Welspun India : Corp Ltd. announced Q4 FY18 results - 2 May 2018

All-time high order book and strong balance sheet to provide robust platform for growth

Full Year Revenue up 26%, EBITDA up 11% and PAT grows five-fold

May 02, 2018, Mumbai: Welspun Corp Ltd. (WCL), flagship Company of the Welspun Group, announced its consolidated financial results for the full year and fourth quarter ended March 31, 2018.

Financial Highlights (Consolidated):

For the year ended 31st March, 2018:

•  Total income from operation of Rs. 75,873 mn, up 26% YoY driven by higher volumes

•  EBITDA at Rs. 8,147 mn vs. Rs. 7,370 mn, up 11% YoY

•  Profit before tax and share of JVs of Rs. 2,501 mn vs. Rs. 1,152 mn in FY17, up 117% YoY

•  PAT after Minorities & JVs at Rs. 1,583 mn, a five-fold jump from the FY17 figure of Rs. 264 mn

•  Basic EPS at Rs.5.97 vs. Rs. 1.00 in FY17

•  Production and sales of pipes (ex-Saudi Arabia operations) were up 11% / 19% YoY respectively

•  Production and sales of pipes (total operations) were up 7% / 16% YoY respectively

•  Plates & coils production more than doubled to 469K MT from 233K MT

•  Net debt stood at Rs. 4,216 mn against Rs. 11,065 mn, a significant reduction of Rs. 6,849 mn during the year

For the quarter ended 31st March, 2018:

•  Total income from operation of Rs. 16,589 mn, down 20% YoY on account of lower volumes

•  EBITDA at Rs. 1,579 mn, down 48% YoY on account of change in mix of orders

•  Profit before tax and share of JVs of Rs. 261 mn, down 83% YoY

•  PAT after Minorities & JVs of Rs. (45) mn vs. Net profit of Rs. 734 mn in Q4FY17

•  Basic EPS at Rs. (0.17) vs. Rs. 2.77 in Q4FY17

•  Production and sales of pipes (ex-Saudi Arabia operations) were down 34% / 40% YoY respectively.

•  Production and sales of pipes (total operations) were down 24% / 25% YoY respectively, as recently won orders are scheduled to start execution only by H1FY19.

•  Plates & coils production stood at 172K MT vs. 41 K MT, up 318% YoY

Order book position (including all operations): Current pipe order book stands at 1,657K MTs (Rs. 109 billion). The Company started with the year with an order book of 601K MT and has booked orders of more than 2.1 million MT during the year.

Commenting on the results, Mr B. K. Goenka, Chairman, Welspun Group said, "Our order book of 1.65 million MT is at an all-time high. This will enable significant capacity utilisation and better margins, particularly for the US and Saudi Arabia facilities. We expect good order inflows to continue in FY19 on account of high energy prices, expansion of National Gas Grid in India and several water projects being planned in India and Saudi Arabia. We shall continue to develop our human capital and technological competencies across all geographies."

Performance Snapshot

Figures in Rs. million unless specified

Notes: a) Q3FY18 and Q4FY18 Revenue from operations is net of Goods and Services Tax (GST). Please refer to Note 6 of Consolidated Financial Results for details

• b) Prior period figures have been restated, wherever necessary

• c) Cash PAT = PBT - Current tax + Depreciation

Figures in Rs. million unless specified

Business outlook:

Demand for small diameter pipe continues to show good traction in Americas region. Large diameter segment is showing early signs of revival, with gas export projects gaining momentum.

Demand from oil & gas segment in MENA is expected to pick-up over the next few quarters.

Domestic market continues to witness a competitive situation. However, we see strong demand especially in water segment, driven by river-linking and irrigation projects across states. Large diameter pipe demand for the Oil & Gas segment is expected to be driven by expansion of National Gas Grid. City gas distribution and North east connectivity projects including last-mile connectivity are expected to boost demand for small diameter pipes.

Demand outlook for our Plate and Coil Mills division remains satisfactory, although margin challenges remain.

Post Q4FY18 investor / analyst conference call:

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

Date : Wednesday, 2 May 2018 Time : 4:00pm IST

Dial in details:

•  India: +91 22 7115 8227, +91 22 6280 1326

•  International Toll Free numbers

  • o Hong Kong: 800 964 448

  • o Singapore: 800 101 2045

  • o UK: 080 8101 1573

  • o USA: 1866 746 2133

•  International Toll numbers

  • o Hong Kong: 85230186877

  • o Singapore: 6531575746

  • o UK: 442034785524

  • o USA: 13233868721

About Welspun Corp Ltd. (WCL)

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.

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For further information please visitwww.welspuncorp.com or contact:

For Investor Relations: Harish Venkateswaran,harish_venkateswaran@welspun.com +91 22 61336832

For Media Relations: Sunil Gate,sunil_gate@welspun.com +91 9823093000 ______________________________________________________________________________________

DISCLAIMER: The information in this release has been included in good faith and is for general purposes only. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or completeness. No information in this release shall constitute an invitation to invest in Welspun Corp Ltd. or any of its affiliates. Neither Welspun Corp Ltd., nor their affiliates' officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of profit, indirect, incidental or consequential loss.