Welspun Corp to export line pipes worth ₹611 crore from India to Latin America

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Welspun Corp on Wednesday, April 24, said it has received a letter of award in India to supply LSAW pipes, coating and bends in Latin America.

The contract is worth ₹611 crore and it will be executed in the 2024-25 fiscal year, the company said in a stock exchange filing.

The company added that the letter of award will be followed up with a notice to proceed/purchase the order by around the second week of May.

Earlier this week, the company said it had received orders worth ₹872 crore in the last one month to supply multiple-line pipes, both in India and the United States.

The execution of these orders too is scheduled for FY25. The company’s stock exchange filing noted it secured the multiple-line pipe orders worth ₹872 crore since the last disclosures made on March 22. Of these, one order involves supplying coated LSAW pipes and bends for a crucial oil transportation project in the Middle East, specifically for extreme sour service application, the company said.

Last month, Welspun Corp received line pipe orders, both in India and the US, cumulatively valued at ₹2,039 crore.

On another note, last month, the company told CNBC-TV18 that it was focusing on ramping up Sintex, which it acquired in March 2023, targeting multi-fold growth for the plastic water tank manufacturer over the next 4-5 years.

Chief Financial Officer Percy Birdy said Welspun is well on track to even exceed its financial year 2024 guidance of around ₹15,000 crore in revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of ₹1,500 crore.

Welspun Corp, which manufactures steel pipes, tubes and bars, was intending to expand its product offerings to include plastic pipes, leveraging the Sintex brand and distribution network.

Welspun Corp shares ended 1.56% higher at ₹559 apiece on Tuesday, April 23. The stock has gained 155.08% in the past year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow