Thank you, Hitesh, and welcome, everyone, to the call. We would like to thank Welspun Corp for giving 360 ONE Capital the opportunity to host this interaction today.

Without taking much time, I would now like to invite Mr. Goutam Chakraborty to introduce the management team.

Over to you, Goutam.

Thank you, Sailesh, and good afternoon to everyone. Welcome to Q4 and FY26 earnings call of Welspun Corp Limited.

On this forum today, we have Mr. Vipul Mathur, Managing Director and CEO; Mr.

Percy Birdy, Chief Financial Officer; and Mr. Yashovardhan Agarwal, Director - Sintex.

You all must have gone through the results and the investor presentation of the company, which are also available on the stock exchanges and on our website as well. During the discussion, we may be making references to this presentation, I request you to please refer to the safe harbor statement, which is there in our presentation.

As usual, we'll start the forum with the opening remarks by Mr. Mathur, and post that, we'll open the floor for the Q&A.

With that, let me hand over the floor to Mr. Mathur.

Over to you, sir.

Thank you, Goutam. A very good afternoon to everyone.

Let me welcome all of you for our Q4 and FY26 earning conference call. To start with, I would just like to highlight the key performance financial parameters for the quarter and the full financial year.

Post that, we can have a more elaborative, detailed interactive sessions, where I would be more than happy to answer any and every questions what you might have you might be having. The key highlights for this for Q4 and FY26 are as under.

Our revenue from operations for FY26 was almost close to ₹17,000 crore. Our EBITDA is close to 2,370-odd crores.

Our PAT is ₹1,613 crore, which is a 42% up on a Y-o-Y basis. Our order book currently stands at more than ₹25,000 crore, which is equivalent to $2.5 billion.

Welspun continue to be a net cash company, despite all the capexes what we are doing. I'm sure you would have seen our OCF and the free cash flow what we what we have generated over this year.

The improvements in our EBITDA margins, we have recorded a CAGR growth of 43% year-on-year basis. Our EBITDA margins have been in in excess of 14%, and our ROCE has been in excess has been around 22.3%.

If you recollect, friends, at the start of the year FY26, we had given a guidance of ₹17,000 crore of revenue and ₹2,200 crore of EBITDA. As against that, we have been able to maintain our revenue guidance of almost ₹17,000 crore and surpass the guidance, which as against ₹2,200 crore, it stands at ₹2,371 crore.

The third guidance what we had given was that we will maintain our ROCE in excess of 20%, and we have been able to achieve that. I'm also pleased to report, and I'm sure you have noticed, that we have been able to maintain our EBITDA growth and EBITDA margins.

These have been the key highlights, financial highlights for this particular financial year. The way the last year we had performed, we had seen a very strong tailwind in the businesses across all the geographies, especially in US, Saudi Middle East, and in India.

By our geographical positioning in all these three geographies, we have been able to make the most of it. As you are also aware that we have made significant investments, further investments in these geographies.

Looking at the current geopolitical situation, and looking at the situations that each country is now deriving for themselves, we see a very, very strong tailwind for the next few years in all the three geographies, especially US and the Middle East. Let me focus a lot more today on the growth part of it, and I would like to cover each and every continent just to bring in further clarity for all my friends here.

First and foremost, if you let's talk about the US, where we have a very significant, dominant presence. Today, the US oil and gas economy is seeing a sort of a paradigm shift.

Is seeing a paradigm shift where we are seeing the gas and oil, both of them, growing exponentially, resulting into a massive requirement for pipelines for the next couple of years, at least 5 to 7 years. The key economic drivers, the key drivers economic and business drivers for gas is the LNG exports.

Today, as you're aware, US has two or three very high producing basins, and Permian Basin to be the biggest among lot. There, while they are drilling for the oil, as they are generating or they are producing a lot of gas.

This gas needs to be transported to the Gulf Coast and then, in form of energy, in form of LNG, it is exported to the is being exported to the European and the Asian market. This value chain is so strong at this point in time because, on one side, we are seeing an access of gas availability at a very, very cheap price.

If you can see, the Henry Hub price is less is around $3, and the international price of LNG is hovering anything between $15 to $20. The arbitrage between $3 to $20 is giving a sufficient push for all the E&P companies or the midstream companies to create assets, build assets to transport this gas and monetize this event.

This is one of the key drivers which is defining the growth of demand for line pipes in America. The second key driver which is defining the growth and demand for the line pipes in America is the development of multiple AI data centers.

There's a huge capital investment, as you are as you are aware, which is happening all across America in terms of creating indigenous data centers. These data centers requires uninterrupted power.

