Welspun Corp Q2 Results: Profit falls 27% to Rs 283 cr; board approves over Rs 2,000 cr investments

Welspun Corp on Friday reported around 27 per cent fall in consolidated net profit at Rs 282.96 crore for September quarter, mainly on account of fall in income. It had posted Rs 386.57 crore net profit for July-September 2023, the company said in an exchange filing.

Total income declined to Rs 3,364.23 crore from Rs 4,161.41 crore in the second quarter last fiscal.

Expenses were at Rs 3,074.90 crore as against Rs 3,820.59 crore a year ago.

The board also approved several investment proposals in India and abroad worth over Rs 2,000 crore.

It approved a proposal to increase ductile iron pipes capacity to 250 KMTPA from 150 KMTPA, along with setting up the 350 KMTPA LSAW (Longitudinal Submerged Arc Welding) pipes facility at investment of up to USD 200 million (about Rs 1,680 crore) in Saudi Arabia.

This will be funded through debt of up to USD 140 million and balance will be through internal accruals of the company. The plants are expected to be operational in April 2026. Further, the board gave nod to a proposal to increased HSAW (Helical Submerged Arc Welding) pipes capacity in Bhopal by 60 kilo metric tonne per annum (KMTPA) to 365 KMTPA by May-June 2025 at an investment of Rs 52 crore. It also approved new DRI (direct reduced iron) plant at Anjar with a capacity of 255 KMTPA along with TMT epoxy coating plant, at an investment of up to Rs 301 crore.

The project is expected to be operational in April 2026. This will be funded through debt of up to Rs 211 crore and balance will be through internal accruals.

The company board also approved capital expenditure for setting up of two rooftop solar power plants in its Bhopal and Mandya pipe manufacturing plants.

The total cost of setting up these solar plants will be Rs 11.07 crore .

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