Welspun Enterprises tanks 6% after Q3 PAT declines 79% yoy to Rs6.3cr

3 Feb 2022 , 10:16 AM

Welspun Enterprises Ltd., a diversified infra player with a presence in Road and Water, on Wednesday, announced its results for the quarter ended December 31, 2021.

The company’s Profit After Tax (PAT) declined 79% yoy to Rs6.3cr in Q3FY22 from Rs30cr in Q3FY21. Revenue from Operations also saw a 47.1% yoy fall to Rs215.5cr in Q3FY22 from Rs407.3cr in Q3FY21. EBITDA was 58.1% yoy lower at rs22.3cr from Rs53.2cr. EBITDA margin at 9.9% down 290bps from 12.8% yoy.

The company said in a filing that it has an unexecuted EPC Order Book as on December 31, 2021, ~Rs7,680cr (~Rs5,162cr in Road and ~Rs2,525cr in Water segment).

The company stock was under selling pressure on Thursday and at around 10.20 AM, Welspun Enterprises Ltd was trading at Rs94.80 per share down by Rs6.2 or 6.14% from its previous closing of Rs101 per share on the BSE.
Key Business updates

• Provisional Commercial Operation Date (PCOD) announced by PWD Maharashtra for Hybrid Annuity Model (HAM) project. This is the fifth HAM Road project completed by the Company, with a completion cost of around Rs1,670cr.
• Healthy progress in the EPC project NH-2 (Varanasi to Aurangabad) and the UP JJM Water project, with rapid progress in on-site mobilization is expected to contribute significant revenue going forward.
• For the UPJJM project in the Water segment, Tripartite Agreements for 358 Detailed Project Reports (DPRs) covering 693 villages for a value of Rs943cr have been executed.
• The Company’s SPV for the MCP project has received a change of scope (COS) amounting to an additional order Rs183cr from NHAI, which is expected to result in incremental cash flow in ensuing quarters.

Ajay Hans, CEO, Welspun Enterprises Ltd, said, “We have reported an operating performance that is characterized by a strong order book, with a majority of the unexecuted EPC order book coming from external client engagements, and also reflects our selective approach to evaluating and pursuing project opportunities. While project implementation and progress during the period under review has been affected by exogenous factors such as the farmers’ agitation and NGT intervention in a large BOT project, we expect the ongoing execution of our robust order book to generate incremental revenue and drive growth from next quarter onwards.”

He added on Wednesday, “we are encouraged by the continued thrust on infrastructure, as seen in the Union Budget presented yesterday. Among the measures announced was the expansion of the national highway network by 25,000 kilometers in FY2022-23. We are making consistent efforts in expanding our footprints into the Water segment where we see significant opportunities over the next few years.”