Highlights
- Sales over the Year and quarter: The company’s sales declined by -2.84 % over the year, substantial increase in net sales/revenue by 16.19 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -33.85 %, Marginal increase in other income during this quarter, up by 33.24%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Welspun Enterprises Limited. Profit dropped by -45.47 % Year to Year, Welspun Enterprises Limited’s profitability dropped by -2.82 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -45.93 % Year to Year. EPS decreased by -2.48 % 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. 845.08 Cr | Rs. 706.71 Cr | Rs. 821.11 Cr | + 16.19 % | -2.84 % |
| Expenses | Rs. 750.24 Cr | Rs. 580.4 Cr | Rs. 709.97 Cr | + 22.32 % | -5.37 % |
| Operating Profit | Rs. 94.84 Cr | Rs. 126.31 Cr | Rs. 111.14 Cr | -12.01 % | + 17.19 % |
| OPM % | 11.22 % | 17.87 % | 13.54 % | -4.33 % | + 2.32 % |
| Other Income | Rs. 57.81 Cr | Rs. 28.7 Cr | Rs. 38.24 Cr | + 33.24 % | -33.85 % |
| Interest | Rs. 36.51 Cr | Rs. 28.1 Cr | Rs. 28.34 Cr | + 0.85 % | -22.38 % |
| Depreciation | Rs. 3.94 Cr | Rs. 9.33 Cr | Rs. 9.08 Cr | -2.68 % | + 130.46 % |
| Profit before tax | Rs. 112.2 Cr | Rs. 117.58 Cr | Rs. 111.96 Cr | -4.78 % | -0.21 % |
| Tax % | 15.75 % | 27.67 % | 28.74 % | + 1.07 % | + 12.99 % |
| Net Profit | Rs. 142.43 Cr | Rs. 79.92 Cr | Rs. 77.67 Cr | -2.82 % | -45.47 % |
| EPS in Rs | Rs. 10.39 | Rs. 6.55 | Rs. 5.67 | -13.44 % | -45.43 % |
Today, we’re looking at Welspun Enterprises Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -2.84 %. However, it did see a marginal increase of 16.19 % from the previous quarter. Expenses ticked up slightly by 22.32 % quarter-on-quarter, aligning with the annual decline of -5.37 %. Operating profit, while up 17.19 % compared to last year, faced a quarter-on-quarter dip of -12.01 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 2.32 %, but a shrinkage of -4.33 % sequentially. Other income rose by 33.24 % compared to the last quarter, despite an annual decline of -33.85 %. Interest expenses surged remarkably by 0.85 % from the previous quarter, yet the year-over-year decrease remains at a moderate -22.38 %. Depreciation costs fell by -2.68 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 130.46 %. Profit before tax declined annually by -0.21 % but saw a reduction from the preceding quarter by -4.78 %.
Tax expenses as a percentage of profits increased slightly by 12.99 % compared to last year, with a more notable quarter-on-quarter increase of 1.07 %. Net profit fell by -45.47 % year-on-year but witnessed a -2.82 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -45.43 % but a quarterly fall of -13.44 %. In summary, Welspun Enterprises 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. 845.08 Cr | Rs. 706.71 Cr | Rs. 821.11 Cr | + 16.19 % | -2.84 % |
| Expenses | Rs. 750.24 Cr | Rs. 580.4 Cr | Rs. 709.97 Cr | + 22.32 % | -5.37 % |
| Operating Profit | Rs. 94.84 Cr | Rs. 126.31 Cr | Rs. 111.14 Cr | -12.01 % | + 17.19 % |
| Net Profit | Rs. 142.43 Cr | Rs. 79.92 Cr | Rs. 77.67 Cr | -2.82 % | -45.47 % |
| EPS in Rs | Rs. 10.39 | Rs. 6.55 | Rs. 5.67 | -13.44 % | -45.43 % |
In reviewing Welspun Enterprises Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -2.84 % year-on-year, however, there was a minor increase of 16.19 % from the previous quarter. Expenses decreased by -5.37 % compared to the previous year, with a 22.32 % increase quarter-on-quarter. Operating Profit surged by 17.19 % annually, and saw a -12.01 % decrease from the last quarter.
Net Profit showed yearly decrease of -45.47 %, and experienced a -2.82 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -45.43 % annually, however dipped by -13.44 % compared to the last quarter. In essence, while Welspun Enterprises Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
