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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -22.9 % over the year, decrease in net sales/revenue by -29.68 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -14.28 %, Marginal decrease of -48.58% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Welspun Corp Limited. Notable increase of 47.19 % in net profit Year to Year, Welspun Corp Limited’s profitability dropped by -13.69 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 50.16 % Year to Year. EPS decreased by -7.5 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 4069.27 Cr | Rs. 4461.17 Cr | Rs. 3137.23 Cr | -29.68 % | -22.9 % |
| Expenses | Rs. 3712.43 Cr | Rs. 4131.02 Cr | Rs. 2763.28 Cr | -33.11 % | -25.57 % |
| Operating Profit | Rs. 356.84 Cr | Rs. 330.15 Cr | Rs. 373.95 Cr | + 13.27 % | + 4.79 % |
| OPM % | 8.77 % | 7.4 % | 11.92 % | + 4.52 % | + 3.15 % |
| Other Income | Rs. 49.51 Cr | Rs. 82.53 Cr | Rs. 42.44 Cr | -48.58 % | -14.28 % |
| Interest | Rs. 92.32 Cr | Rs. 74.58 Cr | Rs. 66.39 Cr | -10.98 % | -28.09 % |
| Depreciation | Rs. 85.87 Cr | Rs. 86.77 Cr | Rs. 84.83 Cr | -2.24 % | -1.21 % |
| Profit before tax | Rs. 228.16 Cr | Rs. 251.33 Cr | Rs. 265.17 Cr | + 5.51 % | + 16.22 % |
| Tax % | 24.87 % | 23.81 % | 21.61 % | -2.2 % | -3.26 % |
| Net Profit | Rs. 168.45 Cr | Rs. 287.28 Cr | Rs. 247.94 Cr | -13.69 % | + 47.19 % |
| EPS in Rs | Rs. 6.3 | Rs. 10.23 | Rs. 9.46 | -7.53 % | + 50.16 % |
Today, we’re looking at Welspun Corp Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -22.9 %. However, it did see a marginal slip of -29.68 % from the previous quarter. Expenses decreased slightly by -33.11 % quarter-on-quarter, aligning with the annual decline of -25.57 %. Operating profit, while up 4.79 % compared to last year, faced a quarter-on-quarter increase of 13.27 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 3.15 %, but an expansion of 4.52 % sequentially. Other income fell by -48.58 % compared to the last quarter, despite an annual decline of -14.28 %. Interest expenses dropped significantly by -10.98 % from the previous quarter, yet the year-over-year decrease remains at a moderate -28.09 %. Depreciation costs fell by -2.24 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -1.21 %. Profit before tax grew annually by 16.22 % but saw an increase from the preceding quarter by 5.51 %.
Tax expenses as a percentage of profits decreased slightly by -3.26 % compared to last year, with a more notable quarter-on-quarter decrease of -2.2 %. Net profit rose by 47.19 % year-on-year but witnessed a -13.69 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 50.16 % but a quarterly fall of -7.53 %. In summary, Welspun Corp Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 4069.27 Cr | Rs. 4461.17 Cr | Rs. 3137.23 Cr | -29.68 % | -22.9 % |
| Expenses | Rs. 3712.43 Cr | Rs. 4131.02 Cr | Rs. 2763.28 Cr | -33.11 % | -25.57 % |
| Operating Profit | Rs. 356.84 Cr | Rs. 330.15 Cr | Rs. 373.95 Cr | + 13.27 % | + 4.79 % |
| Net Profit | Rs. 168.45 Cr | Rs. 287.28 Cr | Rs. 247.94 Cr | -13.69 % | + 47.19 % |
| EPS in Rs | Rs. 6.3 | Rs. 10.23 | Rs. 9.46 | -7.53 % | + 50.16 % |
In reviewing Welspun Corp Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -22.9 % year-on-year, although there was a slight dip of -29.68 % from the previous quarter. Expenses decreased by -25.57 % compared to the previous year, with a decrease of -33.11 % quarter-on-quarter. Operating Profit surged by 4.79 % annually, and saw a 13.27 % increase from the last quarter.
Net Profit showed yearly increase of 47.19 %, and experienced a -13.69 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 50.16 % annually, however dipped by -7.53 % compared to the last quarter. In essence, while Welspun Corp Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
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