India's Welspun Corp Q1 profit rises on higher demand for line pipes (updated)

Welspun

04/08/2023 14:14

(Adds earnings details, guidance in paragraphs 3-4, 6-8)
       BENGALURU, Aug 4 (Reuters) - Indian pipe manufacturer
Welspun Corporation  WGSR.NS  reported a jump in first-quarter
profit on Friday, aided by a strong demand for its line and
stainless steel pipes. 
    The company's consolidated net profit rose to 1.65 billion
rupees ($19.93 million) from 41.1 million rupees a year earlier.
    The company said it maintained a healthy order book for line
pipes amid a favourable environment for oil and gas capex. 
        Sales of line pipes surged more than 89% year-on-year,
while the pending order book was valued at 86.75 billion rupees,
the company said in an 
    exchange filing
    . Additionally, sales volumes for stainless steel pipes and
bars nearly doubled.
  
    The company, which also operates in the United States and
Saudi Arabia, said its revenue from operations more than tripled
to 40.69 billion rupees. The total expenses came in at 38.79
billion rupees, as input costs nearly doubled. 
    Welspun expects a top line of 150 billion rupees, a growth
of about 50%, in the fiscal year 2024, and sees earnings before
interest, taxes, depreciation, and amortization (EBITDA) jump
about 90% to 15 billion rupees. 
        On the international business front, the company expects
strong demand for its helical submerged arc welded (HSAW) pipes
to continue in the U.S. market. It also sees significant demand
in Saudi Arabia from investments being made in water
desalination projects, according to the filing. 
  
    Separately, Welspun said its net debt was reduced by 3.03
billion rupees to 8.35 billion rupees in the current quarter.
    Welspun shares rose as much as 4.4% to a near 15-year high
after the results but closed down 2.8%.
    

($1 = 82.8100 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru; editing by Eileen
Soreng)
 ((Dimpal.Gulwani@thomsonreuters.com;))