Welspun Enterprises shares rally nearly 5% after company settles dispute with IOCL

The civil construction company had filed a suit before the Delhi High Court in 2018 against Indian Oil. The parties agreed to amicably settle the matter through mediation proceedings conducted by the Delhi High Court Mediation and Conciliation Centre. The company, in a stock exchange filing, said that the matter has now been settled.

Welspun Enterprises mentioned that, as per the terms of the settlement, IOCL will pay a principal amount of ₹15.96 crore along with an interest of ₹7.71 crore for the full and final settlement of all its claims related to the Panipat Naphtha Cracker Project. The company also mentioned in the release that the settlement amount, aggregating to ₹23.67 crore, will be paid in full on or before June 14, 2024.

Welspun Enterprises’ consolidated revenue from operations for the March quarter dropped nearly 3% to ₹821.11 crore compared to ₹845.08 crore in the same quarter of the preceding fiscal. The civil construction company’s net profit for the March quarter fell more than 45% to ₹77.67 crore compared to ₹142.41 crore in the year-ago period.

The company’s revenue from operations for the quarter ended March 31, 2024, increased more than 16% from ₹706.71 crore in the quarter ended December. The company’s net profit for the March quarter fell nearly 3% from ₹79.92 crore in the quarter ended December.

Welspun Enterprises revenue from operations for FY24 increased more than 4% to ₹2,872.28 crore compared to ₹2,758.19 crore in the preceding fiscal year. The company’s net profit for FY24 declined 56% to ₹319.4 crore from ₹726.06 crore in FY23.

Shares of Welspun Enterprises are trading at ₹458 apiece, up 3.41%, on the NSE at 3:15 pm.

To trade and invest in Welspun Enterprises shares, open a free demat account with Upstox