They are power guzzlers. They can, and looking at the situation that the national grid reliability being poor, they are putting up independent power plants beside their data centers, and these power plants are gas-based power plants for which the gas need to be transported.

When the gas need to be transported, you require pipelines. With the upsurge of multiple data data centers which are happening in America, we are seeing a huge surge of pipelines coming up connecting this connecting the power center the power plants attached with these data centers.

This is the second growth driver currently which is happening. The third growth driver in the American market is also, after a long time, we are seeing the resurgence of oil.

Today, US is one of the largest producer of oil in the world. After having after factoring for their domestic consumptions, now they are into a surplus for exports.

We are seeing a phenomena of oil exports also coming into the international market, especially to the Europeans and the Asians market, as we are seeing the Russian oil and gas receding from the market. They seem to be capturing that particular market.

Both oil and gas, with the arbitrage what they have, currently their oil they produce oil around $40-odd, and with the pricing around in excess of $80, the economic arbitrage is, once again, allowing them to invest into the oil pipeline. This phenomena is happening after a long time.

The US demand drivers primarily are coming from three three factors: number one is because of number one is on account of LNG exports; number two, on account of oil; and number three, the demand which is coming up into the AI data centers, and which now in which we are also a part of the value chain. These three This is a sort of a paradigm shift.

This is a fundamental restructuring which has seems to be happening in in America, and we believe that this play is not a temporary play. Instead, it this play is going to be for the next 5 to 7 years' time.

We, as Welspun, have a major dominant presence in that particular economy. We currently enjoy more than 33% or 35% of market share.

We are seeing a lot of significant emergence of pipelines in, in the near future. Accordingly, as you are aware that we have made some more capital investment in terms of new plants, and I'm pleased to report that all our plants are almost booked till FY2028.

With the visibility which seems to be emerging, with the projects what we are seeing, we are more than confident that this order book will only significantly grow from where we currently stand. If I now move to the Middle East, some countries are working on energy security, and some countries are riding the wave of having economic benefit deriving out of this energy deficiency in the global market.

Today, Middle East is also one of the regions where there is a huge energy availability, and they are also in the process of monetizing it significantly. They are intending to diversify their portfolio.

They are intending to diversify their infrastructure in terms of producing more oil, more gas, and multiple points for evacuation. We have seen in the recent past that while they had sufficient oil, sufficient gas, but they were choked that they could not evacuate it.

I think so that learning has gone down deeply into the system, and just about every Middle East economy, oil and gas producing economy is now focusing on opening up their infrastructure segment and developing multiple evacuation points, which will also which will also require massive pipelines coming up in times to come. As Welspun, we have a dominant presence now in Middle East, especially in the in the Kingdom of Saudi Arabia.

Given the projections what we are seeing and given the information what we are getting from the ground, I think so this market looks extremely, extremely promising for us. On the On the Saudi Arabia On the Middle East side, as as oil and gas is critical, equally critical is the water sector for them.

They are investing heavily they have been investing heavily into the water infrastructure sector for the many, many years, and that goes unabated. We are seeing massive desalination projects still coming up on stream.

We are we are witnessing that multiple pipelines will be required, large-diameter multiple pipelines which will be required for transporting this desalinated water to the cities. On top of it, we are seeing, when this water will come to the cities, there would be a massive distribution network which has to be created in order to reach in order to ensure that this water reaches every household.

It is in this keeping this in view, the distribution network, friends, you are aware, we have invested into our company in a DI company. We are setting up a greenfield DIP project.

We expect to see the benefits of this distribution network, in which primarily the DI pipe is being used, to benefit out of the same. In the Middle East, it is not only about oil, gas, but it is equally important about water.

As your company has invested and have a absolutely local footprint now in place to capture our this upcoming opportunities. Coming back to India, which is the third geography where we have a significant presence, we have seen in the last two quarters a sort of a fairly muted growth for various reasons known to you.

We expect this situation to continue to prevail for certain times. We understand the country is facing will have will have some more different priorities at this point in time, and to that extent, we expect that, the growth here in India could still stay muted.

Nevertheless, having said that, India, as a country, will have to work around. They are working with respect to energy security.

We are there there will be a network of oil, there will be a network of gas, and there will be a network of CGD, which is the city gas distribution network which has to be built. The pace might slightly vary, but I don't expect that this things will come to a standstill.

We The feedback, the government intent, and the allocations what we are seeing is definitely supporting a sort of a a consistent growth rather than an exponential growth what we could have expected, but we see a sort of a consistent growth in all the three sectors: for the oil network, for the gas network, and for the CGD network. Having said that, the pipe the the water requirement in the country, the the investment in the water infrastructure in the country, we are very confident, will see a sort of an exponential rise because water again being a sort of a scarcity and required for massive irrigation purpose, we are seeing some very large projects which were announced the last year, they now being coming on stream in this financial year.

