A leading global manufacturer of large-diameter pipes, renowned for its expertise in energy infrastructure, has clinched significant international contracts. The company’s latest triumph involves securing orders worth Rs. 3,000 crore from US clients for coated pipes.
Share Price Movement
The share price of Welspun Corp Limited went up 3.05 percent to Rs. 760 per share on Monday, an increase from its previous close of Rs. 737.50 per share. The market capitalisation now stands at approximately Rs. 18,933 crore as of February 17, 2025.
Order Update
Welspun is pleased to announce the receipt of new orders in the USA, including two large orders for HSAW pipes and additional orders for HFIW pipes, valued at approximately Rs 3,000 crore.
These orders are primarily for the supply of coated pipes for natural gas pipeline projects, with execution planned largely for FY26 and FY27. These wins continue to reinforce Welspun’s leading and dominant market share in the USA oil and gas transmission space, and the company’s outlook for the USA market remains positive for the next few years.
With the addition of these new orders, the value of Welspun’s consolidated order book now stands at approximately Rs 18,000 crore. This accomplishment highlights the company’s growing influence and strong presence in the industry, setting the stage for continued success and growth in the years to come.
Q3 Financial Highlights
In Q3FY25, revenue stood at Rs. 3,614 crore, declining 23.9 percent YoY from Rs. 4,750 crore in Q3FY24 but increasing 9.5 percent QoQ from Rs. 3,302 crore in Q2FY25. Profit surged 128.6 percent YoY to Rs. 672 crore from Rs. 294 crore in Q3FY24 and rose 137.4 percent QoQ from Rs. 283 crore in Q2FY25, reflecting strong profitability growth despite a revenue contraction.
Competitors
Welspun Corp operates in the steel and pipe manufacturing sector, competing with major players like JSW Steel, Tata Steel, and Jindal Steel and Power Limited. Other notable competitors include APL Apollo Tubes, Surya Roshni, and Technocraft Industries, which operate in overlapping industrial segments.
Welspun Corp is currently trading at a P/E of 22.88, which is above the industry P/E of 18.38.
Market Outlook
India’s steel industry is on track for strong growth, with domestic demand expected to rise by 9-10% in FY25. Consumption is increasing, supported by investments from global and domestic players. The government’s policies, including the PLI scheme, are driving self-reliance and modernisation. With India’s abundant iron ore reserves and low-cost manpower, the sector remains highly competitive. As consolidation continues and global participation rises, the industry is set for sustained expansion, reinforcing its role in the global steel market.
Written By Fazal Ul Vahab C H
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