Welspun Corp see's bigger pipeline

Welspun Corp is currently the top gainer on the BSE. The stock price is up over 10% at Rs.107.45 with an intra day high at Rs.110.25. Volumes have jumped up to over 9 lakh shares being traded today compared to some 2 lakh shares on a two-week average.

The company announced yesterday evening that it had won an export order from the US, for supply of pipelines. The size of the order is pegged at Rs.1400 crore. The order execution is expected to begin from early 2016, around January and to be completed by early to mid-2017.

In an interview on TV, the company’s MD stated that he expects the company to see money coming in from this from Q1FY17. With this deal, the company’s order book currently stands at over 1040 KMTs, worth Rs.6400 crore.

The company had posted a strong earning in Q2FY16 with consolidated net profit rising over 19 times from Rs.5 crore to Rs.101 crore (YoY). Total income had gone up more slower – up 4% at Rs.2503 crore. What really helped was the tight leash on costs – as a percentage of total income, it was at 92% v/s 96% (YoY). Its HI1FY16 net profit at Rs.117 crore has already surpassed FY15 net profit of Rs.69 crore.