Welspun India : Corp Ltd. announced Q3 FY17 results - 10 February 2017

Welspun Corp Ltd. (WCL), the flagship company of the Welspun Group, announced its consolidated financial results for the nine months and third quarter ended December 31, 2016.

Please note all figures in this document, unless specified, are under IND AS basis. For I-GAAP comparison, please refer to our Q3FY17 presentation.

• Total income from operation of Rs. 12,028 mn, down 28% YoY

• Reported EBITDA at Rs. 1,705 mn, down 32% YoY

• Operating EBITDA at Rs. 1,224 mn, down 40% YoY

• Profit before tax of Rs. 108 mn vs. Rs. 970 mn in Q3FY16

• Net loss of Rs. 39 mn vs. Net profit of Rs. 531 mn in Q3FY16

• Basic EPS at Rs. (0.15) vs. Rs. 2.02 in Q3FY16

• Production of pipes (ex-Saudi Arabia operations) were up 4%, while sales was down 14% YoY

• Production and sales of pipes (total operations) were down 22% / 35% YoY respectively

  For the nine months ended 31st December, 2016 WCL consolidated reported:

• Total income from operation of Rs. 39,660 mn, down 27% YoY

• Reported EBITDA at Rs. 4,304 mn, down 37% YoY

• Operating EBITDA at Rs. 3,220 mn, down 49% YoY

• Loss before tax of Rs. 361 mn vs. Profit before tax of Rs. 2,085 mn in 9MFY16

• Net loss of Rs. 469 mn vs. Net profit of Rs. 1,406 mn in 9MFY16

• Basic EPS at Rs. (1.77) vs. Rs. 5.34 in H1FY16

• Production and sales of pipes (ex-Saudi Arabia operations) were down 16%/ 22% YoY respectively

• Production and sales of pipes (total operations) were down 26% / 28% YoY respectively

Commenting on the results, Mr B. K. Goenka, Chairman, Welspun Group said, "Delay in few large projects continued to impact our execution. However, the Global market is more stable and the industry is adapting to a 'new normal'. The metamorphosis from 'reducing cost' to 'adding value' is gaining momentum. Understanding this phenomenon, we have taken various measures for adding value by expanding our capabilities while maintaining financial discipline."

Figures in Rs. million unless specified

Notes: a) Operating EBITDA = Reported EBITDA - Non-operational income - Unrealised forex gain/ (loss)

1. Cash PAT = PBT - Current tax + Depreciation - Post-tax Unrealised forex gain/ (loss)

2. Prior period figures have been restated, wherever necessary

   Figures in Rs. million unless specified

   Consolidated debt	31-Dec-2016	30-Sep-2016	31-Mar-2016
   Gross Debt	22,619	20,739	26,440
   Cash & Cash Equivalents	10,494	12,715	12,818
   Net Debt	12,125	8,023	13,622

   Please note all figures in this document, unless specified, are under IND AS basis. For I-GAAP comparison, please refer to our Q3FY17 presentation.

   Business outlook:

   India market outlook is positive led by expanding National Gas Grid and various water projects across the country. Expected investments in major MENA markets, heavy oilfield developments in Africa and Canada, and deep sea developments would drive global demand.

   Due to investments in latest technology and expanded value propositions, we are well poised to cater to increasingly diversified and technically demanding projects worldwide.

   Despite challenges in raw material availability, conducive regulatory environment coupled with higher volumes has benefitted Plate & Coil Mill operations.

   Post Q3FY17 conference call:

   WCL management would be happy to answer investor queries on a conference call. Please find details below:

   Date : Friday, 10 February 2017

   Time : 4:00pm IST (6:30pm HKT / 10:30 BST / 5:30am EST)

   Dial in details:

    India: +91 22 3960 0706

   • Other Local Access: Ahmedabad, Bangalore, Chandigarh, Chennai, Gurgaon (NCR), Hyderabad,

Kochi/Cochin, Kolkata, Lucknow, Pune

o 3940 3977 (Accessible from all carriers)

 Hong Kong: 800 964 448

 Singapore: 800 101 2045

 UK: 080 8101 1573

 USA: 1866 746 2133

http://services.choruscall.in/diamondpass/registration?confirmationNumber=9008674

Welspun Corp is a one-stop service provider offering complete pipe solution with a capability to manufacture line pipes ranging from ½ inch to 140 inches, along with specialized coating, double jointing and bending. With current capacity of 2.425 million MTPA in Dahej, Anjar and Mandya in India, Little Rock in the USA and Dammam in Saudi Arabia, Welspun takes pride in being a preferred supplier to most of the Fortune 100 Oil

& Gas companies. With 360 degree abilities, Welspun Corp has undertaken some of the most challenging projects in different parts of the world. With business excellence being a clear focus, the company is on the path of innovation and technology edge supported by its state-of-the-art facilities and global scale operations. The Line pipe industry caters to the sectors like energy and water resource management where in the line pipes supplied are used to construct cross-country pipelines for transportation of oil, gas, petro- products and water in the safest and most environment friendly way.