Welspun Corp zooms over 4% to hit record high; check what is behind the stock surge

The stock drew heavy demand from buyers as the company, during the weekend, announced the receipt of two additional large orders in the USA, one each for HSAW and HFIW pipes, for the supply of coated pipes for natural gas pipeline projects. 

HSAW stands for Helical Submerged Arc Welding, and HFIW is an acronym for High Frequency Induction Welding.

With the addition of these two new orders, the value of the cumulative orders received by our USA plant to date in this Q3FY25 exceeds ₹7,000 crore, the company said. 

Welspun Corp added that execution of these orders will be during FY25 and FY26.

"Further, our outlook for the USA market remains extremely positive for the next couple of years, and Welspun is fully poised to benefit from more opportunities in the time to come," the company said.

Last month, Welspun Corp said it had bagged two new orders in the US worth ₹1,300 crore for supplying specialised pipes for natural gas pipeline projects.

It aims to execute the order for HSAW pipes in the financial year 2025-26, the company said in an exchange filing.

Part of the $5 billion Welspun World, Welspun Corp is primarily engaged in the business of the manufacture and distribution of steel and steel products.

For the September quarter (Q2 FY25), Welspun Corp reported around 27% fall in consolidated net profit at ₹282.96 crore, mainly on account of a fall in income.

It had posted ₹386.57 crore net profit for July-September 2023.

Total income declined to ₹3,364.23 crore from ₹4,161.41 crore logged in the second quarter last fiscal.

The board, Welspun Corp said, also approved several investment proposals in India and abroad worth over ₹2,000 crore.

It approved a proposal to increase ductile iron pipes capacity to 250 KMTPA from 150 KMTPA, along with setting up the 350 KMTPA LSAW (Longitudinal Submerged Arc Welding) pipes facility at an investment of up to $200 million (about ₹1,680 crore) in Saudi Arabia.