Welspun Corp shares gain after US arm wins record $412.5 million contract; Order book at new high

Shares of Welspun Corp gained in early trading on Friday, September 25, after the company said that its US-based wholly-owned subsidiary has secured the largest order in its history valued at approximately $412.5 million or ₹4,000 crore.

The company said Welspun Tubular LLC won its largest order ever in terms of volume, length and value, for the supply of high-frequency induction welded (HFIW) pipes.

These pipes will be manufactured at its newly-upgraded HFIW mill, with enhanced capabilities at Little Rock, US, Welspun Corp said in an exchange filing.

With this order, the company said its global order book stands at a record $4.7 billion or ₹45,000 crore, the highest in its history.

"This order underscores the scale, quality and execution capability of the company's operations and reinforces its long-term strategy of expanding global manufacturing capacity and deepening relationships with marquee international clients," the exchange filing stated.

Earlier this week, Welspun Corp had also bagged an order worth ₹2,000 crore from Saudi Aramco for the manufacture and supply of steel pipes.

At the beginning of this month, it inked an MoU with Perma-Pipe to set up pipe manufacturing and coating facilities in Jordan.

Welspun Corp reported its first quarter earnings in July.

Its net profit increased to ₹1,047 crore from ₹350 crore last year. Its profit on sale of shares of associate was at ₹548 crore compared to nil last year.

The company's revenue increased 15% in the June quarter to ₹4,081 crore compared to ₹3,551 crore in the previous year.

Is earnings before interest, taxes, depreciation and amortization (EBITDA) increased 32% to ₹692 crore from ₹525 crore and its margins expanded to 17% from 14.7% in the year-ago period.

Shares of Welspun Corp are trading 3% higher on Friday at ₹2,788.5, a new record high for the stock. With this, the stock has now extended its year-to-date advance to 250%.

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