Today, Welspun Enterprises saw a significant boost in its stock, climbing by 8.6% to ₹405.50 during intraday trading. By the end of the session, the shares settled with a solid 6.54% gain at ₹397.70 each.
This surge came after the company announced that it secured the position of the L1 bidder for the “Construction of Access Controlled Multi-Modal Corridor from Navghar to Balavali in the State of Maharashtra on EPC Mode Package MMC-11.” The project is valued at ₹1,864.71 crore and is expected to be completed within 36 months.
Financial Performance:
In the previous trading session, the stock had dipped by over 5% following news of a decline in both revenue and net profit. For Q4 FY24, revenue dropped by 22% to ₹644 crore, while net profit saw a substantial 53% year-on-year decrease to ₹64 crore.
For the full fiscal year, standalone revenue and net profit saw an 8% and 51% year-on-year reduction, amounting to ₹2,450 crore and ₹285 crore, respectively. The company attributed the subdued revenue to project challenges and delayed order receipts but noted that it surpassed its margin guidance.
Strong Order Book and Future Prospects
However, FY25 began on a positive note, with the company boasting its highest-ever standalone opening order book valued at ₹12,200 crore. This comprises mostly water and wastewater management projects (77%) and road projects (23%). With subsidiary Welspun Michigan Engineers’ order book worth ₹1,600 crores factored in, the consolidated order book totals to a significant ₹14,200 crore, over 4 times the company’s consolidated revenue for FY24.
Looking forward, the road sector presents promising opportunities as the government plans to construct 23 new national highways by 2025, with private sector participation expected to drive infrastructure development. Additionally, the government aims to provide piped water supply to rural households, targeting a capital expenditure of ₹12.6 trillion for water infrastructure.
Welspun Enterprises Ltd. focuses on infrastructure development, specializing in road, water, and wastewater segments, with investments in oil & gas exploration. Over the past year, shares have surged by 163%, and in the last 2 years, they have seen a remarkable 369% increase.
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