We see a growth coming up into the water sector where a lot of pipes large-diameter pipes will be required. We are seeing that even, we have seen that in the Jal the allocations under the Jal Jeevan Mission have been fairly decent.

We have seen that those the the allocations have started trickling down to the state governments. The things which were more or less standstill in the last two quarters, we have started seeing traction and movement around that, and I am expecting that, keeping water as a priority, the government is absolutely focused in terms of giving a further push to this particular sector.

I am sure that in, maybe one or two quarters could be slightly muted, but the H2 part of the year financial FY27 could see an acceleration once we have come out with this current geopolitical situation. Lastly, I also want to give you an update with respect to the projects what we have we are currently executing.

As you are aware, we are executing two major projects in Saudi Arabia: one, a large-diameter pipe plant, and another a small the ductile iron plant for water distribution. They have We have we are we are progressing well.

This geopolitical situation has not impacted the progress of this partic- of these projects for minor, there would have been some supply chain disruptions here and there, but largely things are absolutely on control in in under control, and we would see that all both these projects will come in stream in FY2027. We will see the economic benefit, the revenues, and the margins coming starting trickling in in FY2027 itself.

Likewise, as you're aware that we have invested we are investing into two assets in America: one large-diameter pipeline project pipe plant, which is LSAW, and also replacing our replacing replacing our capacity of existing small-diameter pipe plant. Both these projects are absolutely upon track.

One of them, which is the HFIW plant, will come in stream by by the end of Q1 of this financial year, and which is as per which is as absolutely as per the plan. Our large-diameter pipe plant, which is the LSAW plant, will also come up up, in in stream, in operations by the end of this by the end of this calendar year.

We will see both all these assets started giving us some upside and margin accretion in this financial year. The full impact, the full benefit of these pipes of these asset of these investments, we would start seeing in FY2028.

Keeping our business keeping the keeping our business in hand, which is almost $2.5 billion, keeping that keeping in view that these investments, which we have made in these two geographies, are coming on stream, keeping in view the underlining dynamics of tailwind into the oil, gas, and the water sector, the management is very we are very confident that we will be doing exceedingly well in FY2027, and accordingly, our very confidently we have given a guidance of a top line of ₹20,000 crore and an EBITDA of ₹2,850 crore, which is almost a 20% jump on a year-on-year basis. Friends, you will acknowledge and accept that in the challenging times, to make these commitments requires lot of conviction, and I'm pleased to say that, at Welspun, looking at our order book, looking at our executional capability, looking at the premium segments in which we operate at, looking considering that, our our reach our global reach with global customers, I am very confident that we will deliver, if not exceed, the guidance what we have given.

Thank you joining us for we I sincerely appreciate you hearing me out, and I'm sure that you could have multiple questions around that. With this, I would like to end my comments and open the floor for discussions for any question and answers.

Thank you.

Hi, sir. Congratulations for a good set of numbers.

Sir, if you could provide more color on the quality of the order book by region, I think that would be of great help. Sir, second, you indicated that we are completely booked until FY28, I think there's a good and a bad of it.

Good is probably we would have already contracted our EBITDA per ton would already be fixed. Given the macro is improving, how should we look at it?

Typically, if we had some capacity free, probably we could have asked for more profits on the same order. I'm not sure whether that's the right way to look at it, but would love to have your thoughts.

Third is, sir, you indicated on the water projects in Middle East. If you could highlight certain countries.

I just read about Jordan giving out a large order. I'm not sure whether we are there, but I presume we would be one of the beneficiaries over here.

I think these are three broader questions, sir, and yep, I'll adjust accordingly, sir.

Thank you, Ritesh. Thank you.

I think so these are good questions. First and foremost, your question with respect to the quality of order book.

I think so we have a strong order book at this point in time, which is almost close to $2.5 billion. It is spreaded over India as well as in US.

In India, if I just give you reference, we would be having close to 1.2 1.3 million tons of an order book at this point in time. Out of that, almost 2/3 would be out of US, 1/3 would be out of India.

This is a very, very high-quality order book. In terms of the margins, these are fantastic orders what we have.

Coming back to your question that while this is good, but also that have we overcommitted ourselves, and have we lost on the opportunity? My friend, the answer is no.

As I said, we are one of the most dominant player in both these geographies, especially in America. The quality of order book what we have is extremely good in comparison to what the others would be having.

Number three, we still have some capacities which are available on our large-diameter side of it. We have strategically kept that open, knowingly fully that there would be an opportunity which will come up, and we would be able to leverage upon that.

