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Welspun Enterprises Profit Plummets 65%

4 Feb

Summary

Welspun Enterprises net profit fell 65.6% to ₹26.7 crore.
Consolidated revenue declined 12.2% to ₹787 crore.
EBITDA margin improved to 19.6% despite revenue drop.

Welspun Enterprises experienced a significant downturn in its third-quarter financial performance. The company's consolidated net profit plummeted by 65.6% compared to the previous year, settling at ₹26.7 crore. Revenue for the same period contracted by 12.2%, totaling ₹787 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) saw a modest decline of 2%, reaching ₹154.2 crore.

Despite the reduced revenue and EBITDA, Welspun Enterprises demonstrated an improvement in its operational efficiency. The EBITDA margin expanded to 19.6% during the quarter, up from 17.6% in the corresponding period last year. This suggests enhanced cost management in relation to revenue generation.

In a contrasting performance, Welspun Corp reported robust results for its second quarter. The company announced a 53.2% year-on-year surge in consolidated net profit to ₹439 crore, with revenue climbing 32.5% to ₹4,373 crore. Welspun Corp also disclosed plans for strategic acquisitions and international investment, including increasing its stake in Welspun Specialty Solutions and establishing a subsidiary in Dubai.

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