Welspun India : Corp Ltd. announced Q4 FY17 results - 9 May 2017

Welspun Corp Ltd. (WCL), flagship company of the Welspun Group, announced its consolidated financial results for the year and fourth quarter ended March 31, 2017.

Please note all figures in this document, unless specified, are under IND AS basis. For I-GAAP comparison, please refer to our Q4FY17 presentation.

• Total income from operation of Rs. 20,695 mn, up 5% YoY

• Reported EBITDA at Rs. 3,066 mn, up 46% YoY

• Operating EBITDA at Rs. 2,160 mn, up 35% YoY

• Profit before tax of Rs. 1,513 mn vs. Rs. 547 mn in Q4FY16

• PAT after Minorities & JVs of Rs. 734 mn vs. Rs. 112 mn in Q4FY16

• Basic EPS at Rs. 2.77 vs. Rs. 0.42 in Q4FY16

• Production and sales of pipes (ex-Saudi Arabia operations) were up 22% / 28% YoY respectively

• Production and sales of pipes (total operations) were up 18% / 25% YoY respectively

  For the year ended 31st March, 2017 WCL consolidated reported:

• Total income from operation of Rs. 60,355 mn, down 18% YoY

• Reported EBITDA at Rs. 7,370 mn, down 17% YoY

• Operating EBITDA at Rs. 5,379 mn, down 32% YoY

• Profit before tax of Rs. 1,152 mn vs. Rs. 2,632 mn in FY16

• PAT after Minorities & JVs of Rs. 264 mn vs. Rs. 1,518 mn in FY16

• Basic EPS at Rs. 1.00 vs. Rs. 5.76 in FY16

• Production and sales of pipes (ex-Saudi Arabia operations) were down 6%/ 8% YoY respectively

• Production and sales of pipes (total operations) were down 15% YoY each

Commenting on the results, Mr B. K. Goenka, Chairman, Welspun Group said, "Q4 was driven by strong volumes leading to improvement in profitability. Though we are starting the new fiscal with a moderate orderbook position, strong demand in domestic market coupled with favourable policy measures taken by the Government of India presents a positive outlook for the year. We continue to take various measures for further strengthening 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-Mar-2017	31-Dec-2016	31-Mar-2016
   Gross Debt	18,430	22,619	26,437
   Cash & Cash Equivalents	7,365	10,494	12,883
   Net Debt	11,065	12,125	13,554

   Please note all figures in this document, unless specified, are under IND AS basis. For I-GAAP comparison, please refer to our Q4FY17 presentation.

   Business outlook:

   India market outlook remains positive driven by various water projects across the country and expansion of National Gas Grid. Favorable policy measures taken by Government of India, including the recently announced National Steel Policy, would further drive demand in domestic market. Apart from benefiting the linepipe business, this would also have positive implications for our Plate and Coil Mill business.

   Various industry trends like heavy oil development, deep sea development would drive the global linepipe demand. We expect good traction in international markets, especially North America, towards the second half of FY2018.

   We continue to enhance our value proposition, customer reach and technical know-how which makes us one of the front-runners for increasingly diversified and technically demanding projects worldwide.

   Post Q4FY17 conference call:

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

   Date : Monday, 8 May 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.