I'm very sure that even if we are saying that we are booked till FY28, we can still accommodate certain capacities in between if we can get even a better value-added orders. We have kept those flexibilities inbuilt into our system, and be rest assured that at Welspun, we will never let go a very profitable opportunity.

Number three, coming back to the water sector, water projects are mushrooming all across Middle East, especially in Saudi Arabia and all the neighboring countries as well, but Saudi Arabia taking the lead. We are seeing a massive growth, urban growth happening in that country, which requires massive water distribution requirement, and that is where we are seeing the play of DIP.

Once we come in stream during the course of this year, we will see a huge traction coming up around that. Also, countries like Iraq, countries like Jordan, they are also pushing their water infrastructure project.

We are participants in those particular projects. In some places, we are also in pole positions, and as and when they will materialize, we will keep you updated.

In terms of an opportunity, these are opportunities which are there, and we are present, and we are there in a pole position. I hope, Ritesh, that answers all the questions what you have raised.

Yes, sir. Sir, just a follow-up.

Sir, you emphasized a lot on quality of order book being extremely good. Sir, is it possible to put some quantification over here or some more qualitative remarks to appreciate the quality of order book?

Is it very large-dia pipes, or is there an element of coating, testing, which is there? Basically, the idea is to not look at it on a per kg basis to appreciate what you do better or what we have in better.

It will help us with that, sir.

Ritesh, all what we have is mostly large diameter primarily in the oil and gas space, right? If you see, especially if you want to see in US, I think so at this point in time, the entire order book what we have is for the gas space.

Today, all the pipes what we are producing either are being used for LNG exports, as I said earlier, or being used for carrying gas to powering the data centers. In these two segments, you deal with one of the top two or three players of the midstream companies in that economy, and we have a historical track record with them, and we have orders from them only.

We are playing with the premium customers in the premium space, and that is why I am saying that the quality of the order book is good, and that is giving us the confidence, Ritesh, to stick our neck out and give a clear-cut guidance even in these challenging environments, to give a clear guidance of more than 20% growth on a year-on-year basis.

Perfect, sir. I'll join back the queue.

All the very best. Thank you.

Thank you.

Thanks for the opportunity, sir. Am I audible?

Yes, please.

Yeah. Couple of questions, sir.

From our Middle East plants, are we exporting anything to nearby countries? If yes, then those shipments have experienced any delay?

The second one is that does the shipping costs increase, especially freight charges driven by the higher fuel and insurance cost?

Chetan, good morning. I think so, first and foremost, our Middle East plants are yet to are they're they are in the process of being commissioned, as I said.

They will come up in fully in operations by during this during this year, during the end of this year. The question of currently exporting from there is not there.

To your larger question that will those plants will also be exporting to, from from the mid to from Saudi Arabia, the answer is yes. As and when we will start our operations, our primarily our focus would be within Saudi Arabia, but that geopolitical positioning and the location enables us to look at the international market, export market from there.

We will definitely be reaching out to that. To your second question, yes, these there has been a supply chain disruptions which have been there.

We have seen the shipping cost going up. We we had but fortunately, all the contracts what we had, we were we were not impacted.

There was some minor aberration here and there, but largely we went ahead because we had long-term contracts in place, and all those contracts got honored. Largely, all what we have at this point in time, we did not get impacted because of the in increased cost of the shipping.

Yes, there has been a significant increase which has happened. The good part is that we did not get impacted in our existing orders.

In the future orders, what we are party of future projects what we are participating, accordingly they have been factored for.

Okay. Thank you, sir.

Last two questions, sir. Is there any hike in the industrial diesel cost and in absolute term, in percentage term?

I'm sorry?

Industrial diesel cost price. In

domestically?

Yeah.

We are all seeing that we are seeing that the way the prices are going at. Everyone is fully aware of that, Chetan.

There is a cost escalation which has happened. There's no doubt about it.

Most of our orders which are primarily export, it is not impacting too much. On the domestic orders, we are negotiating the contracts accordingly, factoring with the new diesel cost.

One last question, sir. In this quarter, there is no order book breakup according to volume is given in the presentation.

If you could guide on that. Hello?

Yeah. Thank you.

Our apology for this glitch.

Hello?

Yes. Chetan, did you get your answer?

Sir, one last question, sir, on the order book front only, that in this quarter there is no breakup regarding the order book, okay? If you could guide on that.

Chetan, we have given a sort of a consolidated order book. See, we are a global company.

Breaking it up into pieces and this and that, I think so may not be we can discuss offline. If you see, the consolidated book stands at around almost ₹25,000 crore.

Correct.

With almost 2/3, 1/3 breakup here between America and in India. Rest details, I'm sure that we can share with you offline.

