Share prices of a leading manufacturer of large diameter pipes globally hit an all-time high of Rs. 596.4 on Thursday and have gained over 9 percent so far this week.
With a market cap of Rs. 15,212 crore, Welspun Corp Limited (WCL) has given over 89 percent returns in the past six months and nearly 157 percent in the last one year. So far, the company has given over 1.6 percent of returns in 2024.
Welspun Corp Limited announced a receipt of cumulative orders by an associate company, East Pipes Integrated Company for Industry (EPIC) in the Kingdom of Saudi Arabia (KSA) exceeding approximately Rs. 3,000 crores.
According to the details of the major orders mentioned in the filings on the stock exchanges, order received for the supply of steel pipes to Saline Water Conversion Corporation (SWCC) worth over Rs. 2,200 crores inclusive of value-added tax for manufacturing and supply of steel pipes, with a contract duration of 30 months.
Another order is for the manufacturing and supply of steel pipes to Saudi Arabian Oil Co. (Aramco) with a value of more than Rs. 339 crore including VAT, with a contract duration of 8 months.
The final order is for double jointing of steel pipes to Aramco worth over Rs. 377 crore including VAT and the duration of this contract is 20 months.
EPIC is Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes and its fully integrated manufacturing facilities and high-quality remain well-placed to secure more projects in the water, oil and gas sectors.
Welspun World is a globally recognised leader in the business of line pipes, home textiles, infrastructure, warehousing, oil & gas, advanced textiles and flooring solutions.
Welspun Corp Limited is a flagship company of global conglomerate Welspun World and undertakes large diameter pipes projects including the deepest, heaviest and longest pipelines around the world.
The company’s revenue from operations on a year-on-year basis grew by 107 percent from Rs. 4,069 crore in June 2023 quarter to Rs. 4,059 crore in September 2023 quarter, accompanied by a 711.86 percent increase in net profit from Rs. 168 crore in June 2023 quarter to Rs. 387 crore in September 2023 quarter.
As of September 2023, FIIs hold 9.42 percent of the shares, whereas DIIs hold 11.53 percent of the shares in the company, aggregating to 20.95 percent of the institutional holdings.
WCL acquired specified assets from ABG Shipyard in 2022 and completed the acquisition of the Plastic Products business of Sintex BAPL, in the first quarter of 2023.
Written by Shivani Singh
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