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Welspun Enterprises stock price: Welspun Enterprises jumps 5% as lower spending boosts PAT in Q4

By on May 16, 2022 0
NEW DELHI – Welspun Enterprises shares jumped 5% in early trading on Monday after the company said its consolidated net profit jumped more than 58% year on year (YoY) to Rs 65 crore for the quarter ended on March 31, due to reduced expenses.

In the prior year period, the company recorded a net profit of Rs 40.94 crore,

said in a statement.

The company’s share price rose to a high of Rs 80 from Rs 76.20 at the previous close on BSE.

From January to March 2022, however, the company’s total revenue fell to Rs 534.64 crore from Rs 600.97 crore a year ago, PTI reported.

Total expenditure reduced to Rs 450.06 crore in the quarter under review, from Rs 535.32 crore in Jan-March 2021.

“The fourth quarter of FY22 was better due to the resumption of execution of some of our major hybrid revenue model (HAM) and engineering, procurement and construction (EPC) projects. strong backlog of Rs 84,000 million and healthy progress in key projects, we expect strong revenue performance over the coming quarters,” WEL Managing Director and CEO Ajay Hans said as quoted in the PTI report.

The government’s drive to improve and expand the infrastructure sector, particularly in the road and water sectors, should bode well for the industry, he said, adding that the pace activity within the industry, which had been affected by the pandemic and other factors, is picking up.

Industry margins are affected due to rising raw material prices, however, “we believe our cost optimization and project mix provide a hedge against inflationary pressures to a large extent,” added Hans. .

According to the statement, the company’s board has also approved a dividend of Rs 1.50 per share for the financial year 2021-22, PTI reported.

Part of the

Group, WEL, is an infrastructure development company focused on road, water and wastewater segments.