Welspun Corp (WCL), the flagship company of the Welspun Group, today reported 14.71 percent decline in consolidated profit after tax (PAT) at Rs 43.65 crore for the April-June quarter of this financial year.
The company's PAT stood at Rs 51.18 crore in the corresponding quarter of 2017-18, the company said in a BSE filing.
Total income from operation for the quarter under review grew by 24 percent at Rs 2,085.51 crore from Rs 1,681.77 crore in the same period in the last financial year mainly on account of higher volumes.
"Our order book continues to remain at record levels, providing us strong visibility. We expect this order book to translate into higher capacity utilisation in the coming quarters. WCL stands to benefit from its local presence in key markets, given the increasing emphasis of governments on local sourcing. We expect good order inflows to continue this year, especially from the Americas, on account of strong demand and high energy prices," Welspun Group chairman BK Goenka said.
Current pipe order book stands at 1,602K MTs (Rs 11,100 crore), which is more than double the figure of 700K MTs at the first quarter of the previous financial year.
The company further said, it is setting up a spiral plant in Madhya Pradesh of around 175 KMT per annum to align capacities closer to the market.
Demand from the oil and gas segment in MENA is expected to become more relevant in the second half of FY19 and the domestic market is also gaining pace across segments, it said.
Goenka said, "demand outlook for our plate and coil mills division remains promising, while profitability concerns are being addressed."
The company's stock on the BSE ended up 2.32 percent at Rs 110.20 apiece, against a 0.61 percent rise in the benchmark.
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