Welspun Corp first quarter consolidated earnings were marred by foreign exchange losses and provisions related to that.
Steel pipemaker Welspun Corp first quarter consolidated earnings were marred by foreign exchange losses and provisions related to that. The company’s consolidated net revenue for the April-June quarter rose marginally by 5 percent to Rs 2675.69 crore and reported a net loss of Rs 59.43 crore against a net profit of Rs 7.47 crore in a year ago quarter.
“If you knockoff some of the unrelated business and if you knockoff some of the foreign exchange provisions that was created mark to market (MTM), the operating numbers are very strong, in fact better than our expectations,” Akhil Jindal, Director, Welspun Group told CNBC-TV18.
The company’s consolidated operational EBITDA rose 9 percent on year and 39 percent on quarter to Rs 360.9 crore in June quarter.
Jindal stressed that unfortunately the company was affected by the foreign exchange provisions. “I am repeating the word these are foreign exchange provisions which have no direct bearing on the cash loss or anything,” he said.
The company reported total forex loss of Rs 204.5 crore in first quarter. The company had made forex provision of Rs 163.9 crore during the quarter.
The stock got beaten on Wednesday, crashing 16 percent in early trade to touch close to 10-year low of Rs 28.95.