Welspun Corp shares hit record high as US plant bags new orders

Welspun Corp shares have rallied nearly 50 percent since the start of the year.

Shares of Welspun Corp surged as much as 4.5 percent to hit a fresh record high of Rs 824.45 on December 9 after the company announced it has bagged two large orders each for the supply of HSAW-coated pipes for Natural Gas Pipeline Projects in the US. These new orders were secured by the company's US plant, taking the cumulative value of orders received by the unit till Q3 FY25 so far to over Rs 7,000 crore.

The execution of these orders is slated for FY25 and FY26. "These achievements reinforce our dominant market share in the US oil and gas transmission sector and reflect our strong position in the industry," the company said in a regulatory filing. "With an extremely positive outlook for the US market, Welspun is well-positioned to capitalise on future opportunities," it added.

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Back in October, the company won another major order in the US worth Rs 2,400 crore.

The steel, sponge iron, and pig iron manufacturer reported a net profit of Rs 287 crore for the September quarter, marking a 26.3 percent decline from the Rs 386.57 crore that it reported in the same period last year. The drag in profit was attributed to lower revenue and external market challenges.

Welspun's consolidated revenue for the July-September quarter stood at Rs 3,364 crore, an 18.6 percent decline from Rs 4,059.45 crore in the corresponding quarter of the previous fiscal.

At about 9:30 am, shares of the company were trading at Rs 812, higher by 3 percent from the last close on the NSE. Welspun Corp shares have rallied nearly 50 percent since the start of the year.

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