Welspun Corp’s arm bags orders worth ₹3,000 cr; stock hits record high

Shares of Welspun Corp Ltd, one of the leading manufacturers of line pipes globally, touched new all-time high on Thursday amid sustained rally for the last four sessions. The stock got a boost today after its Saudi Arabia-based associate company, East Pipes Integrated Company for Industry (EPIC) bagged cumulative orders worth Saudi riyal (SAR) 1.32 billion (around ₹3,000 crore).

Boosted by the order win, Welspun Corp extended its gaining streak for the fourth straight session and rose 6.6% to hit a new record high of ₹608.05 in intraday trade on Thursday. There was a surge in volume as 2.25 lakh shares changed hands over the counter compared with a two-week average of 0.83 lakh stocks.

With a market capitalisation of ₹15,674 crore, the midcap stock has risen 240% against its 52-week low of ₹177.85 touched on February 27, 2023. Welspun Corp shares have given a 165% return in one year, while it jumped 95% in six months and 12.5% in a month.

“Welspun Corp has announced that its associate company, EPIC in the Kingdom of Saudi Arabia (KSA) has received cumulative orders exceeding SAR 1.32 billion (₹3,000 crore) from its last announcement dated 10th November, 2023,” it says in a BSE filing on January 17.

EPIC is Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes. “Its fully integrated manufacturing facilities, impeccable track record of execution of mega orders, Quality and customer focused approach enables it to remain well-placed to secure further projects both in the Water and Oil & Gas sector and continue pioneering in supporting KSA’s strategic objectives under the Vision 2030,” the filing notes.

As per the exchange filing, EPIC received an order for the supply of steel pipes to Saline Water Conversion Corporation (SWCC) with value exceeding SAR 1 billion ₹2,200 crore), which included value added tax for manufacturing and supply of steel pipes. The financial impact of the above contract will be reflected in the first quarter of the financial year 2024-25 till the second quarter of FY27. The duration of the contract is 30 months.

Besides, it received an order worth SAR 153 million (₹339 crore) for manufacturing and supply of steel pipes to Saudi Arabian Oil Co. (Aramco). The duration of this contract is 8 months and the financial impact of this will be reflected in quarters 1 and 2 in FY25.

EPIC secured another order worth SAR 170 million (₹377 crore) from Aramco for double jointing and coating of steel pipes. The timeline for the completion of the contract is 20 months. The financial impact of the above contract will be reflected in the first quarter of FY25 till the second quarter of FY26.

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