Welspun Corp reports strong PAT, stock surges 7 per cent

Welspun Corp Ltd. reported its results for the quarter ended March 31, 2017 today.

The company's total sales for Q4FY17 came in at Rs 2032.9 crore, which represents a 70.43 per cent sequential increase and 5.29 per cent YoY increase. During the quarter, the company’s pipe production stood at 303 KMT.

Its operating profit (EBIT) for the quarter amounted to Rs 111.72 crore and its EBIT margin stood at 5.5 per cent.

The company reported PAT of Rs 68.59 crore, which represents a sequential QoQ decline of 625.59 per cent and a YoY increase of 425.19 per cent.

During FY2016-17, company registered 18.5 per cent YoY decline in revenue to Rs 5899 crore and substantial fall of 94.4 per cent in net profit to reach Rs 10.1 crore.

The company expects expansion of National Gas Grid in India, large number of water projects across India, heavy oil development, deep sea development across the international market to drive demand for FY18.

Further, the company expects good traction in international market, especially North America by H2FY18.

Post declaring quarterly results, the company’s stock surged 12 per cent to touch the day's high of Rs 91.3. 

The Board of Directors of the company has declared a dividend of Rs 0.50 on equity share of Rs 5 (FV) each.