Prime Highlights :
- The company said its order book, at nearly ₹25,750 crore, is the strongest in its history, with execution spread across the next two financial years.
- Management said the company started the financial year on a strong footing, posting its highest-ever quarterly operating profit and a stronger balance sheet.
Key Facts :
- Welspun Corp is a manufacturer of line pipes and related infrastructure products, with facilities in India and the United States.
- Net profit for the quarter rose threefold, helped by a one-time gain from the sale of shares in an associate company.
Background :
Welspun Corp shares climbed as much as four per cent in early trade this week after the company announced a new order for supplying coated line pipes from its manufacturing facility in Little Rock, in the United States. The order is valued at approximately ₹960 crore.
With this addition, the company’s consolidated order book now stands at nearly ₹25,750 crore, its strongest in history. The company stated that this reflects robust revenue visibility and strong capacity utilisation across its manufacturing units in India and the United States. It added that the order book will be executed across the next two financial years, supporting long-term growth and expanding its presence in the global pipeline infrastructure market.
The stock is also reacting to the company’s first-quarter earnings, released after market hours last week. Consolidated revenue rose nearly fifteen per cent year-on-year, while operating profit increased by close to thirty-two per cent. Operating margin improved sharply compared with both the previous year and the previous quarter.
Net profit surged threefold, aided by a large one-time gain from the sale of shares in an associate company. Profit from joint ventures and associates also grew.
Company management said the year began on a strong footing, with the highest-ever quarterly operating profit and a stronger balance sheet. Annualised return on capital employed exceeded 23 per cent, and the company reported an improved net cash position despite continued capital spending. Expansion projects in Saudi Arabia and the United States remain on schedule.
Shares have eased from opening highs but remain higher on the day, having already doubled in value so far this year.
