Welspun Corp Ltd's in-house subsidiary EPIC (East Pipes Integrated Company for Industry) inked a series of deals exceeding ₹3,670 crore with Aramco, Saudi Arabia's oil giant, for steel pipe supplies, as per Welspun’s release in an exchange filing.
"We are pleased to inform you that our associate company East Pipes Integrated Company for Industry (EPIC), Saudi Arabia’s leading manufacturer of HSAW (Helical Submerged Arc Welded) Pipes, today announced Multi Contracts sign off with Saudi Arabian Oil Co. (Aramco) with value exceeding SAR 1.65 billion (approx. ~₹3,670 crores) inclusive of value added tax for manufacturing and supply of steel pipes," Welspun states.
Shares of Welspun surged as much as 6.2% to ₹556.15 apiece on BSE today after the announcement of multiple contracts with Aramco.
The contracts span 19 months, with financial impacts hitting between Q4 of FY 2024-25 and the last quarter of FY 2025-26, as per Welspun release in an exchange filing.
"The financial impact of the contracts will be reflected from 4th Quarter of financial year 2024/2025 to 4th Quarter of financial year 2025/ 2026," Welspun adds.
Welspun Corp Ltd celebrated a 20% increase in its consolidated net profit, reaching ₹287.28 crore in the March quarter of FY24, fuelled by elevated income levels. This marks a significant jump from the ₹240.08 crore net profit recorded in the corresponding period last year, as per the company's filing with the exchange.
Total income for Q4FY24 climbed to ₹4,543.70 crore, up from ₹4,132.38 crore in Q4FY23. Meanwhile, expenses stood at ₹4,292.37 crore in FY24's last quarter compared to ₹3,835.55 crore a year earlier. The company's board also proposed a dividend of ₹5 per share, affirming its financial strength and performance.
"Recommended an equity dividend at the rate of 100 % (i.e. Rs. 5/- per share) on 261,666,895 Equity Shares of Rs.5/- each fully paid-up, aggregating to Rs. 1,308,33,475/-," the company states.
Welspun Corp is projecting a revenue of ₹17,000 crore for the upcoming financial year, marking a 3.3% decrease from the previous fiscal's ₹17,582 crore. Similarly, the company foresees a decline in EBITDA to ₹1,700 crore, compared to ₹1,804 crore in FY24. The company is poised to maintain its return on capital employed (RoCE) at a steady 20% for FY2025, mirroring its performance in FY24.
