Shares of Welspun Corp Ltd. plummeted by nearly 3% after touching a day’s high of Rs 662 on 25 July, despite the company announcing an order from the Middle East for LSAW pipes, coated bends, and bare ones.
The new order increases the company’s total line pipe orders in India and the US to Rs 1,202 crore since the last update on 30 May. These orders will be executed during FY25 and FY26, according to the filings on stock exchanges.
During the last month, the company announced that its Saudi Arabian associate firm signed contracts with Aramco worth amounting to Rs 3,670 crore.
The contracts were with East Pipes Integrated Company for Industry (EPIC). The contract duration with Aramco is 19 months.
In May, the firm projected revenue of Rs 17,000 crore for FY 2024-25 following its presentation of Q4 results. This is 3.3% less than Rs 17,582 crore reported as revenue in FY 2024.
EBITDA is anticipated to drop from Rs 1,804 crore to Rs 1,700 crore in FY 2024. Whereas, the EBITDA margin for the fourth quarter decreased from 10.3% last year to 7.4%.
The December quarter reported an EBITDA margin of 9.7%. Net profit is projected to grow by 20% due to lower finance costs, higher other income, and reduced taxes.
At 11:25 AM, the shares of Welspun Corp Ltd. were trading 2.90% lower at Rs 649.50 on BSE.
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