Business Number 3 – Welspun Corp
Diversification of Product Portfolio and Demand in the Sector for the Product will Take Company To Next Level
WCL is a welded pipe manufacturing company engaged in offering solutions in line pipes used for onshore and offshore oil, gas transmission and can produce 2.15 MTPA of steel pipes. Leaders in the oil and gas industry, including Shell, Saudi Aramco, TOTAL, and Chevron etc
Company has given top line Guidance of Rs 15,000 cr by FY24 & EBIDTA of Rs 1,500 crore
Sintex acquisition will help WCL to expand its presence in the B2C market and become a more diversified player such as Line Pipe,DI Pipe,Drums ,Buidling Material and Targeting Rs.1,700 cr of revenue & 20% EBITDA margin for Sintex by FY26
Acquisition of ABG Shipyard can give more than its acquisition cost by selling the half-constructed ships/ scraps. The land area could be utilized for multiple purposes which the management is evaluating, and the potential worth will be realized over the next 12-15 months.
And in next five quarters the profit on the scrap at the ABG shipyard, which will add about 100 cr to EBITDA in FY24
Capacity expansion by 100 KMTPA at Anjar to take total capacity to 500 KMTPA in Next 12 Months and will reach 100% Capacity Utilisation in next 2-3 Years
Company Already have future Ready Capacities which will increase the generation of free Cash Flow with lower debt
Dis: No Buy/Sell Rico*
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