Welspun Corp Ltd (WCL) reported a 47 percent increase in net profit to ₹247.94 crore for the June quarter, driven primarily by reduced expenses. In comparison, the company had a net profit of ₹168.45 crore during the same period last year.
Total income, however, fell to ₹3,179.67 crore from ₹4,118.78 crore in the previous year. WCL successfully reduced its expenses to ₹2,914.50 crore from ₹3,878.67 crore year-on-year.
Chairman B K Goenka expressed satisfaction with the Q1FY25 performance, noting it aligned with FY25 guidance, thanks to growth in new businesses, particularly the DI Pipes division. The Sintex business has outpaced market growth due to strengthened distribution channels and new product launches.
In other developments, Sintex-BAPL Ltd, a wholly-owned subsidiary of Welspun Corp, plans to acquire 100 percent of Weetek Plastics Pvt Ltd (WPPL) equity shares and non-cumulative redeemable preference shares, subject to certain conditions. WPPL, which manufactures plastic pipes, will become a wholly owned step-down subsidiary of WCL.
Welspun Corp also reported an order book of 497 kilometric tonnes (KMT) of line pipes worth ₹5,710 crore, and ₹2,495 crore for 300 KMT of ductile iron (DI) pipes. Additionally, the company holds an order book of ₹303 crore for 6,791 KMT of bars and pipes.
In the oil and gas sector, WCL has produced API X65 grade ERW (Electric Resistance Welded) pipes for transporting gaseous hydrogen, marking a milestone as the first Indian pipe mill to achieve this.
WCL, the flagship company of the Welspun Group, is a leading global manufacturer of large-diameter pipes, with operations across six continents and 50 countries. The board also approved the acquisition of WPPL’s securities and subscription to Optionally Convertible Debentures, with details to be finalized at or before closing.
