Welspun disappoints: net loss at 9.39 cr

Pipes manufacturer Welspun Corp., has posted disappointing results in Q1FY17. In Q1FY17, company has posted a net loss of Rs 9.39 crores. In the same period last year, the company had reported net profit of Rs 16.39 crores. On the other hand, net income from operation stands at Rs 1556.36 crores, down by 20 per cent as compared to Q1FY16.

During the quarter, the company brought down its net debt to Rs 915.5 crore from Rs 1,357.8 crore, while gross debt also decreased to Rs 2,366.3 crore from Rs 2,644 crore. On July 21, company had informed the bourses that it has entered into a definitive agreement with an American midstream major to supply over 274 kilometres or 1.84 lakh tonnes of heavy wall, large diametre, 18-metre length, longitudinal saw line-pipe for a prestigious gas project in the Americas.

The turmoil in the energy sector has taken a toll on the profitability of the company, but looking at the latest order won, order book of the company has crossed 9.58 lakh tonnes worth Rs 5,500 crore.

The shares of the company on July 28 closed at Rs 89.85. The pre-open indicative of the scrip is down by 2.06 per cent, largely due to devastating results the company posted in Q1FY17. On July 28,the shares have opened at Rs 88 and are currently down by 1.85 per cent. Shares' 52-week High/Low stands at Rs 153.60/69.30.

Welspun Corp Ltd., the flagship company of Welspun Group is engaged in the business of manufacture of large diametre line pipe. The company’s segments include infrastructure, oil and gas and energy business and development.