In Q4FY20, Welspun recorded a whopping 207% or 3-folds rise in its consolidated net profit to Rs90.68cr compared to Rs29.56cr in the corresponding period of the previous year.
On the other hand, revenue from operations slumped to Rs470.71cr for the quarter against Rs725.07cr in Q4FY19.
For the financial year FY20, Welspun posted net profit and revenue of Rs150.97cr and Rs1.807.59cr, respectively.
Welspun in its financial audit report said, "The outbreak of COVID-19 has impacted the business operations across all industries in the country. This has resulted in an interruption to construction activities, disruption to supply chain, availability of manpower etc. Ministry of Road Transport and Highways (‘MORT&H’) issued instructions to NHAI to implement certain relief measures which are very generic and conditional. However, specific directions from MORT&H /NHAI is awaited for seeking specific relief for the industry."
In a meeting held on Monday, Welspun board approved a dividend at the rate of 20%(i.e Rs 2 per equity share) of Rs10 each fully paid up to the members whose name shall appear on the record date.
Also, the board approved re-appointment of Balkrishna Goenka as the Executive Chairman for the period of five years from June 01, 2020, on the remuneration of Rs7.5cr per annum plus commission at the rate of 2% of the annual profit of the company.
Welspun also seeks to raise funds to the tune of Rs300cr by way of (i) a further public offer, qualified institutions placement, subject to the approval of the shareholders of the Company; (ii) a rights issue; or (iii) any other permissible mode or through a combination thereof.
At around 09.45 am, Welspun stock price was trading at the upper price band of Rs62.75 per piece up 5% on Sensex.
On the previous day, Welspun stock ended at Rs59.80 per piece on Sensex.