Welspun Corp Ltd

- No explicit mention of any current or future fundraising through debt or equity in the provided transcript. - The company emphasizes prudent capital allocation, focusing on growth investment, reserve creation, and shareholder rewards. - Strong focus on reducing net debt to minimal levels; has already reduced net debt by INR700 crores recently. - No discussions on capital-intensive options like shipbuilding; exploring low-capex, value-accretive business opportunities such as ship repair and recycling. - Cash flow generation expected to be strong, enabling further gross debt reduction without additional fundraising. - Management prioritizes organic growth and cash flow over raising new funds via equity or debt at this time.

- For the current financial year, Welspun Corp is not planning any major capex except for maintenance capex, estimated around INR 250-300 crores across all businesses. - The company has restricted fixed cost outflow and is not engaging in capital-intensive options like shipbuilding but is exploring low-capex, non-cyclical, high-return business opportunities such as ship repair and recycling, with an assessment expected to complete in the next two quarters. - Investments have been made in new businesses like Sintex BAPL, DI pipes, and WSSL, which will start accruing benefits over the next quarters and years. - The focus is on prudent capital allocation prioritizing growth investments, creating reserves, and rewarding shareholders, with no current plans for demergers or significant new capex-heavy projects.

- Topline expected to grow to approximately INR 15,000 crores in FY 2024, about 50% growth from current levels (Page 8). - Targeted sales for DI pipes between 175,000 to 200,000 tons, representing 45-50% capacity utilization, indicating a ramp-up phase in next 3-4 quarters (Page 5). - Sustained growth expected in DI pipe business over next 5 to 7 years due to strong demand from Jal Jeevan Mission and pan-India requirements (Page 14). - Line pipe business sales volume in recent past: 374,000 tons total operations; 200,000 tons in India, 30,000 tons in the U.S., and 100,000 tons from Saudi operations, with growing order book in Southeast Asia, Middle East, and U.S. markets (Page 3, 11). - Bid book increased 46% quarter on quarter, driven by Southeast Asia, Middle East, and U.S. demand (Page 11). - Ramp-up in steel (TMT bars) and blast furnace production supporting volume growth (Page 5).

- Welspun Corp targets a topline of around INR 15,000 crores for FY 2024, reflecting approximately 50% growth from the current level. - EBITDA is expected to reach close to INR 1,500 crores, representing a 90% to 100% increase over current levels. - The company aims to achieve a return on capital employed (ROCE) of 16%+ in FY 2024. - Growth drivers include robust demand across line pipe businesses, steel, DI pipes, Sintex, and WSSL subsidiaries—all poised for expansion. - DI pipe segment capacity at 400,000 tons benefits from lower coal and iron ore prices, supporting margin improvement over a year. - U.S., Middle East (Saudi Arabia, Qatar), and Southeast Asia are key regions contributing to increased order books and growth. - Management is focused on growth without immediate plans for demerger, prioritizing investments and shareholder returns. - The ramp-up of new units like DI pipes is on track, with EBITDA breakeven already achieved and further improvement expected.

- Total order book: ~1.1 million tons - Saudi entity: ~475,000 tons (robust and very profitable order book) - U.S. entity: ~400,000 tons (strong with firm visibility till December 2023) - India entity: ~250,000 tons (active discussions to significantly grow in subsequent quarters) - DI pipe business order book: ~140,000 tons, with a capacity of 400,000 tons; potential to increase order book as ramp-up targets are met. - Saudi associate's INR4,000 crore order (Master Gas Phase 3) execution starts from September 2023 and continues till May/June 2024. - Inventory of INR1,000+ crores mainly against export orders, expected to reduce as orders get executed. - Bid book increased 46% QoQ driven by Southeast Asia, Middle East (Saudi and Qatar), and the U.S. - Expect business continuity in Saudi for 2-3 years with additional water sector orders anticipated.