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Profitability has not taken hit, have healthy order backlog of Rs 8,400 cr, says Welspun Enterprises

Welspun Enterprises posted a mixed Q4 earnings. The revenue is up 20 percent but higher taxes have hit the bottom line this quarter. Further, margins have also contracted for the company. Sandeep Garg, MD & CEO of the company, said, “FY21, the year gone by had its own challenges so we had a challenge in terms of the Q1, which was practically a wash out due to COVID. We lost nearly Rs 350 crore of revenues in Q1 itself. More a revenue perspective it has been a difficult year.”

Welspun Enterprises posted a mixed Q4 earnings. The revenue is up 20 percent but higher taxes have hit the bottom line this quarter. Further, margins have also contracted for the company.
Sandeep Garg, MD & CEO of the company, said, “FY21, the year gone by had its own challenges so we had a challenge in terms of the Q1, which was practically a washout due to COVID. We lost nearly Rs 350 crore of revenues in Q1 itself. More a revenue perspective it has been a difficult year.”
“We have been able to maintain our operating EBITDA level. In Q4, we had operating EBITDA of almost 14 percent as against operating EBITDA of Q3, which was 11 percent. So profitability has not taken a hit,” he added.
On orderbook, Garg said, “We remain very confident about our future because our order backlog is now very healthy. We have an order backlog of about Rs 8,400 crore. This gives us clear visibility of revenues for next 2-3 years.”
He added, “We expect one-third of this revenue to be liquidated as the situation being conducive to do the business.”
On loss of revenues because of COVID second wave, he said, “In our business, there is no loss of revenue it gets deferred to the next quarter. There is definitely an impact of COVID second wave but that is a lot less than what it was in Q1 of FY21.”
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