Latest News | Welspun Corp Q3 Profit Jumps to Rs 294 Cr; Company to Invest Rs 500 Cr in Middle East
Get latest articles and stories on Latest News at LatestLY. Welspun Corp Ltd (WCL) on Tuesday posted a multi-fold jump in its consolidated net profit to Rs 293.70 crore in the quarter ended December 2023.
New Delhi, Feb 6 (PTI) Welspun Corp Ltd (WCL) on Tuesday posted a multi-fold jump in its consolidated net profit to Rs 293.70 crore in the quarter ended December 2023.
It had reported a consolidated net profit of Rs 23.22 crore during the October-December period of preceding 2022-23 financial year, the company said in a regulatory filing.
The company's total income doubled to Rs 4,758.17 crore over Rs 2,410.33 crore in the same quarter a year ago.
Expenses were at Rs 4,438.79 crore as against Rs 2,386.80 crore in the third quarter of the last fiscal.
In a statement, B K Goenka, Chairman of Welspun Group, said, "Operational and financial performances continued to remain strong for Q3 and 9MFY24. As per our planned strategy, we have finalised our foray into the plastic pipes segment, which provides us with a huge opportunity to leverage Sintex brand value."
The company has also finalised an investment in ductile iron (DI) pipes in the Middle East region, he said.
According to the statement, the company's order book for line pipes in India and the US stands at Rs 7,200 crore.
The company's board also approved an investment not exceeding Rs 44.25 crore in a Special Purpose Vehicle (SPV) for the supply of 42 MW renewable energy on a round-the-clock (RE-RTC) basis at the most competitive rates with a reduction in the cost of power.
The company would hold a 21.54 per cent equity share capital of SPV viz. Mounting Renewable Power Ltd (MRPL).
The board has also given its approval for a capital expenditure of up to Rs 35 crore for land acquisition, bay at sub-station, erection of transmission line, inner connectivity ring changes etc. for transmission of RE power to Anjar facility in Gujarat.
Besides, the board has approved a plan to set up a DI pipes manufacturing facility in the Middle East region with an investment of around Rs 500 crore spread over the next four to six quarters. The investment will be made by the company/subsidiary through a combination of debt and equity. The plant is expected to commence commercial production by H1 CY2025 (the first half of the calendar year).
"Water infrastructure development has been a key focus both in India and the Middle East region. In India, our DI pipes business has been ramping up steadily and within a short span of time, we have established ourselves as a credible player. DI Pipes will continue to remain a strong focus area for us," Vipul Mathur, Managing Director and Chief Executive Officer of Welspun Corp, said.
Welspun Corp Ltd (WCL), the flagship firm of Welspun Group, is one of the largest manufacturers of large-diameter pipes globally and has established a global footprint across six continents and 50 countries.
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