Welspun Enterprises up for 11th straight trading day post Q4 results

The stock hit a new high of Rs 202, rallied 32% from Rs 153 on May 9, 2018, as compared to 2.4% decline in the S&P BSE Sensex.

Shares of Welspun Enterprises were trading higher for the 11th straight session, rising 5% to Rs 202 per share on the BSE after the company reported a nearly four-fold jump in its consolidated net profit at Rs 253 million in March quarter. It had profit of Rs 67 million in the same quarter last fiscal.

The stock of construction & engineering company was trading at its new high rallying 32% from Rs 153 on May 9, 2018. On comparison, the S&P BSE Sensex has dipped 2.4% during the same period.

Total income during the quarter under review, rose more than double to Rs 4,319 million against Rs 2,142 million in the corresponding quarter of previous fiscal.

Commenting on the developments, Mr. B. K. Goenka, Chairman, Welspun Group said, “FY18 has been a remarkable year for Welspun Enterprises with strong operational and financial improvement. This has been the result of our focussed approach to infrastructure and particularly, HAM road projects. Our strong order book provides visibility of doubling revenues each year for the next two years, creating long-term value for our stakeholders.”

Welspun Enterprises current order book (incl. L1) at Rs 55 billion with Hybrid Annuity Model (HAM) portfolio of 6 projects

Currently, there are close to 45 HAM projects of the National Highway Authority of India (NHAI), with a total project cost of Rs 450 billion, open for bidding.

Welspun Enterprises said it is targeting to bid for around 30 of these projects aggregate value close to Rs 330 billion, with a total length of almost 1,400 km in the current quarter. WEL will continue to selectively bid for HAM projects, and participate in the Bharatmala programme of NHAI.

The Company has currently submitted bids for 2 such projects, totalling almost Rs 20 billion, which are yet to be opened. This is in addition to the L-1 bidder status in one project as already stated, it added.

At 10:46 am; the stock was trading 3% higher at Rs 198 on the BSE, as compared to 0.39% rise in the S&P BSE Sensex. A combined 786,409 shares changed hands on the counter on the BSE and NSE so far.