28 29 30 31 01 02 03
Economic Events
list Construction Spending (MoM)
list ISM Manufacturing
list Berger Paints | Berger Paints | Cummins India | Cummins India
list Issue Open : Vishal Fabrics

Welspun Corp surges on healthy order book for pipe business

Capital Market/ 14:23 , Feb 15, 2013

Welspun Corp surged 3.22% to Rs 89.70 at 14:24 IST on BSE after the company said at the time of announcement of Q3 results on Thursday, 14 February 2013, that the outlook for the company's pipe business remains positive due to healthy order book.

Meanwhile, the BSE Sensex was down 67.02 points or 0.34% at 19,430.16.

On BSE, 3.74 lakh shares were traded in the counter as against average daily volume of 2.33 lakh shares in the past one quarter.

The stock hit a high of Rs 93 and a low of Rs 86 so far during the day.

The company has equity capital of Rs 113.95 crore. Face value per share is Rs 5.

Welspun Corp reported consolidated net loss of Rs 80.59 crore for Q3 December 2012, higher than net loss of Rs 70.20 crore in Q3 December 2011. Net sales rose 15.6% to Rs 2851.88 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results after market hours on Thursday, 14 February 2013.

Welspun Corp's consolidated net debt stood at Rs 3572.90 crore as on 31 December 2012, higher than Rs 3450.20 crore as on 30 September 2012. Net worth of the company was at Rs 4891.40 crore as on 31 December 2012, resulting in net debt-equity of 73%, Welspun Corp said.

The order book of the company's pipe and plate business stood at Rs 7600 crore as on 31 December 2012, comprising of 1,072K MT of pipes and 49K MT of external plates (internal plate orders of 62K MT). The infrastructure business has a cumulative current order book position of Rs 4131.90 crore which includes order book of Rs 366.80 crore of Welspun Projects and Rs 3765.10 crore of Leighton Welspun Contractors, Welspun Corp said.

The ERW mill in Little Rock has completed construction and trial runs are under progress. The plant has received API certification and secured orders as well, Welspun Corp said.

With regard to future business outlook, Welspun Corp said that the outlook for the pipe business remains positive despite overall challenges in the global economy. With the discovery of shale formations across various geographies, drilling activity for technically recoverable shale gas has picked up across continents, with the United States leading the way with superior technological advances in unconventional drilling methods. This will lead to an increased demand for pipes in North America, and the company is well poised to capitalize on this by having world class HSAW and ERW facilities in the United States, Welspun Corp said. The company also sees good potential in other regions such as Latin America, Africa and Asia driven by strong growth in energy and oil demand.

Welspun Corp said that the company's plates, DRI (Maxsteel) and infra businesses continue to face challenges due to overall weak demand along with subdued activity in infra and steel manufacturing businesses.

Commenting on the company's Q3 results, Mr. B. K. Goenka, Chairman, Welspun Corp said: The pipes business overall is going through a challenging period. Having said that, the outlook remains positive as the company has a healthy order book. With improving horizontal drilling technology, one should not be surprised to see higher drilling activity outside of North America which will lead to an increase in the demand for pipes. With tremendous development activities in US leading to it becoming self reliant on energy in the next few years, countries like Canada which have been dominant supplier of Oil and Gas to US are exploring to export their products to the Asian countries. This potentially can lead to development of substantial increase in demand for pipes. Welspun remains in a strong position with its global facilities to capitalize on this changing phenomenon.

Welspun Corp is a one-stop service provider offering complete pipe solution with a capability to manufacture line pipes ranging from half inch to 121 inches, along with specialized coating, double jointing and bending.


Rate This Article Rate 1 Rate 2 Rate 3 Rate 4 Rate 5

Recent News Videos