Welspun Corp shares gain over 4% after winning new order worth ₹960 crore to supply coated line pipes

Shares of Welspun Corp gained as much as 4% in early trade on Monday, July 27, after the company said it won a new order for the supply of coated line pipes from its manufacturing facility at Little Rock, US, for approximately ₹960 crore. The stock is also reacting to its June quarter results that were reported after market hours on Friday.

With this addition, its consolidated order book stands at approximately ₹25,750 crore, the company said in an exchange filing. It added that this is the strongest orderbook in its history and reaffirmed its robust revenue visibility and capacity utilization across their manufacturing assets in both India and the US.

Welspun Corp added that the order book is scheduled for execution over FY27 and FY28 and provides long-term growth visibility and underscores the company's expanding footprint in the global pipeline infrastructure market.

Welspun Corp reported its first quarter earnings last week. Its consolidated revenue from operations increased 14.9% to ₹4,081.1 crore from ₹3,551.5 crore in the previous year. Meanwhile, its earnings before interest, taxes, depreciation and amortization increased 31.8% to ₹692 crore from ₹525 crore last year.

Its operating margin expanded to 17% from 14.8% in the year-ago period and from 11.7% sequentially. Its other expenses were up 4.7% at ₹744.2 crore but declined to 18% of revenue from 20% in the previous year.

Welspun Corp's net profit jumped 200% to ₹1,047.9 crore from ₹349.2 crore in the previous year. This was aided by an exceptional gain of ₹548 crore from the sale of shares in an associate, compared with no such gain in the year-ago period.

Its share of profit from joint ventures and associates was up 48.7% at ₹72.8 crore from ₹49 crore in the first quarter last fiscal.

Welspun Corp's management said it started the financial year 2027 on a strong footing, delivering its highest-ever quarterly EBITDA as it further strengthened its balance sheet.

Its annualized return on capital employed (ROCE) was over 23% in the quarter, while its net cash position improved even as it incurred ₹834 crore of capital expenditure.

The company also said its strategic expansion projects in Saudi Arabia and the US remained on track for commissioning within the ongoing fiscal.

Shares of Welspun Corp have cooled off from opening highs but are trading 2% higher on Monday at ₹1,625.7. The stock has already doubled in value this year, having gained 103% so far.

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