India's pipe manufacturer Welspun posts Q2 profit on robust demand

Welspun

08/11/2023 10:51

BENGALURU, Nov 8 (Reuters) - Indian pipe manufacturer
Welspun Corp  WGSR.NS  on Wednesday reported a profit for the
second quarter compared with a year ago loss, driven by robust
demand in its core steel segment.
    The company's consolidated net profit stood at 3.85 billion
rupees ($46.24 million) in July-September, against a loss of
565.9 million rupees in the year ago period, it said in an
exchange filing.
    Welspun, which also operates in the United States and Saudi
Arabia, said its revenue from operations surged more than
two-fold to 40.59 billion rupees, backed by its core steel
products.
    However, expenses also rose, jumping 73% on year owing to a
41% expansion in key raw material costs. 
    Analysts had flagged strong demand for steel during the
September quarter, driven by construction and
infrastructure-related activities.
    India in September imposed anti-dumping duty on steel wheels
produced in China to promote domestic manufacturing and
stabilise prices, after steel imports from China hit a
five-year high in April-August.
    Shares of Welspun closed up 1.03% at 457 rupees before the
results, taking total gains this year to 90.9%. 


($1 = 83.2540 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))