Welspun Corp Bags New Line Pipe Orders Worth ₹2,039 Crore

22 Mar 2024 , 01:32 PM

Welspun Corp announced on Friday, March 22, that it has secured line pipe orders in both India and the US, with a combined value of ₹2,039 Crore since its last disclosure on February 6, 2024.

According to a filing with the stock exchange, the company highlighted that the new orders in the US not only ensure its business continuity until the second quarter of the financial year 2025 but also reaffirm its leading position in the US onshore gas transmission sector.

The company further stated, “Additionally, the orders in India, including one for suppliers to the USA offshore, validate our technical expertise and the trust our customers place in us to execute critical projects, particularly in the challenging and demanding Gulf of Mexico.”

These orders are expected to be executed in the financial year 2025.

Percy Birdy, Chief Financial Officer of Welspun, expressed confidence that the company is on track to surpass its financial year 2024 guidance, targeting revenue of around ₹15,000 Crore and EBITDA of ₹1,500 Crore.

Welspun Corp, known for manufacturing steel pipes, tubes, and bars, plans to broaden its product portfolio to include plastic pipes, leveraging the Sintex brand and distribution network.

In January, its associate company, East Pipes Integrated Company for Industry (EPIC), secured orders in Saudi Arabia worth ₹3,000 Crore. Among these, an order worth ₹2,200 Crore was received from the Saline Water Conversion Corporation (SWCC) for manufacturing and supplying steel pipes. The order is scheduled to be completed within 39 months, according to a stock exchange filing by Welspun Corp.

The financial impact of this contract will be reflected from the first quarter of the financial year 2025 to the second quarter of the financial year 2027, the company stated.

On March 22, Welspun Corp shares were trading 2.46% higher at ₹537.05 apiece at 11:50 am. The stock has witnessed an increase of 38.12% in the last six months and 169.56% in the past year.