Sir. Thank you.

That's it from my end.

Good afternoon, sir, and thank you for the opportunity. Sir, my first question pertains to this kind of the supply constraints you are projecting in the future and our capacity is coming.

Usually, during these times, many of the players try to secure the production capacity. Have we started to get the prior orders or people seeking the inquiry to book our upcoming capacity beforehand, given the waiting period is too long?

Good morning, Vikas. Good afternoon, Vikas.

You are referring this question is more

Saudi as well as US new capacities.

Correct. I think so we are gaining a lot of traction with respect to the new assets.

At least in America, at least I can tell you that we have not only started getting inquiries, but at the same time, we have started getting orders for our new plant what we are setting up there. I think so we are starting with a fairly healthy order book at this point in time with respect to that plant which is going to come up.

Also in case of Saudi, we have started seeing traction. A lot of inquiries have started coming to us, domestic inquiries starts coming to us.

I'm very sure that by the time the plant will get commissioned, before that in any case, we would have a significant order book even for our Saudi plant as well.

Understood, sir. Sir, my second questions pertains to our cash usage.

Given even in next year our guidance are super strong and the capex would be lower, we would end up generating more cash than what we can consume. What's the plan basically because these capacity would be coming just in on an immediate basis, probably we would not go for further expansion.

What we will do with the cash, because that would impact our ROEs as well?

I think so that's a fair point you are making, Vikas. Typically if you look at it, despite we have been into the capex mode for the last 1 year, right, we still have been generating sufficient free cash flow and from the business.

We will continue to generate sufficient cash in times to come as well,

right?

What we strongly believe, first and foremost, our focus right now is to see to it that all these plants come on stream as quickly as possible and in time where which we are pursuing, and we are confident that they will happen, number one. Number two, our priority would be book these plants to their brim.

Today, the type of tailwind, the type of the market dynamics what we are seeing, our second focus would definitely be around that we are able to leverage this particular situation, and which we are more than confident to do that. Once we are able to accomplish these two things, then only the question of cash generation will happen.

It is a question to be thought about. Is that cash generation going to happen?

The answer is yes. I guess it is few quarters away when this questions will become even more relevant, and I'm sure we will be able to give you a very clear-cut plan with respect to as to what are we going to do with that same.

Right now our focus happens to be absolutely bringing these projects into operations and number two, book in this asset with profitable orders. We are taking a very structured focused approach in that particular direction, but at the point in time when this questions will come up, we would be ready with an answer.

Understood, sir. If I may squeeze in one last question, if I may, sir.

Sure, no problem.

Yeah. Congratulations the team for a solid set of numbers.

My only question is on the

Pratik, may I just ask you to just level up your volume, please, a little bit?

Yeah. Sorry for that.

My question was on the long-term outlook. You mentioned multiple opportunity at the onset of the call in terms of data center, in terms of gas opportunity in the US, Middle East, etcetera.

In terms of slightly longer term, 5 to 7 years, this run rate which you're getting in terms of order inflow as well as on the growth side, do you reckon it is as a sustainable number? How should one read it from slightly longer-term point of view, considering you have the inquiries and the pipeline?

Pratik, let's see this issue in two context. Number one, in FY26, if all the companies in America can get a visibility and a confirmed order booking, forget about Welspun for a minute, apart from Welspun also, it is not that only I am booked, all others are also booked.

If you see in FY26, if all the companies can get a visibility for next 2 years or 3 years till end of FY28, that itself is a clear indicator as to what structural changes are happening on the ground, number one. Number two, as now things are getting more crystal clear, as we are seeing more clarity emerging that what type of data centers are coming up, number one; number two, what type of LNG possibility of LNG export which is going to happen; what type of oil and gas network is going to get created, right?

It is giving us a very clear sense that this is there for the long haul. See, we are local there.

We are plugged. We are in the market.

We are servicing those customers. We are interacting with them on day-to-day basis.

They are discussing their plans, that this is what they intend to do. Right?

When we are hearing their plans, and when we are seeing the micro and the macro indicators, that LNG at $3 versus $18, oil $40 versus $100, I think so these are no-brainers that this investment, or and the surge in data centers, they are talking of more than 5,000 data centers in America. This surge, these indicators are very clear that this is a fundamental shift which seems to be happening on the ground, and it is there for a long haul.

We are fairly optimistic that this is not a short-term issue. This is a long-term structural changes which are seems to be happening in that particular country.

Got it. Many congratulations, once again.

All the best.

Thank you, Pratik.

Hi team. Thanks a lot for the opportunity.

Just a couple of questions from my end. Firstly, on the plastic pipe division, how much we've been able to do in FY26 and what are our targets going ahead?

