Welspun Corp share hits 52-week high on securing its single largest order
- Welspun Corp received the single largest order in the US for the delivery of pipes valued at Rs 5000 crore
- The company's consolidated net profit fell 70.21% to Rs 61.38 crore in Q3 FY22
- The company's order book (excluding Saudi) stands at 704,000 MT worth Rs 10,500 crore
Welspun Corp shares rose 14.04% to Rs 238.05 and touched a 52-week high after the steel product producer received the single largest order in the United States for the delivery of pipes valued at Rs 5000 crore or more (estimated).
The contract calls for the supply of 325,000 MT of large diameter coated pipes for delivering natural gas from the Permian Basin to Houston.
The pipes for the order will be manufactured in the company's Little Rock factory in the United States over a 12-month period beginning in the second half of FY23.
Vipul Mathur, managing director and chief executive officer of Welspun Corp said, “We are delighted to win the single largest order in the history of our company. Our deep understanding of customer needs, quality orientation, and impeccable execution track record coupled with world-class technology and innovation are what differentiate us. Our pan-global order book and successive wins in a highly competitive environment validate our global leadership position in this market segment."
He further said, "We are confident that given the prevailing high energy prices and increasing demand scenario, further opportunities are likely to arise over the mid-to-long term in both the Global and the US market, and we would see more opportunities being converted to business, enabling a healthy and profitable order book at Welspun Corp over the next few years.”
The company's order book (excluding Saudi) stands at 704,000 MT worth Rs 10,500 crore. In the previous month, the stock has gained 11.88%, surpassing the benchmark Nifty 50 index, which has lost 5.6%. Welspun Corp is a one-stop-shop that offers complete pipe solutions.
In Q3 FY22, the company's consolidated net profit fell 70.21% to Rs 61.38 crore, owing to a 5.3% drop in revenue from operations to Rs 1240.95 crore compared to Q3 FY21.