Welspun Corp jumps 4% after company wins orders worth ₹872 crore

Shares of Welspun Corp rose nearly 4% on Monday after the company announced the receipt of multiple line pipe orders, both in India and the USA, cumulatively valued at about ₹872 crore since its last disclosure made on March 22, 2024.

The company said in an exchange filing that among these orders, one is for supply of concrete coated (longitudinal-seam submerged arc welding) LSAW pipes and bends for a critical oil transportation project in the middle east. The line pipes shall be used for extreme sour service application, it said. These orders will be executed in fiscal year 2025, the company said.

Welspun Corp is the flagship company of Welspun World, involved in the manufacturing of large diameter pipes, steel billets, TMT (thermo-mechanically treated) rebars, ductile iron (DI) pipes, stainless steel pipes, and tubes and bars. The company has manufacturing facilities in Anjar (Gujarat), Bhopal (Madhya Pradesh), Mandya (Karnataka) and Jhagadia (Gujarat) in India. Overseas, the firm has a manufacturing presence in Little Rock, Arkansas, USA.

For the third quarter of fiscal year 2024, Welspun Corp announced a 98% year-over-year (y-o-y) growth in its operating revenue at ₹4,750 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 170% y-o-y to ₹471 crore while net profit jumped by more than 10 times to ₹292 crore.

Welspun Corp said its net debt reduced to ₹503 crore at the end of December 2023.

The company said during the earnings announcement that its foray into plastic pipes segment provides a huge opportunity to Sintex to leverage its brand value, optimise its distribution channel and rationalise its logistics cost, thereby charting out a strong growth outlook and further strengthening its position into the business-to-consumer (B2C) segment.

Shares of the company have lost over 3% since the beginning of the year. The stock has gained over 150% in the last one year.