Similarly for water tanks.

Can I ask Yash, please, if you can address that? Yash?

Repeat that, sorry.

Sneha, can you just repeat that question?

We have

Yashovardhan there to answer this, please. Repeat the question?

Sure. What I wanted to understand is how has your plastic pipe division fared in FY26, along with water tanks, and what is the outlook for coming years for both these businesses?

Pipes we started in 10 states. Acceptance of the product has been very successful.

Learning additions were there, but now the product has started moving, now we're in the channel-building phase. For tanks, we had a very strong year.

Unfortunately, March with the LPG because our tanks is a little difficult for storing, so that primary what we saw in pipes did not happen in tanks as much in all across all players. Now that we're aggressively following the economy segment in tanks, we are very bullish on the growth of tanks as well.

In case of numbers, could you quantify that how much was FY26 and where are we headed for the next 2 to 3 years?

We're looking at double-digit growth in tanks. Besides pipes, but in tanks we're looking at double-digit growth every year.

FY26 revenues for both the division would have been?

Existing businesses would have been, sorry, come Sneha,

I think so it was around it was in excess of something like ₹600

6 600 6 yeah, 610.

Yeah, 600-odd crore rupees. The way things are looking at towards at this point in time, I think so what Yash is trying to say, both the pipe business and the tank business are showing strong tractions.

There in the last one or two quarter one quarter, you have seen that there has been a fund crunch in the market because both are directly related to the water sector. We have seen a little bit of a slowdown there, but the things seems to be coming back on the track.

We are very sure that both these segments will kick-start sooner rather than later. We are hoping that we should be touching a sort of a revenue and margin growth in excess of 10% in both the cases.

Understood. Secondly on the DI pipes business, how much government allocations have we started seeing?

I know you had mentioned a couple of quarters that you are seeing some amount of excitement and some payments starting. If you could give more current flavor on it?

See,

on the DI side of the business, the conditions have been tough. There are two reasons for that: there has been an overcapacity issue, number one; there also has been an issue of payments not coming in.

At least one part is getting addressed. The payments have started coming in.

We are seeing payments coming into multiple states. We are seeing an uptick.

We have already started seeing an uptick coming into that particular business, that's one. The number two, the issue with respect to overcapacity still remains, there's no doubt about that.

We would have to find alternate ways and means that how are we going to use our capacities. We, being on the port, export seems to be one of our target areas that and we are going to grow that vertical exponentially.

Understood that. Lastly,

Hi, sir. Thank you for the opportunity, and congratulations on good set of numbers.

My first question is basically when do you say no to a particular project?

That's a good question. I don't have an answer to that, to be honest.

You're stumping me. Why would I say no to a project?

No,

what are the threshold ROCE levels for a particular

No, you're talking of a capital project or a project where we're bidding?

Where you are bidding, yeah.

See, that is Bhavsar, that is a factor of what is that particular project, number one; what is the competitive landscape around it, number two; how does that fit into our scheme of things in a way that we want to be a niche player. We are not a commodity player.

We don't want to play on the lower end of the commodities, especially when I'm talking of the large-diameter pipes for oil and gas sector. I think so all these considerations goes into our evaluation before we take a call.

There's no one simple answer to that, what is the threshold. I think so we see it from multiple facets, multiple points of view, and then we take a call, Bhavsar.

Got it. Also, sir, just wanted to understand how do we, over year-over-year, target our profitability because there is a lot of lumpiness in your profitability, right?

Just wanted to understand, going ahead in future, how do we plan to target this, are there specific projects that we are looking at? Will there be a continuous lumpiness in your profitability at least in carbon line pipes business?

I think so if you see the performance over the last 4 years, there has been a continuous growth. I will not agree that there has been a lumpiness or we have decelerated from there.

I think so we have only grown. If you see our performance of the last 4 years, our EBITDAs are in a CAGR of 43%, number one, right?

That's beside the point. I think so, as I said, that we are present into quality markets.

We deal with premium customers into the premium segment. This is a ethos under which we work at, and I think so the entire infrastructure, the entire facilities have been created and built around this ethos only.

Right? I'm sure that if there is a demand in the market, which seems to be there, the underlining tailwind which we are talking about, which is there and which is likely to be there, I think so we should be able to protect, if not exceed, or improve our margins.

Right.

Sir, do you see a bigger shift in spreads and in coming 2, 3 years or 5 years?

Sir, it is a same question, just a continuation. I'll just end it with this.

Sir, just wanted to understand how do you see if there will be an sudden jump in profitability over the next 2 to 3 years, and what would be the drivers for the jump?

