Welspun Corp June-qtr net loss at Rs 9.5 crore

Compnay's total production and sales were down 17% and 1% respectively

Pipes manufacturer Welspun Corp on Thursday logged a consolidated net loss of Rs 9.45 crore in the June quarter against a net profit of Rs 104.4 crore in the same period last financial year.

However, it recorded a 3% growth in income from operations at Rs 1,556.4 crore.

Welspun Group Chairman B K Goenka attributed the poor show to "the turmoil in the energy markets during second half of 2015-16 that affected the margins."

But he was quick to add that the company has a healthy orderbook of 9,58,000 tonnes or worth Rs 5,500 crore.

Pipes production (ex-Saudi Arabia) was down 13% but sales were up 4%.

Total production and sales were down 17% and 1% respectively.

During the quarter, the company brought down its net debt to Rs 915.5 crore from Rs 1,357.8 crore, while gross debt also decreased to Rs 2,366.3 crore from Rs 2,644 crore.

The company's cash balance rose to Rs 1,450.9 crore from Rs 1,286.2 crore at the end of the reporting period.

On the business outlook, he said the company remains positive on the long-term, though the volatility in energy markets has led to some large projects getting delayed. Rising competition also makes the near-term business environment challenging.

On the positive side, opening up of new markets and strong domestic linepipe demand provides an upside, Goenka said.