Welspun Corp Ltd (WCL) on Wednesday posted a consolidated net profit of Rs 385 crore for the July-September quarter on the back of higher revenue and a reduction in debt. The company had clocked a Rs 52 loss during the July-September period of the 2022-23 fiscal, WCL said in a statement.
Its revenue from operations surged to Rs 4,059.45 crore from Rs 1,963 crore in the year-ago quarter.
B. K. Goenka, the Chairman of Welspun Group, said, "Our performance has further strengthened in the quarter gone by despite various challenges in the global macro-economic scenario. The Q2 and H1 FY24 performance has raised the bar for the rest of FY24.''
Strong operational performance helped in sharp reduction in our debt level, thereby strengthening the balance sheet further, he said.
While the performance of the Pipe Solutions vertical has been steady backed by strong execution capabilities, the performance of the building material segment has been improving gradually, Goenka said.
The consolidated net debt came down to Rs 315 crore as of September 30 from Rs 1,138 as of March 31, 2023.
The company's sales volume of line pipe businesses in India and the US for the first half of FY24 rose 57 per cent year-on-year (YoY). The order book for line pipes in India and US stands at Rs 8,000 crore.
"Our associate Company, EPIC in Saudi Arabia has a confirmed order book exceeding 2 years. Execution of recent Aramco order of SAR (Saudi Riyal) 1.8 billion has started," it said.
During the first half of FY24, stainless steel bars sales volume rose by more than 3x YoY to 8,373 metric tonnes while pipes and tubes sales volume grew by 46 per cent YoY to about 2,484 MT.
Export market looks promising especially in Australia, South East Asia, Middle East etc.
Welspun Corp said it recently got an order of around 61,000 MT of bare pipes and bends for offshore production and transportation of gas in Middle East and its order book remains strong at 370 KMT (kilo metric tonne).