-year basis to Rs 3,924.97 crore, the profit growth indicates strong operational efficiency. Notably, the company accounted for exceptional income of Rs 476.50 crore in Q4FY25 from a partial stake sale and fair valuation of Nauyaan Shipyard.
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On a full-year basis, revenue from operations stood at Rs 13,977.54 crore in FY25, down 19.39 per cent from Rs 17,339.60 crore in FY24. However, annual PAT increased marginally by 3.09 per cent to Rs 1,187.25 crore, from Rs 1,151.64 crore in the previous year. The company surpassed its EBITDA guidance with Rs 1,858 crore in FY25 and achieved a Return on Capital Employed (ROCE) of 21 per cent. Both metrics exceeded company guidance for the second consecutive year.
Welspun Corp declared a final dividend of Rs 5 per share (100 per cent of the face value of Rs 5), subject to shareholder approval at the upcoming Annual General Meeting (AGM). The consistent dividend payout adds to its appeal for income-seeking investors.
The company maintained a healthy order book exceeding Rs 19,500 crore, including orders for line pipes, ductile iron pipes, and stainless steel bars and pipes across India, the USA, and the Kingdom of Saudi Arabia. The U.S. mill remains fully booked for the next eight quarters, reflecting strong demand visibility.
Despite incurring capital expenditure of Rs 900 crore during FY25, Welspun Corp reduced its gross debt by Rs 1,000 crore and ended the year with a net cash position of Rs 1,049 crore. This financial discipline strengthens its position in the Mid-Cap space and could support future dividend payouts or even potential bonus or rights issues, should the management decide to enhance shareholder value further.
On the stock performance front, Welspun Corp has gained 8.65 per cent year-to-date, 49.22 per cent over the last 12 months, and an impressive 1,464.16 per cent in the last five years—placing it among the potential multibagger stocks in the mid-cap segment.
Welspun Corp Ltd is one of the world's largest manufacturers of large-diameter pipes and has expanded into value-added products like BIS-certified steel billets, TMT rebars, ductile iron pipes, stainless steel tubes, and bars. The company recently acquired Sintex-BAPL to expand its building materials portfolio and specified assets of ABG Shipyard to strengthen its infrastructure base.
Disclaimer: The article is for informational purposes only and not investment advice.