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Welspun Corp Ltd.

BSE: 532144 Sector: Metals & Mining
NSE: WELCORP ISIN Code: INE191B01025
BSE 16:00 | 28 Sep 266.60 -8.80
(-3.20%)
OPEN

274.80

HIGH

277.70

LOW

264.50

NSE 15:51 | 28 Sep 266.05 -8.65
(-3.15%)
OPEN

272.20

HIGH

277.70

LOW

264.35

OPEN 274.80
PREVIOUS CLOSE 275.40
VOLUME 151337
52-Week high 298.35
52-Week low 123.00
P/E 13.33
Mkt Cap.(Rs cr) 6,972
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 274.80
CLOSE 275.40
VOLUME 151337
52-Week high 298.35
52-Week low 123.00
P/E 13.33
Mkt Cap.(Rs cr) 6,972
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Welspun Corp Ltd. (WELCORP) - Chairman Speech

Company chairman speech

Dear Shareholders

I am writing to you at a time when the world as we know it has beenchanging. In the beginning of the financial year reduced economic activity and lockdownshad an impact on the demand and supply in the energy markets. This was followed by astrong recovery with improvement in business conditions strengthening demand and overallbetter market conditions. However stimulus programs and the vaccination drives acrosscountries is enabling a recovery.

India should also witness a recovery as increasing number of people getinoculated with the vaccine.

At Welspun Corp we demonstrated resilience and rose to the challenges.We moved swiftly to respond to the situation and took several steps to secure theinterests of all our stakeholders. Despite the prevailing uncertainty we had a strongorder book movement and resilient performance. We assessed our inherent strengthstargeted opportunities for change identified smarter strategies and built strongpartnerships. We are continually converting our challenges into opportunities through ourrobust balance sheet superior governance framework and maximum asset utilization and inthe process capturing a high share of the overall opportunities.

Having built our business on sound fundamentals it gives us enoughroom to tackle the unprecedented situation. Our strong financial position and executioncapability has enabled us to explore and fund new business opportunities like ductileiron pipes to bring growth and consistency in financial earnings. We continue tostrengthen our business through automation digitization and developing talent. We areconfident of being able to pursue our focus on the long term while we address thenear-term challenges.

COVID-19 AND OUR RESPONSE

We have adopted several measures across our organization to ensure thatour commitment to our stakeholders is not compromised. A robust IT infrastructure has beenput in place for remote working to ensure business functions seamlessly from any location.A Special task force team has been formed across locations to support affected employeesand their family members. The highest standards of hygiene and safety are being practicedby our staff across all our locations. Additional measures have been taken to ensure thewell-being and create awareness amongst our employees through Employee Connect Drives.Various activities like Meditation with Family Wellness tips COVID Myth Busters byeminent Doctors Counselors Yoga practitioners Nutritionists have been organized. Wehave extended advance leaves for COVID-affected employees who can avail them for theirhospitalization or home quarantine period.

Employees have also been given advances to meet financial urgencies.Apart from the Group Term Life Insurance plan a formal policy has also been announced tosupport employees who have lost their lives during pandemic. This includes 50% monthlysalary for 2 years as living allowance medical insurance for family (Spouse and 2children) of Rs. 5 Lakhs for 10 years Education fees for 2 children till graduation(Scholarship scheme). Additionally we will consider the spouse or children for suitablejob roles based on Company's policy as per requisite qualification and skill. While anykind of financial support cannot compensate for the magnitude of the loss of life we willalways remain with the families during these difficult times.

FINANCIAL PERFORMANCE

During the year our financial performance across the three geographieswere satisfactory despite the challenging environment. Total income from operations stoodat Rs. 64397 million consolidated EBITDA was Rs. 10099 million and PAT afterMinorities Associates & JVs (Continuing Operations) was Rs. 6299 million. We endedthe year with a net cash position of Rs. 6204 million.

Our solid financial position has been supported by a healthy productmix and the cost optimization measures taken by the management. Several order wins in thedomestic and overseas markets helped in reasonable capacity utilization and give clearbusiness continuity. Operational excellence financial discipline and a sharp focus on newopportunities resulted in a steady order book position and a healthy balance sheet. Ourcurrent order book stands at 528 KMT valued at Rs. 48 billion while our active bid bookis at 1230 KMT.

BUSINESS UPDATES

We spent the year strengthening our competitive advantages. Our Bhopalproject which was under construction was duly completed. The state-of-the-art facilityis spread across 150 acres in the Raisen district. This project will cater to the growingdemand for Oil & Gas and Water infrastructure in Central and Eastern India. Moreoverattractive industry prospects and synergies with our existing business has given us theconfidence to foray into the ductile iron pipe segment by setting up a Greenfield facilityat Anjar. The plant is expected to be commissioned by April 2022.

The Board has approved the listing of Saudi joint venture companyWelspun Middle East Pipes at the local stock exchange. This involves divesting a total30% stake along with our JV partners. Currently we hold 50.01% stake in the JV throughour overseas subsidiary. The additional cash from the stake sale will further strengthenour financial position.

I am also pleased to share that we consummated the Plate & CoilMill Division (PCMD) Divestment during the year. PCMD was transferred to JSW Steel Limitedas on 31st March 2021 for the purchase consideration of Rs. 848.5 crore. Thishas further fortified our strong net cash position.

The Company has accelerated its ESG journey.

We have begun by setting a clear ambition with bold targets. We areaiming for increasing use of renewable energy zero waste to landfill and being waterneutral. There are also targets for corporate social venturing and a sustainable supplychain.

We have identified ESG as a strategic priority and are undertakingseveral management interventions with sustainability at its core.

OUTLOOK

The rollout of vaccines and fiscal stimulus programs will result in animproved scenario for Oil and Gas demand globally. In India there is a big thrust onnatural gas as part of the Government's plan of raising its share in the country's energybasket. In the domestic water segment irrigation projects will drive demand though weexpect a delay in pickup as states continue to battle with COVID-19.

As far as export market is concerned we have been receiving severalenquiries for upcoming projects across the world. We are also optimistic of the prospectsin Saudi Arabia at the current level of oil prices. In the US there is caution aftermajor pipeline projects have been stalled by environmental opposition. While we make themost of a challenging present we are ready for a focused and progressive journey ahead.Overall growth prospects in India and Saudi Arabia are attractive while the US market isalso expected to recover in the medium term.

We remain perfectly poised for a thriving future setting new benchmarksof excellence.

VOTE OF THANKS

In closing I would like to take this opportunity to thank our talentedteam of employees whose unwavering resolve and commitment has enabled us to conquer manya challenge and achieve new benchmarks.

Let me also take this opportunity to thank our Board of Directors andall Stakeholders for the encouragement and unstinted support and to drive the Company togreater heights.

Wish you all good health.

Best regards
Balkrishan Goenka
Chairman

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