Welspun Corp dips into red; posts Q2 net loss of Rs 33.64 cr

Steel pipes maker Welspun Corp today reported a consolidated net loss of Rs 33.64 crore for the quarter ended September 30, 2016, hit by a challenging business environment.
The company had clocked a net profit of Rs 88.15 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the company fell by 43 per cent to Rs 1,206.79 crore in July-September quarter this fiscal from Rs 2,132.86 crore during the same quarter in 2015-16.
Total expenses were, however lower at Rs 1,235.24 crore against Rs 1,980.35 crore during the period under review.
Welspun Group Chairman B K Goenka said: "Delays in a large project led to weak volumes in this quarter. However we maintain a positive outlook due to expected decision on some high profile projects in the next few quarters.

"While the business environment has been challenging, affecting realisation and profitability, we continue to focus on improving balance sheet, maintaining financial discipline and enhancing our technical and product capabilities."

The firm said its production and sales of pipes were down 37 per cent and 44 per cent year-on-year (y-o-y), respectively during the September quarter.
The company's current pipe order book stands at 883 kilo tonnes (Rs 5,200 crore).
Welspun Corp's net debt stood at Rs 802.3 crore at the end of September 2016 against Rs 915.5 crore as on June 2016 and Rs 1,362.2 crore on March 2016.
As on September 30, 2016, the firm's cash and cash equivalents stood at Rs 1,271.5 crore.

On outlook, Welspun Corp said: "Despite general slowdown in oil & gas sector, some large projects may soon get decided. We, owing to our technical superiority, have a good chance to get a fair share of these projects. This, coupled with buoyant domestic market, provides a positive long-term outlook."
Despite challenges in raw material availability, conducive regulatory environment coupled with higher volumes has benefitted Plate & Coil Mill operations and the firm maintains a positive outlook for this year, it added.
"Our Joint Venture company providing Concrete Weight Coating has started on a strong note by booking its maiden order from a renowned North American Oil & Gas major. We are enhancing pipe bending technology & coating operations to further strengthen our overall capabilities and value proposition to customers," the firm said.