No, I have already told you that, see, jump in profitability is a factor of what quality of business you are participating into. As I said, the market is buoyant, the demand is strong, we are with the right set of customers, we have a right product to offer, we play in the niche market, we have been delivering profitability.

There is no reason why anything should change from here on.

Perfect, sir. Thank you so much for answering my questions.

Thank you.

Thank you, sir, for the opportunity, and congratulations for the good set of numbers. Am I audible?

Yes, you are, Netra. Good afternoon.

Yeah.

Thank you, sir. Sir, you just announced two large plants which are going to commission in this year.

Just would like to know what would be the timeline and what the target starting and for the completion of this target, as that would be the new capacity which is going to line up in this. That is my first question.

Second question, we have seen slight reduction in the volumes of SS pipes. To further segment-wise capacity, can you please explain, and if you can please include the Sintex revenue also for the forward guidance, that would be grateful.

As also, we have seen that the input cost has also slightly increased due to the freight charges. The first question that remained, that is a new large project that you announced that is going to start in this year.

Netra, as I said, all these projects, the two large projects which we are currently executing in Saudi Arabia as well as in US are on track. There have been some minor supply chain disruptions here and there, but they are not going to impact the project per se.

As we said, that they will all come in stream within this financial year straightaway. We are absolutely clear and confident, and we see no reason that why they should not be coming.

I also mentioned that both these projects, not only they will come on stream, but they would start also contributing to our top line and to our bottom line and the margins in this financial year. That is the endeavor we are trying to do, and I'm very confident that we should be able to do that.

Now, whether it will be for one quarter, two quarter, 3 month, 2 month, that's something which we have to see. For sure, all these assets will now come on stream in this financial year straight.

We will see some impact of this, some uplift coming from that, and the full impact coming in the next financial year. To your question that volume reduction in SS, there has been some slowness in the European market.

We were one of the large exporters of SS pipe to the European market. Because of this CBAM and all the prevailing conditions and the supply chain what has disrupted over the last one more quarter, there has been a reduction in the volume.

The good part is that, while this could be a sort of a temporary phenomena, part of the good part is that the domestic market has bounced back very significantly. The demand in the domestic market, especially in the power sector, is coming out to be very, very strong.

We are one of the largest player in the power sector from our stainless steel perspective, and we are very confident that this domestic demand which has bounced back, we will see a lot of traction coming into our stainless steel business. To your third question about Sintex, that's a fair point.

I think so from next quarter onwards, we'll start giving guidance about Sintex, and we can start bringing a little more clarity about the volumes and everything. That's a fair point, and that's a fair ask, and I think so we will do that.

With respect to the input cost, your last question, input cost is a pass-through cost to us. The input cost have gone up because on account of freight, on account of fuel, on account of something here and there.

These are correspondingly, they are already factored into our top line, they are a pass-through. I don't think so there's too much to read around the input cost because they generally get embedded into our top line and they are pass-through to our customers either way.

Sir. Thank you, sir.

Got the clarification.

Thank you.

I'll be

Good afternoon, sir. Sir, couple of questions.

One is on the share of profit and loss from associates, that also has grown pretty strong in this quarter as well as for the year. What is the sort of the expectation for that in this financial year?

I'm assuming that most of the capacities would be running at 100%. Can we see any growth coming from this line item?

Related question to that is, because we have so much cash, is there an opportunity to increase our stake in these associates and JVs?

Sarvesh, to your first question, our JV, which is East Pipes, is doing exceedingly well, and this is clearly getting reflected into their performance and in their profitability. That is what you're seeing as a profit of JV coming into as a line item into our balance sheet as well.

They're into the significant pole position in the Saudi market. Today, they are the leaders into the Saudi market at this point in time, and they're doing phenomenally and exceedingly well out there.

I'm sure that their performance will continue to be like this in quarters and years to come because of the underlining demand which is there in the water sector in the Saudi market. If that continues to happen, I'm sure that our profit of shares will also see the similar returns, if not better.

Coming to your second question with respect to the cash and the opportunity what we have and we are going to increase our stake, I think so these are certain decisions at the board level. It is much above my pay grade, to be honest.

I think so these are some strategic questions which we keep on evaluating at our board level. At this point in time, we are not contemplating anything.

As I said that, these opportunities including increasing, decreasing, new M&As, this, that, these are all very strategic questions, and which we have a very, very collaborative, empowered, and a very professional board. These are the questions which we keep on discussing there, Sailesh Sarvesh.

Okay. Secondly on the net working capital days, I think this has primarily come down because of the advances from the customers, and maybe this is mostly happening because in the US people are paying us advances to book the capacities.

How do we look into this situation, and how do we extrapolate this going forward because one of the drivers for our ROCE is this negative working capital days that we have now achieved?

Percy, can you?

Sure. Sarvesh, yes, the market is so buoyant that there are advances coming from the customers on many of the orders.

Looking at the outlook in US, I think we will continue to get more and more orders, and where these type of advances will keep trickling in. We see that while the earlier advances will get utilized as we produce and we ship out, but we are hopeful that the newer orders will keep coming on the similar terms.

You can say this is likely to continue.

Okay. For this year guidance, how much have we assumed for the new capacity?

Sure. Okay.

Good afternoon, sir. Thanks for the opportunity, and congrats on great numbers.

Sir, my first question is regarding Welspun Mauritius has sold its 22% stake in EPIC to Welspun Pipes US, LLC for a total consideration of ₹2,500 crores. What was the rationale behind this internal restructuring, and how does the management plan to utilize the cash proceeds at the Mauritius entity level?

Anant, this is a this is a part of our restructuring exercises we which we are doing across all our entities. We are moving, this I, earlier if you see, this entity was sitting in in Mauritius, now it is sitting in US.

This is a part of our plan that we want to park these entities into high-growth areas, where we can we can achieve more flexibility in days to come, in times to come if we really want to do something around that. We felt that, it will be more prudent for us to, instead of keeping it under a Mauritius entity, it is more prudent to keep it under the US entity.

That's a part of the, that's a part of a normal restructuring so that, we are able to create values around it as and when an opportunity arises. It is only with that simple objective that we have been doing that and have executed that.

Right, sir. My second question is regarding this Indian players like Jindal SAW, Man Industries, and Ratnamani are increasingly looking and expanding into the Middle East market.

Given this rising competitive intensity, how do you view the demand outlook, pricing environment, and your competitive position in this region for the medium term?

We are also watching with equal curiosity at this point in time. I think so what you're saying is absolutely right.

Just about every other leading Indian manufacturer has shown their intent to be into that particular market, which reinforces two things: number one, that what we are telling you that there is a fundamental shift which has happened in those market, and there's a underlying demand that is getting revalidated. If everyone else is looking at, so that the story seems to be convincing, number one.

Number two, getting there, start operating, and leveraging is a little bit of a journey. I'm sure that we have also undergone that journey.

Everyone will have to undergo that particular journey. Let's not forget that Welspun Corp is in that particular market for the last 20 years.

We ventured into that market in 2004, and now for 22 years, we have been present into that particular market with direct foot on the ground for the last 14 years. These markets are good markets.

They are very profitable They are nice markets, but then you have to evolve into those markets. I'm sure all these companies, those who have shown their intent, they will eventually do that.

In a near term, while the competitive landscape will increase, but will it pose a real threat in absolutely a near term? I don't think so.

Nevertheless, we are evaluating that, we will watch it with carefully, and whatever necessarily we need to do, we will do that.

Sure, sir. Okay.

One last question, sir. We have reported a negative current tax of ₹85 crores during the quarter.

Is it because of some refund also, or what was the reason for this?

Percy? Anant, this negative current tax that you see for the current quarter, it's mainly coming from the US subsidiary that we have.

In Q4 of this year, that's in FY26, we have done capitalization substantial, and in US there is a 100% bonus tax depreciation. What happens is that the earlier 9 months, there would have been a current tax provided, but in fourth quarter, it gets reversed, and you will have a deferred tax expense coming in.

If you see both lines together, you will find that it gets normalized: current tax plus deferred tax.

Right, sir. Okay.

Yeah.

Thank you, friends. Thank you for joining us today afternoon for this interactive session and being on our FY Q4 and FY26 earning calls.

I'm sure that we have tried to answer most of the questions what you would have raised. Still, having said that, that if you still have any questions in your mind, any doubts, or any clarifications you need, you can get back to Mr.

Percy Birdy or to Goutam, and they will be more than accommodated in terms of answering that. Lastly, I want to say that these are very, very interesting times for your company.

This is clearly reflective into how we have performed in FY26, how we have given the guidance for FY27, and more importantly, how we are viewing FY28 in our internal thought process. I think so, friends, as I said, that with the expansions what we have done, the geographical positioning what we have done, I think so your company has positioned itself as a truly a global leader in all these three geographies.

I'm sure that the next couple of years are going to be very, very interesting and profitable for the organization. You have maintained your trust and confidence into us.

I request that you continue to do so. You have seen the reward our shareholders have seen, and I'm very sure that, with the type of governance, with the type of growth, with the type of geographical expansions what we are doing, we would be one of the key beneficiaries of being rerated, and I'm sure that everyone would get rewarded in the whole process.

Thank you for having joining this call, and look forward for interacting with you early next quarter, please. Thanks a lot.

Bye.