 "Welspun corporate office building is pictured in Mumbai")
Shares of Welspun Corp scaled a new peak at Rs 549.80 on the BSE in Thursday's intra-day deals on the back of company's strong Q2 performance and future growth plans.
At 10 AM, the stock was trading 5 per cent higher at Rs 548 on healthy volumes of around 87,000 shares as against the two-week average volume of around 1.33 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.1 per cent or 55 points at 65,735.
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The stock is currently on a nine-month winning streak since March 2023, having zoomed as much as 198 per cent during this period. In November alone, so far, the stock has rallied 29 per cent. In comparison, the Sensex has gained around 3 per cent so far this month.
The company had posted a consolidated net profit of Rs 386.59 crore for the quarter ended September 2023 as against a net loss of Rs 63.18 crore in the corresponding quarter a year ago. Total income grew almost 2-fold to Rs 4,161.41 crore from Rs 2,140.86 crore.
Meanwhile, the company on November 10 said its associate company East Pipes Integrated Company for Industry (EPIC) signed a contract with Saudi Aramco worth about Rs 1,000 crore for manufacturing and supply of large diameter steel pipes.
The total value of the order exceeds Saudi Riyal 440 million (about Rs 1,000 crore) inclusive of value added tax, Welspun Corp said in a statement.
Further, in a recent exchange filing, the company said as a part of ESG journey it entered into an arrangement for supply of renewable energy under Group Captive Structure with Mounting Renewable Power Limited (MRPL), a subsidiary of Welspun New Energy.
The company's board approved, after due evaluation of various proposals presented, an investment not exceeding Rs 44.25 crore holding around 21.54 per cent equity share capital in MRPL and remaining around 51 per cent and 27.46 per cent shareholding in MRPL will be with Welspun New Energy and another group captive power consumer viz.
Welspun Living.
MRPL, a Special Purpose Vehicle, will set up a 42 MW Renewable Energy Round-The-Clock (Re-RTC) project to generate energy from wind and solar for the company's Anjar operations at most competitive rates which will make the company's Anjar Unit about 55 per cent RE by the financial year 2026 with a reduction in the cost of power. It would be a significant step towards the Company's journey towards clean and renewable energy, the release stated.
That apart, on the back of the strong demand outlook and significant demand supply mismatch in smaller diameter segment, the company has decided to expand its DI Pipes capacity by 100 KMTPA in Anjar, which will take the total DI Pipes capacity to 500 KMTPA for an investment of Rs 300 crore.
