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  5. Welspun Corp up 3% after Saudi arm EPIC, wins order worth ₹525 crore

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Welspun Corp up 3% after Saudi arm EPIC, wins order worth ₹525 crore

Upstox
By Upstox News Desk

2 min read | Updated on August 07, 2024, 18:57 IST

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SUMMARY

Welspun Corp shares were trading higher by 3% after the company announced that its Saudi associate company, East Pipes Integrated Company for Industry (EPIC) signed multiple contracts with EPC contractors worth ₹525 crore. EPIC is a leading producer of HSAW pipes and won orders for the manufacturing and supply of steel pipes and coating.

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Welspun Corp up 3% after Saudi arm EPIC, wins order worth ₹525 crore.

Welspun Corp up 3% after Saudi arm EPIC, wins order worth ₹525 crore.

Welspun Corp announced on Wednesday that its associate company East Pipes Integrated Company for Industry (EPIC) won contracts worth ₹525 crore. EPIC is Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes and the company signed off multiple contracts with engineering, procurement, and construction (EPC) contractors for the manufacturing and supply of steel pipes and coating. The duration of the contract is 24 months.

Following the announcement, shares of Welspun Corp climbed over 3% to trade at ₹653 per share.

The company reported that EPIC has fully integrated manufacturing facilities and has previously executed mega orders in a timely manner. Further, Welspun Corp stated that the financial impact of the contract will be reflected in Q4 of FY25 and will carry on till Q3 of FY27.

Last month, the company announced that it had agreed to invest in Bhargavi Renewable (BRPL), a subsidiary of Welspun Renewable Energy (WREPL). The company will invest a sum not exceeding ₹3.50 crore and will hold up to 22.67% equity share capital in BRPL. The company proposed to enter into a Power Purchase Agreement for the supply of renewable energy for a period of 25 years. Welspun Corp stated that it would pay an interest-free security deposit of ₹1.85 crore

In Q4FY24, Welspun Corp reported a 13.55% year-on-year (YoY) rise in net profit to ₹268 crore. The company’s total consolidated income grew by 9.97% YoY to ₹4,544 crore. Welspun Corp’s reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a 14.49% YoY decline to ₹413 crore.

The company’s board of directors will hold a meeting on August 7, 2024, to consider and approve the financial statements of the company for the quarter ended June 30, 2024.

Shares of the company have risen by nearly 14% since the beginning of the year. The stock has gained over 101% in the past year.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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