Welspun Enterprises Ltd

I am delighted to share that FY25 has been a pivotal year in your Company's journey, marked by the highest-ever consolidated revenue and EBITDA.

Dear Stakeholders,

It is my privilege to present the 31^st Annual Report of Welspun Enterprises Limited (WEL) for the financial year 2024-25. I am delighted to share that FY25 has been a pivotal year in your Company's journey, marked by the highest-ever consolidated revenue and EBITDA. Your Company's consolidated revenue grew 25% year-on-year to 3,584 Crore, while EBITDA rose 18% to 730 Crore, driven by robust top-line growth, healthy margins and improved operational efficiency. This performance underscores WEL's strong execution and focused strategy, which are key enablers of sustainable growth in a challenging market.

WEL maintains a healthy Balance Sheet with consolidated cash and cash equivalents of 1,155 Crore to support future growth. In line with our consistent track record of sharing profits, the Board has recommended a dividend of 3 per equity share, equivalent to 30% of the face value.

These milestones reflect the resilience of WEL's Unstoppable spirit, anchored in our values of Learning, Innovation, Trust & Endurance (LITE) and supported by a clear vision for the future.

To further strengthen our position in the advanced infrastructure segment, your Company increased its stake in Welspun Michigan Engineers Limited (WMEL) by 9.99% during the year, taking total ownership to over 60%. With deep expertise in tunnelling, pipeline rehabilitation, and pumping stations, WMEL is well-positioned to augment its capabilities in the specialized water infrastructure space. Further, recognizing the strong potential in the wastewater treatment space, WMEL has launched an innovative technology-based solution, SmartOps, aimed at rejuvenating and recycling wastewater, and is now exploring its application across sectors.

As part of our transformative growth agenda, your Company has strategically entered the specialized tunnelling segment, critical to sustainable urban water and wastewater infrastructure. During the year, WEL secured a landmark 1,989 Crore contract from BMC to design and construct an 8.5 km tertiary treated water tunnel in Mumbai, enabling large-scale wastewater reuse and contributing towards water circularity. On the projects front, I am delighted to share that your Company's prestigious Aunta Simaria Road Project, featuring India's widest extradosed cable-stayed bridge over the Ganga, has received its Provisional Certificate for Commercial Operation (PCOD). This engineering marvel directly connects Patna and Begusarai and significantly strengthens regional connectivity to spur economic growth. Your Company's ongoing infrastructure projects are progressing well, supported by strong execution across sites. At the Dharavi project, India's first multi-storied wastewater treatment plant, civil works for the Sequencing Batch Reactor and other components are advancing in line with scheduled timelines. The Bhandup Water Treatment Plant has secured all critical approvals, with construction expected to accelerate post-monsoon. In the Oil & Gas business, your Company is exploring cost-effective evacuation solutions for its discovered reserves. Further, as part of our cluster-oriented business strategy, we have secured a new block in the adjoining area that complements our existing blocks. Our plan is to develop all three blocks as a cluster to reduce costs and improve efficiency. WEL and WMEL continue to receive prestigious industry recognition for their excellence in project execution, management and HSE. WEL was honoured as the “Construction & Infrastructure Company of the Year” at the Construction Times Awards 2024, while WMEL was named the “Best Brand in Construction and Infrastructure Water Infrastructure” at the ET Now Infra Focus Awards 2024. Both companies also received multiple accolades from FICCI, ASSOCHAM, Water Digest, IndSTT and EPC World, among others, for their commitment to project excellence, safety and innovation.

Your Company has further strengthened its commitment to sustainability by establishing an Executive Sustainability Strategy Lab and launching a comprehensive ESG Roadmap, embedding sustainability as a core strategic priority. These efforts have delivered measurable outcomes, including the recycling 11,346 MT of construction waste, enhanced resource efficiency and reduced environmental impact. Looking ahead, we are targeting carbon neutrality by 2040 and are committed to significantly increasing diversity within our organization.

OUTLOOK

I am happy to share that our consolidated order book stands strong at over 14,300 Crore, a testament to the strength of our business, and see tremendous opportunity ahead across our core verticals and subsidiaries.

Backed by a strong balance sheet, healthy cash flows and an asset-light business approach, we are well-poised to capitalise on the opportunities in bulk water supply, sewage treatment and water transmission, which are sectors central to India's sustainable growth agenda and supported by progressive government policies.

As part of our transformative growth agenda, your Company has strategically entered the specialized tunnelling segment, critical to sustainable urban water and wastewater infrastructure.

Looking ahead, the strength and quality of our order book gives me confidence. These are not merely projects they are high-margin, return-accretive opportunities that will power our growth and enhance profitability in the years to come.

Guided by our 3G strategy of Growth, Governance and Green, we are committed not only to delivering business success but also to generating long-term impact for our partners, communities and the environment. Together, we are building more than infrastructure we are shaping a sustainable future.

ACKNOWLEDGMENTS

I would like to express my heartfelt gratitude to our shareholders for their unwavering trust and continued support. I also extend sincere thanks to our Board members for their insightful guidance, and to our management team, employees, bankers and partners for their dedication and invaluable contributions. It is through this collective effort that we have made significant progress. With your ongoing engagement and collaboration, I am confident we will achieve even greater milestones, driving sustained value creation for all our stakeholders.