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Welspun Corp slumps after deferment of order for USA facility

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Welspun Corp hit a lower circuit limit of 5% at Rs 68.45 after the company said that one of the orders planned from the USA facility has been deferred.

The customer has communicated that owing to the unprecedented energy environment, execution of the order of 159 KMT slated for FY20-21 will be deferred for a period of nine months. Despite this deferment, the company's order book stands at approximately 1 million MT.

This deferment would have no financial impact on the company's committed costs as it is fully covered on the same contractually.

Further, the company has also been specifically reassured of honoring all the commitments by the customer, which is a profitable and financially solid midstream organization. The disclosure was made after trading hours on Friday, 20 March 2020.

The stock is down 59.30% in eleven consecutive sessions to its current market price of Rs 68.45 from its recent closing high of Rs 168.20 as on Thursday, 5 March 2020. The scrip hit its 52-week low at Rs 68.45 during intraday trade.

Welspun Corp's consolidated net profit surged 643% to Rs 223.48 crore on a 23.8% rise in net sales to Rs 2,844.67 crore in Q3 December 2019 over Q3 December 2018.

Welspun Corp is a welded line pipe manufacturing company engaged in offering solution in line pipes with a capacity to manufacture longitudinal submerge-arc welded (LSAW), spiral helical submerged arc welded (HSAW) and high frequency electric resistance welded (HFERW)/high frequency induction (HFI) electrical resistance welded (ERW) pipes.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 23 2020. 10:12 IST