Welspun posts net profit at Rs 385 crore in Sep quarter on robust demand

Indian pipe manufacturer Welspun Corp on Wednesday reported a profit for the second quarter compared with a year ago loss, driven by robust demand in its core steel segment.

The company's consolidated net profit stood at Rs 385 crore ($46.24 million) in July-September, against a loss of 565.9 million rupees in the year ago period, it said in an exchange filing.

Welspun, which also operates in the United States and Saudi Arabia, said its revenue from operations surged more than two-fold to Rs 4,059 crore, backed by its core steel products.

However, expenses also rose, jumping 73% on year owing to a 41% expansion in key raw material costs.

Analysts had flagged strong demand for steel during the September quarter, driven by construction and infrastructure-related activities.

India in September imposed anti-dumping duty on steel wheels produced in China to promote domestic manufacturing and stabilise prices, after steel imports from China hit a five-year high in April-August.

Shares of Welspun closed up 1.03% at 457 rupees before the results, taking total gains this year to 90.9%.

($1 = 83.2540 Indian rupees)

 

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)