Welspun Corp Profit Jumps 47% to Rs 248 Cr, Line Pipe Order Book at Rs 5,710 Cr

New Delhi, Aug 7 (PTI) Welspun Corp Ltd (WCL) on Wednesday posted a 47 per cent increase in net profit to Rs 247.94 crore during June quarter, mainly on account of reduced expenses.

It had reported a net profit of Rs 168.45 crore during the April-June period of preceding 2023-24 fiscal, the company said in an exchange filing.

However, the company witnessed a fall in its total income to Rs 3,179.67 crore from Rs 4,118.78 crore recorded in the year-ago quarter.

Welspun Corp managed to reduce its expenses to Rs 2,914.50 crore from Rs 3,878.67 crore year on year.

In a seprate statement, B K Goenka, Chairman, Welspun Group, said: "I am happy to share that our Q1FY25 performance has been stable and satisfactory and in line with the guidance for FY25. This has been possible due to consistent ramp up in our new businesses driven by DI Pipes divisions."

The Sintex business has been growing at a faster rate than the market growth rate as focus remains on strengthening distribution channel and new product launch, he said.

Sintex-BAPL Limited, the wholly owned subsidiary of Welspun Corp Limited, has decided to acquire 100 per cent of the equity shares and non-cumulative redeemable preference shares of Weetek Plastics Pvt Ltd (WPPL) and subscribe to a certain number of Optionally Convertible Debentures (OCDS) to be issued by WPPL, in each case subject to completion of certain conditions precedent and closing conditions as per the Securities Purchase and Subscription Agreement dated August 7.

The purchase price for the securities and the subscription price for the OCDS will be determined at closing based on the enterprise value of WPPL at Rs 85 crore and thereafter subject to certain adjustments (including on account of outstanding debt of WPPL) as set out under the SPSA.

WPPL is into manufacturing of plastic pipes and post transaction, WPPL will become a wholly owned step-down subsidiary of WCL.

The company further said it has an order book for 497 kilo metric tonnes (KMT) of line pine valuing Rs 5,710 crore, and Rs 2,495 crore worth for 300 KMT ductile iron (DI) pipes.

The company has an orderbook of Rs 303 crore for 6,791 KMT bars and pipes.

In the oil and gas segment, WCL produced API X65 grade ERW (Electric resistance welded) pipes for transportation of gaseous hydrogen, becoming the first Indian pipe mill to achieve the feat.

Welspun Corp Ltd (WCL), the flagship firm of Welspun Group, is one of the largest manufacturers of large-diameter pipes globally and has established a global footprint across six continents and 50 countries.

The board of the company also approved "acquisition of 100 per cent of the securities issued by Weetek Plastic Private Limited (WPPL) from the current shareholders of WPPL and subscription to a certain number Optionally Convertible Debentures to be determined at or prior to closing to be issued by WPPL, each by a subsidiary of Welspun Corp Ltd (company).