Welspun Corp Ltd

- Welspun Corp recorded record FY'24 financials: revenue INR17,500 crore (+74% YoY), EBITDA INR1,800 crore (2x prior year), and PAT INR1,110 crore (>5x increase). ROCE improved to 20% from 8% in FY'23. - Management confident of sustained growth in key segments: stainless steel, Sintex (water tanks and pipes), TMT bars, line pipes, and DI pipes. - Sintex business is EBITDA positive since FY'24 and expected to contribute more as capex (~INR2,300 crore over 2 years) drives new growth starting H1 FY'26. - Capacity expansions underway (DI pipes capacity to rise from 400,000 to 600,000 tonnes). - TMT business aiming for 70-80% capacity utilization in FY'25-26 with further demand expected from Gujarat's industrialization. - EBITDA margins have room to improve, on a medium-term basis. - Debt management focused on keeping debt/EBITDA ratio below 5x; net debt reduced significantly in FY'24. - Guidance for FY'25 is cautious but expected to be revised upward as year progresses, based on market fundamentals.

- U.S. order book volume pending execution is approximately 80,000 to 100,000 tonnes, expected to last till Q3 FY25 (Page 14). - DI pipe business has an order book of over 325,000 tonnes, giving visibility for about 9 months in FY25 (Page 5). - Total DI pipe order book is 328,000 tonnes with capacity expanding from 400,000 to 600,000 tonnes (Page 9). - Saudi entity (EPIC) has a confirmed order book covering more than 2 years, ensuring sustainable performance over next 8 quarters (Page 5). - U.S. order book confirmed till Q3 of FY25 with active pursuit of additional pipelines (Page 4). - Overall, order books provide visibility ranging from 9 months to over 2 years depending on region and product.

- No explicit mention of any new fundraising through equity in the document. - Capex of INR 2,350 crore planned over next 2 years, primarily funded through internal cash flows from profitable businesses. - Strong focus on managing debt levels; internal target to keep debt-to-EBITDA below 5x, preferably lower. - Net debt reduced significantly from INR 1,138 crore in FY '23 to INR 387 crore in FY '24, showing prudent debt management. - The company expects all businesses to generate sufficient free cash flow to fund growth and capex without stressing the balance sheet. - No indication of planned raising of debt beyond existing management limits. - Priority remains on operational growth and internal accruals to fund capital expenditure and expansion.

- **Sintex Business:** - INR 2,300 - 2,350 crore capex planned over the next 2 years, focusing on pipes business (CPVC, UPVC, HDPE, OPVC). - Capex spread mainly in FY '25 and FY '26. - Operations expected to start from Q1 or H1 FY '26. - **DI Pipes Business:** - Capacity expanded from 400,000 tonnes to 500,000 tonnes, further expanding to 600,000 tonnes by FY end. - Capex for DIP expansion in India mostly within this financial year. - Additional capex of around INR 500 crore planned for DIP expansion in the Middle East over 2 years. - **Steel (TMT) Business:** - Plans to optimize existing capacity with approximately 70-80% utilization target; no immediate capex mentioned. - **Other Notes:** - Total capex for FY could be between INR 1,500 to 2,000 crore considering all projects. - Strong focus on profitable growth, capacity utilization, and maintaining healthy debt levels.

- Welspun Corp expects significant growth across all businesses: stainless steel, Sintex (building materials), TMT bars, DI pipes, and U.S. operations. - Sintex business sales grew 35% YoY to INR 635 crore in FY24, with a targeted 3x to 4x top-line growth over the next 5 years. - DI pipe capacity expanding from 400,000 to 600,000 tonnes with expected 70-80% utilization in FY25; order book covers 9 months. - TMT bar sales reached 120,000 tonnes in FY24 (~50% capacity utilization); aiming for 70-80% utilization in FY25 and '26. - Overall revenue grew from INR 10,000 crore to INR 17,000 crore in FY24; expected steady to strong growth going forward. - Management confident in multi-year growth supported by government schemes (Jal Jeevan Mission, AMRUT), infrastructure and industrialization projects. - Capacity utilization targets include 70-80% for Sintex and significant utilization ramp in pipe and steel segments.