140% YoY Net Profit Jump and Buyback at 38% Premium, Win-Win for Welspun Investors

Welspun India approved a buyback of shares at 38% premium and announced a 140% YoY increase in net profit.

Welspun India’s stock soared on April 27 after the company approved an earlier request for a buyback of shares and announced a 140% YoY increase in consolidated net profit.

The business has authorised the repurchase of 1.625 crore fully paid equity shares at Rs 120 per share for a total of Rs 195 crore. This amounts to approximately 5.85% of the entire paid-up equity share capital. The buyback price is almost 38% more than today’s closing price of Rs 87.05.

The business announced that it had set May 10, 2023, as the record date for determining shareholder eligibility for the Buyback. The business also announced that it would issue a public statement later clarifying procedural specifics and other legislative procedures in line with the Buyback Regulation.

Welspun India also disclosed its Q4FY23 results, disclosing that its consolidated net profit increased 140% yearly, from Rs 52 crore last year to Rs 125 crore this year. However, consolidated sales fell roughly 2.3% annually to Rs 2,196 crore, compared to Rs 2,247 crore reported before in Q4FY22, while standalone revenue was Rs 1,904 crore in the December quarter of last year.

EBITDA increased by 30% yearly to Rs 320 crore, while the margin increased by 361 basis points. Welspun India has set May 10 as the record deadline for stockholders to be eligible for buybacks. Market capitalisation has surged by roughly 39% in the last month alone, with an 11% gain in the previous six months.

The stock finished 0.81% higher on the NSE on April 27 at Rs 86.75 a share. The company’s market value has climbed by about 39% in the last month and 11% over the previous six months.

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